China Railway's Third-Quarter Net Profit Rose 4.5%

beijingwalker · Oct 31, 2022

China Railway's Third-Quarter Net Profit Rose 4.5%

Oct 31, 2022 9:49 AM GMT+8
By Ben Otto

China Railway Group Ltd.'s net profit rose in the third quarter, helped by higher revenue and one-off gains including government aid and interest income.

The Beijing-based company posted a net profit of 7.89 billion yuan ($1.09 billion) in the period, up 4.5% from the same period a year earlier, it said late Friday.

Excluding non-recurring items such as gains of CNY223.0 million in government aid and CNY365.6 million from interest income received from non-financial enterprises, net profit in the quarter fell 2.5% on year to CNY7.33 billion, it said.

Revenue rose 6.4% on year in the quarter to CNY288.78 billion.

For the first nine months of the year, net profit rose to CNY23.02 billion from CNY20.65 billion in the year-ago period, while revenue rose more than 10% to CNY848.18 billion.

The company's value of new contracts in the first nine months rose 35% on year to CNY1.983 trillion, with its end-September backlog up 22% on year to CNY5.53 trillion.

"Due to the impact of environmental changes at home and abroad, there are still some prominent contradictions and problems in China's economic operation at present, and the economic development still faces many difficulties and challenges," China Railway said. It added, however, that "accelerated recovery of investment in infrastructure construction has played a positive role" in helping to stabilize the country's economy.