SG Micro Corp announced that its board has approved the exclusive adoption of China Accounting Standards for Business Enterprises (CASBE) for all future financial reporting, starting with the interim report for the six months ending 30 June 2026. The decision replaces the current dual-reporting approach that also uses International Financial Reporting Standards (IFRS).

The company stated that CASBE and IFRS have largely converged, and the shift will not cause any material changes to SG Micro’s financial results or position. To assist investors who rely on IFRS data, a reconciliation table comparing CASBE and IFRS figures will accompany the forthcoming 2026 interim results.

Following the move to a single accounting framework, SG Micro will discontinue the separate engagement of overseas auditor Ernst & Young. Domestic auditor Ernst & Young Hua Ming LLP—already recognised by the Ministry of Finance, the China Securities Regulatory Commission, and qualified as a Recognized PIE Auditor in Hong Kong—will handle the group’s audit going forward.

Both the Audit Committee and the full board endorsed the change, citing greater disclosure efficiency, lower compliance costs, and consistent reporting across the company’s A-share listing in Shenzhen and H-share listing in Hong Kong.