Shenzhen Stock Exchange: Carrying out new regulations for ChiNext Annual Report

Shenzhen Stock Exchange: Carrying out new regulations for ChiNext Annual Report and enhancing disclosure effectiveness and transparency

01/02/2012

In order to improve the transparency of the annual report information disclosure of ChiNext listed companies, Shenzhen Stock Exchange successively promulgated 2011 Annual Report Notice, Memorandum No.10 on ChiNext Information Disclosure Business, specifying the detailed requirements in terms of management discussion and analysis, profit distribution, Q1 performance warning and so forth in annual report disclosure for the purpose of improving the effectiveness of information disclosure of listed companies. In January, 2012, Jetsen Technology (code: 300182) and Orient National Communication (code: 300166) are the first to disclose 2011 annual report, doing a good job in implementing the new requirements and new policies in the annual report disclosure.

Recently, the regulatory departments vigorously encourage the listed companies to actively implement the cash bonus to give the return to investors. The China Securities Regulatory Commission promulgated the Public Notice No.41 by the end of 2011, explicitly requiring the listed companies to perfect the profit distribution policy, actively give the return to shareholders and boost up the transparency of profit distribution. In the Memorandum No.10 on ChiNext Information Disclosure Business-Annual Report Disclosure-Related Matters, the SZSE also made the clear requirements to make ChiNext-listed companies to review the articles relating to profit distribution policy in the Articles of Association, specifying the detailed policies covering the profit distribution way, the conditions for cash bonus and its ratio, use of undistributed profit. According to relevant regulatory files and regulations, the SZSE also ask the listed companies to make the profit distribution plan with the consideration of such factors as shareholder interest appeal, future development planning, profitability, growth.

At the same time, the SZSE also requires ChiNext listed companies to concurrently disclose the performance and make the next quarterly performance warning in the annual report, facilitating investors to timely take hold of changes in the performance and also improving the effectiveness and transparency of information disclosure.