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Article 25
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As used in Article 28-8, paragraph 1, subparagraph 2 of the Rules, "its finances or operations cannot be independently and clearly distinguished from those of another person" means that any of the following circumstances applies to a foreign issuer or a company controlled by it that is applying for a primary listing:
- The applicant company's sources of funding are overconcentrated in non-financial institutions.
- The applicant company has entered into contracts with others that impose severe limits on its operations or that are obviously unreasonable, creating the likelihood that the company will be adversely influenced.
- The applicant company shares a joint a line of credit with another in which the credit of the two is not clearly distinguished. This provision does not apply, however, to a joint line of credit that is shared between business entities that are included in the consolidated financial statement of the foreign issuer.
- The purchase amount in the most recent period or most recent fiscal year from the time of the application for listing from related parties that are not companies within the same group enterprise exceeds 70 percent, provided that such provision may be waived in situations resulting from unique characteristics of its business, market demand and supply conditions, government policy, or any other reasonable causes.
- The operating revenue or operating profit in the most recent period or most recent fiscal year from the time of the application for listing from related parties that are not a companies within the same group enterprise exceeds 50 percent, or the operating revenue derived from the use of a critical technology or asset provided by the related parties mentioned above exceeds 50 percent, provided that such provision may be waived in situations resulting from unique characteristics of its business, market demand and supply conditions, government policy, or any other reasonable causes, which situation accounts for not more than 70 percent.
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