All Independent Directors Resign, Financial Reports Undelivered! Yongguan-KY to Be Listed for Full Settlement from August 13, Trading Suspension Maintained

The Taiwan Stock Exchange announced today (11th) that Yongguan-KY (1589-TW), a major manufacturer of wind power casting components, will have its listed securities placed under revised trading methods effective August 13, 2026, due to the resignation of all three independent directors and failure to complete their replacement within the stipulated period. Additionally, as the company has not filed its financial reports on time and unresolved debt default issues persist, its stock will continue to remain under trading suspension.

The exchange stated that Yongguan-KY had previously been placed under revised trading methods under Article 49-1 and Article 49-3 of the Exchange's Operational Rules, adopting the full settlement trading mechanism (commonly known as full payment and delivery). However, the company has recently faced severe governance issues, with all three independent directors resigning, resulting in fewer than two independent directors domiciled in the Republic of China, and no replacement elections held within the legally mandated timeframe.

The exchange determined that this situation meets the criteria under Article 49-1, Paragraph 1, Clause 14 of the Operational Rules, and therefore decided to include the company’s listed securities under revised trading methods starting August 13, maintaining it under intensified supervision.

In addition to governance failure, Yongguan-KY’s financial crisis is equally severe. The exchange further explained that the company had already been suspended from trading due to its failure to timely announce and file its 2025 annual and 2026 first-quarter financial reports. Moreover, it failed to repay its fourth domestic unsecured convertible corporate bond upon creditor redemption requests, and after three months past maturity, it has neither settled the debt nor reached a settlement agreement with creditors, leading to the continued suspension of its listed securities trading.