SSE Releases Format of Quarterly Reports of Listed Companies
Upon completion of the recent revision under the unified guidance of the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (SSE) has released the format of the quarterly reports (hereinafter referred to as the Quarterly Report Format). The SSE published the Quarterly Report Format as the Attachment No. 101 of the SSE Guide to Self-regulation of Listed Companies No. 1 - Announcement Format and the Attachment No. 28 of the Business Guide to Information Disclosure of the Listed Companies on the STAR Market No. 3 - Regular Information Disclosure. Adapted to the Securities Law and the Administrative Measures for Information Disclosure of Listed Companies, the Quarterly Report Format clarifies the requirements for the content and format of the quarterly reports of the listed companies.
The general guidelines for the revision of the Quarterly Report Format are in the following three aspects. First, the Quarterly Report Format shall be included in the SSE’s system of rules. Setting the Quarterly Report Format as a business guide of the SSE increases the flexibility and pertinence of the rules and facilitates the timely revision on the basis of the investors’ demands for information. Second, the content to be disclosed shall be streamlined. In terms of form, the main text of quarterly reports is no longer distinguished from the full text; and in terms of content, according to the characteristics of the “quarterly” cycle, it is no longer required to disclose the overdue unfulfilled commitments and the profit forecast for the next reporting period. Third, the criteria for major changes in financial data shall be clarified. According to the principle of importance coupled with the consensus in practice, the standard for major changes in key financial data is set at 30%, and the scope of data changes is specified to the 9 major accounting data and financial indicators.
The revised Quarterly Report Format covers the following five parts. The first is the reminder of important content, as according to the provisions of the higher-level laws on periodic reports, the requirement is retained for the directors, supervisors and senior executives of listed companies to issue the announcement on ensuring authenticity; the second is the major financial data, in which the key accounting data, the financial indicators and the non-recurring profit and loss items and amounts should be listed, and the reasons for the changes of more than 30% should be analyzed and explained; the third is shareholder information, which lists the total number of shareholders, the top 10 ordinary shareholders and the top 10 preferred shareholders, and adds the "marking" option for the shareholding status of shareholders; the fourth is other reminders, in which the listed companies are required to carefully evaluate and disclose other important information related to their operations; and the fifth is the financial statements of the quarterly report, in which the comparative financial statements should be disclosed, and the audit situation should be explained.
The Quarterly Report Format shall come into effect as of the date of release, and shall be applicable to listed companies on the SSE main board and the STAR Market, respectively. The listed companies shall compile and disclose the reports for the third quarter of 2021 in accordance with relevant requirements; in addition, directors, supervisors and senior executives of listed companies shall refer to the relevant requirements for periodical reports in the Securities Law and the Administrative Measures for Information Disclosure of Listed Companies, and vote on and sign the written confirmation on the quarterly report in accordance with laws and regulations.
Going forward, the SSE will make technical preparations for the orderly disclosure of quarterly reports, and effectively organize and ensure the listed companies’ smooth disclosure of their quarterly reports.