1806 Champion Building Materials: Accountants Issue Qualified Opinion on Q2 2026 Financial Report

Release Date: August 15, 115 Statement Date: August 14, 115 Statement Time: 16:36:13 Company Code: 1806 Company Name: Champion Building Materials Co., Ltd. Subject: Announcement of Qualified Opinion by Accountants on the Company's 115 Q2 Financial Statements Applicable Clause: Clause 30 Factual Date: August 14, 115

Explanation: 1. Factual Date: 115/08/14

2. Full Text of Auditor's Review Opinion:

Accountants' Review Report

To the Board of Directors of Champion Building Materials Co., Ltd.:

Introduction

The consolidated balance sheets of Champion Building Materials Co., Ltd. and its subsidiaries as of June 30, 115 and 114 (as restated), and the consolidated statements of comprehensive income for the periods from April 1 to June 30, 115 and 114, and from January 1 to June 30, 115 and 114 (as restated), the consolidated statements of changes in equity and consolidated cash flow statements for the period from January 1 to June 30, 115 and 114 (as restated), along with the notes to the consolidated financial statements (including summary of significant accounting policies), have been reviewed by our firm. The preparation of consolidated financial statements that fairly present the financial position in accordance with the 'Securities Issuers Financial Reporting Standards' and the International Accounting Standard No. 34 'Interim Financial Reporting' recognized and enforced by the Financial Supervisory Commission is the responsibility of management. Our responsibility is to express a conclusion on the consolidated financial statements based on our review.

Scope

Except as described in the 'Basis for Qualified Conclusion' section, we conducted our review in accordance with Review Standard No. 2410, 'Review of Financial Statements.' Procedures performed during the review of the consolidated financial statements include inquiries (primarily of personnel responsible for financial and accounting matters), analytical procedures, and other review procedures. The scope of a review is substantially less than that of an audit, and consequently, we may not become aware of all material matters that might be identified through an audit. Therefore, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 4(2) to the consolidated financial statements, certain non-material subsidiaries included in the above consolidated financial statements were consolidated based on financial statements for the same periods that had not been reviewed by accountants. As of June 30, 115 and 114, the total assets of these subsidiaries were NT$500,333 thousand and NT$327,499 thousand, representing 6% and 4% of consolidated total assets, respectively. Total liabilities were NT$130,788 thousand and NT$67,998 thousand, representing 5% and 2% of consolidated total liabilities, respectively. The comprehensive income for the periods from April 1 to June 30, 115 and 114, and from January 1 to June 30, 115 and 114 (as restated), were NT$604 thousand, NT$7,244 thousand, (NT$7,550) thousand, and NT$12,278 thousand, representing 5%, (9)%, 243%, and 5% of consolidated comprehensive income, respectively.

As disclosed in Note 6(7), Champion Building Materials Co., Ltd. and its subsidiaries did not obtain the latest financial statements of Haiou Champion Limited, an associate accounted for using the equity method under IAS 28, and therefore could not properly recognize and measure the equity-method investment or the share of profit or loss of the equity-method associates and joint ventures for the period from April 1 to June 30, 115. The carrying amount of the equity-method investment as of June 30, 115, was NT$364,721 thousand.

In addition, as stated in Note 6(7), the equity-method investments of Champion Building Materials Co., Ltd. and its subsidiaries as of June 30, 115 and 114 (as restated) were NT$67,865 thousand and NT$400,948 thousand, respectively, and the shares of profit or loss of equity-method associates and joint ventures for the periods from April 1 to June 30, 115 and 114, and from January 1 to June 30, 115 and 114 (as restated), were NT$0 thousand, NT$3,766 thousand, (NT$2,749) thousand, and NT$818 thousand, respectively. These amounts were based on financial statements of the investees for the same periods that had not been reviewed by accountants.

Qualified Conclusion

Based on our review, except for the potential adjustments that might arise if the latest financial statements of the aforementioned investees were obtained or reviewed by accountants, we found no material misstatements indicating that the consolidated financial statements were not prepared in all material respects in accordance with the 'Securities Issuers Financial Reporting Standards' and the International Accounting Standard No. 34 'Interim Financial Reporting' recognized and enforced by the Financial Supervisory Commission, resulting in a failure to fairly present the consolidated financial position of Champion Building Materials Co., Ltd. and its subsidiaries as of June 30, 115 and 114 (as restated), the consolidated financial performance for the periods from April 1 to June 30, 115 and 114, and from January 1 to June 30, 115 and 114 (as restated), and the consolidated cash flows for the period from January 1 to June 30, 115 and 114 (as restated).

Emphasis of Matter

As disclosed in Note 6(7), the investment in Haiou Champion Limited was previously classified as a non-current asset held for sale under IFRS 5. However, as it no longer met the criteria for such classification, the company has reclassified it to be accounted for under the equity method from the original classification date, and has retrospectively adjusted the consolidated balance sheets as of June 30, 114 and December 31, 114, and the consolidated statements of comprehensive income, changes in equity, and cash flows for the period from January 1 to June 30, 114. Our review conclusion has not been modified due to this matter.

3. Name of Accounting Firm: KPMG Taiwan

4. Name of Signing Accountant and Approval Number 1: Chen Tsung-Che, FSC Audit No. 1000011652

5. Name of Signing Accountant and Approval Number 2: Chi Shih-Chin, FSC Audit No. 1020000737

6. Accountant's Review Report Date: August 14, 115

7. Response Measures: Due to the delayed receipt of financial data from the investee company Haiou Champion Limited, the consolidated financial statements could not properly recognize and measure equity-method investments and the share of profit or loss of equity-method associates and joint ventures in accordance with IAS 28, resulting in a qualified opinion from the accountants that is not fully approved by the FSC.

The company has formally requested Haiou Champion Limited, which responded on August 6, 115, that it will provide the Q2 2026 operational and financial data on August 26, 115. Upon receipt of the data, the company will immediately provide it to the accountants for review and request an updated review opinion on the Q2 115 financial report.

8. Other Matters to be Disclosed: None.