Breton Technology Co., Ltd. has issued a circular proposing the appointment of Rongcheng (Hong Kong) CPA Limited (RCHK) as its new external auditor for the financial year ending 31 December 2026, replacing KPMG. Shareholders will vote on the resolution at the company’s second extraordinary general meeting (EGM) of 2026, scheduled for 30 July at the group’s Shanghai headquarters.

KPMG’s mandate expired at the 2025 AGM on 25 June 2026. The board cites an inability to reach agreement on audit fees for the 2026 engagement as the reason for KPMG’s retirement. KPMG confirmed that there are no matters connected with its departure that need to be brought to shareholders’ attention, and it had not begun audit work on the 2026 financial statements.

Following a market-wide tender, Breton’s Audit Committee recommended RCHK, noting its professional qualifications, competitive fee proposal and overseas support capabilities. RCHK is a member of the Rongcheng Network, which is affiliated with the global RSM International network and maintains an office in the Democratic Republic of the Congo, a key market for Breton’s expanding overseas projects.

The proposed audit fee for RCHK is estimated between RMB 2.80 million and RMB 3.50 million, a figure the board considers aligned with the group’s scale, audit scope and cost-control objectives. By comparison, KPMG’s proposed fee for 2026 represented an increase over the previous year, partly due to additional costs associated with Breton’s international expansion.

The board and Audit Committee have affirmed RCHK’s independence and capacity to deliver high-quality audit services, deeming the change in auditor to be in the best interests of the company and its shareholders. If approved, RCHK will serve until the conclusion of Breton’s next annual general meeting.

Shareholders registered by the close of business on 30 July 2026 are eligible to vote at the EGM. The share register will be closed from 27 July to 30 July 2026, and proxy forms must be lodged no later than 11:00 a.m. on 29 July 2026.