MANY IDEA CLOUD (06696) has issued an announcement stating that in mid-March 2026, the company's auditor, BDO Limited, received an anonymous email containing unsubstantiated allegations. The email accused an executive director of the company and raised concerns about the diversion of funds raised through activities such as rights issues from their intended purposes. The email also mentioned that the audit signing partner worked closely with this executive director during the audit process to facilitate its completion.
At BDO's request, the audit committee initiated an internal review to ensure compliance and transparency in the company's financial and internal control systems. Although the initial investigation did not uncover any misconduct related to these allegations, given their nature, BDO deemed it in the best interests of the company and its shareholders to appoint an independent external advisor to examine the claims from an impartial perspective. Consequently, on March 27, 2026, the audit committee agreed to engage HLB as the independent party to perform agreed-upon procedures.
The scope of the independent procedures primarily includes, but is not limited to: (a) conducting interviews with the company's management and key personnel to understand the background of transactions related to the allegations; (b) reviewing documentation related to the group's fund outflows; and (c) assessing the effectiveness of internal controls over payment processes and providing recommendations if necessary. This scope, submitted by HLB to BDO and the audit committee for review, is designed to address the allegations.
As of the date of this announcement, preparations for the independent procedures report are still underway. The final report is currently expected to be completed by April 27, 2026. The audit committee will review the report upon its completion to ensure its conclusions align with the committee's prior assessment of the allegations.
The 2025 annual results will be published after the independent procedures report is endorsed by BDO and BDO completes related additional audit procedures. Based on management's best estimates, the 2025 annual results are expected to be announced by April 30, 2026. Due to the delay in publishing the 2025 annual results, the board meeting originally scheduled to review and approve, among other matters, the 2025 annual results is expected to be postponed.
As of the announcement date, although BDO cannot assess any impact related to these allegations until all required additional audit procedures are completed, the company is not aware of any disagreements between the company and BDO regarding the 2025 audit.