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Taiwan Stock Exchange Corporation Key Points for Classifying and Adjusting Categories of Industries of Listed Companies(2013.01.23) |
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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 the company belongs shall be categorized in accordance with the respective Item set forth below:
- Where the operating income derived by the company from any of its business activities represents fifty percent (50%) or more of its overall operating income, it shall belong to the category of industry covering the said business activity for the purpose of listing its stock;
- Where no operating income derived by the company from any of its business activities represents fifty percent (50%) or more of its overall operating income, yet the operating income derived from each of three (3) individual business activities represents twenty percent (20%) or more of its overall operating income, and the company has adopted a diversified operation policy, it shall be categorized as "general industry" for the purpose of listing its stock;
- Where the industry category 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 purpose of listing its stock.
Where an issuing company applies for initial listing of its stock and the operating income derived by the company from any of its business activities as contained in its financial statements for the most recent one (1) fiscal year represents eighty percent (80%) or more of its overall operating income, it shall belong to the industry category covering the said business activity for the purpose of listing its stock.
Where an issuing company which initially applies to be categorized under, or a listed company which applies for adjusting its categorization into, the biotechnology and medical care industry and its main business activity is in the biological technology or the production and distribution of biotechnological foods, the company may only be categorized under the biotechnology and medical care industry if approvals of the Department of Health, Executive Yuan, and other relevant competent authorities have been obtained.
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5
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The TWSE will conduct a periodic review of the industry category of all listed companies on a biyearly basis. For any company which has changed the nature of its business or has adjusted its business strategy, the industry category 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 Act. The adjustment of the applicable industry category shall take effect upon being publicly announced after it has been reported to and approved by the competent authority; provided that where a company has changed the nature of its business in a special circumstance, the TWSE may report such change, if deemed necessary, as a special case to the competent authority and, after being approved, make a public announcement of adjusting the industry category of the company by taking into consideration its financial statements for the most recent fiscal year.
A listed company may also file an application with the TWSE for adjusting its industry category within five (5) months after the end of each operating year.
Where considering adjustment of the industry category of a listed company pursuant to the first and second paragraphs above, notwithstanding that the operating income of its newly added business activities conforms to the criteria for operating income as set forth in Point 3 hereof, no adjustment will be made thereto if the profit of such business department fails to reach 2% of the capital stock in its final accounts for the year in question based on a calculation using the information of such business department.
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