1435 Chung-Fu: Company's Q1 2026 Financial Report Receives a Disclaimer of Opinion from Auditor
Chung-Fu (1435) received a 'disclaimer of opinion' from its auditor for its Q1 2026 financial report due to insufficient financial information from its subsidiary, Fu-Hsing Investment Co., Ltd.
📋 Article Processing Timeline
- 📰 Published: May 16, 2026 at 12:57
- 🔍 Collected: May 16, 2026 at 12:57 (0 min after Published)
- 🤖 AI Analyzed: May 16, 2026 at 13:07 (10 min after Collected)
Announcement Date: May 16, 2026
Issuing Date: May 15, 2026
Issuing Time: 16:52:46
Company Code: 1435
Company Name: Chung-Fu
Subject: The Company's Q1 2026 Financial Report Receives a Disclaimer of Opinion from Auditor
Applicable Clause: Article 30
Date of Occurrence: May 15, 2026
Explanation:
1. Date of occurrence: May 15, 2026
2. Full text of auditor's review opinion:
To Chung-Fu International Co., Ltd.:
Introduction
Regarding Chung-Fu International Co., Ltd.'s balance sheet as of March 31, 2026, and its comprehensive income statement, statement of changes in equity, and cash flow statement for the period from January 1 to March 31, 2026, and notes to the financial statements (including a summary of significant accounting policies), our firm is unable to express a conclusion on the financial report. Due to the significant and pervasive potential impact described in the basis for disclaimer of conclusion, our firm was unable to complete the review procedures to serve as a basis for expressing a review conclusion.
Regarding Chung-Fu International Co., Ltd.'s balance sheet as of March 31, 2025, and its comprehensive income statement, statement of changes in equity, and cash flow statement for the period from January 1 to March 31, 2025, and notes to the financial statements (including a summary of significant accounting policies), our firm has completed the review. The preparation of financial statements that present fairly in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" recognized and issued by the Financial Supervisory Commission is the responsibility of management. Our responsibility is to express a conclusion on the financial statements based on our review.
Scope
Except for what is stated in the basis for disclaimer of conclusion and qualified conclusion for Q1 2026 and 2025, our firm performed the review in accordance with Review Standard 2410 "Review of Financial Statements." Procedures performed during a review of financial statements include inquiries (primarily to personnel responsible for financial and accounting matters), analytical procedures, and other review procedures. The scope of a review is substantially less than the scope of an audit, and therefore our firm may not become aware of all significant matters that might be identified through an audit. Accordingly, we do not express an audit opinion.
Basis for Disclaimer of Conclusion for Q1 2026
As described in Note 6(7) to the financial statements, Chung-Fu International Co., Ltd.'s investment in Fu-Hsing Investment Co., Ltd. accounted for under the equity method amounted to NTD 170,654 thousand as of March 31, 2026, and its share of other comprehensive income of associates and joint ventures accounted for under the equity method for the period from January 1 to March 31, 2026, was NTD 0 thousand. Because our firm was unable to access the financial information of Fu-Hsing Investment Co., Ltd. for Q1 2026, our firm was unable to perform review procedures and determine whether necessary adjustments should be made to these amounts, the statement of changes in equity, and the cash flow statement.
Basis for Qualified Conclusion for Q1 2025
As described in Note 6(7) to the financial statements, Chung-Fu International Co., Ltd.'s investment accounted for under the equity method amounted to NTD 283,500 thousand as of March 31, 2025, and its share of profit (loss) of associates and joint ventures accounted for under the equity method for the period from January 1 to March 31, 2025, was NTD (1,561) thousand, which was based on the unreviewed financial statements of the investee company for the same period. In addition, the relevant information of the aforementioned investee company disclosed in Note 13 to the financial statements was also not reviewed by the auditor.
Disclaimer of Conclusion and Qualified Conclusion
Due to the materiality of the matters described in the basis for disclaimer of conclusion for Q1 2026, our firm was unable to obtain sufficient and appropriate review evidence. Therefore, our firm is unable to express a conclusion on Chung-Fu International Co., Ltd.'s Q1 2026 financial report.
Based on our firm's review results, except for the possible adjustments to the Q1 2025 financial report if the financial statements and relevant information of the investee company accounted for under the equity method described in the basis for qualified conclusion for Q1 2025 had been reviewed by an auditor, we did not find that the aforementioned financial statements were not prepared in all material respects in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" recognized and issued by the Financial Supervisory Commission, leading to an inability to present fairly Chung-Fu International Co., Ltd.'s financial position as of March 31, 2025, and its financial performance and cash flows for the period from January 1 to March 31, 2025.
3. Name of accounting firm: Kuan-Heng CPA Firm
4. Name and approval number of certifying CPA 1: Chang Chin-Te / (079) Tai-Tsai-Cheng (1) No. 00351 letter
5. Name and approval number of certifying CPA 2: Chu Shu-Mei / FSC Cert. No. 8492 letter
6. Date of CPA's audit (review) report: May 15, 2026
7. Countermeasures:
The company was unable to obtain the legally compliant financial statements of the investee company, Fu-Hsing Investment Co., Ltd., which had been approved by its board of directors and audited by a certifying CPA for 2025, before the board of directors approved the Q1 2026 financial report on May 15, 2026. This led to the company's certifying CPA lacking sufficient and appropriate audit evidence and being unable to make a judgment on the amounts of investments accounted for under the equity method and other related investment income/loss, and thus issued a disclaimer of opinion. The company will continue to seek the legally compliant financial statements of Fu-Hsing Investment Co., Ltd. for 2025, approved by its board of directors and audited by a certifying CPA. Upon obtaining them, the company will request the certifying CPA to perform an audit and provide an updated audit opinion.
8. Other matters that need to be specified: None
Issuing Date: May 15, 2026
Issuing Time: 16:52:46
Company Code: 1435
Company Name: Chung-Fu
Subject: The Company's Q1 2026 Financial Report Receives a Disclaimer of Opinion from Auditor
Applicable Clause: Article 30
Date of Occurrence: May 15, 2026
Explanation:
1. Date of occurrence: May 15, 2026
2. Full text of auditor's review opinion:
To Chung-Fu International Co., Ltd.:
Introduction
Regarding Chung-Fu International Co., Ltd.'s balance sheet as of March 31, 2026, and its comprehensive income statement, statement of changes in equity, and cash flow statement for the period from January 1 to March 31, 2026, and notes to the financial statements (including a summary of significant accounting policies), our firm is unable to express a conclusion on the financial report. Due to the significant and pervasive potential impact described in the basis for disclaimer of conclusion, our firm was unable to complete the review procedures to serve as a basis for expressing a review conclusion.
Regarding Chung-Fu International Co., Ltd.'s balance sheet as of March 31, 2025, and its comprehensive income statement, statement of changes in equity, and cash flow statement for the period from January 1 to March 31, 2025, and notes to the financial statements (including a summary of significant accounting policies), our firm has completed the review. The preparation of financial statements that present fairly in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" recognized and issued by the Financial Supervisory Commission is the responsibility of management. Our responsibility is to express a conclusion on the financial statements based on our review.
Scope
Except for what is stated in the basis for disclaimer of conclusion and qualified conclusion for Q1 2026 and 2025, our firm performed the review in accordance with Review Standard 2410 "Review of Financial Statements." Procedures performed during a review of financial statements include inquiries (primarily to personnel responsible for financial and accounting matters), analytical procedures, and other review procedures. The scope of a review is substantially less than the scope of an audit, and therefore our firm may not become aware of all significant matters that might be identified through an audit. Accordingly, we do not express an audit opinion.
Basis for Disclaimer of Conclusion for Q1 2026
As described in Note 6(7) to the financial statements, Chung-Fu International Co., Ltd.'s investment in Fu-Hsing Investment Co., Ltd. accounted for under the equity method amounted to NTD 170,654 thousand as of March 31, 2026, and its share of other comprehensive income of associates and joint ventures accounted for under the equity method for the period from January 1 to March 31, 2026, was NTD 0 thousand. Because our firm was unable to access the financial information of Fu-Hsing Investment Co., Ltd. for Q1 2026, our firm was unable to perform review procedures and determine whether necessary adjustments should be made to these amounts, the statement of changes in equity, and the cash flow statement.
Basis for Qualified Conclusion for Q1 2025
As described in Note 6(7) to the financial statements, Chung-Fu International Co., Ltd.'s investment accounted for under the equity method amounted to NTD 283,500 thousand as of March 31, 2025, and its share of profit (loss) of associates and joint ventures accounted for under the equity method for the period from January 1 to March 31, 2025, was NTD (1,561) thousand, which was based on the unreviewed financial statements of the investee company for the same period. In addition, the relevant information of the aforementioned investee company disclosed in Note 13 to the financial statements was also not reviewed by the auditor.
Disclaimer of Conclusion and Qualified Conclusion
Due to the materiality of the matters described in the basis for disclaimer of conclusion for Q1 2026, our firm was unable to obtain sufficient and appropriate review evidence. Therefore, our firm is unable to express a conclusion on Chung-Fu International Co., Ltd.'s Q1 2026 financial report.
Based on our firm's review results, except for the possible adjustments to the Q1 2025 financial report if the financial statements and relevant information of the investee company accounted for under the equity method described in the basis for qualified conclusion for Q1 2025 had been reviewed by an auditor, we did not find that the aforementioned financial statements were not prepared in all material respects in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" recognized and issued by the Financial Supervisory Commission, leading to an inability to present fairly Chung-Fu International Co., Ltd.'s financial position as of March 31, 2025, and its financial performance and cash flows for the period from January 1 to March 31, 2025.
3. Name of accounting firm: Kuan-Heng CPA Firm
4. Name and approval number of certifying CPA 1: Chang Chin-Te / (079) Tai-Tsai-Cheng (1) No. 00351 letter
5. Name and approval number of certifying CPA 2: Chu Shu-Mei / FSC Cert. No. 8492 letter
6. Date of CPA's audit (review) report: May 15, 2026
7. Countermeasures:
The company was unable to obtain the legally compliant financial statements of the investee company, Fu-Hsing Investment Co., Ltd., which had been approved by its board of directors and audited by a certifying CPA for 2025, before the board of directors approved the Q1 2026 financial report on May 15, 2026. This led to the company's certifying CPA lacking sufficient and appropriate audit evidence and being unable to make a judgment on the amounts of investments accounted for under the equity method and other related investment income/loss, and thus issued a disclaimer of opinion. The company will continue to seek the legally compliant financial statements of Fu-Hsing Investment Co., Ltd. for 2025, approved by its board of directors and audited by a certifying CPA. Upon obtaining them, the company will request the certifying CPA to perform an audit and provide an updated audit opinion.
8. Other matters that need to be specified: None