Private-run Chinese shipyard Taizhou Sanfu Ship Engineering’s profit increased 54% year on year (y/y) to CNY436.7 million (USD70.4 million) in 2014 because of business expansion into the manufacturing of steel structures.
Taizhou Sanfu’s revenue also rose 34% y/y to CNY5.6 billion in 2014, the yard’s annual report said.
In 2014, the yard expanded into the business of steel structure manufacturing, with the segment’s revenue totalling CNY1.3 billion. In 2013, the yard booked no revenue from the segment.
Also, the profit margin of Taizhou Sanfu’s shipbuilding segment fell by 0.2 percentage point to 9.4% in 2014.
The finance cost of the yard soared 414% y/y to CNY24.2 million as it took less gain from foreign exchange settlement.
The yard’s government subsidies received in 2014 also jumped 245% y/y to CNY20.7 million.