Wuxi Life International Holdings Group Limited (stock code: 08148) has issued a supplemental announcement detailing its decision to appoint CCTH CPA Limited (CCTH) as external auditor following the resignation of Fan, Chan & Co. on 25 November 2025.
Key points:
1. Audit Committee Assessment • Independence & Ethics: No prior services from CCTH to the Group; no conflicts of interest identified. • Industry Expertise: CCTH audits more than 40 Hong Kong-listed companies and has experience in sectors similar to Wuxi Life’s operations. • Resources & Staffing: An eight-member team—including an engagement partner, a review partner and a technical specialist—will be assigned. • Regulatory Record: The Committee noted one AFRC reprimand related to procedural delays but concluded it does not impair CCTH’s ability to deliver a high-quality audit.
2. Audit Fee Comparison • Fan, Chan & Co. quotation: HK$1.00 million. • CCTH quotation: HK$0.65 million. • The 35% reduction reflects lower average hourly rates and a commitment to maintain a stable engagement team, which the Committee believes will improve efficiency without compromising quality.
3. Audit Plan & Timetable • Risk-based focus areas: management override of controls, revenue recognition, and impairment of trade and other receivables. • Fieldwork schedule: 19 January – 13 February 2026 in Hong Kong and mainland China. • Target dates: clearance meetings in early March 2026, audit finalisation mid-March 2026, and results announcement in late March 2026.
4. Chronology of Events • October 2025: Wuxi Life sought proposals from Fan, Chan & Co. and two other firms. • November 2025: Negotiations failed to align on fees with Fan, Chan & Co.; Audit Committee favoured CCTH’s proposal for cost and resource reasons. • 25 November 2025: Fan, Chan & Co. resigned; Wuxi Life signed an engagement letter with CCTH the same day.
The Board states that the change is aimed at achieving cost efficiency while maintaining audit quality and confirms there are no matters under GEM Rule 17.100 arising from the auditor’s resignation.