I. Date the punishment was imposed: February 27, 2019

II. Recipient of the punishment: Responsible person of conduct of Grand Ocean Retail Group Limited, Kuo, ○○.

III. Legal basis of the punishment: Article 36-1 of the Securities and Exchange Act, Subparagraph 1, Paragraph 1, Article 30, Subparagraph 1, Article 31, and Paragraph 1, Article 33 of the Regulations Governing the Acquisition and Disposal of Assets by Public Companies effective at the time of the conduct. 

IV. Facts of the violation and reasons: The subsidiary of Grand Ocean Retail Group Limited (hereinafter referred to as “GO-KY”) Grand Ocean Co., Ltd. resolved in its board meeting on August 19, 2016 to enter into certain “Framework Agreement of House Purchase” with its subsidiaries, Wuhan Guangu Grand Ocean Limited (hereinafter referred to as “Wuhan Guangu GO”), Hubei Grand Ocean Huayu Investment Limited (hereinafter referred to as “Hubei GO Huayu”, a related party), and Shiyan City Oriental Huayu Realty Limited, in which Wuhan Guangu GO purchases Floors 1 to 7 of the Shiyen International Financial Center in the amount RMB 421,200,000, or NT$ 1,869,286,000. However GO-KY did not publish and file the transaction on behalf of its subsidiaries until January 18, 2017. Afterwards, Wuhan GO entered into an amendment contract on May 17, 2018 to modify the terms and conditions of the original transaction. GO-KY did not publish the situation on behalf of its subsidiary until February 18, 2019. In the foregoing events, GO-KY failed to publish and file the transactions within two days upon each occurrence, and has violated Subparagraph 1, Paragraph 1, Article 30, Subparagraph 1, Article 31, and Paragraph 1, Article 33 of the Regulations Governing the Acquisition and Disposal of Assets by Public Companies effective at the time of the conduct.

V. The disciplinary action: The responsible party of the Company was imposed a fine of NT$ 240,000 pursuant to Subparagraph 7, Paragraph 1, Article 178 and Paragraph 1, Article 179 of the Securities and Exchange Act.

 

Contact Officer: Section Chief Chen, Hsiang-yin, Corporate Finance Division, Securities and Futures Bureau

Contact Tel: 2774-7120