Jul. 17, 2012 (China Knowledge) - China Railway Erju Co Ltd<600528
>, a subsidiary of China Railway Group Ltd<601390
>, announced yesterday that it expected its net profit to plunge about 70% YoY to RMB 120 million in the first half of this year.
In the first six months of 2011, the company's net profit was RMB 395.57 million.
China Railway Erju said the sharp decrease in net profit was a result of a significant decline in revenue from construction business amid slowing railway investment.
The company said earlier this month that it won the bid for 87 projects worth a total of RMB 15.73 billion in the first half of this year, of which only RMB 4.66 million or 0.03% was for railway projects.
From January to June, China's fixed-asset investment in the railway sector decreased by RMB 100.37 billion or 36.1% YoY to RMB 177.75 billion, including RMB 148.71 billion investment in infrastructure construction.