Chijet Motor Terminates Auditor UHY LLP Amid Going Concern Doubts

TL;DR

**Chijet Motor just fired its auditor UHY, who previously warned about the company's ability to stay in business.**

AI Summary

Chijet Motor Company, Inc. (CMJI) terminated UHY LLP as its independent auditor on December 29, 2023. While UHY's past reports for fiscal years 2021 and 2022 didn't have adverse opinions, they did raise "substantial doubt" about CMJI's ability to continue as a going concern. This matters to investors because a change in auditors, especially one following a going concern warning, can signal underlying financial instability or a potential lack of confidence from the previous auditor, even if no disagreements were reported.

Why It Matters

This auditor change, particularly after UHY flagged 'substantial doubt' about Chijet's ability to continue as a going concern, could signal increased financial risk or a potential struggle for the company to maintain operations.

Risk Assessment

Risk Level: medium — The termination of an auditor, especially one that previously expressed 'substantial doubt' about the company's going concern, introduces uncertainty about the company's financial health and future reporting.

Analyst Insight

Investors should closely monitor Chijet Motor Company, Inc. for the announcement of a new auditor and scrutinize their subsequent financial reports for any further 'going concern' warnings or changes in financial health indicators.

Key Players & Entities

• Chijet Motor Company, Inc. (company) — the registrant terminating its auditor
• UHY LLP (company) — the independent registered public accounting firm that was terminated
• December 29, 2023 (date) — the date the Audit Committee approved the termination of UHY LLP
• December 31, 2022 (date) — end of fiscal year for which UHY LLP issued a report
• December 31, 2021 (date) — end of fiscal year for which UHY LLP issued a report

Forward-Looking Statements

• Chijet Motor Company, Inc. will announce a new independent registered public accounting firm. (Chijet Motor Company, Inc.) — high confidence, target: Q1 2024
• The new auditor's report may also include a going concern warning, given the previous auditor's findings. (Chijet Motor Company, Inc.) — medium confidence, target: Next Annual Report

FAQ

Filing Documents

• form6-k.htm (6-K) — 20KB
• ex99-1.htm (EX-99.1) — 1KB
• ex99-1_001.jpg (GRAPHIC) — 165KB
• 0001493152-24-001094.txt ( ) — 249KB

From the Filing

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of December 2023 Commission File Number: 001-41712 Chijet Motor Company, Inc. (Registrant’s Name) No. 8, Beijing South Road Economic & Technological Development Zone Yantai, Shandong, CN-37 264006 People’s Republic of China (Address of Principal Executive Offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): On December 29, 2023, the Audit Committee of the Board of Directors of Chijet Motor Company, Inc. (the “Company”) approved the termination of UHY LLP (“UHY”) as the Company’s independent registered public accounting firm. UHY’s reports on the Company’s financial statements for the fiscal years ended December 31, 2022 and 2021 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, except that UHY’s report for the fiscal years ended December 31, 2022 and 2021 included a paragraph indicating there was substantial doubt about the Company’s ability to continue as a going concern. Furthermore, during the Company’s two most recent fiscal years and in the subsequent interim period through December 29, 2023, there have been no disagreements with UHY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to UHY’s satisfaction, would have caused UHY to make reference to the subject matter of the disagreement in connection with its reports on the Company’s financial statements for such periods. For the fiscal years ended December 31, 2022 and 2021 and in the subsequent interim period through December 29, 2023, except for the material weaknesses in internal control over financial reporting reported by management in Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s Form F-4/A filed with the U.S. Securities and Exchange Commission (the “Commission”) on March 24, 2023, there were no other “reportable events” as that term is described in Item 16F (a)(1)(v) of Form 20-F. The Company provided UHY with a copy of the above disclosure and requested that UHY furnish the Company with a letter addressed to the U.S. Securities and Exchange Commission stating whether or not it agrees with the above statement. A copy of UHY’s letter is filed as Exhibit 99.1 to this Form 6-K. EXHIBITS INDEX Exhibit No. Description 99.1 Letter of UHY LLP to the U.S. Securities and Exchange Commission dated January 4, 2024 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Chijet Motor Company, Inc. Date: January 4, 2024 By: /s/ Mu Hongwei Name: Mu Hongwei Title: President and Chief Executive Officer

View Full Filing

View this 6-K filing on SEC EDGAR