On July 11, Hubei Province-based Chinese steelmaker Wuhan Iron and Steel Co. (WISCO) announced that year to date it has received five subsidies worth a total of RMB 43.0393 million ($7 million) from government authorities at local and provincial level.
In 2012, the company had received government subsides worth RMB 345 million, compared to just RMB 29.7086 million in 2011. WISCO had posted a net profit of only RMB 112 million in 2012.
As overall government subsidies are included in the operating revenues of the company, they play a significant role in determining the company's profitability.