Announcement of the CPA's 2024Q4 audit reportwith Material Uncertainty Related to Continuity
1.Date of occurrence of the event:2025/03/06
2.Full text of the CPA audit opinion:
The Board of Directors and Shareholders
Les Enphants Co., Ltd.
Opinion
We have audited the accompanying consolidated financial statements of
Les Enphants Co., Ltd. and its subsidiaries (collectively referred
to as the “Group”), which comprise the consolidated balance sheets
as of December 31, 2024 and 2023, and the consolidated statements of
comprehensive income, changes in equity and cash flows for the years
then ended, and notes to the consolidated financial statements,
including material accounting policy information (collectively
referred to as the “consolidated financial statements”).
In our opinion, the accompanying consolidated financial statements
present fairly, in all material respects, the consolidated financial
position of the Group as of December 31, 2024 and 2023, and its
consolidated financial performance and its consolidated cash
flows for the years then ended in accordance with the
Regulations Governing the Preparation of Financial Reports by
Securities Issuers, and International Financial Reporting
Standards (IFRS), International Accounting Standards (IAS),
IFRIC Interpretations (IFRIC), and SIC Interpretations
(SIC) endorsed and issued into effect by the Financial
Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audits in accordance with the Regulations
Governing Financial Statement Audit and Attestation Engagements
of Certified Public Accountants and the Standards on Auditing
of the Republic of China. Our responsibilities under those
standards are further described in the Auditors’
Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are
independent of the Group in accordance with The Norm of
Professional Ethics for Certified Public Accountant of
the Republic of China, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinion.
Material Uncertainty Related to Going Concern
As described in Note 1 to the consolidated financial
statements, the accumulated deficit of the Group for the
year ended December 31, 2024 was NT$566,976 thousand,
reaching half of the paid-in capital. Such amounts indicate
that a material uncertainty exists that may cast significant
doubt on the Group’s ability to continue as a going concern.
Management’s plans regarding this matter are also described
in Note 1 to the consolidated financial statements.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the consolidated financial statements for the
year ended December 31, 2024. These matters were
addressed in the context of our audit of the
consolidated financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.In addition to the matter
described in the Material Uncertainty Related to Going
Concern section, we have determined the matters
described below as the
key audit matters to be communicated in our report.
Valuation of Inventories
Inventories are stated at the lower of cost or net
realizable value. The net realizable value was based
on judgments and accounting estimates made by
management; therefore, we identified the valuation of
inventories as a key audit matter in our audit for
the year ended December 31, 2024.
The main audit procedures that we performed in respect of
the valuation of inventories included obtaining
the estimated data of inventories stated at the
lower of cost or net realizable value by management;
sampling recent sales data to evaluate the
reasonableness of the net realizable value.
Other Matter
We have also audited the parent company only financial
statements of Les Enphants Co., Ltd. as of and for
the years ended December 31, 2024 and 2023 on
which we have issued unmodified opinion with material
uncertainty related to going concern paragraph and
an unmodified opinion.
Responsibilities of Management and Those Charged with
Governance for 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 Financial Reporting Standards (IFRS),
International Accounting Standards (IAS),
IFRIC Interpretations (IFRIC), and SIC Interpretations
(SIC) endorsed and issued into effect by the Financial
Supervisory Commission of the Republic of China,
and for such internal control as management
determines is necessary to enable the preparation
of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements,
management is responsible for assessing the Group’
s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using
the going concern basis of accounting unless
management either intends to liquidate the Group or
to cease operations, or has no realistic alternative but
to do so.
Those charged with governance, including the supervisors,
are responsible for overseeing the Group’s financial
reporting process.
Auditors’ Responsibilities for the Audit of the
Consolidated Financial Statements
Our objectives are to obtain reasonable assurance
about whether the consolidated financial statements
as a whole are free from material
misstatement, whether due to fraud or error, and
to issue an auditors’ report that includes
our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit
conducted in accordance with the Standards on
Auditing of the Republic of China will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of
these consolidated financial statements.
As part of an audit in accordance with the Standards
on Auditing of the Republic of China, we
exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
1.Identify and assess the risks of material
misstatement of the consolidated financial
statements, whether due to fraud or error,
design and perform audit procedures responsive
to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the
override of internal control.
2.Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
3.Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by management.
4.Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on
the Group’s ability to continue as a going concern.If
we conclude that a material uncertainty exists, we are
required to draw attention in our auditors’report
to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our
auditors’report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
5.Evaluate the overall presentation, structure and content
of the consolidated financial statements, including
the disclosures, and whether the consolidated
financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
6.Obtain sufficient and appropriate audit evidence regarding
the financial information of entities or business
activities within the Group to express an opinion on the
consolidated financial statements. We are responsible for the
direction, supervision, and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the
audit and significant audit findings, including
any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the consolidated
financial statements for the year ended December 31,
2024 and are therefore the key audit matters.
We describe these matters in our auditors’report unless law
or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our
report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest
benefits of such communication.
The engagement partners on the audits resulting in this
independent auditors’report are Shu-chuan Yeh and Ya-ling Wong.
3.Name of the accounting firm:Deloitte & Touche
4.CPA name and auditor certificate No.1:Shu-chuan Yeh NO.0990031652
5.CPA name and auditor certificate No.2:Ya-ling Wong NO.1020025513
6.Date of audit (review) report:2025/03/06
7.Countermeasures:NA
8.Any other matters that need to be specified:NA