Clarity Medical Group Holding Limited (Clarity Medical) reported a change of auditor after Ernst & Young (EY) tendered its resignation, effective 31 March 2026, at the Board’s request. The decision follows the Company’s inability to reach consensus with EY on the timetable and costs for completing the audit of the consolidated financial statements for the year ended 31 March 2025 (2025 Audit). Any further delay was deemed detrimental to the Company’s efforts to resume trading of its shares, suspended since 15 April 2025.
EY’s resignation letter highlighted two unresolved investigations: 1. Allegation I – anonymous claims against certain directors or employees first raised in November 2024. A Special Committee formed on 30 December 2024 commenced an Independent Investigation, which is now being handled by a newly appointed forensic advisor after changes to the committee in November 2025. The work remains in progress without a completion timetable. 2. Allegation II – assertions of material misstatements in the Company’s IPO prospectus received in April 2025. A Separate Special Committee was established on 25 June 2025, and a forensic advisor was engaged on 10 February 2026. This investigation is also ongoing with no definitive end-date.
Because the Independent Investigations are incomplete and EY was not invited to relevant meetings or interviews, the auditor cannot determine the additional procedures required to finalise the 2025 Audit. EY confirmed it has not been engaged for the audit of the financial year ending 31 March 2026. Aside from issues linked to the Allegations and the trading suspension, EY reported no other matters that need to be brought to shareholders’ or creditors’ attention. The Board and Audit Committee likewise confirmed no other disagreements with EY.
Subject to the completion of engagement acceptance procedures now underway, the Board approved the appointment of Crowe (HK) CPA Limited (Crowe) to fill the casual vacancy until the next annual general meeting. The Audit Committee cited Crowe’s competence, market reputation, resources, independence and alignment with regulatory guidelines as key factors underpinning its recommendation. An additional announcement will be issued once Crowe’s appointment is finalised.
Trading in Clarity Medical’s shares remains suspended until further notice. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s securities.