Taiwan Stock Exchange - Rules & Regulations Directory

Amendments

Title:
Taiwan Stock Exchange Corporation Criteria for Review of Securities Listings(2004.12.13)

Article 2-1
Unless it is a state-owned enterprise, any issuer applying for listing of domestic securities shall first apply for registration of its stock as emerging stock and have it traded over the counter for not less than six months before this Corporation will accept its listing application for processing.
An OTC-listed company whose stock is listed and traded on the GreTai Securities Market in accordance with Article 3 of the GreTai Securities Market Criteria Governing Review of Securities Traded on Over-the-Counter Markets shall comply with the shareholding dispersion standards in Article 4, Article 5, Article 6, or Article 6-1 of the present Criteria before this Corporation will accept its listing application for processing.

Article 2-2
An issuer applying for listing of securities shall establish a professional stock affairs agency or entity in the area where this Corporation is located to process stock affairs matters before this Corporation will accept its listing application for processing.
The professional stock affairs agency or entity referred to in the preceding paragraph shall have stock-affairs handling personnel and equipment that comply with the provisions of the Criteria Governing Handling of Stock Affairs by Public Companies, and it shall not have any record in the past three fiscal years of having been given post-audit recommendations in writing by the Taiwan Securities Central Depository Co., Ltd. and failing to make improvements by the deadline.

Article 4
Where an issuing company applying for the listing of its stock meets the criteria listed below, this Corporation will agree to list its stock:
 1. Duration of corporate existence: It shall have been incorporated and registered under the Company Act for at least three years at the time of the application for listing; provided, this restriction shall not apply to public (state-owned) enterprises or to privatized public enterprises.
 2. Amount of capital stock: The amount of its paid-in capital shall be NT$600 million or more at the time when it applies for listing.
 3. Profitability: The operating profit and before-tax net profit in its own financial statements and the consolidated financial statements prepared in accordance with the Statements of Financial Accounting Standards No. 7 meet one of the following criteria, and it does not have any accumulated loss in the most recent fiscal year:
 (1) Each of the operating profit and before-tax net profit for the most recent two fiscal years represents 6 percent or greater of the amount of paid-in capital in its final accounts, or the average operating profit and before-tax net profit for the most recent two (2) fiscal years represent 6 percent or greater [of the amount of paid-in capital in its final accounts] and the profitability for the most recent fiscal year is greater than that for the immediately preceding fiscal year; or
 (2) Each of the operating profit and before-tax net profit for the most recent five (5) years represents 3 percent or greater of the amount of paid-in capital in its final accounts.
 4. Dispersion of shareholdings: The number of holders of registered share certificates shall be 1,000 or more. Among them, the number of shareholders of a company limited by shares holding 1,000 shares to 50,000 shares shall not be less than 500, and the total number of shares they hold shall be 20 percent or greater of the total issued shares, or at least 10 million.
 For the profitability in the consolidated financial statements referred to in Item 3 of the preceding paragraph, the influence of net profit (loss) of minority equity on it shall not be taken into account.
A state-owned enterprise applying for listing of its stock shall have its financial report for the most recent fiscal year audited and attested by a certified public accountant, and shall prepare it in the form of a two-year comparative report. For other fiscal years if the stock was not yet publicly issued, the audit report issued by the auditing agency may be used instead.

Article 5
Where the central authority in charge of the enterprise concerned has issued an unequivocal opinion certifying that the issuing company applying for the listing of its stock is a technology-based enterprise and the said issuing company meets the criteria listed below, this Corporation will agree to list its stock:
 1. Its paid-in capital is NT$300 million or more at the time when it applies for listing.
 2. It has successfully developed a product or a technology with market potential, and the company has obtained an appraisal opinion from the central authority in charge of the enterprise concerned.
 3. It is recommended in writing by the securities underwriter.
 4. Its net worth in both its most recent financial report and in its financial report for the most recent fiscal year represents two-thirds or greater of the amount of its paid-in capital.
 5. The number of holders of registered share certificates shall be 1,000 or more. Among them, the number of shareholders holding 1,000 shares to 50,000 shares shall not be less than 500.

Article 7
The fact that the company applying for listing meets the criteria set forth in Items 2 and 3 of Paragraph 1 of Article 4 and Item 4 of Article 5 of these Criteria shall be substantiated by the financial statements which have been duly audited and certified or reviewed by two or more certified public accountants of an accounting firm; provided that for a stated-owned enterprise, the financial statements (in the form of two-year comparison table) for the most recent year shall be audited and certified by certified public accountants, and if in the other year, the securities have not been publicly issued, the financial statements audited by the auditing agency may be used instead.
 The amount of capital referred to in Item 1 of Article 5 and Item 2 of Article 6 of these Criteria shall be the amount shown on the certifying documents following registration (or amendment registration).

Article 9
Notwithstanding the fact that an issuing company applying for the listing of its stock meets the listing criteria set forth in these Criteria, this Corporation may disagree to its listing if the issuing company has any of the events listed below, except for any of those in Subparagraphs 8, 10, or 11 under which this Corporation shall disagree to its listing, and is deemed by this Corporation to be inappropriate for listing:
 1. It has any of the events set forth in Items 1 and 2, Paragraph 1 of Article 156 of the Securities and Exchange Act, or has made misrepresentation or false statement or conducted unlawful activities that may affect the price of its securities after listing thereof, and will cause fear that the market order may be affected or the public interests may be harmed.
 2. Its financial or business affairs are not independent from other person(s).
 3. It has had any major labor dispute or environmental pollution that will certainly affect its normal financial and business operations, and has not improved it.
 4. It has been discovered any major abnormal transaction and has not improved it.
 5. After the capital increased through the issuance of new shares which has been effected and is being effected in the year in which it applies for listing is included in the amount of paid-in capital in its final account for the respective year, it does not meet the listing criteria .
 6. It has failed to effectively implement its written accounting systems, internal compliance systems, internal audit systems, or has failed to prepare financial reports in accordance with laws and regulations and generally accepted accounting principles, and the event of this failure is considered as material.
 7. There has been major deterioration in its business operation.
 8. Where the company applying for listing conducted any activities in violation of the principle of good faith in the most recent five years, or where its directors, supervisors, general manager or de facto responsible person violated the same principle in the most recent three years.
 9. Where the directors, supervisors and shareholders who hold 10 percent or greater of its total issued shares have transferred a large number of shares in the year in which it applies for listing and in the most recent fiscal year.
 10. Where the company applying for listing has less than five members on its board of directors, or less than 2 independent directors; less than three supervisors, or less than one independent supervisor; or where within the past year the board of directors or supervisor(s) have been unable to independently exercise their functions. Additionally, the elected independent directors and independent supervisor(s) shall be confined to persons other than juristic persons or representatives thereof set forth in Article 27 of the Company Act, and at least one of each shall be a professional in accounting or finance.
 11. Where the Company applying for listing has been registered for trading as an emerging stock on the OTC market in the fiscal year of the listing application and the most recent fiscal year thereto, and there has been, from the OTC registration date onward, any trading of stock issued by the applicant company by any incumbent director, supervisor, or shareholder holding 10 percent or greater of its total issued shares other than on the emerging stock market; provided, this restriction shall not apply where such trading is for purposes of underwriting under Article 11 of these Criteria or for other legitimate reason.
12. Where the listing is considered by this Corporation as inappropriate due to its scope of business, nature or special circumstances.
 Items 2, 9, and 10 of the immediately preceding paragraph shall not apply to companies applying for listing which are government-owned enterprises.
 The ending date of the applicable periods referred to in various Items of Paragraph 1 of this Article shall be the day immediately before the date on which the letter approving its Agreement for Listing is issued by the Competent Authority.

Article 10
An application for initial listing of stock filed by an issuing company shall not be approved unless and until share certificates representing at least 50 percent of the number of shares held by each of the following persons of the issuing company specified in the application for listing (with the total number of such shares being not less than the ratio specified in Paragraph 2 of this Article), along with the remaining share certificates representing all other shares after deducting those required for public offering, have been placed in centralized custody with a centralized securities depository enterprise incorporated with the approval of the Competent Authority; provided however, that if the total number of shares held by directors and supervisors is less than the total number thereof held by them at the time when they were elected as directors and supervisors, then the total number of shares at the time when they were elected shall be the basis for counting the number of shares under this Article. If the number of shares represented by share certificates placed in centralized custody pursuant to the above is less than the ratio specifies in Paragraph 2 of this Article, the shortage shall be made up by other shareholders:
 1. Where the application for listing is filed in accordance with the provisions of Article 4 or Article 6 of these Criteria, its directors, supervisors and the shareholders holding 10 percent or greater of the total number of issued shares of the issuing company.
 2. Where the application for listing is filed in accordance with the provisions of Article 5 of these Criteria or where the applicant is an information software enterprise, its directors, supervisors, shareholders holding 5 percent or greater of the total number of issued shares, and/or shareholders whose equity investment is made in the form of patent rights or technical know-how, and who are working for the issuing company and hold 0.5 percent or greater of the total number of shares or 100,000 or more shares as of the date on which the application for listing is filed. However, this restriction shall not apply where shareholding of a recommending securities firm during the period of registration as emerging stock exceeds 5 percent of the total issued shares of said issuing company as a result of subscription or trading of operating securities during the emerging stock trading period.
The total number of shares with respect to the share certificates to be placed in centralized custody by the issuing company under the preceding paragraph refers to the total number of shares intended for listing calculated as the aggregate of common shares and preferred shares that have already been issued and shares subscribable or convertible through corporate bonds with warrants and convertible corporate bonds; the total ratio of share certificates to be placed in centralized custody by the issuing company shall be calculated as set forth below, provided, the number of shares to be placed in centralized custody by the issuing company shall not exceed a maximum of 50 percent of its total number of issued shares, and share certificates placed in centralized custody shall be confined to share certificates of publicly offered and issued common stock:
 1. Where the total number of shares intended for listing is 30 million or less, share certificates representing 25 percent thereof shall be placed in centralized custody.
 2. Where the total number of shares intended for listing is more than 30 million but 100 million or less, share certificates representing 20 percent of the portion of shares in excess of 30 million shares shall be placed in centralized custody in addition to those required under the preceding item.
 3. Where the total number of shares intended for listing is more than 100 million but 200 million or less, share certificates representing 10 percent of the portion of shares in excess of 100 million shall be placed in centralized custody in addition to those required under the preceding item.
 4. Where the total number of shares intended for listing is more than 200 million, share certificates representing 5 percent of the portion of shares in excess of 200 million shall be placed in centralized custody in addition to those required under the preceding item.
 Among the share certificates placed in centralized custody by the directors, supervisors and shareholders pursuant to the provisions of Paragraph 1 of this Article, one-fifth of the portion thereof comprising not less than 50 percent of the shares held by the respective person with the total number of shares being not less than the ratio specified in Paragraph 2 of this Article may be taken back only after the lapse of two full years from the listing date thereof; thereafter, one-fifth thereof may be taken back once every six months. The share certificates other than those referred to in the preceding sentence and those for public offering may be taken back after the lapse of one full year from the listing date thereof. However, for an issuing company that applies for listing under the provisions of Article 4, where the total number of its shares required to be placed in centralized custody for two years and in centralized custody for one year is confirmed to exceed 50 percent of the issued shares of
the issuing company, and the issuing company has paid-in capital of at least NT$30 billion, if the portion of the number of shares required to be placed in centralized custody exceeding the above-stated 50 percent of issued shares has been pledged to a financial institution by the director, supervisor, or shareholder of the issuing company who holds the shares for purposes of guaranteeing financing for the company or for him/herself, evidentiary documents furnished by the financial institution may be substituted for shares required to be placed in centralized custody for one year; provided, if the pledge is released during the custody period, the director, supervisor, or major shareholder shall deposit the same amount of shares into centralized custody; or, if the subject of the pledge is disposed by the financial institution, the issuing company shall contact other directors, supervisors, or major shareholders to deposit the same amount of shares into centralized custody.
Directors, supervisors, and shareholders shall not rescind the custodial agreement during the term thereof. Share certificates and vouchers evidencing that share certificates are placed in centralized custody shall not be transferred or pledged. The validity of centralized custody shall not be affected by a change of the identity of the holders of share certificates in centralized custody; provided that, however, if the holder's identity changes during the custody period, and all the circumstances in the below subparagraphs are complied with, share certificates representing the same amount of shares may be withdrawn from custody:
1. During the period from the date of listing for trading until one day before two years have elapsed, the holder has negotiated with directors and/or supervisors who took office at the time of the initial application for listing to cover the withdrawal by placing the same number of shares in centralized custody.
2. During the period from two years after the date of listing for trading until the expiry of the centralized custody period, the holder has negotiated with directors and/or supervisors who took office at the time of the initial application for listing, or current directors and/or supervisors, to cover the withdrawal by placing the same number of shares in centralized custody.
 The provisions of Paragraph 1 of this Article shall not apply to directors, supervisors and shareholders of government authorities, government-owned enterprises, or which have obtained an approval from the authority in charge of the enterprise concerned for the sale of the shares held by them and have been determined to be inappropriate to place such share certificates in centralized custody.
 The total ratio of share certificates to be placed in centralized custody as specified in Paragraph 2 of this Article shall not apply to government-owned enterprises.
 When the directors and supervisors of an issuing company referred to in Paragraph 3 above take back their share certificates placed in centralized custody after lapse of the centralized custody period, if such taking back causes the total shares placed in centralized custody by all the directors and supervisors to become less than the ratio of total shareholding under the "Regulations Governing the Shares Ownership Ratio of the Directors and Supervisors of Public companies and Examination and Enforcement Thereof" (hereinafter referred to as the "Shareholding Ratio"), the directors and supervisors may only take back the portion in excess of the Shareholding Ratio. The remaining shares shall continue to be placed in centralized custody. If re-election of directors and supervisors occurs during the centralized custody period, the portion of the shares of all re-elected directors and supervisors meeting the Shareholding Ratio shall continue to be placed in centralized custody. This provision shall also
apply after lapse of the centralized custody period. Provided, that if a director or supervisor of a state-owned-enterprise applicant company is itself a state-owned enterprise or government agency, the shares it holds in the applicant company may be included in the calculation of the shareholding in centralized custody referred to above.

Article 10-1
An application for initial listing of stock filed by an issuing company in accordance with Article 6-1 shall not be approved unless and until its directors, supervisors, shareholders holding 1 percent or more of the total issued shares, and the shareholders whose equity investment is made in the form of technical know-how and who hold 0.5 percent or more of the total number of issued shares or 100,000 shares or more have placed all of their shares specified in the application for listing, less the shares required for public offering, and in total not less than the total ratio calculated by the method enumerated below, with a centralized securities depository enterprise incorporated with the approval of the Competent Authority; provided however, that if the total number of shares held by directors and supervisors is less than the total number of shares held by them at the time when they were elected as directors and supervisors, then the total number of shares at the time when they were elected shall be
the basis for counting the number of shares under this Article. If the number of shares represented by share certificates placed in custody pursuant to the above is less than the total ratio of shares required to be placed in centralized custody, the shortage shall be made up by other shareholders:
1. If the total number of shares in the aggregate calculation of the shares intended for listing under paragraph 2 of the preceding article is one billion shares or less, 50 percent of the total number of shares shall be placed in custody.
2. If the total number of shares intended for listing exceeds one billion shares but not three billion shares, in addition to complying with the preceding subparagraph, 40 percent of the total number of shares shall be placed in custody for the portion exceeding one billion shares.
3. If the total number of shares intended for listing exceeds three billion shares but not five billion shares, in addition to complying with the preceding subparagraph, 30 percent of the total number of shares shall be placed in custody for the portion exceeding three billion shares.
4. If the total number of shares intended for listing exceeds five billion shares but not seven billion shares, in addition to complying with the preceding subparagraph, 20 percent of the total number of shares shall be placed in custody for the portion exceeding five billion shares.
5. If the total number of shares intended for listing exceeds seven billion shares, in addition to complying with the preceding subparagraph, 10 percent of the total number of shares shall be placed in custody for the portion exceeding seven billion shares.
 Among the share certificates placed in custody under the preceding paragraph, one-sixth of the portion thereof may be taken back only after the lapse of three full years from the listing date thereof; thereafter, one-sixth thereof may be taken back once every six months. If after lapse of the said period, the project constructed by the company has not been fully completed and the operation has not commenced, the custody period may be extended until the project is fully completed and the operation commences; provided, however, that if partial operation has commenced before the project is fully completed, the custody period shall be extended until the company's annual financial report shows an operating profit and before-tax net profit. The custody agreement shall not be terminated during the term thereof. Share certificates and vouchers evidencing that share certificates are placed in custody shall not be transferred or pledged. The validity of custody shall not be affected by any change of the identity of
the holders of share certificates in custody.
The provisions of Paragraph 1 shall not apply where, during the period in which an issuing company applying for initial listing of its stock is registered as an emerging stock company, shareholding of its recommending securities firm exceeds 1 percent of the total issued shares of said issuing company as a result of subscription or trading of operating securities during the emerging stock trading period.

Article 10-2
Where a company is applying for listing and its stock is already listed and traded on the GreTai Securities Market in accordance with Article 3 of the GreTai Securities Market Criteria Governing Review of Securities Traded on Over-the-Counter Markets, personnel of the company that conform to Article 10 or Article 10-1 shall still be required to place share certificates in centralized custody in accordance with the provisions of those articles.
If the total shareholding of personnel of an applicant company under the preceding paragraph who are required to place share certificates in centralized custody in accordance with Article 10, paragraph 1, is lower than the total ratio calculated by the method specified in Article 10, paragraph 2, they shall coordinate with other shareholders to make up the difference and place it in centralized custody, and the shares may be withdrawn from custody in full only after one full year has elapsed from the date that listed trading begins.
Where the stock of an applicant company under paragraph 1 has already been traded over the counter for three years or more, if, upon comparing its personnel who are required to place share certificates in centralized custody under these Criteria with the names registered in the register three full years prior to the date of the application for listing -- or, where it has been traded over the counter for less than three years, upon comparing its personnel who are required to place share certificates in centralized custody under these Criteria with those who placed share certificates in centralized custody for the OTC listing application -- if the total changes do not exceed one-third of the personnel, those personnel who have not changed may discount in full the amount of time that their share certificates have been in centralized custody since the time they were originally placed in centralized custody for the OTC listing from the two-year waiting period from the date that listed trading begins until
the time they may begin withdrawing their share certificates in installments under Article 10, paragraph 3, or from the three-year waiting period from the date that listed trading begins until the time they may begin withdrawing their share certificates in installments under Article 10-1, paragraph 2.
If the applicant company under paragraph 1 is an investment holding company or a financial holding company, it shall comply with this Corporation's Regulations for the Review of Stock Listing Applications by Investment Holding Companies or Regulations for the Review of Stock Listing Applications by Financial Holding Companies, and, in addition, the provisions of the preceding paragraph shall apply mutatis mutandis to discounting of the period for centralized custody of its stock.
The personnel who have not changed as referred to in paragraph 3 shall still be required to place in full in centralized custody all stock they hold that they have not yet placed in centralized custody, and may withdraw it in full only after one full year has elapsed from the date that listed trading begins.

Article 11
Where an issuing company applies for initial listing of its common stock or various preferred stock, it shall allocate a percentage, as specified by this Corporation, of the total number of shares it intends for listing and retain a securities underwriter to offer in full such shares for sale to the public before the shares are listed, by means of a cash capital increase through a new share issue in accordance with the provisions of Article 71, paragraph 1, of the Securities and Exchange Act concerning underwriting of securities on a firm commitment basis. Provided, that a state-owned enterprise or an applicant under Article 6 or Article 6-1 may carry out underwriting with stock already publicly offered and issued by the company.
The total number of shares intended for listing to be allocated by the issuing company for public sale under the preceding paragraph shall be calculated by the method specified in Article 10, paragraph 2, and shares added during the period from the time of the application for listing until the time of listing shall be included in the calculation; provided, share certificates allocated for public sale shall be confined to share certificates of publicly offered and issued common stock.
The provisions of paragraph 1 concerning retaining a securities underwriter to carry out public sale before listing do not apply to a company applying for listing whose stock is already traded over the counter on the GreTai Securities Market in accordance with Article 3 of the GreTai Securities Market Criteria Governing Review of Securities Traded on Over-the-Counter Markets.

Article 14
Where a listed company issues new shares that are of the same type of stocks as those which has already been listed and applies for listing the new shares, such new shares may be listed in accordance with the provisions of Paragraph 2 of Article 139 of the Securities and Exchange Act, and any certificates carrying right to convert bonds into stock issued by the said listed company may also be listed on the exchange of this Corporation in accordance with the said provisions of the Securities and Exchange Act.
 Where a listed company issues new shares that are not of the same type of stocks as those which have already been listed and applies for listing of the new shares, this Corporation may agree to list the new shares only if the total par value of the shares under application for listing is NT$300 million or more and the company offers the shares for sale to the public before listing in accordance with Paragraph 1 of Article 11, and complies with the shareholding dispersion standards in Article 4, Paragraph 1, Subparagraph 4 of these Criteria. Provided, this Corporation may disagree to the listing in any of the following events:
 1. Its before-tax net profit for the most recent two years is in a negative figure.
 2. At the time of approving the issuance of new shares, the Competent Authority deemed it inappropriate to offer the new shares to the public at market price, and the causes therefor have not been extinguished.
 3. The most recent application for public offering and issuance of securities was returned or disapproved by the Competent Authority, and the causes therefor were material and have not been improved.
 4. The securities previously issued by the company were restricted from listing for causes under Paragraph 1 of Article 156 of the Securities and Exchange Act, and such causes have not be extinguished, or any event under Paragraph 1 of Article 156 of the Securities and Exchange Act has occurred.
 5. There exists other events that are deemed by this Corporation as inappropriate for listing.
 A listed company applying for listing of shares issued by it that are not of the same type of stock as those already listed and that are redeemable for cash upon maturity shall comply with the provisions of the preceding paragraph; however, the shareholding dispersion standards in Article 4, Paragraph 1, Subparagraph 4 of these Criteria shall not apply.
A listed company shall promptly report to this Corporation, by submitting a Listed Securities Report Form, any common shares created through the exercise of conversion rights or subscription rights under any preferred shares with warrants, convertible preferred shares, corporate bonds with warrants, and convertible corporate bonds offered and issued by it, and may be exempted from the requirement of public offering under Article 11. Provided, if such offered and issued preferred shares are prohibited from listing under the proviso to paragraph 2 of this Article, common shares created through the exercise of conversion rights or subscription rights thereunder shall also be prohibited from listing.

Article 15
In addition to complying with the relevant provisions of these Criteria, securities, financial and insurance enterprises applying for listing of their stock shall first obtain a letter of consent from the authority in charge of the enterprises concerned, before this Corporation will accept their applications. Provided, that if a financial enterprise or insurance enterprise applying for listing of its stock has previously obtained and provided such a letter before its stock began to be traded over the counter on the GreTai Securities Market in accordance with Article 3 of the GreTai Securities Market Criteria Governing Review of Securities Traded on Over-the-Counter Markets, it does not need to provide such letter again.
 Aside from complying with the relevant provisions of these Criteria, a securities company applying for listing its stock shall have contemporaneously engaged in securities underwriting, buying and selling for its own account and such activities as commission agent or intermediary for at least five full fiscal years.

Article 16
Where an issuing company other than a government-owned enterprise applies for the listing of its stock and, in any of the most recent two fiscal years, its operating income derived from construction business represents 20 percent or greater of its total operating income, or its gross profit derived from construction business represents 20 percent or greater of its gross profit, or its operating income or gross profit derived from construction business is more than the operating income or gross profit derived from other items of its business activities, it shall in addition to complying with the relevant provisions of these Criteria, meet the following conditions:
 1. There shall have been eight full fiscal years since its incorporation.
 2. The amount of its paid-in capital shall be NT$600 million or more at the time when it applies for listing.
 3. The net worth before distribution of earnings shown in the most recent financial report and for the most recent fiscal year shall exceed one-third of the total value of its assets.
 4. The total value of house units and land to be sold, and leased assets (minus net worth of accumulated depreciation) shown in the most recent financial report and for the most recent fiscal year shall not exceed 70 percent of its net value; provided that if the company has obtained the use license for less than one year, such portion may be exempt from including in the calculation of the house units and land to be sold.
 5. Its operating profit and before-tax net profit for each of the most recent three fiscal years shall be in positive figures, and it does not have accumulated loss in the most recent three fiscal years.
 6. Where all income accounts are accounted based on the percentage completion method, the full completion method shall be adopted; where a portion of income accounts are accounted based on the percentage completion method, the full completion method and the percentage completion method, as the case may be, shall be adopted. In case the full completion method is used in declaring the income accounts, the profit and loss statements for the most recent three fiscal years shall have been prepared based on the percentage completion method and shall have been reviewed by certified public accountants and evaluated by the securities underwriter by comparing with the original profit and loss statements; and both of the auditor's report and the underwriter's evaluation report confirm that its profitability meets the listing criteria.
 7. Where its profitability remains in compliance with the criteria for listing of its stock after the profit derived from each project as prescribed below is deducted according to the calculation of certified public accountants:
 (1). Purchase or sale of completed or uncompleted construction projects by others (referring to those for which invested construction cost have exceeded 40 percent of total construction cost).
 (2). Purchase or sale of bare-land or house units already built.
 (3). Acquisition and subsequent sale of either land or house originally held by the opposite party/parties as co-contractor.
 (4). Sale of house or land to related party.

Article 29
Supplementary provisions to these Criteria may be separately stipulated by this Corporation.
 These Criteria and other supplementary provisions stipulated pursuant to these Criteria shall take effect after having been submitted to and approved by the Competent Authority and publicly announced. Attachments to these Criteria shall be implemented after having been submitted in writing to and signed by the president of this Corporation. Subsequent amendments thereto shall be effected in the same manner.

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw