On the evening of March 6, Hongli Zhihui announced that its controlling subsidiary, Jiangxi Hongli Photoelectric Co., Ltd., received a government industrial support fund of 15.1229 million yuan from the Finance Bureau of Nanchang Linkong Economic Zone on March 6, 2018. The financial assistance was provided in cash and has already been disbursed to the company. According to accounting standards, this type of government subsidy, which is related to income, is recognized as revenue in the period it is received.
It is important to note that these subsidies are not connected to the company’s regular business operations and are considered non-recurring in nature. As such, they are not expected to be sustained in the long term. This one-time funding reflects the local government's support for specific projects or initiatives, rather than an ongoing financial aid program.
The company has confirmed that the funds have been properly accounted for and are in compliance with all relevant regulations. While the grant provides a short-term boost, the company continues to focus on its core business strategies and long-term growth plans. Investors and stakeholders should keep in mind that this support does not indicate any change in the company’s operational sustainability or future performance.
In addition to the financial impact, the receipt of this grant also highlights the growing collaboration between the company and local authorities in promoting technological innovation and industrial development in the region. This partnership may open up new opportunities for future projects and investments.
Overall, while the subsidy is a positive development, the company remains committed to building a stable and self-sustaining business model that can thrive independently of one-time government support.
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