Affected by the spread of the epidemic in many places in China, in the first quarter of this year, the loss of China National Railway Group Co., Ltd. (hereinafter referred to as the National Railway Group) increased compared with the same period last year.
The financial report shows that in the first quarter of 2022, the operating income of China Railway Group was 230.087 billion yuan, a year-on-year increase of 1.35%; the net profit was -46.085 billion yuan, and the loss increased by 12.92% year-on-year. In the first quarter of last year, its loss was 40.811 billion yuan.
In the whole year of 2021, China National Railway Group achieved a revenue of 1,131.3 billion yuan, a year-on-year increase of 64.6 billion yuan or 6.1%; a net profit loss of 49.85 billion yuan, a year-on-year decrease of 5.6 billion yuan.
The China National Railway Group has a number of listed companies. The first-quarter data released by these companies at the end of April showed that most of the net profits of transportation companies fell sharply.
Guangzhou-Shenzhen Railway (601333.SH) reported a revenue of 4.999 billion yuan in the first quarter, a year-on-year increase of 13.25%, but its net profit was a loss of 398 million yuan, a year-on-year increase of 326%. In March, an epidemic occurred in the Guangzhou-Shenzhen area, and the whole city of Shenzhen underwent static management for a week, which had a great impact on the passenger flow of the Guangzhou-Shenzhen Railway.
Beijing-Shanghai high-speed rail (601816.SH) first quarter revenue was 5.679 billion yuan, down 1.13% year-on-year; net profit was 220 million yuan, down 31.57% year-on-year.
From the perspective of China, railway passenger flow in the first quarter decreased by 14.2% year-on-year. During the May Day holiday this year, railway passenger traffic has dropped significantly. The China Railway Group estimates that 32 million passengers will be transported by rail during the May Day holiday, a drop of more than 70% compared to last year.
Among the listed companies in the railway freight industry, China Railway Special Cargo (001213.SZ) had a revenue of 2.099 billion yuan in the first quarter, a year-on-year decrease of 5.43%; its net profit was 115 million yuan, a year-on-year decrease of 15.07%.
The Daqin Railway (601006.SH), a dedicated coal transportation line, recorded a revenue of 18.259 billion yuan in the first quarter, a year-on-year decrease of 5.94%; net profit was 2.967 billion yuan, a year-on-year decrease of 18.12%.
Railway equipment companies affiliated to China National Railway Group performed relatively well, partly due to higher railway investment in the first quarter. In the first quarter, China’s railway fixed assets investment reached 106.5 billion yuan, a year-on-year increase of 3.1%, exceeding the quarterly investment task.
Tieke Rail (688569.SH) is mainly engaged in the research and development, production and sales of high-speed rail fasteners. In the first quarter of this year, its revenue was 266 million yuan, a year-on-year increase of 102.42%, and its net profit was 47 million yuan, a year-on-year increase of 758.82%.
The main business products of Golden Eagle Heavy Industry (301048.SZ) are large-scale road maintenance machinery, rail vehicles and catenary operation vehicles. In the first quarter of this year, its revenue was 753 million yuan, an increase of 13.62% year-on-year, and its net profit was 72 million yuan, an increase of 11.10% year-on-year.