Rainbow Heavy Industries returns to profit in 2016

Shenzhen-listed RHI posted a full year profit of RMB83.84m ($12.17m), emerging from the deficit of RMB460.46m in 2015.

Last year’s revenue was recorded at RMB2.82bn, a surge of 48% compared to RMB1.91bn in 2015.

The improved earnings were attributed to contributions from RHI’s acquisition of a 55% stake in compatriot Jiangsu Greenwise Environmental Protection Technology Co in June 2016, and cost savings reaped from streamlining its operations by shutting down its design subsidiary Shanghai Ouwei Offshore Engineering Technology also in June 2016.

RHI, which specialises in design, engineering and manufacturing of offshore equipment, said the company is continuing to elevate its capabilities in the areas of R&D and energy efficient products.

The proprietary brand Genma of Nantong Rainbow Heavy Machineries, wholly-owned by RHI, made its debut into the overseas market in 2016, including the US, Brazil and Myanmar.

Genma provides heavy machinery equipment that can be applied in industrial cranes, metallurgy cranes, port cranes, offshore cranes and bulk material handling equipment.