Business Context and Reporting Period
This Form 6-K filing by X Financial, a foreign private issuer, covers the month of February 2020. The registrant is headquartered in Shenzhen, the People's Republic of China, and files annual reports under Form 20-F.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the appointment of an independent auditor.
Material Changes
The primary material event disclosed is the change of the Company's independent registered public accounting firm:
- New Auditor: KPMG Huazhen LLP ("KPMG") was engaged effective February 7, 2020.
- Former Auditor: Deloitte Touche Tohmatsu Certified Public Accountants LLP ("Deloitte") was replaced after serving since 2017.
- Approval: The change was approved by the Audit Committee of the Board of Directors.
- Scope: KPMG is engaged to audit the consolidated financial statements for the year ended December 31, 2019.
Management Commentary and Risks
Management confirmed that during the two most recent fiscal years and the interim period prior to February 7, 2020, there were no consultations with KPMG regarding accounting principles or audit opinions that influenced company decisions. Furthermore, there were no disagreements with Deloitte regarding accounting principles, financial statement disclosures, or auditing scope during their tenure. Deloitte's previous reports contained no adverse opinions, disclaimers, or qualifications.
Investor Verification Checklist
- Verify the effective date of the auditor transition (February 7, 2020).
- Confirm the absence of disagreements with the former auditor, Deloitte, as stated in the filing.
- Review the upcoming 2019 annual audit report prepared by KPMG for any new findings.
- Note that no financial performance data is included in this specific filing.