Quhuo Limited Changes Auditors to Guangdong Prouden CPAs Amid Declining Financial Performance

Quhuo Limited has changed its auditor from Marcum Asia CPAs LLP to Guangdong Prouden CPAs GP. The change was not due to any disagreements on accounting principles or practices. This move may impact Quhuo's financial reporting processes and influence stakeholder confidence in the company's financial transparency. According to TipRanks' AI Analyst, Spark, Quhuo's overall stock score is a Underperform, primarily influenced by its weak financial performance and valuation.

Quhuo Limited (NASDAQ: QH), a Chinese company operating in the gig economy sector, recently announced a change in its auditor from Marcum Asia CPAs LLP to Guangdong Prouden CPAs GP. The change, effective June 9, 2025, was not the result of any disagreements on accounting principles or practices, as stated in the company's Form 6-K filing with the U.S. Securities and Exchange Commission [1].

The decision to change auditors comes amidst Quhuo's ongoing challenges, including weak financial performance and a stock score of Underperform according to TipRanks' AI Analyst, Spark. Quhuo's financial statements for the fiscal year ended December 31, 2024, highlighted material weaknesses in internal controls and compliance with U.S. GAAP and SEC requirements [1].

The change in auditors may have implications for Quhuo's financial reporting processes and influence stakeholder confidence in the company's financial transparency. While the new auditor, Guangdong Prouden CPAs GP, has not been previously involved in Quhuo's auditing process, the company has stated that it intends to use this Form 6-K to satisfy its reporting obligations under Item 16F of its Form 20-F for the year ending December 31, 2025 [1].

Quhuo's recent financial performance, as reflected in its unaudited financial results, has shown a decline in revenue and net income, with a significant decrease in stock price over the past year. The company has been expanding its business through partnerships, such as the one with Baidu, Inc. (NASDAQ: BIDU), but these efforts may not yet be translating into improved financial performance [2].

As Quhuo navigates these challenges, investors and financial professionals should closely monitor the company's financial reporting processes and the impact of the auditor change. The new auditor's role in addressing the material weaknesses identified in Quhuo's internal controls and compliance with U.S. GAAP and SEC requirements will be crucial in rebuilding stakeholder confidence in the company's financial transparency.

References:
[1] https://quantisnow.com/insight/sec-form-6k-filed-by-tungray-technologies-inc-6083561
[2] https://www.tradingview.com/symbols/NASDAQ-QH/