Eternal Beauty Plans Auditor Switch from PwC to RSM amid HK$70 Million Service-Fee Probe; EGM Set for 12 June 2026

Eternal Beauty Holdings Limited has called an extraordinary general meeting (EGM) for 12 June 2026 to seek shareholder approval for two resolutions:

1) confirmation and ratification of PricewaterhouseCoopers’ resignation as auditor with effect from 16 March 2026; 2) approval and ratification of RSM Hong Kong’s appointment as the new auditor until the next annual general meeting.

Key points

• Background of resignation – PwC stepped down after concluding it could not determine the additional audit work, timetable or fee required to complete the audit for the year ended 31 March 2026. The impasse centres on three post-IPO service contracts—public relations, data analysis and social-media promotion—under which Eternal Beauty paid HK$70.00 million upfront. PwC requested further information, documentation and clarity on internal controls and pricing justification, and indicated that extra audit work would be needed.

• Independent investigation – The board’s audit committee has engaged external advisers to probe the HK$70 million agreements. The investigation is ongoing; its findings will shape the new auditor’s procedures.

• New auditor – RSM Hong Kong was appointed by the board on 16 March 2026 to fill the casual vacancy. Proposed audit fees, including work on opening balances, are estimated at HK$3.00–3.50 million. RSM has indicated it can complete the FY2026 audit by June 2026, subject to investigation results.

• Audit committee assessment – The committee cited RSM’s independence, resource capacity, audit plan and lower fee range (HK$2.37–2.87 million for core audit work, below PwC’s quoted range) as key factors in its recommendation. An alternative firm was considered but deemed less suitable in scale and track record.

• Listing Rules compliance – Because PwC’s resignation is deemed company-initiated, shareholder approval is required under Listing Rule 13.88. PwC’s resignation letter, included in the circular, serves as its written representation; the firm does not intend to attend or speak at the EGM.

• Trading status – Eternal Beauty’s shares (06883) have been suspended since 17 March 2026 pending resolution of the audit and investigation issues and will remain suspended until further notice.

Shareholders recorded on 12 June 2026 will be eligible to vote; proxy forms must be lodged by 10 June 2026. A poll will be taken on all resolutions.