SSE Implements Arrangements for Extending Disclosure of Annual Reports to Strengthen and Enhance All-round Service for Listed Companies

On April 7, the China Securities Regulatory Commission (CSRC) issued the "Announcement on Matters Concerning Current Work in Audit and Disclosure of Annual Reports of Listed Companies and Other Institutions", which makes a unified deployment for the matters concerning the extended disclosure of annual reports of listed companies, fully reflecting the support and care of the capital market for the listed companies. Today, the Shanghai Stock Exchange (SSE) released the "Notice on Supporting Listed Companies in Making Effective Efforts in Disclosure of 2019 Annual Reports" (the "Notice" for short, see attachment), so as to support the implementation of the specific requirements of the CSRC’s announcement, relay the warmth of regulation, and bolster the listed companies in the audit and disclosure of 2019 annual reports.

The market participants are now concerned about how to solve the problem that the impact of the epidemic may make it difficult for the listed companies to disclose their annual reports as scheduled. In accordance with the spirit of the CSRC's announcement, the "Notice" of the SSE makes specific responses and arrangements in the following four aspects: first of all, the principle of "disclosing all reports as necessary" is conveyed. The information in the annual report is the summary of a listed company ’s operations over the past year and matters much to the investors. The listed companies with conditions should try their best to overcome difficulties, work closely with the audit institutions, and strive to disclose the annual reports as scheduled, so as to fully protect the investors' right to know. Secondly, the deadline for the disclosure extension is specified. The companies that are really unable to disclose the audited annual reports before April 30, 2020 due to the impact of the epidemic are allowed to defer the disclosure, but in principle the disclosure should be no later than June 30, 2020. The abovementioned arrangements not only consider the actual situations of the listed companies, but also take into account the need to maintain the normal order of information disclosurein the market.Thirdly, the requirementsfor information disclosure are refined. Moreinformation disclosure requirements are adequately made for the companies intending to postpone the disclosure, and the role of professional opinions offered by accounting firms is brought into full play, so as to providesupport for the companies with real difficulties and avoid individual cases of arbitrary extension. Fourthly, the linkage with the follow-up handling is arranged. For the companies that do meet the conditions for deferring disclosure, the provisions on trading suspension and resumption and delisting, etc. will not be applied accordingly and the postponed disclosure will not be treated as a violation either. Corresponding measures will be taken in accordance with the actual situations after the companies disclose their audited annual reports. If the reasons for the extension are untrue, the SSE will carry out supervision during and after the event, and if necessary, will request the local CSRC office for verification.

The implementation of extending the disclosure of annual reports is part of the SSE’s efforts in deepening and enhancing the “all-round service”for the listed companies. Since the beginning of 2020, in the face of the arduous task of fighting the epidemic and the profound changes in the economic situation and market environment at home and abroad, quite a few listed companies have met with difficulties. Against this background, the SSE has madeearnest considerations, conducted in-depth research and surveys, tried every means to help the listed companies battle against the epidemic and rejuvenate themselves, and taken "improvingregulation, services and quality" as the focus and main line of work. In terms of service, according to the needs in fighting against the epidemic and the actual demands of the companies, the SSE has provided timely and efficient support for relevant companies for the purpose of making every effort conducive to epidemic prevention and control and boosting the stale operation of the market. First of all, the SSE has adjusted the information disclosure business and made arrangements for linkage in a timely manner. After the arrangements for the market closure during the Spring Festival holiday were adjusted, the SSE immediately took measures for communication and linkage, opened special channels, and tried its best to meet the normal demands of the companies for information disclosure and handling of businesses.Secondly, the SSE has continued to survey the impact of the epidemic and formulated tailored assistance programs. The SSE has looked into the actual difficulties and demands of the companies, vigorously made efforts in finding ways, providing suggestions, building platforms and attracting resources, andput forward targeted relief plans for key areas and industries. Thirdly, the SSE has energetically pushed the listed companies to use the capital market to solve financing problems. The SSE has provided support for 11 companies to disclose the reorganization plans, 104 companies to disclose or revise the refinancing plans, and 5 companies to extend the validity period of the financial information on reorganization.

Going forward, the SSE will continue to balance development and regulation as well as supervision and service, make great efforts to deepen the service concept, enrich service forms, forge service capabilities and improve service quality, and support the healthy development of the SSE-listed companies. In order to achieve success in relevant efforts, the SSE will strive to build a "comprehensive and effective" all-round service platform, which will provide the listed companies with warm and quality services in information disclosure, business handling, special training, mergers and acquisitions and reorganizations, refinancing and ecological constructionof the market.

Attachment: Notice on Supporting Listed Companies in Effectively Disclosing 2019 Annual Reports