China Zhonghua Geotechnical Engineering Group to change auditors, revamp governance

China Zhonghua Geotechnical Engineering Group plans to change its accounting firm from Grant Thornton Certified Public Accountants to Tianzhi International Certified Public Accountants for the 2025 financial year. The company cited the need for objective and independent audit services after 14 years with the previous firm. The total audit fee for 2025, including internal control audits, will be RMB 2.30 million.

Concurrently, the company is proposing to abolish its supervisory board, with its functions to be assumed by the Board of Directors' Audit Committee. This change necessitates revisions to the company's Articles of Association and associated rules, including the "Shareholder Meeting Rules" and "Board Meeting Rules," in accordance with the new Company Law.

These proposals, including the change of auditors, will be submitted for approval at the Sixth Extraordinary General Meeting of Shareholders on December 29, 2025. This meeting will also cover the re-election of non-independent directors and the 2024 director performance incentives.