Original Title: Notice on Forwarding the "Detailed Rules for the Management and Use of Special Funds for Industrial Restructuring and Secondary Development in Maogang Town"

Relevant Government Departments and Town-Affiliated Enterprises:

Upon deliberation, we hereby forward the "Detailed Rules for the Management and Use of Special Funds for Industrial Restructuring and Secondary Development in Maogang Town." Please implement these rules conscientiously in accordance with the document’s requirements and in light of your unit’s (department’s) actual work circumstances.

Party and Government Office of Maogang Town, Songjiang District

December 3, 2021

Detailed Rules for the Management and Use of Special Funds for Industrial Restructuring and Secondary Development in Maogang Town

Article 1 (Purpose and Basis)

To further promote industrial restructuring in this town, optimize resource allocation and industrial layout, these Detailed Rules are formulated in accordance with the “Implementation Rules for Policies Supporting the Accelerated Promotion of Industrial Restructuring and the Revitalization of Existing Industrial Land in Our District” (Hu Song Jing [2019] No. 39) and the “Notice on Issuing the <Guiding Opinions on the Use of Special Funds for Industrial Restructuring and Secondary Development>” (Hu Song Jing [2020] No. 5), and in light of the actual conditions of this town.

Article 2 (Scope of Application)

Subsidies and incentive funds for various district-level industrial restructuring and secondary development projects allocated from district-level special fiscal funds.

Article 3 (Scope of Use)

1. Subsidy funds for industrial restructuring projects shall be pooled to subsidize expenses related to employee relocation and resettlement, losses from production suspension or business closure, losses of facilities, equipment, and assets, as well as demolition and relocation costs for enterprises undertaking industrial restructuring projects.

2. Incentive funds for reuse projects shall be pooled to subsidize rent for high-quality enterprises leasing existing factory buildings in this town; such enterprises must be reviewed and approved by the District Joint Conference on Industrial Restructuring and Transformation. The subsidy amount for any single enterprise shall not exceed the total approved reuse incentive funds for that project. Any remaining funds may be pooled to compensate for expenses related to the repurchase and land reserve acquisition, as well as losses of facilities, equipment, and fixed assets, demolition, and relocation of enterprises on industrial restructuring plots.

3. Land acquisition and reserve subsidies shall be pooled to compensate enterprises for the acquisition of their land and factory buildings, as well as for losses to their facilities, equipment, and fixed assets, during the land acquisition and reserve process.

4. Existing Asset Integration Subsidy Funds shall be used to subsidize expenditures by high-quality enterprises for the purchase of land and factory buildings in the town on the secondary market. High-quality enterprises must be reviewed and approved by the District Joint Conference on Industrial Restructuring and Transformation. The subsidy amount for any single enterprise shall not exceed the total amount of existing asset integration subsidy funds approved for that project.

5. Subsidies for revitalizing existing land are used to subsidize the costs incurred by the town’s collective economic organizations in acquiring and revitalizing existing land, as well as repurchasing land and factory buildings to attract high-quality enterprises. Projects involving the revitalization of existing land and the introduction of high-quality enterprises must be reviewed and approved by the District Joint Conference on Industrial Restructuring and Transformation. The subsidy for a single project shall not exceed the total amount of revitalization subsidies approved for that project.

6. Industrial Park Environmental Improvement Subsidy Funds are used to subsidize investments by the town’s industrial parks in upgrading their hardware and software infrastructure.

Article 4 (Support Procedures)

1. After the district finance department allocates special funds, they shall be used in a timely manner in accordance with relevant regulations on the approval of fiscal fund usage and the collective decision-making system for “major matters, important personnel appointments, significant projects, and large-scale expenditures,” ensuring compliance with laws and regulations.

2. The disbursement of subsidies and incentive funds for industrial restructuring and secondary development projects shall be made in batches based on the tax revenue and R&D investment of the applicant enterprises. The subsidy amount for any single enterprise shall not exceed the total incentive funds approved and disbursed by the district for that project. In principle, the support funds shall be disbursed over three years: 40% in the first year, 30% in the second year, and 30% in the third year.

Article 5 (Purpose and Allocation of Support Funds)

1. The use of subsidy funds for industrial restructuring projects, land acquisition and storage subsidies, subsidies for revitalizing existing land, and subsidies for improving the park environment shall be strictly coordinated in accordance with relevant district documents.

2. Enterprises recognized as eligible for subsidies under industrial restructuring and secondary development projects shall be granted different disbursement ratios based on their tax revenue performance:

(1) If the per-mu tax revenue upon reaching full production capacity reaches the average level of the 104 completed plots in the district from the previous year, the support funds the enterprise may receive in that year shall not exceed 60% of the subsidy funds it is entitled to for that year;

(2) If the per-mu tax revenue upon reaching full production capacity reaches 560,000 yuan (the standard for recognizing high-quality projects in the Punan area), the support funds the enterprise may receive in that year shall not exceed 80% of the subsidy it is entitled to for that year;

(3) If the tax revenue per mu upon reaching full production capacity reaches 800,000 yuan (the district’s standard for high-quality projects), the support funds the enterprise may receive for that year shall not exceed 100% of the subsidy it is entitled to for that year;

(4) If the tax revenue per mu after reaching full production capacity fails to meet the average level of the 104 completed plots across the district in the previous year, the enterprise shall not be eligible for support funds for that year.

Article 6 (Application for Support Funds)

Applicant enterprises must submit a funding application to the Town Economic Development Office based on valid payment vouchers and relevant materials required for the reuse project. Application materials:

1. Enterprise Funding Application Form;

2. Copies of the enterprise’s business license, organization code certificate, etc.;

3. Lease agreement, equipment inventory, environmental impact assessment report, and other financial payment vouchers;

4. Materials related to taxation, production capacity, energy consumption, etc.

Article 7 (Funding Approval Process)

Enterprise Application → Preliminary Review and Submission by the Town Economic Development Company → Acceptance by the Town Economic Development Office → Consultation with Relevant Departments → Issuance of Opinions → Submission to the Town Mayor’s Office Meeting for Approval → Submission to the Party Committee for Discussion and Decision → Approval by the Government’s Responsible Leader and Top Leadership → Disbursement to the Enterprise by the Town Finance Office

Article 8 (Supervision and Management)

To standardize the use of special funds, a review team comprising the Town Economic Development Office, the Finance Office, and the Economic Development Center shall be established to strengthen supervision and ensure the funds are used in a standardized, secure, and effective manner.

Any support obtained by enterprises through non-compliance or the submission of falsified or concealed information shall be revoked and recovered upon review, and the enterprise’s credit violation shall be recorded on the Shanghai Public Credit Information Service Platform.

Article 9 (Supplementary Provisions)

The Maogang Town Economic Development Office is responsible for interpreting these detailed rules.