Hongli Optoelectronics: wholly-owned subsidiaries receive government subsidies

[Announcement]

Announcement on June 2, 2016, according to the spirit of the first director's office in Nanchang Airport Economic Zone in 2016, in order to support the development of the company, the company's wholly-owned subsidiary Jiangxi Hongli Photoelectric Co., Ltd. (hereinafter referred to as “Jiangxi Hongli”) On June 1, 2016, the enterprise support fund issued by the Nanchang Airport Economic Zone Management Committee was RMB 11.36 million.

[Announcement Review]

This fund accounted for 7.46% of the company's 2015 audited net profit attributable to owners of the parent company. According to the relevant provisions of the "Accounting Standards for Business Enterprises No. 16 - Government Subsidy", the supporting funds will be included in the current profit and loss and will be recognized as non-operating income in the second quarter of 2016. The government support funds will have a positive impact on the company's 2016 net profit.

[Institutional rating in the past two months]

Overweight: (Southwest Securities)

Buy: (Founder Securities, Ping An Securities, Northeast Securities)

[Technology]

The stock has been in a strong trend of rising prices in the near future. The main intention of pulling up is obvious. The average moving averages are rising upwards. In the short term, it is expected to continue to rise. Investors are actively concerned.

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