CNFinance Announces Change of Auditor

Rhea-AI Summary

CNFinance (NYSE: CNF) appointed Guangdong Prouden CPAs GP as its independent registered public accounting firm, effective November 13, 2026.

The audit committee approved Prouden's appointment for the financial year ending December 31, 2026, after HTL International declined to stand for re-election. The change did not result from disagreements over accounting, financial disclosures or audit procedures. HTL's reports for 2024 and 2025 contained no adverse opinion, disclaimer or qualification concerning uncertainty, audit scope or accounting principles. No disagreements or reportable events occurred during those years or through November 13, 2026. CNFinance is working with both firms on the transition.

Key Figures

Auditor change effective date: November 13, 2026

Auditor change effective date

November 13, 2026

Change of auditor

Key Terms

adverse opinion, disclaimer of opinion, reportable events, form 20-f

4 terms

adverse opinion financial

"did not contain an adverse opinion"

An adverse opinion is an auditor’s formal conclusion that a company’s financial statements contain serious errors or omissions and therefore cannot be relied upon as a true picture of the business. For investors it’s a major red flag—like a mechanic saying a car is unsafe—because it signals heightened risk of fraud, restatements, regulatory trouble or loss of access to capital, any of which can sharply affect share value.

disclaimer of opinion financial

"or a disclaimer of opinion"

A disclaimer of opinion is a formal statement from an independent auditor saying they cannot give an opinion on a company’s financial statements because they lacked the information or access needed to check the numbers. For investors it is a red flag—like a mechanic who couldn’t inspect an engine and won’t say if the car is safe—because it means the accounts can’t be relied on with confidence and invites extra caution and further investigation.

reportable events regulatory

"there have been no "reportable events""

Reportable events are significant incidents or changes a company is legally required to disclose to regulators and the public, such as major safety problems, legal actions, financial irregularities, or management changes. They matter to investors because these events can alter a company’s risk profile or future performance, much like a dashboard warning light signals a problem that could affect a car’s safety or reliability. Timely disclosure helps investors make informed decisions and maintain market fairness.

form 20-f regulatory

"as the term is described in Item 16F(a)(1)(v) of Form 20-F"

Form 20-F is the standardized annual disclosure that non-U.S. companies must file with the U.S. securities regulator when their shares are traded in the U.S.; it contains audited financial statements, a plain-language description of the business, management discussion, governance details and key risk factors. It matters to investors because it provides a consistent, comparable company “report card” and rulebook, helping buyers assess financial health, governance and risks before investing.

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GUANGZHOU, China, Nov. 13, 2026 /PRNewswire/ -- CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company"), a leading home equity loan service provider in China, today announced the change of auditor, effective November 13, 2026. HTL International, LLC ("HTL") has served as the Company's independent registered public accounting firm since December 2024. HTL declined to stand for re-election to serve as the independent registered public accounting firm for the audits of the Company's financial statements for the financial year ending December 31, 2026. The decision was not a result of any disagreement between the Company and HTL on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. The audit committee of the Company's Board of Directors has approved the change of auditor and appointed Guangdong Prouden CPAs GP ("Prouden") as the Company's independent registered public accounting firm for the fiscal year ended December 31, 2026.

The appointment of Prouden was made after a careful and thorough evaluation process and has been approved by the audit committee of the Company's board of directors.

Prouden succeeds HTL, the Company's previous independent registered public accounting firm. The reports of HTL on the Company's consolidated financial statements for each of the fiscal years ended December 31, 2024 and 2025 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle.

During each of the fiscal years ended December 31, 2024 and 2025 and the subsequent period through November 13, 2026, there have been no disagreements between the Company and HTL 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 HTL, would have caused HTL to make reference to the subject matter of the disagreements in its report on the consolidated financial statements, and there have been no "reportable events" as the term is described in Item 16F(a)(1)(v) of Form 20-F.

The Company is working closely with HTL and Prouden to ensure a seamless transition.

The audit committee would like to express its sincere gratitude to HTL for its quality of services rendered to the Company over the past years.

About CNFinance Holdings Limited

CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in China. CNFinance, through its operating subsidiaries in China, conducts business by connecting demands and supplies through collaborating with sales partners and trust companies under the trust lending model, and sales partners, local channel partners and commercial banks under the commercial bank partnership model. Sales partners and local channel partners are responsible for recommending micro- and small-enterprise ("MSE") owners with financing needs to the Company and the Company introduces eligible borrowers to licensed financial institutions with sufficient funding sources including trust companies and commercial banks who will then conduct their own risk assessments and make credit decisions. The Company's primary target borrower segment is MSE owners who own real properties in Tier 1 and Tier 2 cities and other major cities in China. The Company's risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management procedures.

For more information, please contact:

CNFinance
E-mail: ir@cashchina.cn  

View original content:https://www.prnewswire.com/news-releases/cnfinance-announces-change-of-auditor-302938761.html

SOURCE CNFinance Holdings Limited

FAQ

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Who is CNFinance's new auditor and when does the change take effect?

Guangdong Prouden CPAs GP replaces HTL International as CNFinance's independent registered public accounting firm, effective November 13, 2026. The audit committee approved the appointment for the financial year ending December 31, 2026.