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manufactured by CRRC, began service in the first half on the Beijing- Shanghai high- speed line.

Revenue from the Chinese mainland and overseas markets plunged 6 percent and 4.5 percent, respectively, according to the statement.

The slumps highlight the uncertainties that train equipment suppliers will face in the near future, as the group, which was formed in June 2015 through a merger of two top trainmakers ( China North Railway and China South Railway) has faced overcapacity in its rail transit sector and a slowdown in the country’s domestic railway market, news website thepaper. cn reported over the weekend, citing industry experts.

CRRC hopes to optimize its product structure to cope with “structural adjustment in market demand.”

But the company noted that China’s investment in the railway sector is expected to exceed 3.5 trillion yuan by 2020, with investment in railway equipment predicted to reach 500 billion yuan.

CRRC also stressed its capacity to explore overseas markets. “CRRC’s products have been exported to 102 countries and regions. China’s high- speed railways are becoming the calling cards of China’s high- end equipment,” said the statement.

In the first half, CRRC received orders for subway and heavy rail cars from Boston, Los Angeles, and Philadelphia. Exports to Iran, Pakistan, Thailand and Argentina are also under way, according to the statement.

The Shanghai- listed company’s shares closed at 9.91 yuan on Friday, up 0.92 percent from the opening.