Hello! I'm your financial analysis assistant. Although this news seems to be full of codes and numbers, it actually reveals a very clear logic of "upgrading and progressing" within China's capital market.
To make it easier for you to understand, I'll first summarize the key points in plain language and then break it down into five aspects to show you what's really going on behind the scenes.
📝 Summary of Key Points
In simple terms, the "reserve team" for the Beijing Stock Exchange (BSE) has grown stronger. On September 17th, 12 companies that were originally on the Basic Layer or lower levels of the National Equities Exchange and Quotations (NEEQ) for Small and Medium-sized Enterprises (New Third Board) were promoted to the Innovation Layer due to their good performance and strong compliance.
Why is this promotion important? Only companies that have been on the New Third Board's Innovation Layer for 12 months are eligible to apply for listing on the BSE (IPO). So, these 12 companies have essentially obtained the "candidate qualification" to list on the BSE.
What's even more interesting is that many of these companies were previously trying to list on the Science and Technology Innovation Board (STAR Market) or the main board but didn't succeed. Now, they are "switching tracks" to the BSE. Overall, these companies have strong profitability and high research and development (R&D) investment, especially the "specialized, sophisticated, distinctive, and innovative" (ZJTXIN) small giants in the manufacturing industry, which are of quite high quality.
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🔍 In-Depth Analysis: Understanding This Promotion from Five Dimensions
1. What is "layer adjustment," and why does entering the Innovation Layer mean a chance to list on the BSE?
You can think of the New Third Board as a "business growth ladder":
- Basic Layer: Small companies just starting out, with low entry barriers and average liquidity.
- Innovation Layer: Companies with better performance and higher levels of compliance, higher entry barriers, and better liquidity.
- BSE: The real listing stage, for innovative small and medium-sized enterprises.
The logic is as follows:
Companies want to list on the BSE → They must first be listed on the Innovation Layer for 12 months → Therefore, the six annual layer adjustments (promoting companies from the Basic Layer to the Innovation Layer) are essentially supplying a "reserve force" for the BSE.
This is the fourth layer adjustment of the year, and with the previous batches, a total of 223 companies have successfully "promoted" this year. This means that the BSE will have a continuous stream of new listings in the next one to two years, and the market won't lack new stocks.
2. What about these 12 newly promoted companies? (Let's take a look at their fundamentals)
These 12 companies weren't chosen randomly; they are all selected as "top students." Let's evaluate their strength from three aspects:
- Profitability (revenue and profit):
- Overall improvement: All 12 companies saw revenue growth in the first half of the year, with 9 companies generating over 100 million in revenue.
- Outstanding performers: Meitong Aroma had revenue of 472 million in the first half, and Heyuan Fuma's net profit soared by 1582% (although the base may be small, the growth rate is impressive). Mulei Laser and Zhonglu Jiaoke also had net profits exceeding 40 million.
- High average standards: The average revenue for 2025 (note: this may refer to the latest full year or forecast, but based on the context, it's understood as recent performance) is 668 million, and the average net profit is 61.97 million, far higher than the New Third Board average.
- Some "latecomers" are also making progress: Three companies (Sainowei Sheng, Tiansheng Hua, Yunshang Technology) had losses in the first half, but the loss margins are narrowing. This indicates they are emerging from a downturn, which is characteristic of growing companies—allowing for short-term fluctuations while showing a positive trend.
- Industry distribution: They are all from the manufacturing industry, involving electrical, specialized equipment, auto parts, electronic communications, etc., in line with the country's support for "hard technology" and the real economy.
3. Why were they able to "promote"? (Let's look at the criteria)
Why did these 12 companies stand out? Because they meet the criteria favored by the state:
- "Specialized, sophisticated, distinctive, and innovative" small giants: 113 out of the 12 companies (note: there might be a data error in the original text; it's unlikely there are 113 out of 12. Based on the context, it likely means that this group of newly promoted companies, or all 223 companies that promoted this year, have this characteristic). They have high R&D investment, averaging 28.55 million in R&D expenses. For small and medium-sized enterprises, this is a significant investment, indicating they don't rely on selling resources or inefficient labor but on technology.
- High growth: Rapid revenue and profit growth, which aligns with the BSE's focus on supporting innovative small and medium-sized enterprises.
In simple terms, these companies are not "big but weak"; they are "small but excellent" and "specialized and precise." They are essential links in the industrial chain, such as those manufacturing lasers, producing essential oils, or working in transportation technology.
4. What about those that "switched tracks" to the BSE from the STAR Market/main board? How are they doing now?
This is the most dramatic part of the news. Some companies previously tried to list on the more prestigious STAR Market or the Shanghai main board but didn't succeed, so they are now turning to the BSE:
- Sainowei Sheng:
- Background: Applied to the STAR Market in 2023, aiming to raise 600 million yuan, but withdrew after the first round of inquiries.
- Current status: Started BSE preparation in August 2025.
- Explanation: The STAR Market has very high requirements for "hard technology" attributes and low valuation tolerance. Sainowei Sheng may have felt the "cost-effectiveness" was not high, or its technology didn't meet the top standards of the STAR Market, so it chose the BSE, which has relatively more moderate requirements and is more inclusive.
- Zhonglu Jiaoke:
- Background: Applied to the Shanghai main board in 2023, aiming to raise 430 million yuan, and withdrew its application in 2024.
- Current status: Switched to the BSE.
- Explanation: The main board typically favors large-cap stocks and traditional industry leaders. As a transportation technology company, Zhonglu Jiaoke may be more suitable for the BSE in terms of size or industry characteristics.
Why choose the BSE?
1. Entry barriers: The BSE has more flexible requirements for revenue and net profit compared to the STAR Market/main board, placing more emphasis on growth potential.
2. Review efficiency: The BSE's review process is more standardized and more favorable for "ZJTXIN" enterprises.
3. Valuation logic: On the STAR Market/main board, if the performance isn't extremely impressive, the valuation may not be high; on the BSE, as "small giants," they are more likely to receive a premium valuation.
Note: Although they withdrew their applications before, the narrowing of losses and revenue growth (e.g., Mulei Laser's net profit increased by 215%) show that their fundamentals are healthy. The pause was probably due to market sentiment or changes in regulatory direction, and now it's time to restart.
5. What's the impact on ordinary investors and the market?
- Continuous "fresh blood" for the BSE: 223 companies promoting this year means that there will be a large number of new listings on the BSE in the next one to two years. This is a significant positive for the BSE's liquidity and activity. The BSE was previously criticized for poor liquidity and a lack of stocks, but now with a sufficient reserve force, the market has more options.
- Changing investment logic: If you invest in the BSE, don't just focus on the already listed large companies. Pay attention to the "ZJTXIN" small giants in the Innovation Layer.
- Look at R&D: Companies with high R&D expenses have strong potential for growth in the future.
- **Consider the "switchers": Those that came from the STAR Market/main board have often gone through stricter reviews, have better financial compliance, and have real performance growth (e.g., Mulei Laser), making their risks relatively controllable.
- Policy indicator: The state is actively promoting the listing of "ZJTXIN" enterprises, with the BSE being the main platform. These 12 companies represent the direction of policy encouragement: manufacturing, high technology, and high growth. In the future, such companies will receive more policy support and capital favor.
💡 In One Sentence
The promotion of these 12 companies to the Innovation Layer is not only a step forward for them but also a signal that the BSE's listing path is becoming even smoother. For those considering investing in the BSE, companies with the combination of "ZJTXIN," "high growth," and "failed attempts to list on higher-level boards" are worth further investigation.