Page 69 - Doing Business in China

LISTING IN CHINA AND SINGAPORE

REQUIREMENTS AND PROCEDURES FOR DIFFERENT MARKETS IN CHINA

Mainboard & SME Board Second Board New Third Board
NEEQ

BSE (The issuer is an
Listing Mainboard (SSE & SZSE) SZSE innovative tier listed
venues SME Board (SZSE)
company that has been
continuously listed on
NEEQ for 12 months)
Listing Securities issued to the public Securities issued to the public Non-listed company
qualification approved by CSRC
Number of ≤ 200 ≤ 200 No restrictions
shareholders
Track record Three years Three years Two years
Total share Market capitalisation no less than RMB50 Market capitalisation no less No restrictions
capital million than RMB30 million

(1) Positive net profit and cumulative (1) Has generated profits for (1) Has the ability
profits for the last three fiscal years the latest two consecutive to make profits
exceeding RMB30 million; years, with a cumulative continuously
(2) Cumulative cash flows for the last three net profit not less than (2) A joint stock company
fiscal years derived from operations RMB50 million; or applying for a listing
exceeding RMB50 million or cumulative (2) Estimated market on NEEQ is not subject
revenue for the last three fiscal years capitalisation is not less to restrictions on the
exceeding RMB300 million; than RMB1 billion, the nature of ownership
Quantitative (3) Pre-listing capital is no less than RMB30 net profit of the most of a shareholder�
criteria million; recent year is positive and (3) If it is a limited liability
(4) Company did not suffer any unrecovered operating income is not less company, it must be
losses at the end of its most recent than RMB100 million; or fully transformed into
fiscal period; and (3) Estimated market a joint stock company
(5) The proportion of its intangible assets capitalisation is not less by converting the
(deducting land use right, water farming than RMB5 billion, and the shares at the original
right, mining right and other rights) as at operating income is not less net book value of
the end of its most recent fiscal period than RMB300 million� assets�
does not exceed 20% of net assets�

LISTING IN SINGAPORE

Companies are attracted to list on the Singapore Exchange (‘SGX’) for various reasons� SGX is recognised as a global
financial hub with over S$3�3 trillion of assets under management� SGX is also a truly international exchange, with
foreign firms accounting for about 40% of listed companies�

Companies may choose to list either on the SGX Mainboard or Catalist if they meet the respective admission
criteria� The Mainboard caters to established companies� To qualify for listing on the Mainboard, a company
must have an operating track record and meet either one of the two profit tests or the market capitalisation
test� Besides these quantitative criteria, there are also qualitative requirements that the company must meet,
such as appointing directors with appropriate experience in managing the business, and appointing at least two
independent non-executive directors who are resident in Singapore�

68 | SBA Stone Forest
68