China Railway Signal & Communication (3969) H2 2025 earnings summary

Executive summary

• Achieved operating revenue of RMB34,553 million in 2025, up 6.40% year-over-year; net profit attributable to shareholders reached RMB3,686 million, up 5.48% year-over-year; net profit after non-recurring items was RMB3,421 million, up 4.66% year-over-year.

• Total assets at year-end were RMB118,322 million, up 0.37% from the prior year; equity attributable to shareholders was RMB49,843 million, up 3.79%.

• The company maintained its leading position in rail transit control systems, expanded in low-altitude economy, and continued to drive innovation and digital transformation.

Financial highlights

• Revenue: RMB34,552.8 million (+6.40% YoY); net profit attributable to shareholders: RMB3,686.4 million (+5.48% YoY); net profit after non-recurring items: RMB3,420.8 million (+4.66% YoY).

• Basic and diluted EPS: RMB0.34 (+6.25% YoY); weighted average ROE: 7.53%.

• Gross margin remained stable; overall gross profit margin for rail transit control systems slightly decreased, while urban transit margin improved.

• Net cash flow from operating activities was -RMB1,294.1 million, a significant decrease due to lower customer deposits and reduced cash receipts from sales.

• R&D investment reached RMB2,242.4 million, 6.49% of revenue.

Outlook and guidance

• The company expects the new construction market in rail transit to decline, with renovation and upgrade projects becoming the main growth driver.

• Overseas business will focus on Belt and Road markets and high-potential regions, with enhanced localization and competitiveness.

• Strategic focus remains on rail transit and low-altitude economy, with continued investment in digital intelligence and emerging industries.