Anpac Bio Announces Change of Auditor

SAN JOSE, Dec. 04, 2020 (GLOBE NEWSWIRE) -- Anpac Bio-Medical Science Co., Ltd. (“Anpac Bio,” the “Company” or “we”) (ANPC), a biotechnology company with operations in China and the United States focused on early cancer screening and detection, announced today the resignation of Ernst & Young Hua Ming LLP ("EY"), which previously was the independent registered public accounting firm of Anpac Bio, on November 3, 2020 and the appointment of Friedman LLP ("Friedman") as the Company's independent registered public accounting firm on December 2, 2020 to conduct the audit for the fiscal year ended December 31, 2020.   The appointment of Friedman has been approved by both the audit committee and the board of directors (the "Board") of the Company. The change was not made due to any disagreements with EY.

The reports of EY on the consolidated financial statements of Anpac Bio as of and for the years ended December 31, 2018 and 2019 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.

During each of the years ended 2018 and 2019, there were (i) no disagreements between us and EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, any of which, if not resolved to EY's satisfaction, would have caused EY to make reference thereto in their reports, and (ii) no "reportable events" requiring disclosure pursuant to Item 16F(a)(1)(v) of the instructions to Form 20-F in connection with our annual report on Form 20-F.

We provided a copy of the above statements contained in the second and third paragraphs to EY and requested that EY furnish a letter addressed to the SEC stating whether it agrees with the above statements, and if not, stating the respects in which it does not agree.

During the Company's fiscal years ended December 31, 2018 and 2019 and through the subsequent interim period on or prior to December 2, 2020, neither the Company nor anyone on its behalf has consulted with Friedman on either (a) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report nor oral advice was provided to the Company by Friedman which Friedman concluded as an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, or (b) any matter that was the subject of a disagreement, as that term is defined in Item 16F(a)(1)(iv) of Form 20-F (and the related instructions thereto) or a reportable event as set forth in Item 16F(a)(1)(v)(A) through (D) of Form 20-F.