Zhuzhou CRRC Times Electric (3898) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached RMB13.07 billion, up 7.01% year-over-year, with net profit attributable to shareholders rising 2.44% to RMB1.71 billion; basic EPS increased 3.31% to RMB1.25 per share.

• The company maintained leadership in rail transit electrical systems, expanded in semiconductors, automotive, marine, and new energy sectors, and achieved notable overseas project wins.

• R&D investment increased 8.53% year-over-year, with 10.55% of revenue allocated to R&D; 164 patent applications were filed and 134 patents granted in H1 2026.

• A cash dividend of RMB4.60 per 10 shares (tax inclusive) was proposed, totaling RMB612.12 million, representing 35.75% of net profit attributable to shareholders.

• Rail transit business grew 9.67%, driven by traction converter systems and engineering machinery, while the automotive segment surged 46.5%.

Financial highlights

• Revenue: RMB13.07 billion (+7.01% YoY); Net profit attributable to shareholders: RMB1.71 billion (+2.44% YoY); Basic EPS: RMB1.25 (+3.31% YoY).

• EBITDA: RMB3.01 billion (+6.25% YoY); Operating profit: RMB2.08 billion.

• Net cash flow from operating activities: RMB1.48 billion (-21.18% YoY), mainly due to increased cash payments for goods and services.

• Gross margin and net margin remained stable; R&D expenses rose 8.53% to RMB1.38 billion, representing 10.55% of revenue.

• Total assets: RMB70.89 billion (-1.65% from end-2025); Net assets: RMB42.41 billion (-0.19%).

Outlook and guidance

• The company expects continued growth in rail transit, new energy, and semiconductor sectors, leveraging policy support for strategic emerging industries and digital transformation.

• Management will focus on technological innovation, international expansion, and cost optimization to address market competition and macroeconomic uncertainties.