Sheen Tai Holdings Group Company Limited has released a detailed supplemental announcement clarifying the circumstances behind its year-end auditor change. RSM resigned on 30 December 2025 after a protracted fee dispute triggered by Sheen Tai’s entry into Filecoin mining and related cloud-computing services, while HLB Hodgson Impey Cheng Limited (HLB) has been appointed as successor auditor with immediate effect.
The company’s expansion into cryptocurrency began with a HK$15.00 million hardware investment in April 2025 and the HK$16.50 million purchase of Filecoin by late June. RSM initially projected a FY2025 audit fee of HK$0.80 million but, following risk reassessment in mid-December, raised its quote to HK$1.30 million—comprising HK$0.20 million already paid for interim work and HK$1.10 million for the annual audit. The increase reflected heavy reliance on external specialists, including an estimated HK$0.30 million smart-contract review.
During 16-18 December, negotiations stalled as RSM indicated it would resign if fees were not accepted. In parallel, executive director Mr Dai Jizhou sought an alternative proposal; HLB submitted a HK$0.80 million bid with 1,224 budgeted hours and a cost structure centred on internal tax and valuation experts plus a lower-priced external IT specialist.
On 22 December, the Audit Committee evaluated HLB’s independence, industry expertise, and resource plan, concluding the firm could deliver a full-scope Hong Kong Standards on Auditing (HKSA) engagement without diminishing quality. A separate meeting with RSM on 23 December confirmed the resignation intention, and the Board formally approved the switch on 30 December 2025.
Fee analysis shows HLB’s quote is HK$0.30 million lower than RSM’s revised figure despite higher planned hours. Savings stem from reduced external-expert costs (HK$0.20 million vs HK$0.40 million), lower affiliate-firm charges in Nanjing (HK$60,000 vs HK$100,000), and the use of in-house valuation and tax teams. Both firms allocate roughly 50 % of budgeted fees to the cryptocurrency segment, but HLB’s structure yields a total engagement fee of HK$0.80 million.
HLB’s audit timetable begins in early January 2026 with risk assessment and IT walkthroughs, followed by substantive testing through February and completion by end-March 2026. Key risk areas identified include revenue recognition, management override of controls, and valuation of cryptocurrency assets.
The Audit Committee cited HLB’s track record—audits of six Hong Kong-listed cryptocurrency entities and longstanding experience in photovoltaic power generation—as evidence of capability. Governance reviews, independence confirmations, and AFRC inspection results showed no disciplinary issues affecting audit quality.
Sheen Tai affirms that the lowered fee will not compromise audit rigor, noting that HLB’s engagement team includes three leaders holding “Certified Cryptocurrency Auditor” credentials and will draw additional support from HLB Nanjing for on-site work related to the Jiangsu photovoltaic operations.