Lansi Technology Received Nearly 600 Million Yuan Government Subsidies

- Oct 11, 2018-

On the evening of October 8, Lansi Technology announced that its holding subsidiary Lansi Technology (Changsha) Co., Ltd. (hereinafter referred to as “Changsha Lansi”) received a government subsidy of 580 million yuan.

 

The announcement shows that Changsha Lansi recently received documents issued by the Management Committee of Changsha Economic and Technological Development Zone:

 

I. "Notice on Disbursing the Special Fund for Industrial Development of Lansi Technology (Changsha) Co., Ltd." Changjing Kaifa [2018] No. 40: Disbursed Changsha Lansi "Special Fund for Industrial Development" of RMB 285.92 million. Changsha Lansi received the payment in September 2018.

 

2. Notice on Disbursing the Special Fund for Industrial Development of Lansi Technology (Changsha) Co., Ltd. Long Changkai issued [2018] No. 44: Disbursed Changsha Lansi “Special Fund for Industrial Development” of RMB 30,000 million for new The initial R&D investment subsidy for the product. The amount is expected to be allocated to Changsha Lansi in the fourth quarter of 2018.

 

Lansi Technology said that according to the "Accounting Standards for Business Enterprises No. 16 - Government Subsidy", the above-mentioned government subsidy of 285.59 million yuan is related to assets. The company intends to include it in deferred income and build it according to the future project of Changsha Lansi. The formed fixed assets are amortized in installments; the above-mentioned government subsidy of RMB 30,000 million is related to the income. The company intends to include it in non-operating income and recognize it as current profit and loss, which will have a greater impact on the third quarter of 2018.