2016.08 CENT WEALTH FIN

Company Name: Central Wealth Financial Group Limited
Stock Code: 00572
Year end: June 30, 2016

BASIS FOR QUALIFIED CONCLUSION

Opening balances and corresponding figures

Our audit opinion on the consolidated financial statements of the Group for the year ended 31 December 2015 dated 21 March 2016 (the “2015 Financial Statements”), which forms the basis for the corresponding figures presented in the current period’s condensed consolidated statement of financial position and related explanatory notes, was disclaimed because of the significance of the possible effect of the limitations on the scope of our audit, details of which are set out in our audit report dated 21 March 2016. Any adjustments found to be necessary to the opening balances as at 1 January 2016 may affect the results and related disclosures in the notes to the condensed consolidated financial statements of the Group for the six months ended 30 June 2016. The comparatives figures shown in the condensed consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2015, the condensed consolidated statement of financial position as at 31 December 2015 and related explanatory notes may not be comparable with the figures for the current period.

Balance of the amount due to Able Success Asia Limited (“Able Success”)

At 30 June 2016, included in other payable is a balance of approximately HKD15,264,000 representing amount due to the former holding company, Able Success, a company incorporated in the British Virgin Islands with limited liability, and its entire issued share capital is beneficially owned by Mr. He Jianhong (“Mr. He”), who is the former chairman and executive director of the Company. Had we been able to complete our review of other payables, matters might have come to our attention indicating that adjustments might be necessary to the condensed consolidated financial statements.

QUALIFIED CONCLUSION

Except for the adjustments to the condensed consolidated financial statements that we might have become aware of had it not been for the situation described above, based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements for the six months ended 30 June 2016 is not prepared, in all material respects, in accordance with HKAS 34.