Jiangsu Guofu Hydrogen Energy Equipment Co., Ltd. (GUOFUHEE) plans to remove Deloitte Touche Tohmatsu as external auditor and appoint Rongcheng (Hong Kong) CPA Limited, pending shareholder approval at an upcoming extraordinary general meeting (EGM).

The company’s audit committee reviewed fee proposals for the financial year ending 31 December 2026 (FY2026) amid ongoing cost-control initiatives. Deloitte’s quotation ranged from RMB2.88 million to RMB3.23 million. By contrast, Rongcheng’s bid came in between RMB1.68 million and RMB2.48 million—up to 48% lower.

Negotiations with Deloitte during June–July 2026 failed to bridge the fee gap, prompting the board to endorse the audit committee’s recommendation for the change. The board stated that no disagreements or unresolved matters exist with Deloitte, and the outgoing auditor has not commenced any FY2026 audit work, mitigating transition risks.

If approved, Rongcheng will serve until the conclusion of the next annual general meeting. The board emphasised that the proposed switch aligns with efforts to streamline operating expenses without compromising audit quality, noting Rongcheng’s experience with Hong Kong-listed companies, resource allocation, and adherence to Hong Kong auditing standards.

No shareholders are deemed to have a material interest in the proposal, so no voting abstention is required. A circular detailing the resolutions and EGM arrangements will be distributed in due course. The company cautioned investors to exercise care when dealing in its shares.