【Chung Fu】Company unable to re-announce and file its 2025 annual financial report on schedule
Chung Fu Co. announced its inability to re-announce and file its 2025 annual financial report on time because it could not obtain the compliant financial statements from its investee company, Fu Hsing Co. This has led to the suspension of trading of Chung Fu's stock. The issue stems from internal problems at Fu Hsing, which resulted in Chung Fu's auditors issuing a qualified opinion. A new chairman has been elected at Fu Hsing and is attempting to resolve the situation, but a timeline remains uncertain.
📋 Article Processing Timeline
- 📰 Published: May 18, 2026 at 09:00
- 🔍 Collected: May 19, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: May 19, 2026 at 08:08 (8 min after Collected)
1. Financial report year/quarter not announced/filed by the deadline: 2025 Annual Financial Report. 2. Reason for failure to announce/file by the deadline: I. The company was unable to obtain the legally compliant 2025 annual financial report of its investee, Fu Hsing Co., which was approved by its board and audited by a CPA, before its own board meeting on 2026/03/31 to approve its financial report. As a result, the company's auditors lacked sufficient and appropriate audit evidence to judge the amounts of equity-method investments and other related investment income/losses, and thus issued a qualified opinion audit report. Consequently, the company's listed securities were subjected to an altered trading method by the stock exchange. II. Subsequently, the company sent reminder letters on 2026/04/01, 04/09, 04/16, and 4/29, urging the equity-method investee, Fu Hsing Co., to provide its 2025 board-approved and CPA-audited financial report. The company's chairman also, in his capacity as a director of Fu Hsing, requested board meetings on 04/01 and 04/09 to discuss the 2025 financial report, but as of 2026/05/18, no response has been received. Therefore, the company is still unable to provide sufficient and appropriate audit evidence for its auditors to re-examine the accounting items related to Fu Hsing Co. in the 2025 financial statements and update the audit opinion. For this reason, the stock exchange has notified the company of the suspension of trading of its listed securities. III. After the suspension of trading, a director of Fu Hsing Co. acting as chairman convened a board meeting on 2026/05/06. The supervisor was also present. The board resolved to elect Fu Hsing director Chen Chien (Chung Fu's chairman) as the new chairman of Fu Hsing Co., and also resolved to convene an extraordinary shareholders' meeting on 2026/05/22 to dismiss and re-elect a supervisor, and to appoint a CPA for auditing. The new chairman will, in accordance with the Fu Hsing board's resolution, appoint a specialist to apply for a change of registration, and hold an EGM to elect a supervisor. After registration is complete, he will, as the registered responsible person of Fu Hsing, confirm assets with financial institutions and investigate liabilities. Additionally, the new chairman has sent a letter to the former responsible person, Mr. Huang Li-Chung, requesting necessary data for Fu Hsing's financial reports, and will later contact Fu Hsing's former CPA to retrieve financial information and related vouchers to verify if past financial reports need correction. Once sufficient financial information is obtained and the financial report is prepared and audited, the compliant report will be provided to Chung Fu for re-announcement and filing to protect the rights of the company and all its shareholders. IV. The company has also applied to the competent authority for an extension of the filing deadline for the 2025 annual financial report and will make a further announcement upon receiving notification. 3. Countermeasures: None. 4. Other matters to be specified: None.