According to the regulations of the Securities Regulatory Commission of the State Council on the recommendation of the conditions, procedures and required documents for the pre listing enterprises abroad, the recommendation is recommended in June 17, 1996.

(1) in line with the state's industrial policies, enterprises should belong to industries permitted by the state to invest in foreign countries.

(2) enterprises have potential for development and are in urgent need of funds.

(3) the enterprise has a certain scale and good economic benefits: the application enterprise should have 3 consecutive years of profit performance, and the net assets of the listed companies after the reorganization are generally not less than 400 million yuan RMB, the net profit after tax assessment or estimation will be more than 10%, the net profit after tax will reach more than 60 million yuan, and the proportion of state-owned shares should exceed 51% after issuing shares.

(4) appropriate progress should be given to the pilot enterprises under the modern enterprise system established by the State Council in the pilot projects under the same conditions.

(5) the amount of capital raised by enterprises to issue foreign listed foreign shares is expected to reach RMB 400 million yuan (approximately $50 million).

(6) enterprises have certain ability to earn foreign exchange, and the level of earning foreign exchange usually reaches more than 10% of net profit after tax.

(7) enterprises have a certain reputation and management level.