AB&B Bio-Tech CO., LTD. JS announced a plan to appoint Prism Hong Kong Limited as its new external auditor, filling the vacancy created by the recent resignation of Deloitte Touche Tohmatsu. The resolution, endorsed by the Board and Audit Committee, will be put to shareholders for approval at an upcoming general meeting.
Prism, an independent Hong Kong-headquartered accounting firm with over 150 professionals (including 30+ qualified accountants), currently audits more than 70 Hong Kong-listed companies, several of which operate in biotech, pharmaceuticals and healthcare. The proposed engagement team comprises an HKICPA-licensed partner with two decades of audit experience and an engagement quality control reviewer with more than 10 years’ experience.
Scope and Approach: For the first-year engagement, Prism plans additional audit procedures addressing matters linked to AB&B Bio-Tech’s delayed 2025 results and trading suspension. Focus areas include revenue recognition, impairment testing (credit losses, inventories, PPE, ROU and intangible assets) and refund liabilities. Collaboration with component auditors and independent valuers is built into a structured, risk-based methodology.
Compliance and Quality Controls: In response to an Accounting and Financial Reporting Council (AFRC) reprimand and penalties disclosed in September 2025, Prism has implemented remedial actions such as enhanced supervision, registration workflows and targeted training. The AFRC’s follow-up review in late 2025 concluded that Prism’s internal quality controls were satisfactory.
Timetable: • Engagement acceptance and independence confirmation – late April 2026 • Audit planning and fieldwork – late April to early May 2026 • Financial reporting, including Audit Committee reviews – late May to early June 2026 Prism estimates completion of the 2025 audit by end-May 2026.
Fees: The proposed remuneration is RMB 2.40 million, based on the Group’s current structure, the complexity arising from previously announced issues and the seniority of personnel required.
Trading Status: Trading in AB&B Bio-Tech’s H shares has been suspended since 1 April 2026 and will remain halted pending publication of the 2025 annual results and fulfilment of Stock Exchange resumption conditions. The company states it is working with advisers and regulators to resume trading “at the earliest opportunity” and will provide further updates as necessary.
Shareholders are advised to exercise caution when dealing in the company’s securities until further notice.
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