Canggang Railway posts strong profit growth in first half of 2025

Canggang Railway Limited reported a profit of RMB30,751,000 for the six months ended 30 June 2025, an 18.7% increase from RMB25,902,000 in the same period of 2024. Revenue remained relatively stable at RMB131,704,000 (2024: RMB132,051,000), with a slight decrease in rail freight transportation revenue offset by growth in ancillary services. Operating expenses saw a 2.8% reduction to RMB88,200,000, attributed to cost reduction and efficiency improvement policies.

The company's net profit margin strengthened from 19.6% in 2024 to 23.3% in 2025. Other income increased by 20.1% to RMB11,071,000, primarily due to fair value gains on financial assets. Finance costs decreased by 12.8% to RMB13,900,000, reflecting a fall in the average loan balance.

As of 30 June 2025, net current assets stood at RMB73,288,000. Capital commitments for property, plant, and equipment amounted to RMB70,848,000, up from RMB61,163,000 in December 2024. The gearing ratio increased to 66.9% (2024: 64.7%) due to higher loan balances. No interim dividend was recommended for the period.