Chung Fu's Stock Trading to Be Halted from May 20 Due to Financial Reporting Issues

Publication Date: 1150519 Spokesperson Date: 1150518 Spokesperson Time: 185523 Company Code: 1435 Company Name: Chung Fu Subject: The company received a notice from the Stock Exchange regarding the consolidated suspension of trading of its listed securities on the centralized securities exchange market and its date. Complies with Article: 1 Date of Occurrence: 1150518 Explanation: 1. Date of the Stock Exchange's disposition announcement: 115/05/18 2. The operating rules clause cited by the Stock Exchange and the reason for occurrence: The company was previously subject to circumstances under Article 50, Paragraph 1, Subparagraph 5 of the Operating Rules of the Taiwan Stock Exchange Corporation, and its listed securities were announced to be suspended from trading. Subsequently, as the company's Q1 115 financial report received a disclaimer of conclusion from its accountant, the Stock Exchange, in accordance with Article 50, Paragraph 1, Subparagraph 5 of the Operating Rules of the Taiwan Stock Exchange Corporation, announced a consolidated suspension of trading effective from May 20, 115. 3. Disposition result (please enter 'change of trading method', 'suspension of trading', or 'delisting'): suspension of trading 4. Start date of (consolidated) change of trading method/suspension of trading/delisting: 115/05/20 5. Response measures: I. The company previously failed to provide sufficient and appropriate audit evidence for the簽證accountant to re-audit and update the audit opinion on the accounting items of the 114 fiscal year financial statements related to the equity-method investee, Fu Hsing Company. The company sent several reminders on 115/04/01, 04/09, 04/16, and 4/29 urging Fu Hsing Company to provide its 114 fiscal year financial report, which had been approved by its board and audited by an accountant. The company's chairman, in his capacity as a director of Fu Hsing Company, also requested on 04/01 and 04/09 that Fu Hsing's board convene to discuss the 114 financial report, but no response was received by the deadline set by the competent authority. Consequently, the company was notified by the Stock Exchange to suspend the trading of its securities. II. After the trading of the company's stock was suspended, the director of Fu Hsing Company who was elected to act as chairman convened a board meeting on May 6, 115. The supervisor also attended. At this board meeting, it was resolved to elect Director Chen Chien (the company's chairman) as the chairman of Fu Hsing Company, and to convene an extraordinary shareholders' meeting on May 22, 115, to remove and re-elect the supervisor, and to appoint an accountant for auditing. The new chairman will, in accordance with the aforementioned board resolution of Fu Hsing Company, appoint a specialist to apply for registration changes and hold the extraordinary shareholders' meeting to elect a supervisor. After registration is completed, the new chairman will promptly confirm financial institution assets and investigate liabilities as the registered responsible person of Fu Hsing Company. Additionally, the new chairman has already sent a letter to the former responsible person, Mr. Huang Li-Chung, requesting the necessary data for Fu Hsing Company's financial reports, and will later send a letter to Fu Hsing Company's previously appointed accountant to retrieve financial information and related vouchers to check if the previously obtained financial reports of Fu Hsing Company need correction. After obtaining sufficient financial information and completing the financial reports, an auditing accountant will be appointed to legally audit Fu Hsing Company's financial reports. Upon completion of the audit, a legally compliant financial report and auditor's report will be provided to our company to carry out the re-announcement and filing procedures, in order to effectively protect the rights and interests of our company and all shareholders. 6. Other matters to be specified: None. 7. (Risk Warning) If the trading of listed securities remains suspended for a continuous period of six months and is not resumed, there is a risk that the securities will be delisted. Investors are reminded to be cautious about investment risks.