CRRC CORPORATION LIMITED

2026 ACTION PLAN FOR “ENHANCING QUALITY INCREASINGEFFICIENCY AND 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” 2.0 campaign amongShanghai-listed companies. In order to earnestly fulfil its responsibilities of “Improvingthe Quality of the Company while Enhancing the Returns and the Sense of Gain for theInvestors” the Company has therefore formulated the 2026 Action Plan for “EnhancingQuality Increasing Efficiency and Emphasizing Returns” (hereafter referred to as the

“Action Plan”). The details are as follows:

I. OVERVIEW OF THE COMPANY’S OPERATIONS

CRRC is the world’s leading and diverse rolling stock supplier and system

solutions provider with advanced technology. It is also one of the key enterprises

in China’s new energy equipment sector. Its business scope includes railway

equipment urban rail transit vehicles and urban infrastructure new industry and

modern service. Revenue from the Company’s rail transit equipment business has

ranked first in the world and wind power equipment energy storage equipment

and polymer composite materials and other businesses have entered the forefront

in China.During the “14th Five-Year Plan” period the Company deeply promoted high-

quality development and achieved breakthrough progress in various tasks.First the continuous surge in its comprehensive strength. The Company’s key

economic and technical indicators remained at the forefront of international peers

and its “one profit and five ratios” metrics were comprehensively optimized

1and improved. Its brand value continued to lead China’s machinery equipment

manufacturing industry. Second the continuous upgrade in industry development.The Company has actively established a pattern of industrial development of

“Two Tracks and Two Clusters”. Its rail transportation equipment portfolio has

undergone iterative upgrades while the industries of wind energy photovoltaic

energy hydrogen energy and energy storage have continued to be strengthened

thereby facilitating the promotion of value-oriented “Product+” and “System+”

business models with products and services reaching more than 110 countries and

regions worldwide. Third continuous breakthroughs in scientific and technological

innovation. The Company has promoted high-level technological self-reliance and

self-strengthening and successfully developed innovative products such as CR450

high-speed MUs the maglev train with highest speed reaching 600 km/h a series

of new energy locomotives Chinese standard subway trains Chinese standard

smart suburban trains the “Qihang” 20MW offshore wind turbine the “Lingfeng”

12MW onshore wind turbine and new-type energy storage systems while

thoroughly implementing the “AI+” initiative. Fourth the continuous growth in

vitality and momentum. The Company has advanced strategic reorganization and

specialized integration deepened reforms of market-oriented operation mechanism

and achieved continuous improvements in its green transformation.Over the past three accounting years (2023–2025) the Company’s revenue

amounted to RMB234.3 billion RMB246.5 billion and RMB273.1 billion

respectively representing a compound growth rate of 7.96% and showing a

steady upward trend. Of which revenue from the railway equipment business

grew from RMB98.2 billion to RMB123.6 billion while revenue from the new

industry business increased from RMB80.6 billion to RMB103.1 billion. Net

profit attributable to the parent company was RMB11.7 billion RMB12.4 billion

and RMB13.2 billion respectively with a compound growth rate of 6.09%

which generally aligned with the trend of revenue growth. Gross profit margins

were 20.54% 21.38% and 21.38% respectively maintaining an overall trend of

steady improvement amid stability. R&D investment percentage stood at 6.32% 6.77%

and 6.65% respectively remaining at an industry-leading level. Total assets

amounted to RMB471.8 billion RMB512.8 billion and RMB550.8 billion respectively

representing a compound growth rate of 8.05% with the scale of assets expanding

in tandem with revenue growth. Net assets were RMB196.5 billion RMB210.2

billion and RMB216.1 billion respectively with a compound growth rate of 4.86%.In summary the Company has driven growth through its dual-track industrial

development strategy delivered improved operating results amid stability

maintained a sound financial structure generated solid profitability and built a

strong foundation for sustainable development.

2Table 1 Financial position of the Company (Unit: RMB100 million)

Operating metrics 2023 2024 2025

Revenue 2343 2465 2731

Net profit attributable to

the parent company 117 124 132

Total assets 4718 5128 5508

Net assets 1965 2102 2161

Gross profit margin (%) 20.54 21.38 21.38

R&D investment percentage (%) 6.32 6.77 6.65

Selling expenses percentage (%) 2.20 2.24 2.15

Administrative expenses

percentage (%) 5.96 6.32 5.86

II. MANAGEMENT DISCUSSION AND ANALYSIS OF THE COMPANY’S

CURRENT PROGRESS IN ENHANCING QUALITY INCREASING

EFFICIENCY AND EMPHASIZING RETURNS

(I) ANALYSIS OF OPERATING METRICS

1. R&D Investment Percentage

R&D investment percentage (R&D investment as a percentage

of operating revenue) serves as a structural indicator of resource

allocation that reflects the intensity of innovation resource allocation

and the relative level of investment demonstrates the strategic

importance an enterprise places on technological innovation and serves

as an important basis for investors to evaluate the core competitive

advantages and long-term growth momentum of a company. CRRC hasalways regarded “serving the nation through industry and strengtheningthe country through advanced equipment manufacturing” as its mission.Rolling stock equipment represented by Chinese standard high-speed

MUs of “China Fuxing” EMUs is the “golden name card” of China’s

high-end equipment going global. As a key pillar of the nation

innovation-driven technological capabilities represent a vital core

competitive advantage for the Company. The Company has insisted on

self-reliance in science and technology accelerated the construction

of sources of original technologies continued to advance proprietary

innovation capabilities and seized the initiative of future development.From 2023 to 2025 R&D investment percentage stood at 6.32%

6.77% and 6.65% of its revenue respectively.

3To continuously consolidate its technological advantages and ensure

long-term development the Company will continue to adhere to an

innovation-driven approach maintain a high level of R&D investment

in line with business development needs and enhance efficiencyby lowering costs through the establishment of a “comprehensiveresearch and innovation” system striving to achieve an R&D

investment percentage of not less than 6.65% in 2026. The Company

will systematically advance its scientific and technological innovation

efforts. First we will serve national strategies from a high-level

perspective expedite the development of a “two-track” source of

original technologies with global impact and plan and implement a

new round of iconic products and key R&D projects. The Company

will strengthen the foundation of digital and intelligent technologies

unleash the potential of data as a key factor of development deepen

the application of artificial intelligence and comprehensively

support the Company’s digital and intelligent transformation and the

development of digital and intelligent industries. We will accelerate the

construction of a big innovation system enhance innovation efficiency

and implement process control and dynamic traceability. Second the

Company will develop major products with high quality standards

promote the research development and application of CR450 a series

of new energy locomotives standard subway train 2.0 standard urban

trains equipment for the Sichuan Tibet railway high-speed maglev

and other high-end equipment. CRRC will promote the grid-forming

upgrade and portfolio refinement of new energy power generation

equipment establish “power sources networks load and storage”

system solutions adapted to the new type of power system and expand

into new businesses such as industrial artificial intelligence industrial

software and industrial robots. Meanwhile we will drive in-depth

quality and efficiency improvements across the entire product value

chain by taking technology as the driving force and integration as the

pathway. CRRC will promote the platformization modularization and

universalization of its products and equipment as well as the cross-

platform and cross-model sharing of materials advance the unification

of key components thereby enhancing the core competitiveness

of its products. Third the Company will optimize science and

technology management with high standards and continuously refine a

standardization system that aligns with our strategy leads the industry

and meets international standards. We will cultivate sufficient talented

personnel with a reasonable structure and excellent qualities and

nurture more outstanding engineers and highly skilled talents to support

the Company’s development.

42. Debt-to-asset Ratio

Debt-to-asset ratio is a measure of the degree to which a company’s

assets are financed through liabilities. It is used to determine debt-

risk thresholds and the level of leverage returns and serves as a

fundamental financial benchmark for financing pricing and internal risk

management. It is also a key metric for investors to assess a company’s

financial health and long-term investment value. Over the past three

years the Company’s debt-to-asset ratio stood at 58.35% 59.01% and

60.77% respectively showing a slow uptrend.

To further enhance financial soundness and mitigate debt risks the

Company will strengthen proactive management and curb the upward

trend in its debt-to-asset ratio thereby laying a solid foundation for

high-quality development. The Company will strive to achieve a debt-

to-asset ratio of less than 60.77% by the end of 2026 and continue its

efforts to reduce liabilities and mitigate risks by launching a three-year

special rectification campaign targeting subsidiaries with high liabilities

and high risks. It will establish a system for addressing excessiveliabilities characterized by “identifying root causes – five-prongedtargeted action – two-tier coordination” requiring all subsidiaries to

identify issues from both short- and long-term perspectives as well as

internal and external factors and to thoroughly investigate root causes

at the levels of strategic decision-making management mechanisms

and appraisals and incentives with a focus on implementing key

initiatives: focus on its principal business business optimization

management enhancement and control over debt risk. These efforts

aim to comprehensively prevent debt risk achieve the debt-to-asset

ratio within targeted control limits and elevate the Company’s level of

high-quality development.Table 2 Key Operating Metrics

2025 Target in 2026

R&D investment percentage 6.65% Not less than 6.65%

Debt-to-asset ratio 60.77% Less than 60.77%

5(II) ANALYSIS OF RETURN METRICS

1. Improving the Quality and Efficiency of Investor Returns

1.1 Maintaining a Steady Dividend Level and Delivering Long-Term

Returns

The Company places great importance on investor returns and

continuously enhances the sense of gain for investors. Since its

establishment CRRC has implemented annual cash dividends

distributing a cumulative total of over RMB57 billion (tax

inclusive) in cash dividends to date. The average annual cash

dividend distribution ratio was approximately 45%. Over the latest

three accounting years the Company has declared and distributed

a cumulative total of approximately RMB18.367 billion (tax

inclusive) in cash dividends representing 147.80% of the average

net profit for the latest three accounting years. To enhance the

sense of gain for investors the Company is actively exploring the

implementation of interim cash dividend in addition to its annual

cash dividend. In 2025 the Company made an interim dividend

distribution for the first time amounting to RMB3.157 billion

(tax inclusive). Together with the final dividend of RMB3.444

billion (tax inclusive) the total cash dividends distributed in 2025

amounted to RMB6.601 billion representing a total dividend

payout ratio of 50.08%.Going forward the Company will continue to maintain a

stable dividend policy and balance shareholders’ entitlement

to dividends with the capital requirement for the Company’s

business development to ensure its sustainable development in

the future. On 27 March 2026 the Company convened the eighth

meeting of the fourth session of the board of directors at which

it was agreed to submit to the general meeting a resolution to

authorize the board of directors to deal with matters relating to the

2026 interim profit distribution at its full discretion in accordance

with the conditions specified in the resolution. The resolution

was subsequently approved at the annual general meeting

authorizing the board of directors to explore and optimize the

decision-making process for interim dividend distributions. On

19 August 2026 the Company convened the eleventh meeting of

the fourth session of the board of directors at which the relevant

resolution regarding the implementation of the 2026 interim profit

distribution was considered and approved thereby continuing the

practice of interim dividend distribution.

61.2 Actively Exploring Measures such as Shareholding Increase and

Share Repurchases to Protect Shareholder Rights

The Company has always upheld the philosophy of better

protecting shareholder rights and creating greater value for

shareholders. It actively explores measures such as shareholding

increase and share repurchases and has implemented such

measures in a timely manner in light of the Company’ s

development needs and capital market dynamics. During

the period from 30 October 2023 to 29 April 2024 CRRC

GROUP our controlling shareholder cumulatively increased its

shareholding in the Company’s A shares by 29188800 shares

through the trading system of the Shanghai Stock Exchange by

way of centralized bidding representing approximately 0.1%

of the total number of issued shares of the Company. On 20

July 2026 CRRC GROUP made further announcement for the

implementation of a shareholding increase plan pursuant to which

it intended to increase its shareholding in the Company’s A shares

in a manner permitted under the system of the Shanghai Stock

Exchange within 6 months from the date of disclosure of the

shareholding increase plan. The aggregate amount of the proposed

shareholding increase shall be no less than RMB150 million and

no more than RMB300 million. On 28 July 2026 CRRC GROUP

had for the first time implemented an increase in shareholding of

4730000 A shares through the Shanghai Stock Exchange trading

system by way of centralized bidding demonstrating to the

capital market its recognition of the value of the Company and its

confidence in the Company’s sustainable and stable development

in the future.

1.3 Strengthening Investor Relations Management to Enhance Market

Recognition

The Company attaches great importance to investor relations

management and has established a long- term mechanism

characterized by clear systems open channels and standardized

operations. Various types of investor communication activities in

multiple formats and with high quality were organized delivering

to investors in a timely and accurate manner information such as

the Company’s operating and development status and extensively

listened to the opinions and suggestions of shareholders.

7Going forward the Company will continue to proactively

strengthen multi-dimensional multilevel and multi-form investor

communication and value management. First the Company

will refine its daily management to solidify the foundation of

investor relations. We will pay attention to daily communication

with investors continuously update our investor database

dynamically analyze investors’ concerns and requests and

provide targeted responses through results briefing sessions

targeted communications and other channels. Second we will

optimize our engagement activities to enhance our recognition

in the capital market. We will continue to hold regular results

briefing sessions and conference calls constantly enriching the

methods and content of these interactions. Drawing on daily

communication we will prepare thoroughly in advance for topics

of concern to investors thereby enhancing the effectiveness

of these engagements. We will also continue to organize high-

quality performance roadshows and reverse roadshows and engage

in one-on-one communication with key investors to convey the

Company’s value.

2. Improving the Quality and Efficiency of Social Responsibility

The Company has established an ESG strategic system forming a

three-tier governance structure under which the board of directors

provides overall coordination management drives implementation

and headquarter departments and subsidiaries are responsible forexecution. The Company has formulated the “Environmental Socialand Corporate Governance (ESG) Management Regulations” and other

institutional documents.Going forward the Company will further improve its report

compilation and quality control mechanisms. It will strengthen a

working framework under which the board of directors provides

oversight the management coordinates efforts and functional

departments collaborate in implementation with an aim to optimizing

its ESG indicator system data reporting standards review procedures

and allocation of responsibilities. We will enhance the quantitative

disclosures of key indicators strengthen year-on-year comparisons and

trend analysis and objectively present the performance of our practices

potential risks and areas for improvement in the environmental social

and governance domains. Drawing on stakeholder engagement and

8materiality assessments the Company will enhance the relevance of its

disclosures to its corporate strategy operational management and risk

control. The Company will where appropriate introduce third-party

assurance to continuously improve the truthfulness comparability and

credibility of its ESG information to faithfully reflect the Company’s

level of governance and performance in the area of sustainable

development.Table 3 Key Return Metrics

2025 Target in 2026

Dividend distribution ratio 50.08% Remaining stable

Interim dividend Implemented Continuing the

for the first time implementation

Shareholding increase by the Not yet Promoting the

controlling shareholder implemented implementation

(III) ANALYSIS OF COMPLIANCE METRICS

1. Improving the Quality and Efficiency of Corporate Governance

The Company has established a corporate governance mechanism

that is legally defined transparent coordinated and effectively

balanced. First the Company has improved the governance system

centered on the Articles of Association strictly standardizing decision-

making processes for major investments related party transactions

external guarantees and other matters. Second we have continuously

optimized the composition of the board of directors ensuring that each

of its specialized committees performs its duties in compliance with

applicable regulations while giving full play to the role of independent

directors in providing independent oversight and professional advice. Third

the Company has maintained 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.

9Going forward the Company will closely align with the China

Securities Regulatory Commission’s (CSRC) Special Initiative on

Corporate Governance of Listed Companies. First we will continue

to reinforce the development of the board of directors give full

play to the supervisory functions of the audit and risk management

committee and enhance the professional competence of the secretary

to the board of directors in discharging his duties. Second we will

continue to strengthen the audit and risk management committee’s

review of matters such as annual report audits and internal control

reports and continuously improve the quality of information disclosure

and the transparency of corporate governance thereby laying a solid

foundation for the Company’s long-term compliant operations. Third

the Company will continue to enhance the sense of responsibility

among the “Key Minorities” organize regular learning and training

sessions for directors and senior management and enhance the

understanding of capital market laws and regulations and professional

business knowledge among the “Key Minorities” thereby continuously

improving their self-discipline awareness.

2. Improving the Quality and Efficiency of Information Disclosure

To perform the obligation of information disclosure in accordance with

the laws and regulations strictly ensure standardized operations and

effectively safeguard shareholder rights the Company has formulatedthe “Information Disclosure Management Regulations of CRRCCorporation Limited” (《中国中车股份有限公司信息披露管理规定》) and its implementing measures. The Company closely monitors

amendments to relevant regulatory rules and makes prompt revisions

to its relevant systems while establishing and continuously refining

the internal reporting system for material information and the internal

review and approval mechanism for information disclosure.Going forward the Company will continue to strictly adhere to theprinciples of “Truthfulness Accuracy Completeness Timeliness andFairness” continuously refine the development of its information

disclosure management system and operational mechanisms and carry

out information disclosure efficiently and to a high standard in order to

better safeguard the legitimate rights of our shareholders. The Company

will continue to enhance the readability of its announcements through

various measures. First we will place greater emphasis on precise

and concise wording on the text of announcements to convey the

Company’s material information to the capital markets and investors

10more accurately and efficiently. Second the Company will timely

monitor updates on formatting standards and guidelines as well as

the announcement templates of the stock exchanges to ensure that all

statutory disclosure requirements are fully addressed and guarantee that

investors have a complete understanding of the disclosed matters. Third

we will continuously improve the quality of Performance Highlights

on Wechat to help investors gain a more intuitive understanding of

the Company’s periodic results and to concretely showcase them the

achievements of the Company’s high-quality development.III. S U MMA R Y OF O B J E C T I V E S FOR THE A CTI ON PLAN FOR

E N H A N C I N G Q U A L I T Y I N C R E A S I N G E F F I C I E N C Y A ND

EMPHASIZING RETURNS

Table 4 Summary of Key Operating and Return Metrics

2025 Target in 2026

R&D investment percentage 6.65% Not less than 6.65%

Debt-to-asset ratio 60.77% Less than 60.77%

Dividend distribution ratio 50.08% Remaining stable

Interim dividend Implemented for Continuing the

the first time implementation

Shareholding increase by the Not yet implemented Promoting the

controlling shareholder implementation

11The 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 there

may be risk factors that cannot currently be foreseen which could prevent the

implementation of the Action Plan from achieving the expected results. Investors

shall pay attention to the investment risks.IV. INVESTOR COMMUNICATION CHANNELS

During the implementation of the Action Plan investors may communicate and

interact with the Company via telephone email online results briefing sessions

and other means. The Company will extensively listen to investors’ opinions and

suggestions regarding its business operations and development as well as the

Action Plan to support the Company’s high-quality development.Contact person: Ms. Chen

Telephone: 010-51862188

Email address: crrc@crrcgc.cc

The Board of Directors of CRRC Corporation Limited

19 August 2026

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