Shares in China Rongsheng Heavy Industries, the mainland's largest privately controlled shipbuilder, fell 4.45 per cent yesterday to end the day's trading at HK$2.36 before the company announced its annual results after the market closed.
Chief financial officer Sean Wang Shaojian said net profit was 1.72 billion yuan (HK$2.1 billion) last year, largely unchanged from 2010.
This included subsidies of 1.2 billion yuan from the Jiangsu government, against 800 million yuan in subsidies received in 2010, said chief executive Chen Qiang.
The flat earnings came after an increase in tax liability to 298 million yuan last year up from 264 million yuan a year earlier, Chen said.
Total revenue climbed 25.6 per cent to 15.9 billion yuan from 12.7 billion yuan in 2010, reflecting an increase in instalment payments made by Vale on its fleet of 12 very large ore carriers.
Commenting on the results Jon Windham, Asian marine transport analyst at Barclays Capital, said net income attributable to shareholders in the second half tumbled to 504 million yuan, down 59 per cent compared with the first half.