As you already supposed, furthermore we will talk about residents of IT Park and what reasons may affect their dismissal.

However, at the first, let’s review the responsibilities that IT Park residents bear:

IT Park residents related responsibilities include:

• carrying out solely the activities specified in clause 9 stipulated in the regulatory document;
• providing the Directorate with information on its activities on a quarterly basis;
• to annually conduct an audit of financial and economic activities and send one copy of the audit report to the Directorate;
• to transfer monthly deductions in the amount of one percent from the net revenue to the Directorate on-demand deposit account;
• other obligations established in the Agreement on the conditions of activity of the IT Park Resident with the Directorate.

Failure to fulfill covenant obligations leads to the dismissal from the IT Park resident status.

As of March 20, 2020, 61 legal entities have been excluded from the list of residents. Therefrom, 54 were deprived of the resident status due to the failure to provide an audit opinion and to carry out activities in violation of the requirements of the Regulation for RMB No. 159 of July 15, 2019. Voluntarily refused the status of 7 residents of IT Park due to the liquidation and change of activity.

To date, the total number of IT Park residents has reached 359.

We hope this material has been useful to you. We urge you to carefully read this piece  in order to avoid any questions and follow your duties.