The conditions for the issuance of new shares in accordance with the Securities Law of the People's Republic of China are:

Article 12 A company's initial public offering of new shares shall meet the following conditions:

(1) Have a sound and well-functioning organizational structure;

(2) Have the ability to continue operating;

(3) The financial accounting reports for the past three years have not been issued. Qualified audit report;

(4) The issuer and its controlling shareholders and actual controllers have not committed any criminal offenses of corruption, bribery, misappropriation of property, misappropriation of property or undermining the order of the socialist market economy in the past three years;

(5) Other conditions specified by the securities regulatory authority of the State Council approved by the State Council.

When a listed company issues new shares, it must meet the conditions specified by the securities regulatory authority of the State Council approved by the State Council. The specific management measures shall be prescribed by the securities regulatory authority of the State Council.

A public offering of depositary receipts must meet the conditions for the initial public offering of new shares and other conditions stipulated by the securities regulatory authority of the State Council.

1. Securities are a general term for a variety of economic rights and interests certificates. They also refer to specialized types of products. They are legal certificates used to prove certain specific rights and interests enjoyed by the ticket holder.

2. Securities mainly include capital securities, currency securities and commodity securities. Securities in a narrow sense mainly refer to securities products in the securities market, including equity market products such as stocks, debt market products such as bonds, and derivative market products such as stock futures, options, interest rate futures, etc.

3. In February 2021, the "Supplementary Provisions of the Supreme People's Court and the Supreme People's Procuratorate on the Enforcement of Determined Crimes (VII)" stipulated the crime of fraudulent issuance of securities (cancel the crime of fraudulent issuance of stocks and bonds).

4. "Securities Law of the People's Republic of China"

Article 14 When a company publicly issues new shares, it shall submit a stock offering application and the following documents to the securities regulatory authority of the State Council ：

(1) Company business license;

(2) Articles of association;

(3) Resolution of shareholders’ meeting;

( 4) Prospectus;

(5) Financial accounting report;

(6) Name and address of the bank that collects the shares;

(7) Underwriting Organization name and related agreements. If a sponsor is hired in accordance with the provisions of this Law, the issuance sponsorship letter issued by the sponsor shall also be submitted.