Non-public issuance of corporate bonds

Legal analysis: 1. The net assets of a joint stock limited company are not less than 30 million yuan, and the net assets of a limited liability company are not less than 60 million yuan. 2. The accumulated bond balance shall not exceed 43% of the company's net assets. The average distributable profit in the last three years is enough to pay the interest of corporate bonds for one year. 4. The investment of raised funds conforms to the national industrial policy. 5. The bond interest rate shall not exceed the interest rate level stipulated by the State Council. 6. Other conditions stipulated by the State Council.

Legal basis: Measures for the Administration of Issuance and Trading of Corporate Bonds

Article 26 Non-public corporate bonds shall be issued to qualified investors, and advertising, public offering and disguised publicity shall not be used, and the number of issuers shall not exceed 200 at a time.

Article 27 Issuers and underwriting institutions shall, in accordance with the investor suitability system stipulated by the China Securities Regulatory Commission and the securities self-regulatory organization, understand and evaluate the ability of investors to identify and bear the risks of non-public issuance of corporate bonds, confirm that investors who participate in the subscription of non-public issuance of corporate bonds are qualified investors, and fully disclose that risk underwriting institutions shall follow the investor suitability system stipulated by the China Securities Regulatory Commission and the securities self-regulatory organization. Whether the public offering of corporate bonds is subject to credit rating shall be determined by the issuer and disclosed in the prospectus.

Article 28 Whether a non-public offering of corporate bonds is subject to a credit rating shall be determined by the issuer and disclosed in the prospectus.

Twenty-ninth non-public issuance of corporate bonds, underwriting institutions or issuers in accordance with the provisions of Article 33 of these measures, should be within five working days after each issue to the China Securities Association for the record.