Item 4.01 Changes in Registrant’s Certifying Accountant.
(a) Resignation
of Independent Registered Public Accounting Firm.
Pingtan Marine Enterprise
Ltd. (the “Company”) previously engaged BDO China Shu Lun Pan Certified Public Accountants LLP (“BDO”) as the
Company's independent registered public accounting firm for the fiscal year ended December 31, 2019. BDO has served as the independent
auditor for the Company since September 1, 2014. On May 31, 2021 (the “Effective Date”), BDO tendered its resignation to the
audit committee as the Company’s independent registered public accounting firm effective immediately.
BDO has not completed an audit
or issued a report on the Company’s consolidated financial statements for the year ended December 31, 2020. BDO issued the independent
registered public accounting firm reports on the Company’s consolidated financial statements for the fiscal years ended December
31, 2019 and 2018.
The audit reports of BDO on
the Company’s consolidated financial statements for each of the two most recent fiscal years ended December 31, 2019 and 2018 did
not contain any adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting
principles.
During the Company’s
two most recent fiscal years ended December 31, 2019 and 2018, and the subsequent interim period through the Effective Date, there were
no disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between the Company and BDO on any
matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to
the satisfaction of BDO, would have caused BDO to make reference to the subject matter of the disagreement in connection with BDO’s
reports on the Company’s consolidated financial statements for 2019 and 2018 or in BDO’s report on the consolidated financial
statements for 2020, which had not been completed at the time of the resignation.
During the Company’s
two most recent fiscal years ended December 31, 2019 and 2018, there were no “reportable events” (as defined in Item 304(a)(1)(v)
of Regulation S-K and the related instructions). However, during the subsequent interim period through the Effective Date, there were
“reportable events” in connection with BDO’s audit of the Company’s consolidated financial statements for the
fiscal year ended December 31, 2020. At the time of the Effective Date, BDO was in the process of: (a) evaluating the Company’s
ability to continue as a going concern, (b) assessing the Company’s prepayment to Huanghai Shipbuilding Co., Ltd. for the ongoing
construction of a krill fishing vessel, and (c) evaluating the Company’s conclusion that the Global Deep Ocean is an equity method
investee.
In addition, the Company’s
management identified a material weakness in internal controls over financial reporting involving a failure to maintain a sufficient complement
of personnel with an appropriate level of experience and training in the application of U.S. GAAP commensurate with its financial reporting
requirements, as of December 31, 2020. A further description of the material weaknesses can be found in the Form 12b-25 filed by the Company
on April 1, 2021 with the U.S. Securities and Exchange Commission (“SEC”). The material weakness has not resulted in any material
misstatements or omissions in previously reported financial statements and management is taking steps to remediate the material weakness.
The Company provided BDO with
a copy of the disclosures in this Current Report on Form 8-K (this “Report”) prior to filing this Report with the SEC. The
Company requested that BDO furnish it with a letter addressed to the SEC stating whether BDO agrees with the statements made by the Company
regarding BDO in this Report and, if not, stating the respects in which it does not agree. A copy of BDO’s letter dated June 3,
2021 to the SEC is filed as Exhibit 16.1 to this Report.
(b) Appointment
of New Independent Registered Public Accounting Firm.
On May 31, 2021, the Company’s
board of directors approved the appointment of Wei, Wei & Co, LLP (“WW”) as the Company’s new independent registered
public accounting firm effective as of May 31, 2021. The Board will ask that shareholders of the Company ratify the appointment of WW
at the next general annual meeting of shareholders of the Company.
In connection with the Company’s
appointment of WW as the Company’s independent registered public accounting firm, the Company has not consulted with WW on any matter
relating to either (i) 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 consolidated financial statements; or (ii) any matter that was the
subject of a “disagreement” (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions)
or any “reportable event” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K).
WW will audit the Company’s
financial statements for the fiscal year ended December 31, 2020.