Taiwan Stock Exchange - Rules & Regulations Directory
- Basic Information:
Includes: (i) ticker code, (ii) company name, (iii) the number of shares of original stock represented per TDR unit, (iv) the balance sheet date as specified in the latest financial report, (v) the period of the statement of comprehensive income as specified in the latest financial report, (vi) whether or not the financial report has been audited (or reviewed) by a certified public accountant of the country of original listing, and (vii) the type of opinion issued by the certified public accountant of the country of original listing.
- Disclosed Information:
Includes: (i) accumulated earnings/deficit, (ii) net worth per share of the original stock, (iii) net worth per TDR unit, (iv) earnings per share of the original stock, (v) earnings per TDR unit, (vi) gross profit ratio, and (vii) net profit ratio.
- Warning Indicators:
Indicator 1: The trading method is altered or trading is suspended.
Indicator 2: The latest financial report shows an accumulated deficit, and after listing there has been a deficit for 3 consecutive fiscal years.
Indicator 3: The latest financial report shows an accumulated deficit, and shows a debt ratio higher than 60 percent and a current ratio lower than 1.0 (financial and insurance enterprises excluded).
Indicator 4: The latest financial report shows an accumulated deficit, and shows the net cash flows from operating activities for the last 2 years and the latest period are both negative.
Indicator 5: The latest financial report shows a drop of at least 50% and 30% in operating revenue and receivables turnover respectively, or a drop of at least 50% and 30% in operating revenue and inventory turnover respectively, from the same period in the preceding year.
Indicator 6: No litigious and non-litigious agent has been designated according to the law.
Indicator 7: Matters to be published as determined by the TWSE after overall consideration.
- For the purposes of Indicator 1, "trading is suspended" means suspension of trading pursuant to Article 50-3, paragraph 7 of the TWSE Operating Rules.
- The TWSE may make adjustments to the relevant indicators in the TDR Key Financials Section based on its operational needs or assessment of the overall market environment, in order to alert users and improve early-warning efficiency.
- When information disclosed in the TDR Key Financials Section meets conditions triggering any of the abovementioned indicators, it shall be marked in red to remind the users to pay attention to the difference.
- If indicator information marked in red meets any of the following conditions, it shall no longer be marked in red:
Indicator 1: The reason for the altered trading method or suspension of trading is eliminated.
Indicators 2 to 5: The latest financial report is found by the TWSE to be free of the circumstances triggering those indicators.
Indicator 6: A litigious and non-litigious agent has been designated according to the law.
Indicator 7: The latest financial report or any other relevant data is found by the TWSE upon overall consideration to be free of the circumstances triggering that indicator.
- When any of the indicators 2 to 5 is marked in red, the information on accumulated earnings/deficit shall also simultaneously be marked in red.