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A construction company applying for OTC listing of its stock shall meet the following requirements:
(1) Five full fiscal years shall have elapsed since its incorporation.
(2) The amounts of its year-end paid-in capital shall be NT$200 million or more for the most recent two fiscal years.
(3) The net worth before distribution of earnings shown in the most recent financial report, and for the most recent fiscal year shall reach 30 percent or more of the total value of its assets.
(4) The total value of house units and land to be sold and leased assets (net amount after deduction of accumulated depreciation) shown in the most recent financial report, and for the most recent fiscal year shall not exceed 70 percent of its net worth; provided that if the company has obtained the use license for less than one year, such portion of house units and land to be sold may be excluded in calculation.
(5) Its operating income and income before tax for each of the most recent three fiscal years shall be in positive figures.
(6) Its profitability, after imputed calculation and deduction of the income and gross profit derived from the following activities by certified public accountants, remains in compliance with Article 3, paragraph 1, subparagraph 2 of the Regulations [i.e., the GreTai Securities Market Regulations Governing Review of Securities Traded on Over-the-Counter Markets]:
(i) Purchase of completed or uncompleted (referring to those for which 40 percent or more of the total construction cost has already been invested) construction projects by others.
(ii) Purchase or sale of bare land or house units already built.
(iii) Acquisition and subsequent sale of either land or houses originally owned by the counterparty/parties as co-contractor.
(iv) Sale of houses or land to a related party.
(7) Its operating income and income before tax, as shown in the pro forma income statements for the most recent three fiscal years that are prepared by the completed-contract method where all income accounts are posted based on the percentage-of-completion method, by the completed-contract method and the percentage-of-completion method, as the case may be, where only a portion of income accounts are posted based on the percentage-of-completion method, or by the percentage-of-completion method where all income accounts are posted based on the completed-contract method and that have been audited by certified public accountants, remain in positive figures and meet the requirements for profitability under Article 3, paragraph 1, subparagraph 2 of the Regulations.
Where an application for OTC listing is officially submitted prior to 31 December 2000, the observation period for profitability under the above provisions (5) and (7) shall be the most recent two fiscal years. |
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