Financial Performance - The company reported a significant increase in revenue for the first half of 2020, with total revenue reaching RMB 5.2 billion, representing a year-on-year growth of 15%[11]. - The net profit for the same period was RMB 1.1 billion, reflecting a 10% increase compared to the previous year[11]. - The company's operating revenue for the first half of the year was ¥14,620,778,851.32, a decrease of 28.72% compared to ¥20,511,577,842.86 in the same period last year[24]. - Net profit attributable to shareholders was ¥1,774,925,442.85, down 21.74% from ¥2,267,893,086.86 year-on-year[24]. - The net cash flow from operating activities was negative at ¥972,052,222.39, compared to a negative cash flow of ¥130,168,310.24 in the previous year[24]. - Revenue for the first half of 2020 was RMB 14.621 billion, down 28.72% compared to RMB 20.512 billion in the same period last year[139]. - Net profit for the first half of 2020 was RMB 1.960 billion, a decline of 19.59% year-on-year, and a decrease of 7.91% when excluding the impact of divested real estate business from the previous year[131]. - The company’s operating costs decreased by 29.76% year-on-year, primarily due to reduced sales volume caused by the pandemic[139]. User and Market Data - User data showed an increase in active users, with the total number of users growing by 20% to 1.5 million[11]. - The company plans to expand its market presence by entering three new provinces in China by the end of 2020[11]. - The company had a backlog of orders amounting to RMB 120.016 billion as of June 30, 2020[131]. - The company’s overseas contract value increased by 25.2% year-on-year, reaching RMB 5.35 billion[131]. Research and Development - The company has allocated RMB 500 million for research and development in the next fiscal year, focusing on innovative technologies[11]. - Research and development expenses accounted for 4.09% of operating revenue, an increase of 1.24 percentage points compared to 2.85% in the previous year[24]. - The company achieved a total R&D investment of approximately ¥598 million, accounting for 4.09% of its operating revenue[57]. - The company has developed several core systems, including the Chinese high-speed rail control system and urban rail transit control systems, which are crucial for the safety and efficiency of rail operations[30]. - The company aims to leverage cutting-edge technology and increase R&D investment to achieve strategic breakthroughs in product structure and core technologies[39]. - The company has completed 361 new authorized patents, bringing the total number of effective authorized patents to 2,262[56]. - The company has registered 2,262 patents in China to protect its core technologies as of June 2020, ensuring confidentiality through specialized agreements with relevant personnel[43]. Risk Factors and Challenges - Risk factors include potential regulatory changes that could impact operations, as outlined in the risk section of the report[11]. - The company faced risks related to talent retention and technological advancement in the rapidly developing rail transit control systems industry[132]. - The overall economic environment and government investment trends in rail transit projects may impact the company's future business development[135]. Financial Position and Investments - The company maintains a strong cash position with cash reserves of RMB 2 billion, ensuring liquidity for future investments[11]. - Cash and cash equivalents decreased by 7.06% to CNY 22.31 billion from CNY 24.00 billion year-over-year[150]. - Accounts receivable increased by 4.87% to CNY 17.57 billion, attributed to delayed settlements on certain projects[150]. - Short-term borrowings surged by 203.97% to CNY 723.65 million, due to the acquisition of low-interest policy loans[150]. - Long-term borrowings increased by 10.74% to CNY 2.15 billion, facilitated by financing through pledging PPP project income rights[150]. Strategic Direction - The company adheres to a development strategy of "one main business, related diversification," expanding into areas such as engineering contracting and smart cities[30]. - The company is committed to becoming a world-class multinational group characterized by rail transit control technology[39]. - The company is positioned as the largest urban rail transit control system solution provider in China, covering nearly 110 operational and completed control system tendered urban rail lines[39]. Commitments and Compliance - The company has committed to a profit distribution policy that adheres to relevant laws and regulations, ensuring compliance with the profit distribution plan for the years 2019-2021[178]. - The company will strictly fulfill the public commitments made in the prospectus related to this issuance and actively accept social supervision[183]. - The company has confirmed strict adherence to its commitments regarding share lock-up and profit distribution policies[176]. Operational Efficiency - New product development includes the launch of an advanced signaling system, expected to enhance operational efficiency by 30%[11]. - The automatic train driving technology has been successfully implemented in various rail systems, improving punctuality, accuracy of stops, and operational energy efficiency[44]. - The comprehensive automation technology for freight railways enhances efficiency and safety, addressing significant technical challenges in freight operations[46].

Financial Performance - In 2019, the company achieved a new contract signing amount of RMB 70.61 billion, representing a year-on-year growth of 3.4%[14] - The company's operating revenue for 2019 was RMB 41.646 billion, an increase of 4.08% compared to the previous year[14] - Net profit for 2019 reached RMB 4.177 billion, reflecting a year-on-year growth of 12.38%[14] - The company's operating revenue for 2019 was approximately CNY 41.65 billion, an increase of 4.08% compared to CNY 40.01 billion in 2018[28] - Net profit attributable to shareholders for 2019 was approximately CNY 3.82 billion, up 11.95% from CNY 3.41 billion in 2018[28] - The net profit after deducting non-recurring gains and losses was approximately CNY 3.50 billion, reflecting a 6.25% increase from CNY 3.30 billion in 2018[28] - The company's total assets at the end of 2019 were approximately CNY 97.51 billion, a 22.38% increase from CNY 79.68 billion at the end of 2018[28] - The net assets attributable to shareholders at the end of 2019 were approximately CNY 41.12 billion, an increase of 42.24% from CNY 28.91 billion at the end of 2018[28] - Basic earnings per share for 2019 remained at CNY 0.38, unchanged from 2018[29] - The net cash flow from operating activities for 2019 was approximately CNY 3.37 billion, a significant recovery from a negative cash flow of CNY -1.59 billion in 2018[28] - The company's operating revenue for Q2 2019 was approximately CNY 12.63 billion, with a net profit attributable to shareholders of CNY 1.59 billion[33] - In Q4 2019, the operating revenue reached CNY 13.53 billion, while the net profit attributable to shareholders was CNY 1.00 billion[33] - The net cash flow from operating activities in Q4 2019 was CNY 3.03 billion, showing a significant recovery compared to previous quarters[33] - The total amount of non-recurring gains and losses in 2019 was CNY 314.59 million, with government subsidies contributing CNY 67.68 million[34] - The company reported a significant increase in financing cash flow, which rose by 408.62% year-on-year to CNY 8,247,476,594.75[171] - The company's operating costs for 2019 were 32.11 billion RMB, an increase of 3.82% compared to the previous year, which is lower than the revenue growth rate by 0.26 percentage points[189] - The comprehensive gross profit for the company was 9.53 billion RMB, up 4.99% from 9.08 billion RMB in the same period last year[189] Market Position and Growth - The company maintained its market leadership in the railway sector, winning key projects such as the Anjiu, Lun南, and GanShen projects[14] - The company was recognized with several awards, including the "Outstanding Promotion Unit for Comprehensive Quality Management" and the "Meritorious Enterprise" for the 70th anniversary of the founding of the country[16] - The company aims to enhance its global market influence while maintaining continuous growth in the domestic market[51] - The company is a global leader in rail transit control systems, with over 60% coverage of domestic high-speed rail control system integration projects as of the end of 2019[51] - The company has a unique competitive advantage due to its mature business model that provides integrated services for rail transit control systems[50] - The company is actively expanding its overseas market presence in response to national initiatives like the Belt and Road Initiative[147] - New contracts in the overseas market surged by 153.3% year-on-year, totaling RMB 2.41 billion[156] - The company achieved a total backlog of orders amounting to RMB 104.94 billion by the end of 2019[156] - The new contract value in the railway sector reached RMB 26.07 billion, growing by 3.9% compared to the previous year[156] Research and Development - The company made significant progress in the research and development of key technologies, including the CTCS-3+ATO and CTCS-3 autonomous RBC systems[14] - The R&D expenditure accounted for 3.85% of operating revenue, an increase of 0.40 percentage points from 3.45% in 2018[29] - The company achieved a total R&D investment of approximately CNY 1.60 billion, representing 3.85% of its operating revenue[95] - The company has a workforce of 4,235 R&D personnel, accounting for 20.99% of the total staff[95] - The company is actively developing core technologies for railway control systems, including CTCS-3 and CTCS-2+ATO systems[76] - The company has authorized a total of 1,901 patents, with 470 new patents granted during the reporting period[75] - As of the end of 2019, the company holds 1,901 registered patents in China to protect its core technologies[55] - The company has completed signal product research, enhancing safety and reliability for railway signal equipment in complex environments[142] - The company has completed 1,302 projects in the foreign application research, demonstrating industry-leading technology levels[123] Operational Efficiency and Technology - The company focuses on advanced rail transit control systems and aims to lead in smart technology development in the industry[36] - The company has established a stable and efficient business model, primarily acquiring orders through public bidding[39] - The company emphasizes centralized procurement to enhance efficiency and ensure compliance with national regulations[42] - The lifecycle of high-speed rail control systems is generally around 10 years, indicating a need for upgrades and replacements in the coming years[48] - The intelligent detection and maintenance technology for rail transit has been successfully implemented in high-speed rail, conventional rail, and urban rail transit, promoting digitalization and intelligence in maintenance operations[62] - The safety computer platform technology has achieved the highest level of functional safety certification as per international standards, ensuring high safety and reliability for train operation control systems[65] - The company has developed a comprehensive quality assurance system for rail transit safety product manufacturing, addressing risks throughout the entire production process[70] - The automatic train control system integration technology has been widely applied in high-speed rail and urban rail transit, enhancing operational safety and efficiency[62] - The company has made significant advancements in the field of railway switch conversion technology, creating an internationally leading system for high-speed switch conversion[67] - The company is committed to increasing R&D investment to achieve strategic breakthroughs in product structure and core technologies[51] Challenges and Risks - The company faced risks related to talent competition in the rapidly developing railway control system industry[158] - The company plans to continue deepening reforms and innovations in 2020 to enhance its competitiveness and sustainability[16] - The company is committed to optimizing its business structure and expanding its market presence in the railway transportation sector[156]

Financial Performance - In 2019, China Railway Signal & Communication Corporation achieved a new high in operating performance with a total new contract amount of RMB 70.61 billion, representing a year-on-year growth of 3.4%[9] - The company reported an operating revenue of RMB 41.646 billion, an increase of 4.08% compared to the previous year, and a net profit of RMB 4.177 billion, which is a year-on-year growth of 12.38%[9] - The company's operating revenue for 2019 was CNY 41.65 billion, an increase of 4.08% compared to 2018[18] - Net profit attributable to shareholders for 2019 was CNY 3.82 billion, reflecting an 11.95% increase year-over-year[18] - The net cash flow from operating activities for 2019 was CNY 3.37 billion, a significant recovery from a negative cash flow in 2018[18] - The company's total assets at the end of 2019 reached CNY 97.51 billion, a 22.38% increase from 2018[18] - The net asset attributable to shareholders increased by 42.24% to CNY 41.12 billion by the end of 2019[18] - The company's cash flow from operating activities showed a strong recovery in Q4 2019, reaching CNY 3.03 billion[21] - The company reported a total of CNY 314.59 million in non-recurring gains and losses for 2019, primarily from the disposal of a subsidiary[22] - The company’s cash flow from operating activities was RMB 3.37 billion, a significant recovery from a negative cash flow of RMB 1.59 billion in the previous year[68] - The company’s backlog of orders at the end of 2019 stood at RMB 104.94 billion[59] - The company’s operating costs rose by 3.82%, which was lower than the revenue growth rate, indicating improved cost management[70] Market Position and Strategy - The company maintained its market leadership in the railway sector, winning key projects such as the "Four Electrifications" integration for Anjiu, Lunan, Lianxu, and others[9] - The company is a global leader in rail transit control system solutions, with a focus on safety and efficiency in national rail operations[25] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[18] - The company is actively expanding its overseas market presence, leveraging the "Belt and Road" initiative to increase its global influence[54] - The urban rail transit sector in China is experiencing rapid growth, with over 3,000 km of new operational mileage expected by 2020[31] - The company maintains a strong position in the urban rail transit market, having covered nearly 90 operational lines in China[33] - The company plans to adapt its fundraising strategy to enhance financial resource deployment efficiency, pending shareholder approval[97] Research and Development - The company made significant progress in technology-driven innovation, including the trial use of CTCS-3+ATO and CTCS-3 level autonomous RBC systems[9] - Research and development expenses accounted for 3.85% of operating revenue in 2019, up from 3.45% in 2018[19] - The company is actively engaged in R&D for advanced and intelligent technologies, aiming for breakthroughs in areas such as smart urban transportation and specialized rail transit chips[25] - The company has developed a comprehensive service model that includes design integration, equipment manufacturing, and system delivery, enhancing its ability to meet diverse customer needs[32] - The company has achieved significant strategic breakthroughs in core technologies, particularly in the internationalization of China's high-speed rail standards and industrial output[34] - The company has completed the development of the core train control equipment for the ETCS system, with a total investment of 4,455 million CNY, including 519 million CNY in the current period and a cumulative investment of 2,902 million CNY[49] - The company has undertaken 39 national and provincial research projects supported by government and industry authorities[42] - The company has completed the C3+ATO and C3 level autonomous RBC trial in Beijing-Shenyang, and established the first overseas high-speed rail core technology laboratory in Europe[42] Corporate Governance and Compliance - The company appointed Ernst & Young Huaming as the domestic auditor for 2019, with an audit fee of CNY 6,600,000[118] - The company did not experience any major litigation or arbitration matters during the reporting period[120] - The company has not engaged in any major related party transactions that require disclosure under the relevant regulations[125] - The company has a long-term commitment to fulfill public commitments made in the prospectus[111] - The company will publicly disclose reasons for any failure to fulfill commitments in designated media[112] - The company has received commitments from major shareholders regarding the lock-up of their shares for 12 months from the listing date[114] Environmental and Social Responsibility - The company is committed to environmental protection and adheres to national ecological and environmental laws and regulations[145] - The company has implemented targeted poverty alleviation measures, focusing on the overall goal of poverty alleviation in Sheqi County, with a total investment in poverty alleviation projects[142] - The company has helped sell agricultural products worth 347,300 RMB in impoverished areas, promoting local industry development[142] - The company has constructed a multifunctional teaching building and assisted 65 university students from poor families[142] - The company has provided health assistance by constructing a hospital building and helping 2,762 impoverished individuals[142] - The company has improved rural infrastructure by repairing roads and installing solar street lights in impoverished villages[142] Shareholder Information - The company plans to distribute a cash dividend of RMB 2 per 10 shares to all shareholders based on a total share capital of 10,589,819,000 shares as of December 31, 2019[5] - The company distributed a cash dividend of CNY 2.0 per 10 shares, totaling CNY 2,117,963,800.00, which accounted for 55.50% of the net profit attributable to ordinary shareholders[104] - The company has a profit distribution policy to distribute profits to shareholders, strictly adhering to the review procedures of the profit distribution plan[109] - The company has seen an increase in restricted shares from various investment funds, totaling 75,629,400 shares[160] - The company has a total of 10 major shareholders, with the top three being state-owned entities, indicating a strong state influence in ownership[164] Human Resources - The company has a total of 4,235 R&D personnel, accounting for 20.99% of the total workforce[46] - The company conducted 4,599 training sessions, training a total of 62,646 individuals, including 11,848 management personnel[199] - The company has established a salary system linked to economic performance and labor productivity, focusing on attracting and retaining core talent[197] - The total pre-tax remuneration for executives and key technical personnel in 2019 amounted to CNY 1,666.75 million[182] - The company has implemented a training plan to enhance the capabilities of its workforce, including international talent development initiatives[199]

CRSC 中国通号 China Railway Signal & Communication Corporation Limited* 中 國 鐵 路 通 信 信 號 股 份 有 限 公 司 ( 在中華人民共和國註冊成立的股份有限公司 ) 股份代號：3969 2019 中期報告 * 僅供識別 重要提示 一、本公司董事會、監事會及董事、監事、高級管理人員保證中期報告內容的真實、準確、完整， 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。 二、公司全體董事出席董事會會議。 三、本中期報告未經審計。 四、公司負責人周志亮、主管會計工作負責人胡少峰及會計機構負責人（會計主管人員）邱巍聲 明：保證中期報告中財務報告的真實、準確、完整。 五、經董事會審議的報告期利潤分配預案或公積金轉增股本預案 無。 六、前瞻性陳述的風險聲明 本報告存在一些基於對未來政策和經濟走勢的主觀假設和判斷而做出的預見性陳述，受諸多可變因素影 響，實際結果或趨勢可能會與這些預見性陳述出現差異。 本報告所涉及的未來計劃、發展戰略等前瞻性描述不構成公司對投資者的實質承諾，敬請投資者注意投 資風險。 七、是否存在被控股股東及其關聯方非 ...

Financial Performance - The company achieved a new contract signing amount of RMB 68.29 billion, representing a year-on-year growth of 12.4%[7] - Operating revenue was approximately RMB 39.84 billion, an increase of 15.7% year-on-year[7] - Net profit reached approximately RMB 3.80 billion, reflecting an 8.0% year-on-year growth[7] - The company achieved a revenue of RMB 39,844.0 million in 2018, representing a growth of 15.7% compared to RMB 34,433.7 million in 2017[20] - Profit attributable to equity holders of the company was RMB 3,501.2 million, an increase of 5.8% from RMB 3,310.0 million in the previous year[20] - The group's profit before tax for the reporting period was RMB 4,598.6 million, reflecting a growth of 7.3% compared to the previous year[27] - The annual profit for the reporting period was RMB 3,795.7 million, representing an 8.0% increase year-on-year[27] Revenue Breakdown - The company's revenue from system delivery business accounted for 33.1% of total revenue, while engineering contracting contributed 28.9%[24] - Revenue from the equipment manufacturing business was RMB 6,561.6 million, a growth of 13.3%, with a gross margin of 42.6%, up 0.6 percentage points from the previous year[31] - The system delivery business generated revenue of RMB 13,202.7 million, an increase of 29.4%, with a gross margin of 12.2%, down 0.5 percentage points year-on-year[31] - The engineering contracting business reported revenue of RMB 11,516.9 million, a growth of 19.5%, with a gross margin of 13.2%, up 1.6 percentage points from the previous year[31] - Domestic market revenue was RMB 39,309.6 million, an increase of 16.8%, driven by increased government investment in rail transit construction[36] - International market revenue was RMB 534.4 million, a decrease of 31.8%, primarily due to adverse international political and economic conditions affecting project progress[36] Investment and Expenditures - The net cash flow used in operating activities for the reporting period was RMB 1,586.3 million, an increase from RMB 886.0 million in the previous year, primarily due to increased investments in tram and smart city projects and higher R&D expenditures[38] - The net cash flow used in investing activities was RMB 642.3 million, a decrease from RMB 1,729.2 million in the previous year, mainly due to a reduction in fixed-term deposits of over three months[38] - The net cash flow from financing activities was RMB 1,621.6 million, compared to a net cash outflow of RMB 140.2 million in the previous year, primarily due to proceeds from perpetual bond investments[38] - Capital expenditures reached RMB 1,070.3 million, primarily for property, plant, and equipment amounting to RMB 984.6 million[52] Assets and Liabilities - The company’s total assets increased by 30.1% to RMB 79,678.5 million, while total liabilities rose by 37.2% to RMB 49,406.5 million[20] - The company’s weighted average return on equity decreased to 13.7%, down from 14.7% in the previous year[20] - The company’s operating costs increased by 18.8% to RMB 30,931.9 million, primarily due to increased sales volume[26] - Total liabilities at the end of 2018 amounted to RMB 49,406.4 million, a 37.2% increase from RMB 36,020.0 million in 2017[43] - Trade payables and notes payable increased by 48.6% to RMB 36,018.8 million, attributed to the growth in business scale[44] Market Position and Strategy - The company maintained its leading advantage in railway communication signal system integration, with new contract amounts for key high-speed rail projects increasing by over 40%[7] - The company aims to enhance its global competitiveness and achieve sustainable development through continuous innovation and reform[10] - The group has secured approximately 40% of the contract amount in the urban rail transit signal system market, maintaining a leading position[56] - The group aims to expand its market share in intercity railway automatic driving control systems, leveraging its operational record and technical advantages[59] - The group is positioned to benefit from the rapid expansion of the smart city market, with total investment expected to reach trillions of RMB[61] Research and Development - The company allocated RMB 2,518.6 million for long-term R&D expenditures related to the rail transit control system development center[86] - The company emphasizes energy conservation and environmental protection, achieving significant results in paperless office initiatives[82] - The company has a strong technological innovation capability and is a leader in setting industry standards in railway communication signals[73] Corporate Governance - The company has established service contracts with all directors and supervisors, which can be terminated according to the terms of the contracts[120] - The company’s supervisory board has adhered to legal and regulatory requirements while fulfilling its supervisory responsibilities[169] - The company held three supervisory board meetings in 2018, with all meetings attended by the required members, ensuring compliance with regulations[170] Shareholder Information - The company will distribute a special dividend of RMB 0.20 per share (before tax) to shareholders listed on April 24, 2019, with a total payout based on the remaining distributable profits as of December 31, 2017[90] - The total issued share capital of the company as of December 31, 2018, is RMB 8,789,819,000, divided into 8,789,819,000 shares with a par value of RMB 1.00 each[101] - The company plans to issue A-shares, subject to market conditions and regulatory approvals, indicating potential future capital raising efforts[184] Compliance and Risk Management - The company is subject to various regulations, including the Railway Law and Safety Production Law of the People's Republic of China, which impact its operations[83] - The company has implemented internal controls to ensure compliance with relevant laws and regulations, with the board believing it meets major compliance requirements[83] - The company plans to strengthen its risk management system to address macroeconomic and policy changes that may impact its infrastructure business and overseas acquisitions[66]