China Railway Group (601390) investor relations material

Executive summary

• Revenue for H1 2026 was RMB 471.76 billion, down 7.7% year-over-year; net profit attributable to shareholders was RMB 8.66 billion, down 26.8% year-over-year.

• Gross margin was 8.53%, a decrease of 0.20 percentage points year-over-year; basic EPS was RMB 0.320, down 22.3% year-over-year.

• Cash flow from operating activities was negative RMB 86.66 billion, with increased outflows due to delayed payments from project owners and timely supplier payments.

• The company remains a global leader in infrastructure construction, design consulting, and equipment manufacturing, with diversified operations in real estate, resources, and finance.

Financial highlights

• Operating income: RMB 471.76 billion, down 7.7% year-over-year.

• Net profit attributable to shareholders: RMB 8.66 billion, down 26.8% year-over-year.

• Operating cash flow: negative RMB 86.66 billion, increased outflow compared to prior year.

• Gross margin: 8.53%, down 0.20 percentage points year-over-year.

• Basic and diluted EPS: RMB 0.320, down 22.3% year-over-year.

• Net assets attributable to shareholders: RMB 378.35 billion, up 2% from year-end 2025.

Outlook and guidance

• The company expects continued pressure on domestic infrastructure investment and real estate, but sees opportunities in new infrastructure, urban renewal, and international markets.

• Focus remains on high-quality growth, risk control, and cash flow management.

• The company will continue to invest in R&D and innovation, and pursue digital and green transformation.