Hainan Province Science and Technology Department's "Interim Measures for the Recognition and Management of Science and Technology-based Small and Medium-sized Enterprises"

Chapter 1 General Provisions

Article 1 In order to strengthen the leading position of enterprise technological innovation, support and encourage the innovative development of science and technology-based SMEs, refer to the requirements of the "Notice on Issuing the Evaluation Methods for Science and Technology-based SMEs" (Guokefa Zheng [2017] No. 115) issued by the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation and the "Notice on Issuing the Guidelines for the Evaluation of Science and Technology-based SMEs (Trial)" (Guokehuozi [2017] No. 144) issued by the Torch Center of the Ministry of Science and Technology, and combine the spirit of the "Three-Year Action Plan for Hainan Province to Win the Battle of Technological Innovation with Extraordinary Means (2021-2023)", this Measures are formulated.

Article 2 The science and technology-based SMEs in Hainan Province (hereinafter referred to as science and technology-based SMEs) referred to in these Measures refer to small and medium-sized enterprises established in our province, with certain scientific and technological personnel, mastering independent intellectual property rights, proprietary technologies or advanced knowledge, carrying out innovation activities through scientific and technological investment, meeting relevant conditions, and registered with the science and technology management department of our province.

Article 3 Hainan Province's science and technology-based small and medium-sized enterprises are the key cultivation targets of high-tech enterprises. Those that are identified as Hainan Province's science and technology-based small and medium-sized enterprises will be included in the Hainan Province's science and technology-based small and medium-sized enterprise database for management.

Article 4 The provincial science and technology management department is responsible for the registration and supervision and guidance of science and technology-based small and medium-sized enterprises in the province. The science and technology management departments of each city and county are responsible for the acceptance, review, identification, follow-up services, etc. of science and technology-based small and medium-sized enterprises in their respective regions.

Article 5 The identification of Hainan Province's science and technology-based small and medium-sized enterprises follows the working principles of voluntary enterprise, industry orientation, and preferential identification.

Chapter II Identification Conditions and Procedures

Article 6 To be identified as Hainan Province's science and technology-based small and medium-sized enterprises, the following conditions must be met at the same time:

(I) Resident enterprises registered in the administrative area of ​​Hainan Province. The products and services provided by the enterprise do not belong to the prohibited, restricted, and eliminated categories stipulated by the state.

(II) The enterprise has not had any major safety, major quality accidents, serious environmental violations, or serious scientific research dishonesty in the previous year and the current year, and the enterprise has not been included in the list of abnormal operations and the list of serious illegal and dishonest enterprises.

(III) The total number of employees does not exceed 500, the annual sales revenue does not exceed 200 million yuan, and the total assets do not exceed 200 million yuan.
(IV) Not recognized as a high-tech enterprise.
(V) The enterprise's score for comprehensive evaluation based on the evaluation indicators of Hainan Province's science and technology-based small and medium-sized enterprises shall not be less than 60 points, and the score for the scientific and technological personnel indicator shall not be 0 points. For specific evaluation indicators, please refer to the attachment.

Article 7 Enterprises that meet the conditions of Article 6, Items (I) to (IV) and meet one of the following conditions at the same time can be directly confirmed as meeting the conditions of Hainan Province's science and technology-based small and medium-sized enterprises:
(I) The enterprise has won provincial science and technology awards in the past three years;
(II) The enterprise has an internal research and development institution that has been registered or recognized;
(III) The enterprise has taken the lead in undertaking provincial fiscal science and technology plan projects in the past three years.

Article 8 Specific procedures for the recognition of Hainan Province's science and technology-based small and medium-sized enterprises
The recognition of Hainan Province's science and technology-based small and medium-sized enterprises is combined with the evaluation of national science and technology-based small and medium-sized enterprises. If all the recognition conditions in Article 6 of these Measures are met and the application for recognition of Hainan Province's science and technology-based small and medium-sized enterprises is applied for the national science and technology-based small and medium-sized enterprise evaluation in the same year.
(I) Notice. The provincial science and technology management department issues a notice every year to clarify the application materials, time requirements, etc.
(II) Application. Enterprises shall evaluate whether they meet the conditions of Hainan Province's science and technology-based SMEs in accordance with these measures. If they are found to meet the conditions for recognition, they shall register their basic information on the Ministry of Science and Technology's government service platform (website: fuwu.most.gov.cn), choose to apply for national science and technology-based SMEs' self-evaluation, fill in the "Science and Technology-based SMEs Information Form" online and upload relevant supporting documents, submit them to the science and technology management departments of various cities and counties, and submit the following electronic materials (CD): including the list of enterprise employees (note whether they are scientific and technological personnel), employee social insurance payment certificates, college degree certificates or above of scientific and technological personnel or R&D capability certificates, the "Balance Sheet", "Profit and Loss Statement" and "Annual Enterprise Income Tax Return of the People's Republic of China (Class A A107012)" at the end of the previous year and other supporting materials. Enterprises are responsible for the authenticity of the application materials.
(III) Recognition. The municipal and county science and technology management departments shall conduct a comprehensive review of the information and materials submitted by the applicant enterprises, and may organize experts to conduct reviews when necessary. After approval by the municipal and county science and technology management departments, the list of recognized science and technology-based SMEs shall be determined and submitted to the Provincial Department of Science and Technology for filing together with the supporting materials submitted by the enterprises. At the same time, the enterprise information is reviewed on the government service platform of the Ministry of Science and Technology, and the system is submitted to the Provincial Department of Science and Technology.
(IV) Public announcement. The list of enterprises that have been identified and reported will be announced by the Provincial Department of Science and Technology for 10 working days. If there is no objection, an announcement will be issued and filed; if it is found that it does not meet the requirements, it will be returned to the science and technology management departments of each city and county.
(V) The qualification of science and technology-based SMEs will take effect from the date of filing, and the validity period is three years. The enterprise should reapply for certification within 3 months before the expiration of the validity period.

Chapter III Support Measures

Article 9 In accordance with the "Three-Year Action Plan for Hainan Province to Win the Battle of Technological Innovation with Extraordinary Means (2021-2023)", for those included in the Hainan Province Science and Technology-based SME Database, the city and county shall formulate the management measures for the funding, and encourage the city and county finance to give each enterprise in the database a reward of no more than 50,000 yuan based on the investment in scientific and technological research and development.

Article 10 In the organization and implementation of provincial science and technology plan projects such as the provincial major science and technology plan and the provincial key R&D plan, support provincial science and technology-based SMEs to widely participate in projects led by high-tech enterprises, universities, research institutes, etc., and form innovation consortiums to "unveil and tackle key problems".

Article 11 Support qualified science and technology-based SMEs to establish internal R&D platforms, introduce and cultivate backbone innovation teams, and apply for recognition as high-tech enterprises.

Chapter 4 Supervision and Management

Article 12 For the recognized science and technology-based SMEs in Hainan Province, if they have the following behaviors, the municipal and county science and technology management departments shall revoke their science and technology-based SME qualifications, recover the allocated reward funds, report to the provincial science and technology management department for filing and make an announcement.

(1) There are serious fraudulent behaviors in the application process;

(2) There are serious scientific research dishonesty behaviors;

(3) There are major safety and quality accidents or serious environmental violations;

(4) They are included in the list of abnormal operations and the list of serious illegal and dishonest enterprises.

Article 13 Provincial science and technology-based SMEs shall fill in statistical survey forms regularly as required. If an enterprise changes its name or undergoes major changes related to the recognition conditions (such as division, merger, reorganization, and changes in business operations), it should report to the science and technology management department of the city or county where it is located within 3 months. If the city or county science and technology management department reviews and meets the recognition conditions, it shall be reported to the provincial science and technology management department for filing, and its qualification as a science and technology-based SME shall remain unchanged; if it does not meet the recognition conditions, it shall be reported to the provincial science and technology management department for filing and announcement, and the provincial science and technology-based SME qualification shall be revoked from the year of name change or condition change.

Article 14 All kinds of institutions and personnel involved in the recognition of science and technology-based SMEs shall have the obligations of integrity, compliance, and confidentiality for the relevant work they undertake. During the recognition process, if work errors occur, according to the "Hainan Free Trade Port Public Officials Tolerance and Correction Measures (Trial)", if it is determined to meet the tolerance conditions, it shall not be given or exempted, or be given a lighter or reduced punishment in accordance with regulations, disciplines, and laws. Those who violate relevant requirements and disciplines shall be given corresponding treatment.

Chapter V Supplementary Provisions

Article 15 This Measures shall be interpreted by the science and technology management department of Hainan Province.

Article 16 This Measures shall take effect on October 22, 2021 and shall be valid for three years.

Appendix

Evaluation Indicators for Science and Technology-based Small and Medium-sized Enterprises in Hainan Province

Evaluation Indicators for Science and Technology-based Small and Medium-sized Enterprises in Hainan Province specifically include three categories: scientific and technological personnel, R&D investment, and scientific and technological achievements, with a total score of 100 points.
1. Scientific and technological personnel indicator (full score 20 points). Evaluation is divided into grades based on the proportion of scientific and technological personnel to the total number of employees in the enterprise.
A. 30% (inclusive) or more (20 points)
B. 25% (inclusive)-30% (16 points)
C. 20% (inclusive)-25% (12 points)
D. 15% (inclusive)-20% (8 points)
E. 10% (inclusive)-15% (4 points)
F. Below 10% (0 points)
2. R&D investment indicator (full score 50 points). Enterprises choose one indicator from (1) and (2) for scoring.
(1) Evaluation is divided into grades based on the proportion of the total R&D expenses of the enterprise to the total sales revenue.
A. 6% (inclusive) or more (50 points)
B. 5% (inclusive)-6% (40 points)
C. 4% (inclusive)-5% (30 points)
D. 3% (inclusive)-4% (20 points)
E. 2% (inclusive)-3% (10 points)
F. Below 2% (0 points)
(2) Evaluate according to the proportion of the total R&D expenses of the enterprise to the total cost expenditure.
A. 30% (inclusive) or more (50 points)
B. 25% (inclusive)-30% (40 points)
C. 20% (inclusive)-25% (30 points)
D. 15% (inclusive)-20% (20 points)
E. 10% (inclusive)-15% (10 points)
F. Below 10% (0 points)
3. Scientific and technological achievement indicators (full score 30 points). Evaluation is divided into grades according to the types and number of intellectual property rights related to the main products (or services) owned by the enterprise within the validity period (the intellectual property rights should not be controversial or disputed).
A. 1 or more Class I intellectual property rights (30 points)
B. 4 or more Class II intellectual property rights (24 points)
C. 3 Class II intellectual property rights (18 points)
D. 2 Class II intellectual property rights (12 points)
E. 1 Class II intellectual property right (6 points)
F. No intellectual property rights (0 points)
Explanation of evaluation indicators for science and technology-based SMEs:
(i) Enterprise scientific and technological personnel refer to those who are directly engaged in R&D and related technological innovation activities of the enterprise, as well as those who are specialized in the management of the above activities and provide direct services, including in-service, part-time and temporary employees. Part-time and temporary employees must work in the enterprise for more than 6 months in total throughout the year.
(ii) The total number of employees of the enterprise includes in-service, part-time and temporary employees of the enterprise. In-service personnel are identified by whether the enterprise has signed a labor contract or paid social insurance premiums. Part-time and temporary employees must work in the enterprise for more than 6 months in total throughout the year.
(III) Enterprise R&D expenses refer to the relevant expenses incurred in the enterprise R&D activities, which are specifically aggregated in accordance with the relevant provisions of the Notice on Improving the Policy of Tax-free Additional Deductions for Research and Development Expenses (Caishui [2015] No. 119) issued by the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology.
(IV) Enterprise sales revenue refers to the sum of revenue from the main business and other businesses.
(V) Intellectual property rights are evaluated by classification, among which: invention patents, new plant varieties, national-level crop varieties, national new drugs, national-level protected varieties of traditional Chinese medicine, and exclusive rights for integrated circuit layout designs are evaluated as Class I; utility model patents, design patents, and software copyrights are evaluated as Class II.
(VI) Enterprises leading the formulation of international standards, national standards or industry standards means that enterprises rank among the top five drafting units in relevant documents of the National Standardization Committee, the Ministry of Industry and Information Technology, the International Organization for Standardization and other competent departments.
(VII) R&D institutions at or above the provincial and ministerial levels include national (provincial, ministerial) key laboratories, national (provincial, ministerial) engineering technology research centers, national (provincial, ministerial) engineering laboratories, national (provincial, ministerial) engineering research centers, national (provincial, ministerial) enterprise technology centers, national (provincial, ministerial) international joint research centers, etc.