Measures to Develop Nansha Prepared Meal Industrial Park

Normative Document No 2 [2023] of Nansha District Bureau of Agriculture and Rural Affairs of Guangzhou Municipality

Notice by Nansha District Bureau of Agriculture and Rural Affairs of Guangzhou Municipality on Issuing the Measures to Develop Nansha Prepared Meal Industrial Park

All relevant parties,

Measures to Develop Nansha Prepared Meal Industrial Park has been approved by Nansha district people's government and are hereby issued to you for your compliance and implementation. Problems encountered in the implementation shall be directly reported to Nansha district bureau of agriculture and rural affairs of Guangzhou municipality.

Nansha district bureau of agriculture and rural affairs of Guangzhou municipality

March 31, 2023

Measures to Develop Nansha Prepared Meal Industrial Park

These measures are formulated as part of the efforts to accelerate the construction of Nansha Prepared Meal Industrial Park in Guangzhou (hereinafter referred to as the "industrial park"), enhance the effect of agricultural agglomeration, promote the structural reform of agricultural supply side and improve the agricultural competitiveness of Nansha. According to the general principles specified in the Notice on Issuing 10 Measures to Accelerate the High-quality Development of the Prepared Meal Industry in Guangdong of the General Office of the People's Government of Guangdong Province (Normative Document No 10 [2022] of the General Office of the People's Government of Guangdong Province), the Regulations on Promoting the Prepared Meal Industry of Guangdong Province, the Overall Plan for Promoting Comprehensive Cooperation among Guangdong, Hong Kong and Macao by Further Deepening Opening-up in Nansha district of Guangzhou (Normative Document No 13 [2022] of the State Council), and the notice by Nansha district bureau of agriculture and rural affairs of Guangzhou municipality on the Implementation Rules of Measures to Promote Modern Agriculture in Nansha district (Normative Document No 1 [2022] of Nansha district bureau of agriculture and rural affairs of Guangzhou municipality) (hereinafter referred to as the "implementation rules"), these measures are formulated in light of the actual needs of building Nansha Prepared Meal Industrial Park within the budget of 50 million yuan ($7 million) granted by Nansha district bureau of finance of Guangzhou municipality.

Article I General provisions

(I) Scope of application: the entities within the administrative area of Nansha that have been approved to settle in the industrial park.

(II) The entities should meet the following conditions:

1. They are legally registered in the administrative area of Nansha, have legally been included in Nansha's governmental statistics and have been managed by Nansha's tax authorities.

2. They have sound financial systems, are independent legal entities and independently conduct accounting.

3. Those which are to build productive agricultural projects should own agricultural land in the industrial park with the remaining contractual years of land lease not less than two years (counted from the date when the industrial park project is approved; hereinafter, the same). When the entities are to use the construction land for their projects, the construction land should belongs to the entities, or the construction land has a lease term of no less than 3 years and notarized by a notary agency as proper construction land for the planned construction project.

Article II Supporting the land use for the prepared meal project

(I) For those which make full use of villages' reserved land, industrial parks and old factory buildings to develop the prepared meal industry in Nansha, such as buying or renting office buildings, industrial plants and warehouses for their own use, shall be granted a subsidy of no more than 50 percent of the average rent in the same area and no more than 50 yuan per square meter per month for maximum three years. The annual subsidy should be no more than 1 million yuan and should not exceed the actual expenditure.

(II) Subsidies shall be granted to those which rent land for building modern agro-industrial parks, especially more than 100 mu (7 hectares) for more than five years for the core area. Those eligible should be granted a one-time rent subsidy of no more than 500 yuan per mu and no more than the actual rent expenditure.

Article III Promoting scientific research and informatization of the prepared meal industry

For those which carry out R&D and informatization, Nansha district bureau of finance shall grant a subsidy of no more than 45 percent of their project investment and no more than 3 million yuan for one project. Those which carry out public good projects, such as public welfare research projects and public information platforms (including e-commerce), can be fully subsidized. The R&D and informatization projects mainly refer to informatization, technology research and development, research achievement commercialization, expert team services.

Article IV Cultivating the demonstration enterprises

Those rated as provincial "vegetable basket" bases or Guangdong-Hong Kong-Macao Greater Bay Area (GBA) "vegetable basket" production bases shall be granted a one-time reward of 200,000 yuan. Those rated as GBA "vegetable basket" product processing enterprises shall be granted a one-time reward of 200,000 yuan.

Article V Supporting the increasing investment in facilities and equipment

(I) For those which carry out infrastructure projects, Nansha district bureau of finance shall grant a subsidy of 45 percent of their project investment and no more than 5 million yuan for one project. Public infrastructure projects can be fully subsidized. Infrastructure mainly refers to road construction and land consolidation for building modern agro-industrial parks as well as flood control, drainage, water supply, power supply, communications, network, and sanitation.

(II) For those which set up production facilities and industrial integration projects, Nansha district bureau of finance shall grant a subsidy of 45 percent of their project investment and no more than 5 million yuan for one project. Production facilities mainly refer to greenhouses, processing rooms for agricultural products, water-saving irrigation, water-fertilizer integration, livestock and poultry breeding, aquaculture, inspection and testing facilities and equipment. Industrial integration projects mainly refer to the installation or upgrading of agricultural product production and processing equipment and facilities, storage, cold chain distribution and circulation facilities in modern agro-industrial parks, as well as supporting facilities for new industries and new business forms (agritourism, e-commerce of agricultural products.).

Article VI Purchase of raw materials

(I) To encourage prepared meal enterprises in Nansha to build prepared meal processing bases in Nansha's partner-areas, enterprises with fixed asset investment of more than 20 million yuan will be granted a subsidy of no more than 3 percent of their actual fixed asset investment for projects, and no more than 1.5 million yuan for one enterprise.

(II) Those which buy raw materials from Nansha's partner-areas with an annual accumulated purchase amount of 300,000 yuan or above shall be granted an annual reward of 50,000 yuan. For each increase of 300,000 yuan in the purchase amount, an additional reward of 50,000 yuan shall be granted, maximum 200,000 yuan, for three consecutive years.

Article VII Supporting the founding of prepared meal associations

Efforts will also be made to encourage the entities to set up associations of prepared meal enterprises in Nansha, supporting the exhibition, event organization, and operation. The associations should play the leading role in enhancing the research and exchange with member enterprises, clarifying specific measures according to the needs of enterprises and based on the enterprises' resources. For the associations of prepared meal enterprises which hold international and national fairs, a subsidy of 100 percent of their fair arrangement expenses will be granted, maximum 500,000 yuan. For the associations of prepared meal enterprises which hold provincial fairs, a subsidy of 80 percent of their fair arrangement expenses will be granted, maximum 400,000 yuan. For the associations which hold municipal fairs, a subsidy of 60 percent of their fair arrangement expenses will be granted, maximum 300,000 yuan. The subsidy covers venue rental fees, booth setup fees and promotion fees.

Article VIII Supporting the development of financial services for the industry

The entities which apply for a loan of more than 1 million yuan for the production and operation will be granted a discount subsidy according to the loan prime rate (LPR) (or the actual interest rate if the actual interest rate is lower than LPR). The annual discount subsidy for each entity in the industrial park should not exceed 50 percent of the gross interest of their loans for projects in the industrial park, maximum 1 million yuan.

Article IX Supporting the traceability and standardization of prepared meal industry

(I) The entities are encouraged to join Global Traceability Center and apply the system. The entities who delegate the institutions of inspection, testing and certification to provide inspection, testing and certification services through Global Traceability Center will be granted a subsidy of 50 percent of the service fees, maximum 200,000 yuan for one entity annually.

(II) The entities are encouraged to apply the mark of Global Traceability Center to the package of their products. They will be granted a reward of 0.1 yuan per traceability mark, maximum 300,000 yuan for one entity annually.

(III) Those which lead the formulation of basic general standards such as national standards, industrial standards and local standards for prepared meals will be granted a one-time subsidy of 100,000 yuan. If they are also qualified for other subsidies of the same type offered by other departments of Nansha district, the highest one should be granted only once.

Article X Brand culture development

(I) Nansha Prepared Meal Experience Center will be encouraged to set up to promote the integration of the prepared meal industry with leisure, tourism and cultural industries. Food events shall be continuously held to create a favorable atmosphere for the development of prepared meal culture. Each entity joining Nansha Prepared Meal Experience Center will be given an annual subsidy of 10,000 yuan for three consecutive years.

(II) In terms of offline channels, the entities are encouraged to apply for the authorization to use the "SUPERIOR NANSHA" logo on the package. In terms of online channels, the entities are encouraged to apply for entering into the e-commerce platform SUPERIOR NANSHA and apply for authorization to use the "SUPERIOR NANSHA" logo. Entities will be granted a subsidy of one percent of the annual sales volume of products granted with SUPERIOR NANSHA authorization, maximum (including) 300,000 yuan per year for a single enterprise, for three consecutive years.

(III) For those which carry out agricultural branding projects, Nansha district bureau of finance shall grant a subsidy of 45 percent of the project investment, maximum 2 million yuan for one project. The public welfare projects to develop regional public brands can be fully subsidized. Agricultural branding projects mainly refer to promoting the encouraged products of the industrial park and developing distinctive local brands, including creating, designing, registering and promoting the agricultural brands and intellectual property rights, as well as organizing conferences.

Article XI If the same project or item is entitled to the provisions of these measures, the implementation rules or other supporting policies of Nansha (including policies to offer or bear funds that Nansha has formulated as instructed by the higher-level authority), the highest subsidy should be granted only once, unless otherwise specified. For those which have obtained financial support from the higher-level authority, Nansha district bureau of finance should grant ancillary support of maximum 1:1, but the financial subsidy should not exceed 75 percent of the total investment of the project. In case of any adjustment of relevant policies by the higher-level authority, the policies or agreements should be adjusted accordingly.

In principle, government funds obtained by enterprises in various ways should not exceed their annual contribution to Nansha's economic development (including output value). If the subsidies exceed their annual contribution to Nansha's economic development (including output value), the excess part should be postponed to the next year. Where the entities carry out R&D, informatization, industrial integration and agricultural branding, and if the projects are granted with a subsidy of 45 percent of the investment capital, an on-site argumentation should be conducted before the entities applying for the subsidy. The specific subsidy proportion should be subject to the argumentation result.

Article XII After being granted with the subsidies specified in these measures, the entities should sign a written commitment. If they breach the commitment, they should return the subsidies they have received. A withdrawal mechanism for entities and a rules violation notification mechanism with the tax office should be set up to prevent them from not performing their obligations or selling or subleasing the subsidized asset after receiving the subsidy. Those suspected of violating laws and committing crimes will be handled by the judicial organs.

Article XIII Relocation of enterprises from another district of Guangzhou to Nansha should be conducted according to the regulations of Guangzhou. In case of hand-in funds in budget transfer, the above-mentioned subsidy should be deducted during policy implementation.

Article XIV The entities should provide supporting documents truthfully as required and should not practice frauds. If any fraudulent practice is found, the qualification for subsidies will be revoked, while the applicants will not be allowed to apply for any subsidy again for three years and should return all the subsidies they have received.

Article XV The words describing numerical values including "up to", "above", "no less than", "no lower than", "no higher than" and "no more than" in these measures include the base values. All the currency mentioned in these measures is yuan, unless otherwise indicated.

Article XVI These measures should enter into force since the date of issuance and should be valid for five years from May 31, 2022 to the date of issuance of these measures, these measures may be referred to. In case of any adjustment or change of laws, regulations or relevant policies within the validity period of these measures, such adjustment or change should prevail.

Matters not covered in these measures should be deliberated and decided by the leading group for building modern agro-industrial parks in Nansha district.

Form of Disclosure: Active Disclosure

Issued by Nansha district bureau of agriculture and rural affairs of Guangzhou municipality on April 11, 2023