The Financial Supervisory Commission (FSC) has asked the Taiwan Stock Exchange (TWSE) to determine whether Pharmally International Holding Co (康友製藥) forged financial statements and if accounting company Deloitte & Touche Taiwan (勤業眾信) was responsible for the alleged malpractice, FSC Chairman Thomas Huang (黃天牧) said yesterday.
The Taipei District Prosecutors’ Office on Monday questioned two Deloitte & Touche Taiwan accountants over possible breaches of the Securities and Exchange Act (證券交易法).
Prosecutors issued an arrest warrant for Pharmally International chairman Tony Huang (黃文烈) — who has not been seen since early this month, according to company vice president Lu Hsiang-tai (呂祥泰) — for possible breaches of the act, Chinese-language media reported.
Prosecutors accused Huang of using equipment from Pharmally International’s Chinese subsidiary as collateral for a personal loan of NT$700 million (US$23.72 million) and that the firm since 2018 has forged financial statements to hide the fact that the subsidiary was in the red, media reports said.
Based on company filings with the Taiwan Stock Exchange, Pharmally International’s top executives, including its chief financial officer, spokesman and head of internal control, resigned this month, which caused investors to worry, reports said.
The TWSE has collaborated with accounting firms to scrutinize the financial reports and to see whether Deloitte & Touche Taiwan’s accountants failed in their audits, Huang told reporters on the sidelines of a public function in New Taipei City.
If it is certain that the accountants were responsible for the failure, the commission would consider transferring the case to its disciplinary committee, Huang said.
The TWSE on Tuesday suspended transactions of Pharmally International shares, as the company did not submit a financial statement for the second quarter, the exchange said.
Last week, the exchange changed Pharmally International’s stock classification to “full delivery,” as the company could not clearly explain why equipment from its subsidiary was used as collateral.
As the company’s stock is a primary listed security held by a foreign company, investors have voiced concern in the past few days.
“To bolster investors’ confidence and strengthen supervision efficiency, the TWSE will not only adopt more supervisory measures for the primary listed foreign companies, but would also invite underwriters and certified public accountants to discuss how to improve the supervision mechanism,” the TWSE said in a statement.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
RSS