Eternal Beauty Holdings Limited (06883.HK) announced a change of auditor effective 16 March 2026. PricewaterhouseCoopers (PwC) resigned at the Board’s request after failing to secure clarity on additional audit procedures and related fees tied to HK$70.00 million in upfront payments made to three service providers shortly after the company’s IPO on 26 June 2025.

PwC Resignation • PwC was unable to determine the nature, timing and scope of further audit work required to address the service-contract payments. • The firm had not received sufficient documentation on the service providers’ backgrounds, internal control processes, pricing benchmarks or the classification of payments as listing expenses versus IPO-proceeds usage. • PwC indicated additional fees would be necessary; the Company declined and sought a change of auditor. PwC had not begun audit work for the year ending 31 March 2026.

Internal Investigation • On 6 January 2026, the Board formed an Independent Investigation Committee comprising all Independent Non-Executive Directors. • Baker & McKenzie and Acclime Corporate Advisory Services (Hong Kong) Limited were engaged to conduct and support a forensic investigation, which is ongoing. • The Audit Committee continues to communicate with the investigators and the outgoing auditor regarding scope and findings.

Appointment of RSM • On Audit Committee recommendation, RSM Hong Kong was appointed auditor on 16 March 2026 to fill the casual vacancy and serve until the next AGM. • Selection criteria included independence, professional qualifications, resource capacity, communication quality and market reputation.

Operational Impact • Management states the auditor change will not materially delay completion of the FY2025/2026 annual audit or result announcement. • The Board pledges full cooperation with RSM to finalise the audit and emphasizes that Group operations remain normal.

Investors are advised to exercise caution when dealing in Eternal Beauty securities.