These Measures are formulated in light of our city’s actual conditions to seize the opportunities presented by the reform and development of China’s capital markets, accelerate the pace of local enterprises going public (or listing), encourage more high-quality enterprises to enter multi-tiered capital markets both domestically and internationally, and achieve standardized and leapfrog development.

I. Scope of Support

Enterprises legally registered with the industrial and commercial authorities and tax authorities within the jurisdiction of Xuchang City that list on domestic or overseas stock exchanges or are listed on the National Equities Exchange and Quotations (NEEQ, also known as the “New Third Board”) are eligible for listing (or listing on the NEEQ) incentive and subsidy policies.

II. Standards for Incentives and Subsidies

(1) Enterprises that have filed for listing guidance with the Henan Securities Regulatory Bureau for the Main Board, Growth Enterprise Market (GEM), Science and Technology Innovation Board (STAR Market), or Beijing Stock Exchange and have had their application accepted (or have submitted an overseas listing filing application to the China Securities Regulatory Commission and received a letter of no objection) shall receive 150,000 yuan in pre-listing promotion funds from the municipal government.

(2) For enterprises that have submitted review materials to the China Securities Regulatory Commission (or the relevant domestic or overseas stock exchange) and had their application accepted, the municipal government will provide 300,000 yuan in mid-stage listing promotion funds.

(3) For enterprises that successfully complete an initial public offering (IPO) on domestic exchanges (Main Board, GEM, STAR Market, or the Beijing Stock Exchange) or overseas exchanges (Main Board or Growth Enterprise Market), or that successfully complete a reverse merger and transfer the registered office of the listed company to our city, the municipal government will provide 1.5 million yuan in incentive funds.

(4) For listed companies outside the city that relocate their registered office to our city, the municipal government will provide 600,000 yuan in incentive funds.

(5) For enterprises that achieve listing on the National Equities Exchange and Quotations (NEEQ), the municipal government will provide 600,000 yuan in incentive funds. For NEEQ-listed companies outside the city that relocate their registered office to our city, or for companies previously delisted from the NEEQ that successfully relist, the municipal government will provide 300,000 yuan in incentive funds.

III. Application, Review, and Fund Disbursement Process

(I) Application Materials: Enterprises applying for listing (or listing on the NEEQ) incentive funds shall submit the following materials:

1. Application for the incentive.

2. A copy of the enterprise’s business license.

3. Proof of acceptance of listing guidance filing from the Henan Securities Regulatory Bureau (or a letter of no objection to overseas listing from the China Securities Regulatory Commission), documents confirming acceptance of the listing application by the China Securities Regulatory Commission or domestic/overseas stock exchanges, and copies of the company’s listing approval documents, etc.

4. Letter of approval for listing on the National Equities Exchange and Quotations (NEEQ), trading notification letter, stock registration certificate, etc.

(2) Review and Fund Disbursement Process: Applications for Xuchang City’s listing (or listing on the New Third Board) incentive funds are accepted once annually. The application period runs from August 1 of the previous year to July 31 of the current year.Applicant enterprises must submit application materials to the financial authorities and finance departments of the county (city, district) where the enterprise is registered by August 15 of each year. The county-level financial authorities, in conjunction with the finance departments, shall review the application materials (including the enterprise’s credit status) and issue a joint recommendation, submitting the materials to the Municipal Financial Work Bureau and the Municipal Finance Bureau by the end of August.The municipal finance department shall provide recommendations in accordance with relevant regulations on the management of government special funds. Following approval by the municipal government, the incentive and subsidy funds shall be disbursed in accordance with relevant regulations.

IV. Supplementary Provisions

Enterprises classified as entities with severe credit violations are ineligible to apply for listing (or stock exchange listing) incentive funds.

Enterprises that provide false materials to fraudulently obtain listing (quotation) incentive funds will be strictly investigated and punished in accordance with relevant laws and regulations, and the funds will be recovered; in serious cases, legal liability will be pursued.

These Measures shall take effect upon issuance. The document “Notice of the General Office of the Xuchang Municipal People’s Government on Issuing the Measures for the Administration of Incentive Funds for Enterprise Listing (Quotation) in Xuchang City” (Xu Zheng Ban [2020] No. 7) is hereby repealed.

Enterprises that have completed listing guidance, submitted listing applications, or successfully listed on the Beijing Stock Exchange prior to the issuance of these Measures may still benefit from the incentive policies set forth herein.

Each county (city, district) may formulate local incentive policies in accordance with these Measures and in light of local conditions.