RAFFLESINTERIOR (01376.HK): Auditor Resigns; Shares Remain Suspended Pending Resumption Guidance

NewTimeSpace News: On 27 September 2026, Raffles Interior Limited (stock code: 01376) announced that it received a resignation letter from Mazars CPA Limited (大华马施云会计师事务所有限公司) on 25 September 2026, with the resignation as auditor effective immediately from that date; the firm confirmed its decision was based on unresolved audit issues and its inability to obtain sufficient appropriate audit evidence for the 2025 audit from the former board and former directors, not on fees or the audit timetable.

The unresolved audit matters include the completeness of undisclosed liabilities, guarantees, indemnities, commitments and contingent liabilities arising from agreements, documents or resolutions executed or signed by the controlling shareholder and former chairman and executive director Mr. Zheng Nenghuan on behalf of the Company; the completeness of related parties and connected transactions involving parties controlled, beneficially owned or significantly influenced by Mr. Zheng and Hanchen Holdings (瀚辰控股); the legal consequences and financial impact of the failed sale and purchase agreement; the fair value measurement of convertible bonds and recoverable amounts of assets; and the appropriateness of the going-concern basis. The firm considered the explanations and information provided insufficient and satisfactory, constituting a limitation on the scope of the 2025 audit.

The board expressed regret and will use its best efforts to identify and appoint a suitable replacement auditor as soon as practicable to complete the remaining audit procedures and publish the outstanding financial results. It noted that the firm's assertion that the removal of former directors may impair the audit is inconsistent with the clear views in the Cayman Islands Court of Appeal's judgment of 17 September, and that such unilateral remarks at the time of resignation are not endorsed by the board. On 24 September the board resolved to dissolve the former independent committee, establish a new independent committee, and terminate the engagement of the existing forensic investigator.

The Company's shares have been suspended from 9:00 a.m. on 1 April 2026 and will remain suspended until further notice pending fulfilment of the resumption guidance issued by the Stock Exchange on 22 May 2026; the Company is identifying a replacement auditor and will issue a further announcement on the new appointment in due course.

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