TSEC - Taiwan Stock Exchange Corporation

04/11/2019 | Press release | Distributed by Public on 04/10/2019 21:39

Starting from April 8, 2019, trading of securities of the Beverage Limited Company of the Atlantic Ocean, China Wire & Cable Co., Ltd. and Candmark Electroptics Co., Ltd. will[...]

Starting from April 8, 2019, trading of securities of the Beverage Limited Company of the Atlantic Ocean, China Wire & Cable Co., Ltd. and Candmark Electroptics Co., Ltd. will be halted. The securities of Cheng Mei Materials Technology Corp. will be placed under an altered trading method. The securities of Powercom Co., Ltd. will remain classified under an altered trading method (in the meantime subject to the periodic call auction trading method). The securities of Chunghwa Picture Tubes, Ltd. will be placed under an altered trading method (in the meantime subject to the periodic call auction trading method) in a merged case. The securities of Tong Hwa Synthetic Fiber Co., Ltd. and LUXE Electric Co., Ltd. will continue being listed under an altered trading method, but no longer subject to the periodic call auction trading method.

The Taiwan Stock Exchange (the 'TWSE') expressed that it has conducted formal review of the 2018 financial statements of listed companies. The relevant dispositions are as follows:

1. Trading Halt:

i. The CPA attesting the publicly announced and registered financial report of the Beverage Limited Company of the Atlantic Ocean (Code: 1213) for the most recent period has issued a disclaimer of opinion in the audit report, which has met the conditions set out in Subparagraph 5, Paragraph 1, Article 50 of the Operating Rules of the Taiwan Stock Exchange Corporation. The TWSE announced that the trading of the company's securities shall be halted with effect from April 8, 2019.

ii. China Wire & Cable Co., Ltd. (Code: 1603) and Candmark Electroptics Co., Ltd. (Code: 5259) failed to publicly announce and register their 2018 financial reports by the deadlines provided in laws and regulations, which constitutes a violation against Subparagraph 1, Paragraph 1, Article 50 of the above Operating Rules. The TWSE announced that the trading of the companies' securities shall be halted with effect from April 8, 2019.

2. Placement Under Altered Trading Method: The attesting CPA for the most recent financial report publicly announced and registered by Cheng Mei Materials Technology Corp. (Code: 4960) has issued a qualified audit report indicating substantial uncertainty about the ability to continue as a going concern, which has met the conditions set out in Subparagraph 3, Paragraph 1, Article 49 of the Operating Rules of the Taiwan Stock Exchange Corporation (hereinafter referred to as the 'Operating Rules'). The TWSE announced that the company's securities shall be placed under an altered trading method with effect from April 8, 2019.3. Continued Placement Under an Altered Trading Method (in the meantime subject to the periodic call auction trading method): The securities of Powercom Co., Ltd. (Code: 3043) were previously placed under an altered trading method and subject to the periodic call auction trading method for having situations prescribed in Subparagraphs 1 and 3, Paragraph 1, Article 49 and Subparagraph 4, Paragraph 1, Article 49-2 of the Operating Rules. A further examination has been made on the most recent financial report publicly announced and registered by the company and the CPA has issued an audit report stating that there is no substantial uncertainty about the company's ability to continue operating. This has fulfilled the conditions set forth in Subparagraph 3, Paragraph 2, Article 49 of the Operating Rules. The Company, however, has not yet satisfied the conditions set out in Subparagraph 1, Paragraph 2, Article 49 and Subparagraph 4, Paragraph 2, Article 49-2 of the Operating Rules. The TWSE, therefore, continues to classify the securities of the company under an altered trading method and subject to the periodic call auction trading method.4. Placement Under an Altered Trading Method (in the meantime subject to the periodic call auction trading method) on a Merged Basis: The securities of Chunghwa Picture Tubes Ltd. (Code: 2475) were previously placed under an altered trading method and subject to periodic call auction trading method for having situations prescribed in Subparagraphs 1, 6, and 9, Paragraph 1, Article 49 and Subparagraph 1, 3, and 4, Paragraph 1, Article 49-2 of the Operating Rules. An examination was made on the most recent financial report publicly announced and registered by the company. It was found that the CPA had issued a qualified audit report, which fulfilled the conditions set forth in Subparagraph 3, Paragraph 1, Article 49 of the Operating Rules. The TWSE has, as a merged case, placed the securities of the Company under an altered trading method and subject to the periodic call auction trading method with effect from April 8, 2019. Also, the most recent financial report publicly announced and registered by the company shows a negative net worth thereof. The TWSE has already announced that the securities of the company will be delisted on May 13, 2019.5. Removal From the List of 'Periodic Call Auction Trading Method' but Remaining Under Altered Trading Method: According to the most recent financial reports publicly announced and registered by Tong Hwa Synthetic Fiber Co., Ltd. (code: 1418) and LUXE Electric Co., Ltd. (Code: 1529), the net worth of the companies is no longer lower than three-tenths of their share capital stated in the financial reports. This conforms with the requirements set forth in Subparagraph 4, Paragraph 2, Article 49-2 of the Operating Rules. The two companies, in the meantime, are not involved in any situation that requires the adoption of the periodic call auction trading method. The companies, however, have not yet satisfied the requirements provided in Paragraph 2, Article 49 of the Operating Rules. The TWSE, therefore, announced that, starting from April 8, 2019, the securities of the companies shall be removed from the list of the 'Periodic Call Auction Trading Method' but remain classified under the altered trading method.