Item 4.02. NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A RELATED
AUDIT REPORT OR COMPLETED INTERIM REVIEW.
On March 25, 2022, the Company's management, together with the Audit Committee
of the Board of Directors, made a determination that disclosure should be made
and action should be taken to prevent further reliance on the Company's
previously issued unaudited condensed consolidated financial statements for the
three months ended March 31, 2021, included in its Quarterly Report on Form 10-Q
(the "Form 10-Q") filed with the Securities and Exchange Commission (the "SEC")
on May 17, 2021.
In the Form 10-Q, the Company erroneously recorded the sale of one unit of real
estate property in Hong Kong.
The results of the restatement will be as follows on the Form 10-Q:
The Company has restated its condensed consolidated financial statements as of
and for the three months ended March 31, 2021, to reverse the transaction of the
sale of real estate property. The cumulative effect of the correction of the
error was to decrease sales revenue of real estate property by $383,445, cost of
real estate property sold by $253,276, interest income by $1,433, prepayments
and other current assets by $49,704, other non-current assets by $276,135 and
noncontrolling interest by $52,641, and to increase real estate held for sale by
$246,087, other comprehensive income by $6,007 and accrued liabilities by
$45,843.
The previously filed unaudited condensed consolidated financial statements in
the Form 10-Q should no longer be relied upon.
The Company, including the Audit Committee of the Board of Directors, has
discussed the foregoing matters with the Company's auditors, JP Centurion &
Partners PLT. The Audit Committee has authorized and directed the officers of
the Company to take the appropriate and necessary actions to restate the Form
10-Q.
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