Legal Analysis: The New Third Board, a national share transfer system for small and medium-sized enterprises, is a national stock exchange approved by the State Council, referred to as the national share transfer system. The New Third Board is known as the incubator of listed companies on the Growth Enterprise Market. It enhances the financing ability of listed companies through price discovery and private equity capital increase. At the same time, through the standardized operation and supervision of relevant departments, we will promote listed companies to improve their governance structure, familiarize themselves with the capital market, and promote pilot enterprises to meet the requirements of listed companies on the Growth Enterprise Market as soon as possible.

Legal basis: Article 1 of the State Council's Decision on Issues Related to the National Share Transfer System for Small and Medium-sized Enterprises gives full play to the function of the National Share Transfer System in serving the development of small and medium-sized enterprises. The national share transfer system is a national stock exchange approved by the State Council and established according to the Securities Law, which mainly serves the development of innovative, entrepreneurial and growing small and medium-sized enterprises. Eligible joint-stock companies in China can apply for listing in the national share transfer system through sponsoring brokers, publicly transfer shares, and carry out equity financing, debt financing and asset restructuring. A company applying for listing shall have clear business, clear property rights, standardized operation according to law and sound corporate governance, and may not make profits, but shall fulfill the obligation of information disclosure, and the information disclosed shall be true, accurate and complete.