Flowing Cloud Technology Ltd — Audit Report / Information 2024

Jul 19, 2024

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6610)

CHANGE OF AUDITOR

This announcement is made by Flowing Cloud Technology Ltd 飛天雲動科技有限公司 (the “ Company ”) pursuant to Rule 13.51(4) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

RESIGNATION OF AUDITOR

The board (the “ Board ”) of directors (the “ Directors ”) of the Company announces that Deloitte Touche Tohmatsu (“ Deloitte ”) has resigned as the auditor of the Company with effect from July 19, 2024, as the Company and Deloitte could not reach a consensus on the auditor’s remuneration for the financial year ending December 31, 2024.

Deloitte has confirmed in writing that there are no matters in relation to its resignation that need to be brought to the attention of the shareholders of the Company (the “ Shareholders ”).

The audit committee of the Company (the “ Audit Committee ”), having discussed with Deloitte, is satisfied that the inability to reach consensus on the proposed audit fee with Deloitte is the only underlying reason leading to the resignation of Deloitte. The Board and the Audit Committee have confirmed that there is no disagreement between the Company and Deloitte, and there are no other matters in relation to the resignation of auditor that need to be brought to the attention of the Shareholders.

The Board would like to express its gratitude to Deloitte for its professional services and support in the past years.

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APPOINTMENT OF AUDITOR

The Board further announces that the Board has resolved, upon recommendation from the Audit Committee, to appoint Zhonghui ANDA CPA Limited (“ Zhonghui ANDA ”) as the new auditor of the Company with effect from July 19, 2024 to fill the casual vacancy following the resignation of Deloitte and to hold office until the conclusion of the next annual general meeting of the Company.

The Audit Committee has considered a number of factors when recommending Zhonghui ANDA as the auditor of the Company, including but not limited to (i) its competence and quality including audit experience, industry knowledge and technical competence; (ii) its service quality and commitment by its past services track records; (iii) its audit proposal; (iv) its independence and objectivity; (v) its market reputation; (vi) its resources and capabilities including size and structure of the proposed audit team; and (vii) the guidelines issued by the Accounting and Financial Reporting Council.

Based on the above, the Audit Committee has assessed and considered that Zhonghui ANDA is eligible and suitable to act as the new auditor of the Company. The Board and the Audit Committee are of the view that the change of auditor would not have any material impact on the Group and is in the interest of the Company and the Shareholders as a whole.

By Order of the Board Flowing Cloud Technology Ltd Wang Lei Chairman

Hong Kong, July 19, 2024

As at the date of this announcement, the Board comprises Mr. Wang Lei, Mr. Li Yanhao, Ms. Xu Bing and Mr. Li Yao as executive Directors and Mr. Jiang Yi, Mr. Tan Deqing and Ms. Wang Beili as independent nonexecutive Directors.

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