Huamao Shares (000850): Received Stable Subsidies, 15 Million 290 Thousand Subsidiary Received Textile And Clothing Special Funds Subsidy 10 Million 520 Thousand

Huamao shares (000850) issued a notice that recently, the company received 15 million 292 thousand yuan from the Anqing labor and Employment Bureau, and the subsidiary company Xinjiang Huamao alar Textile Co., Ltd. received 10 million 520 thousand yuan of textile and clothing special funds appropriated by the alar economic and Technological Development Zone Finance Bureau in 2020.

The announcement shows that the total amount of the above government subsidies is about 25 million 812 thousand yuan, accounting for 21.75% of the net income of the company in the last accounting year (2018).

It is understood that according to the provisions of the accounting standards for Enterprises No. sixteenth - government subsidy, the government subsidy related to assets refers to the government subsidy obtained by the enterprise for the purchase or construction or the formation of long-term assets in other ways. The government subsidy related to income refers to the government subsidy other than the government subsidy related to assets. The above government subsidy related to the daily business activities is 25 million 812 thousand yuan, all of which are included in other current income subjects.

In accordance with the relevant provisions of "accounting standards for Enterprises No. sixteenth - government grants", the company subsidized the above 25 million 812 thousand yuan into the 2020 annual profit. It will have a positive impact on the company's 2020 annual performance.