Huacan Optoelectronics received a government subsidy of 1.2 million yuan

Huacan Optoelectronics applied for the "High Voltage LED Chip Technology Research and Development and Industrialization" project in accordance with Wuhan Municipal Science and Technology Bureau's "2014 High-tech Achievements Transformation and Industrialization Plan Application Guide". It has recently received a project approval notice from Wuhan Municipal Science and Technology Bureau, and a subsidy of 1.2 million yuan has been arranged this year.

The payment has now been received. According to the relevant provisions of "New Accounting Standards No. 16 - Government Subsidy", the company's subsidy will be recognized as non-operating income in the second quarter of 2014 and paid corporate income tax at a tax rate of 15%. It is expected to increase the company's net profit in 2014 by 1.02 million yuan.

Wholly-owned subsidiaries receive supplementary government subsidies

On April 4, 2014, the company issued the "Announcement on Wholly-Owned Subsidiaries Receipt of Government Subsidies" (Announcement No. 2014-014). The announcement stated that the company's wholly-owned subsidiary Huacan Optoelectronics (300323) (Suzhou) Co., Ltd. received Zhangjiagang Economic and Technology The Development Zone Management Committee’s document “Reply on Granting Industrial Development Subsidies to Huacan Optoelectronics (Suzhou) Co., Ltd.” (Zhang Jing Guan Fa [2014] No. 10) agreed to allocate RMB 29.4 million in industrial development subsidy funds to Huacan Optoelectronics (Suzhou) Co., Ltd. in the first quarter of 2014.


The above-mentioned subsidy funds of RMB 29.4 million have been allocated to the company's account recently. According to the relevant provisions of the "New Accounting Standards No. 16 - Government Subsidy", the subsidiary's subsidy has been recognized as non-operating income in the first quarter of 2014. After paying corporate income tax at a tax rate of 25%, the company's net profit in 2014 increased by RMB 22.05 million. The specific accounting treatment is subject to the results of the annual audit and confirmation by accountants. This subsidy was also disclosed in the first quarter report of 2014.