Neo has signed an agreement with a Hong Kong-based CPA firm to conduct an independent Agreed-Upon Procedures review of its financial position. The engagement marks the first known independent external examination of Neo’s finances and follows the finalization of the Neo Financial Report & Insights for Fiscal Year 2025.
The move delivers on a key commitment outlined in Neo’s restructuring roadmap, which pledged annual reporting, independent audits, and public treasury addresses as part of a broader governance overhaul. The FY 2025 financial report, originally released on March 3 as a preview with provisional figures, has been updated to its final version. No numbers were changed between versions. AUP findings will be published upon completion of the engagement.
An AUP engagement is a type of attestation service where specific procedures are agreed upon by the client and the auditor. Unlike a full audit, an AUP focuses on targeted areas of financial data rather than providing an opinion on financial statements as a whole. The CPA firm performs the agreed-upon procedures and reports its findings, offering verification of specific claims or data points.
Neo has not yet disclosed the name of the CPA firm or the specific scope of procedures included in the engagement.
The FY 2025 financial report, Neo’s first comprehensive public financial disclosure since the 2019 report published in April 2020, covers consolidated treasury assets of US $460.8 million as of Dec. 31, 2025. The Neo Foundation holds $224.7 million, representing 49% of total assets, while Neo Global Development holds $236.1 million, accounting for 51%.
The report includes 25 single-signature and 17 multi-signature wallet addresses. Currently, 86% of NF assets are held in single-signature wallets, with a commitment to transition all assets to multi-signature custody by the end of 2026.
The push for financial transparency emerged from a public disagreement between Neo co-founders Da Hongfei and Erik Zhang over treasury oversight and governance. Da Hongfei, founder and co-chair of the Neo Foundation, committed to releasing preliminary financial figures in early 2026 and later pledged quarterly financial reports following a January meeting with Zhang.
Zhang has argued that transparency without preventative controls is insufficient, calling for verifiable financial oversight mechanisms rather than retrospective reporting alone. In response, the FY 2025 report outlines four transitions targeted for completion by the end of 2026: multi-signature custody for all assets, a community-driven governance framework, annual reporting with independent audits, and community empowerment pathways.
The original announcement can be found at the link below:
https://x.com/ngd_neo/status/2034555768759009748
Dean is a digital project manager who has worked extensively with start ups and agencies in the marketing space. Fascinated by the potential applications of blockchain technology, Dean has a passion for realising the new smart economy.
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