Hua Fu Ban Gui [2022] No. 2

Notice of General Office of Huadu District People’s Government of Guangzhou on Issuing Three-Year Action Plan (2022-2024) of Huadu District for Cultivation of Specialized and Sophisticated Small- and Medium-sized Enterprises

All town governments (street offices) and organs directly under Huadu District:

　　Three-Year Action Plan (2022-2024) of Huadu District for Cultivation of Specialized and Sophisticated Small- and Medium-sized Enterprises has been approved by Huadu District Party Committee and Huadu District People’s Government, and is hereby issued to you for your compliance and implementation. Problems encountered during implementation shall be directly reported to Huadu District Bureau of Science, Industry, Commerce and Information Technology.

General Office of Huadu District People’s Government of Guangzhou

June 27, 2022

Three-year Action Plan (2022-2024) ofHuadu District for Cultivation of Specialized and Sophisticated Small- and Medium-sized Enterprises

　　In order to carry out General Secretary Xi Jinping’s important directives on the cultivation of a number of specialized and sophisticated small- and medium-sized enterprises (SMEs), implementMinistry of Finance and the Ministry of Industry and Information Technology’s Notice ofSupporting High-quality Development of Small- and Medium-sized Enterprises (Cai Jian [2021] No. 2) and the Three-Year Action Plan (2022-2024) of Guangzhou Municipality for Cultivation of Specialized and Sophisticated Small- and Medium-sized Enterprises(Sui Fu Ban Gui [2022] No. 4) as well as other relevant requirements, align with the national, provincial and municipal cultivation and identification work for specialized and sophisticated SMEs, speed up the cultivation of a number of specialized and sophisticated SMEs with fast growth, strong innovation capabilities, high operation quality and good economic benefits, and improve both quantity and quality of specialized and sophisticated SMEs in Huadu District, this Plan is hereby formulated in light of the realities of Huadu District.

　　I. Work Objectives

　　Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and focusing on the high-quality development of SMEs and the construction of a new development pattern of double circulation, the work aims to support SMEs in Huadu District to go specialized, refined, special and innovative, and improve the gradient cultivation system for SMEs in Huadu District. More specifically, efforts should be made to cultivate a group of specialized and sophisticated SMEs that focus on segmented markets, feature strong innovation capabilities, excellent quality and efficiency, occupy a high market share and master key core technologies. These outstanding SMEs will boost the basic industrial capacity and industrial chain level of the district, promote the high-quality development of SMEs, and thus make greater contributions to the high-quality economic growth of the district.

　　Our goal is that by 2024, we will have 350 specialized and sophisticated SMEs at or above the municipal level in Huadu District. By then, the numbers of national-level specialized and sophisticated “little giant” enterprises and provincial-level specialized and sophisticated SMEs will be doubled; there will be over 50 specialized and sophisticated SMEs at or above the provincial level, and over 300 municipal-level specialized and sophisticated SMEs in the district.

　　II. Main Tasks

　　(I) Gradient cultivation. An incubator for specialized and sophisticated companies with a capacity of not less than 200 enterprises and a gradient cultivation system shall be built. Dynamic adjustments shall be made every year, and a batch of seed enterprises with great development potential will be introduced according to their eligibility, business specifics, innovation capabilities, etc. According to the overall goal of the gradient cultivation plan, a dynamic management mechanism shall be established and improved step by step and a closed-loop management system shall be formed to boost the cultivation efficiency. Model setting and quality improvement actions shall be carried out, with a focus on supporting the specialized and sophisticated enterprises at the municipal level and above in Huadu District to obtain titles at higher levels. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(II) Innovation driving. Enterprises shall be supported to apply for provincial and municipal special projects for technological transformation, and encouraged to use advanced and applicable technologies such as intelligence application, informatization and networking, as well as new processes, equipment and materials, so as to improve intelligent manufacturing, promote the upgrading of traditional manufacturing to intelligent, green and service-oriented manufacturing. Enterprises in the incubator shall be guided to connect with multi-level capital markets, and to apply for “advanced, precise and cutting-edge” enterprises, “seed unicorn” enterprises, “future unicorn” innovative enterprises, and “unicorn” innovative enterprises of Guangzhou. Specialized and sophisticated SMEs shall be encouraged to participate in the “Maker China” SMEs Innovation and Entrepreneurship Competition, professional competitions in the digital economy and China Innovation and Entrepreneurship Competition (Guangzhou). Efforts shall be made to cultivate and support a number of excellent “entrepreneurship and innovation” projects and teams of specialized and sophisticated SMEs. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(III) Market development. Specialized and sophisticated SMEs shall enjoy priority in being recommended when they apply for the Guangdong Province SME service coupons. Specialized and sophisticated SMEs shall be organized to participate in exhibitions and those with excellent performance will be granted financial rewards. They shall also be encouraged and guided to participate in launch events for new specialized and sophisticated products, and organized to participate in comprehensive exhibitions and various famous brand exhibitions at home and abroad every year. Enterprises shall be encouraged to participate in specialized and industrial exhibitions such as China International Small and Medium Enterprises Fair, APEC Small & Medium-sized Enterprises Technology Conference, etc. Based on development demand, match-making activities shall be held to support cooperation projects between potential specialized and sophisticated enterprises and large- and medium-sized enterprises from time to time, and to promote the establishment of specialized cooperation and supporting relationships between small-, medium and micro-sized enterprises and leading enterprises. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(IV) Brand promotion. Specialized and sophisticated SMEs shall be urged to implement brand development strategies, set up and improve their quality management systems, and improve their product quality control ability and brand cultivation and creative ability. They shall be supported to make trademark registration and rights protection at home and abroad and to cultivate and develop modern service industry trademarks. Efforts shall be made to assist Guangzhou Municipal Industry and Information Technology Bureau in promoting the campaign of “strengthening enterprises and increasing efficiency” and try to get more quota thereof, so as to provide more specialized and sophisticated SMEs with technical diagnosis and improvement services and help them find out their management and technical defects, solve their bottlenecks, and strengthen their internal competitiveness. Enterprises shall be guided to actively participate in centralized media publicity and other activities, and through the match-making by the government, to negotiate and cooperate with media in a packaged way and carry out special publicity and promotion activities for specialized and sophisticated demonstration enterprises. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology and Huadu District Administration of Market Supervision)

　　(V) Digitalization enabling. Preferential recommendations shall be given to enterprises in the incubator to apply for such titles as demonstration enterprises of deep integration of industrialization and informatization, pilot enterprises of deep integration of industrialization and informatization, national high-tech enterprises, and demonstration enterprises with intellectual property advantages. Efforts shall be made to promote digital transformation and upgrading of a number of intelligent manufacturing enterprises through scientific and technological innovation, demonstration of deep integration of industrialization and informatization, and protection of intellectual property rights.  Digital and intelligent tools shall be rendered to support these enterprises in R&D, design, manufacturing, operation management and other processes, so as to improve their products’ quality and added value, and boost their capacities of lean production, agile manufacturing and fine management. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(VI) Financing facilitation. Specialized and sophisticated SMEs shall be supported to directly raise funds in the capital market. Batch fundraising services shall be promoted among specialized and sophisticated enterprises, and banks shall be encouraged to launch dedicated products for specialized and sophisticated SMEs. The role of local financial organizations, such as those offering small loans, financial guarantees, financial leasing and commercial factoring, shall be brought into full play. Local financial institutions of all kinds shall be encouraged and guided to strengthen their services for specialized and sophisticated SMEs. More interpretation and application guidance of SME preferential loan discount policies at the provincial and municipal levels shall be provided to specialized and sophisticated SMEs, in an effort to help them reduce costs and increase their impetus. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology, Huadu District Bureau of Financial Affairs, and Huadu District Federation of Industry and Commerce)

　　III. Cultivation Measures

　　(I) Reward for introduction. For national-level specialized and sophisticated “little giant” enterprises that move into the district from outside Guangzhou, a one-time reward of RMB 500,000 yuan will be given, after they sign the contract and complete business registration in the district. For provincial-level specialized and sophisticated SMEs that move into the district from outside Guangzhou, a one-time reward of RMB 100,000 yuan will be given, after they sign the contract and complete business registration in the district. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(II) Reward for enterprise recognition. National-level specialized and sophisticated “little giant” enterprises shall be supported to apply for the title of key “little giant” enterprises, so that they can enjoy the special reward and subsidy policy of the central government. For newly recognized national-level specialized and sophisticated “little giant” enterprises, and provincial-level specialized and sophisticated SMEs, a one-time reward of RMB 500,000 yuan and RMB 100,000 yuan will be given respectively. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(III) Reward for growth breakthroughs. Specialized and sophisticated SMEs will be rewarded up to RMB 500,000 yuan and RMB 1 million yuan respectively when their annual operating income exceeds RMB 1 billion yuan and 2 billion yuan for the first time. The reward fund shall be used by the enterprise in a well-organized manner, and shall be used preferentially to cover their costs of production, operation, building construction, equipment investment, etc. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(IV) Reward for listing. Newly settled or existing specialized and sophisticated SMEs in the district can enjoy a district-level reward of RMB 10 million yuan for getting listed on the domestic main board, SME board and ChiNext. Newly settled or existing specialized and sophisticated SMEs in the district can enjoy a district-level reward of RMB 5 million yuan for getting listed on the STAR market. For those that manage to get listed on an overseas capital market, upon the recognition by the district leading group for green enterprise listing, a district-level reward of RMB 8 million yuan will be given. Newly settled or existing specialized and sophisticated SMEs in the district can enjoy a district-level reward of RMB 1 million yuan for getting listed on the National Equities Exchange and Quotations. (Responsible organ: Huadu District Bureau of Finance)

　　(V) Reduction of financing costs. For enterprises eligible for the gradient specialized and sophisticated SME incubator of the district, preferential recommendation will be given to enter the district Zhubaodai list (Zhubaodai: a loan where the local government and banks jointly select enterprises to form an “SME pool”, and the risk compensation funds provided by the government and the guarantee funds paid by enterprises jointly form a “guarantee pool” for risk mitigation. Also, subsidies shall be granted regarding the interest generated from loans obtained through Zhubaodai of Huadu District; the subsidy rate, however, shall not exceed the benchmark interest rate of bank loans in the same period, and the maximum subsidy amount shall be RMB 500,000 yuan per enterprise per year. Relying on the financing match-making system of Guangzhou Green Finance Reform and Innovation Pilot Zones and so on, financing activities shall be regularly organized among governments, banks and enterprises. Financial institutions shall be guided to make innovations over their financial products and services, and focus on supporting and solving the financing demand of enterprises in the gradient specialized and sophisticated SME incubator of Huadu District. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology and Huadu District Bureau of Finance)

　　(VI) Preferential electric supply. National-level specialized and sophisticated “little giant” enterprises shall be recommended to be included in the list of enterprises with high priority for power consumption, and provincial specialized and sophisticated SMEs, in the list of “Class A” enterprises for power consumption. This will encourage these enterprises to speed up production and improve their quality and efficiency. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　(VII) Support for innovation and development. Scientific and technological innovation reward. For specialized and sophisticated SMEs that won the National Science and Technology Progress Award in the previous year, the winner of the first prize will be awarded RMB 500,000 yuan, the second prize, RMB 400,000 yuan, and the third prize, RMB 300,000 yuan. For specialized and sophisticated SMEs that won the Guangdong Provincial Science and Technology Progress Award in the previous year, the winner of the first prize will be awarded RMB 400,000 yuan, the second prize, RMB 300,000 yuan, and the third prize, RMB 200,000 yuan. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology). Enrollment in public schools. For a national-level specialized and sophisticated “little giant” enterprise, three spots for enrollment in the public schools in Huadu District at the compulsory education stage may be granted for its employees’ children; for provincial-level specialized and sophisticated SMEs, two spots for enrollment in the public schools in Huadu District at the compulsory education stage may be granted for its employees’ children. In such cases, the very enterprise shall submit the enrollment list and certification documents of the current year. If such an enterprise has already obtained the enrollment quota for children for district key enterprises to attend the beginning grade of compulsory education, as approved by the district government, only the higher quota will be available and the quotas shall not be accumulated. In principle, employees enjoying the quota shall have signed a formal labor contract with the enterprise and have been paying social insurance under the enterprise continuously for half a year. (Responsible organ: Huadu District Bureau of Education). Household registration. According to the household registration quota of talents of the quantity-controlled category in Guangzhou in the very current year, and in combination with the annual work implementation plan, each national-level specialized and sophisticated “little giant” enterprise will be given no more than 3 annual household registration quota for its employees per year, and each of provincial-level specialized and sophisticated SMEs, no more than 2. (Responsible organ: Huadu District Bureau of Human Resources and Social Security). Cultivation of leading talents. By way of a combination of centralized training with learning and practice, that of classroom teaching with practical application, etc., and focusing on the key areas and weak links of operation and management of specialized and sophisticated SMEs, efforts shall be made to improve the professional quality and level of business managers. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology). Priority for entry into talent clubs. Senior managers, senior technicians and outstanding contributors of specialized and sophisticated SMEs as well as high-level talents from enterprises in the incubator will enjoy priority in entering Hitalent Club Huadu, Guangzhou to receive focused development support. (Responsible organ: Huadu District Bureau of Human Resources and Social Security)

　　(VIII) Strengthened land and housing support. Comprehensive investigation shall be conducted on the demand of specialized and sophisticated SMEs above the provincial level for land use, capital increase and production expansion. Classified policies shall be implemented for investment promotion projects and capital increase and production expansion projects, and a joint investment promotion mechanism shall be implemented across the district government, industrial parks and business associations. When arranging land supply plans, priority shall be given to meeting the land demand of specialized and sophisticated SMEs, and such land supply shall take up at least 20% of the total amount. (Responsible organ: Huadu District Branch of Guangzhou Municipal Planning and Natural Resources Bureau, Huadu District Bureau of Housing and Urban-Rural Construction, Huadu Development Zone Management Committee, and Huadu District Bureau of Science, Industry, Commerce and Information Technology). The land demand of specialized and sophisticated SMEs at or above the provincial level shall be given priority in land supply plans; the demand of specialized and sophisticated SMEs shall be sub-divided with a batch of medium- and small-sized industrial plots being supplied; land transfer specific to a project is encouraged; promotion shall be made to combine and simplify the handling of construction land planning permit, construction project planning permit and construction permit. The output value and tax standard can be reduced by no more than 30% when transferring land and industrial houses to national-level specialized and sophisticated “little giant” enterprises. (Responsible organ: Huadu District Branch of Guangzhou Municipal Planning and Natural Resources Bureau, Huadu District Bureau of Housing and Urban-Rural Construction, and Huadu Development Zone Management Committee). On the premise of conforming to plans and not changing the intended purpose, specialized and sophisticated SMEs shall be encouraged to improve the floor area ratio and utilization efficiency through plant reconstruction, floor increase, etc., where the difference in land prices will not be additionally charged, thus promoting industrial enterprises to improve the efficiency of land use and the level of economical and intensive use. (Responsible organ: Huadu District Branch of Guangzhou Municipal Planning and Natural Resources Bureau, and Huadu District Bureau of Housing and Urban-Rural Construction). Priority shall be given to supporting specialized and sophisticated SMEs above the provincial level who are in urgent need of talents to apply for talent apartments; up to 15 talent apartments will be allocated to newly recognized national-level specialized and sophisticated “little giant” enterprises. (Responsible organ: Huadu District Bureau of Housing and Urban-Rural Construction, Huadu District Bureau of Human Resources and Social Security, Huadu Development Zone Management Committee, and Huadu Auto City Management Committee).

　　(IX) Supply of service resources. Efforts shall be made to integrate various service resources to provide enterprises in the incubator with technical innovation, talent cultivation, transformation and application of innovative achievements, digital intelligent transformation, intellectual property application and other public services. National-level specialized and sophisticated “little giant” enterprises will be brought under the specific attention of district leaders, who will make efforts to support the enterprises, explain enterprise-related policies to them, and help them solve difficulties and problems through coordination. A regular communication channel between enterprises and the government shall be established. Specialized and sophisticated SMEs above the provincial level will be directly recommended to enter the “Kunpeng Plan” of Huadu District to enjoy corresponding support measures. Recruitment and employment facilitation. Efforts shall be made to conduct active match-making events, open up a recruitment green channel for specialized and sophisticated SMEs, launch large online job fairs for specialized and sophisticated SMEs above the provincial level every year, and establish an online “face-to-face” recruitment match-making platform for enterprises and job seekers. The recruitment information of specialized and sophisticated SMEs above the provincial level shall be given higher priority to be pushed and posted on top on the official WeChat official account of Huadu District Bureau of Human Resources and Social Security, thus facilitating specialized and sophisticated SMEs in talent recruitment. (Responsible organ: Huadu District Bureau of Science, Industry, Commerce and Information Technology, and Huadu District Bureau of Human Resources and Social Security)

　　(X) Promotion of entrepreneurship. The promotion of entrepreneurship shall be strengthened. When recommending candidates for Party representatives at various levels, deputies to the People’s Congress, members of the CPPCC and members of leading bodies of people’s organizations, in the case of the same conditions, priority should be given to main leaders of specialized and sophisticated SMEs above the provincial level. This will help create a social atmosphere that respects and encourages entrepreneurs to start and run their own businesses. (Responsible organ: United Front Work Department of Huadu District Party Committee, and Huadu District Bureau of Science, Industry, Commerce and Information Technology)

　　IV. Supporting Measures

　　(I) Strengthening organizational leadership. The role of Huadu District’s leading group in promoting the development of SMEs (private economy) shall be fully brought into play to coordinate problems arising during the development of specialized and sophisticated SMEs in Huadu District. Each responsible organ shall specify the assigned leader in charge and the specific responsible person, with responsibilities being specified and implemented level by level and the tasks assigned to specific persons. These organs shall stress the key points, implement policies in a comprehensive way and make target-specific efforts, jointly promoting the cultivation of specialized and sophisticated SMEs to ensure the completion of the work objectives.

　　(II) Establishing a gradient cultivation mechanism. By constantly improving the working mechanism for the cultivation and recognition of specialized and sophisticated SMEs, the cultivation objectives and measures shall be further defined, so as to form a gradient cultivation system that organically aligns with the cultivation systems of specialized and sophisticated SMEs at municipal, provincial and national levels.

　　(III) Strengthening dynamic management. Efforts shall be made to establish and improve the dynamic management system of specialized and sophisticated SMEs, track and control the development trends and growth of specialized and sophisticated SMEs, entrust a third-party evaluation institution to conduct a comprehensive evaluation on the development of specialized and sophisticated SMEs, and solve the problems in their development process. A number of typical development cases shall be selected every year to set a benchmark for the development of specialized and sophisticated SMEs in Huadu District.

　　(IV) Strengthening targeted services. Targeted policy interpretation, industry guidance, information exchange, policy implementation, project approval, talent services and other services shall be rendered to enterprises. Efforts shall be made to identify and solve the difficulties in the development of enterprises in a timely manner. Targeted assistance service measures based on “enterprise-specific policy” shall be provided to the particularly outstanding specialized and sophisticated SMEs that are dedicated to solving bottleneck problems.

　　(V) Strengthening publicity and guidance. More efforts shall be made to summarize the experience of specialized and sophisticated SME cultivation in a timely manner, set up a number of benchmarks and models for specialized and sophisticated SMEs in Huadu District, make full use of various media resources, strengthen the promotion of typical cases, focus on the publicity of the innovative spirit and outstanding contributions of specialized and sophisticated SMEs, and guide and drive the high-quality development of SMEs in the district.

　　V. Other Matters

　　(I) Where any project or matter that meets the requirements herein meets the requirements in other support policies of Huadu District (including policies of supporting or undertaking funds required of Huadu District by superior departments), support will be given in accordance with the policy that grants the largest subsidy, unless it is otherwise specified.

　　The use and management of funds referred to herein shall conform to relevant laws, regulations and policies, and be subject to with the strict financial fund management system, as well as the supervision of financial, audit, supervision and other departments.

　　(II) Those who enjoy the cultivation measures herein shall sign the relevant commitment letter and fill in the relevant information truthfully. Enterprises that cheat to obtain funds or violate their commitments shall voluntarily return the support funds thus obtained. Relevant departments shall publicize the enterprise’s dishonesty according to law and notify relevant departments in the district. If a crime is constituted, criminal responsibility shall be investigated according to law.

　　(III) The words and expression “over”, “not more than” and “up to”/“maximum” herein shall be inclusive of the amount following them, and the currency of the amount involved shall be RMB.

　　(IV) In view of the lagging nature of fund allocation, any reward and support occurring within the validity period of this Plan can be applied for within one year after the expiration of the said period.

　　(V) This Plan shall come into force from the date of its issuance and shall be valid until December 31, 2024.

Form of Disclosure: Active Disclosure

CC: All departments, commissions, offices and bureaus of Huadu District, Office of the Standing Committee of Huadu District People’s Congress, Office of Huadu District CPPCC, Huadu District Discipline Inspection Commission Office, Huadu District People’s Court, Huadu District People’s Procuratorate, Huadu District Federation of Industry and Commerce, Guangzhou Huadu Power Supply Bureau, and people’s organizations.

Secretariate of General Office of Huadu District People’s Government of Guangzhou                               Issued on July 6, 2022