Fusen Pharmaceutical Company Limited announced a supplemental update on its auditor change, confirming the resignation of KPMG and the appointment of CCTH CPA Limited effective 24 December 2025.

Key chronology • July 2025: Fee negotiations with KPMG began; the firm signalled a fee increase. • 3 & 14 December 2025: KPMG verbally, then formally, quoted an audit fee of RMB4.50 million for the FY2025 audit, which the company declined. • 3–16 December 2025: Management solicited proposals from three audit firms, including KPMG, and forwarded them to the Audit Committee. • 16 December 2025: The Audit Committee’s chairman confirmed with KPMG that no issues other than fee disagreements prompted the resignation. • 24 December 2025: KPMG tendered its resignation; the Board approved CCTH as successor auditor and disclosed the change that day.

Audit fee comparison • KPMG proposed: RMB4.50 million. • CCTH contracted: HK$3.00 million. The Audit Committee attributed the gap mainly to differing staff allocation, senior-level involvement and internal review structures.

Reasons behind KPMG’s higher quote 1. Tighter professional-staff supply and higher personnel costs. 2. Heightened regulatory scrutiny of listed-issuer audits. 3. Added complexity from Fusen’s 2025 business developments, covering revenue recognition, trade-receivable assessments and the disposal of Henan Fusen Intelligent Energy Conservation Technology Company Limited.

CCTH audit plan highlights • Risk-based approach aligned with Hong Kong Standards on Auditing and Quality Management Standards. • Focus areas: revenue and trade receivables (including impairment), associate impairment testing, R&D expense recognition, consolidation and going-concern assessment. • Timetable: inventory and fixed-asset counts in late December 2025–early January 2026; fieldwork through late February 2026; completion by 31 March 2026. • Team: 11 members, led by an engagement partner, with dedicated engagement quality control and technical reviewers.

Audit Committee assessment The committee evaluated CCTH’s governance, independence, industry knowledge and resource capacity, concluding that the HK$3.00 million fee is commensurate with Fusen Pharmaceutical’s scale and complexity and will not compromise audit quality.

All other information from the 24 December 2025 announcement remains unchanged.