20220330-招银国际-Chinese_properties__Another_stock-take_on_accounting_issues_4页_492kb

报告摘要

CMBI Credit Commentary Summary

Core Content

This document provides an update on accounting issues affecting Chinese property developers, particularly focusing on the delays in the publication of audited financial year 2021 (FY21) results and the potential impact on stock trading.

Main Developers and Accounting Issues

The following developers have announced accounting issues related to the publication of their FY21 results:

Date	Developer	Accounting Issues	Original Auditor
26 Jan'22	Aoyuan	Replaced Deloitte with Shinewing; possible delay in publication; shares trading suspension	Deloitte
27 Jan'22	Hopson	Replaced PwC with E&Y; audited FY21 results expected on 31 Mar'22	PwC
25 Feb'22	Yuzhou	Replaced E&Y with UniTax; board meeting on FY21 results on 31 Mar'22	E&Y
18 Mar'22	Sinic	Delay in publication of audited FY21 results; trading halt since 20 Sep'21	E&Y
21 Mar'22	Evergrande	Delay in publication of audited FY21 results; shares trading suspension related to account irregularities	PwC
21 Mar'22	Ronshine	Replaced PwC with Elite Partners; delay in publication of audited FY21 results; unaudited results on 31 Mar'22	PwC
21 Mar'22	Shimao	Delay in publication of audited FY21 results to 30 Apr'22; unaudited results on 31 Mar'22; profit warning issued	PwC
21 Mar'22	Sunac	Delay in publication of audited FY21 results; unaudited results on 31 Mar'22; shares trading suspension	PwC
21 Mar'22	Shinsun	Delay in publication of audited FY21 results; unaudited results on 30 Mar'22	E&Y
22 Mar'22	Kaisa	Delay in publication of audited FY21 results; lengthy share trading suspension expected	Grant Thornton
22 Mar'22	JY Grandmark	Delay in publication of audited FY21 results; unaudited results on 31 Mar'22	PwC
24 Mar'22	Powerlong	Replaced PwC with Elite Partners; delay in publication of audited FY21 results to 15 May'22; unaudited results on 29 Mar'22	PwC
24 Mar'22	Mingfa	Delay in publication of audited FY21 results; unaudited results on 31 Mar'22	BDO
24 Mar'22	Greenland HK	Delay in publication of audited FY21 results; unaudited results on 29 Mar'22	Deloitte
24 Mar'22	Sansheng	Delay in publication of audited FY21 results; unaudited results on 31 Mar'22	KPMG
25 Mar'22	GZRF	Delay in publication of audited FY21 results to 30 Apr'22; unaudited results on 31 Mar'22	PwC
29 Mar'22	Agile	Delay in publication of audited FY21 results to 15 May'22; unaudited results on 31 Mar'22	PwC
29 Mar'22	Dexin	Delay in publication of audited FY21 results; unaudited results on 30 Mar'22	PwC
29 Mar'22	Logan	Delay in publication of audited FY21 results to 30 Apr'22; unaudited results on 31 Mar'22	E&Y
29 Mar'22	Fantasia	Delay in publication of audited FY21 results; unaudited results not published; shares trading suspension	Deloitte

Key Information and Trends

Audit Delays: Multiple developers have delayed the publication of their audited FY21 results, with some expected to release unaudited results by the end of March 2022.
Auditor Changes: Some developers have changed their auditors, such as Aoyuan (replaced Deloitte with Shinewing), Hopson (replaced PwC with E&Y), Yuzhou (replaced E&Y with UniTax), and Ronshine (replaced PwC with Elite Partners).
Trading Suspension: Developers like Fantasia and Sinic have faced or are expected to face trading suspensions due to accounting irregularities and delays.
PwC Involvement: 10 of the 20 developers mentioned were originally audited by PwC, indicating a broader scrutiny of the firm's audits.
Regulatory Scrutiny: The audit process for Chinese property developers is under increased regulatory review, as highlighted by the Financial Reporting Council of Hong Kong's investigation into Evergrande's accounts by PwC.

Conclusion

The document underscores the ongoing challenges and regulatory pressures faced by Chinese property developers in terms of financial reporting and auditing. These issues have led to delays in the publication of audited results and, in some cases, trading suspensions. The involvement of major auditors like PwC and the potential for changes in auditors suggest a lack of confidence in the financial transparency of these companies. Investors are advised to exercise caution and seek independent financial advice due to the uncertainty and risks associated with these developments.

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