Building Bridges, Harnessing Advantages:
Hong Kong and China's Remarkable Collaboration
Cheng & Cheng ZhongXingHua CPA Limited is jointly operated by ZhongXingHua Certified Public Accountants and Cheng & Cheng Limited (Certified Public Accountants). ZhongXingHua has identified huge potential of the Hong Kong market and established its accounting firm operating in Hong Kong in 2019. The joint operation of “Cheng & Cheng ZhongXingHua CPA Limited” by the two accounting firms marks the establishment of an accounting firm formed through the collaboration of professional teams from Hong Kong and Mainland China.

The scope and level of professional cooperation between Hong Kong and China is improving. It is expected that potential customers from China will increase their investments in Hong Kong and overseas. Accounting firms will have enormous business opportunities. The cooperation between ZhongXingHua and Cheng & Cheng is the beginning of complementary advantages and mutual benefit. While providing excellent professional services to different cross-border clients, a team of high-quality professionals with a spirit of professional collaboration is ready to provide services.

We expect that ZhongXingHua and Cheng & Cheng would enhance cooperation in the future and provide comprehensive business scope to clients.
Firm Overview
Excellence in Service: Trusted Auditing and Taxation Experts
ZhongXingHua Certified Public Accountants is an accounting firm approved by the Ministry of Finance of the People's Republic of China. It primarily focuses on auditing services for listed companies. As a nationwide professional service organization with independent legal personality, it offers a wide range of services including accounting, asset valuation, financial and tax consulting, and engineering consulting. ZhongXingHua’s headquarter is located in Beijing, with branch offices in Anhui, Jiangsu, Shandong, and 39 other locations.

Cheng & Cheng Limited (Certified Public Accountants) is a well-established local accounting firm based in Hong Kong. With over thirty years of tradition and reputation, we have positioned ourselves as industry leaders, delivering excellent services to our clients in the fields of auditing, taxation, and other professional services.
Intelligent Integration, Service Enhancement: Uniting Professional Expertise to provide China and Hong Kong Professional Services to Clients
ZhongXingHua boasts a highly skilled and experienced professional team with in-depth knowledge of local, Chinese, and international accounting standards. Our auditors conduct thorough reviews of financial statements, ensuring accuracy, transparency, and compliance with regulatory standards, thereby providing clients with comprehensive and reliable assurance.

Cheng & Cheng ZhongXingHua team also possesses extensive expertise in tax matters. With a profound understanding of tax regulations in Hong Kong and China, coupled with an international planning mindset, we assist clients in effectively managing their tax obligations. From tax planning and compliance to advisory services, we are dedicated to optimizing clients' tax situations while ensuring adherence to legal requirements.

In addition to auditing and tax services, the Cheng & Cheng ZhongXingHua team also offers a wide range of professional services to meet diverse business needs. Our dedicated advisory team provides valuable insights and guidance in areas such as corporate finance, risk management, and business consulting. We are committed to helping clients navigate today's complex business environment and achieve sustainable growth.
Our Services
Auditing for Mainland China Companies
Financial statement auditing refers to the process of conducting audit procedures on a company's financial statements in accordance with the auditing standards set by the Certified Public Accountant of China. The objective is to enhance the level of trust that financial statement users have in the financial statements. Our financial statement auditing services primarily include the annual financial statement audits of various types of enterprises, IPO business audits, various types of special audits (including audits of special purpose financial statements, acquisition project audits, high-tech enterprise certifications, economic responsibility audits, liquidation audits, audits of social security fund contributions, as well as audits of the application and utilization of fiscal funds), and more.

Auditing for Hong Kong Companies
In accordance with the Hong Kong Companies Ordinance (Chapter 622), all companies incorporated in Hong Kong are required to have an annual audit. While the Companies Ordinance lays down the obligations for companies, the Inland Revenue Ordinance (Chapter 112) also requires all incorporated companies to enclose audited financial statements together with the submission of a Profits Tax Return to the Inland Revenue Department. In performing the audit, we adopt a constructive approach and make every effort to maintain the effectiveness and efficiency of every case.

Auditing services provided by Cheng & Cheng Limited are:
  • Statutory auditing, in compliance with accounting standards and legal requirements; and
  • Case specific auditing and reporting for:
    • Internal management system operations reviews
    • Mergers and acquisitions
    • Clients’ specific requirements
  • Hong Kong Tax (i.e. Profits Tax, Salaries Tax and Property Tax) advisory
  • Hong Kong Tax compliance (i.e. filing of Returns and handling enquiry letter from the Tax Authority)
  • Transfer Pricing advisory and documentation (i.e. Master File, Local File, Country-by-Country Reporting and Benchmarking Report)
  • IPO Tax advisory (Pre-IPO restructuring and tax opinion expert)*
  • Hong Kong Tax Resident advisory, application of Certificate of Tax Resident Status (Corporate and Individual) and other supporting
          services (e.g. work visa application)
  • Field Audit and Investigation
  • Enterprise Income Tax ("EIT") quarterly filings
  • EIT annual filing
  • VAT and local surcharges monthly/quarterly filings
  • Issuance/ collection of VAT invoice
  • Acting for other tax declaration and withholding
  • Monthly filing of VAT Exemption Credit and Refund (“ECR”) for export sales
  • Individual Income Tax ("IIT”) monthly filing for PRC staff
  • Other ad-hoc tax advisory services
  • Tax Assurance Services
We assist clients in all aspects in relation to Initial Public Offerings (“IPOs”) in Hong Kong especially the setting up of proper internal control systems, group restructuring and preparation of documents required by other professionals. Our professional teams will help your through the listing process.

Pre-IPO services (planning and preparation stage):
When our clients think of going public, we help them to get prepared for the IPO by performing readiness assessment, reviewing internal controls, corporate governance, group structure and compliance with laws and regulations, providing recommendations for improvement, as well as identifying any issues that needed to be resolved before kick-off of IPO.

IPO services (application and execution stage):
Moving forward to execution stage after preparation, our teams could act as the reporting accountant to audit and give opinion on financial information, assist in preparation of offering documents/prospectus, attend meetings with the management, underwriters, legal counsel, etc., assist in handling queries on related issues, and to work with the management to ensure IPO deadlines are being met.

Post-IPO services:
After going public, we could serve as external auditors to perform annual audit, interim review and other engagements, etc. We have acted as principal auditors for companies listed on Main Board/GEM of the Stock Exchange of Hong Kong Limited.
A separate company with its own management and staff were formed for provision of exclusive corporate secretarial services. The staff are richly experienced in all aspects of the corporate secretarial function.

The company specializes in incorporation of local and overseas companies. The company also assists in planning company structures and offers expertise and advice on all aspects of corporate administration as well as assisting in opening bank accounts.

A full range of required legal secretarial services provided to our clients include but not limited to:
  • Company formation
  • Corporate governance, company secretarial and regulatory compliance services
  • Implementation of corporate restructuring exercises
  • Liquidation, dissolution and cessation of business
  • Maintaining statutory records
  • Filing of statutory returns
  • Preparing and keeping of significant controllers register (SCR) and acting as designated representative
  • Provision of a registered office and redirection of mails service
  • Providing nominee directors, shareholders and authorised representatives
Corporate Risk Management and Internal Control Review for Mainland China Companies

Internal Control Advisory Services
In today's complex and rapidly changing business environment, companies face numerous uncertainties, such as intense competition, globalization, rising customer expectations, new technologies, and regulatory changes. To navigate this intricate landscape and achieve sustainable development, higher demands are placed on the level of internal control management within organizations. Our team of internal control experts utilizes specialized tools and methodologies to help companies identify weak areas in their internal control management, tailor suitable solutions, and establish a robust internal control framework. By doing so, we assist companies in establishing a self-improvement mechanism for internal controls, effectively meeting external regulatory requirements, mitigating risks, reducing uncertainties, and enhancing operational efficiency and effectiveness.

Internal Audit
Internal audit is an independent and objective assurance and consulting activity aimed at adding value and improving an organization's operations. It evaluates and enhances the effectiveness of risk management, control, and governance processes through the application of systematic and disciplined approaches, helping organizations achieve their objectives. Currently, the role of internal audit has shifted from traditional oversight and inspection to internal management services, with a focus on internal supervision and advisory. We have a large team of professionals with extensive expertise, capable of providing ongoing advice and relevant training throughout the process of establishing the internal audit function in your company.

Corporate Risk Management and Internal Control Review for Hong Kong Companies

We specialize in corporate governance, internal control review, risk management, compliance, internal audit support, IT audit and advisory and other corporate advisory consultancy as per client’s requirements. Particular services include:
  • Provision of corporate governance assessment and compliance assistance and advice on corporate governance structures, policies and
          procedures
  • Assisting in implementing Enterprise Risk Management (ERM) framework, self-assessment criteria for risk management and risk
          management process
  • Internal control review for compliance with corporate governance/regulatory requirements, internal audits and other related purposes
  • Internal controls/due diligence for clients involved in pre-listing IPO engagements
  • Outsourcing and co-sourcing of internal audit functions and performance of internal audit projects
  • Reviews of IT controls, business processes and information security, data accuracy and integrity, software asset management and IT project
          quality assurance
  • Other value added business advisory services related to the above areas
Personal Profile
Francis Cheng
Founder & CEO
Professional Qualification: Hong Kong Certified Public Accountant, Certified Tax Adviser (CTA)

Mr. Cheng, the founder and CEO of Cheng & Cheng ZhongXingHua CPA Limited, has nearly 40 years of experience in the accounting profession. He was previously employed by the then third-largest accounting firm in Hong Kong, Kwan Wong Tan and Fong (later merged with Deloitte), and currently serves as an engagement partner for several listed companies in Hong Kong, overseeing their audit projects.
Alice Li
Hong Kong Audit Engagement Partner
Professional Qualification: Hong Kong Certified Public Accountant, Certified Tax Adviser (CTA)

Through over 20 years of working experience, Alice has gained enormous hands on experience in listed and small and medium-sized entities auditing, taxation, corporate services, accounting and professional consultancy. Her involvement in extensive client portfolio has enriched the quality of services to clients.

Alice brings with her not only a thorough professional knowledge but also an ability to speak a number of languages, including Cantonese, English, Mandarin and Fujianese. Her language skills are an enormous asset to the firm, aiding to build stronger relationships and more efficient services with the firm’s international clients.
Gabriel Chan
Hong Kong Audit Engagement Partner
Professional Qualification: Hong Kong Certified Public Accountant

Gabriel Chan enhanced his professional skills in Cheng & Cheng Limited where he was exposed to more tax oriented clients. Apart from regular SME cases, he also handles a portfolio of listed clients and has been a key liaison officer for our overseas clients. His presentation skills and proficiency in written and spoken English have helped him further develop his client base. He has also been involved in numerous investigation cases where disputes between shareholders and directors ended in court and independent accountant’s reports were needed to achieve resolution.
Cloudy Ho
Hong Kong Audit Engagement Partner
Professional Qualification: Hong Kong Certified Public Accountant

Cloudy Ho is responsible for audit engagements, including listed companies, multinational corporations, and financial institutions. Her areas of expertise include real estate development, various financial institutions, manufacturing industries, wholesale and retail businesses, and more.
Steve Yeung
Audit Engagement Technical Partner
Professional Qualification: Hong Kong Certified Public Accountant

Steve Yeung has developed expertise in financial reporting, auditing, and taxation during his tenure with the company. He now focuses on providing technical support in financial reporting and auditing and conducting training for internal staff in these areas.
Jerry Lam
Hong Kong Audit Engagement Manager
Professional Qualification: Hong Kong Certified Public Accountant

Jerry Lam has provided audit and attestation services to clients of various scales, including listed companies, multinational corporations, and small to medium-sized enterprises. His experience spans across a wide range of industries, including real estate development, trade, retail and manufacturing, logistics, construction, industries regulated by the Securities and Futures Commission in Hong Kong, and insurance brokerage, among others.
Ivan Yau
Hong Kong Audit Engagement Manager
Professional Qualification: Hong Kong Certified Public Accountant

Ivan Yau has gained over 17 years’ solid experience in managing a wide range of auditing, financial reporting, internal control and capital market transactions. Possess with strong sense of integrity, excellent financial management, audit & assurance knowledge and experience. Clientele include a number of sizable entities from healthcare, technology, pharmaceutical, tourism, manufacturing and property development sectors. He has also maintained good relationship with professional parties, including investors, sponsors, lawyers, etc. in supporting capital market transactions. He successfully completed a number of IPO and pre-IPO projects involved companies from internet, property development, construction and biotech sectors, etc.
Jerry Lui
Hong Kong Audit Engagement Manager
Professional Qualification: Hong Kong Certified Public Accountant

Jerry Lui has more than 10 years of experience in auditing and accounting. He had worked at various professional accounting firms with different cultures and clienteles and gained broad experience in handling audit and assurance engagements of both listed companies and private companies. In addition to audit engagements, he also handles financial due diligence and provides consultations to our clients.

He has dealt with clients from a wide range of industries, including manufacturing, trading and sourcing and services industry which allows him to understand clients’ operations and their needs when providing satisfying services.
Elena Ng
Tax Engagement Manager
Professional Qualification: Hong Kong Certified Public Accountant, Certified Tax Adviser (CTA)

Elena Ng has ten years of experience in tax services, with a focus on Hong Kong profits tax filing and tax advisory services. She also provides tax consulting for Chinese companies and individuals, as well as transfer pricing tax services. Her clients include listed companies, multinational corporations, and local companies.