To thoroughly implement the decisions and plans of the 11th Provincial Party Congress and the 7th Municipal Party Congress, focus on promoting openness, attracting investment, and expanding capital, and to support and empower the development of our city as a secondary provincial center, the following measures have been formulated in light of our city’s actual conditions.

I. Focusing on Investment Promotion for Leading Industries

(1) Clarify the Direction of Industrial Investment Promotion. We will unwaveringly prioritize industrial investment promotion as the top priority. Centered on cultivating and building the “5+N” industrial clusters worth hundreds of billions of yuan, we will encourage and support all counties (cities, districts) to focus on their leading industries in investment promotion, actively attracting projects in advanced manufacturing, strategic emerging industries, and other sectors. Priority will be given to encouraging and supporting foreign investment in advanced manufacturing, strategic emerging industries, future industries, and production-oriented services.(Responsible Units: Municipal Bureau of Investment Promotion, Development and Reform Commission, Bureau of Industry and Information Technology; People’s Governments [Administrative Committees] of all counties [cities, districts])

(2) Define Industrial Investment Promotion Targets. Municipal departments shall undertake quantifiable investment promotion tasks in accordance with the principle that industry management must include investment promotion. The principal Party and government officials of each county (city, district) shall implement the “50% Work Method.” During the 14th Five-Year Plan period, each county (city, district) shall attract and secure at least one advanced manufacturing project worth over 1 billion yuan or two such projects worth over 500 million yuan annually, and strive to attract and secure one advanced manufacturing project worth over 3 billion yuan.(Responsible Units: Municipal Investment Promotion Bureau, Development and Reform Commission, Industry and Information Technology Bureau, Science and Technology Bureau, Civil Affairs Bureau, Finance Bureau, Human Resources and Social Security Bureau, Natural Resources and Planning Bureau, Ecology and Environment Bureau, Housing and Urban-Rural Development Bureau, Water Resources Bureau, Transportation Bureau,Bureau of Agriculture and Rural Affairs, Bureau of Culture, Radio, Television, and Tourism, Commission of Health, Sports, and Public Health, Bureau of Traditional Chinese Medicine Development, Bureau of Commerce, Bureau of Education, Bureau of Financial Affairs, Bureau of Government Services and Big Data Management, Bureau of Rural Revitalization, Bureau of Forestry, Bureau of Grain and Strategic Reserves, Market Supervision and Administration Bureau, Urban Management Bureau, Wolong Comprehensive Bonded Zone, Beijing (Tianjin)-Wan Cooperation Center, Municipal Investment Group, Municipal Industrial Investment Group, Municipal Transportation Investment Group, and the People’s Governments (Administrative Committees) of all counties (cities, districts))

II. Strengthening Incentives for Investment Promotion

(3) Establish a municipal-level special fund for investment promotion. In accordance with the “Opinions of the People’s Government of Henan Province on Strengthening Investment Promotion Work under New Circumstances” (Yu Zheng [2020] No. 22), the “Measures for the Administration of Henan Provincial-Level Special Funds for Investment Promotion” (Yu Cai Mao [2018] No. 62),the “Notice of the Nanyang Municipal People’s Government on Several Measures to Further Expand Opening-up” (Wan Zheng [2020] No. 5), a municipal-level special fund for investment promotion shall be established. This fund shall be incorporated into the municipal annual fiscal budget and used in a coordinated manner to support and reward major investment promotion projects, strengthen investment promotion activities, and encourage socialized and professional investment promotion. The management measures for the municipal-level special fund for investment promotion shall be separately formulated by the Municipal Finance Bureau in conjunction with the Municipal Investment Promotion Bureau.Counties (cities, districts) are encouraged to establish special funds for investment promotion. (Responsible Units: Municipal Finance Bureau, Investment Promotion Bureau; People’s Governments [Administrative Committees] of all counties [cities, districts])

(4) Implement rewards for strategic emerging industry projects.For strategic emerging industry projects established in our city after the effective date of this policy, once included in the directory of industrial enterprises above designated size, a one-time reward of 100,000 yuan, 200,000 yuan, 500,000 yuan, 1,000,000 yuan, or 3,000,000 yuan shall be granted respectively when annual output value first exceeds 50 million yuan, 100 million yuan, 300 million yuan, 500 million yuan, or 1 billion yuan (the term “or more” in this policy includes the specified amount).(Responsible Units: Municipal Bureau of Investment Promotion, Finance Bureau, Development and Reform Commission, Bureau of Industry and Information Technology, Science and Technology Bureau, Bureau of Statistics; People’s Governments [Administrative Committees] of all counties [cities, districts])

(5) Implementation of Incentives for Key Industry Projects. For projects that align with the development direction of our city’s “5+N” industrial cluster cultivation plan (targeting industries with annual output value of 100 billion, 10 billion, and 1 billion yuan) and have a one-time fixed-asset investment of 100 million yuan or more, the following incentives will be provided after the project begins production and operations: 100% of the annual local fiscal contribution for years 1–3, and 50% of the annual local fiscal contribution for years 4–5. The cumulative incentive shall not exceed the project’s actual fixed-asset investment.For enterprises establishing headquarters, regional headquarters, or functional units such as R&D centers, technology centers, procurement centers, and settlement centers in our city, a reward equal to 100% of the enterprise’s annual local fiscal contribution will be granted in the first and second years, and 50% of the annual local fiscal contribution in the third through fifth years. The reward funds shall be used to support the enterprise’s scientific research and innovation, investment expansion, and market development.For Fortune Global 500 companies, China’s Top 500 companies, China’s Top 500 Private Enterprises, central state-owned enterprises, and industry-leading enterprises that establish headquarters in our city, a “case-by-case” approach will be implemented. (Responsible Units: Municipal Bureau of Investment Promotion, Finance Bureau, Tax Bureau, Development and Reform Commission; People’s Governments [Administrative Committees] of all counties [cities, districts])

(6) Implement rewards for investment promotion intermediaries. For various business associations, intermediary agencies, and non-state public officials (collectively referred to as investment promotion intermediaries) that successfully attract high-quality projects from outside the city (excluding direct fiscal investment) that align with the development direction of our city’s “5+N” industrial cluster cultivation plan, a one-time reward of 4‰ of the fixed-asset investment amount completed by the date the project begins production and operation will be granted for domestic investment projects with an investment amount of 100 million yuan or more, with a maximum of 2 million yuan;For newly established foreign-invested projects with contracted foreign capital of 5 million USD or more in registered capital, a reward of 5‰ of the RMB equivalent of the actual foreign capital paid in shall be granted (for funds actually paid in foreign currency, the amount shall be converted based on the RMB exchange rate benchmark published by the Bank of China on the date of actual payment; the same applies hereinafter), with a maximum of 3 million yuan. If project capital is injected in installments, the amounts may be accumulated over a period not exceeding two years.Only one investment promotion intermediary shall be recognized per project. For major commissioned investment promotion projects, rewards may be granted on a case-by-case basis based on industrial introduction outcomes and performance evaluation results. (Responsible Units: Municipal Bureau of Investment Promotion, Municipal Finance Bureau, and People’s Governments [Administrative Committees] of all counties [cities, districts])

(7) Implementation of Foreign Investment Incentives. For foreign-funded projects established in our city, a reward of 50,000 RMB shall be granted for every 1 million USD (or equivalent in RMB) of actual registered capital of the foreign-funded enterprise, with a maximum reward not exceeding 1 million RMB. For foreign-funded projects established in our city by Fortune Global 500 companies, a reward of 5% of the actual registered capital of the foreign-funded enterprise (converted to RMB) shall be granted, with a maximum reward not exceeding 1 million RMB.Foreign investors are encouraged to participate in the restructuring and transformation of our city’s leading and traditional industries through mergers and acquisitions. A reward of 1.5% of the RMB equivalent of the actual registered capital of the foreign-invested enterprise following the merger or acquisition will be granted, with a maximum reward not exceeding 1 million RMB. If project capital is injected in installments, the amounts may be accumulated over a period not exceeding two years. For particularly significant foreign investment projects, support will be provided on a case-by-case basis.(Responsible Units: Municipal Bureau of Investment Promotion, Finance Bureau, Development and Reform Commission; People’s Governments [Administrative Committees] of all counties [cities, districts])

(8) Implement incentives for investment promotion through existing industrial chains. Leading and backbone enterprises within local industrial clusters are encouraged to take the lead in introducing projects that support, strengthen, extend, or complement the cluster. For key projects introduced that align with the development direction of our city’s “5+N” Hundred-Billion-Yuan Industrial Cluster Cultivation Plan, incentives will be granted to both the project implementing entity and the lead introducing enterprise (referring to the investment promotion enterprise within the city that introduces projects from outside the city).Specifically, for projects with fixed-asset investment ranging from 500 million yuan (inclusive) to 2 billion yuan upon commencement of production and operation, a reward of 1 million yuan will be granted; for investments ranging from 2 billion yuan (inclusive) to 5 billion yuan, a reward of 2 million yuan will be granted; and for investments exceeding 5 billion yuan, a reward of 3 million yuan will be granted. Upon commencement of production, 30% of the reward funds will be disbursed, with the remaining 70% disbursed upon full production capacity.(Responsible Units: Municipal Bureau of Investment Promotion, Finance Bureau, Bureau of Industry and Information Technology, Development and Reform Commission; People’s Governments [Administrative Committees] of all counties [cities, districts])

III. Improving the System for Ensuring Production Factors

(9) Strengthen land supply guarantees. Promote the transfer of “standard industrial land” and implement a transfer model combining “standard land + agency services + notification and commitment system” to minimize enterprise construction start-up time, achieving “four permits in one day” and “construction commencement upon land acquisition.” For industrial projects such as advanced manufacturing and strategic emerging industries, as well as major foreign investment projects, ensure that land acquisition costs are the lowest in the province among comparable projects through land use subsidies and incentives in accordance with relevant regulations.Support and encourage all counties (cities, districts) to construct high-standard factory buildings and industrial complexes. For high-standard factory buildings and industrial complexes with two or more floors and equipped with industrial elevators, initial real estate registration may be conducted using individual buildings or floors as basic units. (Responsible Units: Municipal Bureau of Natural Resources and Planning, Bureau of Housing and Urban-Rural Development, Finance Bureau, Municipal Real Estate Registration Service Center; People’s Governments [Administrative Committees] of all counties [cities, districts])

(10) Strengthen financial and industrial capital support. Improve the coordination mechanism between financial departments and investment promotion departments; during the project negotiation and matching phase, financial departments shall organize relevant financial institutions to participate throughout the process; after project signing, investment promotion departments shall promptly forward signed project information to financial departments, which shall then organize relevant financial institutions to provide high-quality financial services for the signed projects.For major investment projects identified by the province and the city, tailor-made project funds may be established through cooperation between provincial, municipal, and county-level guiding funds and social capital. Counties (cities, districts) are encouraged to establish industrial investment funds in partnership with social capital to support the construction of major investment projects. (Responsible Units: Municipal Financial Work Bureau, Finance Bureau, Development and Reform Commission, Investment Promotion Bureau; People’s Governments [Administrative Committees] of all counties [cities, districts])

IV. Improving the Investment Promotion Mechanism

(11) Implement the profit-sharing mechanism for “flying land” economies. Innovate cooperation mechanisms among development zones to encourage the development of “flying land” economies, with the “host” and “origin” regions sharing fiscal revenue and profits from project implementation.The benefit-sharing period shall generally be 10 years. For new industrial projects, the county-level retained portion of value-added tax and corporate income tax paid within 10 years after production begins and tax revenue is generated shall generally be shared between the “sending area” and the “receiving area” in a 5:5 ratio;For relocation projects involving existing enterprises, the county-level retained portions of value-added tax and corporate income tax paid within 10 years after production begins and tax revenue is generated shall be shared between the “sending area” and the “receiving area” in a 6:4 ratio for the first 5 years and a 4:6 ratio for the subsequent 5 years. For cooperation conducted under an “equity partnership” model, profits shall be divided according to the parties’ respective equity ratios. For major projects, the sharing ratio may be determined through mutual agreement.Taxes shall be collected by the tax authorities where the “enclave economy” park is located and remitted to the treasury in accordance with the territorial principle. Relevant statistical indicators for “enclave economy” parks shall be reported at the location of the park and compiled by the statistical department of the “host region” government; during performance evaluations, these indicators shall be credited to the “originating region” in accordance with the sharing ratio, while corresponding deductions shall be made from the “host region.”For individual investment projects in non-"enclave economy" cooperative development zones (parks) that involve both "inflow" and "outflow," the profit-sharing provisions of the "enclave economy" model shall apply. (Responsible Units: Municipal Development and Reform Commission, Finance Bureau, Tax Bureau, Statistics Bureau; People’s Governments [Administrative Committees] of all counties [cities, districts])

(12) Implement the Industrial Chain Leader Responsibility System. For key industries, implement the Industrial Chain Leader Responsibility System, whereby each industry designates a municipal or departmental-level leader as the Chain Leader, a competent industry authority as the lead unit, a lead enterprise, a development plan, and a dedicated task force to comprehensively oversee the planning, investment promotion, operational services, and resource support for the entire industrial chain. (Responsible Units: Municipal Bureau of Industry and Information Technology, relevant municipal departments, and the People’s Governments [Management Committees] of all counties [cities, districts])

(13) Implement an evaluation and incentive/penalty mechanism for investment promotion. Conduct weekly dynamic updates, monthly ranking reports, quarterly comprehensive evaluations, and annual overall assessments. Based on the evaluation results, provide incentives or impose penalties on counties (cities, districts), overseas investment promotion and cooperation development centers, and municipal departments tasked with investment promotion.(Responsible Units: Municipal Investment Promotion Bureau, Human Resources and Social Security Bureau, Municipal Party Committee and Municipal Government Inspection Bureau; People’s Governments [Administrative Committees] of all counties [cities, districts])

V. Supplementary Provisions

(14) Signed projects without clearly defined commencement and completion deadlines shall not be eligible for the preferential policies under this document; if a project fails to commence construction or begin production within the contractually agreed timeframe, the period during which it may enjoy these preferential policies shall be correspondingly shortened;For projects implemented in phases, the first phase shall generally be completed and put into operation within 2 years, the second phase within 4 years, and the entire project within 5 years. The funds required to implement this policy shall be borne by the county (city) finance department for projects located in counties (cities), and by the municipal and district (functional zone) finance departments in proportion to tax revenue for projects located in the central urban area (functional zones).Project entities eligible for this policy shall submit an annual application to the investment promotion (commerce) department of their respective county (city, district). The county (city, district) investment promotion (commerce) department, in conjunction with the finance department at the same level, shall organize relevant experts to evaluate the project and proceed with public notice and fund disbursement in accordance with regulations.For projects requiring municipal-level funding, the district government (or management committee) shall review the application and submit it to the municipal investment promotion and finance departments. Upon approval, the municipal finance department shall allocate the corresponding funds to the district finance department, which shall then disburse the funds. If a single project qualifies for multiple incentives under this policy, the entity shall receive only the highest-value incentive in accordance with the “higher-over-lower” principle and may not submit duplicate applications.Projects by enterprises and other business entities benefiting from the “case-by-case” policy shall not be eligible for other incentives under this policy framework. New projects undertaken by existing local enterprises shall be treated equally with newly introduced projects under this policy.

This policy shall take effect from the date of issuance. Where existing municipal policies conflict with the provisions of this policy, the provisions of this policy shall prevail in accordance with the principle of “choosing the higher amount.”

Attachment: 1. Nanyang City Investment Promotion Workflow

2. Nanyang City Investment Promotion Workflow Chart

3. Letter from the Office of the Nanyang City Investment Promotion Command Center Regarding the Assignment of Important Information