LJ INTERNATIONAL INC. ANNOUNCES APPOINTMENT OF KPMG AS NEW AUDITOR HONG KONG and LOS ANGELES, June 1, 2007 — LJ International Inc. (“LJI” or the “Company”) (Nasdaq/GM: JADE), one of the fastest growing jewelry companies in the world and through its ENZO brand, the largest foreign jewelry retailer in China, today announced that it has replaced Moores Rowland Mazars and appointed KPMG as its independent registered accounting firm to audit the Company’s consolidated financial statements for the fiscal year ended December 31, 2006 and thereafter. LJI had previously engaged Moores Rowland Mazars and its predecessor firms to perform such services since LJI’s IPO in 1998 up to and including its most recent annual report on Form 20-F for the 2005 Fiscal Year ended December 31, 2005. The change was recommended by the Company’s Audit Committee and approved unanimously by the Company’s Board of Directors. There were no disagreements with Moores Rowland Mazars on the financial statements for the fiscal years ended December 31, 2004 and 2005, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Moores Rowland Mazars, would have caused them to make reference thereto in their reports on the financial statements for such periods. “LJI has engaged Moores Rowland Mazars for many years, and we have great respect for them and the Moores Rowland Mazars professionals with whom we have worked during that time,” said Yu Chuan Yih, Chairman and Chief Executive Officer of LJ International. “However, it is clear that the auditing environment has shifted in recent years, particularly for the heavy requirements imposed on by the Sarbanes-Oxley Act. Further, given our rapid expansion into China through our ENZO brand, we believe that KPMG’s strong presence in China will provide us with audit services of the highest quality, in a manner that is more efficient and suitable for a rapidly growing company like ours.”
Of course it's old news but many incorrect statements were being spread today about why auditors were switched. They simply outgrew their old accountants. JADE will nearly do 200 million in sales next year.
If everything was going so great with the old auditors, why didn't they put out a financial statement ? June 1 is long past the time when one was due. Looks like there was material disagreement on something or the reports would have been filed.
Sarbanes -Oxley didn't just pass this spring and catch everyone by surprise. LOL