Core Viewpoint - China Railway Construction Corporation (CRCC) has completed the issuance of its 2022 technology innovation perpetual bonds aimed at professional investors, totaling RMB 3 billion with a coupon rate of 3.95% for the first period [1] Summary by Relevant Sections Bond Issuance - The total issuance amount of the bonds is RMB 30 billion [1] - The bonds are referred to as "铁建YK01" with the code "138759" [1] Terms and Conditions - The bonds have a re-pricing cycle of three years, with the issuer having the option to extend the bonds at the end of each cycle [1] - The company has decided not to exercise the extension option and will fully redeem the bonds on December 21, 2025 [1]

Core Points - China Railway Construction Corporation (CRCC) has completed the issuance of its 2022 technology innovation perpetual bonds aimed at professional investors, with a total issuance amount of RMB 3 billion [1] - The bonds, referred to as "铁建YK01" with code "138759", have a coupon rate of 3.95% for the first interest period [1] - The company has decided not to exercise its option to extend the bond term, committing to full repayment of the bonds on December 21, 2025 [1] Summary by Sections - **Bond Issuance**: CRCC issued a total of RMB 3 billion in technology innovation perpetual bonds on December 21, 2022 [1] - **Interest Rate**: The coupon rate for the first interest period is set at 3.95% [1] - **Repayment Decision**: The company will not exercise the renewal option and will fully repay the bonds at the end of the first interest period on December 21, 2025 [1]

海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而作出。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 茲 載 列 中 國 鐵 建 股 份 有 限 公 司（「本公司」）在 上 海 證 券 交 易 所 網 站 刊 登 的「中 國鐵建股份有限公司2022年面向專業投資者公開發行科技創新可續期 公 司 債 券（第 一 期）（品 種 一）不 行 使 續 期 選 擇 權 的 公 告」，僅 供 參 閱。 承董事會命 中国铁建股份有限公司 2022 年面向专业投资者公开 发行科技创新可续期公司债券（第一期）（品种一） 不行使续期选择权的公告 本公司全体董事或具有同等职责的人员保证本公告内容不存在任何虚假记 载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担相应 的法律责任。 中國鐵建股份有限公司 董事長 戴和根 中國‧北京 2025年11月10日 於 ...

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Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering industry [11]. Core Insights - In September, central enterprise orders improved, and the decline in investment narrowed. The manufacturing PMI fell significantly in October, indicating a marginal weakening in industry prosperity, while the construction PMI slightly decreased, aligning with seasonal trends [6][20]. - Fixed asset investment in September was 4.5 trillion yuan, down 7.1% year-on-year, with a cumulative fixed asset investment of 37.2 trillion yuan for the year, a decrease of 0.5% year-on-year. Narrowly defined infrastructure investment showed a smaller decline compared to previous months [7][25]. - The physical workload showed improvement in October, with cement output declining at a slower rate, and cement dispatch volumes increased marginally [8][50]. - Project funding is being prioritized, with a funding rate of 59.7% for construction sites as of October 28, showing a slight week-on-week increase [9][57]. Summary by Sections Investment & Orders - Central enterprise orders improved in September, with most central enterprises showing positive growth in domestic orders. Notably, China Chemical and China Railway Construction saw significant growth rates of 18.11% and 9.38%, respectively [7][42][44]. - The overall order growth for major construction central enterprises in Q3 was 5.02% year-on-year, indicating a positive trend in both domestic and overseas markets [42][44]. Physical Workload - Cement production saw a year-on-year decline of 5.2% from January to September, with a more pronounced drop of 8.6% in September alone. However, cement dispatch volumes showed a week-on-week increase of 8.0% in late October [8][50]. Project Funding - The funding rate for construction projects was reported at 59.7%, with non-residential projects at 61.15% and residential projects at 52.81% as of late October. The issuance of special bonds reached 39.646 billion yuan year-to-date, with a 90% completion rate [9][59].

Core Points - The second assembly line for Airbus A320 series aircraft in Tianjin, constructed by China Railway Construction Bridge Bureau, has officially commenced production, with the first aircraft assembly preparations underway and full operations expected by early 2026 [1] - The new assembly line covers an area of 308,000 square meters, featuring 13 individual buildings, 17 parking positions, and 6 delivery positions for A320 series aircraft, with the largest building (Building 209) occupying 43,000 square meters and capable of assembling 5 aircraft simultaneously [1] - The domestic material utilization rate for this project has increased to 80%, significantly shortening procurement cycles and providing critical support for project acceleration [1] Technical Aspects - Building 209 employs a large-span steel truss structure with a span of 64 meters, length of 315 meters, and height of 31 meters, using approximately 6,500 tons of steel [2] - The project includes a high-precision crane that requires installation accuracy within 20 millimeters, necessitating collaboration with Tianjin University of Civil Engineering and Technology to overcome technical challenges [2] - The assembly line's ground requirements are stringent, with a maximum height difference of 5 millimeters within a 6-meter range, and innovative techniques such as large-area radiant heating concrete technology and laser leveling are employed to meet aviation-grade standards [2] Historical Context - The Airbus Tianjin assembly line, which began operations in 2008, was the first civil aircraft production line outside of Europe and has assembled and delivered over 780 A320 series aircraft to date [2]

Group 1 - UBS believes that infrastructure is likely to continue being a key stabilizer for the Chinese economy, with growth expected to be more structural rather than broad-based due to a large base effect [1] - UBS forecasts that infrastructure fixed asset investment (excluding utilities) growth will slightly rebound from 0.4% in 2025 to 3% in 2026, with telecommunications, internet, and water conservancy sectors expected to achieve the highest year-on-year growth in 2026 [1] - UBS maintains a "Buy" rating on China Railway (00390) and China Communications Construction (01800), while holding a "Neutral" rating on China Railway Construction (01186), favoring China Railway for its mining business exposure which offers more profit and valuation leverage [1] Group 2 - UBS anticipates stronger support from the public sector, particularly the central government, in 2026 compared to 2025, with moderate fiscal expansion expected to increase funding for infrastructure [2] - Key focus areas for infrastructure development during the 14th Five-Year Plan are likely to include railways, water conservancy, transportation, energy, and urban infrastructure, with opportunities seen in AI, low-altitude economy, communication networks, and smart transportation/cities [2] - UBS has lowered profit forecasts for state-owned contractors from 2025 to 2027 to reflect lower-than-expected 2025 earnings and 2026 outlook, while raising target price-to-earnings ratios based on higher expected earnings growth per share [2]

Group 1 - UBS believes that infrastructure is likely to continue being a key stabilizer for the Chinese economy, with growth expected to be more structural rather than broad-based due to a large base effect [1] - UBS forecasts that infrastructure fixed asset investment (excluding utilities) growth will slightly rebound from 0.4% in 2025 to 3% in 2026, with the telecommunications, internet, and water conservancy sectors expected to achieve the highest year-on-year growth in 2026 [1] - UBS maintains a "Buy" rating on China Railway (00390) and China Communications Construction (01800), and a "Neutral" rating on China Railway Construction (01186), favoring China Railway due to its mining business exposure which offers more profit and valuation leverage [1] Group 2 - UBS anticipates stronger support from the public sector, particularly the central government, in 2026 compared to 2025, with moderate fiscal expansion expected to increase funding for infrastructure [2] - Key focus areas for infrastructure development during the 14th Five-Year Plan are likely to include railways, water conservancy, transportation, energy, and urban infrastructure, with opportunities seen in AI, low-altitude economy, communication networks, and smart transportation/cities [2] - UBS has lowered profit forecasts for state-owned contractors from 2025 to 2027 to reflect lower-than-expected 2025 earnings and 2026 outlook, while raising target price-to-earnings ratios based on higher expected earnings growth per share [2]

Group 1 - The company's net profit attributable to shareholders rebounded in Q3 2025, achieving a revenue of 239.2 billion yuan, down 1.2% year-on-year, and a net profit of 4.11 billion yuan, up 8.3% year-on-year. The new contract amount signed in Q3 was 462.6 billion yuan, with a year-on-year increase of 24% [1] - The company's gross profit margin in Q3 2025 was 8.63%, a decrease of 0.61 percentage points year-on-year, while the net profit margin attributable to shareholders was 1.72%, an increase of 0.15 percentage points year-on-year. The decrease in gross profit margin was attributed to pressure from downstream demand [1] - The company maintained a cost control strategy despite increasing financial pressures, which affected overall profitability recovery. The operating expense ratio in Q3 was 6.07%, down 0.38 percentage points year-on-year, leading to a net margin of 2.56%, down 0.23 percentage points year-on-year [1] Group 2 - The scale of receivables increased, with accounts receivable and notes rising by 3.8 billion yuan compared to the end of Q2, and contract assets increasing by 9.1 billion yuan. The growth rate of these assets showed a significant narrowing both year-on-year and quarter-on-quarter [2] - The company's operating cash flow showed a net outflow of 300 million yuan in Q3, which was 7 billion yuan less than the same period last year, indicating an improvement in cash flow management [2] - The company maintains its profit forecast and "outperform the market" rating, projecting net profits attributable to shareholders for the next three years to be 22.1 billion, 22.6 billion, and 22.6 billion yuan, with corresponding earnings per share of 1.63, 1.66, and 1.67 yuan, reflecting a current PE ratio of 4.9, 4.8, and 4.8 times [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [4][15][20] Core Views - The company's net profit attributable to shareholders increased in the third quarter of 2025, achieving a net profit of 4.11 billion yuan, up 8.3% year-on-year, despite a slight decline in revenue [1][7] - The company signed new contracts worth 462.6 billion yuan in the third quarter, representing a year-on-year increase of 24% [1][7] - The overall profitability and asset quality improvement face challenges due to the ongoing downturn in the industry, but there is potential for recovery as downstream demand stabilizes [15] Summary by Sections Financial Performance - In Q3 2025, the company reported revenue of 239.2 billion yuan, a decrease of 1.2% year-on-year, and a net profit of 4.11 billion yuan, an increase of 8.3% year-on-year [1][7] - For the first three quarters of 2025, the company achieved revenue of 728.4 billion yuan, down 3.9% year-on-year, and a net profit of 14.8 billion yuan, down 5.6% year-on-year [1][7] Profitability Metrics - The gross profit margin for Q3 2025 was 8.63%, down 0.61 percentage points from the previous year, while the net profit margin increased to 1.72%, up 0.15 percentage points [9] - The company’s expense ratio decreased to 6.07%, down 0.38 percentage points year-on-year, but the margin after expenses was 2.56%, down 0.23 percentage points [9] Cash Flow and Asset Management - The company’s accounts receivable and contract assets increased by 3.8 billion yuan and 9.1 billion yuan respectively in Q3 2025, with growth rates showing significant narrowing [11] - Operating cash flow showed a net outflow of 300 million yuan, which is 7 billion yuan less than the same period last year [11] Future Outlook - The company maintains its profit forecast, projecting net profits of 22.1 billion yuan for 2025, with earnings per share of 1.63 yuan, corresponding to a PE ratio of 4.9 [15][18] - The expectation is that as downstream demand stabilizes, the company’s revenue, profit, and cash flow will improve [15]