中国通号:CRSCValueandReturnEnhancementActionPlanin2024

【摘要】CRSCValueandReturnEnhancementActionPlan(2024)Inordertoactivelyimplementtheinvestor-orientedphilosophy,inresponsetothec...

 CRSC Value and Return Enhancement Action Plan (2024)
In order to actively implement the investor-oriented philosophy, in response to the call of the
SSE’s Science and Technology Innovation Board, China Railway Signal & Communication

Corporation Limited (hereinafter referred to as “the Company” or “CRSC”) develops this plan
from operations management, corporate governance, disclosure of information, and investor
returns in the light of the stage of development of the enterprise, the characteristics of the
industry, and investors’ demands. This plan aims to improve the quality of listed companies
held by the central enterprises, and seeks to create more value for investors and strengthen
investor returns.

The Company’s Leading Group for Quality and Efficiency Improvement will actively organize
the implementation of this plan at all levels throughout the group of CRSC, and promote it in
concert with the implementation of the Company’s 14th Five-Year Plan for Development, the
efforts to expedite the construction of a world-class enterprise, and the improvement of the
quality of listed companies.

CRSC’s main measures to “improve quality and efficiency and increase returns” are as

follows:

I. CRSC will Deeply Explore the Main Industry to Cultivate Advantages, and Put Forth Effort
to Enhance Its Ability to Create Enterprise Value.

Focusing on the main responsibilities and main business, we will develop the real economy,
and constantly consolidate the foundation of development, so as to have more prominent
main business and more obvious competitive strengths. We will adhere to the orientation of
serving the national strategy, promote the high-end, intelligent and green transformation of
rail transportation, give full play to the advantages of the “three-in-one” services in the full
industry chains, and maintain the leading position in the industry around the globe. In 2024,
we will strive to achieve a steady improvement in economic efficiency, return on net assets,
overall labour productivity, and operating cash ratio.

1. Innovation in newly expanded markets will be strengthened, and the leading edge will
be expanded. We will strengthen the market development efforts and resource investment,
conduct in-depth research and analysis, and make plans for market operation in advance. As
projected, the Company’s market size of high-speed railway weak electricity system

integration in 2024 will not be smaller than that in 2023, and the peak bidding period will be
concentrated in the second quarter and the fourth quarter. The company will make every

effort to ensure that stable market share at a high level. In the field of urban transit control
system, it is expected that in 2024, there will be more than 20 new/extended lines of

approximately 800 kilometers for signaling system bidding. The Company will actively strive
to stabilize the contract undertaking scale. We will strengthen high-end and differentiated
competitive strengths in rail transportation, actively develop “system, product, construction
+ operation and maintenance” mode. In the meantime, relying on joint ventures and

cooperation and other means, we will seize the large regional markets, establish the

first-mover advantage of high-speed rail overhaul and transformation market, seize the

incremental opportunity of urban express rail, and expand the new construction and renewal
of general railway and the market share of the newly-built subway, explore the opportunity

of contracting the “Four Electric Systems” business of the newly-built high-speed railway,

promote the operation and maintenance business to form scale, and strive for the steady

growth of the business scale.

2. Efforts will be made to strength the control over costs and expenses and accounts

receivable, and to enhance the quality of operating efficiency. We will strengthen the rigid
constraints of the budget, strictly control the expenses, increase the efforts to reduce costs
and save expenses in the whole industry chain and value chain, expedite the progress in the
construction of the information system that integrates industry and finance, and solidly

promote the control of all-factor costs. We will continuously promote differentiated and

penetrating control work, fully consider customer credit, solvency and risk factors, and

establish a negative list for project contracting, so as to control risks from the source. We will
continue to carry out the special management of accounts receivable, strengthen the

process monitoring and early warning, and actively pursue recoveries in conjunction with

project cleanup. Also we will improve the level of information management and control.

With financial sharing as an opportunity, we will advance the integration of business and

finance and continue to promote the digitization of business front end, and realize the

automated capital income and expe