Technology enterprises mark critical points of combination of technology and economy. Three out of the seven technology policies recently launched by Songshan Lake are “Dongguan Songshan Lake’s Implementation Measures on Nurturing of Technology Enterprises”, “Dongguan Songshan Lake’s Implementation Measures on Supporting Enterprises’ Development Through Financing” and “Dongguan Songshan Lake’s Implementation Measures on Encouraging Enterprises to Go Public”.
It can be seen from the specific terms that the above three policies mainly focus on strengthening nurturing of enterprises. From resolving financing difficulties to revitalizing capital market, and to building gradient of innovative enterprises, the policies cover a broader range with greater effects, providing strong policy support for unleashing fresh momentum for innovative development of enterprises.
Building a gradient of innovative enterprises at multiple levels
Recently, Guangdong Zhengye Technology Co., Ltd. (hereinafter referred to as “Zhengye Technology”) released announcement that the company is planning to build a wholly-owned subsidiary in Jiangxi Province, which has drawn wide attention. Zhengye Technology, a supplier of industrial testing intelligent equipment, officially relocated its headquarters to Songshan Lake in 2010. The company has been dedicated business fields such as lithium-on battery, PCB and flat panel display and has been exploring new growth points with “optical technology + automatic control” technologies as the core.
“We chose to start our business here in Songshan Lake for its advantages of comprehensive industry chain supporting environment and preferential incentive policies. We hope to accelerate settlement of technology results in this fertile land,” said Fan Bin, Vice President of Zhengye Technology.
Zhengye Technology
Songshan Lake is home to 366 high-tech enterprises such as Zhengye Technology. With their advantages in technology innovation, these high-tech enterprises have emerged as important forces driving industrial transformation and economic development of the industrial zone. Songshan Lake’s recently launched “Dongguan Songshan Lake’s Implementation Measures on Nurturing of Technology Enterprises” wishes to further improve system for nurturing technology enterprises and build a gradient of innovative enterprises featuring “high-tech enterprises-gazelle enterprises-top 100 enterprises-double three enterprise-double five enterprises”, serving as new momentum for economic development.
Huawei European Town
According to the policy, in terms of reward for innovative enterprises, high-tech enterprises are entitled to reward of 100,000 yuan and 200,000 yuan respectively for their recognition and settlement; enterprises recognized as gazelle enterprises and top 100 enterprises are entitled to a reward of 200,000 yuan and 300,000 yuan, respectively; high-tech enterprises meeting standards of “double three” (annual business revenue of 300 million yuan with investment in R&D accounting for 3% of the business revenue) and “double five” (annual business revenue of 500 million yuan with investment in R&D accounting for 5% of the business revenue) are entitled to reward of one million yuan and three million yuan, respectively.
To build a enterprise service environment of higher quality, the policy also provides strong support for incubators of technology enterprises, research carriers and technology service institutes, carrying out nurturing plan for technology-oriented entrepreneurs. For instance, the newly-recognized national, provincial and city-level incubators are entitled to a lump-sum reward of one million yuan, 300,000 yuan and 100,000 yuan, respectively.
Linrun Intelligent Valley
Linrun Intelligent Valley is one example of Songshan Lake’s incubator of technology enterprises. Its CEO Peng Jinlong expressed that the launch of the policy will serve to incentivize incubation carriers, help them decide orientation for nurturing of technology enterprises, promote cluster development of technology enterprises and constantly improve industrial structure. “We will give priority to nurturing of high-tech enterprises, strengthening policy promotion and instructing settled enterprises in active innovation,” said Peng Jinlong.
Resolving difficult and expensive financing for enterprises
In July this year, AgileX Robotics (Dongguan) Co., Ltd. had completed series A round financing worth of 100 million yuan. Other companies such as Guangdong Cheweishi Information Technology Co., Ltd. and Dongguan Tianyu Semiconductor Technology Co., Ltd. had also obtained capital investment from leading enterprises. In May, Dongguan Direct Drive Tech Co., Ltd. announced completion of series pre-A round of financing worth of dozens of million yuan…Songshan Lake has unleashed robust vitality in technology finance.
Display of product models of AgileX Robotics
Songshan Lake has been launching relevant policies to lower financing costs for enterprises and developing new type of financial products in collaboration with financial institutions to meet enterprises’ demands for financing. In the meantime, financing alignment mechanism was built and improved to carry out alignment of financing and visit to enterprises on a regular basis. A financial service center was also built. As such a diverse and chain-type financial service system has been formed.
The launch of “Dongguan Songshan Lake’s Implementation Measures on Supporting Enterprises’ Development Through Financing” is dedicated to resolving problems faced by enterprises such as difficult and expensive financing. On the whole, the policy shows features such as further extension of means of support, greater effects and optimization of requirements for application of subsidy.
It is learned that subsidies granted by the city and the industrial zone totally account for 90% under this policy with the subsidies being consistent with or higher than the policy at the city level. In addition, discounted interest for financing guarantee loan is newly added to subsidize guarantee fees of financing guarantee institutions; percentage of discounted interest for credit loan has been increased with length of subsidy for loan projects being extended and credit for loan discounted interest being increased; moreover, supplementary explanation has also been added with regard to application qualification of payment-on-time for one-year loan.
Rendering picture of Songshan Lake Science City under planning and construction (partial)
“The policy can considerably lower financing costs for enterprises with Songshan Lake emerging as a place with competitive financing costs for enterprises.” Lu Qingpeng, General Manager of Dongguan Kechuang Financing Guarantee Co., Ltd., spoke highly of the launch of the policy. He said that he will actively align with the preferential policies in the future and build a bridge to connect enterprises in the industrial zone with financial institutions through multiple measures. More financial resources will be open to micro- and small-sized enterprises in a targeted manner.
Growing in size and strength dependent on the capital market
Dongguan Quotient Kinematics Machine Co., Ltd. is a homegrown enterprise of Songshan Lake. The company specializes in R&D, production, sale and application of light-weight high-end industrial robots. Since its founding in 2011, the company has become one of the reserved enterprises of the industrial zone to go public.
Products of Quotient Kinematics Machine
“We have been thriving with the help of the Management Committee of Songshan Lake. The industrial ecology here is relatively comprehensive with sound foundation for innovation and entrepreneurship.” Chen Shiyu, Director of Strategic Development of Quotient Kinematics Machine, expressed that among the series of policies newly launched this time, he was most interested in “Dongguan Songshan Lake’s Implementation Measures on Encouraging Enterprises to Go Public”. He said that the company has entered a stage of rapid development and needs to raise funds from the capital market. He hoped to achieve support from more relevant policies.
Songshan Lake now possesses five listed companies and 32 reserved companies waiting to go public. The expanded rewards in the policy include: reward for listing of a subsidiary of the listed company at home, reward for introduction of listed companies of potential listed companies, and reward for enterprises applying to go public on the mainboard capital market of Hong Kong Stock Exchange (limited to H share).
Uni-Trend Technology
In terms of stepping up rewards, the reward ratio for financing for going public at home is increased from 0.5% based on the total amount of the funds raised for IPO to 1% with the maximum reward of 8 million yuan being increased to 15 million yuan; as to reward for selected financing in the National Equities Exchange and Quotations, the reward credit has also been increased from 1 million yuan to 6 million yuan.
Workshop of EAST
People in charge of Songshan Lake Technology and Education Bureau expressed that improving sound development of capital market represents a critical link in development of technology finance. It is hoped that relevant policies can be launched to encourage enterprises in the industrial zone to grow in size and strength with the use of the capital market. Efforts should be made to facilitate in-depth integration of technology, finance and industry to accelerate innovative development of technology finance.