Item 4.01 Changes in Registrant's Certifying Accountant.
(a)
Dismissal of
Previous Independent Registered Public Accounting Firm
On August 15, 2011, the Audit Committee of the Board of Directors of China XD Plastics Company Limited (the “
Company
”) approved the dismissal of Moore Stephens Hong Kong (“
Moore Stephens
”) as the Company’s independent registered public accounting firm, effective as of August 15, 2011.
The audit reports of Moore Stephens on the Company’s consolidated financial statements for the fiscal years ended December 31, 2010 and 2009 did not contain any adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles.
During the two fiscal years ended December 31, 2010 and 2009, and the subsequent interim period through August 15, 2011, there were no (1) disagreements with Moore Stephens on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make references in connection with their opinion to the subject matter of the disagreement, or (2) reportable events.
The Company provided Moore Stephens with a copy of the foregoing disclosures and requested that Moore Stephens furnish the Company with a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the above statements. A copy of Moore Stephens’ letter dated August 15, 2011 is attached as
Exhibit 16.1
hereto.
(b) Engagement of New Independent Registered Public Accounting Firm
On August 15, 2011, the Audit Committee approved the appointment of KPMG, effective as of August 15, 2011, as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2011.
During the period from January 1, 2009 through December 31, 2010, and the subsequent interim period through August 15, 2011, neither the Company nor anyone acting on its behalf consulted with KPMG regarding any of the matters or events set forth in Item 304(a)(2)(i) and (ii) of Regulation S-K.