China High Speed Transmission Equipment Group Co., Ltd. (C Transmission) has initiated a new independent investigation after its auditor, Prism Hong Kong Limited, and the recently re-constituted board questioned the reliability of findings contained in an earlier report by FTI Consulting (Hong Kong) Limited.
The original FTI Final Report, completed in November 2025, examined a series of transactions (the “Agreements”) and associated “Relevant Amounts” involving certain subsidiaries. Following a complete change of the board in January and March 2026, both the new directors and Prism highlighted that portions of the FTI report relied on anonymous sources and unverified data, while investigators lacked full access to books, records and cooperation from key parties. The board concluded that these limitations prevent the FTI report from fully and accurately establishing the nature of the Agreements, the sums involved or the responsibilities of individuals and entities concerned.
To address these deficiencies, the board has empowered its Independent Investigation Committee—now comprising all three independent non-executive directors—to supervise a Further Investigation. Grant Thornton Zhitong Certified Public Accountants LLP has been appointed as the new independent forensic consultant and will report directly to the committee. The renewed review will reassess FTI’s source materials, evaluate the prior investigation’s constraints and undertake any additional procedures deemed necessary.
Trading in C Transmission’s shares has been suspended since 1 April 2026 and will remain halted until the company publishes its audited 2025 annual results. The company stated it will release additional updates on the progress of the Further Investigation in accordance with Hong Kong Listing Rules. Investors are advised to exercise caution when dealing in the company’s shares.
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