Business Context and Reporting Period
Company: Addentax Group Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: September 30, 2020
Reporting Period: The filing reports on events occurring on September 27 and September 28, 2020, regarding a change in the company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data. There are no reported figures for revenue, profit, cash flow, margins, debt, or liquidity in this document.
Material Changes
The primary material change disclosed is the replacement of the company's independent auditor:
- Outgoing Auditor: Pan-China Singapore PAC ("Pan-China") was released effective September 28, 2020. Pan-China had served as the independent accountant since December 6, 2017, covering fiscal years ended March 31, 2018, 2019, and 2020.
- Reason for Change: The filing states the Board of Directors resolved to release Pan-China but does not specify a reason for the departure.
- Disagreements: The company reports no disagreements with Pan-China regarding accounting principles, financial statement disclosures, or auditing scope during their engagement.
- Incoming Auditor: B F Borgers CPA PC ("Borgers") was engaged as the new independent registered public accounting firm, effective September 28, 2020.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms that no reportable events (such as disagreements or adverse opinions) occurred during Pan-China's tenure. The company also confirms it has not consulted with the new auditor, Borgers, regarding accounting principles or audit opinions prior to their engagement.
Risks and Contingencies: No specific financial risks or contingencies are detailed in this report. The filing notes that the company is an "emerging growth company."
Investor Verification Checklist
- Verify the letter from Pan-China Singapore PAC (Exhibit 16.1) to confirm their perspective on the departure.
- Review the company's most recent 10-K or 10-Q filings to assess the financial health of the company, as this 8-K contains no financial data.
- Monitor future filings to ensure the new auditor, B F Borgers CPA PC, issues an unqualified opinion on the company's financial statements.
- Confirm the status of the company's operations in Shenzhen, China, given the principal executive office location.