June 26 (NBD) -- San'an Optoelectronics Co., Ltd (600703.SH) announced Tuesday that its wholly owned semiconductor subsidiary received equipment purchase subsidy of 192 million yuan (29.5 million U.S. dollars) from the local government of Fujian province's Nan'an where the subsidiary resides last Friday.

The subsidy was categorized as unearned revenue in accordance with accounting policy.

In another deal, Xiamen Sanan Integrated Circuit Co., Ltd. (Sanan IC), another wholly owned subsidiary of San'an Optoelectronics, will transfer a 2 percent stake in San'an Huanyu to the wafer products manufacturer GCS Holdings, Inc for 80,000 U.S. dollars.

After the deal is closed, Sanan IC will hold a 49 percent stake in San'an Huanyu and the latter will no longer be included into the consolidated financial statements of Sanan IC.

The equity transfer deal will help push Sanan IC to a better position in the compound semiconductor sector, according to the announcement.

Email: tanyuhan@nbd.com.cn