On January 5, 2016, Guangdong Ganhua (000576) issued a notice stating that the wholly-owned subsidiary Guangdong Deli Optoelectronics Co., Ltd. (hereinafter referred to as “Deli Optoelectronicsâ€) and the Jiangmen High-tech Industrial Development Zone Management Committee signed the “MOCVDâ€. Equipment Subsidy Contract, on November 28, 2014, Deli Optoelectronics received the first phase of equipment subsidy of RMB 39.6 million.
For details, please refer to the “Announcement on Subsidiary Signing of MOCVD Equipment Subsidy Contract†and “Announcement on Subsidiary Receiving Equipment Subsidy†issued by the company on December 2, 2014.
On December 31, 2015, Deli Optoelectronics received the second phase of equipment subsidy of RMB 29.7 million.
According to the "Accounting Standards for Business Enterprises", the subsidies received this time belong to the government subsidies related to the assets, which are recognized as deferred income when received, and the deferred income is transferred to the average according to the estimated useful life of the relevant assets. For current profit and loss, the relevant accounting treatment shall be subject to the annual audit report.
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