China’s CRRC records the biggest quarterly revenue drop in 5 years
According to the report of the world’s largest rolling stock manufacturer, it received 30.6 billion yuan ($4.6 billion) over the past quarter, which is 26% lower than the result for the 1st quarter of 2021.
This is reported by the railway magazine Railway Supply with reference to CRRC..
This is even more significant than the drop in the 1st quarter of 2020, when the lockdown measures due to the pandemic were first applied: then revenue fell by 16%. CRRC’s net income for the quarter was 0.5 billion yuan ($83 million), 67% down from the same period in 2021.
In the railway segment (main for CRRC) there is an even more significant drop – by 65%, to 5.4 billion yuan ($0.8 billion).
Such losses in segment revenue are associated with a reduction in the sale of multiple unit rolling stock, including high-speed rail trains: negative dynamics for this type of equipment 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 segment of urban rail transport, CRRC’s revenue grew by 20% to 11.1 billion yuan ($1.7 billion) in the quarter.
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