LC Logistics announced that incumbent auditor Ernst & Young (EY) will retire at the conclusion of the 2026 annual general meeting after the two sides failed to agree on the proposed audit fee. EY’s decision, formalised in a letter dated 25 June 2026, cites the Group’s cost-control strategy as the key reason for non-reappointment. Both the board and audit committee confirmed there is no dispute with EY and no other matters requiring shareholder attention.

To ensure audit continuity, the board—on audit committee recommendation—plans to appoint Baker Tilly Hong Kong Limited as the new auditor, pending shareholder approval at an extraordinary general meeting to be convened after the AGM.

Key selection criteria for Baker Tilly included: 1. Audit proposal and fee alignment with the company’s cost-management objectives. 2. Demonstrated experience and technical competence with Hong Kong-listed entities. 3. Confirmed independence, adequate resources and compliance with regulatory guidelines.

The estimated audit fee for the year ending 31 December 2026 stands at RMB1.70 million, determined after arm’s-length negotiation and reflecting the current size, complexity and risk profile of the Group. The board and audit committee state that the change aims to maintain audit quality while enhancing cost-effectiveness and will not materially impact operations.

A circular outlining the proposed appointment and the EGM notice will be dispatched to shareholders in due course.