"Star Daily" news on October 14th (Reporter Wu Xuguang) 'Multiple subsidiary companies have obtained the 'Civil Unmanned Aerial Vehicle Operation Certificate,' and it is expected that the low-altitude economy-related business will have a positive impact on the company's performance.' Yao Guiqing, an independent non-executive director of China Railway Signal & Communication Corporation, stated at the 2024 semi-annual performance briefing held today (October 14).

As a provider of rail transportation control systems, China Railway Signal & Communication Corporation has been very active in the low-altitude economy field recently. Currently, the company has signed strategic cooperation agreements with cities such as Nanjing, Suzhou, Hefei, Guangzhou, and Chengdu.

When discussing the company's layout in the low-altitude economy business sector, Yao Guiqing stated at the earnings conference that the company closely follows the national strategic emerging industries development plan, fosters and develops new productive forces, lays out a new track in the low-altitude economy, strengthens relevant technological breakthroughs, and has established a strategic emerging industries business unit at the headquarters level to coordinate the implementation of the new industry strategy.

However, concerning industrial landing and performance contribution, market institutions analysts told the 'Star Daily' reporter, 'China Railway Signal & Communication Corporation's low-altitude economy business sector is still in its early exploration and market promotion stage. The actual performance impact is most likely to be seen in 2025 or even later.'

China Railway Signal & Communication Corporation (CRSC) belongs to the industry of manufacturing railway transportation equipment, with main business segments including rail transit control system design integration, equipment manufacturing, and system delivery, providing full industry chain services for rail transit control systems.

In terms of performance, influenced by the year-on-year decrease in the total national bidding volume, the revenue and net profit of rail transportation control systems provider China Railway Signal & Communication Corporation declined in the first half of the year.

According to the financial report, China Railway Signal & Communication Corporation achieved revenue of 14.25 billion yuan in the first half of the year, a year-on-year decrease of 14.33%; achieved a net profit of 1.599 billion yuan, a year-on-year decrease of 12.32%; achieved a non-net profit of 1.56 billion yuan, a year-on-year decrease of 8.99%, with a basic EPS of 0.15 yuan, a year-on-year decrease of 11.76%.

Regarding the change in performance, China Railway Signal & Communication Corporation stated that the company focuses on the main task of development, promotes the transformation and upgrading of traditional industries, guards against operational risks, and has seen a decrease in project revenue.

During the earnings conference, an investor asked: "How are the urban rail orders changing for the company currently?"

In response, Yao Guiqing stated that domestic urban rail transit construction will continue to maintain a strong momentum. In terms of new construction projects, although national policies are tightening and some regions are experiencing a slowdown in urban rail construction due to factors like local debt risks, the nationwide stock of ongoing and planned projects is sufficient to support the industry's development. At the same time, the proportion of newly built urban rapid rail systems is increasing year by year, becoming a new growth point for construction.

"In terms of renovation projects, the country continues to implement large-scale equipment updating policies. Early commissioned urban rail line updates, upgrades, capacity expansions, and other projects are accelerating, with the total volume increasing year by year," added Yao Guiqing.

Regarding the current competition in the traditional rail transit market and changes in market share for the company, at the earnings conference, Lou Qiliang, Chairman and Executive Director of China Railway Signal & Communication Corporation, responded to questions from Star Daily reporters and some investors, stating that as the main force in China's rail transit construction, the company holds around 40% market share in the domestic urban rail transit control system, participating in the design, integration, products, and construction projects of rail transit control systems in over 50 cities including Beijing, Shanghai, and Shenzhen.

It is worth noting that recently, China Railway Signal & Communication Corporation announced that Lou Qiliang submitted a resignation report due to job responsibilities adjustment. Lou Qiliang resigned from the position of company president but will continue to serve as Chairman and Executive Director.

"The resignation of the President will not affect the company's normal operation and production. The company will actively proceed with the selection process for the President in accordance with relevant regulations," Lou Qiliang stated at the company's earnings conference.