【Chung-Fu】Announcement: Change of Responsible Person at Equity-Method Investee Company, Chen Jian (Chairman of Our Company)
Chung-Fu's equity-method investee, Fuxing Investment Co., Ltd., has appointed Chung-Fu's chairman, Chen Jian, as its new chairman. This follows Chung-Fu's stock trading suspension due to Fuxing's failure to provide audited financial statements, a situation the new chairman aims to resolve by May 22, 2026.
📋 Article Processing Timeline
- 📰 Published: May 6, 2026 at 09:00
- 🔍 Collected: May 7, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: May 7, 2026 at 08:06 (6 min after Collected)
1. Date of occurrence of the event: May 6, 2026
2. Company name: Fuxing Investment Co., Ltd.
3. Relationship with the Company (please enter 'our company' or 'subsidiary'): Not applicable
4. Mutual shareholding ratio: Our company holds 49%
5. Reason for occurrence:
I. Our company was unable to obtain the legally compliant financial report of Fuxing Investment Co., Ltd. (hereinafter referred to as Fuxing Company), an equity-method investee, for the year 2025, approved by the board of directors and audited by a certified public accountant, before March 31, 2026. This led our company's certifying accountant to issue a qualified opinion report on the 2025 financial statements regarding Fuxing Company's accounting items, stating that sufficient and appropriate audit evidence had not yet been obtained. Consequently, our company's listed securities were designated as a changed trading method by the stock exchange.
II. For this reason, our company repeatedly sent letters to Fuxing Company on April 1, April 9, and April 16, 2026, urging them to provide their 2025 financial report approved by the board of directors and audited by a certified public accountant. Our company's chairman, Chen Jian, also sent letters on April 1 and April 9, 2026, in his capacity as a director of Fuxing Company, requesting Fuxing Company to convene a board meeting to discuss the 2025 financial report. However, as of April 27, 2026, no action had been taken. As a result, our company is still unable to provide sufficient and appropriate audit evidence for the certifying accountant to re-audit the accounting items related to Fuxing Company in the 2025 financial statements and update the audit opinion. Consequently, the stock exchange notified our company that trading in our listed securities would be suspended.
III. After our company's stock trading was suspended, a director nominated to act as interim chairman of Fuxing Company convened a board meeting on May 6, 2026, which was also attended by the supervisors. At this board meeting, it was resolved to elect Chen Jian (chairman of our company), a director of Fuxing Company, as the chairman of Fuxing Company. It was also resolved to convene an extraordinary general meeting of shareholders on May 22, 2026, to dismiss and re-elect supervisors, and to appoint a certified public accountant for auditing, among other matters. The new chairman will, in accordance with the resolution of Fuxing Company's board meeting today (the 6th), proceed with the extraordinary general meeting of shareholders to elect supervisors. After the supervisors take office, the change of registration will be applied for. Once the registration is completed, the new chairman will promptly, in his capacity as the registered responsible person of Fuxing Company, confirm the assets of financial institutions, investigate liabilities, obtain financial information and relevant vouchers from the former responsible person and accountants, and cross-check whether the financial reports need to be revised. Subsequently, a certified public accountant will be appointed to audit Fuxing Company's financial reports in accordance with the law. After the audit is completed, the legally compliant financial reports and the certified public accountant's audit report will be provided to our company to process the re-announcement and filing, in order to effectively safeguard the rights and interests of our company and all shareholders.
6. Countermeasures: None
7. Other matters that need to be explained (if the subject of the event or resolution is a public offering company or above, this material information also complies with Article 7, Paragraph 9 of the Enforcement Rules of the Securities Exchange Act, which states matters that have a significant impact on shareholders' equity or securities prices):
Upon completion of the aforementioned matters, an announcement will be made in accordance with the law.
2. Company name: Fuxing Investment Co., Ltd.
3. Relationship with the Company (please enter 'our company' or 'subsidiary'): Not applicable
4. Mutual shareholding ratio: Our company holds 49%
5. Reason for occurrence:
I. Our company was unable to obtain the legally compliant financial report of Fuxing Investment Co., Ltd. (hereinafter referred to as Fuxing Company), an equity-method investee, for the year 2025, approved by the board of directors and audited by a certified public accountant, before March 31, 2026. This led our company's certifying accountant to issue a qualified opinion report on the 2025 financial statements regarding Fuxing Company's accounting items, stating that sufficient and appropriate audit evidence had not yet been obtained. Consequently, our company's listed securities were designated as a changed trading method by the stock exchange.
II. For this reason, our company repeatedly sent letters to Fuxing Company on April 1, April 9, and April 16, 2026, urging them to provide their 2025 financial report approved by the board of directors and audited by a certified public accountant. Our company's chairman, Chen Jian, also sent letters on April 1 and April 9, 2026, in his capacity as a director of Fuxing Company, requesting Fuxing Company to convene a board meeting to discuss the 2025 financial report. However, as of April 27, 2026, no action had been taken. As a result, our company is still unable to provide sufficient and appropriate audit evidence for the certifying accountant to re-audit the accounting items related to Fuxing Company in the 2025 financial statements and update the audit opinion. Consequently, the stock exchange notified our company that trading in our listed securities would be suspended.
III. After our company's stock trading was suspended, a director nominated to act as interim chairman of Fuxing Company convened a board meeting on May 6, 2026, which was also attended by the supervisors. At this board meeting, it was resolved to elect Chen Jian (chairman of our company), a director of Fuxing Company, as the chairman of Fuxing Company. It was also resolved to convene an extraordinary general meeting of shareholders on May 22, 2026, to dismiss and re-elect supervisors, and to appoint a certified public accountant for auditing, among other matters. The new chairman will, in accordance with the resolution of Fuxing Company's board meeting today (the 6th), proceed with the extraordinary general meeting of shareholders to elect supervisors. After the supervisors take office, the change of registration will be applied for. Once the registration is completed, the new chairman will promptly, in his capacity as the registered responsible person of Fuxing Company, confirm the assets of financial institutions, investigate liabilities, obtain financial information and relevant vouchers from the former responsible person and accountants, and cross-check whether the financial reports need to be revised. Subsequently, a certified public accountant will be appointed to audit Fuxing Company's financial reports in accordance with the law. After the audit is completed, the legally compliant financial reports and the certified public accountant's audit report will be provided to our company to process the re-announcement and filing, in order to effectively safeguard the rights and interests of our company and all shareholders.
6. Countermeasures: None
7. Other matters that need to be explained (if the subject of the event or resolution is a public offering company or above, this material information also complies with Article 7, Paragraph 9 of the Enforcement Rules of the Securities Exchange Act, which states matters that have a significant impact on shareholders' equity or securities prices):
Upon completion of the aforementioned matters, an announcement will be made in accordance with the law.