Henan Province-based Chinese steelmaker Zhongyuan Special Steel Co., Ltd (Zhongyuan Special Steel) has announced in a correction of its preliminary annual report for 2016, stating that it expects to record a net profit in the range of RMB 4-10 million ($0.58-1.46 million) for the year, compared to the net loss of RMB 213.3 million ($31.05 million) recorded in 2015. The company stated that Jiyuan municipal government granted it a financial subsidy of RMB 59.78 million ($8.7 million) in the fourth quarter of 2016. The subsidy in question will be recorded in the company’s non-operating income. Accordingly, the company has announced a correction of its preliminary annual report, posting a net profit for 2016.
In its previous preliminary annual report, Zhongyuan Special Steel had stated that it expected to record a net loss of RMB 100-120 million ($14.56-17.47 million) for 2016.