TAIPEI (Taiwan News) — BES Engineering Corp. on Thursday filed a criminal complaint against former board representative Cheng Ssu-tsung (鄭斯聰), who is also a board candidate nominated by PJ Group in the company’s ongoing board election, alleging insider trading and potential stock price manipulation in violation of Taiwan’s Securities and Exchange Act.
The company said it submitted supporting evidence to prosecutors on Thursday and urged authorities to conduct a thorough investigation.
According to BES, Cheng, who previously served as a corporate director representative, attended a board meeting on Dec. 23, 2025, during which the board reviewed a major 2026 financial budget plan projecting significant increases in revenue and profitability.
BES stated that the plan forecast revenue growth of nearly NT$9.3 billion (US$290 million), representing year-on-year growth of nearly 45%, along with a net profit increase of more than NT$1.1 billion, representing a rise of about 172%. The company considers this material non-public information.
BES alleges that Cheng later resigned from his board position on Jan. 23, but continued trading the company’s shares during a legally restricted period through entities he chaired, including Baoxin Investment Co. and Yuantong Investment Co.
According to BES, as of Feb. 25, one day before the public announcement of the financial forecast, regulatory disclosures showed that Baoxin had increased its stake from 11.363% to 13.851%, while Yuantong had raised its holdings from 0.994% to 1.018%.
In addition to insider trading allegations, BES said trading volume in its stock surged abnormally after Cheng’s resignation. Daily turnover rose more than tenfold within six trading sessions, from 5,137 shares to as many as 55,832 shares, raising suspicions of market manipulation.
BES said it has requested investigators to obtain detailed trading records from the Taiwan Stock Exchange and called on regulators, including the Financial Supervisory Commission, to launch a full investigation into the source of funds and related transactions.
BES said it maintains “zero tolerance” for conduct that undermines market integrity and shareholder interests.