PKF International has admitted Daxin, one of China’s largest CPA firms, as its Chinese member firm. The admission was sealed at a signing ceremony at Beijing’s Great Hall of the People.
With 23 equity partners, 10 salaried partners and around 1,500 staff, Daxin has been ranked as China’s sixth largest domestic CPA firm by the Chinese Institute of Certified Public Accountants.
The firm is expected to report CNY600 million ($90 million) this financial year and has ambitions to increase its staff to 3,000 to exceed revenues of CNY1 billion within three years.
Daxin is a domestic audit and assurance firm with clients across a range of sectors, including chemicals, electronics, heavy engineering and manufacturing. It has also provided listing and IPO services for over 300 enterprises and is one of a handful of private firms in China to undertake securities and futures work.
Daxin operates in 14 cities across Mainland China and has had a close working relationship with PKF’s Hong Kong firm for several years.
China’s Ministry of Finance (MoF) plans to develop 5-10 ‘super big’ domestic public accounting firms within the next decade to take on the Big Four in China. The government is doing this to tackle what it perceives to be Big Four market concentration that exists in most developed markets. This has led to several mid-tier networks partnering with large Chinese firms in the past year.
PKF International Asia-Pacific regional director Stephen Darley says the network is keen to make sure they are party to these plans. Darley told the International Accounting Bulletin the MoF described the union as a ‘marriage’ of equals with mutual benefits for both parties. Darley said Daxin is PKF’s exclusive Chinese firm and the network would help it grow.
In January, the International Accounting Bulletin ranked PKF International as the 11th largest global accounting network with combined member firm revenue of $1.9 billion. PKF International said combined revenue has grown by about 25 percent to $2.4 billion this year, and the network harbours ambitions to become a top 10 network by 2011.