Announcement: Recently, Xiamen Tianma Microelectronics Co., Ltd. (hereinafter referred to as 'Xiamen Tianma'), a wholly-owned subsidiary of the company, received a statement from the Management Committee of Xiamen Torch Hi-Tech Industrial Development Zone about the grant of research and development subsidies for Xiamen Tianma Microelectronics Co., Ltd. 》 Xiamen Xiamen Torch Hi-Tech Industrial Development Zone Management Committee allocated RMB 100 million to Xiamen Tianma for R&D grants. As of the date of this announcement, Xiamen Tianma has received the above-mentioned subsidies.
According to the announcement, in accordance with the relevant provisions of Accounting Standards for Enterprises No. 16 - Government Subsidies and the company's accounting policies, government subsidies related to income, which are used to compensate for related costs or losses that have occurred, are included in profit or loss for the current period. Relevant costs; used to compensate for related costs or losses in subsequent periods, are included in deferred income, and are included in the current profit or loss or the relevant costs in the period in which the relevant costs, expenses or losses are recognized. Government subsidies related to the daily activities of the enterprise, The substance of economic business is included in other income or offsets related costs. Government subsidies that are not related to the daily activities of the company are included in non-operating income and expenditure.
The R&D subsidy funds received by Xiamen Tianma this time belong to the government subsidy related to the daily activities of the enterprise. The related cost expenses or losses used for compensation in the future period will be included in the deferred income, and will be included in other relevant cost, expenses or loss confirmation period. income.
The above subsidies are expected to increase total profit in 2018 by RMB 100 million (unaudited).