China: The CRRC’s revenue in railway segment fell more than twice against the backdrop of a decrease in sales of multiple units.
According to the producer’s report, it received 30.6 bln RMB ($4.6 bln USD) over the past quarter, which is 26% lower than the result for the 1st quarter of 2021. This is even more significant than the drop in the 1st quarter of 2020, when the lockdown measures due to the COVID-19 pandemic were first applied in China: then revenue fell by 16%.
Cost of sales for the period was 24.3 bln RMB yuan ($3.7 bln USD). This is also 26% below Q1 2021 spending, reflecting a reduction in production volumes. CRRC’s net profit for the quarter was 0.5 bln RMB ($83 mln USD), down 67% from the same period in 2021.
For the major railway segment CRRC saw an even bigger drop, down 65% to 5.4 bln RMB ($0.8 bln USD). Such losses in segment revenue are associated with a reduction in the sale of multiple units, including high-speed rail trains: negative dynamics for this type of vehicles has been observed for several years. Over the past 5 years, such a negative result for the segment was recorded in the 3rd quarter of 2020, when revenue fell by 53%.
At the same time, in the urban rail segment, CRRC’s revenue grew by 20% to 11.1 bln RMB (1.7 bln USD) in the quarter.
Also, according to the results of the period, CRRC notes the signing of agreements for 52.2 bln RMB (7.9 bln USD), of which 18% were international contracts. R&D spendings were at the level of 1.9 bln RMB ($0.3 bln USD) that is 17% lower than in Q1 2021.
