CAPITAL ENV plans to appoint Hong Kong Lixin Dehao as the new auditor

According to the announcement from Zhitong Finance APP, CAPITAL ENV (03989) has released a statement regarding the audit of financial statements for state-owned enterprises in accordance with the relevant regulations from the Ministry of Finance of the People's Republic of China and the State-owned Assets Supervision and Administration Commission of the State Council. There are certain limitations on the duration for which an accounting firm can continuously provide audit services to a state-owned enterprise. The company is a subsidiary of Beijing Capital Group Co., Ltd. (a state-owned enterprise), and since the current independent auditor, Ernst & Young (EY), has reached the stipulated term, EY will resign as the company's auditor, effective from the conclusion of the company's upcoming annual general meeting (AGM). The board also believes that changing auditors after a certain period will help enhance the independence of the auditor and maintain good corporate governance. In light of EY's planned resignation, the company has conducted an open procurement selection process for audit services, which has been overseen by the board's audit committee. Factors considered in this process include, but are not limited to: the fee quotations and audit proposals from relevant candidates; their experience in handling audits for listed companies on the Hong Kong Stock Exchange, industry knowledge, quality control and data protection mechanisms, as well as technical capabilities; their independence and objectivity; and their resources and capabilities (including manpower, time commitment, and the composition of the audit team). Based on the results of the above process and the recommendation from the audit committee, the board has resolved to propose the appointment of Hong Kong Lee & Associates CPA Limited as the company's auditor, with the term commencing from the conclusion of the AGM and until the conclusion of the next AGM, subject to approval by shareholders at the AGM