9-May-2022 Source: EHang
EHang Holdings Limited (Nasdaq: EH) (“EHang” or the “Company”), the world’s leading autonomous aerial vehicle (“AAV”) technology platform company provides an update on its status under the Holding Foreign Companies Accountable Act (the “HFCAA”). The Company was provisionally identified by the U.S. Securities and Exchange Commission (the “SEC”) as a Commission-Identified Issuer under the HFCAA on May 4, 2022, U.S. Eastern Time, following the Company’s filing of the annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on April 28, 2022.
The Company understands that this identification under the HFCAA and its implementation rules issued thereunder indicates that the SEC determines that the Company engaged an independent 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 report for Company’s financial statements for the fiscal year ended December 31, 2021.
The Company’s identification on the provisional list does not mean it will be delisted soon. Pursuant to the HFCAA, the SEC shall prohibit a company’s shares or American depositary shares (“ADSs”) from being traded on a U.S. stock exchange or in the over-the-counter trading market in the U.S. if the company has been identified by the SEC under the HFCAA for three consecutive years due to the PCAOB’s inability to inspect its auditor’s working paper related to such company because of a position taken by the authority in the foreign jurisdiction where the auditor is located.
The Company has been actively exploring possible solutions to best protect the interest of its stakeholders. The Company will continue to comply with applicable laws and regulations in both China and the U.S. and strive to maintain its listing status on the Nasdaq Stock Market.