Kaihan appoints Progress Audit amid Nepal operations shift

Kaihan Co. (TSE:3133) announced on December 24, 2025, that Audit Firm Aria, its current temporary accounting auditor, has resigned effective today. Progress Audit Corporation has been appointed as the new temporary accounting auditor. This change, approved by Kaihan's Audit and Supervisory Committee, includes the resignation of the certified public accountants responsible for audit certifications under the Financial Instruments and Exchange Act and the appointment of new temporary auditors.

Progress Audit Corporation was selected due to its expertise, independence, professional ethics, quality control system, and audit fees, which align with Kaihan's business scale. The company also noted Progress Audit Corporation's Asian network would be beneficial for auditing its hydroelectric power generation business in Nepal. The change comes after Kaihan's decision to shift to a new audit system, recognizing the unique characteristics of its overseas operations following civil unrest in Nepal, which led to the temporary suspension of its hydroelectric power project.

Progress Audit Corporation, with multiple accountants experienced in overseas assignments, is deemed capable of conducting the overseas business audit appropriately. Audit Firm Aria has not expressed any particular opinion regarding its resignation.