Difference between Main Board and Growth Enterprise Market

Different listing standards. Main Board listing criteria: ① the company was established and operating time of more than three years; ② the company is required to three years of profit and accumulated more than 30 million yuan; ③ the company is required to three years of accumulated more than 300 million yuan; ④ the company is required to three years of net operating cash flow accumulated more than 50 million yuan; ⑤ the company is required to issue a total of not less than 30 million yuan of share capital before the issuance of the company.

GEM listing criteria: ① the company's last two consecutive years of profit and accumulated net profit of not less than 10 million, or the last year of profit and net profit of not less than five million, the last year of revenue of not less than 50 million, the last two years of revenue growth of not less than 30%; ② the latest end of net assets of not less than 20 million, and there is no uncompensated losses; ③ total share capital after the issue of Not less than thirty million yuan.

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First, the GEM market meets the financing needs of independent innovation. Through the construction of multi-level capital market and the establishment of a direct financing mechanism of risk ***sharing and return ***sharing, it can ease the financing bottleneck of high-tech enterprises, guide the investment of venture capital, and mobilize banks, guarantees and other financial institutions to provide loans and guarantees to the enterprises, so as to form an investment and financing system that is adapted to the development of high-tech enterprises.

Secondly, the GEM market provides incentives for independent innovation. By providing equity and option plans, the capital market can inspire scientific and technological personnel to work harder to turn the benefits of scientific and technological innovation into actual benefits, solving the problem of lack of effective incentives for innovative enterprises.

Thirdly, the GEM market establishes a mechanism of survival of the fittest for independent innovation and improves the overall innovation efficiency of the society, which is reflected in the following two aspects: First, prior screening. That is, through the screening of venture capital and the threshold of the capital market, the establishment of a pre-selection mechanism, the real market prospects of entrepreneurial enterprises to the market; the second is ex post screening. It is to establish an institutionalized exit mechanism through the continuous listing criteria of the stock exchange to eliminate problem enterprises from the market.

Difference between boards

1. SMEs: In May 2004, approved by the State Council, the China Securities Regulatory Commission (CSRC) approved the establishment of a small and medium-sized enterprises (SMEs) board by the Shenzhen Stock Exchange (SZSE) within the main board market. From the capital market structure subordinate to the first board market (the main board market). Some companies are not qualified to meet the requirements of the Main Board, so they can only be listed on the SME market.2021 In February 2021, the CSRC announced that it approved the merger of the Main Board and the SME Board of the Shenzhen Stock Exchange.

2. Main Board: The Main Board market, also known as the First Board market, refers to the securities market in the traditional sense, and is the main place where securities are issued, listed and traded. Companies on the Main Board market are listed on both the SSE and SZSE.

3. Science and Technology Innovation Board (STIB): Facing the world's scientific and technological frontiers, facing the main battlefield of the economy, and facing the country's major needs, the board mainly serves scientific and technological innovation enterprises that are in line with the national strategy, breakthroughs in key core technologies, and have a high degree of recognition in the market. It focuses on supporting new-generation information technology, high-end equipment, new materials, new energy, energy-saving and environmental protection, as well as biomedicine and other high-tech industries and strategic emerging industries, promoting the deep integration of the Internet, big data, cloud computing, artificial intelligence and manufacturing industry, leading the mid-range and high-end consumption, and promoting the quality change, efficiency change and power change.

4. GEM, also known as the second board market, or the second stock exchange market, refers to the securities exchange market outside the main board specializing in providing financing avenues and growth space for small and medium-sized enterprises (SMEs) and emerging companies that are temporarily unable to go public, and it is an effective complement to the main board market, occupying an important position in the capital market.

The biggest feature of the GEM market is that it has a low threshold for entry and strict requirements for operation, which helps small and medium-sized enterprises with potential to obtain financing opportunities.

The financial indicators in GEM's offering conditions are lower than those of the initial public offering conditions of the main board (including the small and medium-sized board), and the content of the indicators refers to the main board's practice of selecting financial indicators such as net profit, income from main business, distributable profit, etc., and at the same time, attaching the growth rate and net asset indicators. In addition, the GEM in the net profit / operating income set two sets of standards, the issuer can meet one of them.