CRRC's Urban Rail and Urban Infrastructure Sector Increased Sharply in 3Q 2020

Industrials Author: Yangni Liu Nov 17, 2020 11:07 AM (GMT+8)

State-owned rail company CRRC is insisting on innovation and increasing its technical skills. Its urban rail products have reached the global market, meeting different demands.

CRRC

According to CRRC’s third-quarter report in 2020, it obtained in CNY 145.78 billion operating income, a decrease rate of 5.66% compared with last year’s same periods. Its net profits were about CNY 6.79 billion, declining 19.25% compared to the previous year. This reduction might be due to the fewer number of railway equipment transactions.

Nevertheless, although CRRC’s total operating income decreased, two sectors showed increasing trends. Specifically, CRRC has four main sectors – railway equipment, urban rail and urban infrastructure, new industry and modern services. Almost all have presented good performances at this quarter, especially the urban rail and urban infrastructure sector. This latter had a growth rate of around 44.82%, resulting from rising sales volumes in urban railway products. The modern service sector gained more income from wind power products, increasing 37.92% approximately.

Another surprising piece of news was CRRC’s expansion in its international businesses. As the third quarter report said, it had CNY 16.2 billion in new orders from international businesses, accounting for 10.63% of total new orders. In the future, CRRC is expected to expand its global businesses further, becoming a pioneer for Made in China 2025.