The Ministry Of Railways Of China Earned 15 Million Yuan
On July 14th, the chinabond published the financial report of the Ministry of Railways of China in the year 0f 2010 audited by the China Audit Asia Pacific Certified Public Accounts Co., Ltd. According to the form published by the Ministry of Railways of China, it has earned a profit of 15million yuan RMB in the year of 2010 after it has paid for the tax. During all the past three years of 2008, 2009, and 2010, there has been an increase in the overall income of the Ministry of Railways of China, and the profit made from the passenger transport also shows the tendency to increase. The financial report also conveys the concrete number of income that it has eared in these three years. In 2010, the comprehensive income was 685.7 billion Yuan; in 2009, the income was 552.17 billion Yuan and in the year 2008, it was 533.38 billion Yuan. According to the overall income statement, the comprehensive income was earned from freight transport, passenger transport, and transport of other articles as well as income from other channels. Among the whole cake, the income from passenger transport, estimated as 134.49 billion Yuan, takes a portion of 19.6 percent.
However, the financial prospect is not so optimistic at all. As the pure profit earned by the Ministry has reached to 2.74 billion Yuan in the year of 2009, thus compared to it, the profit, 15 million Yuan earned in the year of 2010, has decreased by 99.45 percent. At the end of April of 2011, the Financial Department issued The Main Financial and Operating Statistics Report of the Ministry of Railways of China in the First Quarter in 2011, the loss in the first quarter reached 3.76 billion Yuan and the Ministry of Railways of China later attributed the loss to the increase of the price of essential facilities such as the diesel fuel, steel products, accessories, raw materials for reparation etc.
Some experts maintain that operating cash flow is merely enough to cover the principal and interest that the ministry burdens. It is estimated that by the end of the year 2011, the gross debt that the Ministry of Railways of China has will reach 1983.6 billion Yuan and the asset-liability ratio will be 58.24 percent. Thus, there is still much left to do as long as the railway wants to earn a large profit in the harsh market competition.
However, the financial prospect is not so optimistic at all. As the pure profit earned by the Ministry has reached to 2.74 billion Yuan in the year of 2009, thus compared to it, the profit, 15 million Yuan earned in the year of 2010, has decreased by 99.45 percent. At the end of April of 2011, the Financial Department issued The Main Financial and Operating Statistics Report of the Ministry of Railways of China in the First Quarter in 2011, the loss in the first quarter reached 3.76 billion Yuan and the Ministry of Railways of China later attributed the loss to the increase of the price of essential facilities such as the diesel fuel, steel products, accessories, raw materials for reparation etc.
Some experts maintain that operating cash flow is merely enough to cover the principal and interest that the ministry burdens. It is estimated that by the end of the year 2011, the gross debt that the Ministry of Railways of China has will reach 1983.6 billion Yuan and the asset-liability ratio will be 58.24 percent. Thus, there is still much left to do as long as the railway wants to earn a large profit in the harsh market competition.
