On April 23, under the detailed arrangement of our General Manager,Mr.Qian Zhiyuan and positive teamwork of every department, Yantai Wangyuan Hydraulic Co.,Ltd get the Certificates of Advanced Technology Enterprises,it’s a sign that Wangyuan enters into the advanced technology industry of national-level.
The certificate of high and new technology enterprise shall be issued with the authorization of the Ministry of Science and Technology (“MST”), the Ministry of Finance (“MOF”), and the State Administration of Taxation (“SAT”) .
To qualify as a high- and new-technology enterprise, an enterprise must meet all of the following requirements.
1. The enterprise must be a resident enterprise that has been registered in China (excluding Hong Kong, Macau, and Taiwan) for at least one year.
2. The enterprise must own the proprietary intellectual property right of core technology in connection with the main products (services) of the enterprise. The enterprise may obtain the IP right within last three years through self-R&D activities, purchase, donation, merger, etc. The enterprise may also satisfy this requirement by acquiring an exclusive right to use the IP right for a period of at least five years. It is not clear under the Measures whether the right can be exclusive to China or must encompass a broader area.
3. The products or services of the enterprise must be within the scope of the Catalogue. The Catalogue lists more than 200 categories of technologies, products, and services in eight large technological areas. Those areas are:
- Electronic information technology
- Biological and medical technology
- Aviation and space technology
- New materials technology
- High-tech services
- New energy and energy conservation technology
- Resources and environmental technology
- Transformation of traditional sectors through new high-tech
4. At least 30 percent of the enterprise’s employees should be college graduates (three-year program or above); among the qualified staff, at least 10 percent of the total number of employees should be engaged in R&D activities.
5. R&D expenditures for the last three accounting years should reach a certain percentage of the enterprise’s total revenue.
|
Total revenue in preceding year |
R&D expenses at least as % of revenue |
|
below RMB 50 million |
6% |
|
RMB 50 million – 200 million |
4% |
|
above RMB 200 million |
3% |
At least 60 percent of the minimum R&D expenditure must be incurred in China.
6. Current-year income from high- and new-technology products (services) is at least 60 percent of the total revenue of the enterprise.
7. The enterprise should meet the requirements respecting the rating of R&D management, the capacity to convert R&D outcomes, the number of IP rights, and the growth of sales and total assets as provided in Administrative Working Guidelines of Assessment of High- and New-Technology Enterprises. Such working guidelines will be issued separately.
