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Two more “new three board” companies have withdrawn their Initial Public Offering applications, adding to a total of 19 application withdrawals so far, exceeding the figure of last year, Yicai.com reported.

“New three board” is the National Equities Exchange And Quotations, a Chinese over-the-counter system for trading shares of public limited companies that are not listed on stock exchanges in Shenzhen and Shanghai.

Recently, many companies have chosen to voluntarily withdraw their IPO applications because of declining performance, insufficient profit scale or inadequate management practices, the report said.

Some do not meet the conditions that recurrent net profit of the company in the last three years must not be less than 100 million yuan (US$15.82 million).

Also, according to the new regulations promulgated by the China Securities Regulatory Commission, companies must operate at least three years after their IPO applications have been rejected, before they can reapply.

This is considered to be one of the main reasons why firms actively withdraw their applications.