Cat Linh–Ha Dong metro line gets profit

June 25, 2024 2:46 PM GMT+7

VGP - The Ha Noi Railway Company Limited (Ha Noi Metro), the operator of the Cat Linh – Ha Dong urban metro line, announced that in 2023, the company made a profit of over VND13 billion (US$510,730), nearly six times more than the previous year.

Cat Linh–Ha Dong metro line gets profit- Ảnh 1.

Illustration photo

This marks the second consecutive year the company has reported a positive profit after seven years of losses.

The company's latest audited financial statements showed that the company's revenue in 2023 reached over VND515 billion (US$20.2 million), an increase of nearly 7 percent compared to 2022. Ticket sales accounted for approximately VND74 billion (US$2.9 million), a 12.5 percent increase, with the remainder coming from subsidies.

The cost of goods sold increased more than revenue, causing the gross profit for 2023 to be halved to VND7.8 billion. Consequently, the gross profit margin fell to around 1.5 percent.

Financial income surged 12.7 times to nearly VND26.6 billion (US$1.04 million), all of which came from interest on deposits as the company had over VND685 billion (US$26.9 million) in idle funds in the bank. Additionally, the company completely cut loan interest expenses, so no financial costs were recorded during the period.

This year, the company aims to transport nearly 11 million passengers and record total revenue of over VND529 billion (US$20.7 million), an increase of about 3 percent compared to 2023.

The company plans to make profit for the third consecutive year, with a target of over VND13.4 billion (US$526,540).

In addition to continuing to develop and operate the existing urban railway line, the company targets to establish the organization and personnel needed to operate the Nhon – Ha Noi Station metro line, including trial operations, management plans, ticket pricing, and subsidy policies for this project.

This urban metro line is more than 13km long and has 12 stations and 13 trains. Each train, whose designed speed is 80 km per hour, has four carriages capable of carrying over 900 passengers.

Currently, ticket prices range from VND 8,000 for a single ride to VND15,000 for the entire route. A daily pass costs 30,000 VND per ticket, and a monthly pass costs VND 200,000./.

Khanh Phuong