What are the benefits of listing on the Science and Technology Innovation Board?

Mondo Finance Updated on 2024-03-07

The Science and Technology Innovation Board is the abbreviation of the Science and Technology Innovation Board, which is a newly established ** section of the Shanghai Stock Exchange, which specializes in serving enterprises with core technologies, leading industries, good development prospects and market recognition, and focuses on supporting enterprises in the fields of new generation information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, and biomedicine. Science and Technology Innovation BoardIt is mainly for small and medium-sized enterprises that have crossed the entrepreneurial stage and entered high-speed growth and have a certain scale。So,The core of the Science and Technology Innovation Board is [scientific and technological innovation enterprises].If you want to be listed on the Science and Technology Innovation Board, you need to have the attributes of scientific and technological innovation.

1. Policy support

Enterprises on the STAR Market are generally "high-tech enterprises", and if they are recognized as "high-tech enterprises", they can also be levied corporate income tax at a reduced rate of 15%. Similarly, such as specialized, special and new "little giants", policy support is conducive to the development and growth of enterprises.

At the same time, the introduction of various scientific and technological innovation policies, financial subsidies, tax exemptions and exemptions, as well as the establishment of various industrial developments, have greatly reduced the innovation risk of enterprises, and also increased the profit expectations of enterprises in disguise. In addition to various preferential policies, there are also various subsidies, settlement support, policy tilt from the local government, etc., and there will be certain financial incentives for high-tech enterprises.

2. Pilot the registration system to improve the convenience of financing

The main function of * is financing, and the important reason for corporate issuance** is also to carry out direct financing. Due to the importance of the national economy, all countries have supervised the national economy, among which the registration system and the issuance system are the two types of issuance system arrangements for the first issuance and listing of enterprises.

Under the approval system, due to the substantive restrictions on the issuance conditions, it is difficult for many small and medium-sized enterprises to issue and list, resulting in serious issuance and listing of enterprises, and even the emergence of IPO "dammed lake". According to the public information on the official website of the China Securities Regulatory Commission, as of August 15, 2019, there were 475 companies pending IPO review. Among them, there are 100 small and medium-sized companies on the Shenzhen ** Exchange (including 3 companies that have passed the issuance examination committee), and 196 companies on the Growth Enterprise Market of the Shenzhen ** Exchange (including 4 companies that have passed the issuance examination committee).

The focus of the registration system is on the regulator's judgment of the issuer's application for issuance, which is only a formal review of the comprehensive, true, accurate and timely application documents, and does not involve the judgment of the investor's corporate governance structure, development prospects, and profitability. It is characterized by the market mechanism, and the investors themselves make judgments on the issuer**. For example, five sets of standards have been set for listing on the STAR Market, and pricing is based on market-based inquiry, without setting restrictions on the issue price, so that more options will be delivered to the market. The Science and Technology Innovation Board, which is the first to pilot the registration-based system, will greatly lower the threshold for enterprises to go public, facilitate the listing of enterprises, and improve the convenience of financing for enterprises.

3. Partially optimize the system of credit and approval rules to reduce the burden on enterprises

*The core of the transaction lies in information disclosure, and listed companies often face large information disclosure costs in the listing process. For example, the financial statements in the relevant reports issued by enterprises must be reviewed and opinions issued by professional institutions such as accountants and lawyers, and these need to be paid, which constitute the cost of corporate information disclosure.

Compared with other listed sectors, the relevant rules of the STAR Market are appropriately integrated according to the type of information disclosure business from the perspective of conciseness, clarity and ease of use. For matters or businesses not involved in the STAR Market, the relevant guidelines are no longer applicable; For some matters that have formed mature and stable practices after long-term market practice, such as the announcement of the resolution of the board of directors, the company can refer to the template provided by the business management system of the company on the STAR Market. The characteristics of science and technology innovation enterprises lie in their value growth, so science and technology enterprises in the early stage of the development stage choose to list on the science and technology innovation board, which will face a smaller cost of information disclosure, which is conducive to reducing the burden on enterprises.

4. The equity incentive rules are more flexible and stimulate the vitality of the company

The Science and Technology Innovation Board is positioned in the science and technology innovation industry that relies on key core technologies, and such enterprises have a greater relationship with core technologies and core technical personnel, so the company's interest performance is heavily dependent on core technical personnel (employees). Based on this, the current rules of the STAR Market have formulated more inclusive rules in terms of employee equity incentives. For example, the scope of incentive objects has been broadened. The Measures for the Administration of Equity Incentives of Listed Companies exclude shareholders or actual controllers who individually or collectively hold more than 5% of the shares of listed companies, as well as their spouses, parents and children, from the scope of incentive targets. The Measures for the Continuous Supervision of Listed Companies on the Science and Technology Innovation Board (for Trial Implementation) and the Listing Rules for the Science and Technology Innovation Board of the Shanghai ** Stock Exchange (SSE Fa 2019 No. 53) (Announcement No. 17 of the China ** Regulatory Commission 2018) clearly stipulate that as long as the science and technology company shall fully explain the shareholders or actual controllers who individually or collectively hold more than 5% of the shares of the listed company, as well as their spouses, parents, If it is necessary and reasonable for a child to become the object of incentives, the above-mentioned persons may become the targets of incentives.

In addition, in terms of capital contribution, the Guidelines on the Implementation of Employee Stock Ownership Plans and Option Incentives by Pilot Innovative Enterprises (Announcement No. 17 of 2018 of the China ** Regulatory Commission) all specify that employees' equity contributions should be mainly made in currency, but not only in currency. In addition to currency, employees can also contribute capital to shares with scientific and technological achievements, but they should provide proof of ownership of scientific and technological achievements and evaluate the value according to law.

Compared with the current A-share listed companies, the Science and Technology Innovation Board has many breakthrough provisions in terms of clear equity, number of shareholders and capital contribution of incentive recipients, which is more conducive to binding the long-term interests of enterprises with the personal interests of employees and stimulating the vitality of companies.

5. Loss-making enterprises are allowed to issue and go public, and the listing conditions are more inclusive

The Main Board, the Small and Medium-sized Board, and the Growth Enterprise Market require higher net profit indicators for enterprises applying for listing, and pay attention to the sustainable profitability of enterprises, and the "Implementation Opinions on the Establishment of the Science and Technology Innovation Board and the Pilot Registration-based System on the Shanghai ** Exchange" (hereinafter referred to as the "Implementation Opinions on the Registration System") allows enterprises that are in line with the positioning of the Science and Technology Innovation Board, have not yet made a profit, or have accumulated uncovered losses, to be listed on the Science and Technology Innovation Board. On this basis, the Science and Technology Innovation Board has constructed multiple conditions for judging the listing of enterprises such as expected market capitalization, revenue, net profit, R&D investment, cash flow, etc., and formed the "five sets of standards" for judging the listing of general enterprises and the listing standards for the Science and Technology Innovation Board and special equity structure of red-chip enterprises.

Audits are transparent and efficient, and time-to-market expectations are manageable

According to the "Review Rules for the Issuance and Listing of the Science and Technology Innovation Board of the Shanghai ** Exchange" (hereinafter referred to as the "Review Rules" (SSE Fa 2019 No. 18), enterprises applying for registration on the Science and Technology Innovation Board will receive a clear review opinion from the Shanghai ** Exchange agreeing to issue or terminate the issuance within 3 to 6 months. Enterprises that have passed the issuance review of the Shanghai ** Stock Exchange will take about 4 to 7 months from the acceptance of the issuance and listing application documents by the Shanghai ** Stock Exchange to the successful registration. For example, the first batch of listed Yantai Ruichuang, Huaxing Yuanchuang, and Tianhuai Technology took less than 3 months from application acceptance to registration and validity. On the main board, the average review period from the acceptance of the application to the completion of the listing takes about 15 months.

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