China High Speed Transmission Equipment Group Co., Ltd. (C Transmission, 00658) issued a supplemental announcement detailing proposals to remove HLB Hodgson as auditor and appoint Prism CPA at an upcoming extraordinary general meeting (EGM).

Fullshare Holdings, which controls 71.08 % of the issued shares, continues to contest the validity of HLB Hodgson’s September 2025 appointment and has pledged to support only Prism, its own auditor. Four newly appointed directors on 16 January 2026 sided with Fullshare, citing the risk that any FY2025 audit opinion issued by HLB Hodgson could later be ruled invalid.

Key board decisions • 13 February 2026: the Board ordered HLB Hodgson to halt FY2025 audit work. • February 2026: the Audit Committee (2 votes to 1) endorsed the removal of HLB Hodgson and the engagement of Prism. • The EGM timetable will be set in a forthcoming circular; trading in the company’s shares will be suspended once the meeting is convened, as required by Listing Rules.

Unresolved audit matters flagged by HLB Hodgson Because audit procedures were stopped mid-February, HLB Hodgson was unable to obtain sufficient evidence on several material areas: 1. Trade receivables and prepayments from bulk-commodity trading: gross carrying amounts of RMB3.19 billion and RMB3.45 billion, respectively, were fully impaired for both 2025 and 2024. Access to the Independent Investigation report on unauthorised transactions remains outstanding. 2. Engineering, procurement and construction (EPC) project: contract liabilities of RMB467.76 million, prepayments of RMB297.21 million and inventories of RMB997.72 million (2025) lack supporting documentation because subcontractors and the project owner have not cooperated. 3. Financial assets at fair value through profit or loss: equity investments in three limited partnerships fell from RMB423.30 million in 2024 to nil in 2025, generating a fair-value loss of RMB423.30 million; valuation data has not been provided.

HLB Hodgson maintains it is still the incumbent auditor until formally removed at the EGM. The Board states there is no other disagreement with HLB Hodgson beyond the issues disclosed.

The company believes a decisive shareholder vote will resolve the long-running dispute, remove legal uncertainty over the FY2025 audit opinion and align the audit timetable with Fullshare’s reporting requirements.