Corporate Value and Return Enhancement Action Plan In 2026

2025 ANNUAL ASSESSMENT REPORT AND 2026 ACTION PLAN

In 2025 China Railway Signal & Communication Corporation Limited (hereinafter referred to as the “Company” or “CRSC”)

further implemented the special action of “Corporate Value and Return Enhancement” focusing on improving the development

quality of the listed company strengthening investor returns and striving to create more value for shareholders. The main work

is reported as follows:

I. IMPLEMENTATION AND EFFECTS OF THE ACTION PLAN

(I) Focus on Enhancing the “Five Values” and Implementing the Task Objectives of “OneIncrease One Stability and Four Improvements”

The Company resolutely implemented the spirit of General Secretary Xi Jinping’s important instructions

and instructions and in accordance with the CRSC Group’s “1241” development thinking fully promoted

industrial transformation and upgrading. We achieved good results in production and operation scientific

and technological innovation reform and development and corporate governance with a stable and positive

economic performance. In 2025 the total operating income reached RMB34677 million an increase of 6.23%

year-on-year; the total profit was RMB4908 million an increase of 3.75% year-on-year; the net profit attributable

to owners of the parent company was RMB3686 million an increase of 5.48% year-on-year. The return on net

assets was 7.53% an increase of 0.19 percentage points compared with the end of last year. The Company was

awarded the “Double A” rating in the 2024 annual and 2022–2024 term central enterprise responsible person’s

operating performance assessment.(II) Focus on the “Dual Tracks” of Rail Transit and Low-Altitude Economy and Lead the

Development of New Quality Productive Forces through Scientific and Technological

Innovation

We accelerated digital and intelligent empowerment in the field of rail transit control. The cloud-based two-

layer train control system completed commissioning tests and overall machine verification; the key functions

of the Intelligent Connected Integrated Operation and Control Platform (I-CTC) and Intelligent Fault Prediction

and Health Management Platform (I-PHM) were continuously improved; the independent C3+ATO equipment

helped CR450 maintain the world-leading advantage in operating speed; digital urban rail systems such as Qiji

(啟驥) Xihe (羲和) and the train autonomous operation system based on train-to-train communication further

expanded their applications in Shanghai Shenzhen Hefei and other places; the digital solution for freight

railways was accelerated; the 35000-ton heavy-haul train group operation control system achieved the world’s

first test operation; the on-board solution for European railway interoperability opened the door to the core EU

market; a number of major scientific and technological achievements such as the new railway operation control

system the new operation control system based on Beidou positioning and the regional rail transit collaborative

transportation and service system were put into application one after another. The Company made breakthrough

progress in the field of low-altitude smart operation control. We constructed a “1+4” joint innovation system with

“low-altitude airspace management and control” as the core and “low-altitude communication perception andcountermeasure digital base and UAV” as coordination achieving three core technological breakthroughs: the

Intelligent Low-altitude Airspace Control System (ID-Space) the “One Tower One City (一塔一城)” low-altitude

communication private network and the perception and countermeasure system. The Company participated in

1Corporate Value and Return Enhancement Action Plan In 2026

the compilation of national ministerial system plans such as key guidelines for low-altitude economy industrial

white papers on low-altitude economy and standards for low-altitude intelligent networking and equipment

industry. ID-Space was deployed on municipal-level platforms in Qingdao Shijiazhuang Xiong’an New Area

etc.; the “One Tower One City” communication private network underwent pilot applications in Nujiang Baotou

Nanjing and other places; the perception and countermeasure system was deployed and applied in cities such as

Xiong’an Dali Wushan as well as key areas such as the Beijing-Shanghai High-speed Railway Qinghai-Tibet

Railway and Guangzhou Baiyun Airport; the self-developed small long-range composite-wing UAV rolled off the

production line and conducted test flights launching and applying a number of new scenarios such as Nujiang

alpine agricultural transportation Zhoushan inter-island logistics Dongying Yellow River Estuary low-altitude

cultural tourism and Zhanjiang-Haikou “air-rail intermodal transport” promoting the coordinated development of

“rail + low-altitude”.(III) Focuse on Core Businesses to Improve Quality and Efficiency and Pursue Steady

Progress in Market Operations

In 2025 the new signed contract amount reached RMB44140 million including RMB40128 million in the

rail transit market (RMB25713 million in the railway sector an increase of 0.3% year-on-year; RMB10503

million in the urban rail transit sector an increase of 4.97% year-on-year; RMB3912 million in the overseas

sector a decrease of 33.90% year-on-year) and the new signed contract amount in the low-altitude economy

market increased rapidly to RMB165 million. In the railway market adhering to the combination of stock

optimization and incremental breakthrough the Company consolidated its leading position in the industry

undertaking more than 10 key high-speed railway weak current system integration projects such as the

Zhuhai-Zhaoqing Shenzhen-Shanwei Shijiazhuang-Xiong’an Hezhou-Zhanjiang Nantong-Suzhou-Jiaxing-

Ningbo and Guangzhou-Xinjiang Wuluwati Railway Line 5 and 6; we also undertook key projects such as

the Sanshangliang Railway Special Line the overhaul of the interlocking train control and communication

systems of the Shijiazhuang-Taiyuan Passenger Dedicated Line the capacity expansion and renovation of the

Baicheng-Aershan Railway the construction of the safety standard demonstration line of the Wuhan-Guangzhou

section of the Beijing-Guangzhou High-speed Railway the capacity expansion and renovation of Hami East

Station the customer service system of the Hengshui-Huanghua section of the Shihengcanggang Railway

and the customer service system of the Northeast Ring Line of Beijing Suburban Railway; the new signed

contract amount for high-speed railway renewal and renovation projects was RMB3996 million an increase

of 99.96% compared with the same period last year. In the urban rail transit market facing the slowdown in

subway construction investment the Company consolidated its operational responsibilities and with its leading

technical strength and high-quality services achieved a good growth in new signed contracts undertaking

more than 10 urban rail signal system integration projects such as the renovation of Nanjing Line 1 Chengdu

S5 Meishan Line renovation of Shanghai Line 1 Xiamen Line 9 Beijing-Xiong’an Express Line Shanghai Line

19 and Shanghai Line 23 further expanding its leading advantage; we undertook relevant professional projects

in Beijing Shanghai Wuhan Changchun and other places to stabilize the basic market of urban rail transit;

the undertaking of urban rail transit-related renovation business increased by more than double further seizing

market opportunities. The new signed contract amount of municipal housing construction business decreased

by 81.84% compared with the same period last year accounting for 1.93% the core responsibilities and main

businesses became more focused and the overall business structure tended to be optimized.

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(IV) Optimize the Innovation Ecosystem and Improve the Transformation of R&D

Achievements

The Company adhered to the principle that science and technology are the primary productive forces talent

is the primary resource and innovation is the primary driving force and transformed the “key variable” of

scientific and technological innovation into the “maximum increment” of high-quality development. In 2025

CRSC’s R&D investment intensity reached 6.49% an increase of 0.21 percentage points compared with the

same period last year. We built a high-level innovation ecosystem issued special rewards to technical research

teams strengthened industry-university-research cooperation and introduced academician teams to settle

in. The Company promoted the efficient transformation of R&D achievements and carried out large-scale

application demonstrations of new technologies new products and new scenarios. For example the cloud-

based two-layer train control system based on track-side digital intelligence was demonstrated and applied

in local railways; CR450 equipment obtained commercial contracts and supplied goods; lightweight 5G base

stations were demonstrated and applied in Chengdu North Station; the intelligent operation and maintenance

platform completed the deployment installation and testing of platform software at the Shanghai Puhuitang

Operation and Maintenance Center; the high-toughness C2+ATO system won a project contract of about

RMB717 million; the “one network unified flight (一網統飛)” Operations Service System has been launched

and deployed at over 50 locations in Nanjing Qingdao Shanghai Rongjiang and other areas; projects such

as metro network inspections in Chongqing and Hefei low-altitude inspections along the Hengxi Expressway

and drone inspections of smart salt fields in Qinghai have secured contracts totaling approximately RMB 55

million yuan with a cumulative inspection distance of 1.36 million kilometers; the company continues to deepen

the coordinated development of “rail transit + low-altitude” operations and has established the Low-Altitude

Transportation Branch of the China Urban Rail Transit Association.(V) Strengthen Market Value Management and Enhance Investor Returns

The Company is fully confident in the long-term stable and positive development of China’s economy and firmly

optimistic about the development prospects of China’s capital market. Based on improving the development

quality of the listed company we adhered to laws and regulations took multiple measures to strive to improve

the Company’s investment value and actively studied and comprehensively used various methods to share

development achievements with investors. In 2025 CRSC’s A-shares were included in the CSI 180 Index for

the first time; the Company remained included in multiple index components such as the CSI 300 Hang Seng

Composite Index and STAR 50 and its corporate influence continued to enhance. We established a long-term

mechanism for market value management formulated market value management systems and promoted the

long-term stable performance of the Company in the capital market. The Company actively paid attention to

market conditions public opinion information investor sentiment etc. monitored and analyzed the causes of

stock price fluctuations and timely launched market value maintenance measures in combination with market

conditions. In terms of information disclosure we paid more attention to investor needs adhering to laws and

regulations to ensure that all investors obtained effective information fairly. By the end of 2025 the Company

had obtained the “A” level evaluation for information disclosure of STAR Market listed companies of the

Shanghai Stock Exchange for three consecutive years.

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(VI) Adhere to the Policy of Implementing a High Proportion of Cash Dividends

The Company adhered to implementing a high proportion of cash dividends to provide positive and stable

returns to shareholders. After being reviewed and approved by the Company’s Board of Directors and General

Meeting of Shareholders a cash dividend of RMB1.70 per 10 shares (tax inclusive) was distributed to all

shareholders in 2024 with a total cash dividend of RMB1800 million (tax inclusive) accounting for 51.51% of

the Company’s net profit attributable to shareholders of the listed company in 2024.(VII) Establish a Multi-Level Investor Communication and Interaction Mechanism

We adhered to the concept that communication creates value actively carried out investor relations

maintenance work organized investor exchange activities in an orderly manner listened to investors’ voices

attached importance to market feedback reasonably guided expectations and conveyed the Company’s value.Through communication and exchange we increased recognition from all parties allowing investors to get

close understand see clearly and have confidence. First the Company held regular performance briefings. In

May 2025 we held the 2024 Annual and First Quarter Performance Briefing with LOU Qiliang Secretary of the

Party Committee and Chairman of the Company leading the management team to attend. Investors had face-

to-face Q&A exchanges with the management team to gain an in-depth understanding of the Company’s main

achievements in reform and development and scientific and technological innovation. Second we carried out

investor exchange activities in an orderly manner. The Company conducted online or offline investor exchanges

through the “Shanghai Stock Exchange Roadshow Center” platform as well as scheduled online meetings and

on-site meetings. During the investor open day activities more than 50 institutional investors and securities

analysts visited CRSC toured the CRSC laboratory listened to expert explanations and learned about CRSC’s

scientific and technological innovation achievements in the fields of rail transit and low-altitude intelligent

management and control in recent years. Third we disclosed non-IFRS performance indicators added net

cash flow from operating activities after excluding group deposits highlighted key points and facilitated

investors to quickly grasp the Company’s operating conditions. Fourth the Company actively understood

investors’ demands promptly reported investors’ opinions and suggestions to the management team and

relevant business lines studied and formulated relevant measures and actively responded through compliant

information disclosure methods such as regular reports and temporary announcements. To actively respond to

investors’ concerns and facilitate investors to understand the Company’s operating conditions and investment

value in 2025 the Company voluntarily disclosed 7 announcements on winning bids for important rail transit

projects and recognition through scientific and technological innovation platforms involving a total project

amount of about RMB17104 million.

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(VIII) Adhere to Standardized Operation and Improve Governance Efficiency

The Company continued to improve and refine the corporate governance mechanism with legal and transparent

rights and responsibilities coordinated operation and effective checks and balances. We strengthened the

basic role of the Articles of Association in corporate governance revised the Articles of Association and a

series of corporate governance-related systems in accordance with the latest spirits of the Company Law

Securities Law and state-owned assets and securities supervision ensuring clear scope of responsibilities and

standardized decision-making procedures. In 2025 the Company held 7 Board of Directors meetings 12 special

committee meetings and 2 General Meeting of Shareholders. During the General Meeting of Shareholders

we used the “one-click access” reminder service for online voting at the General Meeting of Shareholders to

facilitate minority shareholders’ participation in corporate governance and promote shareholders’ extensive

participation in corporate governance. The Company implemented “zero gap” of information between internal

and external directors; independent directors conducted in-depth grass-roots research met and communicated

with external auditors conscientiously performed their duties expressed opinions fairly and objectively actively

safeguarded the interests of the Company and minority shareholders and made individual work reports at the

annual General Meeting of Shareholders to consciously accept the supervision of all shareholders.(IX) Strengthen the Responsibilities of the “Key Minority”

The Company maintained close communication with the “key minority” such as the actual controller controlling

shareholder shareholders holding more than 5% of the shares and the Company’s directors supervisors

and senior management tracked the performance of commitments by relevant parties and continuously

strengthened the sense of responsibility and performance awareness of relevant parties. The Company’s

directors supervisors and senior management actively participated in training on securities market laws

regulations and professional knowledge organized by SASAC stock exchanges China Association for Public

Companies and Beijing Association for Public Companies; the Secretary of the Board of Directors completed

follow-up education and training; we organized the Company’s executive directors senior management middle-

level department staff and key backbones to study the main rules and cases related to the securities market

strengthened the provisions and cases in terms of information disclosure insider information management and

compliant transactions and continuously improved their sense of responsibility and self-discipline.

5Corporate Value and Return Enhancement Action Plan In 2026

II. IMPROVEMENT MEASURES FOR THE 2026 ACTION PLAN

In 2026 the Company will continue to promote the “Corporate Value and Return Enhancement” special action. Based

on a comprehensive assessment of the implementation and effects of the 2025 special action we propose the following

optimization goals and measures:

(I) Focus on Core Responsibilities and Main Businesses and Further Improve

Operational Efficiency and Profitability

The Company will fully accurately and comprehensively implement the new development concept focus on

the theme of high-quality development closely focus on the overall goal of building a “national heavyweight”

in the field of intelligent control fully promote the maturity and finalization of four intelligent system businesses

strengthen and expand the intelligent terminal equipment industry consolidate the “first curve” create the

“second curve” focus on enhancing the “five values” effectively implement every task objectives and make agood start and lay a solid foundation for the high-quality transformation and development during the “15th Five-Year Plan” period.(II) Strengthen Scientific and Technological Innovation and Further Enhance the

Momentum for the Development of New Quality Productive Forces

We will accelerate the research on key core technologies build a source of original technologies accelerate

the layout cultivation and growth of emerging industries and future industries and continuously improve the

capacity and level of scientific and technological innovation. In 2026 the R&D investment intensity will strive

to reach 6%. The Company will deeply cultivate the “dual tracks” of rail transit and low-altitude economy

accelerate the cultivation of emerging industries such as low-altitude economy smart cities and intelligent

operations and accelerate the development of intelligent terminal businesses. As a key track the low-altitude

economy will adhere to the integrated development pattern of “three industries and one ecology” and deeply

participate in the formulation of national low-altitude industry plans and standard regulations; we continue to

advance research on the intelligent control system for low-altitude airspace under the “100 Major Projects”

initiative and promote its implementation at both the provincial and municipal levels; develop intelligent

flight control and swarm intelligent collaborative operation systems; accelerate the industrialization of low-

altitude communication private networks; accelerate the R&D and full-scenario application of characteristic

technologies of perception and countermeasure systems and actively seize the security market of key places

regions and events; improve the “one network unified flight” operation service system and enhance low-altitude

collaborative management and service capabilities; focus on key scenarios deployed by the state such as

inspection logistics urban governance emergency rescue and low-altitude cultural tourism and promote the

implementation and construction of demonstration projects; accelerate the cultivation of inspection and testing

capabilities and build an inspection and testing system for low-altitude intelligent networking systems and

product equipment.

6Corporate Value and Return Enhancement Action Plan In 2026

(III) Intensify Market Development Efforts and Further Consolidate the Leading Position

in the Industry

The Company will seize the renewal and renovation market closely monitor the dynamics of high-speed railway

lines entering the overhaul and renovation cycle drive the landing of domestic key conventional speed railway

renovation orders with intelligent products and focus on key cities such as Shanghai Guangzhou and Nanjing

to seize the urban rail renovation market. We will gradually expand the operation and maintenance market build

an intelligent operation and maintenance management platform integrating multiple professional fields and

promote the rapid formation of scale in operation and maintenance business. The Company will strengthen the

expansion of strategic emerging markets continue to deepen government-enterprise cooperation to promote

the landing of management and control platforms; continue to deeply cultivate smart railway stations smart

factories and mines and smart logistics parks quickly break through markets such as smart port and waterway

and civil aviation ground services and expand the application of intelligent operations in factories and mines

ports terminals comprehensive logistics parks etc. We will implement the Belt and Road Initiative and the high-

speed railway “going global” strategy accelerate the layout of overseas operations expand market operation

areas strengthen overseas joint ventures and cooperation seek major breakthroughs in overseas business and

promote the “going global” of China’s railway standards and railway equipment.(IV) Strengthen Market Value Management and Strive to Further Enhance Investors’

Sense of Gain

Based on improving the development quality of the listed company the Company will adhere to laws and

regulations focus on improving the Company’s intrinsic value and market recognition strive to improve the

Company’s investment value and promote the long-term stable performance of the Company in the capital

market. The Company’s Party Committee and Board of Directors will closely monitor the market’s reflection

of the Company’s value. When the market performance deviates significantly from the Company’s value we

will conduct prudent analysis and judgment actively take measures strive to promote the improvement of the

Company’s investment value and effectively safeguard the interests of investors.(V) Adhere to the Policy of Implementing a High Proportion of Cash Dividends

The Company is committed to actively providing stable returns to shareholders. After being reviewed and

approved by the 35th meeting of the 4th Board of Directors of the Company it is proposed to distribute a cash

dividend of RMB1.70 per 10 shares (tax inclusive) to all shareholders based on the total share capital registered

on the equity registration date for the implementation of the equity distribution. As of 31 December 2025 the

total share capital of the Company was 10589819000 shares. Based on this the total cash dividend to be

distributed is RMB1800 million (tax inclusive) accounting for 48.84% of the Company’s net profit attributable to

shareholders of the listed company in 2025.

7Corporate Value and Return Enhancement Action Plan In 2026

(VI) Establish a Multi-Level Investor Communication and Interaction Mechanism

The Company will adhere to the concept that communication creates value actively carry out investor relations

maintenance work organize investor exchange activities in an orderly manner listen to investors’ voices attach

importance to market feedback reasonably guide expectations and convey the Company’s value. Through

communication and exchange we will increase recognition from all parties allowing investors to get close

understand see clearly and have confidence. We will hold regular performance briefings plan to hold 3

performance briefings with the Company’s directors and senior management attending the annual performance

briefing. The Company will disclose non-IFRS performance indicators add net cash flow from operating

activities after excluding group deposits highlight key points and facilitate investors to quickly grasp the

Company’s operating conditions. We will actively communicate and interact with investors through compliant

disclosure platforms investor briefings roadshows reverse roadshows (Company open days) analyst

meetings reception of research visits etc. making full use of digital technologies such as live broadcasts

video conferences and online meetings timely respond to investors’ demands and protect the legitimate rights

and interests of all types of investors. Investors can make an appointment by calling or sending an email to the

Company’s email address ir@crsc.cn.(VII) Adhere to Standardized Operation and Improve Governance Efficiency

The Company will fully implement the “Two Integrations” unify the strengthening of Party leadership with the

improvement of corporate governance clarify the scope of rights and responsibilities of each governancesubject through lists and further improve the corporate governance system of “legal and transparent rightsand responsibilities coordinated operation and effective checks and balances”. We will strengthen the basic

role of the Articles of Association in corporate governance clarify the management boundary of state-owned

shareholders over listed companies and effectively maintain the independence of listed companies. The

Company will give full play to the role of special committees and actively provide suggestions for the Board of

Directors. We will strengthen the support for independent directors to perform their duties increase the intensity

of the Board of Directors’ review of investment projects and establish a mechanism for external directors

(including independent directors) to participate in the research and demonstration of major and complex

projects in advance. The Company will strengthen the supervision of resolution implementation and authorization

management rely on the regular feedback and reporting mechanism effectively give play to the supervisory

function of the Board of Directors and systematically improve the scientificity and effectiveness of the Board of

Directors’ decisions. We will actively use the “one-click access (一鍵通)” reminder service for online voting at

the General Meeting of Shareholders to facilitate minority shareholders’ participation in corporate governance.

8Corporate Value and Return Enhancement Action Plan In 2026

(VIII) Strengthen the Responsibilities of the “Key Minority”

The Company will maintain close communication with the “key minority” such as the actual controller controlling

shareholder shareholders holding more than 5% of the shares and the Company’s directors and senior

management track the performance of commitments by relevant parties and continuously strengthen the sense

of responsibility and performance awareness of relevant parties. We will organize the Company’s directors

and senior management to actively participate in training related to listed company governance and laws and

regulations for no less than 15 hours per person actively participate in meetings and forums organized by

regulatory authorities strengthen the “key minority’s” mastery of securities market-related laws regulations

and professional knowledge continuously improve their sense of self-discipline and promote the high-quality

development of listed companies.The Company will continue to assess the specific measures of the Corporate Value and Return Enhancement

Action Plan and perform its information disclosure obligations in a timely manner. The Company’s plans work

plans and related forecasts involved in this report are forward-looking statements of non-existing facts which

do not constitute the Company’s commitments to investors. Investors are requested to pay attention to relevant

risks.Board of Directors of

China Railway Signal & Communication Corporation Limited

24 March 2026

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