IPO New Deal: LED welcome favorable financing

Securities Regulatory Commission said that the amendments to further clarify the gem to support growth, innovative SME market positioning, help to promote the construction of multi-level capital market system. The two measures of the introduction will undoubtedly provide a boost for the LED lighting industry financing.

In May 16, 2014, the Commission issued a formal Chinese Chinese Commission issued the "IPO and listing on the gem management approach" (hereinafter referred to as the "first" and "management measures") securities issued by companies listed on GEM Interim Measures ", from the date of promulgation.

It is reported that the first approach mainly revised the following aspects:

Appropriate relaxation of financial access indicators, cancel the continued growth requirements;

Two is to simplify the conditions of other issues, strengthen information disclosure constraints;

Three is the full implementation of the protection of the legitimate rights and interests of small investors and the requirements of the new shares issued by the reform.

The Commission said that this amendment to further clarify the gem to support growth, innovative SME market positioning, help to promote the construction of multi-level capital market system. The two measures of the introduction will undoubtedly provide a boost for the LED lighting industry financing.

IPO New Deal: LED welcome favorable financing

Since the IPO restart in 2013, the listing and financing has become a new way for the LED industry to obtain funds at low cost, and in the face of strict IPO system, but also make many companies disheartened. After all, in a few years ago the low period of the LED enterprises, both in the last two years of continuous profitability in recent years, the cumulative net profit of not less than 10 million yuan, and sustained growth, or the most recent year profit, and net profit of not less than 5 million yuan in revenue last year of less than 50 million yuan, the last two years of revenue growth rate of not less than 30% of the requirements, is a low threshold.

Fortune CLSA Research Ministry of science and technology industry research director Feng Lingtian said that in 2014, LED lighting has entered a phase of rapid growth, and if the enterprise can obtain sufficient funds to expand production capacity, the laying of channels and investment in research and development, will undoubtedly is important to obtain the competition victory.

Compared with government subsidies for "blood" mechanism, to attract funds from the two level market is the LED enterprise "hematopoietic stem cells", the market competition as a benign ruler, will promote the healthy development of rail LED enterprises gradually enter the survival of the fittest.