To the People’s Governments of All Counties and Districts, Relevant Departments of the Municipal People’s Government, and All Concerned Units:

To foster and stimulate the vitality of market entities, enhance independent innovation capabilities, promote the expansion and strengthening of various sectors of the real economy in our city, accelerate the development of a strong sub-center, and create a growth pole, these guidelines are hereby formulated to promote the “Five Transformations” initiative: the transition of individual businesses to enterprises, small enterprises to standardized enterprises, standardized enterprises to joint-stock companies, joint-stock companies to listed companies, and listed companies to new-economy enterprises.

I. Overall Objectives

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and adhering to the principles of government guidance, voluntary participation by market entities, coordinated advancement, and tailored measures, this document encourages individual businesses with a certain scale of assets to transform and upgrade into enterprises (hereinafter referred to as “Individual-to-Enterprise”), promotes eligible small and micro enterprises to standardize and upgrade into enterprises above the designated scale (hereinafter referred to as “Small-to-Scale”), guides enterprises of a certain scale to restructure and establish joint-stock companies (hereinafter referred to as “Scale-to-Joint-Stock”),support high-quality enterprises in listing on domestic and international securities markets (hereinafter referred to as “Enterprise Listing”), and promote enterprises with scientific and technological R&D capabilities to be recognized as high-tech enterprises (hereinafter referred to as “Enterprise-to-High-Tech”).In 2022, the targets are to achieve 1,000 "individual-to-corporate" conversions, 600 "small-to-scale" upgrades, 10 "scale-to-shareholding" restructurings, 2–3 "corporate listings," 150 "enterprise-to-high-tech" certifications, and bring the number of enterprises listed on the "Fourth Board" to 500.By 2025, we aim to cumulatively achieve 4,000 “individual-to-enterprise” conversions, 2,400 “small-to-scale” upgrades, 40 “scale-to-equity” transformations, 26 “equity listings” (with listed enterprises covering all counties and districts), 700 “enterprise-to-high-tech” conversions, and 1,000 enterprises listed on the “Fourth Board.”

II. Main Tasks

(1) Vigorously Promote the “Individual Business to Enterprise” Transition to Enhance the Competitiveness of Market Entities

1. Establish and improve the key cultivation pool for “individual-to-enterprise” conversions. Focus on individual businesses in various industries that have achieved 80% or more of the “Four Above” enterprise standard turnover, possess independent intellectual property rights such as trademarks and patents, or have established branded chain stores with significant growth potential, as well as individual businesses in other industries that meet the criteria of the “SME Size Classification Standards,”and meet the criteria for small enterprises (or larger). Identify enterprises eligible for conversion and those to be guided toward conversion, establish a "conversion from individual to corporate entity" cultivation pool, and implement dynamic management of this pool. Individual businesses that are not priority targets but voluntarily choose to convert into enterprises should be strongly supported. For newly established entities that meet the basic requirements for corporate registration, actively guide them to apply for corporate registration.

Responsible Units: Municipal Market Regulation Bureau, governments (administrative committees) of all counties and districts

2. Strengthen policy support for “Individual to Enterprise” transitions. When an individual business operator transitions to a corporate entity, the enterprise registration authority shall concurrently process the establishment registration and the cancellation of the original individual business operator’s registration, issue a business license, and provide a “Certificate of Transition from Individual Business Operator to Corporate Entity” along with relevant documents.If the business address (operating location) remains unchanged, there is no need to resubmit proof of use for the corporate address (operating location). A “Individual-to-Enterprise” registration green channel will be established to lower market entry barriers; a declaration and commitment system for corporate addresses (operating locations) will be implemented; restrictions on name registration for “Individual-to-Enterprise” conversions will be relaxed; and integrated licensing and concurrent approval processes will be carried out to achieve “one-day completion” for business establishment.Allow the maximum retention of the trade name and industry characteristics from the original individual business. Support micro and small enterprises after transformation in continuing to use the original individual business’s trade name and trademark, and recognize honors and titles such as “Model Honest and Trustworthy Merchant” obtained prior to transformation. Recognize all types of permits obtained prior to transformation; relevant administrative approval departments shall process or amend them accordingly. Implement tax reduction and exemption policies for micro and small enterprises in accordance with national regulations, and strictly enforce the provincial policy of “zero fees” for administrative and public service charges related to enterprises.Actively provide follow-up services; for enterprises undergoing the “individual-to-corporate” transition that face genuine difficulties and meet the criteria for hardship-based fee reductions, provide reductions in accordance with relevant regulations.

Responsible Units: Municipal Market Regulation Bureau, governments (administrative committees) of all counties and districts

3. Strengthen financial support for “individual-to-enterprise” transitions.Banking institutions shall increase credit support for transitioning enterprises and further standardize service fees. Financial institutions of all types are encouraged to designate “individual-to-enterprise” enterprises holding a “Certificate of Individual Business Transformation” as priority clients and give priority to meeting their financing needs. For small and micro-profit enterprises that meet national industrial and credit policy requirements, have good development prospects and creditworthiness but are temporarily facing difficulties, interest rates and loan terms shall be reasonably determined based on their production and operational needs, cash flow, and other characteristics, and the scope of collateral and guarantees shall be expanded.

Responsible Units: People’s Bank of China Luoyang Central Branch, Luoyang Banking and Insurance Regulatory Bureau, and governments (administrative committees) of all counties and districts

4. Implement Incentives to Guide the "Individual-to-Enterprise" Transition. All counties and districts shall, based on local conditions, make coordinated arrangements and allocate budgets in advance to provide one-time rewards to individual businesses that transition into enterprises, as appropriate. For businesses undergoing the "individual-to-enterprise" transition that need to complete procedures such as license amendments, corresponding reductions or exemptions shall be granted for the required administrative and public service fees.

Responsible Units: Municipal Finance Bureau; governments (administrative committees) of all counties and districts

(II) Vigorously Promote the “Upgrading of Small Enterprises to Scale” and Continuously Enhance Industrial Capabilities

1. Implement a Categorized and Phased Approach. Focus on enterprises with annual main business revenue of 20 million yuan that have not yet met the scale criteria; industrial enterprises below the scale threshold with annual main business revenue of 15–20 million yuan; and micro and small enterprises with annual main business revenue of 10–15 million yuan or an average annual compound growth rate of over 30% in the past two years that align with transformation and development directions and possess strong innovation capabilities.and enterprises with newly commissioned projects expected to meet the scale criteria in the same year. Annually, establish a "Small-to-Scale" key enterprise cultivation pool comprising at least 1.2 times the projected development target. Implement "one-on-one" targeted matching services, providing guidance on support policies, fiscal and tax knowledge, market expansion, and statistical reporting.

Responsible Units: Municipal industry-specific regulatory authorities, the Municipal Bureau of Statistics, the Municipal Taxation Bureau, and the governments (administrative committees) of all counties and districts

2. Strengthen “Small-to-Scale” Guidance. Industry authorities shall regularly visit enterprises and, based on the scale and business type of “Small-to-Scale” enterprises, actively provide specialized services focused on policy implementation, entrepreneurship and innovation, financing services, guidance on meeting statistical reporting thresholds, and transformation and development, ensuring targeted outreach, tailored guidance, and effective utilization of support.Statistical departments at all levels shall provide training and guidance to financial personnel of enterprises approaching the scale threshold regarding the criteria for inclusion in the statistical system, filing deadlines, required materials, and key considerations for filing, and shall actively assist eligible enterprises in refining their application materials.For SMEs already included in the statistical database that lack the conditions to establish a dedicated statistical department or assign statistical personnel within relevant departments, and that find it difficult to provide statistical data and submit statistical reports regularly in accordance with national statistical regulations, third-party accounting firms should be introduced to effectively reduce the burden on enterprises and improve the quality of statistical work related to "upgrading to meet statistical reporting standards."Financial departments at all levels should actively guide enterprises transitioning from small-scale to standard-scale operations to strengthen their financial systems and improve financial management. They should also enhance publicity and interpretation of relevant incentive and support policies for this transition. County and district governments (administrative committees) should provide subsidies for the services of third-party accounting firms, thereby effectively alleviating enterprises’ concerns regarding the transition.

Responsible Units: Municipal industry-specific regulatory authorities, Municipal Bureau of Statistics, Municipal Finance Bureau, and county and district governments (administrative committees)

3. Optimize the policy support system for “small-to-scale” enterprises. The “small-to-scale” incentive program shall be organized and implemented by county and district governments (administrative committees). A one-time financial reward of 30,000 yuan shall be granted to micro and small enterprises included in the above-scale statistics for the first time. Depending on the “small-to-scale” performance of the relevant county or district government (administrative committee) in the current year, the reward funds for meeting the net increase target shall be borne by the municipal finance department; otherwise, they shall be borne by the finance department of the relevant county or district government (administrative committee).Enterprises in the cultivation pool and industrial enterprises achieving “Small-to-Scale” status for the first time shall be included in the scope of support for special funds such as the Manufacturing High-Quality Development Fund and the Air Pollution Prevention and Control Fund; under equal conditions, their applications for these special funds shall be given priority.Risk compensation funds at all levels shall prioritize supporting financial institutions in providing financing services to enterprises in the cultivation pool and those achieving “small-to-scale” status for the first time. Banking financial institutions are encouraged to develop specialized financial products tailored to the characteristics of “small-to-scale” enterprises and to increase financing support for such enterprises through measures such as providing credit lines. Government-backed financing guarantee institutions shall be guided to provide financing guarantee services to enterprises in the cultivation pool and those achieving “small-to-scale” status for the first time, gradually reducing the average guarantee fee rate to below 1%.

Responsible Units: Municipal industry authorities, Municipal Finance Bureau, Municipal Ecology and Environment Bureau, Luoyang Branch of the China Banking and Insurance Regulatory Commission, and governments (administrative committees) of all counties and districts

4. Foster a favorable environment for “small-to-medium-sized enterprise upgrading.” All levels of government and departments must strictly comply with national policies and regulations to ensure that enterprises do not face additional burdens due to “upgrading and inclusion in statistical reporting.” Except in cases involving the investigation of complaints and reports, big data monitoring, or special requirements from higher-level departments, law enforcement inspections of key enterprises in the “small-to-medium-sized enterprise upgrading” cultivation pool shall, in principle, be conducted using the “double random, public disclosure” approach.Except for enterprises with high credit risk ratings, as well as matters directly related to national security, public safety, life and property safety, environmental protection, and other situations where repeated inspections are indeed necessary, the same unit shall, in principle, conduct no more than one inspection per year on the same enterprise. Joint inspections shall be the preferred method to minimize the number of inspections.

Responsible Units: All municipal administrative law enforcement departments; governments (administrative committees) of all counties and districts

5. Strengthen support for the “Small-to-Medium Enterprise” initiative. Prioritize addressing the land use needs of industrial enterprises undergoing their first “Small-to-Medium Enterprise” upgrade, and include them in the green channel for land approval for key projects. Actively assist in completing planning and land use procedures; for enterprises requiring additional construction land due to capital increases and production expansions, prioritize the allocation of annual plan quotas; for historical land-related issues faced by enterprises, develop and implement “one enterprise, one policy” solutions.

Responsible Units: Municipal Development and Reform Commission, Bureau of Natural Resources and Planning; governments (administrative committees) of all counties and districts

6. Regularly provide support to enterprises. Include the effectiveness of services supporting enterprises in upgrading from small to medium-sized enterprises as a key evaluation indicator, incorporate it into the “10,000 People Assisting 10,000 Enterprises” service ledger, and regularly distribute policy guides outlining business support measures. Organize production-sales matching activities by industry and sector to facilitate the integration of enterprises upgrading for the first time into industrial and supply chains, and further strengthen collaboration among upstream and downstream enterprises.

Responsible Units: Municipal industry-specific regulatory authorities; governments (administrative committees) of all counties and districts

7. Promote comprehensive R&D coverage among enterprises that have achieved “small-to-scale” status. Guide all industrial enterprises that have been upgraded to scale and included in statistical reporting to conduct R&D activities and meet the “Four-Haves” standard as soon as possible.

Responsible Units: Municipal Bureau of Industry and Information Technology, Municipal Science and Technology Bureau, and governments (administrative committees) of all counties and districts

(III) Vigorously Promote the “Upgrading to Shareholding” Initiative and Optimize Enterprise Operating Models

1. Establish a directory of enterprises undergoing “scaling-up to listed status.” At the county and district level, include enterprises that align with industrial development directions, have a distinct core business, demonstrate strong exemplary and leading roles, and exhibit good growth potential in the directory. Promote these enterprises to attract strategic investment, optimize equity and debt structures, strengthen corporate governance, and establish modern enterprise systems.

Responsible Units: Municipal Financial Bureau, Bureau of Industry and Information Technology, Bureau of Housing and Urban-Rural Development, Bureau of Commerce, Development and Reform Commission, etc.; governments (administrative committees) of all counties and districts

2. Coordinate the resolution of challenges in enterprise restructuring. Establish a task list and a mechanism for timely resolution with feedback in case of delays. Under the direct responsibility of the principal leaders of local governments (administrative committees), properly address difficulties and historical legacy issues faced by “scaling-up and shareholding reform” enterprises in areas such as urban and rural planning, land and property rights confirmation, project approval, resource and environmental impact assessments, tax and fee payments, equity confirmation, reissuance of business licenses, arbitration disputes, legal litigation, and the coordination of administrative permits.During the enterprise restructuring process, tax preferential policies shall be actively implemented for cases that meet the relevant provisions of tax laws to reduce the costs of enterprise restructuring.

Responsible Units: Relevant departments of the municipal government; governments (administrative committees) of all counties and districts

3. Support financing for restructured enterprises. In response to the development needs of restructured enterprises, innovate personalized and customized financial products and services. Encourage eligible restructured enterprises to issue various debt financing instruments, such as corporate bonds, enterprise bonds, SME pooled bonds, medium-term notes, and short-term financing bills, to promote the expansion of direct financing.

Responsible Units: Luoyang Central Branch of the People’s Bank of China, Financial Bureau, Development and Reform Commission, and governments (administrative committees) of all counties and districts

4. Support enterprises in “testing the waters” and gaining experience. Establish “Fourth Board” service windows to provide incubation and cultivation services—including policy consultation, guidance, regular roadshows, and investment and financing matchmaking—to enterprises intending to list on the “Fourth Board.” Award a 300,000 yuan incentive to enterprises successfully listed on the Basic Layer of the “New Third Board”; award a 500,000 yuan incentive to enterprises successfully listed directly on the Innovation Layer of the “New Third Board.” Award a 200,000 yuan incentive to enterprises successfully listed on the trading board of the “Fourth Board.”

Responsible Units: Municipal Financial Bureau, Municipal Finance Bureau, and governments (administrative committees) of all counties and districts

(IV) Vigorously Promote “Equity Listings” to Enhance Corporate Financing Capabilities

1. Improve the database of potential listing candidates.Focusing on high-growth enterprises, “specialized, refined, distinctive, and innovative” enterprises, technology-based enterprises, cultural and tourism enterprises, rural revitalization initiatives, and emerging industries, we will select a group of enterprises with outstanding core businesses, strong market competitiveness, broad development prospects, and a solid foundation for listing to include in the database for cultivation. We will implement dynamic management through tiered cultivation of key-tier and basic-tier enterprises, maintaining an annual average of over 120 enterprises in the pool of potential listing candidates, with 20–30 of them in the key tier.

Responsible Units: Municipal Financial Bureau, Science and Technology Bureau, Industry and Information Technology Bureau, Development and Reform Commission, Culture, Radio, Television, and Tourism Bureau, Agriculture and Rural Affairs Bureau, and governments (administrative committees) of all counties and districts

2. Stimulate enterprises’ enthusiasm for going public. Continuously carry out the “Capital Market Outreach to Counties and Industrial Parks” campaign to ensure full coverage of capital market promotion across all counties, districts, and industrial parks. Organize a series of activities such as “Visiting Stock Exchanges,” “Stock Exchanges Reaching the Grassroots,” and “Visiting Listed Companies—The Power of Role Models.” Actively publicize and report on successful examples of enterprises going public to foster a positive atmosphere of “competing to go public.”Organize “case studies” and other targeted activities. By inviting experts to provide lectures and guidance, hold more than 10 IPO training seminars annually to help senior management of prospective listed companies establish correct concepts regarding going public, understand relevant policies, and improve their practical operational skills.

Responsible Units: Municipal Financial Bureau, Governments (Administrative Committees) of All Counties and Districts

3. Strengthen Cultivation and Guidance. For enterprises in the Key Tier, implement activities such as “mentoring and guidance” from listed companies and “one-on-one” expert guidance. Intensify simulated training for listing reviews to prepare enterprises in advance, aiming to have a group of Key Tier enterprises enter the application and review stages within 1–2 years. For enterprises in the Basic Tier, form small teams of capital market expert advisors to strengthen daily research and guidance for these enterprises.

Responsible Units: Municipal Financial Bureau, governments (administrative committees) of all counties and districts

4. Implement phased rewards for enterprise listings. For our city’s prospective enterprises applying for listing on the Beijing Stock Exchange, Shanghai Stock Exchange, or Shenzhen Stock Exchange, rewards of 2 million yuan, 3 million yuan, and 1 million yuan will be granted to the applicant enterprises at the three milestones of passing the Henan Securities Regulatory Bureau’s tutoring assessment, passing the issuance review, and commencing trading, respectively.For enterprises applying for overseas listings, rewards of 2 million yuan and 3 million yuan will be granted at the two milestones of receiving approval from the China Securities Regulatory Commission and commencing trading, respectively.

Responsible Units: Municipal Financial Bureau, Municipal Finance Bureau

(5) Vigorously Promote the "Enterprise-to-High-Tech" Transition to Enhance Corporate Innovation and R&D Capabilities

1. Establish a High-Tech Enterprise Incubation Pool. From among enterprises whose primary products (or services) align with national key high-tech fields and that possess or have applied for intellectual property rights, select a group of key target enterprises expected to successfully apply for high-tech enterprise status within the next 1 to 2 years and include them in the incubation pool, implementing dynamic management.Municipal and county (district) authorities will collaborate to conduct policy briefings, provide cultivation services, and offer application guidance. They will guide enterprises to align with high-tech enterprise certification standards, increase R&D investment, achieve the commercialization of scientific and technological achievements, develop high-tech products with core proprietary intellectual property rights, and enhance their independent innovation capabilities.

Responsible Units: Municipal Science and Technology Bureau, Finance Bureau, Tax Bureau, Industry and Information Technology Bureau, Development and Reform Commission; governments (administrative committees) of all counties and districts

2. Increase Incentives for “Enterprise-to-High-Tech” Transitions.Enterprises possessing independent intellectual property rights that have passed the national evaluation for science and technology-based small and medium-sized enterprises for three consecutive years will receive a one-time reward of 30,000 yuan. High-tech enterprises that pass the initial recognition or re-recognition will receive one-time subsidies of 200,000 yuan and 100,000 yuan, respectively. Enterprises recognized for the first time as provincial innovation-leading enterprises or provincial gazelle enterprises will receive one-time rewards of 1 million yuan and 500,000 yuan, respectively. Science and technology-based enterprises may apply for up to 10 million yuan in “Science and Technology Loan” funding support.Deepen reforms of the government investment and financing system by establishing a diversified investment and financing framework comprising “guidance funds + market-oriented funds + investment-loan linkage.” Increase the scale of policy funds such as the “Science and Technology Innovation Guidance Fund” to support and guide enterprises in enhancing their innovation capabilities.

Responsible Units: Municipal Science and Technology Bureau, Finance Bureau, Industry and Information Technology Bureau, Financial Bureau; governments (administrative committees) of all counties and districts

III. Support Measures

(1) Improving Working Mechanisms

The Municipal Development and Reform Commission will lead the establishment of a collaborative mechanism among departments for the “Five Transformations” initiative to promptly coordinate and resolve major issues arising during implementation. The “Individual to Enterprise” initiative will be overseen by the Municipal Market Regulation Bureau; the “SME to Shareholding” and “Shareholding to Listing” initiatives will be overseen by the Municipal Financial Bureau;the “Small-to-Scale” initiatives in the industrial, construction and real estate, wholesale/retail/accommodation/catering, and service sectors will be coordinated by the Municipal Bureau of Industry and Information Technology, the Municipal Bureau of Housing and Urban-Rural Development and the Municipal Housing Center, the Municipal Bureau of Commerce, and the Municipal Development and Reform Commission, respectively. Relevant industry authorities shall develop specific measures based on local conditions to ensure precise and effective implementation; the “Enterprise-to-Innovation” initiative will be overseen by the Municipal Science and Technology Bureau.The Municipal Bureau of Statistics is responsible for advancing the “Inclusion in the Statistical Database” initiative; the Municipal Finance Bureau takes the lead in ensuring policy funding support, guaranteeing that incentive funds reach counties and districts directly; the Municipal Bureau of Natural Resources and Planning is responsible for securing land resources; and the Municipal Taxation Bureau is responsible for implementing tax preferential policies for enterprises. The governments (administrative committees) of each county and district shall assume primary responsibility and ensure the effective implementation of specific tasks.

(2) Strengthening Resource Support

Encourage all types of market entities to utilize underground space for the construction of warehousing, parking facilities, and supporting amenities, provided that production safety, public safety, and environmental safety are ensured. The floor area of underground space integrated into industrial project sites, scientific research and design sites, production and R&D sites, and new industrial sites will not be included in floor area calculations, and land transfer fees for such underground space will be waived. Leverage the guiding role of fiscal funds and state-owned capital to attract more social capital to support enterprises in fostering the “Five Transformations.”Guide enterprises in the “Five Transformations” cultivation pool to step up talent recruitment based on their own needs and actively participate in the “10,000 College Graduates Stay in Luoyang Initiative” and the “Certification for All, Skilled Luoyang” initiative.

(3) Strengthen Supervision and Evaluation

The departments responsible for each specialized task must refine objectives and tasks, standardize work procedures, improve working mechanisms, strengthen monitoring of policy implementation, and incorporate these efforts into the performance evaluation system. They should also increase guidance and support for enterprises to ensure that tasks are fully implemented and that enterprises achieve tangible results.

(4) Strengthen Penalties for “Removal from the Pool”

County and district governments (administrative committees) and municipal departments must strengthen negative incentives. While safeguarding the legitimate interests of enterprises, they should effectively utilize reward and penalty measures. Enterprises that have been removed from the pool after receiving policy benefits must be penalized in accordance with the law, and all policy funds and rewards must be recovered.

(5) Strengthen Policy Promotion and Guidance

Relevant departments shall, in accordance with their respective responsibilities, organize policy publicity campaigns to promptly disseminate relevant policies to enterprises. Every individual business operator and enterprise should be made aware of the policies so they can fully benefit from them. This will enhance corporate awareness and participation, fostering a positive environment where all parties participate, actively cooperate, jointly manage, and mutually reinforce one another.

These guidelines shall take effect upon issuance and remain valid for four years.

Attachment: 1. Statistical Standards for “Top Four” Enterprises and Responsibilities of Industry Competent Authorities.docx

2. Division of Responsibilities for the “Five Transformations” Work.docx