Article 1 These Measures are formulated to implement the guiding principles of documents such as the “Several Opinions of the State Council on Further Promoting the Healthy Development of the Capital Market” (State Council Document [2014] No. 17), the “Guangdong Province Regulations on Promoting the Development of Small and Medium-Sized Enterprises (Revised),” and the “Notice of the People’s Government of Guangdong Province Forwarding the State Council’s Opinions on Further Improving the Quality of Listed Companies” (Guangdong Provincial Government Document [2020] No. 60), with the aim of accelerating the pace at which local enterprises in Chaozhou utilize multi-tiered capital markets for financing and achieving high-quality development.

Article 2 For the purposes of these Measures, “enterprises utilizing the capital market” refers to enterprises registered in Chaozhou City that list or are listed on domestic or overseas capital markets, as well as corresponding financing activities; the term “capital market” includes the Shanghai Stock Exchange, the Shenzhen Stock Exchange (hereinafter referred to as the “Shanghai-Shenzhen Stock Exchanges”), overseas stock exchanges (including securities trading venues in Hong Kong, Macao, and Taiwan), the National Equities Exchange and Quotations (hereinafter referred to as the “NEEQ”), and compliant regional equity markets within Guangdong Province (hereinafter referred to as “regional markets”).

Article 3 These Measures apply to enterprises registered in Chaozhou City that possess independent corporate legal personality, maintain independent accounting, conduct business operations in accordance with the law, and pay corporate income tax through the Chaozhou tax authorities.

Article 4 The municipal financial administrative department is the specific agency responsible for guiding and promoting enterprise restructuring and listing, as well as listing on the NEEQ and regional markets. It is responsible for the annual budgeting and execution of the incentive fund, and shall accept, review, publicize, and allocate applications for listing and listing incentives submitted by enterprises in accordance with established procedures. It shall also strengthen supervision over the progress, performance, security, and compliance of project fund expenditures.

The municipal financial administrative department is responsible for the allocation and disbursement of special funds; it monitors and reports on budget execution and performance, and organizes key performance evaluations as appropriate.

County and district governments (administrative committees) are responsible for implementing the preliminary review of enterprises’ listing reward application materials as directed by the relevant financial administrative authorities; for the disbursement and implementation of county and district matching reward funds; and for establishing a reserve pool of enterprises eligible for listing at the county and district levels.

Article 5: Enterprises are encouraged to utilize multi-tiered capital markets for financing and development. Fiscal rewards of varying amounts shall be provided based on the category and stage of an enterprise’s listing, quotation, or fundraising and investment activities.Funds for rewards related to enterprise listings, stock exchange listings, and fundraising for investment projects shall be allocated within the annual special-purpose budget by the municipal financial administrative authorities and the relevant administrative departments of county and district governments (administrative committees); the municipal finance department shall bear 40% of the costs, and county and district finance departments shall bear 60%. For enterprises directly under municipal jurisdiction (including those within the Fengquanhu High-Tech Zone), the municipal finance department shall bear the full cost of the rewards.

Article 6: Reward Standards

Enterprises eligible for listing incentives shall be rewarded according to the following standards:

(1) For enterprises listed on the Shanghai or Shenzhen Stock Exchanges, rewards shall be granted in stages:

1. Enterprises that complete the transformation to a shareholding system, formulate a detailed listing work plan, and sign listing work agreements with listing sponsors and intermediary institutions such as law firms and accounting firms shall be granted a reward of 500,000 yuan.

2. If an enterprise has completed the filing and registration for listing guidance with the Guangdong Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the “Guangdong CSRC”), a reward of 1.5 million yuan shall be granted.

3. If an enterprise’s application for an initial public offering (IPO) and listing submitted to the China Securities Regulatory Commission or the Shanghai and Shenzhen Stock Exchanges is formally accepted, a reward of 1 million yuan shall be granted.

4. A company that successfully lists on the Shanghai or Shenzhen Stock Exchanges shall be awarded a bonus of 1 million yuan.

(2) Enterprises Listing via “Shell Acquisition” or “Reverse Merger”

Enterprises that list domestically through methods such as “shell acquisition” or “backdoor listing” in another region and subsequently relocate the registered office of the listed company back to Chaozhou shall be granted a one-time reward of 3 million yuan.

(III) Enterprises Listed on Overseas Stock Exchanges

Enterprises that have completed shareholding reform, with both their registered and tax-paying locations in Chaozhou, and are formally listed on stock exchanges in Hong Kong, Macao, Taiwan, or overseas, shall be granted a one-time reward of 2 million yuan, provided that the listed entity, its operations, assets, follow-up investments of funds raised through the IPO, and tax payments are all within the jurisdiction of Chaozhou.

(4) For enterprises listed on the National Equities Exchange and Quotations (NEEQ), rewards will be granted in stages:

1. Enterprises that complete shareholding system reform and sign a “Recommendation for Listing and Ongoing Supervision Agreement” with the lead underwriter will receive a reward of 400,000 yuan. The completion date of shareholding system reform shall be determined by the date of valid registration with the Administration for Industry and Commerce.

2. Upon successful listing on the NEEQ, a reward of 600,000 yuan shall be granted.

3. If a company listed on the NEEQ successfully transfers to the Shanghai or Shenzhen Stock Exchange, it will receive a one-time reward of 4 million yuan, equivalent to the standard listing reward, but this amount shall be reduced by the NEEQ listing reward previously received by the company.

(V) Listing on Regional Markets

1. Non-shareholding enterprises that list and display their shares on compliant regional markets within the province shall be granted a reward of 30,000 yuan per enterprise.

2. Joint-stock enterprises that have been in operation within the jurisdiction of our city for more than one year and are listed and traded on a compliant regional market within the province, or enterprises that complete a restructuring into a joint-stock company after being listed and traded, shall be granted a reward of 50,000 yuan per enterprise; however, this amount shall be reduced by any listing reward funds the enterprise has previously received.

(6) For listed companies conducting their first public offering of shares in the domestic capital market to raise funds, provided that the investment projects are located in the Chaozhou region, an additional tiered reward shall be granted based on the amount of raised funds invested in the Chaozhou region, in addition to the aforementioned listing reward:

1. For fundraising amounts of up to 200 million yuan (inclusive), a one-time reward of 500,000 yuan will be granted.

2. For fundraising amounts between 200 million yuan and 500 million yuan (inclusive), a one-time reward of 1 million yuan shall be granted.

3. For fundraising amounts between 500 million yuan and 1 billion yuan (inclusive), a one-time reward of 2 million yuan shall be granted.

4. For raised investment amounts between 1 billion yuan and 2 billion yuan (inclusive), a one-time reward of 3 million yuan will be granted.

5. For fundraising amounts between 2 billion yuan and 3 billion yuan (inclusive), a one-time reward of 4 million yuan will be granted.

6. For fundraising amounts of 3 billion yuan or more, a one-time reward of 6 million yuan shall be granted.

The above incentive funds shall be shared by the municipal finance department and the finance departments of the counties (districts) and administrative committees where the enterprises’ investment returns are generated, in accordance with the proportion specified in Article 5 of this document.

Article 7: In addition to national and provincial incentive policies, no duplicate rewards shall be granted to entities that have already received other similar financial incentives from municipal, county (district) governments, or administrative committees.

Article 8: Application and Approval Procedures for Incentive Funds

(1) Enterprises shall complete the “Application Form for Rewards for Enterprise Listing and Financing via Capital Markets” based on the progress of their listing or listing on a stock exchange in the previous year. After obtaining preliminary review opinions from the designated handling units of the respective county and district governments (administrative committees), the application shall be submitted to the municipal financial administrative department for acceptance (enterprises directly under the municipal government shall submit their applications directly to the municipal financial administrative department).

Enterprises may submit applications in phases as described in Article 5, or may combine applications for unreceived rewards from previous phases into subsequent reward applications.

(2) After accepting and reviewing the enterprise’s application, the municipal financial administrative authority shall publish the proposed reward plan in major municipal media for a public notice period of 10 days. If no objections are raised or if objections are deemed invalid following the public notice, the municipal financial administrative authority shall submit the fund allocation plan to the municipal leader in charge of financial affairs for approval and public notice, then report it to the municipal financial administrative authority and promptly disburse the reward funds to enterprises directly under the municipal government.

(3) The municipal financial administrative department shall, within 7 working days, allocate municipal-level financial incentive funds to county and district financial departments in accordance with the prescribed ratio based on the fund allocation plan submitted by the municipal financial administrative department, and shall urge the county and district financial departments to promptly disburse the corresponding matching funds to enterprises within their jurisdictions.

(4) The administrative departments responsible for financial affairs designated by the governments (or administrative committees) of each county and district shall promptly coordinate with the financial administrative departments of their respective governments (or administrative committees). Within 15 working days of receiving the municipal financial reward funds, they shall ensure the allocation of the matching funds from the county and district governments (or administrative committees), disburse these funds together with the municipal reward funds to the enterprises, and report to the municipal financial administrative department for record-keeping. The municipal financial administrative department shall compile this information and provide it to the municipal financial administrative department for record-keeping.

Article 9: Application Materials for Incentive Funds

(1) Application Report for Incentive Funds.

(2) Application Form for Incentives for Enterprises Raising Funds through Capital Market Listings (see Appendix).

(3) Basic enterprise information, including but not limited to a copy of the enterprise’s business license, the Unified Social Credit Code certificate, and machine-readable archive registration records (copies).

(4) Supporting documentation, including:

1. Letter of Commitment (committing to continuous operation in our city for no less than 5 years after listing). (For applications under Article 6(1)(1), (3), and (4)(3))

2. Resolution of the Board of Directors or Shareholders’ Meeting approving the company’s application for listing on the NEEQ. (For rewards under Article 6, Clause (4)(1))

3. Listing service agreement signed between the enterprise and a law firm or accounting firm. (For rewards under Article 6(1)(1))

4. An IPO and listing advisory agreement, or an agreement for recommending the company’s NEEQ listing and providing ongoing supervision, signed between the company and a securities firm. (For rewards under Article 6, Paragraph (1)(1) and Paragraph (4)(1))

5. Registration approval documents issued by the industrial and commercial authorities. (For the incentive items under Article 6(1)(1), (2), and (4)(1))

6. Confirmation of guidance filing registration issued by the Guangdong Securities Regulatory Bureau. (For applying for incentives under Article 6(1)(2))

7. Administrative license acceptance notice from the China Securities Regulatory Commission (CSRC) or decision document on the acceptance of registration applications from the Shanghai or Shenzhen Stock Exchanges. (For rewards under Article 6(1)(3))

8. The China Securities Regulatory Commission’s approval for the company’s initial public offering (IPO) or approval for the registration of the company’s public offering of shares. (For applications under Article 6, Paragraph (1)(4), Paragraph (2), and Paragraph (4)(3))

9. Letter of consent issued by the National Equities Exchange and Quotations (NEEQ) Company regarding the listing of the company’s shares on the NEEQ. (For the incentive under Article 6(4)(2))

10. The amount of funds raised through the enterprise’s initial public offering in the domestic capital market, along with relevant supporting documentation for investment projects in the Chaozhou region (including but not limited to the prospectus, written confirmation letters issued by the county or district government (administrative committee) where the investment is located, and project approval and filing documents from municipal, district, and county development and reform departments). (For incentives under Article 6, Clause (6))

11. Relevant application documents regarding the enterprise’s listing on overseas capital markets. (For the incentive under Article 6(3))

12. Documentation evidencing the enterprise’s listing or display on compliant regional markets within the province. (For the reward under Article 6(5))

Article 10: Listed enterprises receiving fiscal rewards under these Measures shall commit to continuing operations in our city for no less than 5 years after receiving the reward. This period shall be calculated from the date the final installment of the reward funds is credited to the enterprise’s account; otherwise, the enterprise must return the full amount of the fiscal reward funds.

Article 11: If an enterprise engages in fraud to obtain fiscal reward funds, the project funding shall be revoked and the reward funds recovered. In serious cases, the enterprise’s eligibility to apply for special funds shall generally be suspended for 5 years. The enterprise shall also be handled in accordance with relevant laws and regulations, such as the “Regulations on the Penalties for Fiscal Law Violations,” and shall be included in the list of dishonest enterprises in accordance with the law; if criminal suspicion exists, criminal liability shall be pursued in accordance with the law.

If intermediary agencies assist enterprises in fabricating information or fraudulently obtaining incentive funds, the relevant regulatory authorities shall handle the matter in accordance with the law.

Where administrative agencies, relevant functional departments, or their staff members commit dereliction of duty, abuse of power, or malfeasance, they shall be dealt with in accordance with the law; where such acts constitute a crime, criminal liability shall be pursued in accordance with the law.

Article 12: Counties and districts may, based on their local financial capacity, provide additional incentives to enterprises beyond the incentive measures specified in these Measures.

Article 13: The municipal financial administrative department shall be responsible for interpreting specific issues encountered during the implementation of these Measures.

Article 14: These Measures shall take effect on August 8, 2021, and remain valid until December 31, 2025.The original “Several Policy Measures of the Chaozhou Municipal People’s Government on Encouraging Enterprises to Raise Funds through the Capital Market” (Chao Fu [2017] No. 36) and the “Opinions of the Chaozhou Municipal People’s Government on Encouraging and Promoting Enterprise Listings” (Chao Fu [2007] No. 53) are hereby repealed; where other local support policies conflict with this document, this document shall prevail.