National Equities Exchange and Quotations Co. Ltd., Measures for the Tiered Administration of Companies Listed on the National Equities Exchange and Quotations (Trial Implementation)

(2) its average annual net profit having been not less than Rmb20 million (based on a calculation before and after deduction of non-recurring losses or gains, whichever is lower);

(3) its weighted average rate of return on equity has, on average, not been less than 10% during the last two years (based on a calculation before and after deduction of non-recurring losses or gains, whichever is lower); and

(4) offering shares simultaneously with its application for listing with an amount of financing of not less than Rmb10 million (Article 8).

Listed companies that do not enter the innovation tier enter the basic tier (Article 10).

Issued: May 27 2016

Effective: as of date of issuance

Main contents: A company applying to list on the National Equities Exchange and Quotations may directly enter the innovation tier if it is satisfying criteria such as:

(1) having been consecutively profitable for the previous two years;

(2) its average annual net profit having been not less than Rmb20 million (based on a calculation before and after deduction of non-recurring losses or gains, whichever is lower);

(3) its weighted average rate of return on equity has, on average, not been less than 10% during the last two years (based on a calculation before and after deduction of non-recurring losses or gains, whichever is lower); and

(4) offering shares simultaneously with its application for listing with an amount of financing of not less than Rmb10 million (Article 8).

Listed companies that do not enter the innovation tier enter the basic tier (Article 10).