Taiwan's Giant's shareholders approve plan to list subsidiary in China

(CNA photo)

(CNA photo)

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, Giant's shareholders gave the green light to the company's plan to list Giant Light Metal Technology (Kunshan) Co. as a Chinese yuan-denominated A-share.

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 A-share 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 semi-finished 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 A-share listing, Giant said, it will retain its controlling share in the subsidiary.

At the annual general meeting, Giant's shareholders also approved a proposal to issue NT$4.6 (US$0.15) in cash dividend per share on the company's 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 January-March period, Giant's net profit totaled NT$680 million, while its EPS was NT$1.82.