Original Title: Measures for the Performance Evaluation of Land Use in the Full Life Cycle Management of Industrial Land in Fengxian District (Trial)

I. Purpose and Basis

To further establish a scientific and effective industrial project management mechanism and strengthen the full life-cycle management of industrial land, in accordance with the “Several Provisions on Strengthening the Management of Industrial Land Concessions in the Municipality” (Shanghai Municipal Government Office Document [2016] No. 23),the "Several Provisions on Strengthening the Management of Industrial Land Concessions in Shanghai" (Shanghai Planning and Resources Regulation [2021] No. 6), and the "Implementing Rules for the Full Life Cycle Management of Industrial Land in Fengxian District" (Fengxian District Government [2014] No. 80), these Measures are hereby formulated.

II. Division of Responsibilities

The Fengxian District Economic Commission is responsible for guiding the land use performance evaluation of industrial land full-lifecycle management projects in various sub-districts, towns, and group companies; the sub-districts, towns, and group companies where the projects are located are responsible for organizing and implementing the land use performance evaluation.

III. Land Use Performance Evaluation

Land use performance evaluation is divided into four stages: evaluation of project fixed-asset investment, evaluation of full-capacity production, process evaluation, and expiration evaluation. The Fengxian District Economic Commission shall issue an annual performance evaluation notice, and all sub-districts, towns, and district-affiliated state-owned enterprises shall carry out the annual land use performance evaluation in accordance with the notice.

(1) Fixed Asset Investment Assessment

1. Assessment Timing. If the contract specifies a project commencement date, the assessment shall be conducted within one month after the agreed commencement date. If the contract does not specify a project commencement date, the assessment shall be conducted within seven months after the agreed completion date. If an application for an extension of the commencement or completion date is approved by the grantor, the commencement date shall be extended accordingly.

2. Evaluation Method. The land grantee shall submit the “Fengxian District Industrial Land Full Life Cycle Management Project Production Commencement Certification Form” (Appendix 1) to the relevant sub-district, town, or group company. The sub-district, town, or group company where the project is located shall evaluate the project’s compliance with contractual obligations, including fixed asset investment and investment intensity.

3. Application of Results. If the total fixed-asset investment and investment intensity of the project fail to meet the standards stipulated in the land grant contract, liability for breach of contract shall be pursued in accordance with the contract, and performance of the contract shall continue.

(II) Full Production Capacity Assessment

1. Assessment Timing. Within one month after the production capacity attainment date specified in the contract.

2. Assessment Method. Within the designated assessment period, the land grantee shall submit the “Fengxian District Industrial Land Full Life Cycle Management Land Use Performance Assessment Form” (Appendix 2) to the local sub-district or town or the Group Company. The local sub-district or town and the Group Company shall then conduct the full production capacity assessment of the project.The full-capacity assessment shall be based on the terms specified in the land grant contract, including total project investment, fixed-asset investment, fixed-asset investment intensity, sales revenue at full capacity, total tax revenue at full capacity, tax output intensity at full capacity, land output rate, as well as factors such as project energy and water consumption and number of employees.

3. Application of Results. For projects that fail to meet performance targets following the assessment, breach of contract liability shall be pursued in accordance with the contract terms, and the project must continue to fulfill its obligations.

(3) Process Evaluation

1. Assessment Timing. Assessments shall be conducted every three years, beginning in the third year following the contractually agreed-upon date of full production capacity.

2. Evaluation Method. During the corresponding evaluation period, the land grantee shall submit the “Fengxian District Industrial Land Full Life Cycle Management Land Use Performance Evaluation Form” (Appendix II) to the local sub-district or town government or the Group Company, which will then conduct the process evaluation of the project.The process evaluation shall be based on the terms specified in the land grant contract, including total project investment, fixed asset investment, fixed asset investment intensity, sales revenue upon reaching full production capacity, total tax revenue upon reaching full production capacity, tax output intensity upon reaching full production capacity, land output rate, as well as factors such as energy and water consumption and the number of employees.

3. Application of Results. For projects that fail to meet their obligations following the process evaluation, liability for breach of contract shall be pursued in accordance with the contract terms, and the project shall continue to fulfill its obligations.

(4) Maturity Assessment

1. Assessment Timing. One year prior to the expiration of the land use term specified in the contract.

2. Evaluation Method. Within the designated evaluation period, the land grantee shall submit the “Fengxian District Industrial Land Full Life Cycle Management Land Use Performance Evaluation Form” (Appendix II) to the local sub-district or town government or the Group Company. The local sub-district or town government and the Group Company shall then conduct the maturity evaluation of the project.The maturity assessment shall be based on the terms specified in the land grant contract, including total project investment, fixed asset investment, fixed asset investment intensity, sales revenue at full production capacity, total tax revenue at full production capacity, tax revenue intensity at full production capacity, land output rate, as well as factors such as energy and water consumption and number of employees.

3. Application of Results. For projects that fail to meet the requirements following the maturity assessment, liability for breach of contract shall be pursued in accordance with the terms of the contract.

IV. Effective Date

These Measures shall take effect on the date of issuance.

Fengxian District Economic Commission, Shanghai

February 15, 2022