Notice Regarding the "Implementation Rules for the Development of the New Materials Industry in Fengxian District"

Chapter 1 General Provisions

Article 1 (Purpose and Legal Basis)

The new materials industry is a strategic and foundational sector, serving as the cornerstone and vanguard for the future development of high-tech industries.In accordance with relevant documents jointly issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology, and the Ministry of Finance—including the "Guidelines for the Development of the New Materials Industry," the "Shanghai Special Fund Management Measures for Promoting High-Quality Industrial Development (Interim)," and the "Implementation Rules for the Shanghai Special Fund for Promoting High-Quality Industrial Development"—these Rules are hereby formulated to implement the upgrading of the new materials industry, advance the infrastructure reconstruction project, accelerate technological innovation and industrialization of new materials in Fengxian District, and achieve breakthroughs in a number of core application technologies for key materials.

Article 2 (Definitions)

In these Rules, “new materials” refer to newly developed materials with superior performance and special functions, or traditional materials that have been improved to achieve significantly enhanced performance or new functions.

Article 3 (Administrative Authority)

The Shanghai Fengxian District Economic Commission (hereinafter referred to as the “Fengxian District Economic Commission”) is responsible for formulating the annual usage directions and support priorities of these Special Rules, issuing annual application notices, accepting project applications, organizing project evaluations, preparing fund utilization plans, and conducting supervision and inspections of projects.

The Shanghai Fengxian District Finance Bureau (hereinafter referred to as the Fengxian District Finance Bureau) is responsible for ensuring the availability of special support funds and for supervising and inspecting the use of such funds.

Chapter II Eligibility Criteria and Conditions

Article 4 (Eligible Entities)

The entities eligible for support under these detailed rules are new materials enterprises legally registered in this district, which conduct production and R&D within the district, are in normal operation, have a good credit record, align with the district’s new materials development plan, and have not experienced major accidents such as production safety incidents or environmental pollution.

Article 5 (Scope of Support)

Special support funds shall primarily be used for the research, development, and industrialization of new materials. New material products must fall within key areas such as advanced basic materials, critical strategic materials, specialized breakthrough materials, and cutting-edge new materials. Supported projects are categorized into general projects and key projects.

(1) Application for General Projects

1. The project must align with the new materials industry development plans and policy directions of the national, Shanghai municipal, and Fengxian District governments;

2. The enterprise possesses significant competitive advantages, with sales (operating) revenue in the previous fiscal year generally not less than 30 million RMB;

3. The enterprise places a high priority on R&D investment, possesses strong technological innovation capabilities, and has relatively well-established conditions necessary for research, development, and testing;

4. The enterprise possesses a team of technical personnel with high technical proficiency and extensive practical experience;

5. Within the two years prior to the application, the enterprise has obtained no fewer than three independent intellectual property rights for new products, processes, or methods related to core technologies through innovation, R&D, or the introduction and assimilation of technologies, thereby developing new materials with a leading technological edge;

6. The total investment in the project exceeds 3 million RMB, with R&D expenses accounting for no less than 50% of the total project investment;

7. Other matters requiring support.

(II) Application for Key Projects

1. New materials projects that align with urgent national strategic priorities or serve as application demonstrations at the municipal level or above;

2. The enterprise possesses significant scale advantages within the industry, with sales (operating) revenue in the previous year generally not less than 100 million yuan;

3. The enterprise possesses a relatively well-developed technical development system and effective operational mechanisms, meets the necessary conditions for research, development, and testing, and demonstrates strong technological innovation capabilities, with R&D expenditures accounting for no less than 5% of sales revenue;

4. The enterprise has a technical leader with high technical proficiency and extensive practical experience, and maintains a technical staff of a certain scale;

5. The applicant enterprise must possess independent intellectual property rights and have established an intellectual property management system. Within the two years prior to the application, it must have obtained no fewer than 5 intellectual property rights related to new products, processes, or methods based on core technologies (including at least one invention patent application), resulting in new materials that demonstrate a technological lead or break market monopolies;

6. The total investment in the project exceeds 6 million yuan, with R&D expenses accounting for no less than 50% of the total project investment;

7. Other matters requiring support.

Chapter III Application and Supporting Measures

Article 6 (Support Methods and Standards)

For general projects under the Fengxian District New Materials Industry Development Special Program, the support amount is 300,000 yuan; for key projects, the support amount is 600,000 yuan.

Article 7 (Application Notice)

The Fengxian District Economic Commission shall, in accordance with relevant municipal plans and policy guidelines, prepare and issue application notices and guidelines specifying details such as application deadlines, submission locations, and application requirements.

Article 8 (Project Application)

Eligible enterprises may submit project applications within the specified timeframe in accordance with the requirements of the annual application notice and guidelines, and shall be responsible for the authenticity of the application materials; new materials projects serving national strategic objectives shall be considered on a case-by-case basis.

Article 9 (Project Evaluation)

The Fengxian District Economic Commission shall conduct a preliminary review of submitted projects in accordance with the requirements of the annual application notice and guidelines. Projects that pass the preliminary review shall undergo expert evaluation organized by the Fengxian District Economic Commission; following a comprehensive assessment, a list of proposed projects for support shall be compiled.

Article 10 (Project Public Notice)

The Fengxian District Economic Commission shall publicly announce general and key projects proposed for special support to the public. The public notice period shall be 5 working days. For projects receiving objections during the public notice period, the Fengxian District Economic Commission shall promptly organize an investigation and verification; for projects with no objections upon expiration of the public notice period, the Commission shall issue a formal approval document and award a certificate.

Article 11 (Fund Disbursement)

For projects confirmed to receive special support for new materials, the District Economic Commission shall report to the District Finance Bureau, which shall provide support in accordance with the procedures for the management and use of fiscal funds.

For general projects, a fiscal subsidy of 300,000 yuan will be provided through installment payments: 200,000 yuan will be disbursed in the year of project approval, and upon completion of the two-year construction period, the District Economic Commission will disburse the remaining 100,000 yuan following acceptance and evaluation.

For key projects, a fiscal subsidy of 600,000 yuan will be provided in installments: 400,000 yuan will be disbursed in the year of project approval, and the remaining 200,000 yuan will be disbursed after the project is completed within two years, subject to the District Economic Commission’s approval based on the results of the acceptance evaluation.

(3) If a general project or key project fails to meet acceptance standards, the project shall be deemed closed, and the remaining funds shall not be disbursed.

Chapter IV Supplementary Provisions

Article 12 (Accountability)

For acts that violate national laws, regulations, or relevant disciplinary rules—such as fraudulently obtaining special support funds through falsification, forgery of project outcomes, issuance of false sales contracts, or provision of false supporting materials—the project-bearing entity and its principal responsible persons shall be held accountable in accordance with the law, and the special support funds already disbursed shall be recovered in accordance with regulations.

Article 13 (Interpretation)

The Fengxian District Economic Commission and the Fengxian District Finance Bureau shall be responsible for interpreting these Measures.

Article 14 (Effective Date)

These Rules shall take effect on January 1, 2024, and remain valid until December 31, 2026.