Country Garden Drops PwC as Auditor Amid Financial Struggles: A Blow to PwC After Losing Over 50 Clients This Year

Country Garden, a Chinese developer, has dismissed PwC from its role as auditor. This marks yet another blow for the company, which has seen over 50 clients sever ties with it this year.

In a recent submission to the Hong Kong stock exchange on Thursday, Country Garden suggested that PwC should contemplate stepping down from their role as an auditor. This recommendation was due to PwC's inability to release its financial reports in a timely manner. PwC has accepted this suggestion and their resignation will come into effect on Tuesday.

Foshan-based Country Garden has engaged Zhonghui Anda CPA, located in Hong Kong, as its new auditor, a change that takes effect from Thursday. Zhonghui Anda will serve as the auditor until the property developer's subsequent annual general meeting is held.

PwC, in its letter of resignation, indicated that it is awaiting Country Garden's provision of a definitive consolidation range and the previous year's consolidated financial reports. Additionally, they mentioned the requirement of accompanying work papers, supporting documents, and a cash flow projection to evaluate the company's liquidity status, among other factors.

Country Garden's financial difficulties have intensified, as reflected in the sharp 57 per cent drop in contracted sales from the same period last year, standing at 3.43 billion yuan (US$483.8 million) in August. This follows a significant 72 per cent decrease in July.