On January 27, Liaoning Province-based Chinese steelmaker Lingyuan Iron and Steel Co. (Lingyuan Steel) announced that, according to its preliminary estimates, its net profit for 2013 increased by over 60 percent year on year. In 2012, the company's net profit had totaled RMB 43.584 million.
Lingyuan Steel stated that in 2013 the increase in its net profit was attributable to government subsidies. Accordingly, one of its wholly-owned subsidiaries, Linggang Beipiao Steel Pipe Co., Ltd, received local government subsidies of RMB 31.8 million ($5.26 million) and RMB 350 million ($57.8 million) on June 3 and June 25 in 2013, respectively. The subsidies in question were considered as non-operating revenue in the accounts for the given year.