Chung Fu (1435) Fails to File 2025 Annual Financial Report On Time
Chung Fu (code: 1435) announced its inability to file its 2025 annual financial report on schedule because it could not obtain the audited financial statements from its affiliate, Fu Hsing Company. As a result, trading of the company's securities has been suspended. The chairman of Chung Fu has also been appointed as the chairman of Fu Hsing to reconstruct its financial information, complete the audit, and resubmit the report as soon as possible to protect shareholder interests.
📋 Article Processing Timeline
- 📰 Published: May 19, 2026 at 06:31
- 🔍 Collected: May 19, 2026 at 06:31 (0 min after Published)
- 🤖 AI Analyzed: May 19, 2026 at 06:36 (5 min after Collected)
Date of Announcement: May 19, 2026
Date of Occurrence: May 18, 2026
Company Code: 1435
Company Name: Chung Fu
Subject: The Company is unable to re-announce and file the fiscal year 114 (2025) financial report as scheduled.
Explanation:
1. Financial report not announced/filed by the deadline: Fiscal year 114 (2025) financial report.
2. Reason for the failure to announce/file by the deadline:
I. Before the Board of Directors could approve the financial report on March 31, 2026, our company was unable to obtain the legally compliant fiscal year 114 financial report from our investee company, Fu Hsing Company, which had been approved by its board and audited by certified public accountants. Consequently, our company's auditors lacked sufficient and appropriate audit evidence to judge the value of the investment accounted for by the equity method and other related investment income and losses, leading them to issue a qualified opinion in their audit report. As a result, our company's listed securities were designated for altered trading methods by the stock exchange.
II. Subsequently, on April 1, 9, 16, and 29, 2026, our company repeatedly sent letters urging Fu Hsing Company to provide its board-approved and CPA-audited financial report for fiscal year 114. Our chairman, in his capacity as a director of Fu Hsing, also requested on April 1 and April 9 that Fu Hsing's board convene to discuss the fiscal year 114 financials. However, as of May 18, 2026, no response has been received. This has left our company unable to provide sufficient and appropriate audit evidence for our auditors to re-audit the accounting items related to Fu Hsing Company in the fiscal year 114 financial statements and update their audit opinion. For this reason, the stock exchange has notified us of the suspension of trading of our listed securities.
III. After the trading suspension, a director of Fu Hsing, who was appointed to act as chairman, convened a board meeting on May 6, 2026, which was also attended by the supervisor. At this meeting, the board resolved to elect Fu Hsing director Mr. Chen Chien (who is also our company's chairman) as the new chairman of Fu Hsing. It was also resolved to hold an extraordinary shareholders' meeting on May 22, 2026, to remove and re-elect the supervisor and to appoint an accounting firm for auditing purposes. The new chairman will, in accordance with the board's resolution, appoint a specialist to apply for the change of registration and organize the extraordinary shareholders' meeting to elect a supervisor. Upon completion of registration, he will, as the registered responsible person of Fu Hsing, promptly confirm assets with financial institutions and investigate liabilities. Furthermore, the new chairman has already sent a letter to the former responsible person, Mr. Huang Li-chung, requesting necessary data for Fu Hsing's financial reports. He will also send a letter to Fu Hsing's previously appointed auditors to retrieve financial information and related vouchers to verify if previously obtained financial reports need correction. Once sufficient financial information is obtained and the financial statements are prepared, an auditing firm will be appointed to legally audit Fu Hsing's financials. Upon completion of the audit, a legally compliant financial report and the auditor's report will be provided to our company to carry out the re-announcement and filing procedures, effectively protecting the interests of our company and all shareholders.
IV. In addition, our company has applied to the competent authority for an extension of the filing deadline for the fiscal year 114 financial report and is awaiting notification. We will make a further announcement in accordance with the law upon receiving the notice.
3. Countermeasures: None.
4. Other matters to be specified: None.
Date of Occurrence: May 18, 2026
Company Code: 1435
Company Name: Chung Fu
Subject: The Company is unable to re-announce and file the fiscal year 114 (2025) financial report as scheduled.
Explanation:
1. Financial report not announced/filed by the deadline: Fiscal year 114 (2025) financial report.
2. Reason for the failure to announce/file by the deadline:
I. Before the Board of Directors could approve the financial report on March 31, 2026, our company was unable to obtain the legally compliant fiscal year 114 financial report from our investee company, Fu Hsing Company, which had been approved by its board and audited by certified public accountants. Consequently, our company's auditors lacked sufficient and appropriate audit evidence to judge the value of the investment accounted for by the equity method and other related investment income and losses, leading them to issue a qualified opinion in their audit report. As a result, our company's listed securities were designated for altered trading methods by the stock exchange.
II. Subsequently, on April 1, 9, 16, and 29, 2026, our company repeatedly sent letters urging Fu Hsing Company to provide its board-approved and CPA-audited financial report for fiscal year 114. Our chairman, in his capacity as a director of Fu Hsing, also requested on April 1 and April 9 that Fu Hsing's board convene to discuss the fiscal year 114 financials. However, as of May 18, 2026, no response has been received. This has left our company unable to provide sufficient and appropriate audit evidence for our auditors to re-audit the accounting items related to Fu Hsing Company in the fiscal year 114 financial statements and update their audit opinion. For this reason, the stock exchange has notified us of the suspension of trading of our listed securities.
III. After the trading suspension, a director of Fu Hsing, who was appointed to act as chairman, convened a board meeting on May 6, 2026, which was also attended by the supervisor. At this meeting, the board resolved to elect Fu Hsing director Mr. Chen Chien (who is also our company's chairman) as the new chairman of Fu Hsing. It was also resolved to hold an extraordinary shareholders' meeting on May 22, 2026, to remove and re-elect the supervisor and to appoint an accounting firm for auditing purposes. The new chairman will, in accordance with the board's resolution, appoint a specialist to apply for the change of registration and organize the extraordinary shareholders' meeting to elect a supervisor. Upon completion of registration, he will, as the registered responsible person of Fu Hsing, promptly confirm assets with financial institutions and investigate liabilities. Furthermore, the new chairman has already sent a letter to the former responsible person, Mr. Huang Li-chung, requesting necessary data for Fu Hsing's financial reports. He will also send a letter to Fu Hsing's previously appointed auditors to retrieve financial information and related vouchers to verify if previously obtained financial reports need correction. Once sufficient financial information is obtained and the financial statements are prepared, an auditing firm will be appointed to legally audit Fu Hsing's financials. Upon completion of the audit, a legally compliant financial report and the auditor's report will be provided to our company to carry out the re-announcement and filing procedures, effectively protecting the interests of our company and all shareholders.
IV. In addition, our company has applied to the competent authority for an extension of the filing deadline for the fiscal year 114 financial report and is awaiting notification. We will make a further announcement in accordance with the law upon receiving the notice.
3. Countermeasures: None.
4. Other matters to be specified: None.
FAQ
Why was Chung Fu's stock trading suspended?
Because the company could not submit its 2025 financial report on time due to not receiving necessary financial data from an affiliate.
When will this issue be resolved?
Resolution is expected once Chung Fu's management restructures the affiliate and completes its audited financial statements, but the specific timing is uncertain.
What is the impact on investors?
Investors cannot trade the stock during the suspension. The company's credit risk has increased, which may affect the stock price upon resumption of trading.