Financial Performance - The company's operating revenue for Q1 2024 reached CNY 3,924,623,207, representing a year-on-year increase of 27.20%[10] - Net profit attributable to shareholders for the same period was CNY 567,547,208, marking a growth of 30.44% compared to the previous year[10] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 460,999,116, which is an increase of 44.85% year-on-year[10] - Basic earnings per share for Q1 2024 were CNY 0.40, reflecting a 29.03% increase from the same period last year[10] - Operating profit for Q1 2024 was ¥616,035,912, up 31.6% from ¥467,783,206 in Q1 2023[49] - Net profit for Q1 2024 increased to ¥577,497,281, compared to ¥447,445,309 in Q1 2023, representing a growth of 29.1%[49] - Total comprehensive income for Q1 2024 was ¥592,674,740, compared to ¥461,958,859 in Q1 2023, reflecting a growth of 28.3%[53] Revenue Breakdown - The rail transportation business generated RMB 21.20 billion, up 43.74% from RMB 14.75 billion year-over-year, with the rail engineering machinery segment seeing a significant increase of 468.37%[32] - The emerging equipment business reported revenue of RMB 17.69 billion, a growth of 13.18% from RMB 15.63 billion, driven by power semiconductor devices which grew by 22.44%[32] - Total revenue for Q1 2024 reached ¥3,924,623,207, a 27.1% increase from ¥3,085,430,376 in Q1 2023[48] - Sales revenue from goods and services received cash of ¥2,917,791,196 in Q1 2024, an increase from ¥2,361,292,538 in Q1 2023[57] Assets and Liabilities - The total assets at the end of the reporting period amounted to CNY 55,106,878,479, a 3.19% increase from the end of the previous year[12] - Current assets totaled RMB 39.86 billion as of March 31, 2024, compared to RMB 37.51 billion at the end of 2023, reflecting a solid liquidity position[35] - Total liabilities rose to RMB 16.87 billion as of March 31, 2024, compared to RMB 15.69 billion at the end of 2023, primarily due to an increase in short-term borrowings[41] - The company's total assets increased to RMB 55.11 billion from RMB 53.40 billion, showcasing growth in both current and non-current assets[43] Shareholder Information - The company reported a total of 18,421 common shareholders at the end of the reporting period[18] - The total equity attributable to shareholders was CNY 37,373,161,487, reflecting a 1.38% increase from the previous year-end[12] - The largest shareholder, CRRC Zhuzhou Electric Locomotive Research Institute, holds 591,000,716 shares, accounting for 41.73% of the total shares[21] - HKSCC Nominees Limited, an overseas entity, holds 546,012,266 shares, representing 38.55% of the total shares[24] - The top ten unrestricted shareholders collectively hold 610,381,485 shares, which is 47.72% of the company's total equity[26] Cash Flow - The net cash flow from operating activities was negative at CNY -482,272,409, indicating a significant cash outflow during the quarter[10] - Cash flow from operating activities for Q1 2024 was negative at -¥482,272,409, an improvement from -¥1,272,174,259 in Q1 2023[59] - The company's cash and cash equivalents increased to RMB 8.28 billion from RMB 7.90 billion, indicating improved cash flow management[35] - The ending balance of cash and cash equivalents as of Q1 2024 was $7.13 billion, compared to $6.01 billion at the end of Q1 2023, reflecting a year-over-year increase of 18.6%[63] Research and Development - Research and development expenses totaled CNY 466,397,177, which is 11.88% of operating revenue, although this represents a decrease of 0.71 percentage points compared to the previous year[10] - Research and development expenses rose to ¥457,338,479, a 23.2% increase from ¥371,341,436 in Q1 2023[48] - The development expenditure for new technologies reached RMB 282.12 million, reflecting the company's commitment to innovation[37] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[32]

Financial Performance - The company's operating revenue for Q1 2024 reached CNY 3,924,623,207, representing a year-on-year increase of 27.20%[4] - Net profit attributable to shareholders was CNY 567,547,208, up 30.44% compared to the same period last year[4] - The net profit after deducting non-recurring gains and losses was CNY 460,999,116, reflecting a significant increase of 44.85% year-on-year[4] - The basic earnings per share for the quarter was CNY 0.40, an increase of 29.03%[5] - In Q1 2024, the company reported a net profit of CNY 577,497,281, an increase of 29.1% compared to CNY 447,445,309 in Q1 2023[20] - The company's operating profit reached CNY 616,035,912, up 31.6% from CNY 467,783,206 in the same period last year[20] - The company reported a total comprehensive income of CNY 592,674,740, an increase of 28.3% from CNY 461,958,859 in the previous year[21] Revenue Breakdown - The rail transit business generated RMB 2.120 billion, up 43.74% from RMB 1.475 billion year-on-year, with significant growth in rail engineering machinery by 468.37%[15] - The emerging equipment business reported revenue of RMB 1.769 billion, a 13.18% increase from RMB 1.563 billion, driven by power semiconductor devices growing by 22.44%[15] - The company’s revenue from rail transit electrical equipment was RMB 1.617 billion, reflecting a 28.95% increase year-on-year[15] - The company’s revenue from communication signal systems was RMB 143 million, a 42.00% increase compared to the previous year[15] - The company’s revenue from other rail transit equipment decreased by 4.51% to RMB 65 million[15] - The company’s revenue from other businesses fell by 24.86% to RMB 36 million[15] - Total operating revenue for Q1 2024 reached RMB 3,924,623,207, an increase of 27.2% compared to RMB 3,085,430,376 in Q1 2023[19] Costs and Expenses - Total operating costs for Q1 2024 were RMB 3,442,861,527, up 25.0% from RMB 2,753,153,062 in Q1 2023[19] - Research and development expenses totaled CNY 466,397,177, accounting for 11.88% of operating revenue, a decrease of 0.71 percentage points[5] - Research and development expenses increased to CNY 457,338,479, representing a rise of 23.2% from CNY 371,341,436 in Q1 2023[20] - The company's tax expenses for Q1 2024 were CNY 45,066,278, up from CNY 23,303,260 in Q1 2023, reflecting a growth of 93.5%[20] Cash Flow and Assets - The net cash flow from operating activities was negative CNY 482,272,409, indicating a cash outflow[5] - The company generated a net cash flow from operating activities of CNY -482,272,409, an improvement from CNY -1,272,174,259 in Q1 2023[23] - Cash and cash equivalents as of March 31, 2024, amounted to RMB 8,280,216,480, compared to RMB 7,903,177,340 at the end of 2023, reflecting a growth of 4.8%[16] - Cash and cash equivalents at the end of Q1 2024 amounted to CNY 7,134,783,664, up from CNY 6,014,183,114 at the end of Q1 2023[23] - Accounts receivable increased to RMB 10,707,530,139 as of March 31, 2024, from RMB 9,635,843,983 at the end of 2023, representing a rise of 11.1%[16] - Inventory as of March 31, 2024, was RMB 6,069,913,338, up 11.5% from RMB 5,442,956,796 at the end of 2023[16] - Total assets at the end of the reporting period were CNY 55,106,878,479, an increase of 3.19% from the end of the previous year[5] - Total assets increased to RMB 55,106,878,479 as of March 31, 2024, compared to RMB 53,404,847,387 at the end of 2023, marking a growth of 3.2%[18] - Total liabilities as of March 31, 2024, were RMB 16,871,994,328, an increase from RMB 15,688,316,505 at the end of 2023, reflecting a rise of 7.6%[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,421[8] - The number of A-share shareholders reached 17,361, while H-share shareholders totaled 1,060 as of the report date[11] - The company’s major shareholder, CRRC Corporation Limited, indirectly holds 47.72% of the company's shares[11] - The top 10 shareholders participated in securities lending, with the highest lending volume from China Merchants Bank at 457,500 shares[11] Future Outlook - The company continues to invest in new technologies and market expansion, although specific figures are not provided in the report[19] - Future outlook remains positive with expectations of continued growth in revenue and market presence[19]

Financial Performance - The company's operating revenue for 2023 reached RMB 21.80 billion, a year-on-year increase of 20.88% compared to RMB 18.03 billion in 2022[14]. - Net profit attributable to shareholders for 2023 was RMB 3.11 billion, reflecting a growth of 21.51% from RMB 2.56 billion in 2022[14]. - The net cash flow from operating activities was RMB 2.78 billion, up 36.28% from RMB 2.04 billion in the previous year[14][18]. - The total assets at the end of 2023 amounted to RMB 53.40 billion, a 10.09% increase from RMB 48.51 billion at the end of 2022[15]. - The net assets attributable to shareholders increased to RMB 36.87 billion, representing a growth of 6.76% from RMB 34.53 billion in 2022[15]. - Basic earnings per share for 2023 were RMB 2.19, up 21.67% from RMB 1.80 in 2022[17]. - The company's operating revenue reached a historic milestone of 20 billion yuan, achieving a new high in profitability[7]. - The company's operating revenue was RMB 21.7999 billion in 2023, representing a year-on-year increase of 20.88% compared to RMB 18.034 billion in the same period last year[116]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 7.8 per 10 shares, totaling approximately RMB 1.1 billion, which represents 35.45% of the net profit attributable to shareholders for the year 2023[1]. - The company will withhold a 10% corporate income tax on dividends distributed to non-resident corporate shareholders[187]. - Foreign individuals receiving dividends from the company are exempt from personal income tax under Chinese regulations[188]. Governance and Compliance - There are no significant risks related to the company's governance or financial practices reported[2]. - The company has confirmed that it has not been profitable since its listing[1]. - The report indicates that there are no special arrangements for corporate governance[2]. - The company has received a standard unqualified audit opinion from its auditing firm[1]. - The company has confirmed that there are no violations of decision-making procedures regarding external guarantees[2]. - The independent non-executive directors confirmed that CRRC Zhuzhou has adhered to the Non-Competition Agreement in 2023, with no competitive overlap in business operations[185]. - The audit committee reviewed the company's annual performance and annual report for 2023, including the audited consolidated financial statements as of December 31, 2023[198]. Research and Development - The company achieved a total R&D investment of CNY 2,145,457,133 in the reporting period, representing a 16.18% increase compared to the previous year[63]. - The company's R&D expenditure accounted for 9.84% of operating revenue, a decrease of 0.40 percentage points from 10.24% in 2022[17]. - A total of 229 new invention patents were granted in 2023, bringing the total number of effective patents to 3,558, with over 50% being invention patents[61]. - The company holds 3,558 patents, including 2,174 invention patents, and has participated in the formulation of 50 international standards[92]. - The R&D team consists of 3,180 engineering technicians, accounting for 38.03% of the workforce, with over 43% holding postgraduate degrees, ensuring a strong foundation for core technology development[97]. Market Position and Strategy - The company maintained a leading market share in rail transit traction systems, with continuous improvement in industry rankings for power supply and signaling systems[7]. - The company aims to strengthen its dual-track industry development strategy, focusing on transportation and new energy sectors[9]. - The company is actively expanding into industries outside rail transit, including power semiconductors, industrial conversion products, and new energy vehicle drive systems[29]. - The company is committed to deepening market-oriented reforms, optimizing organizational structure, and enhancing operational efficiency[8]. - The company is focusing on market expansion through innovative product offerings and strategic partnerships in the rail transportation sector[66]. Risks and Challenges - The company faces risks related to unprofitable operations and potential significant declines in performance, necessitating ongoing investment in new technologies and products[101]. - The company is facing risks from international trade protectionism and fluctuating foreign exchange rates impacting overseas operations[107][104]. - The overall trend of urban rail transit construction is slowing down, with local government debt rates high and significant tightening of fiscal policies, leading to a year-on-year decrease in urban rail construction investment[152]. Investments and Financial Management - The company plans to invest approximately RMB 110,799,000 in the manufacturing base for new energy passenger vehicle electric drive systems and key components[140]. - The company’s total liabilities at the end of the reporting period were RMB 25.4 billion, with long-term borrowings increasing by 769.39% to RMB 631.94 million[134]. - The company’s cash flow from financing activities showed a net outflow of RMB 589 million, which was stable compared to the same period last year[133]. - The company has engaged in derivative investments for hedging purposes, with a total initial investment amount of RMB 8,490.90[142]. Operational Efficiency - The company implemented a digital-driven management approach, enhancing profitability through precise management and real-time monitoring of financial performance[8]. - The company has established a comprehensive quality management system, achieving multiple international certifications including ISO9001 and IATF16949, ensuring high reliability and efficiency of products[93]. - The company is focusing on digital transformation and improving management efficiency to adapt to the complexities of its diversified business[109]. Product Development and Innovation - The company has developed a comprehensive independent intellectual property system, enhancing its capabilities in various high-tech fields such as electrical systems and control technology[29]. - The company has successfully developed a series of traction converters that meet the application needs of high-power locomotives and urban rail vehicles[44]. - The company has achieved breakthroughs in advanced motor control technology based on direct torque control, enhancing the reliability and performance of electric drive systems[44]. - The company is focusing on enhancing system availability and reducing the impact of failures through advanced technology integration[73].

Investment Rating - The report maintains a "Buy" rating for CRRC Times Electric (3898) with a target price of HKD 38.1, indicating a potential upside of 53.6% from the current price [2]. Core Views - The report highlights a recovery in rail transit and rapid growth in new equipment, with a net profit growth of 21.5% in 2023, driven by a revenue increase of 20.9% to RMB 21.8 billion [2]. - The rail transit business is showing signs of recovery, with a significant increase in national railway passenger volume, which rose by 128.8% year-on-year, surpassing pre-pandemic levels [2]. - The emerging equipment business is experiencing high growth rates, particularly in power semiconductor devices and new energy vehicle components, with some segments growing over 69% [2]. Financial Summary - In 2023, the company reported revenues of RMB 21.8 billion, with a net profit of RMB 3.1 billion, translating to an earnings per share (EPS) of RMB 2.19 [2][7]. - The revenue breakdown shows rail transit business revenue at RMB 12.9 billion (up 2%) and emerging equipment business revenue at RMB 8.7 billion (up 69.6%) [2]. - The forecast for 2024-2026 projects revenues of RMB 24.5 billion, RMB 27.8 billion, and RMB 30.6 billion, with respective growth rates of 12.4%, 13.6%, and 10.0% [2][7]. Business Segments - The rail transit business is expected to benefit from ongoing demand for locomotive and train replacements, with a total of 22,400 locomotives and 4,427 standard train sets in operation by the end of 2023 [2]. - The emerging equipment segment focuses on two main areas: transportation and energy, with significant investments in research and development, amounting to RMB 2.02 billion in 2023, representing 9.3% of total revenue [2]. - The company has secured new orders for photovoltaic inverters totaling 18.6 GW, ranking among the top three in the industry [2].

机械设备/轨交设备Ⅱ 公 司 研 时代电气（03898.HK） 受益轨交设备更新以及电网积极规划 究 2024年04月01日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） wuliuyan@kysec.cn 证 书编号：S0790521110001 日期 2024/3/28  主业受益设备更新政策，半导体业务份额扩张，维持“买入”评级 港 当前股价(港元) 24.800 考虑到公司功率产品产能利用率和良率提升带来利润率提升，我们将 2024年归 股 一年最高最低(港元) 35.300/18.100 公 母净利润预测由33亿人民币上调至36亿人民币，维持2025年归母净利润预测 司 总市值(亿港元) 351.23 40亿人民币，新增2026年归母净利润预测45亿人民币，对应2024-2026年同比 信 流通市值(亿港元) 135.74 息 增速分别为 15%/11%/13%，当前股价 24.8 港币对应 2024-2025 年 PE 分别为 总股本(亿股) 14.16 更 8.9/8.0/7.1倍。公司轨交设备业务有望受益设备更新政策，新兴装备业务构筑第 新 流通港股(亿股) 5.47 ...

Financial Performance - The company achieved a historic revenue milestone of 20 billion CNY in 2023, marking a significant increase in profitability[9]. - The company's operating revenue for 2023 reached ¥21,798,940,776, representing a 20.88% increase compared to ¥18,033,778,561 in the same period last year[14]. - Net profit attributable to shareholders was ¥3,105,703,645, up 21.51% from ¥2,555,823,375 in the previous year[14]. - The net profit after deducting non-recurring gains and losses was ¥2,595,354,684, reflecting a 29.89% increase from ¥1,998,118,899 year-on-year[14]. - The net cash flow from operating activities was ¥2,781,885,557, a 36.28% increase compared to ¥2,041,235,459 in the same period last year[14]. - Basic earnings per share for 2023 were ¥2.19, up 21.67% from ¥1.80 in 2022[15]. - The weighted average return on net assets increased to 8.70%, up 1.09 percentage points from 7.61% in the previous year[16]. - The total assets at the end of 2023 were ¥53,404,847,387, a 10.09% increase from ¥48,509,554,784 at the end of the previous year[14]. - The net assets attributable to shareholders increased by 6.76% to ¥36,865,956,579 compared to ¥34,530,700,003 at the end of 2022[14]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 7.8 per 10 shares to all shareholders, totaling approximately RMB 1,101,001,287.36, which accounts for 35.45% of the net profit attributable to shareholders for the year 2023[3]. - The board of directors has approved the profit distribution plan, which is subject to approval at the annual general meeting[3]. - The cash dividend proposal for 2023 is subject to approval at the annual general meeting[161]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5]. - The company has not violated any regulatory decision-making procedures for providing guarantees[5]. - The company has not disclosed any special arrangements for corporate governance[4]. - The company has not experienced any situation where more than half of the directors cannot guarantee the authenticity, accuracy, and completeness of the annual report[5]. - The company has received a standard unqualified audit report from KPMG Huazhen[2]. - The company has established a comprehensive internal control system to monitor financial, operational, compliance, and risk management aspects[163]. - KPMG Huazhen has issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting[165]. - The company emphasizes the importance of shareholder returns while maintaining sustainable development[158]. Research and Development - The company has filed over 440 patents and received 11 international, national, and industry standards, enhancing its industry influence[9]. - The company achieved a total R&D investment of ¥2,145,457,133, representing a 16.18% increase compared to the previous year[42]. - Research and development expenses accounted for 9.84% of operating revenue, a decrease of 0.40 percentage points from 10.24% in 2022[16]. - The company has established a comprehensive R&D system with over 20 laboratories, including electrical systems and reliability labs, enhancing its innovation capabilities in product design and testing[57]. - The company holds a total of 3,558 patents, including 2,174 invention patents, and has participated in the formulation of 50 international standards and 174 domestic standards[57]. Market Position and Strategy - The company maintained over 50% market share in the domestic urban rail traction system market for 12 consecutive years[22]. - The company delivered 100.55 million sets of power modules for new energy passenger vehicles, achieving a market share of 12.5% and ranking third in the industry[22]. - The company secured new orders for 18.6 GW of photovoltaic inverters, ranking among the top three for the first time[22]. - The company is committed to deepening market-oriented reforms and optimizing organizational structure to enhance operational efficiency[9]. - The company aims to leverage high-quality development opportunities and challenges, focusing on its core rail transit sector and expanding into semiconductor and electric vehicle markets[9]. Environmental and Social Responsibility - The company invested ¥8.7539 million in environmental protection during the reporting period[167]. - The subsidiary Zhuzhou CRRC Times Semiconductor Co., Ltd. achieved 100% compliance in wastewater, waste gas, and noise emissions according to national standards in 2023[169]. - The company was recognized as a water-saving enterprise in Hunan Province in 2023[177]. - The company has committed to adhering to the TCFD recommendations for climate-related financial disclosures, analyzing risks and opportunities related to climate change[175]. - The company actively promotes environmental protection initiatives, integrating green concepts into market expansion and product development[187]. Talent Management and Workforce - The total number of employees in the parent company and major subsidiaries is 8,362, with 3,975 in the parent company and 4,387 in major subsidiaries[153]. - The company has a total of 1,502 production staff, 505 sales staff, and 4,841 technical staff, including 1,967 with a master's degree or higher[153]. - The company has implemented a comprehensive compensation policy focusing on talent incentives, performance management, and competitive salary structures[155]. - The company has conducted 12 empowerment sessions involving over 2,000 employees, focusing on enhancing profitability and performance[156]. - The company has established a training brand and developed a multi-level training system to enhance employee skills and align with strategic goals[156]. Risk Management - The company faces risks related to international operations, including currency fluctuations and project execution challenges, and has implemented measures to mitigate these risks[61][62]. - The company has implemented strict risk management measures for its foreign exchange derivative transactions to mitigate market and liquidity risks[96]. - The company has established a robust internal control and risk management system, as overseen by the Audit and Risk Control Committees[141]. Future Outlook - The company plans to strengthen its technological innovation, market expansion, and digital transformation strategies to achieve stable growth[9]. - The management indicated a positive outlook for future performance, expecting growth in user data and market share[111]. - The company has set ambitious performance guidance for the next fiscal year, aiming for a significant increase in revenue[111]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of ¥1 billion allocated for this purpose[115].

Financial Performance - The company's operating revenue for 2023 reached RMB 21.80 billion, an increase of 20.88% compared to RMB 18.03 billion in 2022[18]. - Net profit attributable to shareholders for 2023 was RMB 3.11 billion, reflecting a growth of 21.51% from RMB 2.56 billion in 2022[18]. - The net cash flow from operating activities was RMB 2.78 billion, up 36.28% from RMB 2.04 billion in the previous year[22]. - The total assets at the end of 2023 amounted to RMB 53.40 billion, a 10.09% increase from RMB 48.51 billion at the end of 2022[19]. - The net assets attributable to shareholders increased to RMB 36.87 billion, representing a growth of 6.76% from RMB 34.53 billion in 2022[19]. - Basic earnings per share for 2023 were RMB 2.19, a rise of 21.67% compared to RMB 1.80 in 2022[21]. - The company's operating revenue reached a historic milestone of 20 billion yuan in 2023, achieving a new high in profitability[9]. - The company's total non-recurring gains and losses for 2023 amounted to RMB 510.35 million, compared to RMB 557.70 million in 2022[25]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 7.8 per 10 shares, totaling approximately RMB 1,101,001,287.36, which represents 35.45% of the net profit attributable to shareholders for the year 2023[3]. - As of December 31, 2023, the total share capital is 1,416,236,912 shares, after deducting 4,696,800 repurchased H shares, the base for dividend distribution is 1,411,540,112 shares[3]. Corporate Governance - The audit report issued by KPMG indicates a standard unqualified opinion[3]. - The board of directors has confirmed the accuracy and completeness of the annual report, with no significant omissions or misleading statements[3]. - The company has confirmed that all directors attended the board meeting[4]. - The company has established service contracts with all directors and supervisors, with a term of three years for each board cycle[172]. - There are no significant transactions or contracts involving directors or supervisors that would create a direct or indirect interest in the company as of December 31, 2023[176]. - The company has not provided any loans or similar financial assistance to its directors, supervisors, or senior management[177]. - The company has implemented governance measures to protect non-controlling interests, including independent reviews of transactions with suppliers and customers[184]. Research and Development - The company achieved a total R&D investment of CNY 2,145,457,133, representing a 16.18% increase compared to the previous year[67]. - The R&D expenditure as a percentage of operating revenue was 9.84%, down from 10.24% in 2022[21]. - The company has developed a comprehensive independent intellectual property system in various high-tech fields, including electric systems and control technology[38]. - The R&D team consists of 3,180 engineering personnel, accounting for 38.03% of the total workforce, with over 43% holding a master's degree or higher[98]. - A total of 229 new invention patents were granted, bringing the total number of effective patents to 3,558, with over 50% being invention patents[64]. Market Position and Strategy - The company maintained a leading market share in rail transit traction systems, with continuous improvement in industry rankings for power supply and signaling systems[9]. - The company is committed to deepening market-oriented reforms and optimizing organizational structure to enhance long-term industrial development[10]. - The company aims to leverage its industry advantages to consolidate its market position and create greater value for shareholders[31]. - The company is positioned in the rapidly growing new energy market, which is projected to be worth hundreds of billions, driven by the national "dual carbon" strategy[156]. - The company is actively expanding into industries outside rail transit, including power semiconductors and new energy vehicle drive systems[38]. Risks and Challenges - The company is subject to risks related to forward-looking statements regarding future plans and development strategies[4]. - The company faces risks related to core competitiveness, including uncertainties in technology development and potential delays in R&D progress[102]. - Financial risks are heightened due to international operations, with currency fluctuations impacting foreign currency assets and liabilities[105]. - The company is exposed to industry risks from changing government policies and increasing competition in the new energy vehicle parts market[106]. - Macro-environmental risks arise from rising international trade protectionism, affecting overseas operations and material procurement[108]. Investment and Expansion - The company plans to raise approximately 4.659 billion yuan through a capital increase and share expansion, with a proposed equity dilution of 19.1236% post-expansion[151]. - The strategic investors are expected to contribute 18.6871% of the new shares, while the employee stock ownership platform will account for 0.4366%[151]. - The company has approved an investment of 1,107.99 million RMB for the manufacturing base project of new energy vehicle electric drive systems and key components[141]. Operational Efficiency - The company implemented a digital-driven management approach, enhancing profitability and operational efficiency through real-time monitoring and analysis[10]. - The company emphasizes the importance of project quality, safety, and cost control in its operations[110]. - The company has established a dynamic and flexible production planning system based on sales orders and historical sales data[36]. Industry Trends - The railway market is entering a recovery phase, with a projected national railway network size of around 200,000 kilometers by 2035, including 70,000 kilometers of high-speed rail[154]. - The urban rail transit construction trend is slowing down, with local government debt rates high and investment in urban rail construction decreasing annually[155]. - The company anticipates growth in the maintenance and repair market due to the increasing stock of rail transit equipment entering the maintenance phase[154].

Financial Performance - The company's operating revenue for Q3 2023 reached ¥5,525,095,245, representing a year-on-year increase of 27.05%[4] - Net profit attributable to shareholders for Q3 2023 was ¥898,929,802, up 29.96% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥751,335,431, reflecting a 44.31% increase year-on-year[4] - Basic earnings per share for Q3 2023 were ¥0.64, up 30.61% from the same period last year[5] - The company reported a total comprehensive income of CNY 2,130,377,547 for Q3 2023, compared to CNY 1,629,736,659 in Q3 2022, marking a 30.7% increase[24] Revenue Growth - The company achieved a revenue of RMB 14.095 billion in the first three quarters of 2023, representing a year-on-year increase of 29.60% compared to RMB 10.876 billion in the same period last year[12] - Revenue from rail transit equipment products reached RMB 7.722 billion, up 7.24% from RMB 7.202 billion year-on-year[13] - Emerging equipment products saw significant revenue growth, totaling RMB 6.083 billion, a 72.37% increase from RMB 3.529 billion year-on-year[15] - The company reported a 99.84% increase in other business revenue, reaching RMB 290 million compared to RMB 145 million in the previous year[16] Assets and Liabilities - The total assets at the end of the reporting period were ¥51,795,561,445, an increase of 6.77% compared to the end of the previous year[5] - Total assets reached CNY 51,795,561,445 in Q3 2023, compared to CNY 48,509,554,784 in Q3 2022, indicating a growth of 4.7%[21] - Total liabilities increased to CNY 14,972,874,699 in Q3 2023, up from CNY 13,213,823,602 in Q3 2022, representing a 13.3% rise[21] - The company's total equity increased to CNY 36,822,686,746 in Q3 2023, up from CNY 35,295,731,182 in Q3 2022, reflecting a growth of 4.3%[21] Research and Development - Research and development expenses totaled ¥468,577,979, accounting for 8.48% of operating revenue, a decrease of 0.44 percentage points from the previous year[5] - Research and development expenses for the first three quarters of 2023 were CNY 1,268,225,480, an increase of 18.5% from CNY 1,069,633,505 in the same period of 2022[22] Cash Flow - The net cash flow from operating activities for the year-to-date was -¥233,845,840, reflecting a decline of 163.10% compared to the previous year[5] - In the first three quarters of 2023, the cash inflow from operating activities was CNY 11,885,470,986, an increase of 5.5% compared to CNY 11,262,352,338 in the same period of 2022[26] - The net cash flow from operating activities turned negative at CNY -233,845,840, compared to a positive CNY 370,594,760 in the first three quarters of 2022[26] - Cash inflow from investment activities totaled CNY 13,793,922,291, down from CNY 15,025,844,532 in the previous year, reflecting a decrease of 8.2%[26] - The total cash inflow from financing activities was CNY 653,296,466, compared to CNY 77,191,717 in the previous year, marking an increase of 748.5%[27] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,184, with the largest shareholder holding 41.63% of the shares[8] - The company received CNY 49,900,000 from minority shareholders in the first three quarters of 2023, compared to CNY 20,000,000 in the same period of 2022[27] Inventory and Receivables - Accounts receivable increased to RMB 11.158 billion from RMB 8.100 billion, indicating a growth in credit sales[18] - The company’s inventory rose to RMB 6.818 billion, compared to RMB 5.822 billion at the end of 2022, reflecting increased production or stockpiling[18] Financial Costs - Financial expenses for the first three quarters of 2023 were CNY -161,537,008, compared to CNY -126,851,104 in the same period of 2022, indicating an increase in financial costs[22] Other Financial Metrics - The weighted average return on net assets for Q3 2023 was 2.53%, an increase of 0.40 percentage points year-on-year[5] - The company's gross profit margin for the rail transit equipment segment was stable, with electrical equipment revenue growing by 9.63% year-on-year[13] - The company did not apply new accounting standards for the first time in 2023, as stated in the report[28]

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之內容概不負責， 對 其 準 確 性 或 完 整 性 亦 不 作 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3898） 2023年第三季度報告 本公告乃根據香港法例第571章證券及期貨條例第XIVA部項下內幕消息條文及香 港聯合交易所有限公司證券上市規則第13.09(2)和 第13.10B條的要求作出。 株 洲 中 車 時 代 電 氣 股 份 有 限 公 司（「本公司」）之 董 事 會（「董事會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（「本集團」）截 至2023年9月30日止第三季度期間按照中國企業會計準 則 編 製 的 未 經 審 計 財 務 資 料（詳 見 下 文）。 本公告分別以中、英文兩種語言編訂，如中英文版本有任何不一致，以中文版本為 準。 承董事會命 李東林 董事長 中國株洲，2023年10月26日 於本公告日期，本公司董事長兼執行董事為李東林；副董事長兼執行董事為劉可 ...

Financial Performance - The company reported a mid-year financial performance with a focus on the accuracy and completeness of the financial report, ensuring no significant omissions or misleading statements[1]. - The report period ended on June 30, 2023, and the financial data is prepared according to Chinese accounting standards[5]. - The company's operating revenue for the first half of the year reached ¥8,570,210,633, representing a year-on-year increase of 31.31%[14]. - Net profit attributable to shareholders increased by 32.52% year-on-year, amounting to ¥1,154,168,154, driven by revenue growth[16]. - Basic and diluted earnings per share both increased by 32.79% to ¥0.81[15]. - The total assets at the end of the reporting period were ¥50,389,952,338, reflecting a 3.88% increase from the previous year[14]. - The company's net assets attributable to shareholders were RMB 34.97 billion, showing a year-on-year growth of 1.27%[92]. - Research and development expenses rose to RMB 809.73 million, an increase of 16.33% compared to the previous year[93]. Corporate Governance - There were no instances of non-operational fund occupation by controlling shareholders or related parties, and no violations of decision-making procedures for external guarantees[2]. - The company has established an effective corporate governance structure to enhance accountability and transparency[120]. - The company held its 2022 annual general meeting and the first A-share and H-share meetings on June 27, 2023, with all resolutions passed without any objections[113]. - Key personnel changes include the resignation of Vice General Manager Mei Wenqing and Secretary of the Board Yan Wu, while Hu Yunqing and Yao Zhonghong were appointed as new Vice General Managers[114][115]. - The seventh board of directors and supervisory board were elected on June 27, 2023, with Li Donglin as the chairman and Liu Kean as the vice chairman[116]. Research and Development - The company has developed a total of 3,746 valid domestic and foreign registered patents to protect its core technologies as of June 30, 2023[27]. - The company achieved a total R&D investment of CNY 854,577,771, representing a 17.46% increase compared to the previous year[46]. - The proportion of R&D investment to operating income decreased to 9.97% from 11.15% in the previous year[46]. - The company has a total of 2,775 R&D personnel, accounting for 35.26% of the total workforce, with an average salary of RMB 14.2 million[63]. - The company has established a robust R&D system with over 20 laboratories covering various testing and research areas, enhancing its continuous innovation capabilities in product design, manufacturing, and testing[70]. Environmental Responsibility - The company has a commitment to environmental and social responsibility, as indicated in the report[5]. - The company invested 3.6038 million yuan in environmental protection during the reporting period[129]. - The total wastewater discharge from Zhuzhou CRRC Times Semiconductor Co., Ltd. was 499,900 tons in the first half of 2023, with a reuse volume of 91,900 tons[131]. - The company achieved 100% compliance with wastewater discharge standards in the first half of 2023[130]. - The company has committed to using clean energy and has initiated energy-saving technological upgrades to reduce energy consumption and carbon emissions[141]. Market Expansion and Strategy - The company is actively expanding into the rail transportation and new energy equipment industries, leveraging its technological research and development capabilities[21]. - The ongoing implementation of national strategies such as "dual carbon" and "transportation power" provides new opportunities for the company's growth[23]. - The market for new energy industries related to the "dual carbon" strategy is expected to grow into a multi-hundred billion market, providing significant opportunities for the company[26]. - The company is focusing on the development of green and intelligent rail transit equipment systems, aligning with the national "dual carbon" strategy[26]. - The company is committed to providing comprehensive solutions throughout the entire lifecycle of rail transit equipment, focusing on system integration and optimization[24]. Financial Management - Cash and cash equivalents at the end of the period were CNY 7,449,097,496, a decrease of 0.68% from the previous year[96]. - Trade financial assets decreased by 27.74% to CNY 4,842,100,909 due to a reduction in structured deposits[96]. - Accounts receivable increased by 22.92% to CNY 9,956,405,657, attributed to revenue recognition[96]. - The company made equity investments totaling CNY 131,694,115, a significant increase from CNY 5,000,000 in the previous year[100]. - The company's leverage ratio stands at 13.69%, which is below the policy limit of 30%[111]. Compliance and Commitments - The company guarantees that the contents of the prospectus and other disclosure materials are free from false records, misleading statements, or significant omissions, and will bear corresponding legal responsibilities[178]. - The company will publicly disclose specific reasons for any failure to fulfill commitments and apologize to shareholders and the public[186]. - The company has committed to long-term obligations since December 28, 2020, ensuring compliance with relevant regulations and responsibilities[185]. - The company will bear corresponding responsibilities as required by laws and regulations if it fails to fulfill its commitments[186]. - The company has confirmed strict adherence to the commitment, with no overdue obligations reported[193].