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Recently, Dehao Runda (002005) released the "Announcement on Financial Subsidies for Fully-Shared Subsidiaries". The announcement disclosed that on March 15, 2011, Wuhu Dehao Runda, a wholly-owned subsidiary, received the procurement from the Wuhu Municipal Government. Part of the financial subsidies for MOCVD equipment was 249.6 million yuan.
Earlier, Dehao Runda’s wholly-owned subsidiary, Wuhu Dehao Runda Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Wuhu Dehao Rundaâ€) signed a total of 100 sets of MOCVD equipment procurement contracts with Veeco and Aixtron of Germany. The Wuhu Municipal Government will grant a certain amount of financial subsidies to local enterprises for the introduction of MOCVD equipment.
According to the “Accounting Standards for Business Enterprisesâ€, the subsidy received this time belongs to the government subsidy related to the assets, which will be included in the deferred income when it is received, and then used in the asset from the time when the relevant assets are available for use. The average distribution within the life span is included in the non-operating income. According to the company's accounting policy, the depreciation period of machinery and equipment is ten years, and the subsidy will be credited to profit or loss within ten years from the official use of MOCVD equipment. The company expects that the subsidy received this time will have a significant positive impact on the company's profit and loss during the next ten years of operation from 2011.
A week ago, the company issued the "Prompt Announcement on the Relocation and Renaming of Controlling Shareholders", which disclosed that the registered address of the company's controlling shareholder Zhuhai Dehao Electric Co., Ltd. (accounting for 25.39% of the company's total share capital) has been transferred to Wuhu City, Anhui Province. The residence was changed from “Building 65, Julongxi Villa, No. 389, No. 389, North Road, Xiangzhou, Zhuhai City†to “The third floor of the office building of the Management Committee of Wuhu Economic and Technological Development Zoneâ€. The company name was changed from “Zhuhai Dehao Electric Co., Ltd.†to “ Wuhu Dehao Investment Co., Ltd.".
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