The Beijing-based National Cultural Innovation Zone has delivered a strong set of results in the last five years since its establishment in 2014, according to its report card published at the just concluded 2020 China International Fair of Trade in Services.
From 2015 to 2018, the total tax revenue from all the cultural enterprises in the zone registered 20.76 billion yuan (US$3.04 billion), averaging an annual growth of 10.5%.
In 2019, the combined revenue of 1,111 cultural enterprises above the designated size in the zone amounted to 127.04 billion, accounting for 10% of the revenues of Beijing’s cultural industry. From January to May this year, the 1,093 cultural organizations in the zone reported a total revenue of 35.71 billion yuan.
The zone is home to 52 listed companies and five not-yet-listed unicorn companies (valued at US$1 billion or more), the report says.
According to the Ministry of Culture and Tourism and the Beijing Municipal Government, cultural enterprises in the zone are given preferential policies in content creation, research and development, trade, loan subsidies, and investment, covering each stage of their life cycle.
Over the years, the policies have helped 620 projects in the zone to secure 320 million yuan in financial support and leverage non-governmental funding of over 15 billion yuan.
The zone has also initiated an organization in 2016 to facilitate easier and more affordable financing for cultural enterprises. By now, the organization has channeled over 14.93 billion yuan in loans toward 748 companies and cut one-third of their financing costs.
Beijing’s eastern Chaoyang district, where the zone is based, is home to 68,000 cultural enterprises, including 1,999 above the designated size.