Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 57

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 57
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’s compliance with the applicable professional standards with the last inspection in December 2023. However,
recent developments with respect to audits of Hong Kong based companies, such as us, create uncertainty about the ability of our auditor
to fully cooperate with the PCAOB’s request for audit workpapers without the approval of the Chinese authorities. As a result, our
investors may be deprived of the benefits of PCAOB’s oversight of our auditor through such inspections.

Inspections of certain
other firms that the PCAOB has conducted outside of China have identified deficiencies in those firms’ audit procedures and quality
control procedures, which may be addressed as part of the inspection process to improve future audit quality. The PCAOB is currently able
to conduct inspections of audit firms located in Mainland China and Hong Kong and conduct inspections of U. S. audit firms where audit
work papers are located in Mainland China.

In addition, as part
of a continued regulatory focus in the United States on access to audit and other information currently protected by national law, in
particular China’s, in June 2019, a bipartisan group of lawmakers introduced bills in both houses of Congress that would require
the SEC to maintain a list of issuers for which the PCAOB is not able to inspect or investigate an auditor report issued by a foreign
public accounting firm. The Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges (EQUITABLE) Act prescribes
increased disclosure requirements for such issuers and, beginning in 2025, the delisting from national securities exchanges, such as Nasdaq,
of issuers included for three consecutive years on the SEC’s list. On May 20, 2020, the U. S. Senate passed S. 945, the HFCAA.
The HFCAA was approved by the U. S. House of Representatives on December 2, 2020. On December 18, 2020, the former U. S. president
signed into law the HFCAA. In essence, the HFCAA requires the SEC to prohibit foreign companies from listing securities on U. S. securities
exchanges if a company retains a foreign accounting firm that cannot be inspected by the PCAOB for three consecutive years, beginning
in 2021. The enactment of the HFCAA and any additional rulemaking efforts to increase U. S. regulatory access to audit information could
cause investor uncertainty for affected issuers, including us, and the market price of our securities could be adversely affected,