(Yicai Global) Jan. 2 -- State-owned railroad operator China Railway Corp. expects revenue to increase more than 7 percent this year and plans to reduce fixed asset spending.

Revenue is forecast to reach CNY746 billion (USD115 billion) in 2018, China News Service reported, citing General Manager Lu Dongfu who spoke at a press conference yesterday. Operating income from diversified services may reach CNY320 billion.

The Beijing-based company is targeting fixed asset investment at CNY732 billion, down from the CNY801 billion it spent last year and below a CNY800 billion level it set in 2014.

As of the end of last year, the total length of China's railroads reached 127,000 kilometers after 3,038 kilometers were added in 2017. CRC will lay another 4,000 kilometers of track this year, of which 3,500 will be high-speed lines, the report said. CRC aims to serve 3.25 billion passengers and handle 3.02 tons of freight.

Revenue jumped 17 percent to CNY696 billion for the year ended Dec. 31, 2017 thanks to a large gain in operating income. Income from non-core businesses jumped 14 percent CNY284 billion.