Arima Communications : Announcement of the Company's Unqualified Opinion by CPA & Independent Audit’ Report on Material Uncertainty Related to Going Concern for Q2 2022.

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Provided by: Arima Communications Corp.
SEQ_NO	9	Date of announcement	2022/08/09	Time of announcement	18:44:42
Subject	Announcement of the Company's Unqualified Opinion by CPA & Independent Audit' Report on Material Uncertainty Related to Going Concern for Q2 2022.
Date of events	2022/08/09	To which item it meets	paragraph 30
Statement	1.Date of occurrence of the event:2022/08/09 2.Full text of the CPA audit opinion: To the Board of Directors and Shareholders of Arima Communications Corp.: Introduction We have reviewed the accompanying consolidated balance sheets of Arima Communications Corp. and its subsidiaries as of June 30, 2022, the related consolidated statements of comprehensive income for the three months ended June 30, 2022 and for the six months ended June 30, 2022, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the"consolidated financial statements"). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 "Review of Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express anaudit opinion. Basis for Qualified Conclusion As disclosed in Note 4 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of June 30, 2022 combined total assets of these non-significant subsidiaries were NT$ 58,576 thousand, representing 6.34% of the consolidated total assets, and combined total liabilities of these subsidiaries were NT$ 11,478 thousand, representing 2.44% of the consolidated total liabilities; for the three months ended June 30, 2022 and for the six months ended June 30, 2022, the amounts of combined comprehensive income of these subsidiaries were NT$ (5,805) thousand and NT$ (6,667) thousand, respectively, representing (4.79)% and (15.00)% , respectively, of the consolidated total comprehensive income. As disclosed in Note 6、7 to the consolidated financial statements, the financial statements of some investee companies, which were accounted for under equity method included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of June 30, 2022 , the investment amounted to NT$396,188 thousand ; for the three months ended June 30, 2022 and for the six months ended June 30, 2022, the share of profit of the certain investee companies under equity method amounted to NT$8,718 thousand and NT$20,241 thousand. Qualified Conclusion Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the consolidated financial position of the Group as of June 30, 2022, and of its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2022 Note in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 "Interim Financial Reporting"endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Material Uncertainty Related to Going Concern As described in Note 12、4 to the consolidated financial statements, the net loss of the Group for the six months ended June 30, 2022 was NT$ 1,658,001 thousand, and the total liabilities exceeded the total assets by NT$ 52,499 thousand as of June 30, 2022, indicating that a material uncertainty exists that may cast significant doubt on the Arima Groups Communications Corp. and its subsidiaries's ability to continue as a going concern. Our review result is not modified in respect of this matter. Others The consolidated financial statement of Group for the second quarter of 2021 was reviewed by other auditors, and a qualified opinion and a review report on the material uncertainty related to continuing operation were issued on August 12, 2021. 3.Name of the accounting firm: SOLOMON & CO., CPAs 4.CPA name and auditor certificate No.1: Sung-Yu Liu,auditor certificate No.0960003779 5.CPA name and auditor certificate No.2: Zi-Yu Chen,auditor certificate No.0940112583 6.Date of audit (review) report:2022/08/09 7.Countermeasures:None 8.Any other matters that need to be specified:None