PwC resigns again as auditor over unrecorded 63 million yuan bank loan from Hongli Medical Management

Rui Finance Wang Min On March 25, Hongli Medical Management (09906.HK) announced that PricewaterhouseCoopers (known as PwC in mainland China) has resigned as the company’s auditor, effective March 24, 2026.

The resignation letter indicates that during PwC’s audit of Hongli Medical Management’s consolidated financial statements for the fiscal year 2025, PwC discovered that a bank loan amounting to 63 million yuan and an equal amount of funds were not recorded in the company’s financial statements at that time.

PwC has reported this matter to the Board Audit Committee and suggested that the Audit Committee establish an independent investigation committee to conduct an independent review of the matter along with independent investigation advisors.

PwC explained that the results of the independent investigation will serve as important evidence for its audit of the fiscal year 2025. As the matter remains unresolved, it may bring significant uncertainty to the audit timeline. Hongli Medical Management has ceased to provide the information and documents requested by PwC for the audit of the fiscal year 2025 and, based on the board resolution dated March 24, 2026, has suggested PwC resign as the company’s auditor.

PwC stated that as of the resignation letter date, it has not been able to obtain all the information and documents necessary to continue the audit of the fiscal year 2025, including executing necessary audit procedures regarding the matter. The communication and the board’s decision clearly indicate that it will be unable to obtain the information needed to fulfill its responsibilities for the audit of the fiscal year 2025. After careful consideration, in light of the circumstances described in the resignation letter, PwC has agreed to resign as the company’s auditor, effective March 24, 2026.

Following the recommendation of the Audit Committee, Guowei CPA Limited has been appointed as the new auditor for Hongli Medical Management, effective March 24, 2026, to fill the temporary vacancy left by PwC’s resignation and will serve until the conclusion of the company’s next annual general meeting.

It is noteworthy that on March 16, Yingtong Holdings announced the replacement of its auditor.

The announcement stated that, given PwC’s inability to assess the nature, timing, and scope of any additional audit procedures required for the following matters, as well as its inability to establish a precise timeline for the completion of these additional procedures, and the company’s inability to accept the additional audit fees that would arise as a result, PwC resigned as auditor at the board’s request, effective March 16, 2026.

According to PwC’s resignation letter dated March 16, 2026, the company completed its initial public offering (IPO) on June 26, 2025, and its shares were listed on the Stock Exchange. Shortly after the IPO, the company entered into several agreements with three service providers for multi-year public relations services, data analysis and consulting services, and social media promotion services, and has made advance payments of 70 million HKD.

PwC has requested the company’s management to provide explanations, information, and documents regarding these matters. As of the resignation letter date, PwC has not received the detailed scope of the investigation it requested regarding these matters, nor has it received the explanations, documents, or information it required.

Related companies: Hongli Medical Management hk09906, PricewaterhouseCoopers