Tse Sui Luen Jewellery (International) Ltd. (TSL, 00417) has issued a supplemental announcement detailing its plan to replace incumbent auditor Ernst & Young (EY) with Deloitte Touche Tohmatsu for the financial year ending 31 March 2027, subject to shareholder approval.
The Audit Committee’s evaluation, conducted under AFRC guidelines, highlighted six core strengths at Deloitte: 1. Governance & leadership: a Big Four structure with an engagement partner, audit partners and an engagement quality review partner, all with extensive experience in listed-company audits. 2. Ethics & independence: confirmed adherence to HKICPA’s Code of Ethics and Deloitte’s global “Principles of Business Conduct.” 3. Industry expertise: prior audits of Hong Kong–listed luxury and jewellery retailers and a team led by an AFRC-registered responsible person. 4. Engagement resources: more than 3,500 budgeted audit hours and dedicated IT and tax specialists. 5. Robust audit strategy: risk-based approach with clear milestones and regular communication with the Audit Committee. 6. Ongoing monitoring: no identified threats to Deloitte’s integrity or independence.
Financial terms reflect a leaner audit scope after TSL’s network of self-operated stores shrank from 61 to 43 between March 2025 and March 2026. Deloitte’s proposed fee is HK$2.40 million for FY2026/27, approximately 21% lower than the HK$3.05 million paid/payable to EY for FY2025/26. A separate Malaysian component will be audited by another firm for roughly RM65,000 (about HK$0.13 million).
The change is also positioned as a corporate-governance measure. After 13 years with EY, the Board believes rotating auditors will enhance independence, align with best-practice standards, strengthen stakeholder confidence and bring fresh insights to the audit process.
Key timeline: Deloitte aims to complete opening balance procedures by 31 October 2026 and conduct year-end fieldwork from late March to June 2027.
All other details in the company’s 27 July 2026 announcement and 30 July 2026 circular remain unchanged.