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CRRC has Launched the First Permanent Magnetic Subway in Xiamen
COVID-19 and China
Image Credit: Alexandr Bormotin / Unsplash

The launch of No.2 Xiamen Subway implies the new generation of the permanent magnetic subway in Xiamen. Specifically, the subway was made by CRRC Tangshan (中车唐山公司), and the permanent magnetic levitation was manufactured by Zhuzhou CRRC Times Electric (中车时代电气). CRRC Tangshan and Zhuzhou CRRC Times Electric are CRRC’s subsidiary corporations, with shareholding ratios of 100% and 53.19% separately.

CRRC has been slightly affected by the COVID-19, as there was a 15.81% decrease in its operating incomes in the first quarter of 2020 compared with last year. This was due to a significant reduction of about 35.27% in the railway equipment sector. However, the urban infrastructure sector has increased by around 30.02%, implying the core of CRRC’s revenues is being gradually transferred to the infrastructure part.

Before COVID-19, CRRC showed an increasing trend in its operating income from 2018 to 2019, a 4.53% rise from CNY 219 billion to CNY 229 billion. Thanks to the firm’s one-stop integration and completed industrial chains, it can conduct manufacturing through its subsidiaries, saving costs and improving efficiency. For example, CRRC Tangshan and Zhuzhou CRRC Times Electric contributed 7.11% and 7.88% to its revenues in 2019.

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