Apr. 5, 2012 (China Knowledge) - China Railway Erju Co Ltd<600528
>, a subsidiary of China Railway Group Ltd<601390
>, announced yesterday that it expected net profit to plunge about 70% year on year in the first quarter of this year.
In the first three months of 2011, the Shanghai-listed
company booked a net profit of RMB 181.52 million, and earnings per share were RMB 0.12.
The company said the significant decrease in net profit in the first quarter was due to a slowdown in the construction of high-speed railways.
China Railway Erju last month reported a net profit of RMB 523 million for 2011, 46% less than in the previous year. Operating revenue rose 9% year on year to RMB 59.52 billion last year.
In 2012, the company aims to sign RMB 60.4 billion of new orders, more than the RMB 51.72 billion signed in 2011.