FAST NEWS: Gogox replaces auditor in cost-reduction move

The Latest: Online logistics services provider Gogox Holdings Ltd. (2246.HK) announced Thursday that PricewaterhouseCoopers has resigned as the company’s auditor at the request of its board.

Looking Up: The company has appointed Forvis as its new auditor, which is likely to save Gogox money due to lower fees.

Take Note: Listed companies rarely request the resignation of their auditors to save money, which could raise concerns about Gogox’s financial condition.

Digging Deeper: Gogox was founded in 2013 as a logistics services provider in Hong Kong, and expanded to the Chinese Mainland, Taiwan, India, Singapore and Korea in mid-2016. It attained unicorn status when its original GoGoVan service merged with 58 Freight in August 2017 at a valuation of $1 billion. The company changed its name to Gogox the following year, and listed in Hong Kong in June 2022. But its losses have widened since the listing, totaling more than 2.3 billion yuan ($310 million) over the past two years. Gogox narrowed its loss to 82.9 million yuan in the first half of this year. But that hasn’t helped its stock, which is now down more than 98% from its IPO price.

Market Reaction: Gogox shares fell on Friday, closing down 2.5% at HK$0.39 by the midday break. The stock now trades near the lower end of its 52-week range.

Translation by A. Au

To subscribe to Bamboo Works weekly free newsletter, click here