China Railway Group (601390) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was RMB 818.48 billion, down 7.3% year-over-year.

• Net profit attributable to shareholders was RMB 20.57 billion, a decrease of 14.33% year-over-year.

• New contract value signed in the first three quarters was RMB 1.53 trillion, down 15.2% year-over-year.

• Unfinished contract value at period end reached RMB 6.33 trillion, up 7.6% from 2023 year-end.

Financial highlights

• Q3 revenue was RMB 275.19 billion, down 6.22% compared to the same quarter last year.

• Q3 net profit attributable to shareholders was RMB 6.29 billion, down 19.05% year-over-year.

• Basic and diluted EPS for the first nine months was RMB 0.784, down 14.13% year-over-year.

• Operating cash flow for the first nine months was negative RMB 71.26 billion, a significant deterioration from the previous year.

• Gross margin for the first nine months was 8.95%, down 0.27 percentage points year-over-year.

Outlook and guidance

• New contract value for domestic business fell 16.1% year-over-year, while overseas contracts declined 3.2%.

• New contracts in emerging businesses grew 23.4% year-over-year, with strong growth in water conservancy and clean energy.