Qualifications

l  The issuer is a company limited by shares, duly established and in operation for a continuous period of three years; it has sound and well-functioning organization; and relevant departments and personnel can perform their duties according to law.

l  If a limited liability company is wholly converted into a company limited by shares according to the original book value of its net assets, the continuous operating period shall be calculated from the date the limited liability company was established.

l  The issuer’s principal business, controlling power and management team are stable, and there has been no significant adverse change in its principal business, directors and senior management; the ownership of shares held by the controlling shareholder, or by the shareholder controlled by the controlling shareholder or actual controller is well-defined, and in the last two years, there has been no change in its actual controller and no major ownership dispute that may lead to change of controlling power.

Independence

l  The issuer’s business is complete and it has the ability to operate independently in the market; its assets are integral and it is independent in business, personnel, financial affairs and organization, there is no inter-trade competition with its controlling shareholder, actual controller and any other enterprise under their control which has significant adverse effect on the issuer, and there is no related party transaction that has significant effect on the issuer’s independence or is unconscionable.

Corporate Governance

l  The issuer’s basic accounting practice is proper and its preparation and disclosure of the financial statements is in compliance with the Accounting Standards for Business Enterprises and relevant information disclosure rules, and fairly reflects in all material respects its financial position, the results of operations and cash flows, and its financial report has been issued an unqualified opinion by a CPA in the last three years.

l  The issuer’s system of internal controls is sound and effectively implemented, can reasonably ensure the operation efficiency and legal and regulatory compliance of the company and the reliability of its financial report, and obtained an unqualified internal control certification report issued by a CPA.

Compliance

l  The business operations of the issuer comply with laws and administrative regulations and the state's industrial policies. Within the last three years, the issuer and its controlling shareholder or actual controller have not committed the crime of corruption, bribery, encroaching upon property, misappropriating property or sabotaging the socialist market economic order, not been involved in fraudulent listing or severe violation of law on information disclosure or other major illegal acts relating to national security, public security, ecological safety, production safety, public health and safety, etc.

l  Its directors, supervisors and senior officers have not been subject to any administrative penalties from the CSRC in the last three years, or not been investigated by the judicial authorities for suspected crimes or investigated by the CSRC for suspected malfeasances and no definite conclusion has been issued.

l  The issuer is not involved in any major ownership dispute with regard to its major assets, core technologies or trade marks, not subject to any major debt repayment risk, and not involved in contingent events such as major guarantees, lawsuits or arbitration proceedings, or other events which will adversely affect its continuing operations, such as existing or impending significant change in its business environment.

Financials

l  If the issuer is a domestic enterprise and has no differentiated voting rights arrangement, it shall at least meet one of the following criteria in terms of market capitalization and financial indicators: (1) Its net profit has been positive for the last two years with the aggregate amount no less than RMB 50 million; (2) Its estimated market capitalization is no less than RMB 1 billion, and its net profit for the last year is positive with the operating income no less than RMB 100 million; (3) Its estimated market capitalization is no less than RMB 5 billion, and its operating income for the last year is no less than RMB 300 million.

l  If the issuer is a red chip enterprise with differentiated voting rights arrangement, it shall at least meet one of the following criteria in terms of market capitalization and financial indicators: (1) Its estimated market capitalization is no less than RMB 10 billion, and its net profit for the last year is positive; (2) Its estimated market capitalization is no less than RMB 5 billion, and its net profit for the last year is positive with the operating income no less than RMB 500 million.

Share Capital and Public Float

l  The post-IPO share capital is no less than RMB 30 million.

l  The proportion of public float ≥25%; or ≥10% if the post-IPO share capital > RMB 400 million.