Mirxes Holding Company Limited released a supplemental announcement on 10 May 2026 detailing additional information requested by its auditor, KPMG, and outlining the scope of an ongoing investigation by the Board-appointed Independent Investigation Committee (IIC).
KPMG’s Letter of 26 March 2026 • The auditor has yet to obtain full documentation supporting several large prepayments. • Key outstanding items include: – Background and selection process of service providers with limited public profiles. – Evidence of vendor competence and compliance with the Group’s procurement policies. – Justification for substantial upfront payments and a comparison of contract prices with prevailing market terms.
IIC Investigation The IIC is reviewing the prepayments and is working with management to address KPMG’s questions. Findings will inform the company’s plan to meet resumption requirements.
Material Cash Outflows Identified After 31 Dec 2025 • Approximately US$57.00 million and RMB10.00 million were disbursed. • Management attributes the funds mainly to interest-bearing deposits; the remainder covered: – Advance payments for next-generation sequencing equipment, – Production equipment for a new manufacturing facility, – Potential acquisition of proprietary intellectual property, and – Advisory fees. • KPMG has not completed its subsequent-events procedures and expects the IIC to extend its probe to these outflows.
Trading Status Mirxes shares have been suspended since 1 April 2026 and will remain so until the Stock Exchange’s resumption conditions are satisfied.
Investors are advised to exercise caution when dealing in the company’s securities.
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