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Policies of Competition

Notice of the Hengqin New Area Management Committee on Issuing the Provisional Measures for Hosting Innovation Competition and Rewarding the Winners with Gratis Funds in the Hengqin New Area
Interim Measures for Administration of Special Funds for Subsidization in R&D Expenses for Innovation and Entrepreneurship Competition of Hengqin New Area
Policy One

Notice of the Hengqin New Area Management Committee on Issuing the Provisional Measures for Hosting Innovation Competition and Rewarding the Winners with Gratis Funds in the Hengqin New Area

Article 1
A decision was taken by the Hengqin New Area to annually host international Innovation Competition with an aim of implementing the Several Measures for Practicing the ‘Zhuhai Talents Program’ and Gathering Innovative and Enterprising Personnel in the New Era (for Trial Implementation) (No.6〔2018〕), fostering an atmosphere of innovation and entrepreneurship in society, and accelerating the concentration of factors influential to innovation. and these Measures are formulated to standardize the organization and management of the Innovation Competition.
Article 2
A principle featuring fairness, openness and justice is followed when participating teams are judged. Gratis funds are given to the winners that run real businesses in the Hengqin New Area.
Article 3
As the sponsor of the competition, the Hengqin New Area Management Committee entrusts specialized institutions to organize the Innovation Competition and invites national technological experts, venture capitalists and industry economists to be the judges.
Article 4
The Innovation Competition focuses on emerging industries such as the information technology, biomedicine, digital economy, new materials, and marine economy. and teams that have made new achievements, and breakthroughs in core technologies and possessed industrial prospects are offered solid support.
Article 5
There are four sections in the Innovation Competition, namely online registration, review, assessment, and on-site defense. For further details, please refer to the official announcement.
Article 6
The number of the winners shall not be more than 10 each year, of which 1 is special winner, 2 are Class A winners, 3 are Class B winners and 4 are Class C winners.
Article 7
The level of funding (RMB): 100 million for special winners, 50 million for Class A winners, 20 million for Class B winners and 10 million for Class C winners.
Article 8
The winners shall also meet the following requirements to be eligible for the funds:
1) They have registered a real company with an independent legal person in the Hengqin New Area, carrying out research and development and office activities in development zones integrated with Hengqin, bonded zones and Hongwan Area, and make a commitment not to moving out within 8 years and changing tax liability.
2) They are a team with at least 1 leader and 2 key members. They make commitment to submitting patent applications in the Hengqin New Area and having their team members work full-time over 3 months within it.
3) They have gone through close scrutiny of third-party specialized institutions.
Article 9
The winners must sign a project cooperation agreement with the Hengqin New Area Management Committee. Both sides make a funding plan based on considerations of project progress and actual needs spending on research and development.
Article 10
The gratis funds for research and development are arranged by the Bureau of Commerce of the Hengqin New Area and shall be used for expenditures directly related to research and development activities such as talent introduction, equipment purchase, trial production of products, patent filing and testing. Using the funds for private consumption is not allowed.
Article 11
The winners are encouraged to apply for innovatory and technological projects supported by governments at municipal, provincial and state levels. If preferential policies on funding research and development are covered in governmental documents at different levels, enterprises may refer to the ones from higher-level governments.
Article 12
The power to interpret these Measures shall remain with the Hengqin Bureau of Commerce and the Department of the Party and Mass Affairs.
Article 13
These Measures shall come into force as of the date of release.

Policy Two

Interim Measures for Administration of Special Funds for Subsidization in R&D Expenses for Innovation and Entrepreneurship Competition of Hengqin New Area

Article 1
In order to regulate the use and management of the special funds for subsidization in research and development expenses (hereinafter referred to as “special funds”) as set forth in the “Interim Measures of Hengqin New Area for Holding Innovation and Entrepreneurship Competition and Subsidizing the Winning Teams in R&D Expenses”(Zhu Heng Xin Ban [2018] No. 11), and improve the utilization benefits of the funds, these interim measures are formulated according to the relevant provisions of the State, Guangdong Province, and Zhuhai City, in combination with the actual conditions of Hengqin New Area.
Article 2
The “special funds” referred to herein are intended for the global-oriented innovation and entrepreneurship competition held by Hengqin New Area once every year since 2018, with no more than 10 winning teams in the competition. Among others, 1 special-grade winning team will be subsidized with RMB 100 million; 2 first-grade winning teams will be subsidized with RMB 50 million respectively; 3 second-grade winning teams will be subsidized with RMB 20 million respectively; and 4 third-grade winning teams will be subsidized with RMB 10 million respectively.
Article 3
A winning team shall incorporate an entity enterprise with independent legal personality in Hengqin New Area(hereinafter referred to as “the enterprise”), and the enterprise shall enter into a project contract with Hengqin New Area Administrative Committee to define the annual performance goal and the relevant rights and obligations.
Article 4
The special funds shall be included in the annual departmental budget of the competent authorities.
Article 5
Before being awarded the special funds, a winning team must pass the due diligence of a third-party professional organization, and meet the other requirements as stipulated in the “Interim Measures of Hengqin New Area for Holding Innovation and Entrepreneurship Competition and Subsidizing the Winning Teams in R&D Expenses”.
Article 6
The special funds shall be allocated in the manner as agreed in the project contract entered into by the enterprise and Hengqin New Area Administrative Committee. In principle, according to the actual needs of the enterprise for investment in research and development expenses, the special funds will be allocated in three phases (in three years); in the first phase, the amount allocated shall not exceed 50% of the total amount.After signing the project contract and the site lease agreement, the first installment of the fund will be allocated.Before allocating the next installment of the fund, the enterprise shall establish a standardized financial management system, and the competent authorities shall supervise and evaluate the financial operation of the enterprise.
Article 7
As the organization using and managing the special funds, the enterprise shall formulate and improve the assessment and management system of finance, projects and annual tasks according to these measures, complete the use, management and self-evaluation of the funds, and take responsibility for the use and management of the funds.
Article 8
The “research and development expenses” refer to the expenses incurred in the research and development of products, technologies, materials, processes and standards, including:
(1) The costs of materials, fuel and power directly consumed in research and development activities;
(2) The wages, bonuses, subsidies, allowances, social insurance premiums, housing accumulation funds and other labor costs of in-service research and development personnel of the enterprise, as well as the labor costs of external research and development personnel;
(3) The development and manufacturing costs of molds and process equipment used for intermediate test and trial production of products, the charges for equipment adjustment and inspection, the purchase costs of samples, prototypes and general testing methods, and the inspection costs of trial-produced products;
(4) The charges for demonstration, review, acceptance and evaluation of research and development results, as well as the application fee, registration fee, agency fee and other fees for intellectual property;
(5) The expenses incurred by entrusting other units or individuals or cooperating with them for research and development by means of outsourcing or cooperative research and development;
(6) Other expenses directly related to research and development activities, including technical book and material fee, document translation fee, conference fee, travel expense, office expense, foreign affairs expense, training fee for research and development personnel, cultivation fee, expert consulting fee, and insurance premium for research and development of high and new technologies, etc.
For the conference fee, travel expense, and training fee directly related to research and development activities, the documents issued by the Ministry of Finance shall govern, including the “Notice on Issuance of the Measures for Administration of Conference Fees of Central and State Organs” (Cai Xing [2016] No. 214), the “Notice on Issuance of the Measures for Administration of Travel Expenses of Central and State Organs” (Cai Xing [2013] No. 531), the “Notice of the Ministry of Finance on the Issues concerning Adjustment of Standards for Travel and Accommodation Expenses of Central and State Organs” (Cai Xing [2015] No. 497), the “Notice on Issuance of the Measures for Administration of Training Fees of Central and State Organs” (Cai Xing [2016] No. 540), the “Notice on Issuance of the Measures for Administration of Funds for Temporary Overseas Business Trips” (Cai Xing [2013] No. 516), and the “Notice on Issuance of the Measures for Administration of Training Fees for Short-term Overseas Business Trips” (Cai Xing [2014] No. 4).
Article 9
The winning teams must use the special funds first for research and development. If the research and development expenditures are not needed, the winning teams may apply to Hengqin New Area Administrative Committee; after approval, by means of “one discussion for one project”, the teams may use the special funds in other ways, including but not limited to promotion of industrialized products in Hengqin, trial production and demonstration of the first unit (set) of products evaluated, and the services purchased by the government.
Article 10
Principles for use of the special funds
(1) Follow the principles of openness and transparency, overall consideration, special funds for special purposes, accounting by special accounts, scientific management, and strengthened supervision.
(2) The project budget system, the project operation contract system and the project results acceptance system must be strictly implemented.
(3) For all the projects of research and development or investment in cooperation with third party, it is necessary to do the benefit evaluation well, determine the cooperation mode by contract, and go through the procedures for asset delivery and asset registration in accordance with the provisions.
(4) Purchase instruments and equipment on the principle of “economical use and sharing first”, and use the equipment and services provided by the public service platform of Hengqin New Area as far as possible.
Article 11
The winning teams shall submit the work report of the previous year to the competent authorities in the first quarter of each year, and the report shall cover the project progress, the final accounting of special funds, and the results achieved in the previous year.The competent authorities shall have the right to entrust a third party to conduct performance evaluation or mid-term assessment on the projects in respect of technology, economic output, and other performances, and the enterprises shall actively cooperate to provide relevant data and documents.According to the results of evaluation, if an enterprise is found to be unable to fulfill the commitment as agreed, the competent authorities shall have the right to order the enterprise to make rectification within a time limit, suspend the allocation of the special funds for the next year, and shall have the right to unilaterally change or terminate the follow-up funding of the project depending on the seriousness of the case.
Article 12
The enterprises shall not spend the special funds beyond their scope, nor shall they occupy, withhold or misappropriate the special funds, and shall be subject to the supervision of competent authorities and the audit by auditing department.
Article 13
The enterprises shall submit the special fund use plan and other relevant documents to the competent authorities for recording prior to the first quarter of each year. While ensuring that the use of the funds conforms to laws and regulations, the expenditure progress of funds shall be accelerated to avoid idle funds. The utilization rate of the special funds in the current year shall not be lower than 85%.If the utilization rate of the special funds in the current year is lower than 85%, the competent authorities shall have the right to order the enterprise to make rectification within a time limit and suspend the allocation of the special funds for the next year.
Article 14
The enterprises shall employ a third party to audit the use of the special funds and submit the audit results to the competent authorities by the end of the first quarter each year.When necessary, the competent authorities shall also have the right to entrust a third party to audit the use of the special funds.The audit results will be used as the audit basis for the application of special funds issued in the current year.
Article 15
If an enterprise has any of the following acts, the competent authorities shall have the right to recover the special funds in part or in full as the case may be:
(1) Prepare and report a false plan for fund use, in order to get the supporting fund of Hengqin New Area;
(2) Fail to account the project separately and use the special funds for special purposes;
(3) Withhold, occupy, and misappropriate the funds of the project without authorization;
(4) Transfer the funds of the project without authorization;
(5) Provide false financial and accounting information;
(6) Other situations of use, misappropriation or embezzlement of supporting funds in violation of regulations.
Article 16
These interim measures shall be interpreted by the Commerce Bureau of Hengqin New Area.
Article 17
These interim measures shall come into effect from the date of issuance.