Huacan Optoelectronics announced on the evening of July 1 that the company's wholly-owned subsidiary Huacan Optoelectronics (Suzhou) Co., Ltd. recently received the document "Reply on Granting Industrial Development Subsidies to Huacan Optoelectronics (Suzhou) Co., Ltd." (Zhang Jingguanfa [2014] No. 28) from the Zhangjiagang Economic and Technological Development Zone Management Committee, agreeing to allocate RMB 27.5 million in industrial development subsidy funds to Huacan Optoelectronics (Suzhou) Co., Ltd. for the second quarter of 2014.
The company stated that according to the relevant provisions of "New Accounting Standards No. 16 - Government Subsidy", the subsidiary'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 25%. It is expected to increase the company's 2014 net profit by 20.625 million yuan. (Soso LED Network)
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