Yunji Inc. (“Yunji” or the “Company”) (NASDAQ: YJ), a leading membership-based social e-commerce platform, today provides an update on its status under the Holding Foreign Companies Accountable Act (the “HFCAA”).
The Company has been provisionally identified by the United States Securities and Exchange Commission (the “SEC”) under the HFCAA as a Commission-Identified Issuer on May 4, 2022. The Company understands such identification may result from its filing of the annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on April 26, 2022.
Yunji understands the SEC made such identification pursuant to the HFCAA and its implementation rules issued thereunder, and this indicates that the SEC determines that the Company used a registered public accounting firm whose working paper cannot be inspected or investigated completely by the Public Company Accounting Oversight Board of the United States (the “PCAOB”) to issue the audit opinion for its financial statements for the fiscal year ended December 31, 2021.
In accordance with the HFCAA, a company will be delisted from a U.S. stock exchange only if the company has been identified by the SEC for three consecutive years due to PCAOB’s inability to inspect auditor’s working paper.
Yunji has been actively exploring possible solutions. Yunji will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on Nasdaq to the extent it can.
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