Zhongfu International Trading Halted April 29 Over Unfiled Annual Report

The Taiwan Stock Exchange has announced a trading suspension for Zhongfu International (1435), a veteran textile firm, effective April 29. This action stems from the company's failure to submit its 2025 annual financial report within the stipulated timeframe. The exchange cited Article 50 of its operational rules, which mandates such a suspension when a company defaults on its financial reporting obligations.

Zhongfu International's management has explained that the delay in submitting the report is primarily due to the inability to obtain the legally approved and audited financial statements from its investment company, Fuxing Investment. This lack of necessary documentation has prevented the company's auditors from forming a conclusive opinion, resulting in a qualified audit report. The company has stated its intention to continue pursuing Fuxing Investment for the required financial documents to complete its own audit.

This situation has drawn criticism from some Zhongfu shareholders, who point to the company's current management, which took over in 2022. They claim that despite repeated public statements about focusing on asset revitalization, the management has failed to dispose of relevant assets. Shareholders have frequently directed blame towards the founding Huang family for these persistent issues. They lament that had the capital been invested in TSMC (2330) instead, its value would have increased at least fourfold over the years, highlighting a significant missed opportunity and ongoing operational challenges within Zhongfu.