On the evening of October 28, China Railway Signal & Communication Corporation Limited (CHINA CRSC) released its third-quarter financial report. The data showed that the company's revenue for the first three quarters of the year reached 217.48 billion yuan, a year-on-year increase of 4.48%. However, its non-GAAP net profit attributable to shareholders declined by 3.07% to 22.03 billion yuan.
Railway and urban rail transit remain CHINA CRSC's primary and secondary end markets, respectively. In the first three quarters, revenue from these two sectors amounted to 126.04 billion yuan and 57.81 billion yuan, growing by 4.78% and 14.46% year-on-year. Overseas business revenue, however, dropped 21.90% to 13.82 billion yuan during the same period.
According to the financial report, CHINA CRSC secured new external contracts worth 274.73 billion yuan in the first three quarters, down 5.68% compared to the previous year. Among these, railway sector contracts rose 17.95% to 172.52 billion yuan, while urban rail transit contracts increased 16.12% to 56.56 billion yuan. Overseas business contracts, however, plunged 48.30% to 20.22 billion yuan. Engineering, procurement, and construction (EPC) contracts fell 56.44% to 24.90 billion yuan, while the emerging low-altitude economy sector contributed 53 million yuan in new contracts.
An industry insider from the rail transit signaling sector noted that railway investments have shown strong growth this year, with expanding operational mileage and high demand for railway signaling equipment. This explains CHINA CRSC's robust revenue and contract growth in the railway market.
Regarding urban rail transit, the insider highlighted that CHINA CRSC, as China's earliest rail transit control system provider, holds a 40% market share domestically. With stricter approvals for new urban rail projects in recent years, the focus has shifted to upgrades, renovations, and maintenance—areas where CHINA CRSC's early market presence gives it a competitive edge.
In the past two years, the low-altitude economy has emerged as a key growth area, attracting companies like CHINA CRSC, Traffic Control Technology, and United Electronics. CHINA CRSC stated it is actively expanding into intelligent rail transit, low-altitude applications, smart cities, and automated operations, leveraging its expertise in control systems to diversify into new sectors.
The insider explained that signaling companies are drawn to the low-altitude economy due to the operational similarities between rail transit signaling and low-altitude traffic management systems—both prioritize safety and collision avoidance. With limited growth and intense competition in rail transit, these firms are exploring low-altitude opportunities as a new revenue source.
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