Ganzhao Optoelectronics received 12.77 million government subsidies, while Fufeng Technology/Langxing Lighting is in the big hands of “spending money”

On August 31, Qifeng Technology (836709) disclosed that on August 29, the company entered into a purchase agreement for sapphire furnace equipment with Shandong Hengtong Crystal Materials Co., Ltd. The total value of the contract amounted to 33 million yuan, with the subject being the ISS series sapphire crystal growth furnace (including the thermal field). The company stated that this agreement holds significant importance for the development of its sapphire business, further solidifying its market position in the sale of sapphire equipment and strengthening the company's brand influence. Qifeng Technology focuses on the development, production, and sales of sapphire crystal growth and processing equipment, high-hardness brittle material processing equipment, and sapphire crystal materials. Its primary products include sapphire crystal furnaces, sapphire rod machines, sapphire slicers, diamond wire square machines, as well as sapphire ingots and wafers. It is worth noting that on April 27, 2016, Qifeng Technology successfully listed on the New Third Board, becoming a legitimate "sapphire concept stock." According to financial reports, Gaogong LED reported operating revenue of 46.214 million yuan in the first half of 2017, representing a year-over-year increase of 1.95%; operating profit was 6.143 million yuan, increasing by 22.24% year-over-year. However, affected by the reduction in government subsidies in the first half of the year, the net profit attributable to shareholders of the listed company was 8,292,700 yuan, a year-over-year decrease of 44.33%; the net profit after excluding non-recurring gains and losses increased by 41.77%. Langxing Lighting announced on August 31, 2017, that it plans to acquire a 100% stake in Xiamen Feideli Lighting Technology Co., Ltd. (hereinafter referred to as "Feideli Lighting") for RMB 12.25 million. This acquisition does not constitute a related transaction, but qualifies as a significant asset restructuring. Langxing Lighting was established on May 21, 2008, and officially listed on the New Third Board on August 22, 2014. As a manufacturer of LED application products within the electrical machinery and equipment manufacturing industry, it specializes in LED engineering lights. Leveraging its patented technology advantages in LED planar light source packaging, its products are highly innovative in both function and structure, offering a high cost-performance ratio. In the first half of 2017, Langxing Lighting achieved operating revenue of RMB 47,749,300, an increase of RMB 16,603,800 compared to the same period last year, marking a year-over-year growth of 50.96%; the profit was RMB 1,106,900, a decrease of RMB 99,400 from the same period last year, reducing by -8.90% compared to the same period last year. Langxing Lighting mentioned that the increase in operating revenue during the reporting period was mainly due to the company's significant breakthroughs in LED outdoor lighting, particularly the Star Series street lamps, which received positive feedback from customers and resulted in several large orders. On August 31, Ganzhao Optoelectronics released the "Announcement on Receiving Government Subsidies." The announcement showed that based on the "Notice on Filing the Relevant Matters Concerning the Import of Interest-Promoting Funds for Encouraging Products in 2016" issued by the Xiamen Municipal Bureau of Commerce (Xiamen Business [2016] No. 178), Xiamen Ganzhao Optoelectronics Co., Ltd. (hereinafter referred to as "the company") received discounted interest subsidies for imported products from July 1, 2015, to June 30, 2016, totaling RMB 12,775,400. This subsidy was fully received on August 30, 2017. According to the relevant provisions of the "Accounting Standards for Business Enterprises No. 16 – Government Subsidy," the company treats these import interest subsidies as government grants related to assets. These grants are recognized as deferred income upon receipt and allocated over the useful life of the related assets, eventually being included in profit or loss. [Attached Image: Logo]

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