Core Viewpoint - The acceleration of water conservancy and hydropower construction in Southwest China is beneficial for China Railway Industry, which is a leader in the shield machine industry and has a significant market share in the domestic water conservancy and hydropower engineering sector [1] Group 1: Company Positioning - China Railway Industry is a pioneer and leader in the shield machine industry, with self-developed tunnel boring machines (TBM) widely used in major water conservancy projects [1] - As of the end of 2024, the market share of the company's TBM products in domestic water conservancy and hydropower engineering is expected to exceed 60%, with an 85% market share in the pumped storage power station sector [1] Group 2: Regional Development - The water power projects in Southwest China typically feature high altitude, deep burial, and high ground stress, which presents unique challenges [1] - The company has launched its first full-face tunnel boring machine intelligent assembly line in collaboration with Sichuan Water Development Group, targeting high-end equipment needs in high latitude and high altitude areas [1] Group 3: Future Prospects - The company aims to continue the research and manufacturing of shield machines, TBMs, and specialized drilling and blasting equipment to support key projects in water conservancy, hydropower, and railways in regions like Western Sichuan and Tibet [1] - With the advancement of related major projects, the company's products are expected to see increased application [1]

Group 1 - The company achieved a total new contract value of 21.41 billion yuan in the first half of the year, with overseas contracts amounting to 1.89 billion yuan, reflecting a year-on-year growth of 5.24% [2] - Major sources of overseas orders include shield machines/TBM products from Western Europe, the Middle East, and Oceania, as well as bridge steel structures from Northern Europe and turnout orders from North Africa [2] - The company signed contracts worth 5.485 billion yuan for tunnel construction equipment and related services, with significant growth in the emerging hydropower sector despite a decrease in traditional infrastructure investment demand [2] Group 2 - The first fully "Sichuan-made" earth pressure balance shield machine, "Chuan Shan Jia No. 1," was launched, specifically designed for construction in extreme low-temperature environments [3] - The manufacturing base for this machine is a collaboration between the company and Sichuan Water Development Group, focusing on high-end equipment needs in high latitude and high altitude regions [3] - The hydropower market is identified as a key growth area for the company's tunnel construction equipment and related services, with ongoing efforts to enhance product sophistication, sustainability, and intelligence [3]