CRSC Wins Eight Significant Bids with Total Value of CNY 2.17 Bn

Industrials Author: Fuller Wang Nov 16, 2020 12:03 PM (GMT+8)

CRSC wins two bids on the railway system market and six bids on the urban railway market in recent two months, which is likely to help the company achieve growth again in Q4 2020 and fiscal year 2021.

Railway CRSC

According to the CRSC’s announcement on November 16, 2020, the company wins eight important bids on railway transportation markets from September to October. The eight bids include two on the railway system market, which are a Zhengzhou–Wanzhou high-speed railway connecting line and a new Bei'an–Heihe railway. The rest six bids are on the urban railway market involving six main Chinese cities, which are Chongqing, Zhengzhou, Hangzhou, Jinhua, Yiwu, and Dongyang.

The total value of the eight bids reaches CNY 2.17 billion, and this amount equals to about 5% of the operating revenue in 2019. If CRSC successfully signs final contracts with the eight projects and works out, it is likely to positively impact the performance on Q4 2020 and the whole fiscal year 2021.

CRSC reported its third-quarter operating result at the end of October. Affected by the COVID-19, the report shows the leading railway services company achieved a revenue of CNY 23.92 billion, down 14.9% year on year, and gained a net profit of CNY 2.65 billion, down 5.7%. The company’s main business is designing a railway control system, manufacturing equipment, and maintenance services, which account for 99% of its revenue.