CRRC (601766) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 131.68 billion, up 9.96% year-over-year, with net profit attributable to shareholders at RMB 7.99 billion, up 10.28%.

• Gross margin improved to 22.27%, and basic/diluted EPS rose to RMB 0.28, a 12% increase year-over-year.

• The company maintained its global leadership in rail transit equipment and expanded its presence in new energy equipment.

Financial highlights

• Operating income: RMB 131.68 billion (+9.96% YoY); net profit: RMB 7.99 billion (+10.28% YoY).

• Net cash flow from operating activities: -RMB 16.14 billion (outflow increased from -RMB 8.99 billion YoY).

• Gross margin: 22.27% (+0.46 ppt YoY); net assets attributable to shareholders: RMB 176.48 billion (+2.53% from year-end 2025).

• R&D investment: RMB 7.77 billion, 6% of revenue.

• Non-recurring gains: RMB 582 million, mainly from government grants and fair value changes.

Outlook and guidance

• The company expects continued stable growth in rail transit and new energy sectors, with ongoing expansion in international markets and lifecycle service solutions.

• Cash dividend of RMB 1.1 per 10 shares (RMB 3.157 billion total) proposed for H1 2026.