(Yicai Global) Jan. 17 -- Boe Technology Group Co. said yesterday that the Fuzhou government had forgiven the company’s semiconductor display project in the city of CNY6.3 billion (USD980 million) in loan debt.
The debt forgiveness will have a positive effect on the company’s operating performance. Boe expects to see its revenue increase by about CNY900 million this year from the project.
Boe signed a pact with Fuzhou municipal government and Fuzhou Construction Investment Group in April 2015. The three parties agreed to jointly invest in the construction of a production line for semiconductor display devices. The government designated investment platforms to provide Boe with funds via interest-free entrusted bank loans.
The manufacturing facility has started mass producing, Boe said. Fuzhou City Investment Boe Investment Co. and Fuzhou Construction Investment Group, as investment platforms designated by the municipal government, have provided Boe with over CNY6.3 billion in funds.
The forgiven debt is an asset-related government subsidy and is recognized as deferred income, Boe said.