Ziyuanyuan Holdings Group Limited (ZYY) has appointed Jon Gepsom as its new external auditor following the immediate resignation of BDO on 8 December 2025.

BDO’s departure stemmed from an inability to reach agreement on audit fees for the Group’s 2025 financial statements. Management cited ongoing cost-control measures and concerns over the “overall audit fee level” as the primary reason for seeking an alternative firm.

The Audit Committee endorsed Jon Gepsom after a four-part review:

1. Audit proposal and fees: The lower fee quote is driven by engaging a PRC component auditor with a leaner cost structure, without reducing audit scope or procedures.

2. Competence and independence: The proposed engagement director brings more than 20 years’ experience with Hong Kong-listed companies. Jon Gepsom currently services over 10 listed clients, and has provided independence confirmations and details of its quality management system.

3. Audit approach: A risk-based methodology aligned with Hong Kong Standards on Auditing will be adopted, including group audit instructions and oversight of the PRC component auditor.

4. Ongoing oversight: Planning and risk assessment were completed in January 2026. The Audit Committee will hold planning, progress (scheduled for early March 2026) and closing meetings to monitor milestones, audit findings, related-party reviews, litigation exposure and going-concern assessments.

The Board and Audit Committee expect the auditor transition to have no material adverse impact on the completion of the Group’s audit for the year ended 31 December 2025.