2024 年度報告 2024 年度報告 重要提示 公司擬以實施權益分派股權登記日（具體日期將在權益分派實施公告中明確）登記的總股本為基數，向全體股東派發現金紅利。截至2024 年12月31日，公司總股本為28,698,864,088股，以此為基數按每股派發人民幣0.21元（含稅）的現金紅利計算，合計擬派發現金紅利人民 幣60.27億元（含稅）。如在公司利潤分配方案公告披露之日起至實施權益分派股權登記日期間，因可轉債轉股╱回購股份╱股權激勵授 予股份回購註銷╱重大資產重組股份回購註銷等致使公司總股本發生變動的，公司擬維持分配總額不變，相應調整每股分配比例。如 後續總股本發生變化，將另行公告具體調整情況。該利潤分配預案尚需經公司2024年年度股東會審議通過。 1. 本公司董事會、監事會及董事、監事、高級管理人員保證年度報告內容的真實性、準確性、完整性，不存在虛假記載、誤導性陳述或 重大遺漏，並承擔個別和連帶的法律責任。 2. 本報告已經公司第三屆董事會第三十二次會議審議通過，公司全體董事出席董事會會議。 3. 畢馬威華振會計師事務所（特殊普通合夥）根據中國註冊會計師審計準則為本公司根據中國企業會計準則編製的財務報 ...

Financial Performance - The company's operating revenue for 2024 reached RMB 246.46 billion, an increase of 5.21% compared to RMB 234.26 billion in 2023[8]. - Net profit for 2024 was RMB 15.66 billion, reflecting a growth of 7.51% from RMB 14.57 billion in 2023[8]. - The net profit attributable to shareholders of the parent company was RMB 12.39 billion, up 5.77% from RMB 11.71 billion in the previous year[8]. - Total assets increased to RMB 512.82 billion, an 8.70% rise from RMB 471.79 billion in 2023[8]. - Total liabilities rose to RMB 302.63 billion, marking a 9.94% increase from RMB 275.27 billion in 2023[8]. - Basic earnings per share for 2024 were RMB 0.43, a 4.88% increase from RMB 0.41 in 2023[8]. - The net cash flow from operating activities was RMB 27.13 billion, significantly higher than RMB 14.72 billion in 2023[10]. - Research and development expenses for 2024 amounted to RMB 15.94 billion, up from RMB 14.36 billion in 2023[10]. - The company reported a total equity of RMB 210.19 billion, which is a 6.96% increase from RMB 196.52 billion in 2023[8]. - The gross profit margin for the rail transportation equipment and its extended industries was 21.38%, with a year-on-year increase of 0.84 percentage points[42]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.21 per share, totaling approximately RMB 6.03 billion based on the total share capital of 28,698,864,088 shares[5]. - The company plans to distribute a cash dividend of RMB 0.2 per share, totaling RMB 5.74 billion, which represents 49.01% of the net profit attributable to shareholders for 2023[129]. - The company plans to distribute a cash dividend of RMB 0.21 per share, totaling RMB 6.027 billion, which represents 48.65% of the net profit attributable to shareholders for the fiscal year 2024[130][134]. - The cumulative cash dividend amount over the last three fiscal years is RMB 17.506 billion, with an average annual net profit of RMB 11.918 billion, resulting in a cash dividend ratio of 146.90%[135]. - The expected payment date for the cash dividend is on or before August 14, 2025, pending approval from the shareholders' meeting[131]. Research and Development - The company added 2,707 new patents, including 1,733 invention patents and 206 overseas patents, reflecting its commitment to innovation and technology leadership[31]. - The company employed 21,138 R&D personnel, representing 13.90% of the total workforce, with 462 holding doctoral degrees[60]. - Research and development expenses totaled RMB 16,685,588, accounting for 6.77% of total revenue, with capitalized R&D expenses making up 4.49%[59]. - The company has 569 new R&D projects in rail transit equipment and clean energy equipment for 2024, ensuring smooth progress and supporting healthy development[61]. - The company is focusing on intelligent manufacturing, industrial software, and industrial AI as key future growth areas within its digital industry strategy[19]. Market Expansion and Strategy - The company is actively expanding its international market presence in rail transportation and new industries, adhering to a "light asset, heavy benefit, sustainable" investment philosophy[22]. - In 2024, the company aims to enhance its international business, signing three DLS projects including the São Paulo Intercity North Axis Line in Brazil and winning the Dubai Metro Blue Line project[32]. - The company is committed to expanding domestic demand and promoting the integration of technological and industrial innovation[102]. - The international business strategy includes expanding overseas operations and establishing a comprehensive marketing network to increase market share[118]. - The company is focusing on the development of advanced transportation equipment, including CR450 high-speed trains and standardized metro trains[107]. Environmental and Sustainability Initiatives - The company has implemented real-time monitoring systems for wastewater and air emissions, ensuring compliance with environmental standards[195]. - In 2024, China CRRC plans to add 3 new national green factories and 5 new national green supply chain management enterprises[196]. - Four factories, including Zhuzhou and Dalian, received zero-carbon factory certification, enhancing the company's sustainability profile[196]. - The company has established a regular environmental risk warning mechanism to improve emergency response capabilities[194]. - China CRRC has increased the use of water-based paint, reaching 90% for railway freight cars and 75% for urban rail vehicles[193]. Operational Efficiency and Management - The company has established a comprehensive procurement model that combines centralized and decentralized purchasing to optimize supply chain management and reduce costs[28]. - The company’s production model is based on "production according to orders," ensuring timely delivery and minimizing inventory buildup[28]. - The company is enhancing its internal management to improve operational efficiency and reduce costs, thereby strengthening its ability to withstand policy risks[122]. - The company is committed to risk prevention and control while optimizing and integrating its financial business[20]. - The company is addressing market risks by optimizing its industrial structure and expanding new business models in response to intensified competition in the rail transit equipment market[123]. Strategic Partnerships and Collaborations - The strategic cooperation with key clients like China Railway Group is being deepened to enhance integrated service advantages[17]. - The mutual supply framework agreement with CRRC Group has annual caps of 8 billion RMB for three consecutive years ending December 31, 2024, for payments received from CRRC Group[156]. - The financial services framework agreement with CRRC Group has been renewed, effective from January 1, 2025, to December 31, 2027, following the expiration of the previous agreement on December 31, 2024[161]. - The company believes that the agreements with CRRC Group align with its interests and help reduce administrative and transportation costs[157]. - The independent non-executive directors have confirmed that the related party transactions comply with the general commercial terms and do not harm the interests of the company and minority shareholders[169]. Future Outlook and Goals - The company is focusing on high-quality development, innovation leadership, and reform empowerment as key themes for 2025, aiming to lay a solid foundation for the "15th Five-Year Plan"[14]. - The company aims to enhance its core competitiveness and value creation, focusing on high-quality development as the main theme for 2024[119]. - The strategic plan for the "14th Five-Year" period emphasizes innovation and high-quality development, aiming to establish a world-class high-end equipment manufacturer[113]. - The company is set to implement a digital transformation plan for the manufacturing sector, promoting deep integration of the digital economy with the real economy[103]. - The company aims to solidify its position as an international benchmark while continuing to drive innovation and reform by 2025[120].

Financial Performance - Operating revenue for the third quarter was RMB 62.54 billion, representing a year-on-year increase of 12.22%[4] - Net profit attributable to shareholders for the third quarter was RMB 3.04 billion, up 13.11% year-on-year[4] - The basic earnings per share for the third quarter was RMB 0.11, reflecting a 22.22% increase compared to the same period last year[4] - Total operating revenue for the first nine months of 2024 was RMB 152,582,851, compared to RMB 143,035,486 in the same period last year, resulting in an increase of RMB 9,547,365[9] - Net profit attributable to shareholders for the first three quarters of 2024 was RMB 7.24 billion, up 17.8% from RMB 6.15 billion in the same period of 2023[28] - Total profit for the first three quarters of 2024 was RMB 11.03 billion, an increase of 18.8% from RMB 9.29 billion in the same period of 2023[27] - The company reported a basic earnings per share of RMB 0.25 for the first three quarters of 2024, up from RMB 0.21 in the same period of 2023[29] Cash Flow and Liquidity - Cash flow from operating activities for the year-to-date was RMB 76.22 billion, a significant improvement from a cash outflow of RMB 39.92 billion in the same period last year[8] - The net cash flow from operating activities for the first three quarters of 2024 was RMB 7.62 billion, compared to a negative cash flow of RMB 3.99 billion in the same period of 2023[30] - Cash and cash equivalents at the end of the third quarter of 2024 amounted to RMB 35.55 billion, down from RMB 38.20 billion at the end of the third quarter of 2023[32] - The company's cash and cash equivalents decreased to RMB 48,760,864 thousand as of September 30, 2024, from RMB 55,929,833 thousand at the end of 2023, a decline of approximately 12.8%[23] - The net increase in cash and cash equivalents was -10,517,055 in 2024, compared to -6,857,810 in 2023, indicating a worsening cash position[39] Assets and Liabilities - Total assets at the end of the reporting period reached RMB 501.50 billion, an increase of 6.30% compared to the end of the previous year[4] - Total assets as of September 30, 2024, were RMB 145,761,048 million, down 9.3% from RMB 160,635,286 million at the end of 2023[34] - Total liabilities as of September 30, 2024, were RMB 44,846,036 million, a decrease of 17.8% from RMB 54,578,100 million at the end of 2023[35] - Current assets totaled RMB 19,911,693 million as of September 30, 2024, a decrease of 43.9% from RMB 35,537,305 million at the end of 2023[34] Revenue Breakdown - Railway equipment business revenue reached RMB 71,765,238, an increase of 36.69% compared to the previous year[9] - Urban rail and urban infrastructure business revenue decreased by 5.63% to RMB 28,421,291, mainly due to reduced income from urban infrastructure[10] - New industry business revenue fell by 10.40% to RMB 50,105,800, primarily due to decreased income from wind power and energy storage equipment[10] - Modern service business revenue decreased significantly by 49.03% to RMB 2,290,522, mainly due to a reduction in logistics and financing leasing business[11] Shareholder Information - The company’s major shareholder, China CNR Corporation Limited, holds 50.83% of the shares[11] - The total number of ordinary shareholders at the end of the reporting period was 539,942[13] - As of April 29, 2024, CRRC Group holds a total of 14,765,441,250 shares, accounting for approximately 51.45% of the company's total issued share capital[19] Research and Development - Research and development expenses increased to RMB 9.70 billion, representing a 21.6% rise from RMB 7.98 billion in the previous year[27] - The company reported a significant increase in R&D expenses, totaling RMB 322,670 million for the first three quarters of 2024, compared to RMB 127,962 million in the same period of 2023[37] Other Financial Metrics - Investment income increased by 40.50% year-on-year, driven by higher returns from joint ventures[8] - Non-operating income for the third quarter included government subsidies amounting to RMB 400.92 million, contributing to overall profitability[5] - The weighted average return on equity for the reporting period was 1.88%, an increase of 0.14 percentage points compared to the previous year[4] - The company experienced a 43.83% increase in credit impairment losses, mainly due to higher provisions for accounts receivable[8] Management Changes - The company appointed Ma Yunshuang as the president on February 22, 2024, and several vice presidents were also appointed on the same day[21] Future Outlook - The company will implement new accounting standards starting in 2024, which may affect the financial statements[40]

Financial Performance - The company reported a total revenue of 28,698,864,088 RMB for the first half of 2024, reflecting a stable growth trend in the rail transportation equipment market[8]. - In the first half of 2024, the company achieved operating revenue of 90.04 billion RMB, an increase of 3.13% year-on-year, and a net profit attributable to shareholders of 4.20 billion RMB, up 21.40%[28]. - The operating cost increased by 0.62% year-on-year to 70.76 billion RMB, primarily due to the growth in railway equipment revenue[30]. - The railway equipment business revenue grew by 46.99% year-on-year, contributing significantly to the overall revenue increase[33]. - The company reported a stable operational performance with over 2 million kilometers of safe operation for the China-Laos railway, transporting over 5.5 million passengers, demonstrating positive social and economic benefits[26]. - The company signed new orders totaling approximately 140.1 billion RMB during the reporting period, with overseas orders accounting for about 29.8 billion RMB[33]. - The company’s cash flow from operating activities showed a significant improvement, with a net cash inflow of 1.85 billion RMB compared to a net outflow in the previous year[29]. Market and Business Strategy - The company is actively deepening strategic cooperation with key clients such as the China National Railway Group, enhancing its integrated advantages in manufacturing, repair, and service[11]. - The global economic outlook is improving, with a stable growth trend in market demand for rail transportation equipment driven by the dual carbon strategy and green energy transition[9]. - The company is transitioning towards a "manufacturing + service" model, optimizing its business structure to provide more valuable products and services[9]. - The urban rail and infrastructure business focuses on urban rail vehicles, transportation planning, and electromechanical system integration, aiming to enhance competitiveness and expand both domestic and international markets[13]. - The international business strategy includes expanding into international markets for rail transportation and new industries, emphasizing local manufacturing and procurement[16]. - The company is focusing on the development of new energy vehicles and related components as part of its emerging industry strategy[19]. Innovation and Technology - The company emphasizes the importance of technological innovation, product innovation, service innovation, and business model innovation to meet advanced and intelligent green development needs in the railway sector[11]. - The company is advancing digitalization, intelligence, and sustainability in its product and system development, enhancing lifecycle solution capabilities[13]. - The company achieved significant technological advancements, with the "Fuxing" high-speed train project winning the National Science and Technology Progress Award, and seven new energy locomotives launched globally, achieving low-carbon and high-efficiency operations[25]. - The company has launched a new flexible green hydrogen production system, marking a significant advancement in hydrogen energy applications in rail transit[25]. - The company continues to enhance its research and development capabilities, with 11 national-level R&D institutions and 22 nationally recognized enterprise technology centers[25]. Risks and Challenges - The report includes a risk statement highlighting strategic, market, product quality, exchange rate, overseas operation, and industry structure adjustment risks[2]. - The company faces strategic risks due to increasing user demands for higher efficiency and comprehensive solutions in the railway transport sector[57]. - Market competition has intensified with the entry of social capital into the rail transport equipment sector, leading to structural adjustments in market demand[58]. - The company is exposed to exchange rate risks due to increased international operations, which may lead to foreign exchange losses[60]. - Structural overcapacity issues persist in the rail transit sector, despite ongoing business restructuring and industrial adjustments, leading to challenges in integration and synergy[62]. Corporate Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[2]. - The company has committed to avoiding competition with Times Electric, ensuring that it will grant purchase options and priority purchase rights to Times Electric for any competitive services it engages in[71]. - The commitment to maintain independence from CRRC has been reaffirmed, ensuring that the company will not interfere with CRRC's operations or decision-making processes[73]. - The company has pledged to regulate related party transactions, minimizing or avoiding transactions with CRRC and ensuring fair pricing based on independent third-party standards[73]. - The company strictly adhered to corporate governance regulations, enhancing operational management levels during the reporting period[68]. Shareholder Information - The total number of ordinary shareholders reached 575,311, with 573,176 A-share holders and 2,135 H-share holders as of the reporting period[85]. - The top five customers accounted for 54.33% of total sales, with the largest customer, China National Railway Group, contributing 47.54% of total sales[35]. - The top ten shareholders hold a total of 14,587,578,250 shares, representing 50.83% of the total shares[86]. - CRRC Group holds a total of 14,765,441,250 shares, accounting for approximately 51.45% of the company's total issued shares[88]. Financial Position and Assets - The total assets as of June 30, 2024, are RMB 479,499,893,000, an increase from RMB 471,791,735,000 as of December 31, 2023[95]. - The total liabilities as of June 30, 2024, amounted to RMB 279,593,282 thousand, compared to RMB 275,268,420 thousand at the end of 2023, reflecting a slight increase[96]. - The company’s cash and cash equivalents decreased to RMB 4,307,176 thousand as of June 30, 2024, down from RMB 16,888,480 thousand at the end of 2023[97]. - The company has established a comprehensive procurement model, ensuring timely supply of production materials and reducing procurement costs through centralized purchasing on the "CRRC Purchase" e-commerce platform[22]. Research and Development - Research and development expenses amounted to approximately 6.04 billion RMB, representing 6.70% of the operating revenue for the period[37]. - The company has committed to enhancing product quality and safety standards to mitigate risks associated with product quality and safety concerns[59]. - The company is actively integrating resources and promoting the development of "product+" and "system+" business models[14]. Mergers and Acquisitions - The company aims to enhance its market position through strategic mergers and acquisitions, leveraging its combined assets and capabilities[106]. - The company has undergone a merger with China North Locomotive and Rolling Stock Industry Group, enhancing its market position[107].

Financial Performance - The company's operating revenue for the first half of 2024 reached RMB 90,039,351, an increase of 3.13% compared to RMB 87,303,227 in the same period last year[8]. - Net profit attributable to shareholders for the first half of 2024 was RMB 4,200,827, representing a 21.40% increase from RMB 3,460,359 in the previous year[8]. - The net profit from non-recurring gains and losses was RMB 3,359,942, up 30.08% from RMB 2,583,072 in the same period last year[8]. - Basic earnings per share for the first half of 2024 were RMB 0.15, reflecting a 25.00% increase from RMB 0.12 in the same period last year[9]. - The total comprehensive income attributable to the parent company was RMB 5,542,433 thousand, compared to RMB 4,803,057 thousand in the first half of 2023, reflecting a year-on-year increase of 15.4%[98]. - The company reported a total profit of RMB 6,618,641 thousand, which is a 23.9% increase compared to RMB 5,337,073 thousand in the first half of 2023[97]. Cash Flow and Financial Health - The net cash flow from operating activities was RMB 1,845,139, a significant recovery from a negative cash flow of RMB -14,780,023 in the previous year[8]. - The cash received from sales of goods and services for the first half of 2024 was CNY 108,492,044 thousand, an increase from CNY 82,462,250 thousand in the same period of 2023, representing a growth of approximately 31.6%[100]. - The total cash outflow from operating activities in the first half of 2024 was CNY 110,834,398 thousand, while the cash inflow was CNY 112,679,537 thousand, resulting in a positive cash flow from operations[100]. - The company’s total cash flow for the first half of 2024 showed a net increase of CNY 4,620,043 thousand, compared to a decrease of CNY 9,979,550 thousand in the first half of 2023[100]. - The company’s total liabilities decreased from CNY 47,607,566 thousand in the first half of 2023 to CNY 46,067,025 thousand in the first half of 2024, reflecting improved financial health[100]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 479,499,893, a 1.63% increase from RMB 471,791,735 at the end of the previous year[8]. - The asset-liability ratio decreased slightly from 58.35% at the beginning of the year to 58.31% as of June 30, 2024[41]. - The company had cash and cash equivalents of approximately RMB 32,485 million as of June 30, 2024, with RMB 26,414 million in RMB, RMB 2,000 million in USD, and RMB 1,925 million in EUR[48]. - The company reported a total of RMB 13,828 million in loans and notes due within one year as of June 30, 2024, down from RMB 19,016 million as of December 31, 2023, indicating a decrease of approximately 27.2%[47]. Business Segments and Market Strategy - The railway equipment segment generated revenue of CNY 41.99 billion, up 46.99% year-on-year, with a gross margin increase of 1.39 percentage points to 22.71%[29]. - The company is actively pursuing international market expansion, implementing a "localization" strategy to enhance brand influence and operational efficiency abroad[15]. - The company is committed to transforming into a "manufacturing + service" provider, optimizing its business structure to deliver more valuable products and services[10]. - The company is focusing on digitalization and intelligent solutions to enhance its lifecycle system solution capabilities in urban rail projects[12]. - The company launched 7 new energy locomotives globally, achieving low-carbon, zero-emission, and high-efficiency operations[23]. Research and Development - Research and development investment totaled approximately RMB 6.036 billion, accounting for 6.70% of total revenue during the reporting period[35]. - The company has established 11 national-level R&D institutions and 22 nationally recognized enterprise technology centers, enhancing its innovation capabilities[23]. - The company’s technology innovation model focuses on a two-level R&D management system, transitioning from single product development to technology platform-based product development[20]. Corporate Governance and Management - The company strictly adhered to corporate governance regulations and improved its governance structure during the reporting period[67]. - Several senior management personnel changes were announced, including the appointment of Ma Yunduo as President and other vice presidents[63]. - The company confirmed compliance with securities trading regulations by all directors and supervisors during the reporting period[68]. Risks and Challenges - The company faces strategic risks due to increasing user demands for higher efficiency and comprehensive solutions in the railway transport sector, necessitating timely policy research and new product development[56]. - Market competition in the rail transport equipment sector is intensifying, with increased participation from state-owned, private, and foreign enterprises, leading to structural adjustments in domestic railway freight and passenger transport[57]. - Currency exchange rate fluctuations pose risks to the company's international operations, necessitating effective risk management and hedging strategies to mitigate potential losses[59]. Shareholder Information - The total number of ordinary shareholders reached 575,311 by the end of the reporting period, with 573,176 A-share holders and 2,135 H-share holders[84]. - CRRC Group holds a total of 14,765,441,250 shares, accounting for approximately 51.45% of the company's total issued shares[87]. - The company has not conducted any buybacks or repurchases of its own securities during the reporting period[83]. Future Outlook - The company aims to enhance its market expansion strategies and invest in new technologies to drive future growth[100]. - The company plans to continue its focus on research and development of new products to maintain competitive advantage in the market[100]. - New technology initiatives are expected to contribute an additional 5% to overall revenue growth in 2024[110].

Financial Performance - The company's operating revenue for Q1 2024 was RMB 32,182,793 thousand, a decrease of 0.60% compared to the same period last year[3]. - Net profit attributable to shareholders was RMB 1,008,287 thousand, an increase of 63.86% year-on-year[3]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 667,902 thousand, up 228.08% from the previous year[3]. - The company reported a net profit of CNY 1,519,245 for Q1 2024, compared to CNY 1,045,142 in Q1 2023, reflecting a growth of 45.4%[23]. - The total comprehensive income for Q1 2024 was RMB 1,530,878 thousand, compared to RMB 1,072,572 thousand in Q1 2023, marking an increase of about 42.7%[25]. - Basic earnings per share for Q1 2024 were RMB 0.04, doubling from RMB 0.02 in Q1 2023[25]. - Operating profit for Q1 2024 increased to CNY 1,908,571, up 55.5% from CNY 1,225,827 in Q1 2023[23]. Cash Flow and Assets - The cash flow from operating activities was RMB 14,487,790 thousand, indicating a significant improvement in cash inflow compared to the previous year[3]. - Cash and cash equivalents at the end of Q1 2024 totaled RMB 56,781,149 thousand, up from RMB 40,608,487 thousand at the end of Q1 2023, reflecting an increase of approximately 39.7%[28]. - The company generated a net cash flow from operating activities of 59,113 million RMB in Q1 2024, down from 417,303 million RMB in Q1 2023[32]. - Cash and cash equivalents as of March 31, 2024, were CNY 67,551,716, up 20.8% from CNY 55,929,833 on December 31, 2023[20]. - Total assets as of March 31, 2024, amounted to RMB 170,564,904 thousand, compared to RMB 160,635,286 thousand at the end of 2023, indicating a growth of about 6.1%[29]. - The company reported cash inflows from investment activities of RMB 4,422,697 thousand in Q1 2024, down from RMB 7,970,562 thousand in Q1 2023[27]. Revenue Breakdown - The railway equipment business generated RMB 13,316,952 thousand in revenue, a 54.11% increase year-on-year, driven by higher sales of multiple train types[8]. - The urban rail and infrastructure business saw a revenue decline of 24.33%, totaling RMB 5,531,445 thousand, primarily due to reduced income from metro vehicles[8]. - New industry revenue decreased by 19.32% to RMB 12,182,861 thousand, mainly due to lower sales of wind power components and energy storage systems[9]. - The company signed new contracts worth approximately RMB 40.8 billion in Q1 2024, including about RMB 6.3 billion from international business[9]. Shareholder Information - China CNR Group holds 14,587,578,250 shares, representing 50.83% of total shares outstanding[11]. - HKSCC NOMINEES LIMITED holds 4,358,652,830 shares, accounting for 15.19% of total shares outstanding[11]. - The total number of shareholders for A-shares is 563,440, while H-shares have 2,152 registered shareholders[15]. - The top ten shareholders include several asset management plans, each holding 234,982,900 shares, which is 0.82% of total shares outstanding[14]. - The total shares held by the top ten unrestricted shareholders amount to 20,000,000,000 shares[14]. Management Changes - The company appointed Ma Yunshuang as the president on February 22, 2024, with a term until the end of the current board's tenure[17]. - The company also appointed Lin Cunzeng, Wang Fengxian, and Liu Ke'an as vice presidents on the same date[17]. - Ma Yunshuang was added to the board's strategic and nomination committees on March 19, 2024[18]. Expenses and Liabilities - Research and development expenses for Q1 2024 were CNY 2,440,065, an increase of 17.5% compared to CNY 2,077,306 in Q1 2023[23]. - Total liabilities decreased to CNY 273,531,027 from CNY 275,268,420 as of December 31, 2023[22]. - Total liabilities increased to 64,499 million RMB as of March 31, 2024, up from 54,578 million RMB at the end of 2023, reflecting a rise of approximately 18%[30]. - The total liabilities to equity ratio increased, indicating a higher leverage position as total liabilities rose faster than equity[30]. - The company reported a decrease in management expenses to 51,379 million RMB in Q1 2024 from 45,308 million RMB in Q1 2023, indicating improved cost management[31].

Financial Performance - Operating revenue for 2023 reached RMB 234.26 billion, an increase of 5.93% compared to RMB 222.94 billion in 2022[6] - Net profit for 2023 was RMB 14.57 billion, reflecting a growth of 1.52% from RMB 14.35 billion in 2022[6] - Operating profit for 2023 was RMB 16.03 billion, slightly up from RMB 15.98 billion in 2022[6] - Basic earnings per share remained stable at RMB 0.41, consistent with the previous year[6] - The net cash flow from operating activities was RMB 14.72 billion, a decrease from RMB 23.95 billion in 2022[6] - The company reported a total equity attributable to shareholders of RMB 160.97 billion, up from RMB 155.04 billion in 2022[6] - The company reported a significant increase in clean energy equipment and low-carbon transportation equipment business, contributing to rapid growth in these areas[29] - The company achieved a world record speed of 891 km/h for the CR450 train during a demonstration[30] - The company reported a total revenue of 1,014.77 million, with a year-on-year increase of 173.13 million, representing a growth of approximately 20.6%[142] Research and Development - Research and development expenses increased to RMB 14.36 billion, up 9.39% from RMB 13.13 billion in 2022[6] - The company has established 11 national-level R&D institutions and 22 nationally recognized enterprise technology centers, enhancing its innovation capabilities[30] - The company initiated 29 projects under the "Ten-Year Cultivation of Original Technology" program, focusing on advanced rail transit and clean energy products[50] - The total R&D investment for the period amounted to RMB 14,813,392 thousand, representing 6.32% of operating revenue[48] - The number of R&D personnel is 19,001, accounting for 12.31% of the total workforce[49] Business Strategy and Development - The company is focused on high-quality development, aiming to implement the "14th Five-Year Plan" goals in 2024, with a commitment to value creation and innovation[10] - The company is optimizing its business structure to transition towards a "manufacturing + service" model, enhancing its full lifecycle service system[14] - The company is actively expanding into emerging industries such as renewable energy and industrial digitization, contributing to steady business growth[19] - The company is committed to enhancing its governance structure and operational flexibility to drive further efficiency improvements[9] - The company is focused on the development of strategic emerging industries, including new energy vehicles and high-end equipment, to create new growth engines[78] Market and Competition - The railway equipment market is experiencing intensified competition with increased participation from state-owned, private, and foreign enterprises, leading to structural adjustments in market demand[95] - The company maintains its position as the largest player in the domestic railway equipment market while enhancing its global competitiveness and innovation capabilities[86] - The company is focusing on the development of smart urban rail systems and various new rail transport solutions to support urbanization efforts[87] - The company plans to leverage strategic opportunities from the "Belt and Road" initiative and national railway network construction to enhance innovation and optimize resource allocation[84] Environmental and Social Responsibility - The company has launched a carbon peak and carbon neutrality action plan, with 78 subsidiaries achieving real-time carbon data collection and monitoring[137] - The company is committed to green low-carbon development, integrating pollution reduction and carbon reduction strategies[136] - The company has publicly disclosed environmental impact assessments and pollutant discharge information as per regulatory requirements[136] - The company has implemented a strict environmental impact assessment system for construction projects, ensuring compliance before project initiation[135] Governance and Management - The company has strengthened its governance structure in accordance with relevant laws and regulations, achieving compliance with the corporate governance code[158] - The board consists of 7 members, including 3 independent non-executive directors, ensuring a balance of interests[161] - The company has established appropriate internal control procedures to ensure that related party transactions do not harm the interests of the company and minority shareholders[119] - The company has implemented policies to evaluate and improve the effectiveness of its risk management and internal control systems, ensuring risks are maintained within acceptable limits[199] Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.20 per share, totaling RMB 5.74 billion, which represents 49.01% of the net profit attributable to shareholders for the year 2023[100] - The cash dividend distribution reflects the company's commitment to actively return value to shareholders[100] - The expected payment date for the 2023 cash dividend is on or before August 14, 2024, pending shareholder approval[101] Future Outlook - The company anticipates continued economic recovery and growth in 2024, driven by high-quality development initiatives and macroeconomic adjustments[75] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[147] - The company aims to enhance the connectivity and convenience of modern urban agglomerations, integrating existing and new lines for intercity and suburban railways[81]

Financial Performance - The company's operating revenue for 2023 was RMB 234.26 billion, an increase of 5.08% compared to RMB 222.94 billion in 2022[4] - Net profit for 2023 reached RMB 14.57 billion, reflecting a growth of 1.52% from RMB 14.35 billion in the previous year[4] - The net profit attributable to shareholders of the parent company was RMB 11.71 billion, a slight increase of 0.50% from RMB 11.65 billion in 2022[4] - Total assets amounted to RMB 471.79 billion, representing a 6.71% increase from RMB 442.14 billion in 2022[4] - Total liabilities increased by 9.60% to RMB 275.27 billion, up from RMB 251.15 billion in the previous year[4] - The total equity reached RMB 196.52 billion, a growth of 2.90% compared to RMB 190.99 billion in 2022[4] - Basic earnings per share remained stable at RMB 0.41, unchanged from the previous year[4] - The company's earnings per share increased to RMB 5.61, up 3.89% from RMB 5.40 in the previous year[4] - The net cash flow from operating activities was RMB 14.72 billion in 2023, a decrease from RMB 23.95 billion in 2022[5] - Operating revenue for 2023 reached RMB 234.26 billion, an increase from RMB 222.94 billion in 2022, representing a growth of 5.94%[5] - Net profit for 2023 was RMB 14.57 billion, compared to RMB 14.35 billion in 2022, reflecting a growth of 1.49%[5] Research and Development - Research and development expenses increased to RMB 14.36 billion in 2023, up from RMB 13.13 billion in 2022, marking a rise of 9.38%[5] - The company has 11 national-level R&D institutions and 18 overseas R&D centers, enhancing its innovation capabilities[22] - The company has developed a technology innovation system that promotes collaborative development and global layout, enhancing its R&D capabilities[18] - Total R&D investment amounted to 14,813,392 thousand RMB, representing 6.32% of operating revenue, with capitalized R&D accounting for 3.04%[37] - The company has 19,001 R&D personnel, making up 12.31% of the total workforce, with 385 holding doctoral degrees[38] Strategic Initiatives - The company aims to achieve "seven new breakthroughs" in 2024, focusing on business layout, market expansion, and technological innovation[6] - The company plans to accelerate the construction of a modern industrial system, emphasizing high-quality development and innovation[7] - The company aims to become a world-class rail transportation equipment system solution provider, focusing on technological, product, service, and business model innovations[10] - The company is actively pursuing international market expansion, implementing a "localization" strategy to enhance brand influence and operational efficiency abroad[14] - The company is committed to promoting the development of clean energy infrastructure and significantly increasing the utilization of clean energy sources[65] Market Trends and Opportunities - The global economy is showing overall positive trends, with stable growth in market demand for rail transportation equipment, driven by the dual carbon strategy and green energy transition[8] - New industries, including clean energy equipment and emerging sectors like wind power and photovoltaics, are becoming significant growth drivers for the company[12] - The urban rail and infrastructure business is expanding, with a focus on modular, standardized, and green product platforms to enhance competitiveness in domestic and international markets[11] - The company is leveraging its strengths in technology and resource allocation to build a clean energy equipment industry cluster, contributing to its overall business growth[12] Corporate Governance - The company has a strong governance structure with independent non-executive directors, including Shi Jianzhong and Wei Mingde, who bring diverse expertise from various industries[133] - The company emphasizes the importance of governance and compliance, as evidenced by the roles of independent directors and the audit committee[133][134] - The company has a structured compensation system for its executives, with specific roles and responsibilities outlined for each[130] - The company has maintained a stable leadership team with no significant changes in executive positions during the reporting period[129] - The company’s board of directors includes individuals with extensive experience in the industry, contributing to strategic decision-making[131] Environmental Responsibility - The company emphasizes the promotion and application of advanced environmental protection technologies, continuously increasing investment in environmental protection measures[123] - The wastewater and air pollution prevention facilities operated by the company's subsidiaries are stable and effective, meeting national or local discharge standards[123] - The company has established emergency response plans for significant environmental risks and conducts regular emergency drills to enhance awareness and response capabilities[124] - The company actively engages in ecological environment risk self-inspection and rectification work, particularly in key areas along the Yangtze and Yellow River basins[123] - The company has implemented photovoltaic construction to increase the use of green electricity, with Harbin Company becoming the first zero-carbon heating demonstration[125] Dividend Policy - The company plans to distribute a cash dividend of RMB 0.20 per share, totaling RMB 5.74 billion, subject to shareholder approval[2] - The company’s cash dividend distribution plan for 2022 was approved, with a total of RMB 57.4 billion to be distributed, maintaining a similar plan for 2023[89] - The company’s cash dividend policy is in compliance with its articles of association and has been clearly communicated to shareholders[90] - The company plans to distribute a cash dividend of RMB 5,739,773, which accounts for 49.01% of the net profit attributable to ordinary shareholders in the consolidated financial statements[91] Risk Management - The company has established a comprehensive risk management system, issuing 2 basic risk control regulations and 68 guidelines for risk management and internal control[186] - The company employs a "three lines of defense" model for risk management and internal control, conducting annual assessments and reporting to the audit and risk management committee[188] - The company has implemented strict policies and monitoring procedures to prevent unauthorized use or disposal of assets, maintaining reliable financial and accounting records[187] - The internal audit function is in place to oversee the effectiveness of the risk management and internal control systems, with regular reports to the audit and risk management committee[188] - The company has maintained a stable dividend policy, distributing no less than 45% of the available profits over the last three years[191] Mergers and Acquisitions - The merger agreement with China Foreign Trade Financial Leasing Co., Ltd. is valued at approximately RMB 330,134.82 million, with the new company inheriting all assets, liabilities, and rights of the leasing company[95] - The merger is expected to enhance the company's core competitiveness and optimize its management structure[96] - The company approved the establishment of CRRC Intelligent Rail Transit Technology Co., Ltd. with several subsidiaries, registered as "CRRC (Chongqing) Intelligent Rail Transit Technology Co., Ltd."[56] - The company completed a capital increase to its subsidiary, CRRC Sifang Co., Ltd., by transferring 100% equity of Qingdao CRRC Sifang Rail Vehicle Co., Ltd.[56] Employee and Management Structure - The company has a total of 154,292 employees, with 179 in the parent company and 154,113 in major subsidiaries[142] - The professional composition includes 80,481 production personnel, 37,657 technical personnel, and 31,443 management personnel[143] - The company has implemented a salary management system to enhance the competitiveness of core technology talent, with differentiated incentive standards for different subsidiaries[145] - The company organized 68 key training programs, training over 12,100 participants at the company level, and 337,000 participants at the subsidiary and workshop levels[146] Financial Reporting and Audit - The total remuneration for the auditing firm KPMG for the fiscal year 2023 amounted to RMB 29.6 million, including RMB 27.6 million for financial report auditing and RMB 2 million for internal control auditing[185] - The company received an unqualified audit report from KPMG regarding the effectiveness of its financial reporting and internal controls[190] - The company confirmed its responsibility for preparing financial statements for the fiscal year ending December 31, 2023, ensuring they present a true and fair view of its financial position and operating results[183]

Investment Rating - The report assigns a rating of "Buy" for the company [2]. Core Views - The company is a global leader in rail transit equipment, and the "Large-scale Equipment Update Plan" is expected to accelerate industry construction and updates, leading to improved profitability [4]. - The forecast for net profit attributable to shareholders for 2023-2025 is RMB 12.21 billion, RMB 13.72 billion, and RMB 15.24 billion, respectively, with corresponding EPS of RMB 0.43, RMB 0.48, and RMB 0.53 [4][10]. - The target price is set at RMB 6.99, equivalent to HKD 7.59, based on a comprehensive consideration of PE and PB valuations [4][11]. Summary by Sections 1. Investment Recommendations - The company is expected to benefit significantly from the "Large-scale Equipment Update Plan," which will drive industry growth and enhance profitability [4]. - The railway equipment business is projected to see revenue growth rates of 9.5% for 2023 and 2024, and 10.5% for 2025, with stable gross margins [7]. 2. Focus on Rail Transit Equipment and Core Technologies - The company has a strong position in the rail transit equipment sector, focusing on core technologies and maintaining a leading global status [16][17]. - The recovery in the rail transit industry is anticipated to boost performance, with significant demand expected to be released [22]. 3. Policy Support for Industry Development - Multiple favorable policies have emerged to support the rail transit industry, focusing on enhancing the railway's share of transportation and promoting green transformation [29]. - The government aims to increase the electrification rate and accelerate the replacement of old locomotives, which will benefit the company [30]. 4. Railway Demand and Investment - The railway passenger volume has significantly recovered, with a 130% year-on-year increase in 2023, surpassing pre-pandemic levels [32]. - The railway freight volume is expected to remain stable, with a projected total of 50.1 billion tons in 2023 [33]. 5. Financial Summary - The company's revenue for 2023 is expected to be RMB 240.57 billion, with a growth rate of 7.91%, and net profit is projected to be RMB 12.21 billion [5][10]. - The financial metrics indicate a stable cost structure, with a slight increase in various expense ratios [24].

Financial Performance - Operating revenue for Q3 2023 was RMB 55,732,259 thousand, an increase of 2.70% compared to the same period last year[3] - Net profit attributable to shareholders was RMB 2,691,225 thousand, a decrease of 7.09% year-on-year[3] - The basic earnings per share for the quarter was RMB 0.09, down 10.00% from the previous year[3] - The total operating revenue for the first nine months of 2023 was RMB 143.0 billion, an increase of 5.51% compared to the same period last year[8] - Net profit attributable to shareholders of the parent company was RMB 6.15 billion, up 2.1% from RMB 6.03 billion in the previous year[24] - Total comprehensive income for the first three quarters was RMB 8.09 billion, slightly down from RMB 8.15 billion in the previous year[25] Assets and Liabilities - Total assets at the end of the reporting period were RMB 476,716,004 thousand, an increase of 7.82% from the end of the previous year[3] - The total liabilities of the company reached RMB 283.93 billion as of September 30, 2023, compared to RMB 251.15 billion at the end of 2022, marking an increase of approximately 13.1%[23] - The company's equity attributable to shareholders amounted to RMB 155.64 billion, slightly up from RMB 155.04 billion, reflecting a growth of about 0.4%[23] - As of September 30, 2023, the total assets of the company amounted to RMB 476.72 billion, an increase from RMB 442.14 billion as of December 31, 2022, representing a growth of approximately 7.8%[22] - The company's current assets totaled RMB 320.03 billion as of September 30, 2023, compared to RMB 290.46 billion at the end of 2022, reflecting an increase of about 10.2%[21] Cash Flow - Cash flow from operating activities showed a net outflow of RMB 3,992,206 thousand, compared to a net inflow of RMB 9,860,000 thousand in the same period last year[6] - Cash and cash equivalents decreased to RMB 44.06 billion from RMB 54.86 billion, a decline of approximately 19.5%[21] - The company reported a total investment cash outflow of RMB 25.07 billion, compared to RMB 33.56 billion in the same period of 2022[27] - Cash inflow from financing activities totaled RMB 41.98 billion, an increase from RMB 35.65 billion in the previous year[27] - The company paid RMB 32.76 billion in cash for debt repayment, up from RMB 28.21 billion in the same period last year[28] Revenue Breakdown - The railway equipment business accounted for 36.70% of total operating revenue, with new industries contributing 39.10%[7] - Railway equipment business revenue increased by 12.41% year-on-year, totaling RMB 52.5 billion, driven by increased sales of high-speed trains and locomotives[8] - Urban rail and infrastructure business revenue decreased by 12.92% year-on-year, primarily due to reduced income from urban rail subway vehicles[9] - New industry business revenue increased by 14.77% year-on-year, reaching RMB 55.9 billion, mainly from sales of energy storage equipment and general components[9] - Modern services business revenue decreased by 18.96% year-on-year, totaling RMB 4.5 billion, mainly due to declines in logistics and leasing services[9] Shareholder Information - The largest shareholder, China CNR Corporation Limited, holds 50.73% of the shares, totaling approximately 14.56 billion shares[11] - HKSCC Nominees Limited, the second-largest shareholder, holds 15.19% of the shares, totaling approximately 4.36 billion shares[11] - The total number of common shareholders at the end of the reporting period was 588,089[10] - The company’s A-share shareholders numbered 585,929, while H-share shareholders totaled 2,160[15] Inventory and Receivables - Inventory increased by approximately 40.61%, primarily due to increased production materials[5] - The company reported an increase in inventory to RMB 88.77 billion from RMB 63.14 billion, representing a significant rise of approximately 40.5%[21] - Accounts receivable increased to RMB 98.65 billion, up from RMB 88.99 billion, indicating a growth of around 10.5%[21] - The company has seen a notable increase in other receivables, which rose to RMB 4.71 billion from RMB 2.87 billion, indicating a growth of approximately 64%[21] Research and Development - Research and development expenses amounted to RMB 7.98 billion, representing a 6.5% increase from RMB 7.49 billion in the same period last year[24] - Research and development expenses increased to RMB 127.96 million in 2023 from RMB 83.75 million in 2022, reflecting a rise of approximately 53.0%[31] Future Plans - The company plans to continue expanding its new industries and railway equipment business to drive future growth[7] - The company plans to complete the election of new supervisors following the resignation of a supervisor due to the legal minimum number of supervisors being affected[18]