Ta Yang Group (01991.HK) announced the suggestion for dismissal of the auditor KPMG and received the resignation letter from Crowe Horwath (HK) CPA Limited on Monday (17th).

In the resignation letter, Crowe Horwath (HK) CPA Limited pointed out that the company failed to explain and provide sufficient audit evidence to support the appropriate accounting treatment of recognizing revenue of the new acquisition for digital marketing business as the principal instead of the agent in accordance with HKFRS 15 "Revenue from Contracts with Customers", which would result in material misstatement of the revenue presented as a significant item in the company's comprehensive income statement. In addition, the professional fees for the audit group's comprehensive financial statements as of the end of last December have not yet been settled.

The company has contacted the replacement auditor to consider accepting the appointment as the auditor to conduct the auditing work of the company's comprehensive financial statements for the 2023 fiscal year. According to the audit plan submitted by the replacement auditor, the company is expected to publish the annual performance by the end of August this year or earlier.

The stock has been suspended from trading since April 2 and will continue to be suspended while waiting for the announcement of last year's performance.