S-Enjoy Service Group auditor resigns amid investigation

S-Enjoy Service Group Co., Limited [HKEX:1755] announced the resignation of its auditor, PricewaterhouseCoopers (PwC), effective May 26, 2025, amid an ongoing investigation into certain fund transfer transactions. PwC cited material concerns regarding related party fund transfers totaling RMB2.27 billion discovered during the 2024 audit. These transactions, involving fund outflow and inflow between the Group and a related party, were not properly accounted for or disclosed, prompting the Company to establish an Independent Investigation Committee. PwC also stated management provided two versions of bank statements which contained reconciliation issues with three accounts. The resignation followed disagreement over the additional audit fee required for the matter of the related party fund transfers and independent investigation. The company's CFO, Ms. Chen Nina, also resigned, effective May 27, 2025 due to a change of internal work arrangement within the group. Replacing Ms. Chen is Ms. Liu Yingjie, with over 20 years experience. Trading of S-Enjoy Service Group shares remains suspended on the Hong Kong Stock Exchange since April 1, 2025 and will continue until further notice.