China Railway Signal & Communication (3969) H1 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 was RMB14.08 billion, down 3.98% year-over-year, with net profit attributable to shareholders at RMB1.47 billion, down 9.07%.

• Railway sector revenue grew 2.75% year-over-year, while urban rail and overseas revenues declined 14.85% and 12.44%, respectively.

• Orders in hand (excluding municipal housing construction) reached RMB51.60 billion at period end.

• Newly signed contracts totaled RMB17.72 billion, up 0.84% year-over-year, with notable growth in urban rail and low-altitude economy sectors.

Financial highlights

• Gross margin for rail transit control systems was 31.67%; equipment manufacturing margin was 38.61%.

• Net cash flow from operating activities improved to -RMB807 million from -RMB4.41 billion in H1 2025, mainly due to reduced payments to suppliers.

• R&D investment rose to RMB915 million, 6.5% of revenue, up 0.71 percentage points year-over-year.

• Basic EPS was RMB0.14, down from RMB0.15 in H1 2025.

Outlook and guidance

• Focus remains on expanding the rail transit, low-altitude economy, smart cities, and intelligent operations sectors.

• The company aims to stabilize new construction, expand renovation and maintenance markets, and accelerate model replication in low-altitude infrastructure.

• Continued exit from municipal housing construction and emphasis on optimizing business structure.