1. The issuer should have certain profitability. In order to adapt to the financing needs of different types of enterprises, the GEM has set two quantitative performance indicators for issuers to facilitate the selection of issuance applicants: The first indicator requires the issuer to make continuous profits in the past two years, and the cumulative net profit in the past two years is not less than 10 million yuan, and continues to grow;

The second indicator requires profits in the last year, with a net profit of not less than 5 million yuan, and operating income in the last year of not less than 50 million yuan, The growth rate of operating income in the past two years has not been less than 30%.

2. The issuer should have a certain scale and duration. According to Article 50 of the Securities Law, the total share capital of a company applying for stock listing should be no less than 30 million yuan. The "Administrative Measures" require the issuer to have a certain asset scale, which specifically stipulates that the net assets at the end of the most recent period are not less than 30 million yuan. At 20 million yuan, the post-issuance share capital will be no less than 30 million yuan.

It is required that the issuer has a certain net assets and equity scale, which is conducive to controlling market risks. The "Administrative Measures" stipulate that the issuer should have a certain record of continuous operation. Specifically, the issuer should be a joint-stock limited company established in accordance with the law and continuously operating for more than three years. The limited liability company shall be converted into a joint-stock limited company based on the original book net asset value. For a company, the continuous operation period can be calculated from the date of establishment of the limited liability company.

3. The issuer should have outstanding main business. Start-up enterprises are small in scale and in the growth and development stage. If their business scope is scattered and lacks core business, it will not be conducive to effective risk control and the formation of core competitiveness.

Therefore, the "Administrative Measures" require issuers to concentrate their limited resources on mainly operating one business, and emphasize compliance with national industrial policies and environmental protection policies. At the same time, it is required that the funds raised can only be used to develop the main business.

4. Put forward strict requirements for the issuer’s corporate governance. According to the characteristics of GEM companies, in terms of corporate governance, we refer to the strict requirements of main board listed companies, requiring the board of directors to set up an audit committee, strengthen the responsibilities of independent directors, and clarify the responsibilities of controlling shareholders.

Extended information

The following procedures should be followed for public issuance and listing of stocks on the GEM:

1. Restructure the enterprise and establish a joint-stock company.

Draft a restructuring and reorganization plan, and hire sponsors (securities companies) and intermediaries such as accounting firms, asset appraisal agencies, and law firms to conduct feasibility studies on the restructuring and reorganization plan,

Audit and evaluate the assets to be restructured, sign a sponsor agreement and draft company articles of association and other documents, set up the company's internal organizational structure, and establish a joint-stock company.

2. Conduct due diligence and guidance on enterprises.

Sponsors and other intermediaries conduct due diligence, problem diagnosis, professional training and business guidance on the company, learn the necessary knowledge for listed companies, improve the organizational structure and internal management, standardize corporate behavior, and clarify business development goals and the investment direction of the raised funds,

rectify existing problems according to the issuance and listing conditions, and prepare initial public offering application documents. The one-year mandatory requirement for issuance and listing counseling has been cancelled.

3. Prepare application documents and declare.

Enterprises and intermediaries hired shall prepare application documents in accordance with the requirements of the China Securities Regulatory Commission. The sponsor shall conduct verification and be responsible for making due diligence recommendations to the China Securities Regulatory Commission; if the application conditions are met, the China Securities Regulatory Commission will notify the China Securities Regulatory Commission within 5 working days. Application documents will be accepted within.

4. Review the application documents.

After the China Securities Regulatory Commission formally accepts the application documents, it will conduct a preliminary review of the application documents, solicit opinions from the provincial people's government where the issuer is located and the National Development and Reform Commission, and feedback the review opinions to the sponsoring institution.

The sponsor institution organizes issuers and intermediaries to respond or rectify the feedback review opinions. After the preliminary review is completed and before the review by the issuance review committee, the application documents are pre-disclosed and finally submitted to the issuance review committee for review.

5. Roadshow, inquiry and pricing.

After the issuance application is reviewed and approved by the Issuance Review Committee, the China Securities Regulatory Commission will approve it. The company will publish the prospectus summary and issuance announcement and other information in designated newspapers and periodicals. The securities company will conduct a road show with the issuer to promote it to investors. and inquiry, and negotiate and determine the issuance price based on the inquiry results.

6. Issuance and listing.

Publicly issue stocks according to the issuance method prescribed by the China Securities Regulatory Commission, submit a listing application to the stock exchange, handle the custody and registration of the shares at the registration and clearing company, and list the shares. After listing, the sponsor will be responsible for continuing according to regulations. Supervision.

Baidu Encyclopedia - Listed on GEM