To meet the profit test, a new applicant must have an adequate trading record under substantially the same management and ownership. This means that the issuer, or its group (excluding any associated companies and other entities whose results are recorded in the issuer’s financial statements using the equity method of accounting), as the case may be, must satisfy each of the following:

① a trading record of not less than three financial years during which the profit attributable to shareholders must, in respect of the most recent year, be not less than HK$35,000,000 and, in respect of the two preceding years, be in aggregate not less than HK$45,000,000. The profit mentioned above should exclude any income or loss of the issuer, or its group, generated by activities outside the ordinary and usual course of its business;

② management continuity for at least the three preceding financial years;

③ ownership continuity and control for at least the most recent audited financial year.

① Stockholders’ Equity ≥ $5 million

② Market Value of Unrestricted Publicly Held Shares ≥$15 million

③ Operating History ≥ 2 years

④ Unrestricted Publicly Held Shares ≥ 1 million

⑤ Unrestricted Round Lot Shareholders ≥ 300

⑥ Bid Price ≥ $4

①Currently listed on OTC Pink, management has confidence to generate USD1.6 million annual net income

② Capable of paying USD200,000 (after tax) professional fees

① With real business, operations and venues even yet to generate net income

② Capable of paying USD800,000 (after tax) professional fees

If clients want to get listed in Hong Kong but can only meet OTC Pink requirements, we can help clients to first list on OTC Pink. Once the company has stronger fundamentals to uplist to QB, eventually NASDAQ main board, we will help them to dual list back in Hong Kong.