China Railway's third-quarter net profit up 4.5%

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By Ben Otto

China Railway Group Ltd.’s net profit rose in the third quarter, helped by higher revenue and one-time gains including government subsidies 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 one-off items such as gains of CNY223.0 million in government subsidies and CNY365.6 million from interest income received from non-financial enterprises, net profit for the quarter fell 2.5% to CNY7.33 billion, it said.

Revenue rose 6.4% in the quarter to CNY 288.78 billion.

For the first nine months of the year, net profit rose to CNY 23.02 billion from CNY 20.65 billion in the same period a year earlier, while revenue increased by more than 10% to CNY 848.18 billion.

The company’s value of new contracts in the first nine months rose 35% to CNY 1.983 trillion, with a 22% gain at the end of September to CNY 5.53 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 economic development still faces many difficulties and challenges,” China Railway said. However, it added that “accelerated recovery of investment in infrastructure construction has played a positive role” in helping to stabilize the country’s economy.

Write to Ben Otto at [email protected]

(END) Dow Jones Newswires

October 30, 2022 21:49 ET (01:49 GMT)

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