The "Administrative Measures for the Initial Public Offering and Listing of Stocks" has a special section that stipulates the financial and accounting conditions for listing, see the following provisions:

Article 28 Issuer Assets The quality is good, the asset and liability structure is reasonable, the profitability is strong, and the cash flow is normal.

Article 29 The issuer’s internal control is effective in all material aspects, and a certified public accountant has issued an internal control assurance report with unqualified conclusions.

Article 30: The issuer shall have basic accounting work standards. The preparation of financial statements shall comply with accounting standards and relevant accounting systems, and fairly reflect the issuer's financial status, operating results and cash in all material aspects. flow, and a certified public accountant issued an unqualified audit report.

Article 31: The issuer shall prepare financial statements based on actual transactions or events; it shall exercise due caution when conducting accounting recognition, measurement and reporting; Businesses should adopt consistent accounting policies and should not change them at will.

Article 32: Issuers shall fully disclose related party relationships and properly disclose related transactions based on the principle of importance. The prices of related-party transactions are fair, and there is no situation of profit manipulation through related-party transactions.

Article 33 The issuer shall meet the following conditions:

(1) The net profits in the last three fiscal years are all positive and the cumulative total exceeds RMB 30 million. The calculation is based on the lower before and after deducting non-recurring gains and losses;

(2) The cumulative net cash flow generated from operating activities in the last three fiscal years exceeds RMB 50 million; or the cumulative net cash flow generated by operating activities in the last three fiscal years exceeds RMB 50 million; or the cumulative net cash flow in the last three fiscal years The cumulative operating income exceeds RMB 300 million;

(3) The total share capital before issuance is not less than RMB 30 million;

(4) Intangible assets at the end of the most recent period (excluding land use rights, surface breeding rights, mining rights, etc.) shall not account for more than 20% of the net assets;

(5) There is no uncompensated loss at the end of the most recent period.

Article 34 The issuer shall pay taxes in accordance with the law, and all taxes shall comply with relevant laws and regulations. The issuer's operating results are not significantly dependent on taxes.

Article 35: The issuer has no major debt repayment risks, and there are no major contingencies such as guarantees, litigation, and arbitration that affect continued operations.

Article 36 The issuer’s application documents shall not contain the following circumstances:

(1) Intentionally omitting or fabricating transactions, events or other important information;

(2) Abusing accounting policies or accounting estimates;

(3) Manipulating, forging or tampering with accounting records or related vouchers based on which financial statements are prepared.

Article 37 The issuer shall not have the following circumstances that affect its continued profitability:

(1) The issuer’s business model, product or service variety structure has or will change Significant changes have occurred or will have a significant adverse impact on the issuer's continued profitability;

(2) The issuer's industry status or the business environment of the industry in which the issuer operates has or will undergo significant changes, which will have a significant impact on the issuer's continued profitability; The issuer's sustained profitability has a significant adverse impact;

(3) The issuer's operating income or net profit in the most recent fiscal year is significantly dependent on related parties or customers with significant uncertainties;

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(4) The issuer’s net profit in the most recent fiscal year mainly comes from income outside the scope of the consolidated financial statements;

(5) The issuer’s trademarks, patents, and proprietary technologies in use and the risk of significant adverse changes in the acquisition or use of important assets or technologies such as franchise rights;

(6) Other situations that may have a significant adverse impact on the issuer's continued profitability.

Note: The most core performance requirement is Article 33 (1), but in fact Article 33 only stipulates the minimum standards for listing. In practice, it is required for small and medium-sized board listings. The performance requirement is generally that the net profit should reach about 5,000 yuan one year before listing.