Notice of Huadu District Bureau of Science, Industry, Commerce and Information Technology of Guangzhou Municipality on Issuing Management Measures of Guangzhou Huadu District for Promoting the High-quality Development of Incubation Carriers for Science and Technology Enterprises

All towns (sub-districts), management committees and all units directly under the district,

Management Measures of Guangzhou Huadu District for Promotingthe High-quality Development of Incubation Carriers for Science and Technology Enterprises has been approved by Huadu District People’s Government and is hereby issued to you for your compliance and implementation. Problems encountered in the implementation shall be directly reported to Huadu District Bureau of Science, Industry, Commerce and Information Technology.

Huadu District Bureau of Science, Industry, Commerce and Information Technology of Guangzhou Municipality

March 11, 2022

Management Measures of Guangzhou Huadu District for Promoting the High-quality Development of Incubation Carriers for Science and Technology Enterprises

Chapter I General Provisions

Article 1 To implement Opinions of the State Council on Promoting High-quality Development of Innovation and Entrepreneurship and Upgrading “Mass Innovation and Entrepreneurship” (Guo Fa [2018] No. 32), Regulations of Guangzhou on Science and Technology Innovation, Management Measures of Guangzhou for Incubation Carriers for Science and Technology Enterprises (Sui Ke Gui Zi [2021] No. 5) and other relevant regulations, promote the high-quality development of incubation carriers for science and technology enterprises, build an excellent innovation and entrepreneurship ecosystem, and promote mass entrepreneurship and innovation to a new level, these measures are hereby formulated in light with the realities of Huadu District.

Article 2 The incubation carriers for science and technology enterprises herein include incubation carriers of various forms, such as maker space, science and technology enterprise incubators, and science and technology business accelerators. It is an important part of the incubation chain of science and technology enterprises, in addition to being an important platform to guide all kinds of talents to make innovation and start businesses, meet the needs of enterprises at varying growth stages, accelerate the transformation of scientific and technological achievements, cultivate emerging industries, and promote employment through entrepreneurship.

Article 3 The maker space serves entrepreneurs, entrepreneurial teams, and start-ups. Its main function is to provide workspace, cyberspace, social space, and resource sharing space, as well as low-cost, convenient, all-factor, and open incubation services.

Science and technology enterprise incubators (hereinafter referred to as“incubators”) aim to serve science and technology enterprises and are staffed by specialized service teams. Their main function is to provide physical space, shared facilities, technical services, consulting services, investment and financing, entrepreneurship counseling, resource match-making, and other services, so as to reduce the cost of starting a business, improve the survival rate of startups, and promote the growth of enterprises.

Science and technology enterprise accelerators (hereinafter referred to as“accelerators”) aim to serve high-growth science and technology enterprises. Their main function is to

facilitate science and technology enterprises to grow faster and stronger by providing them with sufficient development space, specialized technology platforms for small- and pilot-scale tests, and in-depth incubation services such as technology R&D, capital match-making, and market development.

Article 4These Measures are applicable to the incubation carriers for science and technology enterprises with a sound financial system, independent legal personality, and independent accounting, whose place of registration, tax collection, administration relationship, and statistical relationship shall all be within Huadu District.

Chapter II Reward Scope and Standards

Article 5 Cultivation rewards. For accelerators, incubators, and maker space which have been recently established as incubation carrier cultivation organization of Guangzhou Science and technology enterprises, and who also have participated in Torch Statistics and passed the audit in that very year, a one-off reward of RMB 80,000, RMB 50,000 and RMB 30,000 will be given respectively.

Incubation carriers established as Guangzhou cultivation organizations will be automatically included in the management scope of incubation carriers of district-level science and technology enterprises.

Article 6 Reward for recognition. For newly recognized national, provincial and municipal-level incubators, a one-off reward of RMB 1 million, RMB 500,000 and RMB 250,000 will be given respectively. For newly recognized national and provincial-level maker spaces, a one-off reward of RMB 200,000 and RMB 100,000 will be given respectively. For recognitions obtained level by level, the difference in reward amount will be given.

Article 7 Reward for evaluation. An evaluation indicator system for the incubation carriers for science and technology enterprises at the district level shall be set up to regularly evaluate such incubation carriers included in the district level management scope according to the said system, where rewards will be given according to evaluation results. The reward standard is as follows: the first grade is RMB 100,000, and the number of reward winners shall be no more than 15% of the total of accelerators, incubators, and maker spaces participating in the evaluation; the second grade is RMB 50,000, and the number of reward winners shall be no more than 50% of the total of accelerators, incubators and maker spaces participating in the evaluation.

Article 8 Reward for the production of graduated enterprises. For each graduated enterprise recognized at the national, provincial, and municipal level, a one-off reward of RMB 50,000 will be given to the incubator. Where a graduated enterprise has gained recognition at multiple levels, its incubator will be rewarded once only. Such reward shall not exceed RMB 1 million for each incubator per year.

Article 9 Incentives for investment and financing. The capitalization of incubation carriers for science and technology enterprises shall be encouraged to boost the capital-driven development and optimize the financial ecology for incubation carriers. Incubation carriers are encouraged to, by means of rental, equipment and currency investments, invest in or introduce social investment to their startups, to promote the change of the operation management mode of incubation carrier from basic service type to investment service type, and the profit-making mode from property rental income type to the enterprise-invested income type.

Where an incubation carrier has invested over RMB 100,000 in a start-up, after such start-up is recognized as a high-tech enterprise, the incubation carrier will be given a one-off reward at 5% of the actual investment.

Where an incubation carrier has introduced a social investment of over RMB 500,000 in a start-up, after such start-up is recognized as a high-tech enterprise, the incubation carrier will be given a one-off reward of RMB 50,000.

Such reward shall not exceed RMB 1 million for each incubation carrier per year.

Article 10 Subsidies for site reconstruction and construction. Functional transformation and revitalization are encouraged to be performed on office buildings, old plants, and vacant plants with low utilization rates, so as to create benchmark incubation carriers for innovation and entrepreneurship and promote the development of industrial talents.

Where a site reconstruction project is recognized as a provincial-level incubation carrier for science and technology enterprises, a one-off post-project subsidy will be given at not more than 30% of the total investment in construction (including investment in building construction, building fitting-up, innovation, and entrepreneurship environment improvement in the park, etc.). Such reward shall not exceed RMB 3 million for each incubation carrier.

Article 11 Subsidies for undertaking major innovation and entrepreneurship activities. Incubation carriers for science and technology enterprises are encouraged to undertake major innovation and entrepreneurship activities such as innovation and entrepreneurship competitions, high-end forums, and industry summits. Based on the influence, scale, and effect of each activity, where the expenditure (deducting the part funded by the government) is over RMB 200,000, upon the approval of the district authorities in charge of science and technology, the actual total amount incurred (deducting the part funded by the government) will be subsidized at no more than 30% thereof, and such subsidy for each activity will be no more than RMB 300,000.

Chapter III Supplementary Provisions

Article 12 The use and management of funds referred hereto shall comply with relevant laws, regulations, and policies, and shall be executed with strict implementation of the financial fund management system and subject to the supervision of financial, audit, supervision, and other departments.

Those who enjoy the support of these Measures shallrun their business according to law and sign a letter of commitment. If any support recipient is found to be subject to administrative penalties due to illegal operation or breach of commitment, it shall be disqualified for the support immediately, all supporting funds issued shall be recovered (if applicable), and such violation will be filed in its credit record and announced to the public.

Article 13Where any matter or project meets the provisions hereof is qualified for other supporting policies and regulations of Huadu District (including the policies and regulations which the superior authorities require the district to support or bear funds), with the approval of the authorities of science and technology of the district, support will be rendered in accordance with the policy that grants the largest subsidy, unless it is otherwise specified.

Article 14In these Measures, the words “over”, “no more than” and “up to” shall be inclusive of the amount immediately following these words, and the currency of the amount involved shall be RMB.

Article 15 Given the lagging nature of fund allocation, any reward and support occurring within the validity period of these measures can make application within one year after the expiration of the said period.

Article 16 These Measures shall come into force on the date of promulgation and remain in force for 3 years. In case of expiry of the Measures or any changes to relevant laws, regulations or policies, these Measures will be evaluated and revised according to the implementation situation.

Form of Disclosure: Active Disclosure