On October 11, the Shanghai Stock Exchange (SSE) issued Guidelines No. 6 of the Shanghai Stock Exchange on the Application of the Rules for Issuance and Listing Review — Identification Standards for Light Assets and High R&D Investment (Trial) (hereinafter referred to as the "Guidelines"). The Guidelines are designed to implement the requirements of the "Eight STAR Market Measures". By refining the identification standards for enterprises with "light assets and high R&D investment", the Guidelines aim to encourage listed companies on the STAR Market to increase R&D investment and enhance their capabilities in scientific and technological innovation.
It is learned that the Guidelines detail the identification standards for enterprises characterized by "light assets and high R&D investment", making the relevant indicators clearer and more quantifiable. This allows enterprises to independently evaluate and demonstrate their compliance with these standards, thereby further improving the transparency and predictability of refinancing.
The Guidelines are applicable to STAR Market-listed companies with asset-light and high R&D investment characteristics. According to the requirements, an asset-light enterprise must ensure that the proportion of its fixed assets, construction in progress, land use rights, right-of-use assets, long-term deferred expenses, and other tangible assets resulting from capital expenditures at the end of the latest year does not exceed 20%.
An enterprise with high R&D investment must ensure that its average R&D expenditure over the past three years should be at least 15% of its operating revenue. Alternatively, its total R&D investment over the past three years should not be less than RMB 300 million. Additionally, its R&D personnel should account for no fewer than 10% of its staff members.
STAR Market-listed companies that simultaneously meet the above-mentioned requirements can be identified as "asset-light and high R&D investment". They are exempt from the 30% limit on current capital supplement ratios when refinancing, but the portion exceeding 30% must be solely used for R&D investment in their main business.
Refinancing, a STAR Market-listed company that meets the aforementioned identification standards must disclose relevant information in detail in the prospectus, such as R&D expenditures, content, and risks associated with its fundraising project. Meanwhile, the intermediary needs to issue a special verification report on whether the company complies with the relevant provisions of the Guidelines. The SSE also strengthens its daily supervision of information disclosure regarding the use and changes of the raised funds.
The above information is provided for reference purposes only and does not constitute investment advice.
