Share’s code： 000550 Share’s Name ： Jiangling Motors No.: 2024-039
200550 Jiangling B
JianglingMotorsCorporation,Ltd.
Public Announcement on ProposedChangeofCPA Firm
Jiangling Motors Corporation, Ltd. and its Board members undertake that the
information disclosed herein is truthful, accurate and complete and does not
contain any false statement, misrepresentation or major omission.
Important tip:
1. Name of the CPA firm proposed to appoint: Ernst & Young Hua Ming LLP
(hereinafter referred to as “Ernst & Young Huaming”).
2. Name of the former-appointed CPAfirm: PricewaterhouseCoopers Zhong Tian LLP
(hereinafter referred to as “PwC”).
3. Reasons for the change of CPA firm and dissenting opinion from the former CPA
firm:
In view of the possible impact of the penalties against PwC,recently issued by Ministry
of Finance of the People’s Republic of China, on the work of the Company’s 2024
annual report, and on the principle of prudence, Jiangling Motors Co., Ltd (hereinafter
referred to as “JMC” or the “Company”) proposed dismissal of PwC. After a public
invite bidding process, the Company proposed to appoint Ernst & Young Hua Ming
LLP as the Company's External Auditor and C-SOX Auditor for the years of 2024-
2026. The Company has communicated with the predecessor and successor CPA firms
regarding the proposed change of CPA firm, and all parties have been clearly informed
of this matter and confirmed that they have no objections.
4. The change is in compliance with the Measures for the Administration of Selecting
AccountingFirms forState-Owned Enterprises and ListedCompanies (Caikuai [2023]
No. 4).
I. Basic Information of the CPA Firm proposed to appointe
1. Firm Information
i. Basic Information
Ernst & Young Huaming CPAs (Special General Partnership) established in September
1992, and completed its localization and conversion in August 2012 from a Chinese-
foreign cooperative limited liability firm to a special general partnership firm. Ernst &
Young Huaming is headquartered in Beijing, with its registered office at Room 01-12,
17th Floor, Ernst & Young Building, Oriental Plaza, No. 1 East Chang'an Street,
Dongcheng District, Beijing. It has 245 partners as of the end of 2023, and the chief
partner is Mr. Mao Anning. Ernst & Young Huaming has always focused on talent
development, having nearly 1,800 licensed CPAs by the end of 2023. Among them,
there are more than 1,500 practicing CPAs with experience in securities-related
business services, nearly 500 certified public accountants who have signed audit reports
on securities services engagements.
Ernst & Young Hua Ming's total business revenue in 2023 is RMB 5,955 million, with
income of audit business amounting to RMB 5,585 million and income of securities
business amounting to RMB 2,438 million. In 2023, there were 137 customers who
were A-share listed companies and whose annual reports were audited by Ernst &
Young Hua Ming, with a total fee of RMB 905 million. The major industries of these
listed companies involve manufacturing, finance, wholesale and retail trade, mining,
information transmission, software and information technology services, and leasing
and business services. Within the audited clients, there are 3 listed companies engaged
in the same industry as the Company.
ii. Investor Protection Capability
Ernst & Young Huaming has good investor protection, occupational risk funds and
occupational insurance have been accrued in accordance with relevant laws and
regulations, and the insurance covers the Beijing head office and all branch offices. The
sum of the accumulated compensation limit ofthe accrual of occupational risk fund and
the purchased occupational insurance exceeds RMB 200 million. Ernst & Young
Huaming has not incurred any civil liability in relevant civil litigation for its practice in
the past three years.
iii. Integrity Record
Ernst & Young Huaming and its practitioners have not been subject to any criminal
penalties or disciplinary actions by industry associations and other self-regulatory
organizations for their practice in the past three years. Received one administrative
sanction from the industry authority against two practitioners. Received two warning
letters from the securities regulatory authorities, involving five practitioners, the
aforementioned decision to issue a warning letter is a supervisory and management
measure, not an administrative penalty. Received one self-regulatory measure from the
stock exchange in the form of a written warning issued to two practitioners, which also
did not involve penalties. The foregoing does not affect Ernst & Young Huaming's
ability to continue to undertake or perform securities services and other business.
2. Engagement Information
i. Basic Information
Engagement Partner and Signing CPA: Mr. Qiao Chun, obtaining the
