Business Context and Reporting Period
This Form 6-K filing covers the month of January 2018 for China Internet Nationwide Financial Services Inc. (NASDAQ: CIFS), a Beijing-based financial advisory services company. The registrant provides commercial payment advisory, intermediary bank loan advisory, and international corporate financing advisory to small-to-medium sized enterprises. Note: The request metadata lists "Freight Technologies, Inc.", but the filing content explicitly identifies the registrant as China Internet Nationwide Financial Services Inc.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This document is a press release regarding corporate governance and legal proceedings rather than a financial results report.
Material Changes and Events
- Independent Investigation: The Company's Board of Directors formed a Special Committee to address allegations raised in a report by Muddy Waters LLC dated December 20, 2017.
- Engagement of Advisors: The Special Committee has engaged Shearman & Sterling LLP to conduct an independent investigation. Shearman & Sterling has retained KPMG Advisory (China) Limited to assist in this process.
- Management Response: Chairman of the Special Committee, Mr. Hong Huang, stated the Company will conduct a detailed and thorough investigation and will update investors upon completion.
Guidance, Outlook, and Risks
The filing contains no specific financial guidance or operational outlook. It includes a standard "Forward-Looking Statements" disclaimer, noting that statements involving future expectations are subject to risks and uncertainties that could cause actual results to differ materially. The primary risk highlighted is the ongoing investigation into the Muddy Waters allegations, which represents a material contingency for the Company.
Investor Verification Checklist
- Verify the specific nature and scope of the allegations made by Muddy Waters LLC in their December 20, 2017 report.
- Monitor future filings for the timeline and preliminary findings of the Shearman & Sterling and KPMG investigation.
- Confirm the Company's current stock trading status and any potential delisting risks associated with the investigation.
- Review the Company's most recent audited financial statements (Form 20-F) to assess baseline financial health, as this filing contains no financial data.