HONG KONG, Sept. 21, 2016 /PRNewswire/ -- SGOCO Group, Ltd.
(Nasdaq: SGOC) ("SGOCO" or the "Company"), a company focused on
product design, distribution and brand development in the Chinese
display and computer product market as well as energy saving
products and services, today announced the appointment of DCAW
(CPA) Limited ("DCAW") as the Company's independent registered
public accounting firm to perform independent audit services for
the year ended December 31, 2016.
On September 19, 2016, SGOCO
Group, Ltd. (the "Company") was advised that the Company's
independent registered public accounting firm, Crowe Horwath (HK) CPA Limited("CHHK"), will no
longer provide audit and assurances services to public companies
subject to the statutes and regulations of the United States effective as of October 1, 2016. Accordingly, the Company, with
the approval of its audit committee and board of directors,
terminated the services of CHHK effective September 19, 2016, and retained the services of
DCAW as its new independent registered public accounting firm,
effective September 19, 2016.
The director formerly responsible for the Company's account at
CHHK will join the Company's new audit firm, DCAW, and will be the
director responsible for the Company's account at the new
firm.
CHHK's reports on the financial statements of the Company for
the fiscal years ended December 31,
2014 and 2015 did not contain an adverse opinion or
disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope or accounting principles, except that its
report for the fiscal year ended December
31, 2015 contained an emphasis of matter paragraph regarding
the Company's ability to continue as a going concern. During the
Company's fiscal years ended December 31,
2014 and 2015 and through September
19, 2016, there were no disagreements between the Company
and CHHK on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure
which disagreements, if not resolved to CHHK's satisfaction, would
have caused CHHK to make reference to the subject matter of the
disagreements in their reports on the Company's consolidated
financial statements for such periods. Furthermore, no reportable
events as that term is defined in Item 16F(a)(1)(v) of Form 20-F,
occurred within the periods covered by CHHK's reports on the
Company's consolidated financial statements, or subsequently up to
the date of CHHK's dismissal.
The Company has provided CHHK with a copy of the foregoing
disclosures and has requested that CHHK review such disclosures and
provide a letter addressed to the Securities and Exchange
Commission ("SEC") as specified by Item 16F(a)(3) of Form 20-F.
Attached as Exhibit 99.1 is a copy of CHHK's letter addressed to
the SEC relating to the statements made by the Company in this
Report on Form 6-K.
During the Company's two most recent fiscal years ended
December 31, 2014 and 2015 and
through September 19, 2016, neither
the Company nor anyone on its behalf has consulted DCAW regarding
either (i) the application of accounting principles to a specified
transaction, either completed or proposed, or on the type of audit
opinion that might be rendered on the consolidated financial
statements of the Company, and neither a written report nor oral
advice was provided to the Company that DCAW concluded was an
important factor considered by the Company in reaching a decision
as to any accounting, auditing or financial reporting issue; or
(ii) any matter that was either the subject of a disagreement or a
reportable event as described above.
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is focused on product design, brand
development and distribution in the Chinese display and computer
product market as well as energy saving products and services.
SGOCO sells its products and services in the Chinese market and
abroad. For more information about SGOCO, please visit our investor
relations website:
http://www.sgocogroup.com
For investor and media inquiries, please contact:
SGOCO Group, Ltd.
Tony
Zhong
Vice President of Finance
Tel: +852 3610 7777
Email: ir@sgoco.com
Safe Harbor and Informational Statement
This announcement contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical fact, including, without
limitation, those with respect to the objectives, plans and
strategies of the Company set forth herein and those preceded by or
that include the words "believe," "expect," "anticipate," "future,"
"will," "intend," "plan," "estimate" or similar expressions, are
"forward-looking statements". Forward-looking statements in this
release include, without limitation, the effectiveness of the
Company's multiple-brand, multiple channel strategy and the
transitioning of its product development and sales focus and to a
"light-asset" model, Although the Company's management believes
that such forward-looking statements are reasonable, it cannot
guarantee that such expectations are, or will be, correct. These
forward looking statements involve a number of risks and
uncertainties, which could cause the Company's future results to
differ materially from those anticipated. These forward-looking
statements can change as a result of many possible events or
factors not all of which are known to the Company, which may
include, without limitation, our ability to have effective internal
control over financial reporting; our success in designing and
distributing products under brands licensed from others; management
of sales trend and client mix; possibility of securing loans and
other financing without efficient fixed assets as collaterals;
changes in government policy in China; China's overall economic conditions and local
market economic conditions; our ability to expand through strategic
acquisitions and establishment of new locations; compliance with
government regulations; legislation or regulatory environments;
geopolitical events, and other events and/or risks outlined in
SGOCO's filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F and other filings. All
information provided in this press release and in the attachments
is as of the date of the issuance, and SGOCO does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
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SOURCE SGOCO Group, Ltd.