Hainan Drinda New Energy Technology Co., Ltd. (DRINDA) has issued a supplemental announcement detailing its plan to replace Deloitte with Zhonghui Anda CPA Limited as the Group’s overseas auditor for the financial year ending 31 December 2026.
Deloitte, the retiring auditor, confirmed on 8 May 2026 that it is unaware of any matters requiring attention from the Company’s shareholders.
Key considerations guiding the Audit Committee and Board decision include:
• Independence and Governance: Zhonghui Anda maintains a tiered governance structure with dedicated partners, signing CPAs and quality control reviewers, underpinned by formal policies on quality management, consultations and dispute resolution.
• Ethical Compliance: The firm affirmed adherence to the Hong Kong Institute of Certified Public Accountants’ Code of Ethics, with no identified conflicts of interest related to the engagement.
• Technical Competence and Industry Expertise: The proposed engagement team will be led by a partner with over 18 years of listed-company audit experience. Zhonghui Anda audits more than 90 listed companies across sectors—including energy and manufacturing—and shares a network with Zhonghui, DRINDA’s domestic auditor for FY 2025.
• Resource Allocation: Approximately 2,000 audit hours are budgeted, involving an engagement partner, an engagement quality reviewer and six to eight team members.
• Communication Framework: A detailed plan provides for timely updates on accounting policies, material adjustments and scheduled meetings with the Audit Committee.
• Monitoring and Regulatory Record: No adverse regulatory findings were noted against Zhonghui Anda over the past three years.
• Audit Fee: The proposed fee is described as competitive and commensurate with the Group’s scale, scope of work and resource requirements, with no material divergence from Deloitte’s previous scope.
After reviewing these factors against the Accounting and Financial Reporting Council’s “Guidelines for Effective Audit Committees,” the Audit Committee and Board concluded that Zhonghui Anda is suitably independent, competent and adequately resourced to deliver a high-quality audit.
The proposed change is subject to shareholder approval at the forthcoming annual general meeting. DRINDA states that the transition aligns with the best interests of the Company and its shareholders.
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