SQHG [2024] No. 18

Notice of Shenzhen Qianhai Authority on Issuing the "Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone"

To All Relevant Units:

The "Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone" are hereby issued for implementation.

Shenzhen Qianhai Authority

August 3, 2024

Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone

Chapter 1 General Provisions

Article 1: To create an internationally renowned business environment and standardize the management of innovative industrial housing in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (hereinafter referred to as Qianhai Cooperation Zone), these Measures are formulated in accordance with the Regulations of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen Special Economic Zone, the Measures for the Administration of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority (Shenzhen Municipal People's Government Decree No. 360), the Revised Measures for the Management of Innovative Industrial Housing in Shenzhen (SFBG [2021] No. 1), and other relevant regulations, taking into account the actual situation of Qianhai Cooperation Zone.

Article 2: These Measures apply to the allocation and supervision of innovative industrial housing included in the Shenzhen Industrial Land and Housing Supply and Demand Service Platform (hereinafter referred to as the Supply and Demand Service Platform) by the Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority (hereinafter referred to as Qianhai Authority).

For the purpose of these Measures, innovative industrial housing refers to policy-based industrial housing dominated by Qianhai Authority and rented or sold in accordance with regulations to meet the spatial needs of innovative enterprises and institutions, including office space, research and development space, industrial workshops, etc.

Article 3: The allocation of innovative industrial housing shall emphasize deepening Shenzhen-Hong Kong cooperation, adhere to the principles of scientific rationality, conservation and intensification, and efficient utilization, and strengthen industrial agglomeration.

Chapter 2 Preparation and Management

Article 4: Under the guidance of the Shenzhen Municipal Leading Group for the Construction and Management of Innovative Industrial Housing, Qianhai Authority shall fulfill its responsibilities as the management entity, responsible for reviewing and approving matters related to the planning, construction, purchase, leasing, access, management, preferential policies, adjustment, and withdrawal of innovative industrial housing, coordinating and resolving major issues arising from the implementation of relevant policies for innovative industrial housing, and supervising and inspecting innovative industrial housing.

Article 5: Innovative industrial housing shall be prepared through the following methods:

(1) Investment, purchase, or unified leasing by Qianhai Authority;

(2) Enterprises obtaining the use right of industrial and other land through bidding, auction, or listing, and transferring a certain proportion to Qianhai Authority upon completion;

(3) Allocating and returning a certain proportion to Qianhai Authority in urban renewal projects, industrial land plot ratio increase projects, and other land planning adjustment projects;

(4) Other preparation methods approved by Qianhai Authority.

Article 6: Innovative industrial housing shall be allocated by leasing in principle. Where it is necessary to sell, it shall be strictly implemented in accordance with the relevant provisions of the Measures for the Management of Innovative Industrial Housing in Shenzhen, and the sale procedure shall refer to the leasing procedure stipulated in these Measures.

Article 7: Qianhai Authority may designate relevant departments or entrust third-party institutions to be responsible for the daily operation and management of innovative industrial housing in Qianhai Cooperation Zone (hereinafter referred to as the daily operation and management institution).

Chapter 3 Leasing Conditions and Standards

Article 8: Enterprises and institutions applying for the allocation of innovative industrial housing (hereinafter collectively referred to as institutions) shall simultaneously meet the following conditions:

(1) In principle, they shall operate actually in Qianhai Cooperation Zone (those who commit to operating actually in Qianhai Cooperation Zone shall meet the actual operation requirements within the commitment period), or, although not operating actually in Qianhai Cooperation Zone, they shall have a significant promoting effect on Shenzhen-Hong Kong cooperation and the development of modern service industries and have signed a cooperation agreement with Qianhai Authority;

(2) Their main business shall be finance, convention and exhibition, trade and logistics, technology services, professional services, new international trade, modern marine industries, as well as digital and fashion, culture, sports, and tourism, advanced manufacturing, and other industries encouraged for development in Qianhai Cooperation Zone;

(3) They shall operate with integrity and not be listed on the list of severely dishonest entities at the time of application;

(4) They shall have no criminal records of bribery or corruption.

For the purpose of these Measures, institutions include legal persons (including branches) and unincorporated organizations.

Article 9: The rental price of innovative industrial housing shall refer to the reference rental price for industrial housing of the same grade in the same district published by the municipal (district) housing leasing competent department. If no reference rental price is published for the district, Qianhai Authority may entrust a qualified third-party institution to conduct an assessment (hereinafter collectively referred to as the reference price).

In principle, the rental price shall be 30%-70% lower than the reference price and shall be published annually.

Article 10: Based on Qianhai's industrial development orientation, Qianhai Authority shall formulate rental discount standards and area allocation standards on the basis of the reference price, which shall match the institutions' contributions to Qianhai.

The area allocation standards for innovative industrial housing shall be determined based on the following circumstances:

(1) The industry category to which the institution belongs;

(2) The institution's operating and development status, including asset size, sales scale, personnel scale, R&D investment, and independent intellectual property rights;

(3) Basic project requirements, including output intensity, development capabilities, and R&D capabilities;

(4) Requirements for energy consumption, environmental protection, and work safety;

(5) Standards for the use of building area or basis for verification;

(6) The institution's existing industrial land and housing situation in the city;

(7) The building area of innovative industrial housing to be allocated and other conditions.

In principle, for-profit institutions applying for innovative industrial housing shall not exceed 8,000 square meters in area, and non-profit institutions shall not exceed 500 square meters. Innovative industrial housing shall be allocated within the same property source in principle. When the remaining unallocated area on the same floor is less than 300 square meters, the remaining area can be allocated as an additional area for leasing.

Article 11: The rental discount standards for for-profit organisations applying for innovative industry space shall be determined in accordance with the following provisions:

(1) Organisations engaged in industries such as finance, convention and exhibition, trade and logistics, technology services, professional services, new international trade, modern marine industries, as well as digital and fashion, culture, sports, tourism, and advanced manufacturing, and meeting one of the following conditions, shall pay a rental price equivalent to 30% of the reference price for innovative industry space:

1. Organisations with an annual output value (operating revenue) exceeding CNY 1 billion (CNY 5 billion for wholesale);

2. National company-type funds with direct financial participation from the Ministry of Finance;

3. Hong Kong-funded organisations.

(2) Organisations engaged in the aforementioned industries and meeting one of the following conditions shall pay a rental price equivalent to 50% of the reference price for innovative industry space:

1. Organisations with an annual output value (operating revenue) exceeding CNY 50 million (CNY 1 billion for wholesale);

2. Fortune Global 500 companies, China's Top 500 companies, and their first-tier subsidiaries with more than 50% shareholding (including joint shareholding) or actual control, or Shenzhen headquarters enterprises and Qianhai headquarters enterprises;

3. Enterprises listed on the Shanghai Stock Exchange, Shenzhen Stock Exchange, Beijing Stock Exchange, or overseas stock exchanges such as Hong Kong, New York, London, Tokyo, Singapore, and NASDAQ (excluding small capital markets and over-the-counter trading), and their first-tier subsidiaries with more than 50% shareholding or actual control;

4. National-level specialized, refined, differential, innovative "little giant" enterprises, national manufacturing champions in individual products, and China's Top 500 manufacturing enterprises;

5. Unicorn companies and leading enterprises in niche markets (including regional branches of overseas unicorn companies and overseas niche market leaders in China);

6. Qianhai Global Service Providers.

(3) For other organisations engaged in industries such as finance, convention and exhibition, commercial and trade logistics, science and technology service, professional service, new - type international trade, modern marine industry, as well as digital and fashion, cultural and tourism, advanced manufacturing, etc., the rental price of the innovative industrial premises applied for lease - allocation shall be 70% of the reference price.

Article 12: The rental discount standards for non-profit organisations applying for innovative industry space shall be determined in accordance with the following provisions:

(1) Non-profit organisations that have been awarded national 5A, provincial 5A, municipal 5A, national 4A, provincial 4A, or municipal 4A accreditation and meet the development requirements of Qianhai's industries shall pay a rental price equivalent to 30% or 40% of the reference price for innovative industry space, respectively.

(2) Non-profit organisations that have signed strategic cooperation framework agreements with the Qianhai Authority shall pay a rental price equivalent to 30% of the reference price for innovative industry space.

(3) Internationally registered social groups in China or overseas non-governmental organisations, foreign chambers of commerce, and international organisations approved by relevant state organs applying for innovative industry space shall pay a rental price equivalent to 30% of the reference price.

(4) For other non-profit organisations engaged in industries such as finance, convention and exhibition, commercial and trade logistics, science and technology service, professional service, new - type international trade, modern marine industry, as well as digital and fashion, cultural and tourism, advanced manufacturing, etc., the rental price of the innovative industrial premises applied for lease - allocation shall be 50% of the reference price.

Article 13: Organisations that meet the criteria for higher rental discounts can apply for the corresponding discount. Upon approval by the Qianhai Authority, the rental discount shall be implemented from the month following the approval.

Organisations not actually operating in the Qianhai Cooperation Zone but committing in writing to meet the conditions stipulated in these Measures within a year may enjoy the corresponding rental discount standards in accordance with the aforementioned provisions. Organisations enjoying rental discounts under this provision shall include corresponding liability for breach of commitment conditions in the industrial development supervision agreement or lease contract.

Article 14: The Qianhai Authority may formulate separate leasing rules for innovative industry space based on the needs of Qianhai's industrial development and the characteristics of each industry, with rental discount standards within the following ranges:

(1) For-profit Organisations: Rental discount standards shall be determined in grades within the range of 30%-70% of the reference price.

(2) Non-profit Organisations: Rental discount standards shall be determined in grades within the range of 30%-50% of the reference price.

Article 15: The allocation of innovative industry space shall involve a selection process.

After accepting applications from for-profit organisations, the Qianhai Authority shall conduct comprehensive selection based on indicators such as output intensity (existing output value, operating revenue, etc.), development capacity (promotion of Shenzhen-Hong Kong cooperation, market share, average annual compound growth rate, etc.), R&D capacity (number of R&D personnel, number of patents, R&D investment intensity, product standards, etc.), and industrial contribution (filling gaps in the industrial chain, contribution to the Qianhai Cooperation Zone, and other contribution indicators). Organisations are categorised into mature, growing, and startup based on their output value (operating revenue). The area applied for by mature organisations for innovative industry space generally does not exceed 8,000 square meters, 5,000 square meters for growing organisations, and 1,000 square meters for startup organisations.

After accepting applications from non-profit organisations, the Qianhai Authority shall conduct comprehensive selection based on indicators such as institutional development (operational status, system development, personnel strength, etc.), achievement transformation (public service platform construction, standard formulation, research projects, etc.), cooperative development (matching activities, enterprise introduction, talent introduction, etc.), and industrial contribution (social influence, contribution to the Qianhai Cooperation Zone, and other contribution indicators).

Article 16: The lease term for innovative industrial premises shall be no less than one year and no more than five years.

Organisations applying for a lease renewal of innovative industrial premises should submit a written renewal application within six months prior to the expiry of the contract. In principle, the number of renewals shall not exceed two times.

Article 17: A rent-free decoration period may be set for organisations applying for the allocation of innovative industrial premises. For premises with a leased area not exceeding 2,000 square meters, the rent-free decoration period shall not exceed three months; for those exceeding 2,000 square meters, the rent-free decoration period shall be no more than six months.

Article 18: Innovative industrial premises are principally for self-use and cannot be sublet or sub-leased without authorisation, nor can their original use be altered without permission. With the consent of the Qianhai Authority, an organisation may arrange for its branches, first- and second-tier subsidiaries with a shareholding ratio exceeding 50%, and enterprises under the same actual controller (hereinafter collectively referred to as affiliated enterprises) to jointly use the leased innovative industrial premises.

If the affiliation between the organisation and the affiliated enterprise using the innovative industrial premises terminates, the Qianhai Authority shall be informed in writing within 15 working days from the date of termination.

Article 19: For organisations of significant importance to Shenzhen-Hong Kong cooperation, economic development, institutional innovation, modern service industry development, and technological development and institutional innovation mechanisms in the Qianhai Cooperation Zone, the Qianhai Authority may introduce them through signing cooperation agreements.

The housing needs of key projects or institutions introduced on a targeted basis, as well as their allocation conditions, rent discount standards, allocated area, allocation process, rent-free period, etc., shall be determined separately by the Qianhai Authority but must be processed through the supply and demand service platform.

Chapter 4 Application Materials and Allocation Process

Article 20: The materials required for applying for the allocation of innovative industrial premises shall be determined by the Qianhai Authority according to these Measures and listed in the allocation announcement. Organisations shall be responsible for the authenticity, validity, and legality of the submitted application materials.

Article 21: The Qianhai Authority is responsible for formulating and publicly releasing the allocation announcement on the supply and demand service platform. The announcement shall be published for no less than 10 working days.

The allocation announcement includes: details of the innovative industrial premises to be allocated, allocation conditions, application materials and deadlines, main content of the lease contract, rent discount standards, etc.

Article 22: The standard business process for applying for the allocation of innovative industrial premises is as follows:

(1) Application. Organisations submit application materials according to the allocation announcement requirements.

(2) Qualification review. The daily operation and management agency shall complete the qualification review within 10 working days after the deadline for the allocation announcement.

(3) Selection. The Qianhai Authority conducts selection to form the intended allocation results for innovative industrial premises.

(4) Public notification. Unless involving confidential or special circumstances, the intended allocation results for innovative industrial premises shall be publicly announced for no less than three working days. Objections to the intended allocation results should be submitted in writing to the Qianhai Authority within the public announcement period, and the Qianhai Authority shall investigate, verify, and respond to the objections within 10 working days. If the objection is upheld, the Qianhai Authority shall re-announce the intended allocation results.

(5) Announcement of results. If there are no objections or the objections have been properly addressed, the Qianhai Authority shall make a decision on the allocation of innovative industrial premises and announce the allocation results on the supply and demand service platform.

(6) Signing of the lease contract and industrial development supervision agreement. Organisations should sign a lease contract with the daily operation and management agency within 20 working days from the date of the allocation decision announcement, and the daily operation and management agency shall deliver the premises for use as per procedures. The Qianhai Authority may decide whether to sign an industrial development supervision agreement with the organisation based on actual work needs; if no industrial development supervision agreement is signed, relevant clauses on industrial supervision and liability for breach should be included in the lease contract.

If, due to special circumstances, the lease contract cannot be signed promptly, with the consent of the Qianhai Authority, the deadline may be appropriately extended, but not exceeding six months.

Article 23: The lease contract includes: basic information of the innovative industrial premises, leased area, rent price (rent discount standard), lease term, rent-free decoration period, related cost responsibilities, industrial supervision, renewal clauses, liability for breach, dispute resolution clauses, etc.

Chapter 5 Supervision After Allocation

Article 24: The Qianhai Authority shall make full use of information technology to ensure the management of allocated innovative industry housing is standardised, scientific, efficient, open, and transparent.

Article 25: The daily operation and management agency is responsible for supervising and managing the allocated innovative industry housing, and shall handle violations of law or breach of contract in accordance with the law with the consent of the Qianhai Authority. The lease contract may be terminated under any of the following circumstances:

(1) Providing false statements or falsifying relevant materials when applying for innovative industry housing.

(2) Operating illegally or using innovative industry housing for illegal activities.

(3) Subletting or sharing innovative industry housing without authorisation, or altering the original building structure or usage function.

(4) Failing to rectify after being notified of unpaid fees within 30 calendar days.

(5) Occurrence of serious safety accidents.

(6) Not actually operating within the Qianhai Cooperation Zone and failing to rectify after being notified within 30 calendar days.

(7) Failing to meet committed obligations or failing to meet allocation conditions upon verification.

In cases where the lease contract is not signed within the prescribed time limit without justifiable reasons or where the seventh circumstance in paragraph 1 of this Article arises when signing the lease contract, the lease contract may not be signed.

Article 26: For those needing to expand the lease scale or change the lease address due to technological upgrades, scale expansion, or other reasons, they may submit an application for lease exchange or expansion to the daily operation and management agency. Upon review by the Qianhai Authority and confirmation of meeting the conditions, the lease may be exchanged or expanded, and the results shall be publicly announced through the supply and demand service platform.

For those needing to reduce the lease scale or terminate the lease early due to personal reasons, they may submit an application for rent reduction or early lease termination to the daily operation and management agency. Upon review by the Qianhai Authority and confirmation of meeting the conditions, rent reduction or early lease termination may be granted.

With the consent of the Qianhai Authority, the daily operation and management agency may terminate the lease contract early and require the tenant to vacate within 3 months due to public interests, force majeure, or policy adjustments.

Article 27: Relevant functional departments and staff who neglect their duties, abuse their powers, fail to perform or improperly perform the duties stipulated in these Measures, or use their positions for improper gain shall be punished in accordance with laws and regulations. Those suspected of committing crimes shall be transferred to judicial authorities for handling in accordance with the law.

Chapter 6 Supplementary Provisions

Article 28: Enterprises subordinate to the Qianhai Authority that proactively undertake strategic responsibilities and cooperate with the Qianhai Authority to introduce institutions to occupy property spaces belonging to Qianhai Authority-affiliated enterprises may be granted rent concessions to such institutions with reference to these Measures.

Article 29: For other government properties that do not meet the conditions for innovative industry housing, matters related to their leasing methods, approval authorities, and rental procedure management shall be implemented in accordance with relevant regulations of Shenzhen City.

Article 30: The meanings of the following terms in these Measures are:

(1) "Qianhai Cooperation Zone" refers to the area designated in the "Plan for Comprehensively Deepening the Reform and Opening-Up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone" issued by the CPC Central Committee and the State Council.

(2) "For-profit institutions" include but are not limited to enterprises, major scientific research platforms, accelerators, incubators, etc.

(3) "Non-profit institutions" include but are not limited to charitable organisations, volunteer service organisations, industry associations and chambers of commerce, industry organisations, research institutions, service agencies, innovation carriers, federations, cooperation platforms, bases, etc. (excluding party and government organs and public institutions).

(4) "Hong Kong-funded institutions" refer to enterprises registered in the Qianhai Cooperation Zone with Hong Kong investors holding more than 25% of the shares. "Hong Kong investors" refer to legal entities, permanent residents of the Hong Kong Special Administrative Region of China, and mainland residents who have settled in Hong Kong (with their mainland household registration cancelled) registered or incorporated in accordance with the laws of the Hong Kong Special Administrative Region and engaged in substantive commercial operations. Institutions that have acquired more than 50% of the equity of the aforementioned Hong Kong legal entities through acquisition or merger for more than one year are considered Hong Kong investors in accordance with the aforementioned provisions.

"Substantive commercial operations" refer to operations meeting the following criteria:

1. Registered or incorporated in accordance with the Hong Kong Companies Ordinance or other relevant ordinances, and having obtained a valid Business Registration Certificate, a license or permit to carry out the business (if required by Hong Kong legislation).

2. Registered or incorporated in Hong Kong and engaged in substantive commercial operations for more than one year (including one year).

3. Paid profits tax in accordance with the law during the period of engaging in substantial commercial operations in Hong Kong;

4. Owning or renting business premises in Hong Kong for substantive commercial operations.

5. Employing residents of Hong Kong who are not restricted in their residence or mainland individuals who have settled in Hong Kong with one-way permits.

The identification and support standards for foreign-funded institutions (including Macao and Taiwan-funded institutions) shall be implemented with reference to those for Hong Kong-funded institutions.

(5) Nationally designated "little giants" with specialisation and innovation, and national champions in manufacturing are determined based on the latest announcements by the Ministry of Industry and Information Technology.

(6) "Fortune Global 500" companies are determined based on the latest announcements by Fortune magazine; "China's Top 500 Companies" and "China's Top 500 Manufacturing Companies" are determined based on the latest joint announcements by the China Enterprise Confederation and the China Entrepreneurs Association.

(7) "Unicorn companies" refer to companies that have been established for less than 10 years, have a valuation of more than USD 1 billion in their most recent round of funding, and are not yet listed. The specific list is based on the latest announcements by institutions such as Hurun, Forbes, and Great Wall.

(8) "Qianhai Global Service Providers" refers to legal or non-legal entities and their branches that actually operate in the Qianhai Cooperation Zone, belonging to the top 50 globally and top 20 domestically ranked companies in eight major modern service industries and their sub-sectors, including modern finance, trade logistics, information services, technology services, cultural creativity, business services, shipping services, and public services, as well as those listed in the "Fortune Global 500", "China's Top 500 Companies", and "GaWC List".

(9) "National 5A and 4A Qualifications", "Provincial 5A and 4A Qualifications", and "Municipal 5A and 4A Qualifications" refer to the objective and comprehensive evaluations conducted by evaluation institutions in accordance with assessment standards, methods, and procedures specified in the "Measures for the Evaluation of Social Organizations" (Decree No. 39 of the Ministry of Civil Affairs). These evaluations are carried out by civil affairs departments of governments at all levels to fulfill their supervisory responsibilities over social organizations and promote their healthy development.

(10) Within for-profit organizations, mature institutions refer to those with an annual output value (operating revenue) exceeding CNY 1 billion, growing institutions refer to those with an annual output value (operating revenue) between CNY 100 million and CNY 1 billion, and startups refer to those with an annual output value (operating revenue) of not more than CNY 100 million.

(11) The currency referred to in these Measures is Chinese Yuan (CNY).

(12) In these Measures, the terms "within", "above", and "not exceeding" include the stated figure; whereas "less than" and "exceeding" do not include the stated figure.

Article 31: These Measures shall come into force on August 17, 2024, and shall be valid for five years. The "Measures for the Management of Industrial Support Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Trial)" (SQHG [2022] No. 3) shall be simultaneously repealed.

Policy Interpretation of the "Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone"

To further standardize the management of innovative industrial housing in the Qianhai Cooperation Zone and promote the high-quality development of modern service industries, in accordance with regulations such as the "Regulations of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in the Shenzhen Special Economic Zone", the "Measures for the Administration of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority" (Shenzhen Municipal People's Government Decree No. 360), and the "Shenzhen Measures for the Management of Innovative Industrial Housing (Revised Edition)" (SFBG [2021] No. 1, hereinafter referred to as the "Municipal Measures"), the Qianhai Authority has revised the "Measures for the Management of Industrial Support Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Trial)" to form the "Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone". The policy revision and interpretation are as follows:

I. Amendment of Industrial Support Housing to Innovative Industrial Housing

(I) Amendment of Name. The original "Measures for the Management of Industrial Support Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Trial)" has been revised to "Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone".

(II) Adaptive Modifications Based on Municipal Measures. The "Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone" have been detailed in accordance with the Municipal Measures and revised based on the actual situation in Qianhai. The details are as follows:

1. Rental tendering is conducted on the municipal industrial housing supply and demand service platform.

2. Clarify the main business scope of institutions occupying innovative industrial housing in combination with the Municipal Measures and the "Overall Development Plan for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone".

3. Develop selection criteria for institutions occupying Qianhai's innovative industrial housing by referencing municipal and district measures for innovative industrial housing and combining Qianhai's actual situation.

II. Adjustment of Rental Discount Ranges.

The previous five tiers of discounts for for-profit institutions, namely 30%, 40%, 50%, 60%, and 70%, have been adjusted to three tiers: 30%, 50%, and 70%. 2. The discount range for non-profit institutions has been adjusted from 20%-50% to 30%-50% in accordance with Municipal Measures.

III. Clarification of the Upper Limit of Leased Area Standards.

Set an upper limit for the leased area based on the nature and development stage of the institution. The leased area for for-profit institutions generally does not exceed 8,000 square meters, with mature institutions generally not exceeding 8,000 square meters, growing institutions generally not exceeding 5,000 square meters, and startups generally not exceeding 1,000 square meters. The leased area for non-profit institutions generally does not exceed 500 square meters.

IV. Other Adjustments

(I) Improvement of the Definition of Unicorn Companies. "Unicorn Companies" refer to companies that have been established for less than 10 years, have a latest round of financing valuation exceeding USD 1 billion, and are not yet listed. Specific criteria are based on the latest published rankings by institutions such as Hurun, Forbes, and Great Wall.

(II) Addition of the Definition of Qianhai Global Service Providers. "Qianhai Global Service Providers" refers to legal or non-legal entities and their branches that actually operate in the Qianhai Cooperation Zone, belonging to the top 50 globally and top 20 domestically ranked companies in eight major modern service industries and their sub-sectors, including modern finance, trade logistics, information services, technology services, cultural creativity, business services, shipping services, and public services, as well as those listed in the "Fortune Global 500", "China's Top 500 Companies", and "GaWC List".

(III) Addition of Definitions for Mature, Growing, and Startup Institutions within For-Profit Organizations. Within for-profit organizations, mature institutions refer to those with an annual output value (operating revenue) exceeding CNY 1 billion, growing institutions refer to those with an annual output value (operating revenue) between CNY 100 million and CNY 1 billion, and startups refer to those with an annual output value (operating revenue) of not more than CNY 100 million.

V. Main Content

The revised "Measures" consist of six chapters and 31 articles. Among them:

Chapter 1 General Provisions, mainly stipulates the purpose, basis, scope of application, definition, and allocation principles of innovative industrial housing in the "Measures";

Chapter 2 Preparation and Management, mainly stipulates the management entity, preparation methods, and allocation methods of innovative industrial housing;

Chapter 3 Leasing Conditions and Standards, mainly stipulates the basic qualification conditions of applicants, rental discount standards, area allocation standards for innovative industrial housing, and selection criteria for for-profit and non-profit institutions applying for innovative industrial housing;

Chapter 4 Application Materials and Allocation Process, mainly stipulates the content of allocation announcements, application materials, allocation procedures, and lease contract contents;

Chapter 5 Supervision After Allocation, mainly stipulates circumstances under which the lease contract may be terminated, as well as content related to lease expansion and rent reduction;

Chapter 6 Supplementary Provisions, mainly covers definitions, implementation date, and validity period of the measures.

Infographic | Measures for the Management of Innovative Industrial Housing in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone