Although China’s accounting system has basically been aligned with international standards, there are still many differences compared to the systems familiar to overseas investors. In fact, many overseas investors request that we recompile our financial statements according to foreign systems so they can evaluate the financial and operational conditions of the financing company using the standards they are familiar with. Moreover, in most cases, relevant parties will require a reputable accounting firm to assist the company in preparing relevant financial statements and auditing them. This is done to leverage their experience and professional knowledge of overseas accounting systems, thereby enhancing investors' confidence in the financial statements.
When a company is preparing for external financing, its financial...