Chongqing Machinery & Electric Co., Ltd. (Chongqing M&E) announced a planned auditor rotation driven by Chongqing SASAC regulations that cap consecutive engagements at eight years. ShineWing Certified Public Accountants, auditor since 2018, will complete its final mandate with the audit of the FY-2025 financial statements and then step down. Both the company and ShineWing confirmed the absence of any disagreements or issues requiring shareholder or creditor attention, and management expects no material impact on the FY-2026 audit process.

At the first meeting of the seventh-session Board held on 20 March 2026, directors unanimously approved the appointment of Zhongshen Zhonghuan Certified Public Accountants as the domestic financial and internal control auditor and ZSZH (HK) Fuson CPA Limited as the overseas auditor for FY-2026. The combined engagement fee is set at RMB2.20 million for a one-year term, pending shareholder approval at the 2025 Annual General Meeting.

The Audit Committee’s recommendation considered audit fees, professional qualifications, industry experience, staffing adequacy, quality-control measures, independence, communication channels, and compliance with AFRC guidelines. The Board and Audit Committee concluded that the successor firms are both qualified and suitable, and that the change is in the best interests of the company and its shareholders.

A circular detailing the proposed change and the AGM notice will be dispatched to shareholders in due course.