Offering Requirements
1. The company has been in continuous operation for at least 3 years
● The issuer is a limited company established by law and has been in operation for no less than 3 years with a sound and well-functioning organization. Relevant institutions and personnel are able to perform their duties in accordance with the law.
● Where the issuer is a joint-stock company converted from a limited liability according to the original book net asset value, the duration of continuous operation may be calculated from the date of the establishment of the joint-stock company.
2. The company has sound accounting criteria and internal control rules
● The company has sound accounting criteria and is issued a standard unqualified audit reports by a certified public accountant.
● The internal control system is sound and effective, and is issued an unqualified internal control report by a certified public accountant.
3. Business integrity
● The issuer enjoys asset integrity and independence of business, personnel, finance and institutions. The competition with the controlling shareholder, the actual controller, etc. does not pose a significant adverse effect on the issuer, and there is no relevant transaction that seriously affects independence or that is significantly unfair.
● In the last 2 years, no major adverse changes have occurred in the main business and directors, senior managers and core technical personnel. The ownership of the controlling shareholder and the shareholder controlled by the controlling shareholder and the actual controller are clear. The actual controller has not changed in the last 2 years, and there are no major ownership disputes that may result in possible changes in control.
● There are no major ownership disputes with major assets, core technologies, trademarks, etc., or other matters that have a material adverse effect on its continuing operation.
4. The issuer's operation is compliant with relevant laws and regulations
● The issuer, its controlling shareholders and actual controllers have not committed any criminal offences, fraudulent issuances, major disclosure violations or other major violations involving the five major security areas in the last 3 years.
● The directors, supervisors and senior executives of the issuer have not been subject to administrative punishment or investigation by the CSRC or judicial authorities in the last 3 years. Nor is there any case of unclear conclusion.
More Inclusive Listing Standards
| Financial Indicators | Where an applicant applies for listing on the STAR Market of the SSE, its market value and financial figures shall meet at least one of the following criteria: | |||||
|---|---|---|---|---|---|---|
| 1 ● Market value ● Net profit ● (Operating revenue) | 2 ● Estimated market value ● Operating revenue ● Total share of R&D investment | 3 ● Estimated market value ● Operating revenue ● Net cash flow from operation | 4 ● Estimated market value ● Operating revenue | 5 ● Estimated market value ● Other indicators | ||
| Estimated market value | No less than RMB 1 billion | No less than RMB 1.5 billion | No less than RMB 2 billion | No less than RMB 3 billion | No less than RMB 4 billion | |
| Net profits | Net profit for the last 2 years is positive and cumulative net profit is no less than 50 million yuan | Net profit for the last year is positive | / | / | / | ● The main business or products need to be approved by the relevant state departments. ● The market is huge, and the issuer has achieved initial progress. ● Pharmaceutical companies need at least one core product approved for phase II clinical trials. ● Other companies that meet the positioning of the STAR Market should have obvious technical advantages and meet the corresponding conditions. |
| Operating revenue | / | No less than RMB 100 million in the last year | No less than RMB 200 million in the last year | No less than RMB 300 million in the last year | No less than RMB 300 million in the last year | |
| R&D Investment | / | / | R&D investment accounts for no less than 15% in the accumulative operating revenue in the last 3 years | / | / | |
| Net cash flow from operation | / | / | / | No less than RMB 100 million in the last 3 years | / | |
Listing Standards for Red-chip Companies
| Types of enterprises | Where an applicant applies for listing on the STAR Market of the SSE, its market value and financial figures shall meet at least one of the following criteria: | ||||
|---|---|---|---|---|---|
| 1 Large red-chip companies listed abroad | 2 Large unlisted red-chip companies | ||||
| Market value/estimated market value | The market value is no less than RMB 200 billion. | The estimated market value is no less than RMB 20 billion. | The estimated market value is no less than RMB 10 billion. | The estimated market value is no less than RMB 5 billion. | |
| Operating revenue | / | The operating income is no less than RMB 3 billion in the latest year. | / | The operating income is no less than RMB 500 million in the latest year. | |
| Other indicators | / | / | The operating revenue is growing fast. With indigenous R&D capacity and world-leading technology, the issuer is well-placed in the horizontal competition. | ||
Listing Standards for Companies with Differentiated Voting Rights
| Estimated market value | Where an applicant applies for listing on the STAR Market of the SSE, its market value and financial figures shall meet at least one of the following criteria: | ||||
|---|---|---|---|---|---|
| 1 No less than RMB 10 billion | 2 No less than RMB 5 billion | ||||
| Operating revenue | / | The operating revenue for the latest year is no less than RMB 500 million. | |||
Offering and Listing Standards Comparison
| Key Differences | Main Board / SME Board | ChiNext | STAR Market | |
|---|---|---|---|---|
| Targeted companies | ● Large mature companies | ● Growing innovative companies | ● Growing sci-tech innovation companies | |
| Business integrity | ● In the last 3 years, no major adverse changes have occurred in the main business, directors and senior managers | ● In the last 2 years, no major adverse changes have occurred in the main business, directors and senior managers | ● In the last 2 years, no major adverse changes have occurred in the main business and directors, senior managers and core technical personnel | |
| Finance and accounting | ● Requirements on net asset, cash flow, revenue, and net income | ● Requirements on net asset, revenue, and net income | ● Emphasize market value and revenue instead of net income requirements | |
| Profit | ● In the last 3 fiscal years, the company has made continuous profits and accumulated net profits exceeds 30 million RMB ● Or the accumulated total operating revenue exceeds 300 million RMB | ● In the last 2 years, the company has made continuous profits and accumulated net profits are no less than 10 million RMB ● Or in the last year, the company has made profits and the total operating revenue is no less than 50 million RMB | ● Companies that conform to the orientation of STAR Market, are not yet profitable or have accumulated deficits are allowed to be listed ● Based on the estimated market value, revenue, net income, R&D investment, cash flow and other factors ● 5 set of differentiated listing standards | |
| Cash flow | ● The cumulative net cash flow from operating activities in the last three fiscal years exceeds 50 million RMB | ● No requirements | ||
| Net asset | ● Intangible assets account for no more than 20% of net assets at the end of the latest period ● There is no undistributed deficit at the end of the latest period | ● Net assets no less than 20 million RMB at the end of the latest period ● There is no undistributed deficit | ||
The above content is only for reference. Please refer to the full text of the rules.