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Article 14
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The term "serious deterioration" as used in Article 9, paragraph 1, subparagraph 7 of the Rules shall mean any of the following circumstances, provided that these circumstances shall not apply when, for the most recent fiscal year, the ratio of the net operating income and profit before tax to share capital of the company applying for stock listing is not lower than 12 percent:
- Operating revenue and net operating income for the most recent fiscal year or the fiscal year in which the application for listing is filed show a marked deterioration relative to other enterprises in the same industry.
- Profit before tax for the most recent fiscal year or the fiscal year in which the application for listing is filed show a marked deterioration relative to other enterprises in the same industry.
- There is continuing negative growth in operating revenues and net operating income for each of the 3 most recent fiscal years.
- There is continuing negative growth in profit before tax for each of the 3 most recent fiscal years.
- The company's products or technology are outdated, and it has no plan for improvement.
The subparagraphs of the preceding paragraph may not apply if the company applying for stock listing in accordance with paragraphs 2 or 3 of Article 4 or Article 5 of the Rules has submitted the explanation of fairness.
For the "other enterprises in the same industry" in paragraph 1, subparagraphs 1 and 2, the securities underwriter shall evaluate and explain the reasonableness of the enterprises sampled for comparison.
The provisions of subparagraphs 3 and 4 of paragraph 1 do not apply to a company already having a concrete improvement plan that is producing positive effects.
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