| PwC | 10-Jun-25 | 24-Aug-26 | | FURTHER INFORMATION - The Company removed PwC because PwC was unable to provide a definitive or proposed audit timeline for completing the 2025 audit, which had been delayed due to outstanding audit issues. The issues identified by PwC related to four 'Subject Transactions': (1) the transfer of bank loan proceeds (RMB 32.68M) by a Malaysian subsidiary to a related party controlled by the Chairman; (2) prepayments of USD 4.1M for media promotion services that were subsequently refunded without services being rendered; (3) investments of approximately RMB 36.81M in private equity funds with suspicious switching and fee adjustments; and (4) investments of HKD 35M in convertible bonds issued by private companies with low registered capital and temporary offices. PwC raised concerns regarding the commercial rationale, nature, substance, and ultimate beneficial ownership of these transactions, and requested an independent investigation. Although an investigation was conducted, PwC found the explanations and evidence unsatisfactory and indicated they did not expect to issue an unmodified opinion. To avoid indefinite stagnation of the audit, the Company proposed and approved the removal of PwC and proposed the appointment of HLB as the new auditor. |
