SHINECO, INC. (NASDAQ:TYHT) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01 Changes in Registrant’s Certifying Accountant
On January 15, 2019, Shineco Inc. (the “Company”) decided to change its independent registered public accounting firm for the annual report of the fiscal year ending June 30, 2019 and the remainder of the fiscal year ending June 30, 2019. On January 15, 2019, the Board of Directors of the Company (the “Board”) approved the appointment of Centurion ZD CPA Ltd. (“Centurion”) as the Company’s independent registered public accounting firm for the Company’s fiscal year ending June 30, 2019 and the dismissal of Wei, Wei & Co., LLP (“Wei Wei”) from that role, each effective as of January 15, 2019.
(a) Dismissal of independent registered public accounting firm
Wei Wei’s audit reports on the Company’s consolidated financial statements as of and for the fiscal years ended June 30, 2018 and 2017, did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.
During the fiscal years ended June 30, 2018 and 2017, and the subsequent interim period through January 22, 2019, there were (i) no “disagreements” (as that term is described in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between the Company and Wei Wei on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to WeiWei’s satisfaction, would have caused Wei Wei to make reference thereto in their reports, and (ii) no “reportable events” (as that term is described in Item 304(a)(1)(v) of Regulation S-K) except that Wei Wei advised the Company of material weaknesses related to ineffective disclosure controls and procedures as the Company does not have a Chief Financial Officer that is familiar with the accounting and reporting requirements of a U.S. publicly-listed company, and it did not have U.S. GAAP full-time qualified personnel in the accounting department to monitor the recording of the daily transactions and the lack of segregation of duties for accounting personnel who prepared and reviewed the journal entries during the fiscal years ended June 30, 2018 and 2017.
The Company provided Wei Wei with a copy of the disclosures made within this Current Report on Form 8-K and requested that WeiWei furnish a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with such disclosures. A copy of Wei Wei’s letter dated January 22, 2019 is filed as Exhibit 16.1 hereto.
(b) Appointment of new independent registered public accounting firm
During the fiscal year ended June 30, 2018, and the subsequent interim period through January 15, 2019, neither the Company nor anyone on its behalf consulted with Centurion regarding (i) the application of accounting principles to a specified transaction, (ii) the type of audit opinion that might be rendered on the Company’s financial statements by Centurion, in either case where written or oral advice provided by Centurion would be an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issues or (iii) any other matter that was the subject of a disagreement between us and our former auditor, Wei Wei or was a reportable event (as described in Items 304(a)(1)(iv) or Item 304(a)(1)(v) of Regulation S-K, respectively).
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
SHINECO, INC. Exhibit
EX-16.1 2 f8k011519ex16-1_shineco.htm LETTER FROM WEI,…
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About SHINECO, INC. (NASDAQ:TYHT)
Shineco, Inc. is a holding company. The Company provides health and well-being focused plant-based products by using its subsidiaries’ and variable interest entities’ vertically- and horizontally-integrated production, distribution and sales channels. The Company operates through three segments: developing, manufacturing and distributing of specialized fabrics, textile products and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, known as Bluish Dogbane (Luobuma); planting, processing and distributing of traditional Chinese medicinal herbal products, as well as other pharmaceutical products (Herbal products), and planting, processing and distributing of green and organic agricultural produce, as well as growing and cultivating of Chinese Yew trees (Agricultural products). It utilizes engineering technologies and biotechnologies to produce, among other products, Chinese herbal medicines, organic agricultural produce and specialized textiles.