Huacan Optoelectronics Co., Ltd. received a government subsidy of 52.99 million yuan

Huacan Optoelectronics announced on the evening of November 11 that Huacan Optoelectronics (Suzhou) Co., Ltd., a wholly-owned subsidiary of the company, received the management committee of Zhangjiagang Economic and Technological Development Zone on November 4, regarding the industrial core of Huacan Optoelectronics (Suzhou) Co., Ltd. The document of the Approval of Equipment Purchase Subsidy agreed to allocate 52.99 million yuan of core equipment procurement subsidy for Huacan Optoelectronics (Suzhou) Co., Ltd. in the third quarter of 2014. The amount was paid to the account on November 10, 2014.

Huacan Optoelectronics said that according to the relevant provisions of the "New Accounting Standards No. 16 - Government Subsidy", the subsidy of the subsidiary will be recognized as deferred income, and will be equally recognized in profit or loss within the depreciation period of the relevant assets. The subsidy has little impact on the 2014 results, and the specific accounting treatment is based on the results of the annual audit of the accountant.

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