Khoon Group Limited (the “Company”) disclosed that its auditor, RSM Hong Kong (“RSM”), will retire with effect from the conclusion of the Company’s annual general meeting scheduled for December 2025.

According to the announcement, the decision stems from sanctions imposed on Mr. Chen Zhi, a controlling shareholder of the Company, by the Office of Foreign Assets Control of the U.S. Department of the Treasury and by the U.K. Foreign, Commonwealth & Development Office on October 14, 2025. As the Company was designated by OFAC for its association with Mr. Chen, RSM determined that maintaining the audit engagement would present a fundamental conflict with its ethical obligations.

RSM confirmed that, except for the reason cited, there are no other issues concerning its retirement needing attention. The board of directors and the audit committee similarly noted no disagreements or further matters to highlight. The Company plans to identify a suitable replacement and will announce details on the appointment of a new auditor when appropriate.