Giant Biogene Holding Co., Ltd. has initiated a change of auditors, proposing the appointment of KPMG for the financial year ending 31 December 2026 after Ernst & Young’s (EY) seven consecutive-year tenure.
The Audit Committee began reviewing auditor rotation in late March 2026 to align with corporate governance best practices. Between early and mid-April, management evaluated several firms, ultimately presenting KPMG’s proposal to the Audit Committee on 21 April. Assessment criteria included governance, industry expertise, technical competence, independence, resources and fee structure.
Following the evaluation, the Board opened retirement discussions with EY on 22 April. EY formally tendered its resignation on 30 April, citing the length of its engagement. On the same day, the Board resolved—subject to shareholder approval at the upcoming AGM—to appoint KPMG as external auditor.
The Audit Committee referenced the 2024-25 Annual Inspection Report issued by Hong Kong’s Accounting and Financial Reporting Council, noting KPMG’s satisfactory results as a Category A registered firm and finding no issues that would compromise audit quality or independence.
KPMG’s engagement plan allows a full audit cycle well before the 2026 year-end. Key milestones are: • July–August 2026: transition, interim review and risk assessment. • October–December 2026: control evaluation and audit planning. • January–March 2027: final audit fieldwork and substantive testing. • March 2027: completion, reporting to the Audit Committee and issuance of the audit opinion.
KPMG will deploy two principal audit partners, an engagement quality control review partner, senior management staff and a core team of six auditors, supplemented by IT, tax, valuation and capital-markets specialists. The firm has confirmed sufficient resources to meet the timetable without compromising audit quality.
All other details in the company’s original announcement and circular remain unchanged.
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