Energy Insider: China Railway First-Half Profit Falls Over 10%

Published: Sep. 1, 2025 10:00 a.m. GMT+8

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China State Railway first-half profit falls over 10%

China State Railway Group Co. Ltd. reported a 1.1% year-on-year increase in revenue to 586 billion yuan ($81.1 billion) for the first half of the year, but its net profit fell 10.7%. Both passenger and freight volumes continued to grow in the first half, though the pace of growth slowed compared to the same period last year. Notably, rail services to other Asian countries saw double-digit growth for the sixth consecutive month, surpassing China-Europe services in both the number of trains and containers shipped.

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China State Railway posted H1 2025 revenue of 586 billion yuan (+1.1% YoY) but net profit fell 10.7%; overseas rail services grew strongly.
China’s major state-owned airlines stayed unprofitable, with a combined H1 loss of about 4.8 billion yuan, though losses narrowed year-on-year.
Leading construction machinery firms saw robust H1 growth driven by overseas demand; overall machinery exports rose 9.4% to $28.3 billion.

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Who’s Who

China State Railway Group Co. Ltd.: China State Railway Group Co. Ltd. saw its first-half revenue increase by 1.1% year-on-year to 586 billion yuan ($81.1 billion). However, its net profit declined by 10.7%. Passenger and freight volumes continued to grow, albeit at a slower pace. Notably, rail services to other Asian countries experienced double-digit growth for the sixth consecutive month.

Air China: Air China, one of China's "Big Three" state-owned airlines, continued to be unprofitable in the first half of 2025. Among the three major state-owned carriers, Air China recorded the largest loss, contributing to a cumulative loss of approximately 4.8 billion yuan for the group despite a year-on-year reduction in losses.

China Southern Airlines: China Southern Airlines, one of China's "Big Three" state-owned airlines, continued to be unprofitable in the first half of 2025. The airline's losses widened during this period. The three major state-owned carriers collectively posted a loss of approximately 4.8 billion yuan, a reduction from the previous year.

China Eastern Airlines: China Eastern Airlines is one of China's "Big Three" state-owned airlines. In the first half of 2025, it remained unprofitable, but it narrowed its losses more than Air China or China Southern Airlines. The company is part of an industry experiencing intense competition, with state-owned carriers generally underperforming private ones.

XCMG Construction Machinery Co. Ltd.: XCMG Construction Machinery Co. Ltd. is one of China's largest construction machinery manufacturers. In the first half of 2025, the company reported revenues of 54.8 billion yuan and a net profit of 4.4 billion yuan. These figures represent an 8% and 16.6% year-on-year increase, respectively, driven by strong performance in overseas markets.

Sany Heavy Industry Co. Ltd.: In the first half of 2025, Sany Heavy Industry Co. Ltd. recorded revenues of 44.5 billion yuan, marking a 15% year-on-year increase. Its net profit surged by 46% to 5.2 billion yuan. Notably, overseas revenue constituted a significant portion of its total, accounting for 60.3%. This strong performance highlights the company's success in leveraging international markets to drive growth.

Zoomlion Heavy Industry Science and Technology Co. Ltd.: Zoomlion Heavy Industry Science and Technology Co. Ltd. saw substantial growth in its overseas business, with first-half overseas revenue reaching 13.8 billion yuan. This represents a 14.7% increase from the previous year. This growth contributed to strong first-half earnings for the company.

China Shenhua Energy Company Ltd.: China Shenhua Energy Company Ltd., the country's largest listed coal producer, reported a first-half revenue of 138.1 billion yuan, an 18.3% year-on-year decrease. Its net profit for the same period fell by 12% to 24.6 billion yuan. This decline is attributed to downward trends in domestic coal prices due to ample supply.

Yankuang Energy Group Co. Ltd.: Yankuang Energy Group Co. Ltd. is one of China's large listed coal companies. In the first half of the year, it experienced a 20% to 30% decline in net profit due to falling domestic coal prices and ample supply.

China Coal Energy Co. Ltd.: China Coal Energy Co. Ltd. experienced a significant decline in net profit during the first half of the year. This decrease was between 20% and 30%, largely attributed to downward trends in domestic coal prices resulting from ample supply.

Shaanxi Coal Industry Co. Ltd.: In the first half of the year, Shaanxi Coal Industry Co. Ltd. experienced a net profit decline of 20% to 30%. This mirrors the trend across several large listed coal companies, attributed to downward pressure on domestic coal prices caused by ample supply.

China National Offshore Oil Corp.: Zhou Xinhuai, formerly the president of China National Offshore Oil Corp. (CNOOC) and a long-time expert in marine oil and gas exploration, has been appointed as the new president of China National Petroleum Corp. (CNPC).

China National Petroleum Corp.: Zhou Xinhuai, formerly president of China National Offshore Oil Corp. (CNOOC), has been appointed president of China National Petroleum Corp. (CNPC). The position had been vacant for over two months. Zhou is an expert in marine oil and gas exploration, with nearly 30 years of experience at CNOOC.

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