JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), a leading global solar power product manufacturer, today announced that, based on discussions with both PricewaterhouseCoopers Zhong Tian CPAs Limited ("PwC") and Ernst & Young Hua Ming LLP ("EY"), the Company has decided to reappoint PwC to conduct the audit for the fiscal year ended December 31, 2012, and, at the same time, has requested EY to resign as the Company's auditor. EY has agreed to the Company's request and has resigned on February 1, 2013. Pursuant to JinkoSolar's articles of association, the decision to change auditors was unanimously approved by the directors of the Company, including all members of the Company's Audit Committee, on February 1, 2013.
On April 29, 2012, the Company dismissed PwC as its independent registered public accounting firm. On May 30, 2012, the Company engaged EY as its auditors to conduct the audit for the fiscal year ended December 31, 2012. During EY's term of engagement from May 30, 2012 to February 1, 2013, EY did not issue any report on the Company's consolidated financial statements. The Company and EY did not have any disagreements on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of EY, would have caused EY to make reference to the subject matter of the disagreements in connection with its report.
Upon its resignation, EY advised the Company of a matter that it believed constituted a reportable event, as defined in Item 16F of Form 20-F. In July 2012, the Company received a subpoena captioned "In the Matter of Riemann Investment Holdings Ltd." from the Division of Enforcement (the "Division") of the U.S. Securities and Exchange Commission (the "SEC") requesting documents from the Company as part of an investigation conducted by the Division. The cover letter that the SEC sent JinkoSolar with the subpoena states that "[t]he investigation and subpoena do not mean that we have concluded that you or anyone else has broken the law. Also, the investigation does not mean that we have a negative opinion of any person, entity or security." In response to the subpoena, the Company produced documents to the Division in December 2012. The Company authorized EY to respond fully to the inquiries of PwC relating to the reportable event described above. As of the date of EY's resignation, the Division had not completed its investigation.
JinkoSolar never had any business relationship with Riemann Investment Holdings Ltd., which is believed to have had, at some point in time, a business relationship with an outside investor of JinkoSolar.
PwC was the Company's auditor from the Company's inception through April 29, 2012. PwC performed audit work and issued audit reports on the Company's consolidated financial statements for the years ended December 31, 2010 and 2011.