China General Education Group Limited (China General Education) released a supplemental announcement on 8 June 2026 detailing its recent change of auditor, triggered by a fee impasse with outgoing auditor Moore.
Moore’s resignation letter cited “professional risk” and “internal resources in light of current work flows” but clarified that these references were generic considerations and not specific concerns about China General Education. The core issue was a mismatch between Moore’s proposed fee and the company’s budget: Moore declined to accept the company’s offer of RMB 1.85 million for the FY2026 engagement and had not commenced any audit work prior to resigning on 6 March 2026.
The Audit Committee evaluated several firms—including KPMG, Grant Thornton and Cheng & Cheng Taxation & Handford (CCTH)—against Accounting and Financial Reporting Council guidelines. Key findings for CCTH included: • Governance & leadership: more than 10 partners and AFRC registration as a public-interest entity auditor. • Ethical compliance: adherence to HKSQM 1 and the Code of Ethics. • Technical competence: audits for over 40 Hong Kong-listed issuers, including one in a comparable industry. • Resource adequacy: engagement team deemed sufficient in expertise and capacity. • Communication framework: comprehensive plan for Audit Committee interaction.
CCTH’s all-inclusive fee proposal of RMB 1.75 million for the interim review and annual audit was comparable to other bids and below Moore’s expected charge, meeting the company’s cost-efficiency objectives without compromising audit quality. The Audit Committee consequently recommended CCTH’s appointment, and a services agreement was executed on 6 March 2026.
Chronology of key events • 15 Jan 2026: Company requested Moore’s FY2026 fee quotation. • 16–18 Jan 2026: Fee discussions with Moore. • 18–20 Jan 2026: Alternative quotations sought from KPMG, Grant Thornton and CCTH. • 29 Jan 2026: Moore rejected the RMB 1.85 million offer; Audit Committee reviewed alternative bids. • 6 Feb 2026: Moore confirmed refusal to proceed at the offered fee level. • 4 Mar 2026: Audit Committee met CCTH and endorsed its proposal. • 6 Mar 2026: Moore submitted resignation; company appointed CCTH the same day.
China General Education’s Board comprises Executive Directors Zhang Zhiwei, Niu Xiaojun and Zhang Zhonghua, and Independent Non-executive Directors Zan Zhihong, Hu Yuting, Wong Chi Wah and Hu Binhong. The company emphasizes that all relevant reasons for the auditor transition have been fully disclosed.