Notice on Issuing the Measures of Guangzhou Nansha New Area (Pilot Free Trade Zone) for Supporting the Development of Unicorn Companies

Normative Document No 1 [2022] of the Office of the Administrative Committee of Nansha Development Zone of Guangzhou Municipality

Notice on Issuing the Measures of Guangzhou Nansha New Area (Pilot Free Trade Zone) for Supporting the Development of Unicorn Companies

All towns (street communities), departments of and organs directly under Nansha Development Zone (Nansha district), and municipal entities in Nansha district,

The Measures of Guangzhou Nansha New Area (Pilot Free Trade Zone) for Supporting the Development of Unicorn Companies have been approved by the administrative committee and the district government and are hereby issued to you for your compliance and implementation. Problems encountered in the implementation shall be directly reported to the Nansha district bureau of commerce.

Office of the Administrative Committee of Nansha Development Zone of Guangzhou Municipality

General Office of Nansha district People's Government of Guangzhou Municipality

April 20, 2022

Measures of Guangzhou Nansha New Area (Pilot Free Trade Zone) for Supporting the Development of Unicorn Companies

In order to implement the guiding principle of the Sixth Plenary Session of the 19th CPC Central Committee and the national strategy of innovation-driven development, build Nansha into a critical contributor to the international scientific and technological innovation center in the Guangdong-Hong Kong-Macao Greater Bay Area and a key node along the Guangzhou-Shenzhen-Hong Kong-Macao scientific and technological innovation corridor, and provide new, strong impetus and support for Nansha's sci-tech innovation and quality industrial development by shaping an enabling policy environment that accelerates the introduction and growth of innovative, fast-growing unicorn companies (including prospective unicorn companies) capable of leading and bolstering industrial growth, these measures are hereby proposed in light of the realities of Nansha district.

1. Contribution rewards throughout growth stages. With a tiered support system built on the growth stages of unicorn companies, the Nansha district will grant enterprises dedicated funds each year to support them in industrial activities such as technological R&D, talent introduction, investment and financing, fixed asset investment, and senior executive cultivation. Newly introduced or recognized unicorn companies in the Nansha district shall be rewarded up to an accumulative total of 50 million yuan ($7 million) as they settle in, go public, and enlarge their scales.

2. Support for operation and management. Newly introduced or recognized unicorn companies shall be rewarded with up to 100 percent of their economic contribution to the district in the prior year. A unicorn company's senior executives and leading professionals shall be granted a reward of up to 100 percent of their individual economic contribution to the district in the previous year. In exercising stock options, lifting stock restrictions, and obtaining and disposing of equity-based incentives, senior executives and other employees of a listed unicorn shall be rewarded with up to 100 percent of their individual economic contribution to the district in the prior year.

3. Support for talent development. For unicorn companies, their projects led by high-caliber professional teams, empowered by world-leading technology, and advancing the development of Nansha's key industries shall be granted a financial support fund of up to 100 million yuan. Two high-caliber talent opportunities shall be provided to a newly introduced or recognized unicorn (one for a prospective unicorn). Such talents will be recommended by the company and each identified talent shall be granted a reward of 3 million yuan. Such opportunities shall be given to a listed unicorn, with a reward of 3 million yuan per person. To encourage talent introduction, the Nansha district will issue no less than 300 Guangzhou Talent Green Cards and provide at least 600 talent apartments each year.

4. Support for R&D and Innovation. For unicorn companies that have made an investment in their Nansha-based R&D teams, a subsidy shall be granted to cover 20 percent of their R&D spending in Nansha in the previous year as declared, subject to a maximum accumulative amount of 100 million yuan over a maximum period of three years. unicorn companies are encouraged to join hands with world-renowned universities, scientific research institutes, and large technology firms to create major R&D institutions and other high-end innovation platforms, with an aim to boost the district's pillar sectors.

5. Support for application scenarios. Nansha district will allocate a fund of no less than 1 billion yuan each year to build application scenarios for smart manufacturing, digital economy, financial technology, medical and healthcare services, urban governance, and commercial innovation. Unicorn companies based in Nansha shall be given priority to access data resources and promote their products and services, and enjoy major support for engaging in the district's demonstration projects and the large-scale application of innovative products.

6. Support from financial services. Companies managing venture capital funds registered with and operated in the Nansha district shall be rewarded with 5 percent of the actual value of their investment in unicorn companies. For each fund, such reward shall not exceed 3 million yuan per investment project per year. Where their sub-funds have invested in major unicorn companies strongly supported or encouraged by the district, guidance funds may invest in such companies via "follow-on investment". For enterprises acquiring branded, influential high-growth companies and premium projects with key technology, and M&A support fund of up to 20 million yuan shall be granted. For unicorn companies that have obtained financing loans with an over one-year term from the district's commercial banks, an interest subsidy shall be granted at 50 percent of the loan prime rate (LPR), with a period of up to three years for each discounted loan. Unicorn companies that raise capital through the issuance of such new bonds as "mass entrepreneurship and innovation bonds" and "green bonds" can enjoy a subsidy of 30 percent of the coupon rate of these bonds. They shall also be granted a subsidy of up to 60 percent of their science and technology insurance premiums.

7. Support for industrial carriers. For unicorn companies that rent office space, industrial premises, warehouses, and other types of land for their primary business or relevant scientific research, a subsidy shall be granted to cover 100 percent of the evaluated market price for renting venues, subject to a maximum amount of 5 million yuan each year and a maximum period of three years. If unicorns purchase office space for private use, a one-time subsidy of 2,000 yuan per square meter bought shall be offered, and the subsidy shall be no more than 10 million yuan and not exceed the unicorns' actual expenditures. Unicorn companies shall be encouraged to build carriers for their corporate headquarters through new industrial land (M0) policies, cooperation on commercial projects, and urban renewal. 

8. Support for the industrial ecosystem. Enterprises and third-party institutions in Nansha are encouraged to recommend unicorn companies to settle in the district, and a reward of up to 5 million yuan shall be granted for every successful recommendation of a unicorn's headquarters. Support shall be given for the construction of communication platforms for unicorn companies. Unicorns, high-end think tanks, and renowned institutional investors are encouraged to hold enterprise summits and industry conferences, and release research papers and rankings on regional, national, or global unicorn companies. The venue rentals of such events will be fully subsidized.

9. Support from government services. A mechanism for coordinating services shall be developed, together with the creation of a platform integrating the government and enterprises with professional service providers and its service group, with an aim to deliver unicorn companies a host of high-end, professional, and integrated services, such as market expansion, scenario matching, capital empowerment, and professionals introduction. Unicorn companies with a significant stimulating effect shall be supported on a case-by-case basis.

Where any project or matter that meets the requirements herein meets the requirements in other similar support policies of Nansha district (including policies of supporting or undertaking funds required of Nansha district by superior departments), support will be given in accordance with the policy that grants the largest subsidy, unless it is otherwise specified. These Measures shall come into force from the date of promulgation, and shall remain in force for five years.

Form of Disclosure: Active Disclosure

Issued by the Office of the Administrative Committee of Nansha Development Zone of Guangzhou Municipality and the General Office of Nansha district People's Government of Guangzhou Municipality on April 21, 2022