Taipei, A proposal by Taiwanese bicycle brand Giant Manufacturing Co. to take its subsidiary public in China has been approved by shareholders.
At an annual general meeting Friday, Giants shareholders gave the green light to the companys plan to list Giant Light Metal Technology (Kunshan) Co. as a Chinese yuandenominated Ashare.
Following its shareholders decision, Giant will submit an application to the China Securities Regulatory Commission by the end of the year to secure approval for the Ashare listing, according to local media.
With the listing, the unit will be able to raise funds to more quickly expand and gain greater visibility in the China market, which in turn will allow for recruitment of top talent, Giant said.
The unit is currently the leading manufacturer in East China of finished and semifinished aluminum industrial products for bicycles and motorcycles and is hoping to expand into the production of raw material production for automobiles, high speed trains and aircraft, Giant said.
Despite the Ashare listing, Giant said, it will retain its controlling share in the subsidiary.
At the annual general meeting, Giants shareholders also approved a proposal to issue NT$4.6 (US$0.15) in cash dividend per share on the companys 2019 earnings per share of NT$7.64.
In the first quarter of the year, Giant posted NT$14.69 billion in consolidated sales, a growth of 5.2 percent from a year earlier in reflection of rising demand for electric bikes in the European market and higher sales in China.
In the JanuaryMarch period, Giants net profit totaled NT$680 million, while its EPS was NT$1.82.
Source: Focus Taiwan News Channel