(Yicai Global) Nov. 27 -- China is choosing its elite league of small and medium-sized tech companies that it will foster in the next couple of years to pave its way to become a world-class manufacturing power.
By 2020, the Ministry of Industry and Information Technology plans to cultivate about 600 "little giant" firms that master in key technologies and possess great prospects in innovation, the ministry said in a statement yesterday. This year, the number of such selected firms will be around 100, it added.
These firms should function in the sectors specified by the 'Made in China 2025' state-backed industrial policy that puts 10 fields such as robotics, aerospace, new energy vehicles and medicine on top of the agenda that aims to make China emerge as a leading high-tech power.
The requirements include more specified rules, such as that the candidates must have had an operating income between CNY100 million (USD14.4 million) and CNY400 million last year. The average growth rate of revenue or net profit from the company's main business should have reached over 10 percent in the past two years. The debt-to-asset ratio cannot be more than 70 percent.
These companies should have a track record of dedicating themselves to the same field for at least three years. The main businesses must contribute over 70 percent of the total operating revenues. The firms should also have a top three ranking in the specific market segment in their home provinces.
The enterprises must have invested heavily in research and development in the past two years. Scientific and tech personnel should make up 15 percent of the workforce. The firms need to have at least five patents related to their main products or 15 such copyright licenses for their designs.
Firms that have violated regulations regarding environmental pollution, taxes, or others, need not apply.
Editor: Emmi Laine