3SBIO (01530) announced that, considering Ernst & Young (EY) has served as the company's auditor for over 15 years, appointing a new auditor with equivalent qualifications for the coming years would better align with good corporate practice for the company and its subsidiaries (collectively referred to as the "Group").
Based on the recommendation of the company's Audit Committee, the Board has resolved to propose a resolution at the upcoming Annual General Meeting (2026 AGM) to approve the appointment of KPMG as the new auditor of the company. The proposed term would commence upon the conclusion of the 2026 AGM and last until the conclusion of the company's next Annual General Meeting. This proposed appointment is subject to approval by the company's shareholders.
EY's tenure as the company's auditor will conclude and will not be renewed upon the conclusion of the 2026 AGM.
In assessing KPMG's qualifications and capabilities, the Audit Committee reviewed KPMG's credentials and determined that KPMG possesses the necessary qualifications and capabilities (including industry knowledge, technical expertise, manpower, time, and other resources) to perform the duties of the company's auditor.
Specifically, the Audit Committee evaluated the following: KPMG's proposed audit plan and fees; KPMG's experience, knowledge, and technical capabilities in auditing companies listed on the Hong Kong Stock Exchange; KPMG's independence and objectivity regarding the Group; KPMG's market reputation and track record; KPMG's resources and other capabilities; and guidance issued by the Accounting and Financial Reporting Council.
Given KPMG's aforementioned qualities and based on the Audit Committee's recommendation, the Board believes that the proposed appointment of KPMG as the company's auditor is in the overall interests of the company and its shareholders.
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