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.

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

• The company maintained its leading position in rail transit electrical systems and expanded in semiconductors, new energy, and marine sectors.

Financial highlights

• Operating profit for the period was RMB2.08 billion, with EBITDA up 6.25% year-over-year to RMB3.01 billion.

• Net cash flow from operating activities declined 21.18% to RMB1.48 billion, mainly due to increased cash payments for goods and services.

• Gross margin remained stable, while R&D investment rose 8.53% to RMB1.38 billion, representing 10.55% of revenue.

• Non-recurring profit or loss items contributed RMB69.97 million, mainly from government grants and fair value gains.

Outlook and guidance

• Management expects continued growth in rail transit and emerging equipment, leveraging policy support for strategic industries and digital transformation.

• The company plans to maintain high R&D investment and pursue international expansion, especially in new energy and semiconductor markets.