China Railway Construction Corp. Ltd. (01186.HK) reported its net profit fell 14.7 percent in the first quarter from a year earlier, as the state-owned infrastructure firm contended with a significant drop in revenue.
The company’s board and senior management affirmed the truthfulness, accuracy and completeness of the quarterly financial information, according to the announcement released in Hong Kong and Shanghai.
For the three months ended March 31, net profit amounted to RMB 4.392 billion, down from the prior year. Revenue for the quarter fell 9.8 percent year-over-year to RMB 231.582 billion. Earnings per share were RMB 0.28, according to the filing prepared under PRC Generally Accepted Accounting Principles.
The sharp decline in both revenue and profit may heighten investor concerns about a potential slowdown in China’s vast infrastructure and construction sector. Shares of China Railway Construction were up 0.2 percent in Hong Kong trading ahead of the results.
The results from one of China's largest engineering contractors serve as a barometer for the health of the domestic economy and government-led infrastructure spending. Investors will watch for the company's semi-annual results later in the year for further signs of a recovery or continued weakness.
This article is for informational purposes only and does not constitute investment advice.
