CRRC CORPORATION LIMITED

ACTION PLAN FOR

“ENHANCING QUALITY INCREASING EFFICIENCYAND EMPHASIZING RETURNS”

CRRC Corporation Limited (hereinafter referred to as “CRRC” or the “Company”)has actively responded to the Shanghai Stock Exchange’s initiative on the “EnhancingQuality Increasing Efficiency and Emphasizing Returns” campaign among Shanghai-listed companies by formulating Action Plan for “Enhancing Quality IncreasingEfficiency and Emphasizing Returns” (hereafter referred to as the “Action Plan”) so asto earnestly fulfil its responsibilities of “Improving the Quality of the Company whileEnhancing the Returns and the Sense of Gain for the Investors”. The details are as

follows:I. CREATING AN INDUSTRIAL PATTERN OF “TWO TRACKS AND TWOCLUSTERS” TO ENHANCE THE OPERATIONAL QUALITY

Since its establishment CRRC has focused on its principal responsibilities and

major businesses strengthened strategic leadership deeply grasped opportunities

and actively responded to challenges. It has developed into the world’s leading

diverse rolling stock supplier with advanced technology and received great

attention from leaders of the Party and the state. The series of rolling stock

equipment represented by Chinese standard high-speed MUs of “China Fuxing”

EMUs became the “golden card” of China’s high-end equipment going global. The

Company strived to create an industrial pattern of “Two Tracks and Two Clusters”

for the rail transit equipment business and clean energy equipment business.This will establish a system of graded layout positive interaction and cluster

development expediting the enhancement of system solution capabilities and

solidifying the industrial foundation for high-quality development.

1(1) Mapping out strategies optimising layouts strengthening the

construction of new business models and broadening pathways for high-

quality development

Accelerating the upgrading of the rail transit industry. The Company closely

follows the direction of railway market reform in the country with the goals

of achievement of speed heavy load and digital intelligence to establish

an equipment system that meets the development needs of the modern

railway logistics system. We develop multi-mode cost-effective solutions

for medium-to-low-capacity urban transportation systems and promote the

construction of a family-based vehicle platform. We accelerate the launch

of “integration of vehicles and the electromechanical system on the ground”

and full life cycle service plan based on the digital intelligent and green

electromechanical system in order to enhance our capabilities in providing

urban transportation system solutions.Intensifying the improvement of quality for strategic and emerging

industries. The Company strengthens the top-level design of its new energy

industry layout while deepening its focus on key areas and coordinating the

implementation of industrial base layout plans. We intensify the research on

the technologies and equipment required for new power systems and develop

the system solutions of “power sources networks load and storage.” Also

we continuously strengthen our simulation and testing capabilities in order

to support the continuous improvement of product performance and quality

in strategic emerging industries.Expediting the cultivation of future industries. The Company fully leverages

CRRC’s extensive application scenarios to develop system solutions forthe high-end equipment manufacturing industry integrating “intelligentequipment + intelligent factories + intelligent services” thereby fostering the

development of a digital and intelligent industry that integrates automated

operation lean management green production and intelligent technology.

2(2) Exploring new markets expanding incremented volume strengthening

and developing new models as well as laying a solid foundation for high-

quality development

Precisely focusing on the market of rail transit equipment. The Company

strengthens communication and coordination with key customers and

proactively promotes the implementation of order procurement. Also we

focus on the trends of digitalization intelligence and green development

and the Company will expedite the establishment of a modern logistics

equipment system for railways. Besides we continue to leverage our

advantages in the regional markets of urban rail transit consistently expand

“Product+” and “System+” businesses and speed up the research and

formulation of value creation model samples in order to strive to develop

demonstrative and leading projects.Thoroughly focusing on the market of clean energy equipment. The Company

optimises its strategic cooperation governance mechanism and promotes its

strategic market development and the implementation of key cooperation

projects. We seize opportunities in clean energy development accelerate

the construction of market advantages in wind solar hydrogen and storage

enhance our industry presence and strengthen our industry status. Also we

strengthen our capabilities in improving system solutions while proactively

exploring and promoting the integration of transportation and energy in

order to exert certain demonstrative effects.Deeply focusing on the market of international business. The Company

consolidates and expands its market in those countries along the Belt and

Road Initiative provides its services and supports and follows up the

implementation of various overseas projects. We steer the implementation

and particular monitoring of DLS projects to ensure their smooth progress

and effective market expansion strengthen our management capabilities

and supply chain system construction for DLS projects build up a value-

oriented digital and green DLS 2.0 model and continue to strengthen the

establishment of a team with talents specialized in comprehensive DLS

businesses. Leveraging the layout in our advantageous regions we promote

the synergistic development of our “two-track” strategy for us to “goingglobal”.

3Focusing on nurturing the market of digital and intelligent industry. The

Company promotes the business model featuring “Product +” and “System+” supported by industrial digitalisation and intelligentisation. We establish

an organization and coordination mechanism for the digital and intelligent

industry accelerate the professional integration of internal digital and

intelligent industry resources and build up a synergistic market expansion

system for the digital and intelligent industry.II. ENHANCING TECHNOLOGICAL INNOVATION AND ACCELERATING

THE DEVELOPMENT OF NEW QUALITY PRODUCTIVE FORCES

The Company has insisted on self-reliance in science and technology vigorously

implemented the innovation-driven development strategy deepened the reform

of the science and innovation system accelerated the construction of sources of

original technologies continued to advance proprietary innovation capabilities to

achieve a major leap from falling behind and catching up to taking the lead.The Company will continue to prioritize technological innovation among all

the other tasks adhered to the innovation-driven development strategy focused

on developing new quality productive forces and empowered high-quality

development through high-level technological self-reliance and self-strengthening.Focusing on the development of new quality productive forces the Company

will reinforce the deep integration of technological innovation and industrial

innovation to build new industries new business forms and new models

expanding new space for development and cultivating new drivers for growth. The

Company will focus on improving the innovation system maintaining a high level

of technological investment coordinating innovation resources and concentrating

efforts on technical research and project breakthroughs. The Company will

optimize the ecosystem for technological innovation adhere to market orientation

leverage “thirst-quenching” policies and continuously improve the efficiency of

technological outputs. We will strive to enhance our innovative capacity focus on

the construction of source of original technologies and increase the investment

in original technology and research on the disruptive frontier common and basic

technologies. The Company will strengthen collaboration with upstream and

downstream of the industrial chain enhance the coordination of scientific research

projects and deepen the modern industrial chain synergy actions for CRRC’s

rail transit equipment and clean energy equipment. We will focus on translating

innovation results into practice accelerating the application of technological

innovation achievements as well as grasping the trend of digitalization green

development intelligence modularization and platformization and accelerating

the application of the results of key projects and creating typical products. We

4will build a high-quality team of talents while adhering to a combination of talent

introduction and independent training and continuously optimising all aspects of

talent selection cultivation management deployment and training in order to

cultivate sufficient talented personnel with a reasonable structure and excellent

qualities. We will strengthen the construction of teams of talents specialized in

clean energy equipment strategic emerging industries and international business

to better support our corporate development.III. STRENGTHENING INVESTOR COMMUNICATION TO ENHANCE

MARKET RECOGNITIONThe Company strictly adheres to the principles of “Truthfulness AccuracyCompleteness Timeliness and Fairness” in the disclosure of information to ensure

that all shareholders have fair and equal access to information and to safeguard the

interests of all shareholders in particular the interests of small and medium-sized

shareholders. The Company sticks to proactive investor relations management and

actively manages multi-dimensional interactions with investors analysts media

regulatory authorities and the public. With innovative models the Company

has diversified the promotion channels and deepened the roadshows and reverse

roadshows to enhance mutual understanding and trust and convey the Company’s value.The Company’s information disclosure and investor relations management have been

widely recognized by the capital market regulatory authorities and professional

organizations.The Company will continue to proactively strengthen multi-dimensional

multilevel and multi-form investor communication and value management to

enable the capital market to fully recognize the Company’s intrinsic value. First

the Company will strengthen the value promotion to continuously enhance recognition

in the capital market. The Company will hold regular performance briefings actively

organize exclusive presentations for investors and analysts on the annual results

hold regular investor teleconferences by arranging for the participation in person of

the Company’s directors and senior management so as to truly and accurately

interpret the Company’s operating results share business achievements and overall

strategy exchange key information on development opportunities and business

planning and respond truthfully to investors’ questions and concerns. The

Company will conduct high-quality performance roadshows visit domestic and

international investment institutions and engage in one-on-one communication with

key investors. The Company will organize reverse roadshows in an innovative way

to further convey the Company’s value and strengthen recognition in the capital

market. Second the Company will refine daily management to solidify the

foundation of investor relations. The Company will organize the compilation and

publication of daily media monitoring information

5weekly capital market reports and public relations event analyses to provide

timely and accurate information support to our directors and senior management.The Company will continue to update investor profiles establish the capital

market analyst database and convey the Company’s operation and management

philosophy and strategic plans through visiting long-term shareholders and

participating in brokers’ strategy conferences so as to enhance investors’ trust and

understanding on the Company. The Company will prioritize daily communication

with investors arrange for dedicated personnel responsible for answering

investors’ phone calls receiving investors’ e-mails paying attention to investors’

questions on the E-interaction platform and responding patiently to questions

raised by investors. The Company will participate in investment education

activities to remind investors to make rational investments.IV. EMPHASIZING INVESTOR RETURNS AND SHARING OPERATIONAL

ACHIEVEMENTS

Since its establishment CRRC has implemented annual cash dividends

distributing a cumulative total of over RMB50 billion (tax inclusive) in cash

dividends to date. The average annual cash dividend distribution ratio exceeded

40% higher than the average level of the A-share capital market. The Company

has increased the cash dividend to all shareholders per 10 shares from RMB1.5

(tax inclusive) to RMB2.1 (tax inclusive) with the annual total cash dividend

amount rising from RMB4.093 billion (tax inclusive) to RMB6.027 billion (tax

inclusive) the proportion of which to the net profit attributable to ordinary

shareholders of the listed company in the consolidated financial statements

increased to 49%.

6The Company will adhere to the Articles of Association and relevant provisionsof the “CRRC Corporation Limited Medium and Long-Term Shareholders’ ReturnPlan” emphasizing investor returns conducting timely research on measures such

as the promotion of interim dividends to enhance the stability and sustainability

of dividend distributions as well as sharing operational achievements with

shareholders. The Company will continuously uphold the philosophy of better

protecting shareholder rights and creating greater value for shareholders. The

Company will scientifically manage its market capitalisation improve its

market capitalisation management system and mechanisms enhance the quality

of information disclosure actively strengthen investor relations and stabilise

investors’expectation on returns. It will earnestly fulfil its primary responsibility

for market capitalisation management and maintain market stability.V. OPTIMIZING CORPORATE GOVERNANCE AND ADHERING TO

STANDARDIZED OPERATIONS

Focusing on the development of a modern enterprise system with Chinese

characteristics the Company has improved its corporate governance system

forming a basic system that includes the Articles of Association Rules of

Procedure for Board of Directors Information Disclosure Management Measures

and Investor Relations Management Measures supplemented by specialized

systems such as the Terms of Reference of Special Committees of the Board

of Directors Information Disclosure Implementation Rules and Market

Capitalization Management Measures thereby establishing a corporate governance

mechanism that is legally defined transparent coordinated and effectively

balanced. The Company precisely manages the regulated operations refines

the governance bodies’ authority and responsibility details the list of authority

and responsibility promotes the reciprocity of authority and responsibility and

ensures effective performance of duties; the Company accurately controls the

quality of board proposals establishes a proposal quality control procedure

and for important proposals the Company establishes a joint mechanism with

relevant departments at headquarters to intervene in advance and provide advice

and recommendations on decision-making procedures and information disclosure

compliance.

7The Company will continue to adhere to its compliance-oriented and efficient and

standardized operations and will continue to improve its corporate governance

standards and effectively protect the interests of investors. The Company will

firmly refrain from touching the regulatory red line and comply with the relevant

requirements of the Central Committee of the Communist Party of China the State

Council the State-owned Assets Supervision and Administration Commission of

the State Council (hereinafter referred to as the “SASAC”) and the rules governing

the listing of stocks in the listing places focusing on matters such as related

party transactions major investment and financing projects external guarantees

and other matters. The Company will strictly adhere to the bottom line of

compliance follow rules and exercise the functions and roles of each governance

body especially the board of directors in accordance with the rules powers and

responsibilities. The Company will further improve its mechanism and system

continuously refine its corporate governance system especially in aspects such as

board building information disclosure and market capitalization management and

strengthen the institutional support to ensure that compliance is integrated into

the process and mechanism and that the system is adequately safeguarded and

functioning. The Company will continue to optimize the relationship among the

governance bodies and persistently improve the corporate governance mechanism

that is legally defined transparent coordinated and effectively balanced. The

Company will comprehensively refine the management of the meeting process

focusing on the communication with external directors and optimizing the

efficiency of the operation of the board of directors.VI. STRENGTHENING THE RESPONSIBILITY OF THE “KEY MINORITIES”

The Company maintains close communication with its actual controller the

controlling shareholder shareholders holding more than 5% directors and

senior management of the Company and others in order to convey regulatory

requirements in a timely manner. The Company organizes the participation of its

directors and senior management in trainings hosted by the SASAC securities

regulatory authorities and listed company associations to study and understand

important policy documents and meeting spirits of the Central Committee of

the Communist Party of China and the State Council grasp new regulatory

requirements and corporate governance demands and continuously improve policy

comprehension strategic insight risk identification and scientific decision-

making abilities.

8The Company will continue to enhance the sense of the responsibility among the

“Key Minorities” and work together to promote their diligence. The Company

will organize its directors and senior management to participate in work meetings

training courses and other activities organized by regulatory authorities and

professional associations in strict accordance with regulatory requirements and

actual needs enhancing the “Key Minorities” understanding of capital market laws

and regulations and professional business knowledge and continuously improving

self-discipline awareness to promote high-quality development of the listed

company.The Company will continue to evaluate the specific measures of the Action Plan

and fulfil its information disclosure obligations in a timely manner. Investors

should be aware that the forward-looking statements included in the Action Plan

in relation to future plans and development strategies among others do not

constitute any substantive commitment to investors by the Company and investors

shall pay attention to the investment risks.

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