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Panel maker Giantplus Technology was suspended from trading by the Taiwan Stock Exchange starting August 19 after its board was reduced to a single member, making it impossible to approve the company’s second-quarter financial report. The company convened an extraordinary shareholders’ meeting on August 24 to fill board seats and subsequently filed its delayed financial statements. The exchange confirmed the suspension cause had been eliminated and approved resumption of trading effective August 27. On its first day back, Giantplus opened limit-up at NT$15.15, with buy orders at one point approaching 30,000 lots. The company posted second-quarter revenue of NT$2.1 billion (approximately $66.2 million) and net profit of NT$47 million (approximately $1.5 million), swinging to profitability from a loss a year earlier, with earnings per share of about NT$0.16. Giantplus said it will strengthen corporate governance and financial reporting controls to protect investor interests.
Key Elements
Panel maker Giantplus Technology (8105.TW) resumed trading on August 27 with shares locked limit-up at NT$15.15, bringing long-awaited relief to approximately 40,000 shareholders, after the company resolved a board composition crisis that had prevented it from filing its second-quarter financial report on time.
Giantplus opened gap-up at the daily limit on August 27, with trading volume reaching about 1,734 lots in the first half hour. Buy orders placed during the session at one point approached 30,000 lots, signaling strong market expectations for a rebound now that the trading obstacle has been removed.
The suspension stemmed from recent changes in shareholding and control of Giantplus that left the company with only one sitting director, making it impossible to form a quorum to approve the second-quarter consolidated financial statements within the statutory deadline. The Taiwan Stock Exchange announced on August 17, following its routine review of financial report filings, that trading in Giantplus shares would be halted starting August 19 under exchange operating rules. Giantplus became the only listed company in Taiwan at the time that had failed to file its financial report on schedule.
To resolve the crisis, Giantplus convened an extraordinary shareholders’ meeting on August 24 to fill the vacant board seats and completed the belated filing and announcement of its second-quarter financial report the same day. After review, the Taiwan Stock Exchange confirmed that the original cause for the trading suspension had been fully eliminated and that no other violations existed, clearing the way for trading to resume on August 27.
On the operational front, Giantplus reported second-quarter revenue of NT$2.1 billion (approximately $66.2 million), down 1.3% quarter-over-quarter and 5.9% year-over-year. Net profit came in at NT$47 million (approximately $1.5 million), a 78% decline from the previous quarter but a swing to profitability compared with a loss in the same period last year. Earnings per share for the quarter were approximately NT$0.16.
In its announcement, Giantplus emphasized that it will continue to strengthen corporate governance, enhance the quality of financial information disclosure, and strictly control the financial reporting process to protect investor interests.
The episode was notable in that Giantplus was not suspended due to financial deterioration or operating losses, but rather because of a corporate governance issue — an incomplete board — that prevented the company from completing statutory filing procedures. Such suspensions caused by “procedural obstacles” are relatively rare in Taiwan’s equity market and underscore the importance of maintaining a properly functioning board for listed companies.
For investors holding Giantplus shares, the week-long suspension was fraught with uncertainty. With trading now resumed and shares surging limit-up on the first day, short-term capital has clearly flowed back into the stock. However, institutional investors caution that Giantplus’s second-quarter profit shrank significantly from the prior quarter, and that the market will be watching whether third-quarter operations can stabilize and whether the new board can function effectively to prevent similar governance disputes from recurring.
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