Latest in 2022: BUD Application Assistance

Update December 2022: BUD Enterprise Support Program

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How to Apply for BUD?

Companies applying for BUD should fill out the application form online and provide the following documents for the applying company:

(i) A copy of the business registration certificate.
(ii) Copies of documents demonstrating the personal information of the responsible person/shareholder holding 30% or more ownership, such as Business Registration Department Form 1(a) or Annual Return Form (Form AR1) from the Companies Registry, etc.
(iii) Copies of documents proving that the applying company has substantial business operations in Hong Kong (please refer to Annex II for examples of proof).
(iv) Copies of documents proving the applying company’s annual turnover for the previous year (applying companies established in the current year are not required to provide this).
(v) Copies of documents proving the direct investment relationship between the applying company and the market business unit responsible for project execution in Free Trade Agreement markets, such as valid business licenses, valid contract for processing materials signed by both parties, etc. (only applicable to applications involving project execution by market units in Free Trade Agreement markets).
(vi) Brochures/print materials introducing the business/products/services of the applying company.

Is there a deadline for applying for the “BUD Special Fund”?

Currently, the “BUD Special Fund” accepts applications throughout the year, but the application deadline is subject to the availability of funds.

Can a company apply for funding for another project before completing one?

Companies can consider applying for funding for another project before completing one, as long as they do not exceed the approved number of projects (40) and the cumulative funding limit (HKD 6 million). However, they must provide information about the previously approved projects on the application form, including the project name, funding amount, and duration.

Applying companies should be aware that the progress or performance of previously approved projects may affect the approval of new project applications. The Program Management Committee will also consider the company’s capacity to manage multiple projects simultaneously, as well as the relevance and effectiveness of the projects.

What eligibility criteria do applying companies need to meet?

Companies applying for funding from the “BUD Special Fund” must meet the following eligibility criteria:

(a) Registered under the Business Registration Ordinance (Chapter 310) in Hong Kong,
(b) Non-listed companies, and
(c) Have substantial business operations within Hong Kong.

Substantial business operations refer to genuine business activities and transactions, including factors such as whether the company employs staff in Hong Kong, pays taxes, or engages in product/service transactions. Please note that companies with no substantial business or shell companies will not be considered to have substantial business operations in Hong Kong. When submitting the application form, provide the following documents as evidence:

(a) Company employee records,
(b) Company financial report records, and
(c) Records of business transactions and operations of the company.

(For detailed information on submitting documents related to substantial business operations, please refer to the “Application Guidelines.”)

Can a Hong Kong company under the umbrella of a Hong Kong or overseas listed company (non-listed) apply for funding?

Companies that are subsidiaries of listed companies, whether in Hong Kong or overseas, are considered separate legal entities from their parent companies. Therefore, as long as the subsidiary company in Hong Kong and overseas is a non-listed company, registered in Hong Kong under the Business Registration Ordinance (Chapter 310), and has substantial business operations within Hong Kong, it qualifies for applying for funding. The program is not limited to small and medium-sized enterprises (SMEs); any non-listed company registered in Hong Kong under the Business Registration Ordinance and with substantial business operations in Hong Kong is eligible to apply.

If a company is a registered listed company in mainland China, and its subsidiary is a non-listed company registered in Hong Kong, and the subsidiary in Hong Kong applies for funding under the program, but the project is implemented by the mainland China-based company (a listed company), is this feasible?

If the funded project is executed and benefits a company listed in mainland China, the funding application will not be approved.

Can eligible companies apply for funding for projects that are entirely implemented in Hong Kong?

If the project is entirely implemented in Hong Kong, it must be aimed at assisting the company in expanding and developing its business in mainland China in order to be eligible for funding.

In the project application form submitted, the company must demonstrate how the project will enhance its competitiveness in mainland China and/or promote the development of its business in mainland China through the relevant project.

Do funded projects require supervision? What are the supervisory measures?

To ensure the effective implementation of funded projects, approved projects are required to comply with the requirements stipulated by the “BUD Special Fund” during the implementation process. These requirements include:

The applying company needs to sign a designated contract with the implementing organization.

The company must provide its bank account for project fund management, and the financial transactions related to the project must undergo third-party financial auditing.

The company must submit midterm/final reports and audited accounts based on the project duration.

The implementing organization may also arrange on-site inspections for individual projects (approximately one day) to assess the progress and effectiveness of the project.

(Detailed requirements for submitting reports and audited accounts are provided in the “Application Guidelines.”)

6 Things You Need to Know Before Hiring a Government Funding Consultant for Your Technology Voucher Application

BUD Special Fund

The government currently offers various subsidy programs, such as Technology Voucher Program, BUD (Business Development Fund), and SME Market Promotion Fund, to assist small and medium-sized enterprises in promoting their businesses. However, the conditions and subsidy amounts for each program are different. You can choose which subsidy to apply for based on your current business situation and needs. Let us tell you the “Top 6 Things You Need to Know Before Seeking Government Subsidy Consultation.”

1. Understand the subsidies you can apply for

The government currently offers multiple subsidy programs to assist businesses in promoting various activities, especially small and medium-sized enterprises. However, the conditions and subsidy amounts vary for each program. You can choose which subsidy to apply for based on your current business situation and needs.

Here are some popular funding and subsidy programs in Hong Kong:

Government funding programsFunding programs and their contentThe highest cumulative funding amountFunding percentage
TVP – Technology Voucher ProgrammeThe program was launched in November 2016, providing funding to businesses for the purchase of technology services and solutions. Its goal is to assist Hong Kong businesses or organizations in enhancing overall productivity, improving service quality, and undergoing business transformation.HKD$ 600,00075%
BUD Special Fund BUDThe BUD program includes Mainland China initiatives and Free Trade Agreement initiatives. Through funding, it supports projects aimed at developing brands, upgrading and transforming, or expanding into the Mainland China and Free Trade Agreement economies. This is to enhance the competitiveness of Hong Kong’s small and medium-sized enterprises in the Mainland, ASEAN, and Free Trade Agreement markets.HKD$ 6,000,00050%
Retail Industry Human Resource Demand Management Technology Application Support Program (Export Markketing Fund)The “SME Market Promotion Fund” established by the Trade and Industry Department is specifically designed to help small and medium-sized enterprises expand their overseas markets (outside of Hong Kong) and promote their products in other regions. Supported projects include websites, online stores, online advertising, exhibitions, and more.HKD$ 800,00050%
Retail Industry Human Resource Demand Management Technology Application Support Program (ReTAAS)The program is specifically designed for the Hong Kong retail industry, aiming to enhance productivity in the retail sector by subsidizing the application of technology for managing workforce demand. Commonly supported projects include electronic payment systems, the establishment of online stores, POS systems, and more.HKD$ 50,00050%

 

2. The nature of the company’s business

In the Hong Kong market, there are several consulting companies that assist businesses in applying for government funding. Choosing a high-quality and professional consulting company can expedite the application process and ensure that you don’t take the wrong path. Consulting companies can generally be categorized into four types:：

  • Consulting Companies Specializing in Government Funding Applications: These companies primarily assist clients in applying for various types of government funding. Given the diversity of government funding programs, they usually specialize in a few specific funding categories.
    (5-star rating highest)

    Expertise: *****
    Price: ***
    Speed: *****

  • Technology or Marketing Companies Offering “Part-Time” Government Funding Application Services: These companies primarily focus on technology applications or marketing, but they also offer “part-time” services to help clients apply for government funding. For example, a company specializing in ERP systems may also assist clients in applying for technology vouchers, which align with the solutions they provide.
    (5-star rating highest)

    Expertise: *
    Price: ****
    Speed: **

  • Secretarial Firms or Accounting Practices Offering “Part-Time” Government Funding Application Services: Similar in nature to the second category, these companies are also prevalent. They sometimes assist clients in applying for more suitable government funding programs due to their access to clients’ financial information. Among the Big Four accounting firms in Hong Kong, some have dedicated departments for assisting clients in applying for government funding and loans, as part of their “value-added services.”
    (5-star rating highest)

    Expertise: ****
    Price: ***
    Speed: ***

  • Companies Engaging in Fraudulent Government Funding Schemes: You may have received calls like this, claiming, “We can apply for certain government funding for you, and your company doesn’t need to do anything. We’ll settle the accounts after the funding is approved.” These so-called “companies” only require your company’s name to assist you in applying for funding, while secretly preparing all the documents and evidence on your behalf. Remember: There’s no such thing as a free lunch. The government has recently increased efforts to combat false applications for pandemic-related funds. If you fall into the trap of scammers, both the applying business and its owner may face severe consequences.
    (5-star rating highest)

    Expertise: *
    Price: *****
    Speed: *

Therefore, businesses must carefully choose consulting companies and, through conversations, ascertain whether the consulting company has a thorough understanding of government funding. Additionally, businesses should consider reviewing relevant government funding information on the official government website as an initial step.

 

3. Understand the Consultant’s Background and Application Experience:

As mentioned in the previous point, some consultants have primary “day jobs” and are not specialized government funding consultants. Many times, they may be client managers or regular salespeople with no expertise in government funding. On the other hand, some consulting companies that specialize in government funding have team members who have worked in various funding agencies and are relatively familiar with the workings of funding applications. Therefore, businesses must carefully choose the right funding consultant and ascertain from their conversations whether the consultant has a sufficient understanding of government funding. Businesses should also consider reviewing relevant government funding information on the government’s official website or other relevant sources.

 

4. Consulting Company’s Consultation Mode

Many government funding consulting companies in the market can provide preliminary funding consultation services. Typically, consulting companies will first assess the business’s needs and eligibility before providing consultation and a quotation. However, some funding consulting companies may require an initial payment before commencing consultation. Businesses can decide whether to opt for paid consultation. If a funding consultant does not propose a face-to-face consultation, businesses should proactively request one. This allows businesses to better understand the consultant’s background and scale and gain a deeper understanding of various government funding procedures for future applications.

 

5. Consultant Service Content

Government funding consulting companies usually offer services such as preparing application forms and final reports. However, it’s essential to note that if a funding consultant claims to “create” applications for you to obtain more government funding, businesses should be aware of the legal risks. Defrauding government funds is a serious criminal offense, and there have been cases where companies were prosecuted. If any false documents are involved during the application or execution process, the applying business will bear 100% of the legal responsibility, and unscrupulous consulting companies may escape legal consequences.

 

6. Funding Consultant Company’s Fee Structure

  • Fee Based on Funding Percentage: Many funding consultants in the market adopt a “percentage of funding amount” fee structure, with commissions ranging from 8% to 25%. They often advertise as “no success, no fee.” As the name suggests, the benefit of this type of technology voucher consultant service is that if the technology voucher application fails, the applying business does not need to bear any financial costs (though costs related to human resources, time, business opportunities, etc., are unavoidable). Because consultant fees are calculated as a percentage, the higher the funding amount, the higher the consultant’s commission. This fee calculation method can motivate consultants to maximize the scale of technology voucher projects. If applying businesses are not familiar with technology solutions, they may be easily persuaded by consultants to use unnecessary system functionalities. While the short-term upfront fee is not very apparent due to receiving 75% funding from the government, the long-term system maintenance costs need to be paid at the full price, creating a long-term burden for the applying business.
  • Fixed Fee: A fixed fee is entirely uniform, or it may be calculated based on the workload of the application project, not tied to the funding amount. The fee generally ranges from thousands to tens of thousands of dollars. Since consultant fees are independent of the application project, consultants have no incentive to persuade client companies to use unnecessary technology solutions. The engagement process is more direct and fast. However, independent consultants may not have the structural motivation to maximize funding like intermediary consultants with a “no success, no fee” model. Therefore, it is essential to have a clear explanation before commissioning an independent consultant to establish trust.
  • For more details, please refer to: Link to a website.

The Innovation and Technology Fund allocated 4 billion dollars last year, doubling over the past 5 years.

BUD Special Fund

According to a report by the Hong Kong Economic Journal, the Hong Kong government’s funding for the “Innovation and Technology Fund” reached a new high in 2021, with actual expenditure doubling compared to 2017, reaching 4 billion Hong Kong dollars. The funding for the Technology Voucher Program (TVP) also increased to 590 million dollars, nearly 18 times higher than in 2017. TVP provides a maximum subsidy of up to 600,000 dollars to each company, aiming to support businesses in purchasing and implementing technology systems to enhance competitiveness and facilitate transformation. The maximum subsidy rate is 75%. TVP accepts applications throughout the year and allows projects to commence immediately after submission.

Read more: Introduction to the Technology Voucher Program (TVP).

The Director of the Innovation and Technology Bureau pointed out that during the pandemic, the Technology Voucher Program (TVP) has become very popular. In June 2021, the Innovation and Technology Bureau entrusted the Productivity Council to serve as the secretariat for TVP, which has helped expedite approvals. It is anticipated that approval rates should be more favorable by the middle of this year.

According to figures from the Innovation and Technology Bureau, in 2021, the Innovation and Technology Fund received over 11,300 applications, with 8,960 of them already approved. This represents a significant increase compared to 2017 when there were 3,000 applications and 1,500 approvals, marking an increase of 2.8 and 5 times, respectively. The actual expenditure of the Innovation and Technology Fund in the past year was approximately 4 billion dollars, which is more than twice the 1.33 billion dollars in 2017. The number of TVP applications and approved subsidies also saw a noticeable increase, rising from 577 applications in 2017 to 5,108 in 2021, with approved subsidies increasing from 31.7 million dollars to 590 million dollars, nearly 18 times higher.

Read more: Popular Projects under the Technology Voucher Program (TVP).

In 2020, during the pandemic, the government introduced the “Distance Business Program” to support businesses in continuing their operations through information technology. To date, the government has approved a total of 25,744 applications, involving over 21,000 companies, with 95% of them being small and medium-sized enterprises (SMEs), and the total funding amounting to approximately 1.7 billion dollars.

Hong Kong Funding Advisors Limited’s consultants for the Technology Voucher Program (TVP) have extensive experience. They can save businesses the time and reduce the chances of application failure when compared to self-application. Hong Kong Funding Advisors Limited has been specializing in TVP applications for many years, and their consultant team possesses senior-level experience. The most important guarantee they offer is a refund in case of an unsuccessful application.

Read more: 10 Common Questions About Applying for Technology Vouchers.

 

獲取建議

Successful Cases of Expanding into Macau with BUD

Successful Case of Expanding into the Macau Market Using the BUD Special Fund

Beauty Agency Company Encounters Challenges in Developing in Hong Kong?

In 2020, a beauty product agency company in Hong Kong with over 20 years of operation (hereafter referred to as “Beauty Agency”) approached us and entrusted our consultants to assist them with their BUD application. They focused on representing and distributing high-quality international beauty products. Leveraging their keen insights into market trends and stringent product selection standards, Beauty Agency quickly established a strong reputation and recognition in the Hong Kong beauty product market.

Beauty Agency adheres to the philosophy of “quality first, customer-oriented,” dedicating themselves to providing the highest quality beauty products for Hong Kong consumers. The company represents brands in various categories, including skincare, cosmetics, perfumes, and covers both well-known international brands and innovative emerging brands.

To meet the diverse needs of consumers, Beauty Agency not only established multiple physical stores in Hong Kong but also engaged in online sales and promotions through e-commerce platforms and social media. They have a professional marketing team responsible for designing and executing various promotional activities to attract more consumers and expand their market share.

Furthermore, Beauty Agency places a strong emphasis on spreading and disseminating product knowledge. They frequently host beauty seminars and product trial events to educate consumers about product efficacy and usage. The company also provides professional beauty consulting services to ensure that customers can select products that best suit their needs.

Beauty Agency doesn’t just focus on local market demands but also actively seeks opportunities to expand into overseas markets. With years of industry experience and a professional team, Beauty Agency has successfully established itself as a leading player in the Hong Kong beauty product agency industry.

However, the company’s leadership revealed to our BUD consultants the recent operational challenges they’ve faced. These challenges include intensified market competition, changes in the economic environment, and rising rental costs. Particularly, the COVID-19 pandemic has had a significant impact. Hong Kong implemented a series of preventive measures such as restricting the flow of people and enforcing social distancing. As a result, foot traffic to Beauty Agency’s physical stores saw a substantial decline, severely impacting their performance. Additionally, the pandemic disrupted global supply chains, making it difficult to procure and supply certain products. Finally, amidst business expansion and heightened market competition, Beauty Agency needed to attract and retain more talented individuals. However, the recruitment and training costs for such talent have been steadily increasing, placing pressure on the company’s human resources.

Beauty Agency Company Encountering Bottlenecks in Development in Hong Kong

After a series of market research, Beauty Agency chose Macau as a market outside of Hong Kong. The main reason is that Macau is relatively close to Hong Kong, with convenient transportation between the two places. This makes it relatively easy for the company to expand and operate in the Macau market, and it allows them to fully utilize Hong Kong’s advantages as a regional logistics and supply chain center.

Furthermore, Macau and Hong Kong are both Special Administrative Regions of China, and they share many similarities in language, culture, and lifestyle. This makes it easier for the Hong Kong beauty agency to understand the demands of the Macau market and quickly adapt to the local market environment. As a famous tourism and entertainment center in Asia, Macau attracts a large number of domestic and international tourists every year. This creates a significant demand for beauty products in the Macau market, providing excellent market opportunities for the beauty agency.

In terms of the economy, Macau has experienced stable economic growth in recent years, especially driven by the tourism, gaming, and hotel industries. The purchasing power of local residents has been steadily increasing, creating a favorable economic environment for the beauty agency in the Macau market.

Additionally, the Macau government actively supports economic cooperation and exchanges between the two regions and has introduced a series of facilitative policies to encourage Hong Kong businesses to invest in Macau. The beauty agency can take full advantage of these policy benefits to reduce the costs and risks of market expansion.

In summary, by choosing Macau as a market outside of Hong Kong, the beauty agency can leverage factors such as geographical proximity, cultural similarities, the development of the tourism industry, economic growth, and policy support to expand their business more rapidly and enhance brand recognition.

The Development of the Macau Market is not Without its Challenges..

In the expansion plan of Beauty Agency into the Macau market, they encountered significant difficulties in terms of financial resources, especially with regard to upfront investment costs. Expanding into the Macau market required substantial initial investments, including market research, brand promotion, store selection, and renovations. These investments may put pressure on the company’s cash flow, especially in the initial stages of the business when income is not yet stable.

Operating in Macau, the beauty agency needs to cover local expenses such as rent, employee salaries, and logistics costs. Due to the higher cost of living in Macau, these expenses may have an impact on the company’s financial condition.

How can BUD in Macau Lend a Hand?

The beauty agency used the BUD Special Fund to expand its business in the Macau market and adopted the following strategies:

  1. Hiring Sales and Marketing Personnel: The company hired sales and marketing professionals with local market experience and expertise in the Macau market. They were responsible for introducing the company’s beauty products to potential customers and establishing partnerships with local beauty salons, pharmacies, department stores, and other collaborators to expand product sales channels.

  2. Creating Product Samples: To provide potential customers with a more intuitive understanding of the company’s products, the company created various product samples. These samples were showcased in the company’s stores, partner sales points, and various exhibition events to attract customers for product trials and purchases.

  3. Establishing a Website: The company developed a dedicated website tailored to the Macau market, offering versions in both Chinese and Portuguese to cater to local market demands. The website featured the company’s brand story, product descriptions, event information, and provided online shopping capabilities, allowing customers to conveniently browse and purchase products at any time.

  4. Google Advertising: The company utilized the Google AdWords platform for search engine marketing (SEM). They ran keyword advertisements targeting potential customers in the Macau market, increasing the brand’s visibility in search results and attracting more potential customers to visit the company’s website or physical stores.

  5. Facebook Advertising: The company ran targeted audience advertisements on Facebook, tailoring them to the characteristics and interests of consumers in the Macau market. This approach aimed to enhance brand awareness on social media and encourage potential customers to become actual consumers.

  6. Participating in Exhibitions: The company actively participated in beauty industry exhibitions held in Macau. By showcasing its products and services at these events, the company engaged in face-to-face interactions with industry professionals and potential customers, enhancing its brand image and expanding business collaboration opportunities.

BUD Has Shown Significant Effectiveness

Through the implementation of these strategies, the beauty agency has achieved positive results in its expansion plan in the Macau market. Here are the specific achievements:

  1. Increased Brand Awareness: Through various online and offline promotional activities, the company has successfully increased its brand awareness and reputation in the Macau market, attracting more attention from potential consumers.

  2. Expanded Market Share: The company has established stable partnerships with local sales channels, successfully tapping into new customer groups. Additionally, the establishment of the company’s online sales channels has provided support for business growth, further increasing market share.

  3. Increased Revenue and Profits: With the company’s growing brand awareness and expanding customer base in the Macau market, sales and profits have gradually increased, generating significant revenue for the company.

  4. Accumulated Industry Experience: Throughout the expansion process in the Macau market, the company has accumulated valuable industry experience and market insights, which will be beneficial for the company’s future expansion into other markets.

  5. Built a Good Reputation: With high-quality products and excellent service, the company has built a strong reputation in the Macau market, further solidifying its brand image and attracting more potential consumers.

With the support of the BUD special fund, the beauty agency has achieved significant success in its expansion plan in the Macau market. This not only helps enhance the brand’s local visibility and market position but also provides experience and a foundation for the company’s expansion into other markets in the future.

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Latest Release: BUD Easy Application

The government launched the “BUD Special Fund” on June 16, 2023 – Easy Application:

  • The funding ceiling for each approved project under Easy Application is HKD 100,000????.
  • Funding will still be provided on a 50%:50% basis, following the principle of equal sharing????.
  • Application processing time has been shortened to complete within 30 working days⏳.
  • Applications will be accepted throughout the year, and you can apply every 6 months????.
  • The maximum project implementation period is 12 months????.

“BUD Special Fund” – Easy Application can fund projects such as????:

  • Advertising promotion
  • Exhibitions and related expenses
  • Design and production of promotional materials
  • Establishing or updating company websites
  • Mobile applications for promotional purposes, and more.

BUD Special Fund for Purchasing Machinery and Relocating Facilities: Quotation Guidelines

BUD Fund Special Fund Application and Quotation Guidance

The BUD Special Fund provides grants of up to HK$7 million to support Hong Kong businesses in investing or expanding into Mainland China or economies with which Hong Kong has signed free trade agreements. The scope of BUD funding includes projects related to brand development, upgrading and transformation, and/or expansion into Mainland China and free trade agreement economies. Upgrading and transformation can involve transitioning from an Original Equipment Manufacturer (OEM) to an Original Design Manufacturer (ODM) or Own-Brand Manufacturer (OBM), product strategy, new product development, manufacturing technology upgrades, process and business automation, management systems, business process reengineering, quality improvement, and enhancements in warehouse management, fleet management, and distribution management systems.

Segmented production line expansion is advantageous for BUD Fund applications. For example, when a Hong Kong business establishes a production line in ASEAN countries and applies for the BUD Special Fund, they can receive funding for leasing/fit-out of new units, utilities, purchasing or leasing machinery and equipment, and even acquiring molds, specialized, and computer hardware/software for manufacturing new products.

The government sets a maximum funding limit of HK$1 million for each BUD Special Fund project. When formulating their BUD Special Fund project application strategy in line with their investment plans, Hong Kong businesses should avoid affecting the approval process due to the project’s scale and budget being too large. Evaluating the project’s complexity, required time, and funding for each stage and breaking down the investment plan into different projects can provide more flexibility in project execution.

For the enhancement of existing production lines, after multiple rounds of optimization, BUD Special Fund applications for purchasing machinery, equipment, or molds with the goal of expanding capacity have been accepted. Given the unpredictable economic climate, some businesses view production line downtime as an opportunity to restructure internal production lines and use funding to upgrade equipment, waiting for the right time to rebound.

Crystal Clear Toys Utilizes BUD to Relocate Production Lines to Cambodia

Crystal Clear Toys Manufacturing Limited, a medium-sized toy manufacturer in Hong Kong with over thirty years of history in the toy industry, primarily operated its main production lines in Guangdong. However, due to rising production costs in recent years and fluctuations in the economic environment, the company faced significant pressures. This situation became even more challenging when disruptions, such as the COVID-19 pandemic, led to production line shutdowns.

During this difficult period, the company’s leadership decided on a strategic realignment. They recognized Cambodia as an attractive manufacturing base due to its lower production costs, abundant labor resources, and free trade agreements with multiple countries. Consequently, Crystal Clear Toys Manufacturing decided to relocate a portion of its production lines to Cambodia.

To execute this plan smoothly, the company applied for the BUD Special Fund. With the grant, company executives started purchasing machinery, equipment, and molds required in Cambodia. Simultaneously, they established partnerships with the local government and industrial zones to ensure a smooth relocation and restart of production lines.

The funding not only aided Crystal Clear Toys in successfully transferring its production lines but also provided training and technical support, enabling the company to adapt quickly and enhance efficiency in the new production base. Moreover, due to Cambodia’s favorable geographic location, the company could conveniently provide faster deliveries to its Southeast Asian customers.

As a result, with the assistance of BUD funding, Crystal Clear Toys not only weathered the economic downturn but also achieved greater success in new markets.

Crystal Toy Utilizes BUD to Relocate Production Lines to Cambodia

Crystal Toy Manufacturing Co., Ltd. has over thirty years of history in the Hong Kong toy industry, specializing in the production of high-quality plastic toys. While the company had experienced steady growth over the past decade, increasing production costs in China and uncertainty in the global economic environment began to put pressure on its profit margins.

The company’s management saw the potential of Cambodia as a new manufacturing hub, especially considering the country’s recent economic growth, favorable policies for foreign investment, low labor costs, and production expenses. Consequently, Crystal Toy Manufacturing decided to establish new production lines in Cambodia.

To ensure the success of this strategy, Crystal Toy Manufacturing applied for the BUD Special Fund. Upon approval, the company initiated a series of actions, from acquiring advanced toy manufacturing machinery and molds to establishing a new factory in Cambodia and training local staff to ensure production quality and efficiency.

An important part of BUD funding was technology transfer. With the assistance, Crystal Toy Manufacturing was able to transfer the expertise and technology it had accumulated in Hong Kong to Cambodia, successfully establishing production standards in the new location that matched those of its Hong Kong factory.

Before long, the company’s new factory in Cambodia was operational, significantly reducing production costs and expanding sales to Southeast Asian markets. With the success of this endeavor, Crystal Toy Manufacturing began considering further expansion of its production bases in other Southeast Asian countries.

IT Company Uses BUD to Establish Operations Center in the Philippines

Blue Sea Network Technology Limited, with over twenty years of experience in the Hong Kong IT industry, is renowned for providing customized software solutions and data management services. However, in recent years, the company has faced business pressures due to increased competition and rising costs.

Considering the rise of technical talent, English communication skills, and lower operational costs in the Philippines in recent years, Blue Sea Network Technology decided to establish its software development and customer support center in the Philippines.

To successfully transition its operations to the Philippines, Blue Sea applied for funding from the BUD Special Fund. After receiving the grant, the company initially conducted market research and site selection, subsequently leasing office space in Manila. Funds were also used to purchase new server hardware and software licenses.

The company utilized the funding for recruiting and training local staff to ensure seamless collaboration with their team in Hong Kong. Additionally, investments in video conferencing systems and cloud solutions guaranteed real-time communication and data synchronization between the two teams.

With BUD funding, Blue Sea Network Technology’s branch in the Philippines quickly became operational, not only providing the company with additional software development capabilities but also offering 24-hour customer support services, significantly enhancing customer satisfaction.

The successful business transition also allowed Blue Sea Network Technology to allocate more resources to research and development and expand into other Asian markets, identifying more business opportunities.

Plastic Bag Manufacturer Utilizes BUD to Establish Production Line in Myanmar

Golden Prosperity Plastic Bag Products Limited has been one of the leading plastic bag manufacturers in Hong Kong since the 1970s. The company’s product range spans from food packaging bags to large-scale logistics plastic bags. However, in recent years, the company faced unprecedented pressures due to rising production costs, tightening environmental regulations, and international calls to reduce plastic waste.

Considering the low labor costs, abundant resources, and potential for growth in the Myanmar market, Golden Prosperity decided to establish a new manufacturing factory in Myanmar, focusing on producing biodegradable plastic bags.

With the assistance of the BUD Special Fund, Golden Prosperity acquired land in Yangon, Myanmar, and introduced advanced bioplastic technology. These new technologies not only made their products more environmentally friendly but also opened up new market opportunities.

Funds were also used for training local staff to ensure they had the right production skills and quality control procedures. Additionally, Golden Prosperity established a research and development center focused on researching more sustainable and innovative plastic alternatives.

Following the successful transition to Myanmar, Golden Prosperity not only improved production efficiency and reduced costs but also successfully expanded into the local market. Their biodegradable bags received a warm welcome in Myanmar and neighboring countries, leading to rapid growth for the company in a short period.

BUD Quotation Pitfalls

In accordance with the requirements of the BUD Special Fund application, all procurement activities must adhere to established procedures, including: drafting quotation invitation letters, obtaining written quotations from suppliers in accordance with the purchase order value, and even conducting public tenders. The relevant guidelines are as follows:

BUD Special Fund applications must adhere to procurement procedures:

Purchase order valueProcurement procedure
>HK$2000至HK$50,000

Inviting at least two suppliers to submit written quotations.

>HK$50,000至HK$300,000Inviting at least three suppliers to submit written quotations.
>HK$300,000至HK$1,400,000Inviting at least five suppliers to submit written quotations.
> HK$1,400,000Public tender

When submitting quotations for the BUD Special Fund application, the references provided will impact the approval committee’s consideration of the funding budget for the BUD project. Therefore, it is recommended that businesses, after thoroughly referencing market information, have a dedicated person write the quotation invitation and initiate the project quotation process.

During the execution of the quotation process, companies should properly store quotation forms and correspondence with suppliers. This is crucial for the BUD Special Fund’s project verification. The absence of quotation forms or the failure of companies to adhere to the required procedures, thus violating the “lowest bidder wins” quotation principle, is a common and potentially fatal mistake. Additionally, when inviting quotations, attention should also be paid to the BUD Special Fund’s guidelines regarding “anti-collusion.”

BUD Application Guide (Part 1): Reducing Labor Costs with BUD Consultants

Comprehensive View of Government Grants

Hong Kong Grant Consultants Limited specializes in providing “BUD Special Fund consulting services” to Hong Kong businesses. With a wealth of successful cases, we assist businesses of all industries, including small and medium-sized enterprises, first-time applicants, joint ventures, and companies with diversified equity holdings. We offer end-to-end planning and application services for BUD Fund projects, ensuring successful applications and prompt receipt of high-value BUD Special Fund grants, making it easier than you might think.

Our professional team of grant consultants can provide one-stop government grant consulting services tailored to your business needs. Our goal is to “utilize government grants and seize business opportunities” to serve your company.

Overview of Government Grants: Technology Voucher Consulting Services, EMF Consulting Services, BUD Special Fund Mainland Program, BUD Special Fund Free Trade Agreement Program

To learn more about the BUD Special Fund, contact our BUD Special Fund consultant at (+852 9867 6897) for a free case assessment.

12 Successful BUD Fund Cases

Tips for Successful BUD Application |

The BUD Special Fund provides up to $7 million in funding to assist Hong Kong enterprises in entering the free trade zones/mainland China market, developing their brands, and upgrading their transformations. Many companies that have attempted to apply for BUD funding find the application process quite cumbersome. The application form alone spans several dozen pages, and it must meet all the requirements. As a result, many businesses ultimately fail in their attempts, hindering opportunities for business development. BUD consultants are here to share 12 successful examples of BUD Mainland Special Fund projects. These projects cover industries that we encounter in our daily lives, including products and services, and BUD projects typically include exhibitions, brand development, system upgrades, and more, making them highly relevant.

Wine Sales - Creating a Brand and Establishing an E-commerce Platform

As Chinese consumers increasingly prioritize quality of life and taste, the demand for red wine in the market continues to grow. A Hong Kong-based red wine company recognized this opportunity and decided to enter the domestic market, aiming to expand its sales network through its own brand and an e-commerce platform.

The company implemented a series of measures:

  1. Creating their own brand: The company conducted market research, defined its target customer groups, and created several in-house red wine brands based on their preferences and needs.

  2. Establishing an e-commerce platform: Recognizing the growing trend of online shopping, the company decided to build its own e-commerce platform to provide a convenient shopping experience.

  3. Upgrading the logistics chain: Red wine requires specific storage and transportation conditions, so the company increased its investment in upgrading the entire logistics chain to ensure that the product maintained its optimal quality from production to the hands of consumers.

With the support of the BUD Special Fund, the company took the following actions:

  1. Quality inspection: To ensure that product quality met domestic market standards and consumer expectations, the company, with the support of the BUD Fund, conducted ISO quality inspections and product certification.

  2. Establishing the e-commerce platform: Increasing online sales channels.

  3. Market promotion: The fund also supported the company in conducting various market promotion activities, including online advertising, wine tasting events, and participation in domestic wine exhibitions, enhancing brand awareness.

  4. Employee training: The fund also supported training for company employees to enhance their professional knowledge and skills to meet the demands of the domestic market.

Results: With the support of the BUD Special Fund, the company successfully entered the domestic market. Their in-house brand gained recognition among consumers, e-commerce platform sales continued to grow, and the upgrade of the logistics chain ensured product quality and consumer satisfaction, thereby enhancing overall competitiveness.

Beauty Products - Participating in Exhibitions and Upgrading Systems

In the past 30 years, with the rapid development of the Chinese economy, consumers have become increasingly focused on personal care and beauty, leading to the prosperity of the beauty products market. A beauty product brand agent based in Hong Kong with 20 years of establishment decided in 2019 to further expand its market share domestically and improve its business operations efficiency while increasing its business volume.

Here is the expansion strategy of the beauty product brand agent, BeautyX, in the domestic market:

  1. Participating in exhibitions: The brand decided to participate in beauty product exhibitions in Shenzhen, Guangzhou, and Shanghai to directly interact with target customers while showcasing and promoting its range of agent products.

  2. Upgrading CRM system: To manage customer information and sales data more effectively, the brand invested in upgrading its CRM system. The new system could centralize customer consumption behavior, product sales channels, sales records, and customer distribution information.

  3. Recruiting and training employees: After recruitment, the company organized a series of training activities. In addition to specialized CRM system training, all new employees underwent onboarding training on the company’s culture and product knowledge to ensure they fully understood the company’s core values and product features.

With the support of the BUD Special Fund, the company achieved the following progress:

  1. Exhibition support: Through the fund’s assistance, the brand was able to participate in more exhibitions, expanding its brand exposure domestically and attracting a significant number of potential customers.

  2. CRM system upgrade: The fund provided the necessary financial support, enabling the brand to upgrade its CRM system, thereby improving the efficiency of sales and customer management.

  3. Training: The fund also assisted company employees in gaining CRM system training, ensuring they could fully utilize the new system’s features to better serve customers.

Results: Thanks to the support of the BUD Special Fund, the visibility of this beauty brand in the domestic market significantly increased, and the exhibition participation yielded noticeable results. Furthermore, the upgraded CRM system enhanced their business operations efficiency, enabling the brand to promote products and services more effectively and respond rapidly to market changes, greatly improving its competitiveness.

Cosmetic Sales – Promotion and Repackaging

To carry out market promotion, advertising strategies are crucial. A cosmetic company, with the help of the BUD Fund, placed advertisements in local top beauty and cosmetic magazines and also revamped its product packaging to give the brand a fresh and youthful appeal. Additionally, the cosmetic company participated in major beauty expos, establishing connections with several influential distributors and buyers.

Children’s Clothing Brand – Online Advertising and Mobile Applications

In response to a new generation of parents willing to invest in their children’s clothing, the children’s clothing brand decided to expand its reach. They launched various online advertising campaigns and introduced a mobile application for promotional purposes. Furthermore, they utilized funding to hire staff to explore different sales channels to ensure the brand’s penetration in the market.

Footwear Company – Establishing Online and Physical Stores

To capture a significant market share, opening retail locations is essential. Additionally, with millions of internet users in China, setting up an online store and engaging in online promotion is crucial. Simultaneously, the company received funding to hire additional personnel to expand their sales team and enhance customer service and logistics quality.

Watch Manufacturer – Upgrading Factory Equipment

With the support of the BUD Special Fund, a traditional watch manufacturing facility introduced various automated production equipment, automating many labor-intensive processes and significantly improving product quality. After the upgrade, production costs were reduced by approximately one-third, enhancing market competitiveness.

Clothing Brand – Brand Enhancement and Promotion

Facing the shifting tides of the times, a former garment factory decided to establish its brand. They repositioned themselves in the market, hired professional brand designers to redesign their logo and storefront, and utilized various channels such as WeChat, Weibo, mobile applications, and websites to promote their new-generation brand.

Toy Manufacturer – Brand Development and Omni-channel Sales

Seeing declining profit margins in contract manufacturing, a toy manufacturer decided to create its brand, developing new educational toys for children. They also embraced omni-channel sales, including physical stores and online shops, to cater to a wide customer base.

Electronics Company – Research and Equipment Upgrades

Innovation and change are essential to gain customer trust. An electronics company, with the help of the BUD Special Fund, hired digital researchers to enhance product functionality for use in various household appliances. To assure customer confidence, they also acquired various testing equipment and certifications, ensuring product quality.

Logistics Company – System Upgrade

In the information age, system applications are indispensable. With funding from the BUD Fund, a logistics company upgraded its logistics and customer relationship management (CRM) systems. This not only made daily operations more efficient, saving costs, but also allowed for the analysis of customer habits and changing needs, thus improving sales methods and products to better satisfy customer requirements.

Accessory Manufacturer – Patents and Sales Channels

Domestic consumers place a high value on brands. Traditional accessory manufacturers used the BUD Fund to develop their own brand products, apply for patents, establish a professional sales team, create sales points, and promote their products online.

Snack Retailer – Brand Development and Market Promotion

Through advertising, a healthy snack brand was established, and awareness among partners was enhanced. Participating in expos not only promoted the products but also provided insight into consumer tastes, allowing for clearer direction in product development and sales strategies.

BUD Application Success is Guaranteed

The BUD program is a practical solution that benefits various businesses. To successfully apply and secure up to 2 million in funding, the BUD consulting team is your valuable ally. Hong Kong Funding Consultants Limited is a renowned government-funded brand with the motto “No success, no fee.” If you wish to apply for BUD, business owners should seek the assistance of Hong Kong Funding Consultants Limited.

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BUD Fund Expanding Mainland E-commerce: 6 Key Douyin Live Streaming Tips Recommended by the Official

HK$4 million BUD special fund to help expand the mainland e-commerce market |

HK$7 million BUD Special Fund Supports Expansion into Mainland E-commerce Market

With the rapid growth of the mainland e-commerce market, a new wave of live streaming e-commerce has opened up broader opportunities for sales. It is estimated that by 2022, the mainland e-commerce live streaming market will reach a market size of several hundred billion. Hong Kong companies looking to seize this golden marketing opportunity not only need sufficient budgets but also effective influencer marketing strategies. Utilizing the BUD Special Fund designed for Hong Kong companies to fund advertising promotions can not only upgrade brand image but also expand the mainland market.

According to data from the Ministry of Commerce and the China Internet Network Information Center, the number of mainland internet live streaming users is expected to reach 560 million, accounting for 62% of the overall internet users. E-commerce live streaming has a massive audience, and they highly favor the live streaming sales model. Douyin, with over 400 million daily active users, precise recommendation mechanisms, and a wealth of influencer resources, has become a platform where businesses vie for attention.

This article shares the 6 key rules for attracting traffic to Douyin live streaming rooms recommended by Douyin officially. The BUD Special Fund’s Mainland program can assist Hong Kong companies in entering the mainland e-commerce platform, including hiring influencers for product promotion, advertising on e-commerce platforms and social media, planning, production, design, and shooting costs, all of which can be included in the scope of BUD Special Fund funding. In addition, while using BUD funding to purchase equipment, making good use of funding for advertising promotion can bring a higher return on investment.

Short Video Promotion

Before starting the live streaming, use short videos to preview the live content to fans, and succinctly describe the live time, content, and highlights in the video caption. Usually, posting a preview at least 3 hours in advance can achieve the goal of attracting traffic. If the live content is very important, you can announce it 1 day or even 3 days in advance.

Homepage Announcement and Preheating

Setting a fixed live time helps to obtain a stable audience. Remember to announce the live schedule on your Douyin account’s homepage for easy reference by fans.

Adding POI Points in Live Streaming Rooms

During the live streaming process, add POI points (Point of Information positioning). Douyin will draw traffic from POI based on the “location-based positioning” principle and push messages to fans. This not only helps with more precise marketing but also brings more marketing creativity to Douyin live streaming. For example, businesses offering services can distribute coupons in the live streaming room, allowing fans to obtain coupons and visit the store for services and discounts, converting online traffic into offline business.

Live Streaming Calls to Action

Repeatedly remind viewers to follow your Douyin account during the live streaming. Once they click the follow button, Douyin will automatically send a live streaming reminder to ensure they don’t miss your next live stream. This helps effectively guide viewers to the next live stream. Additionally, you can frequently announce the time of the next live stream during the current live stream because viewers who are currently watching the live stream are clearly interested in your content. Directly appealing to these highly targeted viewers can bring higher value.

Buying Traffic

Creating live streaming content requires manpower and costs. To achieve cost-effectiveness, a certain number of viewers are needed. For businesses accumulating fans, directly purchasing traffic is the fastest way to boost the popularity of live streaming rooms. Purchasing traffic from Douyin’s commercial tool “Toutiao Engine” is an encouraged traffic acquisition method by Douyin.

External Traffic

Multichannel traffic acquisition, such as announcing in advance on Weibo, WeChat Official Accounts, and Little Red Book, can guide people to your Douyin live streaming room. Generally, effective operation of Douyin marketing requires at least 2 to 3 months to see results such as the growth of Douyin fans. When deploying strategies such as Douyin marketing and Little Red Book marketing, companies should be well-prepared in terms of marketing budgets and make good use of the BUD Special Fund to sell advertisements or carry out various marketing plans. This has become a new way for Hong Kong companies to seek funding.

BUD Fund Application Emphasizes Project Rationality

The Mainland program of the BUD Special Fund can provide each eligible Hong Kong company with HK$7 million, with a funding ratio of 50% of the total project cost. While the BUD Fund offers substantial funding, it has strict requirements for the reasonableness of measures, budgets, implementation schedules, and BUD Fund project quotations. Errors in documents, incomplete measures, or unreasonable budgeting can lead to delays in the BUD Fund application process, and the application may be rejected or result in significant discrepancies in funding expectations.

For companies applying for BUD funding for the first time, BUD applications involving multiple measures, complex investment relationships, or companies lacking personnel to handle applications, using BUD Special Fund managers can help save time and reduce risks.

BUD Fund Consultants Have First-Hand Information

We have a deep understanding of the requirements for BUD Fund applications and approvals, helping to avoid various delay risks that may arise after submitting the application. Since the launch of the BUD Special Fund program, we have provided services to companies of various sizes. In addition to the BUD Special Fund, we also provide consultant services for other funding programs, aiming to maximize the amount of funding from an overall perspective.

To learn more about the BUD Special Fund, feel free to contact our BUD Special Fund consultants for a free case assessment.