The China Railway Corp. saw its profit after tax increase to 12.42% year on year in 2018, reaching a record high level of 2.045 billion yuan (US$303.56 million).

Revenue for the year was 1.1 trillion yuan, up 7.89% year on year, according to an official statement.  Passenger revenue climbed 11.64% to 357 billion yuan, and freight revenue increased by 11.46% to 353.2 billion yuan.

The Chinese railway operator also reported a net loss of 211 million yuan for the first quarter. The loss was 43.88% less than the same period last year.

The government will provide a subsidy to China Railway in Q4, as the public transport firm has contributed to China’s public welfare, an unnamed source from the China Railway was quoted as saying in a Caixin report.

The subsidy enables the company to report a positive profit each year, the source said.