This excerpt taken from the CMI 10-K filed Mar 10, 2006.
14. Deferred income
In 2005, according to Xiang Guo Shui Han  No. 23, the Company is entitled to a government grant of RMB7,266,564 arising from the purchase of equipment manufactured domestically. The government grant is accounted for as deferred income and amortized over the estimated useful life of the related equipment acquired. In 2005, RMB385,835 of the deferred income (2004: nil) was amortized and credited to cost of sales.