Interim Measures for Administration of the Accreditation of Science and Technology SMEs in Hainan Province
Chapter I General Provisions
Article 1 The Measures are formulated to the position of enterprises as the innovative subjects and support and encourage the innovation and development of science and technology SMEs according to the Notices of the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on the Issuance of Measures for the Assessment of Science and Technology SMEs (Guo Ke Fa Zheng  No. 115), the Notices of the Torch High Technology Industry Development Center, Ministry of Science and Technology on the Issuance of Guidelines for the Assessment of Science and Technology SMEs (for Trial Implementation) (Guo Ke Huo Zi  No. 144) and the spirit of the Three-Year Action Plan for Winning the Science and Technology Innovation Battle by Extraordinary Means in Hainan Province (2021-2023).
Article 2 The term “science and technology SMEs in Hainan Province” (hereinafter referred to as “science and technology SMEs”) refers to SMEs set up in Hainan, which have a certain number of scientific and technical personnel, master independent IP rights (IPRs), know-hows or advanced knowledge, carry out innovative activities through investment in science and technology, meet relevant conditions, and are filed with the science and technology authorities of Hainan Province.
Article 3 Intensive efforts shall be made to incubate science and technology SMEs into high-tech enterprises. Enterprises identified as science and technology SMEs shall be included in the Library of Science and Technology SMEs of Hainan Province for administration purpose.
Article 4 Provincial science and technology authorities shall be responsible for the filing, supervision and guidance of science and technology SMEs throughout Hainan Province. Science and technology authorities at municipal and county levels shall be responsible for the acceptance, audit, accreditation, follow-up service and other work related to local science and technology SMEs.
Article 5 The accreditation of science and technology SMEs in Hainan Province shall be conducted in the principles of being voluntary, industry-oriented and merit-based.
Chapter II Conditions and Procedures for Accreditation
Article 6 An enterprise may be accredited as a science and technology SME if: (1) it is a resident enterprise registered in the administrative area of Hainan Province and its products and services are not listed in the prohibited, limited or eliminated category; (2) no major safety or quality accidents, serious environmental violations or serious violations by scientific researchers have occurred, and the enterprise has never been included in any list of enterprises with abnormal operations and serious illegal and dishonest acts in the year of making accreditation application and in the previous year thereof; (3) the total number of employees does not exceed 500, annual sales revenue does not exceed RMB 200 million, and total assets do not exceed RMB 200 million; (4) the enterprise has been accredited as a high-tech enterprise; (5) the enterprise shall obtain no less than 60 scores for comprehensive evaluation and no less than 0 score for scientific and technical personnel when it is comprehensively evaluated based on relevant indicators for the evaluation of science and technology SMEs in Hainan Province. See appendixes for evaluation indicators.
Article 7 An enterprise that meets conditions as stated in Paragraphs (I) - (IV) under Article 6 can be directly confirmed to meet requirements on science and technology SMEs in Hainan Province if it meets one of the following conditions synchronously: (I) the enterprise has received a provincial award for science and technology in the past three years; (II) the enterprise has a filed or recognized internal R&D institute; (III) the enterprise has taken the lead in undertaking provincial financial science and technology plan projects in the past three years.
Article 8 Specific procedures for the accreditation of science and technology SMEs in Hainan Province
The accreditation of science and technology SMEs in Hainan Province shall be combined with the evaluation of national science and technology SMEs. Enterprises that meet all accreditation conditions hereunder and apply to be accredited as a science and technology SME in Hainan Province shall also apply to be accredited as a national science and technology SME in the same year.
(I) Notice. Provincial science and technology authorities shall issue a notice every year to clarify the requirements on application materials, deadline, etc.
(II) Application. Enterprises can independently evaluate whether they meet the requirements on science and technology SMEs in Hainan Province. If they believe that they meet the accreditation conditions, they shall register their basic information on the government affairs service platform of the Ministry of Science and Technology (website: fuwu.most.gov.cn), choose to apply for the independent evaluation of national science and technology SMEs, fill in the Information Form for Science and Technology SMEs online and upload relevant supporting documents, and submit the following electronic materials (CD-ROM) to the science and technology authorities at municipal or county level: the list of enterprise employees (note whether they are scientific and technical personnel), proof of social insurance contributions, proof of education level (college degree or above) or R&D capability of scientific and technical personnel, the Balance Sheet, Profit and Loss Statement, and the Annual Enterprise Income Tax Return of the People’s Republic of China (Type A A107012) at the end of the previous year, and other supporting documents. Enterprises shall be responsible for the authenticity of the application materials.
(III) Accreditation. Science and technology authorities at municipal and county levels shall conduct a comprehensive review of the information and materials submitted by applicants, and if necessary, organize experts to evaluate. After review and approval, the science and technology authorities at municipal and county levels shall determine the lists of science and technology SMEs and submit them, together with the supporting materials, to the Department of Science and Technology for filing purpose. The review results of enterprise information shall be synchronized on the government affairs service platform of the Ministry of Science and Technology and submitted by the system to the Department of Science and Technology.
(IV) Public disclosure. The lists of enterprises that apply to be accredited shall be disclosed by the Department of Science and Technology for 10 working days. If there is no objection, the lists will be announced and filed. If any enterprise is found non-compliant, the relevant lists shall be returned to the science and technology authorities at municipal or county level.
(V) The qualification of science and technology SMEs shall be effective from the date of filing and be valid for three years. Enterprises shall reapply for accreditation within three months before the expiration of the validity period.
Chapter III Supporting Measures
Article 9 According to the Three-Year Action Plan for Winning the Science and Technology Innovation Battle by Extraordinary Means in Hainan Province (2021-2023), each city and country in Hainan shall develop measures for the administration of the Supporting Funds to encourage local departments of finance to grant up to RMB 50,000 to each enterprise included in the library of science and technology SMEs in Hainan Province based on the investments in science and technology by such enterprises.
Article 10 In the organization and implementation of provincial major science and technology programs, provincial key R&D programs and other provincial science and technology programs, science and technology SMEs shall be supported to participate extensively in projects led by high-tech enterprises, higher education institutions, research institutes, to form an innovative consortium to “tackle key technological problems”.
Article 11 Qualified science and technology SMEs shall be encouraged to establish internal R&D platforms, introduce and incubate backbone innovation teams, and apply to be accredited as a high-tech enterprise.
Chapter IV Supervision and Management
Article 12 Where any science and technology SME accredited as high-tech enterprises commits any one of the following acts, the science and technology authorities at municipal and county levels level shall disqualify such SME, recover rewards granted, and report to the provincial science and technology authorities for filing purpose and make a public disclosure: (1) the enterprise has serious falsification in the application process; (2) the enterprise commits serious violations in scientific researches; (3) the enterprise causes major safety or quality accident or commits serious environmental violations; (4) the enterprise is included in any list of enterprises with abnormal operations and serious illegal and dishonest acts.
Article 13 Provincial science and technology SMEs shall fill in statistical questionnaires on a regular basis as required. Name change or significant changes related to the accreditation conditions (such as split, merger, reorganization, and changes in businesses) shall be reported to the science and technology authorities at municipal and county levels where the enterprises operate within 3 months. If the enterprises are determined to meet accreditation conditions after review, the competent science and technology authorities at municipal and county levels shall report such changes to the provincial science and technology authorities for filing purpose, and the qualification of such enterprises as a science and technology SME remains unchanged. Or otherwise, the changes will be reported to the provincial science and technology authorities for filing and public disclosure, and the qualification of such enterprises as a provincial science and technology SME shall be canceled from the year of the name change or condition change.
Article 14 Organizations or individuals involved in the accreditation of science and technology SMEs shall perform the obligations of integrity, compliance and confidentiality for the work undertaken. If the organizations or individuals make any error or mistake during the accreditation and such error or mistake is determined to be tolerable according to the Measures on Fault Toleration and Error Correction among Public Servants in Hainan Free Trade Port (for Trial Implementation), such organizations or individuals shall be not punished or exempted from punishment or subject to light or mitigated punishment according to applicable laws, regulations, rules and disciplines. Organizations or individuals committing any violations shall be punished according to applicable regulations and disciplines.
Chapter V Supplementary Provisions
Article 15 These Measures shall be interpreted by the science and technology authorities of Hainan Province.
Article 16 These Measures shall remain in force for 3 years from October 22, 2021.
Appendix: Indicators for the Evaluation of Science and Technology SMEs in Hainan Province
Indicators for the evaluation of science and technology SMEs in Hainan Province include scientific and technical personnel, R&D investment, and scientific and technological achievements, with the full score being 100.
1. Scientific and technical personnel (full score: 20): score by grade according to the ratio of the number of scientific and technical personnel to the total number of employees of enterprises.
A. 30% (inclusive) or above (20 scores)
B. 25% (inclusive) - 30% (16 scores)
C. 20% (inclusive) - 25% (12 scores)
D. 15% (inclusive) - 20% (8 scores)
E. 10% (inclusive) - 15% (4 scores)
F. Less than 10% (0 score)
R&D investment (full score: 50): enterprises can choose one of the two indicators (1) and (2) for scoring.
(1) Score by grade according to the ratio of total R&D expenditures to the total sales revenue of enterprises.
A. 6% (inclusive) or above (50 scores)
B. 5% (inclusive) - 6% (40 scores)
C. 4% (inclusive) - 5% (30 scores)
D. 3% (inclusive) - 4% (20 scores)
E. 2% (inclusive) - 3% (10 scores)
F. Less than 2% (0 score)
(2) Score by grade according to the ratio of total R&D expenditures to the total costs and expenses of enterprises.
A. 30% (inclusive) or above (50 scores)
B. 25% (inclusive) - 30% (40 scores)
C. 20% (inclusive) - 25% (30 scores)
D. 15% (inclusive) - 20% (20 scores)
E. 10% (inclusive) - 15% (10 scores)
F. Less than 10% (0 score)
3. Scientific and technological achievements (full score: 30): score by grade according to the type and number of valid IPRs owned by enterprises (which shall be free of disputes or controversies) related to main products (services).
A. 1 or more Class I IPRs (30 scores)
B. 4 or more Class II IPRs (24 scores)
C. 3 Class II IPRs (18 scores)
D. 2 Class II IPRs (12 scores)
E. 1 Class II IPR (6 scores)
F. No IPR (0 score)
Notes on indicators for the evaluation of science and technology SMEs:
(I) The scientific and technical personnel of an enterprise refer to personnel directly engaged in R&D and related technological innovation activities, as well as personnel specialized in the management of the above activities and the provision of direct services, including full-time, part-time and temporary employees. The part-time and temporary employees must work in the enterprise for more than 6 months throughout the year.
(II) The total number of employees of an enterprise includes the number of full-time, part-time and temporary employees of the enterprise. The full-time employees can be determined by whether the enterprise has signed a labor contract with them or paid social insurance premiums for them. The part-time and temporary employees must work in the enterprise for more than 6 months throughout the year.
（三）企业研发费用是指企业研发活动中发生的相关费用，具体按照财政部 国家税务总局 科技部《关于完善研究开发费用税前加计扣除政策的通知》(财税〔2015〕119号)有关规定进行归集。
(III) The R&D expenditures of an enterprise refer to relevant expenses incurred by the R&D activities of the enterprise. The expenditures shall be attributed according to the Notice of the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology on Improving the Policies for the Weighted Pre-tax Deduction of R&D Expenditures (Cai Shui  No. 119).
(IV) The sales revenue of an enterprise is the sum of the revenues from its main businesses and other businesses.
(V) IPRs shall be evaluated by categories, where patents for inventions, new varieties of plants, national crop varieties, national new drugs, national first-class protected varieties of traditional Chinese medicine, and exclusive rights to the layout design of integrated circuits shall be evaluated as Class I IPRs. Patents for utility models, design patents and software copyrights shall be evaluated as Class II IPRs.
(VI) Enterprises leading the development of international standards, national standards or industry standards refer to enterprises which are top five drafters as stated in relevant documents of the Standardization Administration of China, the Ministry of Industry and Information Technology, the International Organization for Standardization and other competent authorities.
(VII) Provincial and ministerial R&D institutions include national (provincial and ministerial) key laboratories, national (provincial and ministerial) engineering technology R&D centers, national (provincial and ministerial) engineering laboratories, national (provincial and ministerial) engineering research centers, national (provincial and ministerial) enterprise technology centers, national (provincial and ministerial) or international joint research centers.