Affected by the epidemic COVID-19, the delivery of railway vehicles and equipment decreased in the first three quarters of this year, and CRRC Corporation (hereinafter referred to as “CRRC”) continued to decline in operating performance. In the first three quarters of 2020, CRRC’s revenue was 145.775 billion yuan, a year-on-year decrease of 5.66%; net profit was 6.793 billion yuan, a year-on-year decrease of 19.25%. On October 30, CRRC released a report for the third quarter of 2020, revealing the above information.
In terms of sectors, railway equipment revenue decreased the most, reaching 56.304 billion yuan, a year-on-year decrease of 36.38%, and modern services decreased by 17.02% year-on-year; revenue from new industries increased by 37.29% year-on-year; urban rail and subway sectors outperformed with the largest increase, with revenue in the first three quarters reached 39.594 billion yuan, a year-on-year increase of 44.82%.
In the first three quarters of 2020, CRRC’s new contracts totaled approximately 152.3 billion yuan, of which approximately 16.2 billion yuan was signed for international business. CRRC personnel revealed to a reporter from China Business News that in terms of new sign contracts, the urban rail and subway sector still thrives. As of September 30, CRRC has orders of 266 billion yuan in hand. Among them, the newly signed orders for locomotives, EMUs, passenger cars, trucks, urban rail subways, and new industries are respectively 18 billion yuan, 26 billion yuan, 8 billion yuan, 10 billion yuan, 172 billion yuan and 33 billion yuan.
The 2020 railway equipment bidding fell short of expectations. In the field of high speed EMUs, currently only 137 sets of 250 kilometers per hour Fuxing EMUs and 25 sets of 350 kilometers per hour high-cold EMUs have been tendered; in the locomotive field, nearly 400 units and 30,000 trucks have been tendered.
The reduction in railway passenger traffic has directly led to a reduction in the China National Railway Corporation’s demand for newly-built rolling stock. At the same time, the running mileage of the existing rolling stock has decreased, resulting in a simultaneous reduction in maintenance.