CRRC First-Half Net Profit up 2.04%
Yicai Global
/SOURCE : Yicai
CRRC First-Half Net Profit up 2.04%

(Yicai Global) Aug. 23 -- CRRC Corporation, Co., Ltd. [SH:601766], the leader in the Chinese rail transportation equipment market, released financial statements for the first half of 2016 showing net profit of USD721 million (CNY4.795 billion), up 2.04 percentage points per annum.

The report lists the company's core businesses as railway equipment, urban rail and urban infrastructure services, AND emerging industries and modern services, which respectively made up 50.62, 10.64, 26.34 and 12.40 percent of the total operating income in the first half. Of these, railway equipment manufacturing was the largest contributor to revenue, with operating income from this business segment largely unchanged from the same period in 2015, though operating expenses dropped 1.11 percent. The company attributes this to tightened cost control by the management during the reporting period. A breakdown by the individual business of the railway equipment manufacturing yields operating income from motor manufacturing of CNY3,403 million, that of bus manufacturing was CNY3,074 million, and that of high-speed rail and train manufacturing were CNY38,311 million and CNY2,902 million, respectively.

Operating income from urban rail transit and infrastructure businesses rose 7.12 percentage points annually, with the increase attributable to the delivery of several urban rail transit vehicles and urban infrastructure projects in the first six months of 2016. Operating expenses in this segment rose 7.56 percentage points, in line with operating income growth.

The value of overseas orders secured by CRRC in the first half totaled CNY14.88 billion, up 126 percentage points per year. The company successfully bid for an 864-car metro train project in Chicago, Illinois, USA, and obtained a 56-car diesel locomotive order in Kenya, a 96-car metro train order in Thailand, and a 76-car metro train order in India, in addition to successful bids for projects in existing markets, such as Pakistan and Vietnam.

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