Heng Tai Consumables Group Limited has detailed a transition in its external audit arrangements following the voluntary resignation of RSM Hong Kong, effective 10 July 2026. The Board has appointed Quentin Wong & Co. CPA Limited (QW CPA) to fill the resulting vacancy until the next annual general meeting, subject to shareholder approval at an extraordinary general meeting (EGM) on 1 September 2026 in Hong Kong.

Key Points

1. Reason for Change • RSM resigned after realigning internal resources and workflows. • RSM confirmed no circumstances need to be brought to shareholder attention. • The Board and Audit Committee reported no unresolved matters with the outgoing auditor.

2. Selection Process and Criteria • Three firms were invited to tender; fee quotations received were HK$0.80 million and HK$1.30 million, while RSM did not submit a quote. • The Audit Committee evaluated audit fee differentials, governance, independence, industry expertise, engagement resources, communication protocols and monitoring processes. • QW CPA’s HK$0.80 million proposal was deemed the most cost-effective without compromising audit quality.

3. Audit Fee Considerations • The proposed HK$0.80 million fee reflects a streamlined audit scope due to suspension of the Group’s securities dealing services, a 34% revenue decline to HK$158.30 million for the six months ended 31 December 2025, and ongoing cost-control measures. • QW CPA plans to deploy 2,850 staff hours and will not provide non-audit services to safeguard independence.

4. Impact on FY 2025/26 Results • RSM had not commenced audit work for FY 2025/26; the Board expects no material effect on the timing of the annual results release.

5. Shareholder Actions and Key Dates • The EGM will be held at 3:00 p.m. on 1 September 2026 (Room 1502, 15/F, Olympia Plaza, North Point, Hong Kong). • Shareholders must lodge proxy forms by 3:00 p.m. on 30 August 2026. • The register of members will close from 27 August to 1 September 2026; only shareholders on record as of 1 September may vote.

Recommendation The Board, aligned with the Audit Committee, recommends shareholders vote in favour of appointing QW CPA as auditor until the next AGM, citing maintained audit quality, improved cost efficiency and timely completion expectations.