Asia Cassava Resources Holdings Limited (CASSAVA RES, 00841) has released further details on its plan to change auditors for the financial year ending 31 March 2026, citing a significant difference in proposed fees.

The Board and Audit Committee began negotiations with Ernst & Young (E&Y) in December 2025. E&Y quoted an all-inclusive audit fee of HK$2.80 million for the FY26 audit. A subsequent governance and cost-control review led the Company to solicit alternative bids. CCTH offered to undertake the same engagement for HK$1.20 million (exclusive of disbursements), implying a 57.1% reduction, or HK$1.60 million in absolute savings.

Key comparative metrics: • Audit hours – CCTH plans 2,752 hours; E&Y estimated 3,444 hours for its Hong Kong team, plus additional hours from overseas component teams. • Team structure – CCTH will field a partner (17+ years’ experience), an EQCR, a principal, and a five-member audit team, supplemented by component auditors in Thailand, Cambodia and Lao. • Specialist support – E&Y’s work plan incorporated 430 hours from IT, tax and valuation specialists and 380 hours from a shared service centre, elements the Audit Committee deemed non-essential given the Group’s business simplicity. CCTH’s proposal limits specialist hours to 40 (tax and technical consultant).

E&Y confirmed it has not commenced work on the FY26 accounts and stated that no circumstances—other than the fee differential—need be brought to shareholders’ attention. The Board likewise reported no outstanding audit issues or disagreements with the incumbent auditor.

The Audit Committee assessed CCTH’s independence, competence and capacity, noting the firm’s experience with more than 30 Hong Kong-listed clients and the senior involvement planned for the engagement. The Committee concluded that CCTH’s lower fee reflects operational efficiencies rather than a reduced scope and that audit quality will be maintained.

Proposed timetable: planning meetings in mid–late May 2026, fieldwork in June 2026, and completion/reporting by mid-July 2026—aligned with Listing Rule deadlines.

The proposed change, requiring shareholder approval, follows a year of stable operations for the Group, whose core businesses—dried cassava chips trading, hotel and serviced-apartment operations, and investment properties—remain fundamentally unchanged apart from the December 2025 start-up of a cassava starch plant in Lao.

The Board, led by Chairman Chu Ming Chuan, reiterates its commitment to cost discipline and robust audit quality oversight as it seeks shareholder endorsement for the appointment of CCTH as the Company’s new external auditor.