| Title： |
Key Points for Classification and Adjustment of Categories of Industries of Listed Companies(1997.11.15) |
| Date： |
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1
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In order to make distinct classification of the category of industry applicable to a company whose stock is initially listed and to satisfy the need for making adjustment thereto in case of changes in the nature of business of a company after its listing, these Key Points are hereby stipulated pursuant to Paragraph 5 of Article 42 of the Operation Rules of this Corporation.
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2
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By making reference to the Table of Standard Classification of Industrial and Commercial Enterprises published by the Directorate General of Budget, Accounting & Statistics of Executive Yuan, this Corporation hereby classifies the listed companies into twenty (20) categories including: Cement industry, food industry, plastic industry, textile industry, electric machinery industry, electrical and cable industry, chemical industry, glass and ceramic industry, paper and pulp industry, iron and steel industry, rubber industry, automobile industry, electronic industry, building material and construction industry, shipping and transportation industry, tourist industry, financial and insurance industry, trading and consumers' goods industry, general industry and other industry.However, this Corporation may make additions to or changes of the categories of industries based on market needs after reporting to and receiving the approval of the Competent Authority.
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3
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Where the financial statements for the most recent two (2) fiscal years of an issuing company which applies for an initial listing of its stock conform to any of the following conditions, the industry to which it belongsshall be categorized in accordance with the respective Item set forth below:
(1)Where the operating income derived by the company from any of its business activities represents fifty percent (50%) or greater of its overall operating income, it shall belong to the category of industry covering the said business activity for the purposes of listing its stock;
(2)Where the operating income derived by the company from any of its business activities does not represent fifty per cent (50%) or greater of its overall operating income, yet the operating income derived from each of three (3) individual business activities represents twenty percent (20%) or greater of its overall operating income, and the company has adopted a diversified operation policy, it shall be categorized as "general industry" for the purposes of listing its stock; or
(3)Where the category of industry of the company cannot be determined in accordance with either Item (1) or (2) above, nor can it be categorized into any of the industries set forth in Point 2 hereof, then it shall be categorized as "other industry" for the purposes of listing its stock.
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4
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When categorizing in accordance with Point 3 hereof the industry applicable to a company which applies for an initial listing of its stock, this Corporation may take into consideration the functions and designed purposes of its major products, the loss and profit ratio of and the ratio of its assets allocated to various business departments, and other relevant evidentiary information.
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5
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This Corporation will make a periodic review once every two (2) years of the industry categories of all listed companies.For any company which has changed the nature of its business or has adjusted its business strategy, the category of industry to which it belongs shall be adjusted in accordance with Points 3 and 4 above based on its financial statements for the most recent two (2) fiscal years submitted by the said company pursuant to the provisions of Article 36 of the Securities and Exchange Law.The adjustment of the applicable category of industry shall take effect upon being publicly announced after it has been reported to and approved by the Competent Authority.
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6
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These Key Points shall take effect upon being publicly announced after they are submitted to and approved by the Competent Authority.Subsequent amendment hereto shall be effected in the same manner.
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