The China Securities Regulatory Commission has turned down four out of seven IPO applications and given the green light to the rest during its recent meeting on Wednesday, the China Securities Journal reported.

According to Wind terminal, so far this year, 307 out of 376 IPO applications passed the commission with a success rate of 82%. On the other hand, 52 companies failed, eight firms withdrew from the review and nine applications were postponed.

The three companies that were rejected are Zhuhai Saiwei Electronic, Zhiye Software and Guiyang Century Hengtong Technology, the report said.

A common feature of these companies is that their annual net profit stood at less than 30 million yuan. According to an insider, the 30 million yuan threshold of net profit is a critical criteria for the commission.

While a source in the commission said companies will have a better chance to pass the IPO review if their net profits surpass that mark, it doesn’t necessarily mean they won’t be rejected. IPO review is considered a systematic work, he said.