Advantages for Investors

Preferential Policy of Lanzhou New Area for Investment Invitation

Chapter I

General Provisions

Article 1

In order to further strengthen investment invitation and speed up the development and construction of Lanzhou New Area, this policy is formulated in accordance with „Approval of the State Council on Establishment of LanzhouNew Area“, „Guidance on Construction of Lanzhou New Area“ of National Development and Reform Commission, „Opinions of People’s Government of Gansu Province on Supporting the Policy to Develop and Construct Lanzhou NewArea“ and the actual conditions of Lanzhou New Area.

Article 2

This policy applies to all kinds of investors of industrial projects that areinvested and operated legally within the planning area of Lanzhou New Area andare in accordance with industrial investment guidance of Lanzhou New Area.

Article 3

The projects that enter into Lanzhou New Area must be in accordance with national industrial policy and environmental requirements, as well as the relevant specifications of Lanzhou New Area in terms of industrial distribution, investment amounts, investment strength, and etc.

Article 4

The projects that enter into Lanzhou New Area still can enjoy the national western development policy, national circular economy demonstration area policy, national policy to support the development of economy and society of Gansu, and policy of Gansu Province to support the development and construction of Lanzhou New Area in accordance with the regulations, except for this preferential policy.

Chapter II

Preferential Policy

Article 5

After the industrial projects that enter into Lanzhou New Area are completed in time in accordance with contracts, they shall be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area in accordance with the aggregate investment that is actually completed by these projects and investment intensity. The subsidy shall be based on the proportion in the following table,which takes land-transferring fees (exclude the land for public use) paid by the enterprises as the referential cardinal number. The aggregate investment of projects is subjected to all kinds of tickets and invoices that are confirmed by audit. The projects of which the aggregate investment is less than RMB 1 billion and the construction cycle is more than 3 years shall not enjoy this preferential policy. For the major projects of which the aggregate investment is more than RMB 1 billion (includes RMB 1 billion), the construction cycle shall be made in accordance with the appointment of the contract.

Aggregate

Investment

Support Standards

 

Investment Intensity

RMB 0.1-0.3 billion (includes 0.3 billion)

RMB 0.3-1 billion (includes 1 billion)

RMB 1-2 billion (includes 2 billion)

Above RMB 2 billion

RMB 2.5 (include) -3 (include) million / mu

20%

40%

60%

80%

Above RMB 3 million / mu

40%

60%

80%

100%

Article 6

The fee for levied land for public use of industrial enterprises entering into Lanzhou New Area shall be collected in accordance with the composite cost of actual land expropriation reserve. After enterprises are constructed and put into operation within the agreed period of the contract, the part of the fee for levied land for public use exceeding 35% of the total land acquisition cost shall be subsidized by the special reward fund of Finance Bureau of Lanzhou NewArea.

Article 7

If the industrial projects entering into Lanzhou New Area are constructed and put into operation within 1 year, the part of their land use taxes that shall be kept by the new area shall be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area in 100% within 5 years starting from the year to start construction; if the industrial projects entering into Lanzhou New Area are constructed and put into operation within 2 years, the part of their land use taxes that shall be kept by the new area shall be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area in 100% within 4 years starting from the year to start construction; if the industrial projects entering into Lanzhou New Area are constructed and put into operation within 3 years, the part of their land use taxes that shall be kept by the new area shall be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area in 100% within 3 years starting from the year to start construction.

The projects with above 3 years of construction period shall not enjoy this preferential policy.

Article 8

For the industrial enterprises entering into Lanzhou New Area, if the average tax paid by them for 1 mu, which is converted from their actual total tax amount of that year, reaches RMB 0.1 million, 50% of the part of tax that shall be kept by the new area will be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area within 5 continuous years since these enterprises have been put into operation; on a basis of RMB 0.1 million of average tax for 1 mu of land, for each increase of RMB 10,000 of average tax, the proportion that will be subsidized by the Finance Bureau will increase by 2%, till all the part that should be kept by the new area is awarded to the enterprises.

Article 9

After being approved by relevant programs, the high and new technology projects and cultural creative industrial projects entering into Lanzhou NewArea shall enjoy the policy in Article 5. The aggregate investment, investment strength and support standards shall be in accordance with the following table:

 

Aggregate

Investment

Support Standards

 

Investment Intensity

RMB below 0.1 billion (includes 0.1 billion)

RMB 0.1-0.3 billion (includes 0.3 billion)

RMB 0.3-1 billion (includes 1 billion)

Above RMB 1 billion

Below RMB 2 million / mu (include 2 million)

20%

40%

60%

80%

Above RMB 2 million / mu

40%

60%

80%

100%

  

Article 10

High and new technology enterprises entering into Lanzhou New Area shall also enjoy the following preferential policies, except for the above preferential policies.

1. In accordance with different conditions, science and technology programs that are listed into national major scientific and technological development planshall be supported by Lanzhou New Area with special finance reward funds that should not be less than 30% of national subsidy funds.

2. State-level engineering technology R&D centers and key laboratories that are set up in the new area, and are verified and approved by relevant authorities shall be able to enjoy the one-time subsidy from the special reward fund of Finance Bureau of Lanzhou New Area up to RMB 1 million, except for enjoying the incentive policies of Gansu Province; the province-level engineering technology R&D centers and key laboratories that are set up in the new area, and are verified and approved by relevant authorities shall be able to enjoy the one-time subsidy from the special reward fund of Finance Bureau of Lanzhou New Area up to RMB 0.5 million, except for enjoying the incentive policies of Gansu Province.

Article 11

Companies being registered and going public at Lanzhou New Area shall enjoy a one-time award up to RMB 5 million from the special reward fund of FinanceBureau of Lanzhou New Area.

Article 12

If industrial enterprises and high and new technology enterprises entering into Lanzhou New Area and conforming to national incentive industrial policiesuse electricity 10 million kilowatt-hour / year or above, these enterpriseswill be subsidized RMB 0.05 / kilowatt-hour by the special reward fund of FinanceBureau of Lanzhou New Area within 5 continuous years since the year to be constructed and put into operation, and the settlement will be carried out at the end of each year.

Article 13

For the industrial enterprises conforming to national incentive industrial policies and high and new technology enterprises, which are constructed and putinto operation before December 31, 2015, the urban infrastructure supportingfee paid by them shall be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area 100%.

Article 14

Government-invested projects, franchise projects and government purchase of Lanzhou New Area shall preferentially use products and services provided by the enterprises that have entered into the area under the same conditions; for the part of added-value tax and business tax that are generated when the enterprises in the new area purchase and use products and services provided by enterprises entering into the area during production and operation process,which should be kept by the new area, 20% of them shall be awarded to enterprises that have purchased and used products and services by the special reward fund of Finance Bureau of Lanzhou New Area.

Article 15

For enterprises entering into Lanzhou New Area that hire personnel with census registers of the new area, have signed labor contract with them and have covered social insurance for them for more than 1 year, 10 % of the social insurance charges paid by the enterprises for the above mentioned personnel shall be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area in each year, an extra award of RMB 200 / person in each year will be offered to the enterprises,and the highest total subsidy to each enterprise is RMB 0.2 million. This provision also applies to the enterprises hiring personnel owning college degree or above but no census registers of the new area.

Article 16

For regional headquarters of transnational corporations, domestic enterprises headquarters, management operation centers, and production-oriented enterprise with foreign investment registered at Lanzhou New Area, the part of the actual value-added tax, business tax and enterprise income tax paid by enterprises at that year, which should be kept by the New Area, will be subsidized by the special reward fund of Finance Bureau of Lanzhou New Area 100% in the first two years and 50% in the next three years to support the development of enterprises within 5 years since the tax registration.

Article 17

For regional headquarters of transnational corporations, domestic enterprises headquarters, management operation centers, and production-oriented enterprise with foreign investment registered at Lanzhou New Area, the part of individual income tax paid by their administrative officers and senior technicians, which should be kept by the new area, will be awarded to these persons by the special reward fund of Finance Bureau of Lanzhou New Area 100 % within 10 years since the year to pay taxes.

Article 18

Employees of enterprises entering into Lanzhou New Area enjoy the following preferential housing policies:

1. When the housing demand scale reaches 1000 persons and above, employee apartments and employee residential quarters can be independently constructed in accordance with the approval process of economically affordable housing and the New Area shall provide construction land in the manner of allocation inaccordance with national policies.

2. For the enterprises with housing demand scale of above 500 persons and below 1,000 persons, they shall select location to independently carry out construction within the scope of land for affordable housing in accordance with the approved planning and the demand of enterprises, and the cost of the project at the previous stage and the relevant support charges for public facilities, etc. shall be undertaken by them in accordance with the construction area.

3. Pursuant to the principle of „unified planning, unified design and centralized construction“, the new area will plan to construct affordable housing to provide house resources for enterprises.

4. During the process to develop commercial housing projects in the New Area, the government-owned indemnificatory housing will be constructed in a proportion of 10 % among the total construction area of residential housing in accordance with the principle of „synchronous design, preferential construction, preferential acceptance“ so as to solve housing problems of partial enterprise employees.

Chapter III

Supplementary Provisions

Article 19

For the enterprise with top 10 main business income within its industry to invest on projects of its major business direction (main business income accounts for 70% of the total enterprise income), it can be discussed specifically and more preferential policies are available.

Article 20

The date of project completion is subject to the date provided by completion acceptance report.

Article 21

The project that is not completed in accordance with the contract shall not enjoy this preferential policy.

Article 22

After project completion acceptance, if the actual investment amount of the project is found less than the contracting investment amount during the examination and verification process, the project shall not enjoy thispreferential policy.

Article 23

If the project cannot reach the contracting or designed production capacity within 2 years after project completion, it will stop to enjoy this preferential policy.

Article 24

The industrial projects described in this preferential policy include the processing projects of agricultural products.

Article 25

Preferential policies on introduction of talents, finance industry and other service industries are not covered by this preferential policy and have been formulated independently, so they shall be executed in accordance with the relevant policies.

Article 26

If this preferential policy covers the same items of other preferentialp olicies of Lanzhou New Area, the most preferential policy shall prevail, and the policies shall not be enjoyed at the same time.

Article 27

The content of this preferential policy will be incorporated into the contract documents signed with enterprises that are invited, carrying out contract management.

Article 28

The concrete measures and procedures to enjoy the award funds of this preferential policy shall be executed in accordance with „The interim measures for the administration of award funds for investment invitation of Lanzhou New Area“.

Article 29

This preferential policy shall come into force since the date of issuance.