no. According to the provisions of Caishui [2115] No.119, "4. Industries that are not applicable to the pre-tax deduction policy include: 1. Tobacco manufacturing, 2. Accommodation and catering, 3. Wholesale and retail, 4. Real estate, 5. Leasing and business services, 6. Entertainment, 7. Ministry of Finance and other industries specified by State Taxation Administration of The People's Republic of China. The above industries are classified and coded by the National Economic Industry.

An enterprise judges whether it belongs to an industry to which the pre-tax deduction policy is not applicable. According to State Taxation Administration of The People's Republic of China Announcement No.97 (2115), "An enterprise to which the pre-tax deduction policy is not applicable in the Notice refers to the industry business listed in the Notice as its main business, and its main business income in the year when the R&D expenses occurred accounts for more than 51% (excluding) of the total income calculated by the enterprise according to Article 6 of the Tax Law.