Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No.2026-7
ADAMALtd.
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
2026 financial statements and the annual internal control.
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
2026. The aggregate 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. Upon the subsequent authorization of the shareholders, the audit fee for
2026 will be negotiated and determined by the Company’s management and KPMG
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.
1.Institution Information
1.1Basic Information
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.
1.2 Investor Protection
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
