L.K.G.X.G.〔2025〕No.1NoticefromtheTechnology,IndustryandInformationBureauofLiwanDistrict,GuangzhouCityonIssuingtheMeasuresfortheManagementoftheIndustrialInvestmentFundofLiwanDistrict,GuangzhouCityEachOrganizationandSub-districtOfficeoftheDistrict:WiththeapprovaloftheDistrictGovernment,theMeasuresfortheManagementoftheIndustrialInvestmentFundofLiwanDistrict,GuangzhouCity(Revised)isherebyissuedtoyou,andpleasestrictlyfollowandimplementit.Incaseofanyproblemsduringimplementation,pleasereportthemdirectlytotheTechnology,IndustryandInformationBureauoftheDistrict.Technology,IndustryandInformationBureauofLiwanDistrict,GuangzhouCityMay26,2025(Liaison:MoYebo;Tel.020-81515728)MeasuresfortheManagementoftheIndustrialInvestmentFundofLiwanDistrict,GuangzhouCity(Revised)ChapterIGeneralProvisionsArticle1:InordertofullyleveragetheconcentratedsupportandindustrialguidanceroleoftheIndustrialInvestmentFundofLiwanDistrict,GuangzhouCity,standardizethemanagementandoperationoftheIndustrialInvestmentFundofLiwanDistrict,GuangzhouCity(hereinafterreferredtoasthe“IndustrialInvestmentFund”),acceleratetheconstructionofamodernindustrialsystem,andfurtherpromoteinnovation-driventransformation,upgradingandhigh-qualitydevelopmentinLiwanDistrict,theseMeasuresareherebyformulatedbasedonrelevantdocumentssuchastheNoticefromtheMinistryofFinanceonIssuingthe‘InterimMeasuresfortheManagementofGovernmentInvestmentFund’(C.Y.[2015]No.210),andcombinedwiththeactualsituationofLiwanDistrict.TheseMeasuresapplytotheselection,investment,supervision,assessment,exitandothermanagementactivitiesoftheentrustedfundmanagers(hereinafterreferredtoasthe“fundmanager”)oftheIndustrialInvestmentFund.Article2:TheIndustrialInvestmentFundmentionedintheseMeasuresrefertoagovernmentinvestmentfundinitiatedandestablishedbytheDistrictGovernmentwithfiscalfunds,operatedinamarket-orientedmannerwithoutprofitasitspurpose,aimedatleadingsocialcapitaltoprioritizeinvestmentsinindustriesandprojectsofmodernurbanindustryandtechnologicalinnovationfields,supportingthedevelopmentandgrowthofmodernurbanindustrialenterprisesandtechnologicalinnovationenterprises,therebypromotinghigh-qualitydevelopmentinLiwanDistrict.Article3:TheIndustrialInvestmentFundisestablishedintheformofalimitedpartnership,withatargetscaleofRMB1BillionYuanandaninitialscaleofRMB100MillionYuan,andsubsequentadjustmentstothefundscalemaybemadebasedonannualbudgetarrangementsandactualoperationalconditions.Thegovernment’scontributionportionisincludedinthedepartmentalbudgetfundsoftheTechnology,IndustryandInformationBureauoftheDistrict,andwillbeinjectedintoGuangzhouLiwanDevelopmentGroupCo.,Ltd.(hereinafterreferredtoasthe“LiwanDevelopmentGroup”)accordingtoprocedures.LiwanDevelopmentGroupwillactasalimitedpartnertoestablishlimitedpartnership(theIndustrialInvestmentFund)withthefundmanagers;willbeliableforthepartnership’sdebtsuptotheamountofitscapitalcontribution,andwillnotparticipateintheexecutionofpartnershipaffairs.Thefundmanagersserveasthegeneralpartners,responsibleforthedailyoperations,investmentsandexitsoftheIndustrialInvestmentFund,andbearingunlimitedliabilityforpartnership’sdebts.TheIndustrialInvestmentFundmayalsoacceptgratuitousdonationsfromindividuals,enterprisesorsocialinstitutionsandothertypesoffunds.Article4:TheIndustrialInvestmentFundismanagedandoperatedundertheprinciplesof“governmentguidance,marketoperation,scientificdecision-makingandriskprevention”.Thefundmanagersshallformulatecorrespondingfull-processinvestmentmanagementsystemsandestablishanInvestmentDecision-makingCommitteeresponsibleforprojectsinvestment,managementandexitmatters.TheInvestmentDecision-makingCommitteeshallconsistofthreemembers,oneappointedbyLiwanDevelopmentGroup,andothertwoappointedbythefundmanagers.Toensurepolicyorientation,LiwanDevelopmentGroupmayassignonerepresentativetoparticipateindiscussionsatmeetingsoftheInvestmentDecision-makingCommitteeasanobserver,whoshallexerciseavetoincaseswheretheIndustrialInvestmentFundactsunlawfully,violatesregulationsordeviatesfrompolicyorientation,butshallnotparticipateinbusinessoperations,dailymanagementandinvestmentdecisionsoftheIndustrialInvestmentFund.Article5:TheIndustrialInvestmentFundfollowstheprincipleof“whoeverestablishesthefundshallmanageitandactonbehalfofthegovernmentasthecapitalcontributors”.TheTechnology,IndustryandInformationBureauoftheDistrict,asthecompetentauthorityoftheIndustrialInvestmentFund,willactonbehalfofthecapitalcontributors,responsibleforleadingtheestablishmentoftheIndustrialInvestmentFund,determininginvestmentdirectoriesanddirections,andconductingregulationandevaluation,soastoadvancetheimplementationofpolicyobjectivesandeffectsoftheIndustrialInvestmentFund.Moreover,incoordinationwiththeDistrictFinanceBureau,itwillselectanddeterminethefundmanagersandconductfundsupervisionandperformanceevaluations.LiwanDevelopmentGroup,astherepresentativeofthecapitalcontributors,willassistinspecificworkimplementationaccordingtotherequirementsoftheTechnology,IndustryandInformationBureauoftheDistrict.ChapterIIFundManagersArticle6:TheselectionofthefundmanagersshallbeconductedinaccordancewiththerelevantregulationsonthemanagementofgovernmentinvestmentfundsinGuangzhouCity,andshallbedeterminedthroughaselectionprocess.TheTechnology,IndustryandInformationBureauoftheDistrict,togetherwiththeDistrictFinanceBureau,shallenterintoanEntrustedManagementAgreementwiththeselectedfundmanagers.Article7:BasedontheannualfundsarrangementplanoftheIndustrialInvestmentFund,theTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureaushalldeterminetheentrustedfundmanagementamount,andthefundmanagersshallmanagetheIndustrialInvestmentFundinaccordancewithrelevantlawsandregulations,requirementsoftheDistrictGovernment,andthetermsoftheEntrustedManagementAgreement.TheentrustedfundmanagementamountmaybeadjustedbytheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureauaccordingtotheannualbudgetarrangementsandactualoperationalconditions.Thetermofentrustedmanagementisprincipally10years,andmaybeadjustedbytheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureaubasedonactualoperationalconditions.Article8:Thefundmanagersshallmeetthefollowingrequirements:(1)Acompanywithindependentlegalpersonstatus;(2)WitharegisteredcapitalofnolessthanRMB100MillionYuan;(3)Atleastfiveprofessionalswithmorethanthreeyearsofexperienceininvestmentfund-relatedworkandfundqualifications;(4)Asoundinvestmentfundmanagementsystem;(5)Successfulexperienceinparticipatingasacapitalcontributorintheestablishmentandmanagementofinvestmentfunds;(6)Goodfinancialconditionforatleastthepastthreeyears,withnorecordsofmajorpenaltiesfromadministrativeorjudicialauthorities,anddemonstratestrictcompliancewiththeEntrustedManagementAgreementinmanaginggovernment-contributedfunds;(7)Conformingtoanyotherprovisionsstipulatedbynational,provincialandmunicipallawsandregulations.Article9:TheEntrustedManagementAgreementfortheIndustrialInvestmentFundshallclearlydefinetheresponsibilitiesofthefundmanagers,includingbutnotlimitedto:(1)Toestablishasoundinternaldecision-makingandriskcontrolmechanism;(2)Toconductduediligenceonprojects,prepareduediligencereports,performinvestmentanalysis,anddraftinvestmentproposals;(3)Toimplementapprovedinvestmentplansandsigninvestmentagreements;(4)Toconductpost-investmentmanagementandprovidevalue-addedservicestoinvestedenterprises(projects),andsuperviseandguidetheoperationsoftheinvestedenterprises(projects);(5)Todrafttheexitschemeandfacilitateprojectexits;(6)TosubmitregularreportstotheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureauonfundoperations,projectsinvestmentmanagement,andothersignificantmatters;(7)Topromptlyremitdividends,exitproceeds(includingprincipalandreturns)totheStateTreasuryinaccordancewithrelevantregulations;(8)Tocompleteothertasksrelatedtoinvestmentoperations.Article10:ThefundmanagersshallentrustacommercialbankwithfundescrowqualificationstomanagetheIndustrialInvestmentFund,andshallestablishaspecialaccountfortheIndustrialInvestmentFund,ensuringdedicatedaccountmanagementoftheentrustedfunds.TheEntrustedManagementAgreementshallclearlyspecifytheconditionsandrequirementsforselectingtheescrowbank,whichshall,inprinciple,meetthefollowingconditionsandrequirements:(1)Havingfundescrowqualificationsasrecognizedandapprovedbytherelevantnationalauthorities;(2)Maintaininggoodfinancialconditionforatleastthepastthreeyears,withnorecordsofmajorpenaltiesfromadministrativeorjudicialauthorities;(3)Priorityconsiderationwillbegiventobankswithgoodtrackrecordsintechnologyandfinancecollaborationwithgovernmentdepartments.ChapterIIIInvestmentMethodsandInvestmentFieldsArticle11:TheIndustrialInvestmentFundcanoperatethroughdirectinvestmentorestablishingsub-fundsviaequityparticipation,withdirectinvestmentprimarilytakingtheformofequityinvestment.Directinvestmentfundsandtheequity-participatedsub-fundsshallbemanagedinseparateaccounts,wheredirectinvestmentfundsshallgenerallyaccountfornolessthan60%ofthetotalscaleoftheIndustrialInvestmentFund,andtheequity-participatedsub-fundsshallbenolessthan20%ofthetotalscaleoftheIndustrialInvestmentFund,whichmaybeadjustedbasedonactualconditions.Acertainpercentageofthedirectinvestmentfundsmaybeallocatedfordirectinvestmentinstart-upinnovativeenterprises,withthetotalamountinvestedinsuchenterprisesnotexceeding30%ofthescaleofthedirectinvestmentfunds.ThecumulativeinvestmentamountoftheIndustrialInvestmentFundinasinglesub-fundorasingleenterprise(project)shall,inprinciple,notexceed20%ofthesubscribedcapitalscaleoftheIndustrialInvestmentFund.Article12:TheIndustrialInvestmentFundshallinvestinenterpriseswithintheadministrativeregionofLiwanDistrictorinsub-fundswithapredominantinvestmentfocusonkeysupportedindustrialfieldsinLiwanDistrict;andshallinvestinsixstrategicindustryclusters,twofutureindustries,andthreemodernserviceindustrieswithinthe“1283”modernindustrialsystemofLiwanDistrict,mainlytargetinginnovativeenterprisesandplatformenterprisesatearlytomid-developmentstageswithgrowthpotential.Article13:ThefollowingcircumstancescanallbeconsideredasinvestmentsinenterpriseswithintheadministrativeregionofLiwanDistrict:(1)EnterprisesregisteredinLiwanDistrictwithindependentcorporatelegalpersonstatus;(2)EnterprisesoutsideofLiwanDistrictbutestablishingsignificantR&Dcenters,productionbases,salescompanies,orotherbusinessentitieswithsubstantivebusinessactivitiesinLiwanDistrict(includedinthe“FourCategoriesofLarge-scaleEnterprises”statisticaldeclarationinLiwanDistrictwithin2yearsofcompletinginvestment).Article14:Start-upinnovativeenterprisesshallsimultaneouslymeetthefollowingconditions:(1)EngaginginproductionandbusinessactivitieswithintheDistrict,conductingindependentaccounting,andcomplyingwithnationalregulationsonstatistics,taxcollectionandcreditmanagement;(2)NotexceedingRMB50MillionYuaninthetotalassetsandannualsales;(3)Lessthan300employees,ofwhichtheproportionoftechnologicalpersonneldirectlyengagedinR&Dactivitiesshallbemorethan20%ofthetotalemployees.TheannualR&Dexpendituresshallaccountfornolessthan20%ofcostexpenses;(4)Nomorethanfiveyearssinceitsestablishment;(5)ConformingtotheindustrialdevelopmentplanoftheDistrict.Article15:Theamountofdirectinvestmentinstart-upinnovativeenterprisesinasingleenterpriseshall,inprinciple,notexceedRMB5MillionYuan,normorethan40%oftheamountofcurrentfinancinground,andshallnotserveasthesoleinstitutionalinvestorincurrentround;thecumulativeshareholdingratioshall,inprinciple,notexceed30%atmost,andshallnotbecometheactualcontroller;andinprinciple,thedirectinvestmentfundsshallbecontributedasthelastcontributorincurrentroundofprojectfinancing.ChapterIVInvestmentManagementofDirectInvestmentProjectsArticle16:Thefundmanagersshallconductduediligenceoninvestmentprojects.ForprojectsthatmeettheFund’sinvestmentcriteriaandhavefinancingneeds,thefundmanagersshallcarryoutduediligenceinaccordancewithindustry-recognizedethicalstandardsandbusinesspractices,followingtheprinciplesofdiligence,responsibility,integrityandgoodfaith,andshallproducetheDueDiligenceReportsandtheworkingpaperdocumentation.Article17:ProjectsinvestmentdecisionsmadebythefundmanagersshallbesupportedbyresolutionsfromtheInvestmentDecision-makingCommittee.ProjectsthatmeetinvestmentcriteriaandhavecompletedtheduediligenceprocessmaybesubmittedbythefundmanagerstotheInvestmentDecision-makingCommitteeforreviewanddecision-making.TheinvestmentandexitactionsshallbeapprovedbytheInvestmentDecision-makingCommitteebeforeimplementation.Article18:Thefundmanagersshalleffectivelyexecuteapprovedinvestmentprojects.Forprojectsthathavebeenapprovedthroughtheinvestmentdecisionprocess,thefundmanagersshallpromptlysigndocumentssuchastheinvestmentagreementsandproceedwiththeinvestmentpayment.Article19:Thefundmanagersshallberesponsibleforthefollowingdailymanagementofinvestedprojects:(1)Tobespecificallyresponsibleforpost-investmenttrackingandmanagement,includingmonitoringtheoperationalprogressoftheinvestedenterprises(projects),andprovidingvalue-addedservicessuchasstrategicconsulting,tacticalconsulting,capitaloperationrecommendations,resourcematching,teambuildingandfollow-onfinancingassistance,tosupporttheenterprises’rapidgrowthandvalueappreciationwithintheshortestpossibletimeframe;(2)Torecommendcandidatestoserveasdirectors,supervisors,orotherrelevantpositionsintheinvestedenterprises(projects)inaccordancewiththeinvestmentagreements;(3)Toestablishadynamicriskmonitoringmechanismforinvestedenterprises(projects).Intheeventthatmajorriskissuesariseintheinvestedenterprises(projects),thefundmanagersshallpromptlyreporttotheTechnology,IndustryandInformationBureauoftheDistrictandproposecorrespondingcountermeasuresandsolutions.ChapterVOperationManagementofEquity-participatedSub-fundsArticle20:Sub-fundsestablishedbytheIndustrialInvestmentFundviaequityparticipationshallensurethattherelevantagreements(orarticlesofassociation)incorporateallprovisionsstipulatedintheseManagementMeasures.Thesub-fundsshalloperateundermarketmechanisms,andconductinvestments,managementandexitsinaccordancewiththetermsstipulatedinthearticlesofassociationorpartnershipagreements.TheentrustedfundmanagersoftheIndustrialInvestmentFundshallsupervisetheinvestmentandoperationsofthesub-funds,assignrepresentativestojointheInvestmentDecision-makingCommitteeofthesub-funds;andmayexerciseavetoincaseswherethesub-fundsactunlawfully,violatesregulationsordeviatesfrompolicyorientation,butshallnotparticipateinbusinessoperations,dailymanagementandinvestmentdecisionsofthesub-funds.Article21:Basedontheactualdevelopmentofrelevantindustrialfields,theTechnology,IndustryandInformationBureauoftheDistrictwillpublishguidelinesfordeclaration,andorganizethereviewandduediligenceofdeclarationinstitutionsbytheentrustedfundmanagersoftheIndustrialInvestmentFund.TheTechnology,IndustryandInformationBureauoftheDistrictwilldeterminethecooperativeinstitutionsforsub-fundscombiningtheopinionsfromtheentrustedfundmanagersoftheIndustrialInvestmentFundregardingduediligenceoncooperativeinstitutions.Article22:TheIndustrialInvestmentFundwillinvestinsub-fundsbasedonthefollowingmainrequirements:(1)InvestmentScale:ThecontributionratiooftheIndustrialInvestmentFundshall,inprinciple,notexceed20%ofthesub-fund’sscale,andnotexceed40%ofthesub-fund’sscaleforangelorventurecapitalsub-funds,withoutbecomingthelargestcontributorofthesub-fund.Theinvestmentinanysingleprojectbyasub-fundshall,inprinciple,notexceed20%ofitstotalscale.(2)FundDirection:Sub-fundsshallprioritizeinvestmentsinfieldsspecifiedinArticle12oftheseMeasures,andtheinvestmentscaleshallbenolessthan60%ofthepaid-inscaleofthesub-funds.(3)InvestmentRequirements:Thesub-fundswillbeencouragedtoinvestinenterprisesthatcanenhancecorecompetitivenessofthelocalindustriesandcompleteindustrialchains.Thesub-fundsshallensurethatacertainpercentageoffundsshallbedirectedtowardslocalenterprises,supportingtheoptimizationandupgradingoflocalindustriesandtheirdevelopment;andspecificfundingratiosmaybedeterminedthroughnegotiationbetweenthesub-fundsmanagersandtheentrustedfundmanagersoftheIndustrialInvestmentFund.(4)FundOperation:Sub-fundsestablishedviaequityparticipationshallengageinproductionandbusinessactivitieswithinLiwanDistrict,entrustingacommercialbankwithfundescrowqualificationsforfundescrow,implementingdedicatedaccountmanagement.Sub-fundsshall,inprinciple,makeinvestmentsthroughdirectinvestmentprojectsandshallnotinvestinotherfunds.(5)StandardizedOperation:Themanagementteamsofsub-fundsshallstandardizethegovernancestructures,dailymanagementandinvestmentoperationsbasedonrelevantlawsandregulations,establishingsoundandstrictinvestmentdecision-makingprocedures,riskcontrolmechanismsandsoundfinancialmanagementsystems.(6)RegularReporting:Sub-fundsshallsubmitwrittenreportsonitsoperationsandfundsusagetotheentrustedfundmanagersoftheIndustrialInvestmentFundwithin10daysaftertheendofeachquarterandsubmitauditedannualreportswithin4monthsaftertheendofeachyear.TheentrustedfundmanagersoftheIndustrialInvestmentFundmay,asneeded,commissionprofessionalinstitutionstoauditthesub-funds.(7)ManagementFees:Themanagementinstitutionsofsub-fundsmayaccrueacertainpercentageofmanagementfeesfromtheassetsofthesub-fundsasperthesub-fundspartnershipagreementorrelatedarticlesofassociation.TheannualmanagementfeesfortheportioncontributedbytheIndustrialInvestmentFundshallbegenerallynomorethan2.0%oftheactuallypaid-inamounttothesub-funds,withspecificstandardsclearlystatedinsignedpartnershipagreementsorotherdocuments.(8)PrincipleofProfitDistribution:Sub-fundsshallfollowtheprincipleof“principalreturningbeforeprofitsdistribution”.Specificprofitsdistributionmethodsshallbeclearlydefinedinsignedpartnershipagreementsorotherdocuments.Article23:Thescopeandcriteriaforrecognizingthelocalenterprisesinvestmentsbysub-fundsshallbeasfollows:(1)Directinvestmentsbythesub-fundsinenterprisesregisteredinLiwanDistrictshallbecountedaspertheactualinvestmentamount;(2)Forinvestmentsbythesub-fundsinenterprisesoutsidetheDistrict,andsuchenterprisesestablishingsignificantR&Dcenters,productionbases,salescompanies,orotherbusinessentitieswithsubstantivebusinessactivities(therelevantentitiesshallbeincludedinthe“FourCategoriesofLarge-scaleEnterprises”statisticaldeclarationinLiwanDistrict)withinLiwanDistrictduringthesub-funds’investmentsperiod,theactualinvestmentsbythesub-fundsinthebusinessentitiesestablishedinLiwanDistrictmentionedaboveshallbecountedaspertheactualinvestmentamount;(3)Newly-addedinvestmentsinenterprisesinLiwanDistrictbyotherfundsmanagedbythesub-fundsmanagementcompany,orintroducinginvestedenterprisesandprojectstoLiwanDistrictshallbecountedaspertheactualinvestmentamount;(4)OthersituationsrecognizedasinvestmentsinenterprisesinLiwanDistrict.Article24:Themanagementinstitutionsofsub-fundsshallmeettheconditionslistedinArticle8oftheseMeasures.Article25:Forprojectsimplementingmajorstrategicdeploymentsofhigher-levelgovernmentsandtheDistrictGovernment,thedeclarationproceduresforsub-fundsmaybeexemptedaccordingtoregulationsuponapprovalbytheDistrictGovernment,andsuchprojectswillnotbesubjecttotherestrictionssetforthintheseMeasuresregardinginvestmentrequirementsforsub-funds.ChapterVIRiskControlArticle26:Thefundmanagersshallcomplywithrelevantregulations,establishmechanismsforinvestmentsdecision-makingandriskcontrol,strengthenpost-investmentmanagement,andeffectivelypreventrisksthatmayariseduringtheinvestmentandoperationofthefunds.Article27:TheIndustrialInvestmentFundandtheequity-participatedsub-fundsshallnotengageinthefollowingbusinessactivities:(1)Toengageinguarantees,mortgages,entrustedloansandothersimilaractivities,exceptforfinancingguarantees;(2)Toinvestinsecondarymarketstocks,futures,realestate,securitiesinvestmentfunds,corporatebondsratedbelowAAA,trustproducts,wealthmanagementproductsratedaboveR2,insuranceplansandotherfinancialderivatives;(3)Toprovidesponsorshipsordonationstoanythirdparty;(4)Toacceptorindirectlyacceptdeposits,orprovideloansandfundlendingtothirdparties;(5)Tomakeexternalinvestmentsthatinvolveunlimitedjointandseveralliabilities;(6)Toissuetrustproductsorcollectivewealthmanagementproductstoraisefunds;(7)AnyotherbusinessactivitiesprohibitedbylawsandregulationsoftheState.Article28:Asoundrisktolerancemechanismshallbeestablished.Providedthatthefundmanagershaveperformedtheirdutiesdiligentlyandresponsibly,itisallowedfordirectinvestmentsinstart-upinnovativeenterprisesandotherdirectinvestmentprojectstoincurlossesnotexceeding50%and30%oftheirrespectivetotalinvestmentamounts,withindividualdirectinvestmentsinstart-upinnovativeenterprisesallowedtoincurupto100%loss.ChapterVIIIncentiveandConstraintMechanismArticle29:TheTechnology,IndustryandInformationBureauoftheDistrict,incoordinationwiththeDistrictFinanceBureau,willimplementfull-cycleperformancemanagementforthefunds,developperformanceassessmentplans,setreasonableperformancetargets,andconductannuallyperformanceassessmentonthefundmanagers.Managementfeeswillbedeterminedthroughconsultationbasedonmarket-basedprinciplesandwillbeapprovedanddisbursedaccordingtotheresultsofthefundsassessmentandevaluation.Managementfeesduringtheinvestmentsperiodshallbegenerallycalculatedbasedonthepaid-incapitalcontributionoractualinvestmentamount,withtheaccrualstandardsreasonablysetinaccordancewithrelevantprovincialandmunicipalregulations;andspecificcriteriawillbeclearlydefinedintheannualassessmentplans.Managementfeesfortheportionofequity-participatedsub-fundsshallbeaccruedannuallyat1%ofthepaid-inamountinvestedinthesub-funds,ofwhichannualmanagementfeesfortheportionofthefundsusedfordirectinvestmentsshallbedeterminedbasedontheannualassessmentresultsofthefundmanagersbytheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureau,andshallnot,inprinciple,exceedthemanagementfeelevelofsimilargovernmentinvestmentfundsattheprovinciallevelduringthesameperiod.ChapterVIIIExitMechanismArticle30:TheoperatingtermoftheIndustrialInvestmentFundshall,inprinciple,notexceed10years.Whereterminationandfullcapitalrecoveryarerequired,theTechnology,IndustryandInformationBureauoftheDistrictwillnotifythefundmanagersinwritingtoproceedwiththedisposalaccordingtoprocedures.IftheIndustrialInvestmentFundstillholdsinvestmentsprojectsthathavenotbeenexiteduponexpirationoftheterm,afterapprovalbytheDistrictGovernment,theoperatingtermoftheIndustrialInvestmentFundmaybeextendeduntilallprojectshaveexited.Nonewinvestmentsprojectsshallbeaddedduringtheextensionperiod.Article31:Theoperatingtermofsub-fundsshall,inprinciple,notexceedthatoftheIndustrialInvestmentFund.Incaseofsignificantitemschangesduringtheoperatingtermorifanextensionisrequireduponexpiration,suchchangesorextensionsshallbereviewedbythedecision-makingauthorityoftheIndustrialInvestmentFundandapprovedbytheDistrictGovernmentbeforeproceeding.Aftersub-fundsfulfillingtheinvestmentrequirementssetbytheIndustrialInvestmentFund,underconditionswherequalifiedtransfereesareavailable,theIndustrialInvestmentFundmayexitthesub-funds.TheIndustrialInvestmentFundshallgenerallyholdthesameequityandrightsasothercapitalcontributors,andinprinciple,exitatthemarketfairvalue.Article32:Fordirectinvestmentprojects,whenexiting,iftheholdingperiodoftheIndustrialInvestmentFund’sequitystakeinthedirectinvestmentprojectsiswithin3years(inclusive),andtheinvestedenterprisesmeettheperformancetargetsstipulatedintheinvestmentagreements,thetransferpricecanbedeterminedbasedontheoriginalinvestmentprice.Forholdingsbetween3to5years(inclusive),andtheinvestedenterprisesmeettheperformancetargetsstipulatedintheinvestmentagreements,thetransferpricecanbedeterminedbasedonthesumoftheoriginalinvestmentamountandreturnscalculatedbytheone-yearLoanPrimeRate(LPR)ofthebankforthesameperiod.Thecalculationformulais:transferprice=amountcontributedbytheIndustrialInvestmentFund+amountcontributedbytheIndustrialInvestmentFund×one-yearLPRofthebankforthesameperiod×theterm(withinterestcalculatedfromthedayfollowingtheexpirationofthethree-yearinvestmentperiod).Forholdingsmorethan5yearsandtheinvestedenterprisesdonotmeetthetargets,themarket-basedexitmethodsmayapply.Article33:Thefundmanagersshallmanageexitsfromdirectinvestmentprojectsthroughmeanssuchassellingequityonthesecondarymarketafterlisting,agreementtransfers,repurchasesandliquidations.Theentrepreneurialteamsoftheinvestedenterprisesareencouragedandsupportedtorepurchaseequityunderconditionsandpricesagreeduponintheinvestmentagreements.Onceaninvestmentprojectmeetstheconditionsforexit,thefundmanagersshalldevelopanexitschemewhichshallbereviewedandapprovedbytheInvestmentDecision-makingCommitteebeforeimplementingtheprojectexit.Article34:Afterprojectexits,profitsdistributionshallfollowtheprincipleof“principalreturningbeforeprofitsdistribution”.Initially,distributionsshallbemadeaccordingtothepaid-incapitalcontributionratioofallpartners.Anyremainingprofitsshallfirstbedistributedtothegovernmentportionbasedonabenchmarkinterestrate(asspecifiedbythefundmanagersinpartnershipagreementsorsimilardocuments).Excessprofitsbeyondthebenchmarkprofitsshallthenbedistributedbetweenthegovernmentportionandthefundmanagersaccordingtotheratiosasspecifiedinthepartnershipagreements.Government-ownedinvestmentprofitsandinterestsshallbepromptlyandfullyremittedtotheStateTreasuryinaccordancewithrelevantfiscalregulations.Lossesofinvestmentfundsshallbejointlybornebythecontributors,withthegovernmentbearinglimitedliabilitytotheextentofitscontributionamount.Article35:Tobetterleveragetheguidingroleofgovernmentcontribution,thegovernmentmaymoderatelyconcedebenefits,butshallnotpromiseothercontributorsprotectionagainstlossoftheIndustrialInvestmentFund’sinvestmentsprincipal,norpromiseminimumreturns,exceptasotherwiseprovidedbynationalregulations.Article36:Upontermination(includingdissolutionandbankruptcy)oftheIndustrialInvestmentFund,thefundmanagersshallorganizeliquidationinaccordancewithrelevantlawsandregulationsandreporttheliquidationstatustotheTechnology,IndustryandInformationBureauoftheDistrict.ChapterIXSupervision,InspectionandReportingMechanismArticle37:TheIndustrialInvestmentFundshallbesubjecttoperformanceevaluationsbytheDistrictFinanceBureauandsupervisionbytheDistrictAuditBureauregardingfundsoperationstatus.Article38:ThefundmanagersshallsubmitwrittenreportstotheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureauwithin20workingdaysaftercompletinganinvestmentorexitingaproject.Article39:Theentrustedmanagementagreementsshallclearlystipulatetheestablishmentofaregularreportingsystem,thatthefundmanagersshallsubmitwrittenreportstotheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureauonthefundsoperationstatus,assetandliabilitysituation,investmentgainsandlosses,andothersignificantmattersthatcouldaffectinvestors’rights;andshallalsoprepareandsubmitbalancesheets,profitandlossstatements,cashflowstatements,fiscalfunddepositstatements,fundprojecttablesandotherstatementstotheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureau.Quarterlyreportsshallbesubmittedwithin10workingdaysaftertheendofeachquarter,semi-annualreportswithin60daysafterthefirsthalfoftheyearends,andannualreportswithin4monthsaftertheendofeachyear.Article40:InaccordancewiththeGeneralAccountingSystemforFinance(C.K.[2022]No.41)andtheInterimMeasuresfortheManagementofGovernmentInvestmentFunds(C.Y.[2015]No.210),theDistrictFinanceBureaushallreflecttheassetsandrightsandinterestsformedbythegovernmentcontributionintheIndustrialInvestmentFund.Article41:Theentrustedmanagementagreementsshallspecifythatincaseofactivitiesviolatinglawsandregulations,majorpotentiallossesfrominvestmentprojectexits,orothersignificantissuesduringtheoperationoffunds,thefundmanagersshallsubmitawrittenreporttotheTechnology,IndustryandInformationBureauoftheDistrictandtheDistrictFinanceBureauwithin5workingdaysofdiscovery.Article42:Ifnegligenceorotherproblemsandrisksareidentifiedorsuspectedwiththefundmanagers,theTechnology,IndustryandInformationBureauoftheDistrictmayissuewrittenororalrectificationsuggestionstosuchfundmangers.Incaseswhereillegalornegligentbehaviorisconfirmed,thefundmanagershallbearcorrespondinglegalresponsibilitiesforanyresultinglossesinaccordancewiththelaw.Forinvestmentsthathavebeenmadeinaccordancewithlawsandregulationsandhavegonethroughtheprescribedprocedures,ifinvestmentlossesarecausedbyforcemajeure,policychangesorotherfactors,thefundmanagersshallnotbeheldresponsible.Article43:TheassessmentmechanismforfundsmanagementandoperationoftheIndustrialInvestmentFundshallbeestablished.Assessmentsshallfocusonoveralleffectiveness,conductingcomprehensiveperformanceevaluationonthepolicyobjectivesandoutcomesoftheIndustrialInvestmentFund,ratherthanrigidlyevaluationonindividualinvestmentprojectprofitsandlossesorothereconomicbenefitsindicators.Theassessmentsresultsshallbelinkedtothemanagementfeeratethatthefundmanagersmayaccrueforthecurrentyear.ChapterXSupplementaryProvisionsArticle44:WhererelevantprovisionsarenotprovidedforintheseMeasures,theprovisionsoftherelevantsystemsforthemanagementofgovernmentinvestmentfundsoftheGovernmentofGuangzhouCityshallapply.Article45:Thesemeasuresshallcomeintoeffectfromthedateofissuance,withavalidityperiodof5years,andtheMeasuresfortheManagementoftheIndustrialInvestmentFundofLiwanDistrict,GuangzhouCity(L.K.G.X.G.[2023]No.5)shallbesimultaneouslyabolished.。