China Nature Energy Technology Holdings Limited (Stock Code: 1597) announced the resignation of its auditor KPMG, effective 15 October 2025. According to the announcement, the company could not reach a consensus with KPMG regarding audit fees for the financial year ending 31 December 2025, and it had also received more competitive proposals from other accounting firms.

The board and the audit committee confirmed there were no disagreements or unresolved matters between the company and KPMG. KPMG had yet to commence audit work on the consolidated financial statements for the year ending 31 December 2025, and no significant impact on the annual audit is anticipated.

Further to the resignation of KPMG, Baker Tilly Hong Kong Limited has been appointed as the new auditor, effective 20 October 2025, until the conclusion of the next annual general meeting. The audit committee considered various factors in recommending Baker Tilly, including its experience with listed entities, industry expertise, resources, independence, audit fee, and market reputation. The board and the audit committee believe this appointment is in the interests of the company and its shareholders overall and will maintain audit quality.