Huashi Group Holdings Limited announced that incumbent auditor BDO will retire at the 26 June 2026 annual general meeting, and shareholders will be asked to approve the appointment of ZSZH Hong Kong for the 2026 financial year audit.

Following its annual tender process in late May 2026, the Group compared proposals from BDO, ZSZH Hong Kong and two other firms. ZSZH Hong Kong quoted an audit fee of RMB1.00 million–RMB1.30 million, below BDO’s RMB1.30 million–RMB1.40 million range and broadly in line with the RMB1.00 million–RMB1.60 million range from the other firms. Management judged BDO’s pricing “not competitive”, prompting the change recommendation to the Audit Committee.

The Audit Committee assessed each candidate on independence, technical competence, industry experience, team structure, quality-management systems and AFRC inspection history. ZSZH Hong Kong met all criteria, is registered as a public-interest entity auditor, and currently serves 26 Hong Kong-listed clients, including one in the same sector as Huashi Group.

Proposed audit scope covers the Group’s core business operations with emphasis on higher-risk areas such as revenue recognition and management override of controls. Key milestones under ZSZH Hong Kong’s timetable are: • Audit planning and opening-balance work: Oct–Dec 2026 • Fieldwork: Jan–Mar 2027 • Draft results discussion: Mar 2027 • Results announcement: late Mar 2027 • Annual report publication: late Apr 2027

BDO has confirmed it will provide a clearance letter on the AGM date. ZSZH Hong Kong completed internal client-acceptance procedures on 8 June 2026.

The Board and Audit Committee conclude that appointing ZSZH Hong Kong will enhance cost-effectiveness without compromising audit quality and recommend shareholder approval at the upcoming AGM.