One-Stop Services - Going listing

Along with the rapid development of Chinese economy, more and more companies are considering going listing. In this respect, we have provided pre-IPO finance and tax services to companies seeking being listed in domestic or overseas stock exchanges andhave gained abundant experience. Usually, domestic pre-IPO companies may encounterfollowing financial or tax-relatedissues:

-Financial statements, especially the basic and scope of consolidatedfinancial statementsare not compliant withregulations of relevant stock exchanges or regulators when they are seeking overseas listing.
-the criteria of revenue recognition or cut-off issue
-Inadequate provision of asset impairment
-Unreasonable treatment of capitalization vs.expenses
-accounting and tax traceability of cash basis items
-Reasonableness of related party transactions and shareholder loan and transfer pricing issue
-financial or accounting risks due to the lack of sound internal control system
-how to establish the holding structures and optimize tax to meet IPO requirements
-tax issues relating to corporate restructuring for the purpose of IPO.
-Remedy to historical tax incompliance and solution toprior tax dispute and insufficient tax internal controls.

-valuation of stock option incentives and tax and legal issues of held-on-behalf shares
-how to keep long-term tax compliance, especially after being listed and under public supervision along with the on-going development of tax regulations

Usually we will suggest clients perform a thorough analysis,identify the key problems and the unutilized opportunitiesin advance, and formalize and implement action plans by referencing to advanced experiences and successful cases of other companies. During the courses, we can provide relevant financial or tax services as needed or act as the one-stop financial or tax advisorof clients. In addition, we are keeping close relationship with other agents such as accounting firms with security business qualification, law firms, investment banks and can jointly provide one-stop services to our clients. These services may include:

1. Financial advisory service

-provide consulting service on the IPO requirements of different domestic and overseas stock exchanges
-assist to contact and engage the investment bank
lawyer and other necessary agents(valuer, actuary,etc)
-assist to contact and engage CPA firm of IPO audit

2. Audit and financial consultancy services

-help review the finance records and other compliance documentsin accordance with IPO standards of relevant markets and raise recommendations to facilitate the IPO work in the future.
- to be engaged as the statutoryauditorof pre-IPO companiesduring the corresponding reporting period and offer the quality financial statements before going listing in order to minimize the difference between IPO reporting and statutory financial statements and enhance the competitiveness of the companies.
-assist the communication with the IPO auditor during IPO audit phase to facilitate the completion of the IPO audit

3. related tax consulting and implementation assistance services

-Assist companies to analyze targeted holding structure and management mode before going listing, corporate restructuring required for the desired structure(i.e. equity transfer, merger, de-registration, etc) and tax consideration relevant to the restructuring, and to quantify possible tax exposure.

-Assist companies to perform tax internal control review in advance to IPO restructuring to facilitate the identification of potential tax issues before application to tax authority and to find out possible tax planning opportunity.

-Analyze tax treatmentsafter the company is listed and identify possible tax planning opportunities, the purpose of which is to take these future tax exposures into accountbefore IPO restructuring andmodify restructuring plan to optimize the tax efficiency during and after IPO phases.
-assist companies to securefavorable tax treatment from tax authority during IPO restructuring.

Floor 13, Asia Mansion, 650
Hankou Road, Huangpu District,
Tel:+86(21)6135 6268
Fax:+86(21)6135 6267