BOE Obtains RMB 260 Mln Government Subsidy
Netease Tech, 12/07/09
Chinese LCD panel maker BOE (000725.SZ) submitted a filing to the Shenzhen Stock Exchange saying that its subsidiary Hefei BOE Optoelectronics Technology Co., Ltd. has signed an "Electronics and Information Industry Innovation and R&D Cost Subsidy Agreement" with the Hefei New Railway Station Comprehensive Development Experimental Zone Committee.
Under the agreement, the committee will work to promote the development of Hefei's flat-panel display industry, and agrees to earmark RMB 260 mln for subsidies to Hefei BOE Optoelectronics following the completion of product design and development on the company's 19", 20.1", 22", and 23.6" TFT-LCD displays. The money will be paid in full by December 31. Hefei BOE Optoelectronics has already completed product design for the display models.
At the time of the announcement, Hefei BOE Optoelectronics had already received RMB 120 mln in subsidies from the Hefei New Railway Station Comprehensive Development Experimental Zone committee. As the funds will be used to pay R&D costs already incurred, BOE Optoelectronics has tentatively decided to list the funds under government subsidies pertinent to income. Under relevant regulations, government subsidies in this category may be counted as profit for the year in which they are received, meaning that the subsidies will have a major impact on Hefei BOE Optoelectronics' reports for 2009.
Keywords: government support government subsidy hardware display Hefei BOE Optoelectronics TFT-LCD 000725.SZ BOE flat-screen
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