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Article 5
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A briefing by the Applicant is conducted in two parts in principle: a film and an oral explanation of the company’s profile. The time for each part will be arranged by the Applicant, lead underwriter , auditor and lawyers issuing legal opinions themselves.
The briefing above shall cover the following in principle:
- The company’s place of business, production flow and business overview.
- Company history.
- Main products, raw materials and main sources.
- Business philosophy and track records.
- Market overview and status of industry, including competition in the industry, product substitutability, business cycle, and other countermeasures.
- Analysis of transactions with suppliers and purchasers, current sales, and gross profit margins of its products in the last three years.
- Competitive niche (advantage).
- Fund management, including budgeting, funding, utilization of idle funds, implementation of the previous capital increase, and utilization plans for projected capital increases, relevant benefit analysis etc.
- Financial transactions with interested parties and enterprises of the group.
- Comparative analysis of the financial ratios of listed and unlisted companies in the same category.
- Inventory management, production and marketing policies and actual implementation.
- Equipment, plants and other real property.
- Research and development results and plans, including quality analysis of personnel of the R&D department, directions of R&D, R&D capabilities of companies in the same trade, prospects of mass production and market competitiveness.
- Development plans, favorable and unfavorable factors affecting company development, and countermeasures to deal with such factors.
- Corporate governance and corporate social responsibility.
- Long-term plans, and objectives, challenges and opportunities of the next three to five years.
- Composition of directors and supervisors, and actual operations of directors’ and supervisors’ meetings in the last two years.
- Avenues and frequency of communication between the company and stakeholders.
- Ethical-operation policy and report system of the company.
- Environmental risk identified by the company, countermeasures adopted, and effects of actual implementation of the measures.
- Assessment and results of impact caused by suppliers to the environment and society.
- Dividend policy.
- Personnel and employee benefit system, including employee stock subscription, bonuses and retirement system etc.
- Purpose of listing.
Briefings submitted for a reconsideration cases are governed by the preceding paragraph mutatis mutandis, with the reasons for rejection and reasons for re-consideration stated in comparison table.
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