Daqin Railway (601006) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached RMB 18.57 billion, up 4.32% year-over-year, while net profit attributable to shareholders fell 7.26% to RMB 2.38 billion.

• Operating cash flow turned positive at RMB 694.6 million, compared to a negative RMB 1.69 billion in Q1 2025.

• The company repurchased 161.55 million shares, representing 0.80% of total share capital, at a total cost of RMB 846 million.

Financial highlights

• Total assets at quarter-end were RMB 211.41 billion, down 0.19% from year-end 2025.

• Net assets attributable to shareholders increased 1.18% to RMB 166.22 billion.

• Basic and diluted EPS were both RMB 0.12, down from RMB 0.13 year-over-year.

• Gross margin declined as operating costs rose faster than revenue.

Outlook and guidance

• Management highlighted ongoing cost pressures and a focus on operational efficiency.

• Continued investment in infrastructure and asset upgrades is planned.