中国通号(03969) - 2025 - 中期财报

Definitions Definitions This chapter defines key terms and abbreviations used in the report, covering important concepts such as the company, railway systems, technical standards, and the reporting period, ensuring consistent understanding of the report content - The reporting period refers to the six months ended June 30, 2025[11] - Common terms defined include A-shares, ATO (Automatic Train Operation system), ATP (Automatic Train Protection equipment), CBTC (Communication-Based Train Control system), and CTCS (China Train Control System)[9][11] Company Profile and Key Financial Indicators Company Basic Information This chapter provides the company's basic registration information, including its full Chinese and English names, abbreviations, legal representative, and registered and office addresses, offering fundamental identification for investors - The company's Chinese name is China Railway Signal & Communication Corporation Limited, abbreviated as CRSC[12] - The legal representative is Lou Qiliang[12] - The company's registered address is 20th Floor, Building A, CRSC Tower, No 1 Courtyard, Automobile Museum South Road, Fengtai District, Beijing, China[12] Contact Person and Contact Information This chapter lists the detailed contact information for the company's Board Secretary (domestic representative for information disclosure), facilitating investor inquiries and communication - The name of the Board Secretary (domestic representative for information disclosure) is Li Lianqing[13] - The contact address is 19th Floor, Building A, CRSC Tower, No 1 Courtyard, Automobile Museum South Road, Fengtai District, Beijing, China[13] - The email address is ir@crsc.cn[13] Brief Introduction to Changes in Information Disclosure and Document Placement This chapter explains the placement location for the company's semi-annual report and the designated information disclosure media and websites, ensuring transparency and accessibility of information disclosure - The company's semi-annual report is placed at the company's Board Office[14] - The newspapers selected for information disclosure include China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[14] - The websites where the semi-annual report is published are www.sse.com.cn and www.hkexnews.hk[14](index=14&type=chunk) Overview of Company Shares/Depositary Receipts This chapter outlines the listing status of the company's A-shares and H-shares, including the listing exchange, board, stock abbreviation, and code, providing basic securities information for investors - The company's A-shares are listed on the STAR Market of the Shanghai Stock Exchange, with stock code 688009[14] - The company's H-shares are listed on the Main Board of the Hong Kong Stock Exchange, with stock code 03969[14] Company's Key Accounting Data and Financial Indicators This chapter presents the company's key accounting data and financial indicators for the first half of 2025, comparing them with the same period last year, showing stable revenue and net profit growth, but a shift from net cash inflow to net cash outflow from operating activities Key Accounting Data (January-June 2025 vs. Same Period Last Year) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 14,664,691,458.72 | 14,250,309,285.72 | 2.91 | | Total Profit | 2,284,162,314.73 | 2,262,530,338.79 | 0.96 | | Net Profit Attributable to Shareholders of Listed Company | 1,620,509,774.40 | 1,599,063,876.43 | 1.34 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 1,558,511,840.27 | 1,560,294,219.45 | -0.11 | | Net Cash Flow from Operating Activities | -4,405,436,307.68 | 2,972,717,564.11 | Not Applicable | Key Financial Indicators (January-June 2025 vs. Same Period Last Year) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.15 | 0.15 | – | | Diluted Earnings Per Share (RMB/share) | 0.15 | 0.15 | – | | Weighted Average Return on Net Assets (%) | 3.38 | 3.42 | Decrease of 0.04 percentage points | | R&D Investment as % of Operating Revenue (%) | 5.79 | 5.54 | Increase of 0.25 percentage points | - Net cash flow from operating activities shifted from a net inflow in the prior year period to a net outflow in the current reporting period, primarily due to changes in net increase in customer deposits and interbank placements[18][22] Non-recurring Gains and Losses Items and Amounts This chapter lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling RMB 61.99 million, primarily comprising government grants and gains/losses from disposal of financial assets Non-recurring Gains and Losses Items and Amounts (January-June 2025) | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -485,242.79 | | Government grants recognized in current profit or loss | 98,833,265.75 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and disposal gains and losses | 2,021,346.20 | | Gains and losses from debt restructuring | 954,951.65 | | Other non-operating income and expenses | 5,453,084.31 | | Less: Income tax impact | 24,469,176.75 | | Impact on minority interests (after tax) | 20,310,294.24 | | Total | 61,997,934.13 | Explanation of Non-GAAP Performance Indicators This chapter explains the company's use of net cash flow from operating activities, excluding the net increase in customer deposits and interbank placements, as a non-GAAP metric to more accurately reflect core business cash flow, noting a slight decrease in net outflow for this period compared to the prior year Net Cash Flow from Operating Activities Excluding Net Increase in Customer Deposits and Interbank Placements | Indicator | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Net cash flow from operating activities | -4,405,436,307.68 | 2,972,717,564.11 | | Adjustment item: Net increase in customer deposits and interbank placements | -2,503,569,849.97 | 4,922,528,718.59 | | Net cash flow from operating activities after adjustment | -1,901,866,457.71 | -1,949,811,154.48 | - The net cash outflow from operating activities, excluding the net increase in customer deposits and interbank placements, decreased by 2.46% in the current period compared to the prior year, indicating a minor change[31] - The company will continuously enhance its operating cash flow generation capability by clearing municipal housing construction business, strengthening accounts receivable collection, and other measures[43] Management Discussion and Analysis Description of the Company's Industry and Main Business During the Reporting Period The company focuses on "intelligent control" as its core technology, targeting both "rail transit" and "low-altitude economy" sectors, consolidating its full industry chain advantages in rail transit while actively building a low-altitude economy industrial landscape through technological innovation to serve national strategic needs - The company's strategy focuses on "intelligent control" as its fundamental technology, developing both "rail transit" and "low-altitude economy" sectors[32] - In the rail transit sector, the company consolidates its "three-in-one" full industry chain advantage, encompassing engineering design, control system equipment, and engineering technical services[32] - In the low-altitude economy sector, the company is building an industrial ecosystem of "three industries and one state," covering low-altitude airspace management, drone manufacturing, and service operations[32] - In low-altitude economy core technology R&D, the company has established a "1+4" joint innovation system with an academician team, achieving breakthroughs in three technologies, including the Intelligent Low-Altitude Airspace Management System (ID-Space)[34] Discussion and Analysis of Operating Performance In the first half of 2025, the company's operating revenue increased by 2.91% to RMB 14.67 billion, with significant growth in urban rail and overseas business; new contract value decreased by 16.44% year-on-year, though new contracts in railway and urban rail sectors grew, while the company actively expanded into the low-altitude economy market and anticipates continued dual-track development in the second half Operating Revenue by Segment (First Half 2025) | Segment | Operating Revenue (billion RMB) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Railway | 8.32 | -7.87 | | Urban Rail | 3.92 | 12.85 | | Overseas | 0.94 | 55.92 | | EPC and Others | 1.48 | 29.93 | | Total | 14.67 | 2.91 | New Contract Value by Segment (First Half 2025) | Segment | New Contract Value (billion RMB) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Railway | 11.14 | 12.64 | | Urban Rail | 3.77 | 26.51 | | Overseas | 1.88 | -47.16 | | EPC and Others | 0.75 | -83.74 | | Low-Altitude Economy | 0.03 | - | | Total | 17.57 | -16.44 | - As of the end of the first half of 2025, the company's order backlog amounted to RMB 117.56 billion[37] - Contract value for high-speed rail renovation projects increased by 74.86% year-on-year, and the company maintained its leading market share in urban rail transit[38] - The company secured major overseas projects, including the Dubai Metro Blue Line and the Perth HCS renovation in Australia, maintaining a strong operating performance[39] - Actively developing the domestic low-altitude economy market, the company has provided services in 49 scenarios across 34 cities, with cumulative flight hours of approximately 17,000 hours[40] - Looking ahead to the second half, the company will focus on the "rail transit + low-altitude economy" dual-track strategy, aiming for stable growth in railway market share, full lifecycle management of urban rail new construction, operation & maintenance, and renovation projects, and accelerating R&D and iteration of core low-altitude economy products[41] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness is reflected in its leading market position, outstanding technological innovation capabilities, extensive engineering project management experience, full industry chain one-stop service capability, highly reliable and safe core products and services, and a research talent team that fosters innovation - The company holds approximately 40% market share in domestic urban rail transit control systems, with operations covering over 80% of operational and under-construction lines nationwide[45] - With over 5,500 registered patents, the company has achieved complete independent intellectual property rights and 100% localization of core train operation control technologies and products[46] - The company possesses high-level innovation platforms, including 3 postdoctoral research workstations, 3 academician workstations, and 12 national and industry innovation platforms[47] - The company provides integrated rail transit control system services, including investment and financing, design and integration, equipment manufacturing, system delivery, supporting engineering construction, and maintenance[50] - 4,927 employees are engaged in scientific research and development, accounting for 25.70% of the total workforce, with 45.36% holding postgraduate degrees or above[52] Core Technologies, Their Advanced Nature, and Changes During the Reporting Period The company specializes in rail transit control systems, holding 5,522 authorized patents and 55 core technologies covering train operation control, automatic driverless systems, and freight railway integrated automation, with 11 new core technologies added during the reporting period, fully supporting the development of core rail transit systems - The company holds 5,522 authorized patents in China, including 3,405 authorized invention patents[55] - Core technologies include 55 items such as train operation control technology, automatic driverless train technology, freight railway integrated automation technology, traffic command automation technology, rail transit intelligent inspection and maintenance technology, control system integration technology, and safety computer platform technology[56][57][59][61][62][64][65][67][68][69][70][72][73][75][76][78][79][81][83][84][86][87][89][90][91][92][93][95][96][97][98][99][100][101][103][104][106][107][108][109][110] - This period saw the addition of 11 core technologies, including railway 5G-R interface monitoring system and its key technologies, electrical intelligent operation and maintenance platform technology, multi-source train positioning technology integrating Beidou, fully automatic online coupling and uncoupling technology, equipment health autonomous analysis technology, fault emergency organization guidance technology, multi-modal large model intelligent analysis technology, multi-source data fusion artificial intelligence analysis technology, video surveillance system digital intelligence application technology, and monitoring video and geographic information fusion technology[111] R&D Achievements During the Reporting Period During the reporting period, the company achieved significant R&D results in basic and forward-looking research, overseas engineering construction, national strategic support, and railway and smart urban rail technology development, including the successful opening of the Jakarta-Bandung High-Speed Railway, development of CR450 on-board equipment, and release of digital urban rail solutions, along with new patents and scientific awards - In basic and forward-looking research, the company completed the construction of a rail transit electromagnetic environment effect research and testing platform, and for the first time achieved dynamic levitation tests of a high-speed maglev operation control system under low vacuum conditions[115] - In supporting overseas engineering construction, the Jakarta-Bandung High-Speed Railway, equipped with the company's independent CTCS-3 level control system, was successfully opened, and the company secured the Dubai Blue Line communication signal system integration contract project[117] - In supporting national major strategies, the company contributed to the "CR450 Scientific and Technological Innovation Project" by developing key technical equipment and completing the installation of CR450 on-board equipment[118] - In promoting smart urban rail construction, the company released the "Xihe" digital urban rail solution, and the urban rail train autonomous operation control system (TACS) has been put into commercial operation on Shenzhen Metro Line 20[123] - During the reporting period, 604 new patent applications were filed (including 579 invention patents), and 261 new patents were granted (including 243 invention patents)[127][129] R&D Investment Table The company's R&D investment totaled RMB 848.93 million in the first half of 2025, a year-on-year increase of 7.61%, accounting for 5.79% of operating revenue, demonstrating the company's continuous increase in technological innovation investment R&D Investment (January-June 2025 vs. Same Period Last Year) | Indicator | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 802,855,676.42 | 750,408,885.34 | 6.99 | | Capitalized R&D Investment | 46,076,401.09 | 38,521,006.42 | 19.61 | | Total R&D Investment | 848,932,077.51 | 788,929,891.76 | 7.61 | | Total R&D Investment as % of Operating Revenue (%) | 5.79 | 5.54 | Increase of 0.25 percentage points | | Capitalization Ratio of R&D Investment (%) | 5.43 | 4.88 | Increase of 0.55 percentage points | - The increase in R&D expenses is primarily due to the company's focus on strengthening technological innovation and continuously increasing R&D investment[186] R&D Project Status The company has 41 ongoing R&D projects with an estimated total investment of RMB 2.30 billion, a current period investment of RMB 294.82 million, and a cumulative investment of RMB 1.76 billion; these projects cover new-generation dispatching systems, heavy-haul freight train self-organizing network control, and autonomous train operation control systems, with many achieving phased results and entering application - The company has 41 ongoing R&D projects, with an estimated total investment of RMB 2.30 billion[169] - The current period's investment totaled RMB 294.82 million, with a cumulative investment of RMB 1.76 billion[169] - The new-generation dispatching system R&D project has been applied in high-speed railways of Shanghai Bureau and ordinary speed railways of Qinghai-Tibet Company[134] - The autonomous train operation control system development project has been commercially operated on Shenzhen Line 20 and completed 33-car trial runs on Shanghai Lines 3 and 4[137] - The "Xihe" digital urban rail solution research project has completed the release of its laboratory-level conceptual prototype[157] R&D Personnel Information As of June 30, 2025, the company has 4,927 R&D personnel, accounting for 25.70% of the total workforce, with over 45% holding postgraduate degrees or above, providing a solid talent foundation for the company's technological innovation R&D Personnel Basic Information (June 30, 2025 vs. Same Period Last Year) | Indicator | Current Period | Prior Year Period | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 4,927 | 4,309 | | R&D Personnel as % of Total Company Personnel (%) | 25.70 | 22.74 | | Total R&D Personnel Compensation (million RMB) | 464.80 | 374.45 | | Average R&D Personnel Compensation (million RMB) | 0.09 | 0.09 | R&D Personnel Education Level (June 30, 2025) | Education Level | Number of Persons | Proportion (%) | | :--- | :--- | :--- | | Doctoral Candidates | 149 | 3.02 | | Master's Candidates | 2,086 | 42.34 | | Bachelor's Degree | 2,502 | 50.78 | | Associate Degree | 190 | 3.86 | | Total | 4,927 | 100 | R&D Personnel Age Structure (June 30, 2025) | Age Range | Number of Persons | Proportion (%) | | :--- | :--- | :--- | | 35 and below | 2,485 | 50.44 | | 36 to 40 | 1,125 | 22.83 | | 41 to 45 | 750 | 15.22 | | 46 to 50 | 337 | 6.84 | | 51 to 54 | 157 | 3.19 | | 55 to 59 | 73 | 1.48 | | Total | 4,927 | 100 | Risk Factors The company faces multiple risks across core competitiveness, operations, finance, industry, and the macro environment; core competitiveness risks stem from new technology R&D challenges, operational risks include intensified market competition and overseas market uncertainties, financial risks involve long project settlement cycles, industry risks relate to market tightening and immature emerging industries, and macro environmental risks are influenced by global economic conditions - Core Competitiveness Risk: The integration of new-generation information technology with traditional control systems poses higher demands on the company's technological innovation, and slow R&D progress could impact its leading innovative position[175] - Operational Risk: New urban rail transit line construction is tightening domestically, intensifying market competition; political instability or fiscal constraints in some target countries abroad increase the difficulty of market expansion[176] - Financial Risk: Some railway, urban rail, and infrastructure construction projects have long construction cycles, large investments, slow settlements, and delayed recoveries, which may adversely affect current period profits[177] - Industry Risk: New railway line mileage is decreasing, and urban rail transit market investment plans are tightening; the low-altitude economy industry transformation and upgrading is not yet mature, and its effectiveness will take time to materialize[178] - Macro Environmental Risk: The global political and economic landscape is undergoing profound changes, and the domestic economy faces numerous challenges, such as local government debt issues and insufficient effective demand[179] Major Operating Performance During the Reporting Period In the first half of 2025, the company's operating revenue increased by 2.91% to RMB 14.67 billion, and net profit increased by 0.13% to RMB 1.86 billion; this chapter details the reasons for changes in major financial statement items, breaks down main business performance by business segment, end market, and region, and discloses asset, liability, and investment status - In the first half of 2025, the company achieved operating revenue of RMB 14.67 billion, a year-on-year increase of 2.91%; net profit was RMB 1.86 billion, a year-on-year increase of 0.13%[181] Analysis Table of Changes in Financial Statement Items This chapter analyzes the year-on-year changes in major financial statement items for the first half of 2025; operating revenue and cost changes were minor, selling expenses slightly decreased due to travel and transportation costs, R&D expenses increased due to greater investment in technological innovation, and net cash flow from operating activities shifted from net inflow to net outflow primarily due to changes in customer deposits and interbank placements Analysis of Changes in Financial Statement Items (January-June 2025 vs. Same Period Last Year) | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 14,664,691,458.72 | 14,250,309,285.72 | 2.91 | Minor change | | Operating Cost | 10,446,705,876.05 | 10,080,227,231.12 | 3.64 | Minor change | | Selling Expenses | 332,206,725.67 | 347,731,564.37 | -4.46 | Slight decrease in travel and transportation expenses | | R&D Expenses | 802,855,676.42 | 750,408,885.34 | 6.99 | Strengthen technological innovation, continuous increase in R&D investment | | Net Cash Flow from Operating Activities | -4,405,436,307.68 | 2,972,717,564.11 | Not Applicable | Change in net increase in customer deposits and interbank placements | | Net Cash Flow from Investing Activities | 95,530,652.87 | -474,572,983.61 | Not Applicable | Change in time deposits maturing in over three months | | Net Cash Flow from Financing Activities | 2,711,245,399.37 | -1,723,476,773.48 | Not Applicable | Obtained entrusted loans in current period and repaid bank loans in prior year period | Detailed Explanation of Significant Changes in Company Business Type, Profit Structure, or Profit Sources During the Current Period This chapter details the changes in revenue, cost, and gross margin of the company's main business, segmented by business type, end market, and region; engineering general contracting and equipment manufacturing revenue grew significantly, urban rail and overseas business revenue also increased, but overseas business gross margin declined Main Business by Segment (January-June 2025 vs. Same Period Last Year) | Segment | Operating Revenue | Operating Cost | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Rail Transit Control System | 13,184,956,323.93 | 9,126,169,507.02 | 30.78 | 0.56 | 0.84 | Decrease of 0.20 percentage points | | Equipment Manufacturing | 3,178,733,694.52 | 2,004,248,893.81 | 36.95 | 9.34 | 6.30 | Increase of 1.81 percentage points | | Design and Integration | 5,845,521,973.06 | 3,574,033,253.84 | 38.86 | -2.22 | -2.30 | Increase of 0.05 percentage points | | System Delivery Services | 4,160,700,656.35 | 3,547,887,359.37 | 14.73 | -1.55 | 1.18 | Decrease of 2.30 percentage points | | Engineering General Contracting | 1,356,100,485.62 | 1,274,112,695.69 | 6.05 | 23.46 | 25.03 | Decrease of 1.18 percentage points | | Other | 123,634,649.17 | 46,423,673.34 | 62.45 | 205.51 | 313.37 | Decrease of 9.80 percentage points | Main Business by End Market (January-June 2025 vs. Same Period Last Year) | End Market | Operating Revenue | Operating Cost | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Railway | 8,324,371,730.47 | 5,717,506,400.84 | 31.32 | -7.87 | -9.55 | Increase of 1.28 percentage points | | Urban Rail | 3,916,111,571.26 | 2,664,788,493.21 | 31.95 | 12.85 | 14.55 | Decrease of 1.01 percentage points | | Overseas Business | 944,473,022.20 | 743,874,612.97 | 21.24 | 55.92 | 84.95 | Decrease of 12.36 percentage points | | Engineering General Contracting | 1,356,100,485.62 | 1,274,112,695.69 | 6.05 | 23.46 | 25.03 | Decrease of 1.18 percentage points | | Other | 123,634,649.17 | 46,423,673.34 | 62.45 | 205.51 | 313.37 | Decrease of 9.80 percentage points | Main Business by Region (January-June 2025 vs. Same Period Last Year) | Region | Operating Revenue | Operating Cost | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China | 13,720,218,436.52 | 9,702,831,263.08 | 29.28 | 0.55 | 0.26 | Increase of 0.21 percentage points | | Other Countries and Regions | 944,473,022.20 | 743,874,612.97 | 21.24 | 55.92 | 84.95 | Decrease of 12.36 percentage points | - Revenue from engineering general contracting business increased by 23.46% year-on-year, primarily due to increased performance progress of projects undertaken by the company in earlier periods[191] - Overseas business revenue increased by 55.92% year-on-year, mainly due to the company's continuous progress on overseas projects such as the Guinea Massi Railway project, leading to increased revenue recognition compared to the prior year[193] Analysis of Assets and Liabilities This chapter analyzes the changes in the company's assets and liabilities at period-end; total assets and net assets slightly decreased, notes receivable and customer deposits & interbank placements decreased, while non-current assets due within one year, other payables, and long-term borrowings significantly increased Major Asset and Liability Changes (June 30, 2025 vs. December 31, 2024) | Item Name | Current Period End (RMB) | Change from Prior Year End (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Monetary Funds | 20,193,677,411.84 | -10.56 | ╱ | | Notes Receivable | 702,458,770.16 | -36.44 | Decrease in accepted bills received and maturity of bills at period start | | Net Assets Attributable to Shareholders of Listed Company | 47,843,947,213.64 | -0.38 | ╱ | | Total Assets | 115,509,510,701.90 | -2.02 | ╱ | | Non-current Assets Due Within One Year | 259,408,865.58 | 73.84 | Increase in engineering quality guarantees | | Short-term Borrowings | 86,984,964.66 | -39.37 | Decrease in discounted bills not yet due but cannot be derecognized in current period | | Customer Deposits and Interbank Placements | 498,522,685.69 | -83.39 | Decrease in deposits from CRSC Group to finance company in current period | | Other Payables | 3,758,701,193.28 | 90.41 | Dividends payable to shareholders not yet paid | | Non-current Liabilities Due Within One Year | 283,649,070.37 | 49.64 | Increase in long-term borrowings due within one year | | Long-term Borrowings | 6,048,917,940.69 | 81.43 | CRSC Group provided new entrusted loans of RMB 2.5 billion to the company in current period | - As of the end of the reporting period, the company's total assets were RMB 115.51 billion, a 2.02% decrease from the beginning of the year; net assets attributable to shareholders of the listed company were RMB 47.84 billion, a 0.38% decrease from the beginning of the year[21] Analysis of Investment Status This chapter analyzes the company's investment status; as of the end of the reporting period, long-term equity investments increased by 11.62% to RMB 2.02 billion, and other equity instrument investments reached RMB 1.44 billion, with new purchases of RMB 232 million in the current period - As of the end of the reporting period, the company's long-term equity investments amounted to RMB 2.02 billion, an increase of RMB 210 million from the beginning of the year, representing an 11.62% increase[210] Financial Assets Measured at Fair Value (June 30, 2025) | Asset Category | Beginning Balance (RMB) | Amount Purchased in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | 1,212,543,806.03 | 232,000,000.00 | 1,444,543,806.03 | Other Disclosure Matters This chapter discloses the use of H-share raised funds, with RMB 8.54 billion utilized as of June 30, 2025, and plans to change the use of some funds; additionally, the company has 19,172 employees and has established comprehensive performance appraisal and compensation systems - The total H-share raised funds were approximately RMB 9.10 billion, with RMB 8.54 billion used as of June 30, 2025[216] - The raised funds were primarily used for the construction of rail transit R&D centers and scientific research projects (RMB 2.73 billion), fixed asset investments (RMB 1.82 billion), PPP project investments (RMB 1.25 billion), and supplementing working capital (RMB 2.62 billion)[216] - The remaining RMB 568 million, originally intended for PPP project investments, is planned to be reallocated for general domestic and overseas purposes (supplementing working capital), pending shareholder approval[216] - As of June 30, 2025, the company had 19,172 full-time employees and has established a comprehensive performance appraisal system and a compensation system guided by employee performance and capabilities[217] Corporate Governance, Environment, and Social Responsibility Changes in Company Directors, Supervisors, Senior Management, and Core Technical Personnel This chapter discloses changes in the company's directors, supervisors, and senior management, including Luo Jing's election as employee director, and the departures of Zhao Xiaodong and Zhang Quan, while also clarifying the criteria for identifying core technical personnel - Luo Jing was elected as an employee director[219] - Zhao Xiaodong resigned as Vice President, and Zhang Quan resigned as Executive Director[219] - The company's core technical personnel are comprehensively identified based on factors such as their professional capabilities, research achievements, leadership in major projects, work background, and educational qualifications[220] Profit Distribution or Capital Reserve Conversion Plan This chapter explicitly states that the company has no proposed profit distribution plan or capital reserve conversion to share capital plan for the semi-annual period - The proposed profit distribution plan or capital reserve conversion to share capital plan for the semi-annual period is "None"[221] Company Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact This chapter states that the company had no implementation or progress of equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company has no equity incentive plans, employee stock ownership plans, or other incentive measures[224] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law This chapter discloses that one of the company's subsidiaries is included in the list of enterprises required to disclose environmental information by law and provides an index for querying its environmental information report - One of the company's subsidiaries (Chengdu Railway Communication Equipment Co, Ltd) is included in the list of enterprises required to disclose environmental information by law[225] - The environmental information disclosure report can be queried on the "Enterprise Environmental Information Disclosure System (Sichuan)"[225] Specific Information on Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts The company has achieved remarkable results in consolidating poverty alleviation and promoting rural revitalization, receiving the highest rating of "Excellent" in 2024, and investing RMB 2 million in aid funds in the first half of 2025, focusing on developing traditional Chinese medicine industries and e-commerce to support rural economic development - The company was rated "Excellent," the highest grade, in the 2024 central enterprise targeted poverty alleviation performance assessment[225] - In the first half of 2025, CRSC Group invested RMB 2 million in gratuitous assistance funds[225] - Key efforts include promoting the development of traditional Chinese medicine industries such as mugwort, helping to expand planting scale and extend industrial chains[225] - The company established a CRSC e-commerce live streaming base and actively carried out e-commerce activities to assist farmers, with a case successfully selected as a typical case in the "Blue Book on Central Enterprises Assisting Rural Revitalization (2024)"[225] Corporate Governance Practices The company is committed to maintaining a high level of corporate governance, has established an effective corporate oversight structure, and continuously reviews and improves internal controls and corporate governance mechanisms, strictly adhering to the Hong Kong Stock Exchange's Corporate Governance Code - The company is committed to maintaining a high level of corporate governance to protect shareholder interests and enhance corporate value and accountability[226] - The company has established an effective corporate oversight structure and strictly complies with all applicable code provisions of the Corporate Governance Code contained in Appendix C1 of the Listing Rules[226] Repurchase, Sale, or Redemption of the Company's Listed Securities This chapter confirms that the company and its subsidiaries did not engage in any repurchase, sale, or redemption of listed securities during the reporting period and held no treasury shares at period-end - During the reporting period, the company and its subsidiaries did not engage in any repurchase, sale, or redemption of the company's listed securities under the Listing Rules[227] - As of the end of the reporting period, the company and its subsidiaries held no treasury shares[228] Significant Matters Fulfillment of Commitments This chapter details the fulfillment of commitments by the company and its controlling shareholder regarding profit distribution, avoidance of horizontal competition, standardization of related-party transactions, and restrictive measures for unfulfilled commitments, confirming that all commitments have been strictly adhered to - The company commits to strictly distribute profits to shareholders in accordance with laws, regulations, and the profit distribution policy stipulated in the company's articles of association[231] - The controlling shareholder, CRSC Group, commits to avoid horizontal competition, not to engage in or participate in businesses that compete with the company's main business, and to prioritize offering new business opportunities to the company[233][234][235] - CRSC Group commits to standardize related-party transactions, minimize related-party transactions with the company, and ensure fair pricing[238] - The company, its controlling shareholder, and its directors, supervisors, and senior management commit that if they fail to fulfill relevant public commitments, they will publicly explain the reasons and take supplementary commitments or compensation measures[240][242][247] - The company commits not to use the proceeds from the global offering to fund or assist activities related to sanctioned countries or entities, to avoid facing sanction risks[251][252] Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period This chapter confirms that there was no non-operating occupation of company funds by the controlling shareholder and other related parties during the reporting period - During the reporting period, there was no non-operating occupation of funds by the controlling shareholder and other related parties[254] Irregular Guarantees This chapter confirms that the company did not provide external guarantees in violation of prescribed decision-making procedures during the reporting period - During the reporting period, there were no external guarantees provided in violation of prescribed decision-making procedures[6][254] Semi-Annual Report Audit Status This chapter explicitly states that this semi-annual report has not been audited - This semi-annual report has not been audited[4][254] Major Litigation and Arbitration Matters This chapter confirms that the company had no major litigation or arbitration matters during the reporting period - The company had no major litigation or arbitration matters during this reporting period[254] Major Related-Party Transactions This chapter details the company's major related-party transactions with its controlling shareholder and its subsidiaries, primarily involving deposits, loans, and other financial services provided by the finance company, and lists the amounts and interest rate ranges of these transactions Related-Party Deposit Business (January-June 2025) | Related Party | Related Relationship | Maximum Daily Deposit Limit (RMB) | Deposit Interest Rate Range | Beginning Balance (RMB) | Total Deposits in Current Period (RMB) | Total Withdrawals in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China Railway Signal & Communication Corporation Limited and its subsidiaries | Controlling shareholder and its subsidiaries | 9,600,000,000.00 | 0.1%-1.65% | 3,001,024,492.94 | 1,848,800,869.61 | 4,352,482,919.58 | 497,342,442.97 | Related-Party Loan Business (January-June 2025) | Related Party | Related Relationship | Loan Limit (RMB) | Loan Interest Rate Range | Beginning Balance (RMB) | Total Loans in Current Period (RMB) | Total Repayments in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China Railway Signal & Communication Corporation Limited and its subsidiaries | Controlling shareholder and its subsidiaries | 200,000,000.00 | 2.11%-3.5% | – | – | – | – | Related-Party Credit Business or Other Financial Business (January-June 2025) | Related Party | Related Relationship | Business Type | Total Amount (RMB) | Actual Amount Incurred (RMB) | | :--- | :--- | :--- | :--- | :--- | | China Railway Signal & Communication Corporation Limited and its subsidiaries | Controlling shareholder and its subsidiaries | Other financial services | 15,000,000.00 | – | Major Contracts and Their Performance This chapter discloses the major guarantee situations of the company and its subsidiaries during the reporting period; as of June 30, 2025, the company's guarantee balance for its subsidiaries totaled RMB 980.44 million, accounting for 2.04% of net assets, with RMB 668.42 million provided for subsidiaries with a debt-to-asset ratio exceeding 70% - The total amount of guarantees provided to subsidiaries during the reporting period was RMB 287.55 million[269] - The total guarantee balance for subsidiaries at the end of the reporting period was RMB 980.44 million[269] - The total guarantee amount accounted for 2.04% of the company's net assets[270] - The amount of guarantees provided to guaranteed entities with a debt-to-asset ratio exceeding 70% was RMB 668.42 million[270] - The company has no guarantees provided to its controlling shareholder, actual controller, or their related parties[270] Explanation of Progress in Use of Raised Funds This chapter details the overall use of the company's H-share raised funds and the specifics of investment projects; as of the end of the reporting period, cumulative raised funds invested amounted to RMB 5.86 billion, with an investment progress of 56.63%; some investment projects are delayed or have proposed changes in use, and cash management of idle raised funds is also disclosed Overall Use of Raised Funds (As of Reporting Period End) | Indicator | Amount (RMB) | | :--- | :--- | | Net Raised Funds | 10,354,342,373.23 | | Cumulative Raised Funds Invested as of Reporting Period End | 5,863,397,534.65 | | Investment Progress as of Reporting Period End (%) | 56.63 | Detailed Use of Raised Investment Projects (As of Reporting Period End) | Project Name | Planned Investment of Raised Funds (RMB) | Cumulative Raised Funds Invested as of Reporting Period End (RMB) | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | | Advanced and Intelligent Technology R&D Project | 4,600,000,000.00 | 2,693,308,905.45 | 58.55 | | Advanced and Intelligent Manufacturing Base Project (Changsha Industrial Park) | 2,500,000,000.00 | 25,350,000.00 | 1.01 | | Informatization Construction Project | 300,000,000.00 | 148,804,601.00 | 49.60 | | Supplement Working Capital | 2,954,342,373.23 | 2,995,934,028.2 | 101.41 | - The Advanced and Intelligent Manufacturing Base Project (Changsha Industrial Park) is proposed to terminate the use of raised funds for its continuation, with the remaining funds to be partially reallocated to new investment projects, due to rapid market development, changes in external environment, and the tram industry's development and market prospects falling short of expectations[275] - The Advanced and Intelligent Technology R&D Project's expected completion date is extended to December 2026, and the Informatization Construction Project's expected completion date is extended to June 2026[281] Cash Management of Idle Raised Funds (As of June 30, 2025) | Approved Effective Deliberation Limit (million RMB) | Cash Management Balance at Period End (million RMB) | Interest as of June 30, 2025 (million RMB) | | :--- | :--- | :--- | | 2,700 | 2,680 | 346.58 | Review of Interim Report by Audit and Risk Management Committee This chapter states that the company's Audit and Risk Management Committee has reviewed the unaudited interim condensed consolidated financial statements, interim results announcement, and interim report for the six months ended June 30, 2025 - The company's Audit and Risk Management Committee has reviewed the unaudited interim condensed consolidated financial statements, interim results announcement, and interim report for the six months ended June 30, 2025[289] - On August 27, 2025, Mr Yao Guiqing was appointed as a member of the Audit and Risk Management Committee[291] Subsequent Events This chapter confirms that no other significant subsequent events occurred from the end of the reporting period to the date of this report - Except as disclosed in this report, no other significant subsequent events occurred from June 30, 2025, to the date of this report[290] Share Changes and Shareholder Information Share Capital Changes This chapter states that the company's total ordinary share capital and share capital structure remained unchanged during the reporting period - During the reporting period, the company's total ordinary share capital and share capital structure remained unchanged[295] Shareholder Information This chapter discloses that as of the end of the reporting period, the company had 65,030 ordinary shareholders and 205 H-share shareholders, and details the shareholdings of the top ten shareholders, with China Railway Signal & Communication Corporation Limited as the largest shareholder - As of the end of the reporting period, the total number of ordinary shareholders was 65,030, and H-share shareholders was 205[300][301] Top Ten Shareholders' Shareholdings (As of June 30, 2025) | Shareholder Name | Number of Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China Railway Signal & Communication Corporation Limited | 6,614,216,000 | 62.46 | State-owned Legal Person | | HKSCC NOMINEES LIMITED | 1,967,804,700 | 18.58 | Overseas Legal Person | | China Merchants Bank Co, Ltd - Huaxia SSE STAR Market 50 ETF | 142,113,973 | 1.34 | Other | | Hong Kong Securities Clearing Company Limited | 108,838,403 | 1.03 | Other | | Industrial and Commercial Bank of China Co, Ltd - E Fund SSE STAR Market 50 ETF | 107,055,082 | 1.01 | Other | | China National Machinery Industry Corporation | 63,507,192 | 0.60 | State-owned Legal Person | | Industrial and Commercial Bank of China Co, Ltd - Huatai-PineBridge CSI 300 ETF | 46,467,463 | 0.44 | Other | | China Railway Investment Group Co, Ltd | 34,188,000 | 0.32 | State-owned Legal Person | | China Construction Bank Co, Ltd - E Fund CSI 300 ETF Initiated Securities Investment Fund | 32,912,463 | 0.31 | Other | | Industrial and Commercial Bank of China Co, Ltd - Huaxia CSI 300 ETF | 24,088,363 | 0.23 | Other | - The largest shareholder, China Railway Signal & Communication Corporation Limited, has no associated relationship with the other aforementioned shareholders, nor do they constitute parties acting in concert[305] Securities Transactions by Directors and Supervisors This chapter confirms that all company directors and supervisors complied with the company's code for securities transactions during the reporting period - All company directors and supervisors have confirmed that, for the six months ended June 30, 2025, they complied with the standards set out in the code of conduct[315] Changes in Controlling Shareholder or Actual Controller This chapter confirms that there were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the controlling shareholder or actual controller during the reporting period[316] Bond-Related Information Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments This chapter discloses the basic information of the company's two tranches of technology innovation perpetual corporate bonds issued in 2024, including bond names, codes, issue dates, maturity dates, bond balances, and interest rates, and explains their interest payment and renewal terms Corporate Bond Basic Information (As of June 30, 2025) | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (RMB) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China Railway Signal & Communication Corporation Limited 2024 Publicly Issued Technology Innovation Perpetual Corporate Bonds (Tranche 1) (Type 1) | CRSC YK01 | 242097.SH | 2024/12/6–2024/12/9 | 2029–12–09 | 1,500,000,000.00 | 2.2 | | China Railway Signal & Communication Corporation Limited 2024 Publicly Issued Technology Innovation Perpetual Corporate Bonds (Tranche 1) (Type 2) | CRSC YK02 | 242098.SH | 2024/12/6–2024/12/9 | 2034–12–09 | 1,000,000,000.00 | 2.4 | - The bonds accrue interest on a simple interest basis, with annual interest payments[320] - The issuer has the right to defer interest payments and to extend the maturity date[320] Corporate Bond Raised Funds Status This chapter confirms that all of the company's corporate bonds did not involve the use or rectification of raised funds during the reporting period - All of the company's corporate bonds did not involve the use or rectification of raised funds during the reporting period[328] Key Accounting Data and Financial Indicators This chapter lists the company's bond-related key financial indicators, including current ratio, asset-liability ratio, EBITDA to total debt ratio, and interest coverage ratio; notably, the cash interest coverage ratio significantly decreased due to a substantial reduction in net cash flow from operating activities Key Accounting Data and Financial Indicators (As of June 30, 2025 vs. End of Prior Year) | Key Indicator | Current Period End | Prior Year End | Change from Prior Year End (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 1.53 | 1.44 | Increase of 0.09 percentage points | ╱ | | Quick Ratio | 0.85 | 0.84 | Increase of 0.01 percentage points | ╱ | | Asset-Liability Ratio (%) | 56.28 | 57.22 | Decrease of 0.94 percentage points | ╱ | | Current Period (Jan–Jun) vs. Same Period Last Year | | | | | | Net Profit After Non-recurring Gains and Losses | 1,558,511,840.27 | 1,560,294,219.45 | -0.11 | ╱ | | EBITDA to Total Debt Ratio | 0.43 | 0.82 | Decrease of 0.39 percentage points | ╱ | | Interest Coverage Ratio | 61.08 | 93.67 | Decrease of 32.59 percentage points | ╱ | | Cash Interest Coverage Ratio | -104.27 | 137.81 | Decrease of 242.08 percentage points | Significant decrease in net cash flow from operating activities | | EBITDA Interest Coverage Ratio | 70.94 | 109.04 | Decrease of 38.10 percentage points | ╱ | | Loan Repayment Rate (%) | 100.00 | 100.00 | – | ╱ | | Interest Payment Rate (%) | 100.00 | 100.00 | – | ╱ | - The cash interest coverage ratio significantly decreased by 242.08 percentage points, primarily due to a substantial reduction in net cash flow from operating activities[333] Financial Report Audit Report This chapter explicitly states that this financial report has not been audited - This financial report has not been audited[335] Financial Statements This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity as of June 30, 2025, comprehensively presenting the company's financial position and operating results - Includes consolidated balance sheet, consolidated income statement, consolidated cash flow statement, and consolidated statement of changes in owners' equity[336][341][351] - Includes parent company balance sheet, parent company income statement, parent company cash flow statement, and parent company statement of changes in owners' equity[344][356][364][379] Company Basic Information This chapter introduces the company's establishment background, A-share and H-share listing history, total share capital as of June 30, 2025, and main businesses including rail transit control system design, equipment manufacturing, system delivery services, and municipal engineering contracting; it also clarifies that the ultimate controlling party is China Railway Signal & Communication Corporation Limited and lists 21 consolidated subsidiaries - The company was jointly initiated and established by China Railway Signal & Communication Corporation Limited and others on December 29, 2010[389] - The company issued H-shares and listed on the Hong Kong Stock Exchange from July to September 2015, and issued A-shares and listed on the STAR Market of the Shanghai Stock Exchange on July 16, 2019[390][391] - As of June 30, 2025, the company's total issued share capital was 10,589,819,000 shares[392] - The company's main businesses include design and integration of rail transit control systems, equipment manufacturing, system delivery services, and construction services for municipal engineering contracting and other projects[392] - The company's parent company and ultimate controlling party is China Railway Signal & Communication Corporation Limited[393] - As of June 30, 2025, the company's consolidated financial statements include 21 subsidiaries, such as Research & Design Institute, CRSC International, CASCO, and Finance Company[395][396] Basis of Financial Statement Preparation This chapter explains the basis for preparing the company's financial statements, which adhere to the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, and are prepared on a going concern basis, confirming no significant doubts about the company's ability to continue as a going concern within the next 12 months - These financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and the "No 15 General Provisions for Financial Reporting of Companies Issuing Securities Publicly" by the China Securities Regulatory Commission[398] - These financial statements are prepared on a going concern basis[399] - After evaluation, there are no significant doubts about the company's ability to continue as a going concern within 12 months from the end of the reporting period[400] Significant Accounting Policies and Accounting Estimates This chapter elaborates on the significant accounting policies and estimates adopted by the company in preparing its financial statements, covering accounting period, functional currency, business combinations, financial instruments, inventories, contract assets, long-term equity investments, fixed assets, intangible assets, revenue recognition, government grants, deferred income tax, leases, and other aspects, and explains management's key assumptions and uncertainties in judgments and estimates - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and its functional currency is RMB[403][405] - Financial instruments are classified at initial recognition as financial assets and financial liabilities measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[424][426][429][430][431][432][433][434] - The company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services[506] - Long-term assets are tested for impairment if there are indications of impairment at the balance sheet date[489] - Key accounting estimates and judgments include the outcome of construction contracts and service arrangements, impairment of financial instruments and contract assets, impairment of non-current assets, impairment of goodwill, provision for inventory obsolescence, deferred income tax assets, measurement of defined benefit obligations, useful lives and residual values of fixed assets, incremental borrowing rates for lessees, and quality assurance[570][571][572][573][574][575] Taxes This chapter details the main tax categories, tax rates, and tax preferential policies enjoyed by the company and its subsidiaries, including VAT, urban maintenance and construction tax, corporate income tax, as well as tax incentives for high-tech enterprises, western development, small low-profit enterprises, and advanced manufacturing - The company's main tax categories include VAT (6%, 9%, 13%), urban maintenance and construction tax (5%, 7%), and corporate income tax (15%, 16.5%, 20%, 25%)[578] - Several subsidiaries, such as Research & Design Institute, CASCO, and CRSC Communication Group, enjoy a 15% corporate income tax preferential rate for high-tech enterprises[582][583][584][586][587][588][589][590][591][592] - Xi'an Railway Signal Co, Ltd and Xi'an Quanlutonghao Equipment Research Co, Ltd enjoy the western development tax preferential policy, with corporate income tax levied at a 15% rate[593] - Several subsidiaries enjoy corporate income tax preferential policies for small low-profit enterprises, as well as VAT additional deduction policies for advanced manufacturing enterprises[594][595](index=595&typ