Shanghai Securities News｜A New Start for the Reform of Eight Measures on Deepening the SSE STAR Market Reform and Supporting Scientific and Technological Innovation and the Development of New Quality Productive Forces｜"Light Asset and High R&D Investment" Refinancing Cases Are Gradually Implemented as SSE STAR Market Precisely Activates Listed Companies' Innovation Vitality

Translated from Shanghai Securities News

Prologue

On June 19, 2024, the China Securities Regulatory Commission (CSRC) unveiled the Eight Measures on Deepening the SSE STAR Market Reform and Supporting Scientific and Technological Innovation and the Development of New Quality Productive Forces (the "Eight Measures"), marking the beginning of a new round of reforms for the SSE STAR Market. As the first anniversary of the release of the "Eight Measures" approaches, Shanghai Securities News is launching a series of reports titled "A New Start for Reform of Eight Measures on Deepening the SSE STAR Market Reform and Supporting Scientific and Technological Innovation and the Development of New Quality Productive Forces" Through extensive interviews with listed companies, intermediaries, and industry experts, the series examines the implementation of the related systems and measures outlined in the "Eight Measures," reform outcomes, and valuable insights across multiple dimensions—including strategic emerging industries, M&As, refinancing, the fifth set of listing standards, corporate value and return enhancement, index-based investment, and market ecosystem.

◎ By Reporter He Xinyi

One year after the release of the Eight Measures on Deepening the SSE STAR Market Reform and Supporting Scientific and Technological Innovation and the Development of New Quality Productive Forces (the "Eight Measures"), numerous reforms have proceeded steadily and effectively along the main line of fully supporting the development of new quality productive forces. The clear "light assets and high R&D investment" standard has precisely directed funding to flow towards technological innovation, injecting continuous energy into the innovation and R&D activities of SSE STAR Market-listed companies.

According to statistics from Shanghai Securities News reporters, since the release of the "light assets and high R&D investment" identification standard in October last year, 9 SSE STAR Market-listed companies such as Cambricon Technologies Corporation Limited and Dizal (Jiangsu) Pharmaceutical Co., Ltd. have applied for refinancing following the identification standards, with total intended financing nearing 25 billion yuan. These companies, primarily in industries such as semiconductors and biopharmaceuticals, have launched a wave of chip and innovative drug R&D projects, unleashing vibrant innovation vitality.

Active Refinancing Among "Light Assets and High R&D Investment" Companies

On June 4, Cambricon Technologies Corporation Limited's application for a private placement of 4.98 billion yuan was accepted by the SSE. This is the second private placement refinancing conducted by the company in the five years since its listing, and it is also the largest financing at present. The capital raised will primarily be used for chip platform projects and software platform projects targeted at large models, as well as for supplementary current capital.

Industry insiders believe that the implementation of the "light assets and high R&D investment" standard on the SSE STAR Market has clarified that relevant companies will no longer be subject to restrictions on 30% of supplementary current capital and debt repayment when refinancing, allowing for greater flexibility in the use of funds.

The reporter observed that since the introduction of the standard in October of last year, related refinancing cases from companies on the SSE STAR Market have gradually implemented. At present, 9 SSE STAR Market-listed companies, including Cambricon Technologies Corporation Limited, have applied for refinancing in accordance with this identification standard, with a total planned financing of 24.796 billion yuan, mainly concentrated in the biomedicine and semiconductor industries, with raising funds ranging from 1 billion yuan to 4.5 billion yuan, all directed towards projects that strengthen their main businesses such as innovative drugs or chip research and development.

The refinancing cases of Dizal (Jiangsu) Pharmaceutical Co., Ltd. and Verisilicon Microelectronics (Shanghai) Co., Ltd. were registered and took effect on January 26 and March 20 this year, respectively. The refinancing applications of 7 companies, including Cambricon Technologies Corporation Limited, ACM Research (Shanghai), Inc., Skyverse Technology Co., Ltd., Sichuan Biokin Pharmaceutical Co., Ltd, Beijing Huafeng Test & Control Technology Co., Ltd., Espressif Systems (Shanghai) Co., Ltd., and Geovis Technology Co., Ltd., are in the review and inquiry stage. SSE is accelerating the review in accordance with regulations.

Take Dizal (Jiangsu) Pharmaceutical Co., Ltd. as an example; the company is the first unprofitable enterprise to apply the "light assets and high R&D investment" standard and successfully completed a private placement of 1.796 billion yuan in fundraising in April this year.

The capital raised by Dizal (Jiangsu) Pharmaceutical Co., Ltd. in this refinancing will be invested in the further development of its core products, sunvozertinib and golidocitinib, as well as other new drug development projects, international standard innovative drug industrialization projects, and to supplement current capital. Notably, 67.18% of the funds raised will be allocated to projects with relatively high uncertainty, such as new drug development projects and supplementing current capital.

Lyu Hongbin, Chief Financial Officer and Secretary of the Board of Directors of Dizal (Jiangsu) Pharmaceutical Co., Ltd., stated in an interview that if the company were not recognized as a "light assets and high R&D investment" company, it might face challenges in compressing its investment in new drug development projects and delaying projects for international R&D and production bases. This could ultimately diminish the R&D and clinical progress of its core products and the pace of establishing its R&D production bases, thereby weakening the company's competitive advantage on the international stage.

"This standard opens up a smoother and more suitable refinancing path for innovative drug companies, helping to relieve R&D funding pressure and avoiding the reduction of innovation investments due to short-term funding stress, thereby encouraging companies to pursue original innovation and breakthroughs in core technologies," Lyu Hongbin said.

Verisilicon Microelectronics (Shanghai) Co., Ltd. is a semiconductor company that applies the "light assets and high R&D investment" identification standard. Its refinancing will be used for R&D expenditures with relatively high uncertainties, such as salary expenses of IP R&D personnel and IP purchase costs, accounting for 64.89%. The company said that the relevant raised funds can be flexibly allocated to IP R&D projects, aligning with its ongoing commitment to high R&D investment in semiconductor IP technology.

Dai Weimin, chairman and president of Verisilicon Microelectronics (Shanghai) Co., Ltd., said that in the past, some companies faced situations where they had to use raised capital of refinancing to purchase fixed assets like office buildings or equipment, causing some projects to deviate from the core development direction of the enterprise and even increasing operational burdens. After the "light asset and high R&D investment" identification standard is clarified, sci-tech enterprises can more reasonably plan their financing methods and scales according to their development strategies and funding needs, which is beneficial for addressing the financing difficulties faced by them and facilitating breakthroughs in critical core technologies.

Precise Empowerment to Activate Innovation Vitality in Sci-tech Enterprises

Since 2025, the number of refinancing applications accepted across the market has significantly increased, demonstrating a positive cycle of "policy benefits being released — case demonstration driving — and rising market enthusiasm."

Wu Kaicheng, deputy executive head of the TMT Industry Department I of the Securities Investment Banking Department of Guotai Haitong Securities Co., Ltd., said that, according to current market observations, an increasing number of companies on the SSE STAR Market are considering utilizing the "light assets and high R&D investment" identification standard. This standard primarily applies to companies in the biopharmaceuticals, semiconductors, software, and certain high-end equipment manufacturing industries on the SSE STAR Market.

"In the past, some asset-light operating companies had to make fixed asset investments to meet financing requirements, and there were even cases where they changed their investment projects financed by raised capital after the completion of fundraising. With the introduction of the above-mentioned identification standard, sci-tech enterprises can formulate reasonable investment projects financed by raised funds based on their actual operating models, allowing them to allocate more resources to R&D, strengthen their core competitiveness, and promote high-quality development. The review process has also become more efficient due to the clarity of the standard, enhancing the predictability of corporate financing," Wu Kaicheng said.

Gao Yuan, member of the Executive Committee of Huatai United Securities Co., Ltd. and head of the Massive Health Industry Department, said: "It is not difficult to see that as the financing channels for sci-tech enterprises that meet the standards of 'light assets and high R&D investment' are further unblocked, policies are effectively breaking the financing bottlenecks of related enterprises and promoting more resources to gather at the forefront of technological innovation. The SSE STAR Market will further become a core platform for cultivating new quality productive forces and supporting scientific and technological self-reliance. "

Statistics show that there are over a hundred companies on the SSE STAR Market that meet the "light asset and high R&D investment" identification standard, yet only nine companies have taken the lead in trying these new refinancing regulations. In this regard, Wu Kaicheng believes that the main reason is that the company's refinancing plan depends on its actual business needs, and different companies have different financing nodes; in addition, the policy has been in place for a relatively short time, and both listed companies and intermediary institutions may still be in the process of adapting to the new standards.

The above information is provided for reference purposes only and does not constitute investment advice.