Sanan Optoelectronics Company received a subsidy of 230 million yuan

It is understood that on the evening of December 16, Sanan Optoelectronics issued an announcement stating that according to the resolutions of the 41st meeting of the company's seventh board of directors and the first extraordinary general meeting of shareholders in 2014, the company decided to change the investment entity and implementation location of the LED industrialization project raised by non-public issuance of shares in 2013 to "the company's wholly-owned subsidiary Xiamen Sanan Optoelectronics Co., Ltd. and the Torch High-tech Zone (Xiang'an) Industrial Zone in Xiamen City, Fujian Province"; the company and The Xiamen Torch High-tech Industrial Development Zone Management Committee signed an "Investment Agreement", which stipulates that the company will invest in the construction of LED blue and green epitaxial wafers and chip production lines in the Xiamen Torch High-tech Industrial Development Zone. The Xiamen Torch High-tech Industrial Development Zone Management Committee agreed to grant The company's project company's single equipment is converted based on the 2-inch 54-piece subsidy amount of 5 million yuan, which is paid in installments according to the company's project company's payment progress. The scale is 200 MOCVD units (based on the 2-inch single-cavity 54-piece model).

The company has ordered 50 MOCVD units each from AIXTRONSE and VEECO on September 26, 2014 and December 10, 2014, for a total of 100 units (converted into a 2-inch 54-chip machine, equivalent to 200 units). On December 15, 2014, Xiamen Sanan Optoelectronics Co., Ltd. received a 40% subsidy of 230 million yuan for 50 pieces of equipment from the Xiamen Torch High-Tech Industrial Development Zone Management Committee.

According to the provisions of "Accounting Standards for Business Enterprises No. 16 - Government Subsidies", the subsidies for relevant production equipment received by Xiamen San'an Optoelectronics Co., Ltd. from the Xiamen Torch High-tech Industrial Development Zone Management Committee are recognized as deferred income when received, and are evenly amortized into profit and loss over the useful life of the relevant assets.