CRSC Q3 2026 Update: Revenue Slips 1.8%, Net Profit Down 17.5%, Cash Flow Turns Positive

Bulletin Express10-27

China Railway Signal & Communication Corporation Limited (CRSC) released its unaudited results for the quarter ended 30 September 2026, highlighting softer top-line growth, a sharper drop in profitability and a notable turnaround in operating cash flow.

Revenue and Profitability • Third-quarter revenue edged down 1.84 % year on year to RMB 6.95 billion, while total profit fell 10.87 % to RMB 0.76 billion. • Net profit attributable to shareholders declined 17.51 % to RMB 0.55 billion, translating into basic and diluted EPS of RMB 0.05 (-28.57 %). • For the nine-month period, revenue decreased 3.28 % to RMB 21.03 billion; attributable net profit contracted 11.53 % to RMB 2.02 billion.

Margins & Returns • Weighted average ROE slipped 0.27 ppts year on year to 1.05 % in Q3 and stood at 4.02 % for the nine-month period (-0.68 ppts).

Operating Cash Flow Rebound • Net cash from operating activities turned positive at RMB 15.18 million for January–September, versus a RMB 3.75 billion outflow a year earlier. Management cited higher deposits from the parent group at the in-house finance subsidiary and lower supplier payments.

R&D Commitment • Research and development expenditure increased 6.94 % year on year to RMB 1.42 billion for the first nine months, lifting the R&D-to-revenue ratio by 0.65 ppts to 6.76 %.

Balance-Sheet Snapshot (30 September 2026) • Total assets: RMB 117.42 billion (-0.76 % YTD) • Equity attributable to shareholders: RMB 50.06 billion (+0.44 % YTD) • Cash and bank balances: RMB 19.83 billion

Segment Performance (Jan–Sep 2026) • Railway: Revenue up 0.45 % to RMB 12.66 billion • Urban Rail Transit: Revenue down 4.72 % to RMB 5.51 billion • Overseas: Revenue down 17.31 % to RMB 1.14 billion • Construction Contracting: Revenue down 14.52 % to RMB 1.56 billion • Other Business: Revenue up 3.85 % to RMB 0.16 billion

Order Intake New contract value totaled RMB 25.98 billion in the first three quarters (-5.44 %). Railway orders dropped 6.02 % to RMB 16.21 billion, while overseas orders grew 10.93 % to RMB 2.24 billion. Contracts in the emerging smart low-altitude segment surged 281.13 % to RMB 0.20 billion.

Capital Structure & Shareholding As at 30 September 2026, state-owned parent China Railway Signal and Communication (Group) Corporation Limited held 62.46 % of CRSC’s shares. The free-float is primarily held through HKSCC Nominees with an 18.58 % stake.

Auditor Status The third-quarter financial statements were unaudited.

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