Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No.2026-7
ADAMA Ltd.
Announcement on the Engagement of an
Accounting Firm
The Company and all members of its board of directors hereby confirm that all
information disclosed herein is true, accurate and complete with no false or
misleading statement or material omission.
I. Explanation on the Proposed Appointment of the Company’s Auditor
ADAMA Ltd. (hereinafter referred to as: the “Company”) intends to renew the
appointment of KPMG Huazhen Certified Public Accountants LLP (hereinafter
referred to as: “KPMG Huazhen” or the “Auditor”) as the Company’s auditor for its
KPMG Huazhen is an accounting firm qualified to engage in securities and
futures-related businesses. It possesses sufficient professional competence and investor
protection capabilities, and ensures that it will always maintain independence, in
accordance with applicable laws and regulations, when providing audit services to the
Company. In the course of providing audit services, KPMG Huazhen has diligently
performed its duties, adhered to the practice principles of independence, objectivity and
impartiality, and completed the engagements assigned by the Company. To maintain
continuity in the Company’s audit work, the Company proposes to reappoint KPMG
Huazhen as the auditor for the Company’s financial statements and internal control for
million was for the financial statements audit and RMB 0.9 million was for the internal
control audit. Upon the subsequent authorization of the shareholders, the audit fee for
Huazhen based on market conditions, the size of the Company’s operations, and the
actual audit scope and workload.
This reappointment complies with the “Measures for the Administration of the
Selection and Engagement of Accounting Firms by State-owned Enterprises and Listed
Companies (Cai Kuai [2023] No. 4) jointly promulgated by the Ministry of Finance, the
State-owned Assets Supervision and Administration Commission of the State Council,
and the China Securities Regulatory Commission.
II. Introduction of the Proposed Auditor
KPMG Huazhen presented the following information to the Company.
KPMG Huazhen was established on 18 August 1992 in Beijing. On 5 July 2012, it was
approved by the Ministry of Finance and other authorities to convert its business
property into a limited liability partnership. The business license was obtained on 10
July 2012 and the partnership business officially started on 1 August 2012.
The headquarter office of KPMG Huazhen is located in Beijing, with registered address
at 8th floor, East Building 2, Oriental Plaza, No.1 East Chang'an Avenue, Dongcheng
District, Beijing.
The chief partner of KPMG Huazhen is Mr. Zou Jun, who is of Chinese nationality and
holds the qualification of a Chinese Certified Public Accountant.
As of the end of 2025, KPMG Huazhen had 247 partners, and 1,412 CPAs among
whom more than 330 CPAs have signed audit report for securities services business.
The total revenue from audit business of KPMG Huazhen in 2024 exceeded RMB 4.1
billion, of which revenue from the audit business exceeded RMB 4 billion (including
revenue from domestic statutory securities service exceeding RMB 900 million,
revenue from other securities services of approximately RMB 1 billion, with the total
revenue from securities service exceeding RMB 1.9 billion).
KPMG Huazhen provided 2024 annual audit services to 127 listed companies, with a
total audit service fee of RMB 682 million. The main industries of the listed companies
that KPMG Huazhen served are manufacturing, finance, transportation, warehousing,
storage and postal, telecommunication, software and information technology, real
estate, electricity, heat, gas and water production and supply, mining, wholesale and
retail, agriculture, forestry, animal husbandry, fisheries, accommodation and catering,
scientific research and technology services, health and social work, water conservancy,
environmental and public facility management, cultural, sports and entertainment as
well as leasing and business services industries. Among the listed companies KPMG
Huazhen served for the 2024 annual audit, there are 59 listed companies in the same
industry as the Company.
The aggregate limit of indemnity under the professional liability insurance purchased
by KPMG Huazhen, together with the accumulated professional risk reserve provision,
exceeds RMB 200 million, which is in compliance with relevant regulations. In the past
three years, with respect to civil lawsuits related to its professional practice, KPMG
Huazhen has borne civil liability in bond-related civil litigation cases that were
concluded during this period. In the final instance judgments, KPMG Huazhen was
held liable for compensation at a ratio of 2%–3% (approximately RMB 4.6 million),
and the payment has been fully settled.
In the past three years, neither KPMG Huazhen nor its practitioners have been subject
to any criminal penalties, administrative penalties, or self-regulatory measures or
disciplinary actions imposed by stock exchanges in connection with their professional
practice. KPMG Huazhen and four of its practitioners were once subject to an
administrative regulatory measure in the form of a warning letter issued by a local
office of the CSRC, and two practitioners were once subject to a self-regulatory
measure imposed by an industry association. Pursuant to the relevant laws and
regulations, the foregoing matters do not affect KPMG Huazhen’s acceptance or
performance of securities service business or other businesses.
The basic information of the engagement partner, signing certified public accountant,
and engagement quality control reviewer of KPMG Huazhen responsible for the
Company’s audit engagement are as follows:
Engagement partner Ms. Wang Jia obtained her Chinese certified public accountant
qualification in 2008. She has been practicing with KPMG Huazhen since 2004 and has
been engaged in audits of listed companies since 2004. She has been providing audit
services to the Company since 2025. Ms. Wang has not signed or reviewed any audit
reports of listed companies in the past three years.
Signing certified public accountant Ms. Wang Shan obtained her Chinese certified
public accountant qualification in 2018. She has been practicing with KPMG Huazhen
since 2008 and has been engaged in audits of listed companies since 2008. She has been
providing audit services to the Company since 2025. Ms. Wang has signed or reviewed
two audit reports of listed companies in the past three years.
Engagement quality control reviewer Ms. Chen Yuhong obtained her Chinese certified
public accountant qualification in 1994. She has been practicing with KPMG Huazhen
since 1992 and has been engaged in audits of listed companies since 1994. She has been
providing audit services to the Company since 2025. Ms. Chen has signed or reviewed
four audit reports of listed companies in the past three years.
As presented to the Company by the Auditor, none of the above-mentioned engagement
partner, signing certified public accountant, or engagement quality control reviewer of
KPMG Huazhen has been subject to any criminal penalties, administrative penalties,
administrative regulatory measures, self-regulatory measures, or disciplinary sanctions
in connection with their professional practice in the past three years.
KPMG Huazhen and abovementioned engagement partner, signing certified public
accountants, and engagement quality control reviewer have maintained their
independence in accordance with the requirements of the Code of Professional Ethics
and the independence standards.
The audit service fees of KPMG Huazhen are determined based on factors such as the
level of responsibilities involved, complexity of the engagement, the work
requirements, the working conditions and hours required, and the professional
knowledge and experience contributed by personnel of various ranks participating in
the engagement. The audit fee for 2025 was RMB 3.15 million, of which RMB 2.25
million was for the financial statements audit and RMB 0.9 million was for the internal
control audit. The audit fee for 2026 will be submitted to the general meeting of
shareholders to authorize the Company’s management to negotiate and determine with
KPMG Huazhen in light of market conditions, the size of the Company’s operations,
and the actual audit scope and workload.
III. Procedures for the Proposed Reappointment of the Auditor
professional qualifications, business capabilities, independence and investor protection
capability, and upon verification, the Audit Committee of the Board of Directors of the
Company unanimously believes that KPMG Huazhen meets the qualification
requirements to serve the Company and is able to effectively perform its duties as the
auditor of the Company. The Audit Committee agrees to reappoint KPMG Huazhen as
the Company’s auditor for its 2026 financial statements and internal control, and also
agrees to submit this proposal to the Board of Directors of the Company for approval.
March 26, 2026 approved the proposal of “Reappointment of the Company’s Auditor
for the Audit of the Financial Statements and Internal Control for 2026”. This proposal
was passed with 7 affirmative votes, 0 negative votes and 0 abstentions. The Board of
Directors of the Company agreed to reappoint KPMG Huazhen as the auditor for the
Company’s 2026 financial statements and internal control.
meeting for approval, and shall take effect from the date of approval by the
shareholders' meeting of the Company.
IV. Documents available for reference
information and contact details of its principal person in charge and the regulatory
business contact person, and the identification documents, practicing certificates
and contact details of the signing certified public accountants proposed to be
responsible for the specific audit work
It is hereby announced.
Board of Directors of ADAMA Ltd.
March 28, 2026
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