China Railway Group (601390) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 543.29 billion, down 7.84% year-over-year; net profit attributable to shareholders was RMB 14.28 billion, down 12.08%.

• Gross margin was 9.00%, nearly flat year-over-year; basic EPS was RMB 0.532, down 12.07%.

• Cash flow from operations was negative RMB 69.33 billion, a larger outflow than the prior year.

• Total assets reached RMB 2.00 trillion, up 9.57% from year-end 2023; asset-liability ratio rose to 76.48%.

Financial highlights

• Revenue: RMB 543.29 billion (–7.84% YoY); net profit: RMB 14.28 billion (–12.08% YoY).

• EBITDA: RMB 33.42 billion (–1.5% YoY); gross margin: 9.00%.

• Net cash outflow from operations: RMB 69.33 billion (vs. RMB 29.97 billion outflow in H1 2023).

• Total assets: RMB 2.00 trillion; net assets: RMB 335.69 billion.

• Basic EPS: RMB 0.532 (–12.07% YoY); ROE: 4.52%.

Outlook and guidance

• Full-year new contract target revised to RMB 2.85 trillion; revenue target adjusted to RMB 1.234 trillion.

• Management expects continued pressure on cash flow and profitability due to delayed payments and market headwinds.