This Action Plan is formulated with a view to upholding the development concept of “investors rst” as a listed company,actively responding to the practice requirements on corporate value and return enhancement of the Shanghai StockExchange, and safeguarding the interests of all shareholders of Zhuzhou CRRC Times Electric Co., Ltd. (the “Company” or“Times Electric”).In 2025, based on the condence in its future prospects and business value, the Company published the Corporate Valueand Return Enhancement Action Plan 2025 of Zhuzhou CRRC Times Electric Co., Ltd. (the “Action Plan”) on 29 March 2025,and published the Interim Evaluation Report on the Corporate Value and Return Enhancement Action Plan 2025 on 23August 2025. In accordance with the Action Plan, the Company actively carried out and completed various tasks in 2025,achieving sound results in high-quality operation, technological innovation and improving shareholder returns.Year 2026 marks a start of the 15th Five-Year Plan of China. In light of its philosophy of “high-quality operation andefcient management” and the strategy of “concentric diversication”, the Company will deeply cultivate the rail transitindustry with “smart technologies”, and ride on tailwinds from the “carbon peak and neutrality” strategy to innovativelydevelop emerging strategic businesses. Upholding a market-oriented approach, the Company leverages its advantages invertical integration of industry chain and cross-disciplinary technical expertise to promote the complementarycoordination and innovative integration of systems. Through digital transformation, the Company further deepens renedmanagement, continuously optimises resource allocation, improves efciency and benets, creates sustainable value forshareholders and achieves sound development, in an effort to become global preferred electrical system comprehensivesolution provider in the elds of transportation and energy at a faster pace. In 2026, the Company formulated theCorporate Value and Return Enhancement Action Plan 2026, with a focus on “improving business quality, strengtheningtechnological innovation, enhancing investor returns and fostering new quality productive forces” and based on itsdevelopment strategy and business conditions.
Set out below are the performance of the Corporate Value and Return Enhancement Action Plan 2025, and mainmeasures of the Corporate Value and Return Enhancement Action Plan 2026:
Persist in Professional Expansionand Focus on the Main Business forIn-depth Cultivation andRenement of Emerging Business
Persist in Innovation-drivenUpgrades to Better SupportHigh-level of Self-reliance andSelf-improvement
Persist in StrengtheningManagement of Proceeds to Boostthe Leap and Advancement of ourPrincipal Business
Persist in Promoting Renement toEnhance Management and DeepenDigital Transformation and Upgrade
Persist in Deepening QualityImprovement and EfciencyEnhancement to Solidify theCompany's Sustained Protability
Persist in Improving theConstruction of the Board ofDirectors to Enhance ModernCorporate Governance
Persist in Strengthening InvestorRelations Management andEstablishing a Multi-level andMutually Benecial InteractiveMechanism
Miscellaneous
Persist in Enhancing ShareholderReturns and Boosting Condence inthe Secondary Market
EBITDA of Basic earnings per share ofWeighted average return
on net assets of
RMB28.703 billion
RMB
6.454 billion
RMB
2.99
9.81%
RMB3.965 billionRMB
4.097 billion
Revenue ofNet prot attributable to
shareholders of the Company of
Net cash ows fromoperating activities of
Persist in Professional Expansion and Focuson the Main Business for In-depth Cultivationand Renement of Emerging BusinessIn 2025, the Company centered on supporting the construction of a modernised industrial ecosystem. By leveraging ouradvantageous independent core technologies in high-speed rail, we consolidated high-quality resources to vigorously fosterstrategic emerging industries, expedited the transformation and upgrades of our business. While venturing into new domains,competing in untapped markets, and cultivating new sources of growth, these efforts contributed to our stronger corecapabilities and higher-quality development. Under a two-winged strategy on transportation and energy, the Companyadhered to the “concentric diversication” development strategy to deepen business synergy, leading to steadily improvingoperational quality and efciencies with stronger core competitiveness.
In 2025, the Company recorded
RMB12.780 billionEmerging equipment business
15.806
Rail transit business
+7.99%+26.35%
RMB0.117 billion-26.05%
Rail Transit BusinessRMB12.106 billion
RMB
1.149 billion
RMB
0.652 billion
RMB
1.899 billion
Rail transit electric equipment segment
Communication signal system segment
Other rail transit equipment segment
Rail engineering machinery segment
YoY
+10.15%
YoY
+0.39%
+4.02%
YoY+0.26%
YoY
YoY
YoY
YoY
(1) Breakthroughs in rail transit business
? The CR450 EMU prototype has accumulated over 360,000km of fault-free mileage, setting newrecords of 453km/h single-train speed and 896km/h relative crossing speed? Completed the rst demonstration project of the “grid-source-storage-vehicle” coordinatedenergy supply system for heavy-haul railways in China; achieved the rst commercial applicationof permanent magnet traction technology in the eld of high-power new energy locomotives inChina? Maintained a domestic market share of 60.92% for urban rail traction system, leading the industryfor 14 consecutive years and penetrating into Xiong'an market for the rst time? Overhaul revenue maintained a growth; overseas business won bids in Asia, America and otherregions? The rst batch of rail engineering vehicles complying with European standards were ofciallydelivered? Ningbo Metro Line 8 FAO featuring advanced technologies opened with full functions, marking thefruition of our rst demonstration project for proprietary FAO application? Won the rst domestic EPC power supply project for Chongqing Metro Line 27 in the power supplysystem sector; and ranked among top three domestically in the platform door sector
(2) Seize development opportunities in emerging equipment industry to rapidly
strengthen and improve our business?Our IGBT module business established a clear leadership with the largest share in terms of delivery volume indomestic rail transit and power grid marketsNew energy applications continue to expand. According to NE Times, our power modules for new energy passengervehicles achieved installation of 2.6076 million sets in 2025, ranking second with a market share of 13.8%, only nextto BYD. In the new energy power generation market, our IGBT module shipments grew rapidlyOverseas revenue witnessed a signicant growthYixing IGBT production line reached full capacity; Zhuzhou SiC production line commenced operation smoothly; and abreakthrough was made in the 4th-generation trench-gate SiC MOSFET chip technologySensor business in the new energy sector stabilised and trended upwards with a signicant growth in delivery volume?
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?
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In 2026, the Company will rmly focus on its core responsibilities and operations, and comprehensively consolidate and upgrade scale ofits rail transit and emerging equipment businesses. Rail transit business, as the “cornerstone” of our high-quality development, willdeepen its presence in advantageous markets, expand the growth headroom and continuously strengthen core technologies and systemsolution capabilities in order to consolidate its industry leadership. Semiconductor segment, as a “new pillar” to our high-qualitydevelopment, aims to steadily expand its market share, release high-quality production capacity in an orderly manner, and actively fosternew growth drivers. Sensor business will focus on stable market share, structure optimisation and delivery on time, seeking to improveoperational quality and efciencies in light of the chip-focused strategy. For the automotive segment, a “power source” for ourhigh-quality development, we should rapidly hone core capabilities and continuously penetrate into key customer groups to enhance ourbrand equity and market inuence. For the new energy segment, a “growth driver” to our high-quality development, we should adhereto an all-element approach for benchmarking against top players, to accelerate overseas expansion and increase our competitivenessand share in global markets. For the marine segment, a “new pivot” for our high-quality development, we should seize the opportunitiesfrom electrication upgrade to step up strategic investment and enhance cross-regional synergy, with an aim to grow at scale. For theindustrial segment, a “new engine” for our high-quality development, we should deeply cultivate niche areas, diversify applicationscenarios and extend potential value of the industry chain, to build up a new business growth curve.
(3) Strengthen industrial layout and build a solid
foundation for high-quality developmentWe continued to strengthen the industrialisation capability in industries such as semiconductor and new energy passenger vehicleelectric drive system. Through the allocation of high-quality resources, we enhanced the specialisation level and scale of thesebusinesses. The low and medium voltage power device industrialisation (Zhuzhou) project completed plant construction and rst-phaseequipment move-in, and came into smooth tape-out operation. Indonesia base of CRRC Electric Drive completed and came intooperation, marking the rst step in our overseas expansion.
Low and medium voltage power device industrialisation(Zhuzhou) project
Indonesia base of CRRC Electric Drive
In 2025, the Company continued to promote deep integration of technological and industrialinnovation, to consolidate its technological leadership across the board. Remarkable resultswere achieved in the construction of technological innovation system, together with fruitfulbreakthroughs in core technologies, iterative upgrades of cutting-edge product platforms,and outstanding achievements in major projects.
For rail transit, the Company maintained its leading position in the rail transit industry,achieved further technological breakthroughs, and comprehensively enhanced theintelligence level of rail transit products.In emerging industries, we benchmarked against industry leaders and closely alignedourselves with customer needs with a focus on industrial product demands for powersemiconductor devices, new energy vehicle electric drive systems, sensor devices,medium-voltage transmission systems and wind/photovoltaic converters, reachinginternational leading levels for multiple technologies. By addressing weaknesses andcapitalising on strengths, the Company continuously commercialised R&D innovationoutcomes, thereby facilitating its rapid business growth.
In 2025, the Company's R&D expenditure reachedRMB3.177 billion, up 11.77%year-on-year.Proportion of R&D expenditure to the Company's revenue was
11.07%, down 0.34
percentage points year-on-year.
With a focus on its core technologies and main products, the Company adhered to andactively planned for intellectual property efforts to enhance its inuence in the industrycontinuously.
Ningbo CRRC Times Electric Equipment Co., Ltd., a subsidiary of the Company, wasaccredited as a National Specialised and New “Little Giant” Enterprise; and Zhuzhou TimesElectronic Technology Co., Ltd., a subsidiary, was named as an Individual Champion.
RMB3.177 billion
R&D expenditure in 2025 of
11.07%
Proportion of R&D expenditureto the Company's revenue of
Persist in Innovation-driven Upgrades toBetter Support High-level of Self-relianceand Self-improvement
In light of the key note of high-quality development, we adhere to self-reliance and strive forself-improvement on technologies, maintain signicant R&D investment, foster new quality productive forcesaccording to local conditions, strengthen the leading role of technological innovation, and promote industrialinnovation through technological innovation, bearing admirable fruits in technological innovation.
(1) Adhere to the leading role of technological innovation
to signicantly enhance technical strength
In 2025, the Company further tightened initiation management on scientic research projects, andclosely focused on core technologies and main products to strengthen the synergy between intellectualproperty portfolio, production lines and markets. By coordinating the planning of research projects invarious technical elds and highlighting key directions, we promoted a more focused approach toscientic research projects, improving R&D efciency and commercialisation of technologicalachievements effectively.The Company adheres to a“strategy-driven” and “market-oriented” approach(two-wheel drive), and determines research projects and carries out scientic research work from theperspectives of strategy and market.In 2025, with a focus on its core technologies and main products, the Company adhered to and activelyplanned for intellectual property efforts to enhance its inuence in the industry. In 2025, the Companywas granted404 new patents, including 15 patents overseas, bringing the total number of validpatents granted to the Company to3,858, of which over 60% are invention patents. We took the leador participated in the drafting of international, national, industry and group standards in transportationand energy sectors, among which 21 standards were released, leading to our consolidated industryposition.
New patents granted tothe Company in 2025:
patents overseas
3,858Total number of valid patentsgranted to the Company:
(2) Strengthen intellectual property protection to build
a solid technology barrier
In 2025, the Company achieved remarkable results in the construction of technological innovation system. We rened the“three-step” scientic research project initiation strategy on evaluating demand, objectives and resources, implemented a project completion review mechanism,and strictly enforced the execution responsibility for research projects. We deeply implemented the IPD concept, establishing “Product Denition Committee” atthe headquarters and “Product Denition Department” at subsidiaries to promote precise and efcient resource allocation.Fruitful breakthroughs were achieved in core technologies. We established a full-condition high-fault-tolerance system for permanent magnettraction systems, shifting from passive response to active control of permanent magnet faults. We completed application of hybrid SiC three-level topologytechnology in 400kW+ photovoltaic inverters, and passed national and industry standard certications successfully. We made a breakthrough in 4th-generationtrench-gate SiC MOSFET chip technology, reaching the international leading level. We deeply optimised and reconstructed uxgate signal processing algorithmsand temperature drift compensation models, signicantly improving sensor measurement accuracy and long-term stability under complex working conditions.Iterative upgrades were achieved for cutting-edge product platforms. We completed iteration of 6A HD version and CMD2.0 products to meetthe core needs of State Railway Group for intelligence, autonomy and control. We launched a pedigree of six types of construction equipment electric driveplatforms for complex working conditions such as plateau-cold and tunnel-geothermal for the rst time. We completed development of TQME6 door controlplatform, the rst domestic platform meeting the highest SIL4 safety level. Benchmarking against international rst-class standards, we completed development ofthe 5th-generation pure electric high-voltage SiC all-in-one electric drive product platform. We completed development of 0.5~4.3MW shaft generator converterseries, and on-vessel installation of the world's largest domestically-made shaft generator inverter.Outstanding achievements were made in major projects. We overcame the challenges of -50°C ultra-low ambient temperature and vibrationmagnitude of 5 times the national standard, helping Kazakhstan diesel locomotive traction converters obtain EAC certication. A breakthrough was made in ETCSmulti-system integrated switching technology, reaching the international benchmark level. We tackled the complete set of exible through-type co-phase powersupply system technology, and completed the rst domestic heavy-haul railway “grid-source-storage-vehicle” coordinated energy supply demonstration project.We completed commercial delivery of the world's rst underwater heavy-duty electric ROV as a leader in the electrication trend of global deep-sea operations.
In 2026, the Company will focus on technological breakthroughs and strive for commanding heights in science and technology.We will strengthen the dominant role of technological innovation and empower industrial upgrading through high-leveltechnological self-reliance and self-improvement.Strengthen research on core technologies. We aim to tackle key SiC application technologies, fully exploit system advantages in high-frequency scenarios,and improve traction converter efciency and power density. We plan to complete research and application of high-reliability, high-economy ve-level maintenancetechnical solutions for CR400AF electrical systems. For railway energy demand in weak grid and off-grid environments in western China, we are to tackle coretechnologies of exible power supply systems with new energy access. Also, we expect to tackle key core technologies of intelligent vision systems for industrialassembly and quality inspection.Accelerate product platform upgrades. We will develop lithium titanate power battery platform products meeting the technical requirements of ChinaRailway 3000HP heavy-haul hybrid locomotives. We aim to complete development of electrical systems for CDC-32K intelligent turnout tamping vehicles, and ATP/ATOprototypes for ETCS Baseline 4. We will develop a series of position sensor based on magnetostrictive, eddy current and magnetic encoder principles. We expect tocomplete small-batch verication of 2000V and 1500V 400kW+ string photovoltaic inverters. We will develop new integrated generator-drive extended-range hybridassembly platform. We will develop high-voltage high-power density converters for multi-power sources to meet the needs of large-tonnage mining converterscovering DC2600V. We will conduct research on power system platform technology for efcient electric submarine cable laying robots to effectively improvesingle-operation burial depth capacity.Accelerate the tackling of key projects. We will ensure CR450 to complete 600,000km operation assessment, to support China's high-speed rail enteringthe “era of 400km/h”. We will support FXD1BA locomotives to achieve 20,000-ton regular operation on Daqin Railway, breaking the monopoly of foreign technology.We aim to tackle stepping xed-distance and eet formation reconnection control technologies, to realise automated operation and intelligent formation for CZprojects.Build up testing capacity in full swing. We will deepen research on special testing technologies such as high altitude and sound quality, accelerateconstruction of a comprehensive simulation laboratory for complex environments, expand export testing qualications for wind, solar, hydrogen, energy storage andhydrogen products, circumvent international market barriers, and signicantly enhance testing quality and comprehensive product competitiveness.
(3) Deeply integrate technological and industrial innovation to
consolidate technological leadership across the board
In September 2021, Times Electric was listed on the Science and Technology Innovation Board of the Shanghai StockExchange with total proceeds of RMB7.555 billion. Since its listing, the Company has used the proceeds to nanceprojects such as the “application project of rail transit traction and network technology and system”,
the “application project on key technologies and system R&D of smart railway bureau and smarturban rail transit”, the “advanced technology R&D application project of new industry”, the “R&Dand manufacturing platform construction project of new-type rail engineering machinery”, the“innovative experimental platform construction project” and replenishment of working capital.
In 2025, the Company continued to strengthen management of projects nanced by the proceeds, and the cumulative IPOproceeds utilised accounted for 101.98% of the total amount. During the implementation process of these projects, westrictly followed the regulations governing management of proceeds to cautiously utilise the proceeds, ensuring that theprojects nanced by the proceeds progressed smoothly according to relevant plan. The application project of rail transittraction and network technology and system, application project on key technologies and system R&D of smart railway bureauand smart urban rail transit and R&D and manufacturing platform construction project of new-type rail engineering machinerywere completed. Thus, we promoted the Company's principal business development through the successful implementationof these projects, and achieved expected returns from these projects which enhanced our overall protability.
In 2026, the Company will continue to strengthen management of projects nanced by the proceeds, and fully complete theutilisation of IPO proceeds. At present, the innovative experimental platform construction project has been completed, andthe Company will earnestly promote the project management work of the advanced technology R&D application project ofnew industry. We will timely identify and solve difculties and pain points of these projects, ensure effective projectexecution as scheduled, and achieve continuous innovation and progress in technologies and products, to provide a strongsupport to smooth progress of our rail transit, new energy vehicles and other projects nanced by the proceeds and fuel ourhigh-quality development.
Persist in Strengthening Management ofProceeds to Boost the Leap and Advancementof our Principal Business
In 2025, the Company adhered to quality improvement through rened management by fully embracing intelligenttransformation. We continued to deepen the application of digital and intelligent technologies and actively explored newmodels and scenarios, to provide solid support for quality and efciency improvements in our business operations. Wepromoted the operation “cockpit” comprehensively to build a transparent, efcient and collaborative decision-makingcommand system. We deepened data integration application of LTC processes to steadily improve cash inow efciency.Reengineering of ITR main processes achieved remarkable results, improving on-site fault data collection efciency. Wepromoted the QMS quality management system to consolidate the quality control foundation of our branches andsubsidiaries. We built a new collaboration paradigm across treasury, business and nance functions, to promote deepintegration of capital management and business operations. We launched 11 AI application scenarios, opening a new stageof business intelligentisation. Our lean operation capacity gradually improved as we implemented regular cost control toeffectively reduce period expenses.
Persist in Promoting Renement toEnhance Management and Deepen DigitalTransformation and Upgrade
In 2026, we will continue to deepen the digital intelligence transformation to enable quality and efciency improvements.Focusing on business pain points and benchmarking against industry leaders, we will promote rened management andfull-domain intelligent transformation to upgrade operational quality aggressively. We will adhere to intelligenttransformation to continuously improve operational efciency and enhance real-time identication and early warningcapabilities under our digital risk control and broad supervision system. We will strengthen monitoring and early warning ofdigital supply chain with a focus on inventory at risks and materials for discontinued operations; and optimisenon-production material procurement management. From order to delivery, we aim to achieve a full process of transparentand controllable digital delivery. We plan to deepen digital service ITR process construction and data application; andachieve digital investment management featuring full-process online control over investment projects. We will adhere toefciency and prot enhancement, improving value creation continuously. To this end, we will comprehensively strengthencost control and tap potential in R&D, process optimisation and supply chain integration; strengthen budget guidancecomprehensively to improve resource utilisation efciency; and enhance rened management of three asset categories,ensure stable quarterly revenue and better collection of receivables, and optimise management on product delivery. We willstrengthen quality control on all fronts and steadily advance the “Cornerstone Action”. Accordingly, we will adoptPFMEA/CP tools for forward quality planning of key production projects and promote AI visual inspection. We will alsolaunch pilot vertical quality management in branches and subsidiaries, and conduct quality talent training in a tiered andcategorised manner, seeking to improve quality management level across the Company.
Times Electric has always adhered to the business philosophy of “contributing to the country through industrialdevelopment” and continuously enhanced its protability. In recent years, the Company has pursued high-qualitydevelopment driven by digitalisation, deepening its rened management practices. It has introduced its digital operation“cockpit”, which dynamically monitors key indicators and conducts quantitative and precise analysis throughout the entire valuechain. The Company explores value enhancement opportunities from multiple dimensions, including income source expansion,cost reduction and control, efciency enhancement and risk management. While contributing to the steady increase inshareholders' equity, the Company has improved the return on net assets to over 9%, achieving mutual benets and win-winoutcomes for the Company and its shareholders.
In 2025, the Company adhered to quality improvement through rened management by fully embracing intelligenttransformation. We deepened the application of digital and intelligent technologies and actively explored new models andscenarios, to provide solid support for quality and efciency improvements in our business operations. Steady intelligentisationprogress led to gradual improvements in our lean operation capabilities, boosting business quality and efciency effectively.In April 2025, the Company formulated and published a shareholders' dividend and return plan for the next three years (the“Three-year Return Plan”), in an effort to establish a rational and sustainable dividend decision-making and supervisionmechanism. In 2025, the Company actively carried out various tasks in accordance with the action plan and Three-year ReturnPlan. During 2025, the Company paid a total of RMB1.967 billion cash dividends for 2024 and the rst half of 2025.The Company proposes to distribute cash dividend of RMB0.68 (tax inclusive) per share to all the shareholders for 2025,totaling RMB923 million. Within the year, the Company's cash dividends (including the cash dividend payouts for the rst halfof 2025) aggregated RMB1.521 billion, accounting for approximately 37.12% of the net prot attributable to the shareholdersof the listed company as stated in the consolidated statements for 2025, an increase of 0.14% from the previous year.* In case of any change in the total share capital of the Company prior to the record date for implementation of the equitydistribution, the Company proposes to maintain the payout amount per Share unchanged, make corresponding adjustments tothe total payout amount, and will publish separate announcement(s) on the specic adjustments.
Looking ahead to 2026, we will deepen the digital intelligence transformation to enable quality and efciency improvements.Focusing on business pain points and benchmarking against industry leaders, we will promote rened management andfull-domain intelligent transformation to upgrade operational quality aggressively. We will adhere to intelligent transformation tocontinuously improve operational efciency. We will adhere to efciency and prot enhancement, improving value creationcontinuously. Quality management performance will be upgraded across the board to safeguard our protability.
Persist in Deepening Quality Improvementand Efciency Enhancement to Solidify theCompany’s Sustained Protability
Persist in Improving the Constructionof the Board of Directors to EnhanceModern Corporate GovernanceIn 2025, in light of the key note of high-quality development, the Company continued itsefforts in corporate governance, ESG practices, information disclosure and investorrelations management to consolidate the capabilities for long-term value creation, aswitnessed by our long-term investment and systematic construction for modern corporategovernance. For three consecutive years, the Company received the highest A-grade ratingin information disclosure by the SSE and won a number of authoritative honours includingthe Best Practice Cases of Board Ofces by the China Association for Public Companies,5A rating for board secretary performance, and Best Board Ofce Practice Case Award,demonstrating full recognition of its governance performance by the capital market.Construction of the Board of DirectorsThe Company continued to improve its corporate governance mechanisms andaccelerated the construction of a professional, responsible, standardised and efcientboard of directors.Firstly, we optimised the composition of the Board of Directors, ensuring that externaldirectors account for a majority of the board members, and independent directors accountfor no less than half of the board members. We actively expanded the channels forselecting employee directors. On 9 December, the Company timely and efcientlyappointed one female employee director through by-election, achieving a smoothturnover of directors and promoting gender diversity among board members.Secondly, we timely cancelled the Supervisory Committee in accordance with regulatoryrequirements, improved functions of the Audit Committee accordingly, and furtherimproved the supportive system for communication with independent directors and dutyperformance by directors. In accordance with the new Company Law and regulatoryrequirements, we formulated and revised 29 rules and policies including the articles ofassociation.Thirdly, duty performance capabilities of directors were strengthened. We implemented atraining plan for its directors, supervisors, senior executives, and other key personnel witha training coverage rate of over 90%. This comprehensive training plan, conducted bothonline and ofine, helped to enhance their knowledge of compliance and equip them withthe necessary skills to diligently fulll their obligations according to relevant laws, therebysafeguarding the interests of the Company and its shareholders as a whole.? Formulated or revised 29 governance rules? Attendance rate of independent directors: 100%? 7 meetings of the Board of Directors? 17 meetings of special committees under the Board of Directors? 5 regulatory compliance training sessionsInformation disclosure
In 2026, the Company will further improve its governance structure to enhance governance efciency. Wewill continue to follow up regulatory requirements, improve our governance system, and reinforce thefoundation of compliance governance. In 2026, we will take all-round initiatives to ensure re-election of theBoard of Directors, and strengthen the professional composition of independent directors. Meanwhile, theCompany will, in accordance with the listing rules of the Hong Kong Stock Exchange and the ShanghaiStock Exchange and based on its actual conditions, leverage the advantages in its diversied boardstructure to optimise member composition of the special committees under the board of directors, continueto optimise the support mechanism for duty performance of independent directors, and further strengthendeep communication and collaboration between independent directors and internal teams of the Company,to inject new vitality into our business development.
Times Electric strictly complies with the regulatory requirements of the Company Law, theSecurities Law, the Rules Governing the Listing of Stocks on the Science and TechnologyInnovation Board of the Shanghai Stock Exchange and the Rules Governing the Listing ofSecurities on the Hong Kong Stock Exchange and other laws, regulations and normativedocuments in fullling its information disclosure obligations to ensure that theinformation is disclosed in a true, accurate, complete, timely and fair manner and allshareholders have fair and equal access to the information, and to safeguard the interestsof all shareholders, especially the minority shareholders.186 SSE announcements and disclosure documentsHong Kong Stock Exchange announcements: 197 in Chinese and 121 in EnglishHonours and recognitions
? A-grade rating in information disclosure for three consecutive years, by the ShanghaiStock Exchange? Best Practice Cases of Board of Directors for two consecutive years, by the ChinaAssociation for Public Companies? 5A Duty Performance Evaluation of Board Secretaries of Listed Companies in 2025, by
the China Association for Public Companies? Best Practice Cases of Board Ofces of Listed Companies for 2025, by the China
Association for Public Companies? 2024 Vision Award – “Global 100” Platinum Award for the rst time, by the League of
American Communications Professionals (LACP)
The 16th Tianma Award for Investor Relations Management, by Securities TimesTop 30 Listed Companies by Value, ESG Top 100, and Sunshine Board Secretary Award, by Securities Times2025 Elite Award for Chinese Listed Companies – Investor Relations Demonstration Cases of H-shareCompanies, ESG Demonstration Cases of H-share Companies, Overseas Listing Demonstration Cases of A-shareCompanies, and Excellent Board Secretary, by ChinaFundHardcore Tech Breakthrough Award, by China Business Journal2025 Easy-Board “Value 100” award, by Value Online
Persist in Strengthening Investor RelationsManagement and Establishing a Multi-leveland Mutually Benecial Interactive MechanismIn 2025, under the principles of being comprehensive, proactive, collaborative, precise and efcient, the Company continuedto deepen investor relations management, and systematically built an efcient and transparent communication platform toensure effective communication with investors. We utilised various channels, including listed company publicannouncements, investor conferences, on-site exchange and research with investors, the SSE interactive platform, telephoneand email, to promptly, openly and transparently communicate corporate updates to the market. During 2025, the Companyresponded to investors' enquires through the SSE interactive platform, fully demonstrating the responsiveness and a highsense of responsibility for investors' concerns.
High-quality, multi-level and all-roundperformance briengsWe held activities at the SSE Roadshow Centerrespectively in May, September and December 2025,with the participation of senior managementincluding the chairman of the Board, independentdirectors and general manager of the Company,allowing the management to address investorconcerns. These events included the 2024Performance Brieng of Advanced Rail TransitCompanies on the STAR Market, the 2025 InvestorOnline Reception Day and Interim PerformanceBrieng of Hunan Listed Companies, the “CapitalGathering in Hunan to Enlighten New Journeys”the 2025 Investor Online Reception Day and InterimPerformance Brieng of Hunan Listed Companiesorganised by CSRC Hunan Branch, and the 2025 ThirdQuarterly Performance Brieng.
Strong ties for global capital exchangeTo deepen international investor exchanges, we heldthe 2024 annual results conference in Hong Kong on8 April 2025, attracting investors and senior analystsfrom global renowned nancial institutions. At theconference, our Chairman, independent directors,management, and Secretary to the Board hadproductive conversations with guests on key topicssuch as 2024 nancial performance, 2025 strategicplan, industry opportunities and challenges, and ESGconstruction. They also provided detailed responses tocommon investor concerns, effectively enhancingcondence from international capital market andlong-term recognition of the Company.
Innovative activity of investment relationsIn May 2025, the Company participated in “3 Minutesfor the STAR Market”, a featured activity hosted by theSSE. Our Chairman delivered a speech titled “A Start ofNew Journey Towards High-quality Development ofTimes Electric” to communicate our business resultsand growth expectations to investors, effectivelystrengthening our brand inuence in the capital marketas a central state-owned enterprise with technologicalinnovation excellence.
Reverse roadshowIn September 2025, the Company held a reverseroadshow titled “Deep Sea New Journey of TimesElectric” in Shanghai, where investors and analystswere invited to visit its subsidiary Specialist MachineDevelopments (Shanghai) Co., Ltd. on site and havein-depth dialogues with investors and analysts onmarine equipment related sectors.
Multi-platform investor communication under afull-chain interactive systemIn 2025, the Company held over 180 investor activitiesincluding quarterly, interim and annual performancebriengs, roadshows, reverse roadshows and surveys.The Company attaches great importance to the SSEinteractive platform as an important window forinvestor communication. In 2025, we responded to 386enquires from investors on the SSE interactive platform,fully demonstrating the responsiveness and a highsense of responsibility for investors' concerns.Communication with capital market helps to enhanceour visibility and inuence in the capital market, whichis benecial for optimising our share capital structureand long-term prospect of stock price. In 2025, we werecovered by 50 research reports released by majorbrokers, which gave the Company “Recommend”,“Buy” or other positive ratings in their latest reviews.
In 2025, the Company continued to strengthen investor relations management, maintain close communication with investors, and comprehensively establishan efcient and transparent platform for communication with investors. We ensured smooth channels of communication with investors and actively engagedin effective communication and exchanges with them, following the principles of being comprehensive, proactive, collaborative, precise and efcient, tobuild a solid communication bridge between the Company and the capital market.
Sound market capitalizationmanagement systemIn order to better safeguardshareholders’ rights andinterests, the Companyformulated the MarketCapitalization ManagementRules in March 2025. Byintegrating public opinionmonitoring into our dailymanagement system andcombining various strategies, wereasonably stabilize marketcapitalization, ensure thealignment of marketcapitalization with intrinsic valueof the Company, and effectivelyprotect the interests of investors.We continue to improve the fullchain of “value creation, valuetransmission, and valuerealisation”, and build amulti-dimensional shareholderreturn system to stabilize marketvalue expectations.
Recognitions
Staying in tune with the national trend of green and sustainable development to implement the ESG principles, the Company had disclosedthe Social Responsibility Report consecutively since 2009. In the Social Responsibility and Environmental, Social and Governance (ESG) Reportfor 2024 disclosed by the Company, we continued to improve our governance system and content of ESG report. Furthermore, we published anessay headed “ESG Report in One Picture”, combining concise graphics and text to illustrate the essence of the report.
The Company will continue to strengthen its ESG management and further enhance its ESG performance to underpin its high-qualitydevelopment.In 2026, to better safeguard shareholders' rights and interests, we will actively communicate with investors through various forms, answer andexplain various issues of concern to investors within the scope of legal compliance, enhance investors' sense of identication with the Company,and establish a sound corporate image in the capital market.
The third Guoxin Cup Top 100 for ESG Golden Bull Award, by China Securities Journal and China Reform HoldingThe 19th Value Evaluation on Listed Companies “ESG Top 100”, by Securities TimesESG Ratings Top 100 ESG Best Practices of China Listed Companies of AA-level Market Capitalization in 2025, by Wind Info“Top 20 A-share Listed Industrial Companies by ESG Performance in 2025”,“Top 50 A-share Listed Companies by Best Practices in Social (S) Dimension in 2025”, “Top 100 A-share Listed Companies byOutstanding ESG Performance in 2025” and “Top 100 A-share Listed Companies by Best ESG Rating Uplift in 2025”, bySino-Securities Index System2025 Best ESG Listed Companies on the STAR Market, by STAR Market Daily and Cailian Press
Persist in Enhancing Shareholder Returns andBoosting Condence in the Secondary MarketSince its listing on the Hong Kong Stock Exchange in 2006, Times Electric has maintained a stable dividend policy, with the annual dividend amountaccounting for over 20% of the net prot attributable to the parent company. With the steady development of the Company's performance, thedividend per share has increased year by year. Taking into account the needs of investors for returns and the long-term development of the Companyfollowing its debut on the STAR Market, the Company further increased dividend payout ratio and frequency during the year. From 2006 to 2025, theCompany distributed dividends of approximately RMB10.29 billion in total, representing 90.0% of the total proceeds raised from both markets.
Combining dividends and share repurchases to enhance shareholder returns in multiple dimensionsIn order to implement the investor-oriented concept for listed companies and safeguard the interests of all shareholders and based on the condencein future prospects and business value, the controlling shareholder, directors, supervisors and senior executives of the Company take initiatives oncorporate value and return enhancement to maintain a sound corporate image on the market. On 29 April 2025, the Company formulated andpublished a shareholders’ dividend and return plan for the next three years (2025-2027), emphasizing the continuity and stability of its protdistribution policy. Where conditions are met for cash dividend, the Company’s prot distribution in cash for each year should not be less than35% of the prot available for distribution generated for the year; and the total prot distribution in cash every three years should not beless than 105% of the annual average prot available for distribution generated in the past three years. In 2025, the Company actively carriedout various tasks in accordance with the action plan, taking into account the needs of investors for returns and the long-term development of theCompany to strike a sound balance between the interests of shareholders and sustainable business development.
In 2025, the Company distributed a cash dividend for 2024 of RMB10 per 10 shares (inclusive of tax) to all shareholders. Accordingly, the total amountof cash dividend paid out was RMB1.369 billion, accounting for approximately 36.98% of the net prot attributable to shareholders of the Companyin the consolidated nancial statements of 2024. The cash dividend per share represented a year-on-year increase of 28.21% over last year. Thedividend distribution was completed in August. In addition, as authorised by the shareholders’ general meeting, the Board of Directors resolved tomake an interim prot distribution, to distribute a 2025 interim cash dividend of RMB4.40 per 10 shares (inclusive of tax) to all shareholders.Accordingly, the total amount of cash dividend to be paid out was RMB597 million, accounting for approximately 35.75% of the net protattributable to shareholders of the Company in the 2025 consolidated interim nancial statements. The dividend distribution was completed inOctober.Distributing total dividends of RMB1.967 billion through two cash dividend distributions in 2025,effectively fullling the commitment to shareholder returns
Launching H-share repurchase in a total amount of HK$1.655 billionFrom December 2024 to June 2025, a total of 53,591,700 H-shares were repurchasedand cancelled, improving the earnings per share effectively.The Company adheres to the concept of better safeguarding shareholders’ rights and interests and creating greater value for shareholders. In 2026,we will attach great importance to generating reasonable investment returns to shareholders while pursuing sustainable and healthy businessdevelopment, with a focus on improving shareholder returns through concrete actions, thus actively responding to changes in the capital market andenhancing investors’ condence in our growth.
2006 to 2025
Prot distribution plan for 2025 to 2027Prot distribution in cash for each year should not be less than 35% of the prot available for distribution generated forthe year; and the total prot distribution in cash every three years should not be less than 105% of the annual averageprot available for distribution generated in the past three years.
Dividend distribution for 2024
2025 interim dividend distribution
In 2025, the Company advanced its high-quality development by implementing the Corporate Value and Return Enhancement Action Plan. Stayingfocused on its principal business, the Company continued to optimise operational management, improve business quality comprehensively, and strengthenmanagement and maintenance of investor relations, thus safeguarding the legitimate rights and interests of investors effectively.Through continuous evaluation on the measures adopted, the Company further optimised and developed the Corporate Value and Return EnhancementAction Plan 2026 on the basis of the Action Plan 2025. Looking into 2026, we will rmly adhere to the key note of high-quality development, tap into newscenarios and markets for our advantageous businesses, and focus on protability enhancement for our businesses under development. Through high-quality andefcient operations, we are dedicated to building an enterprise fullling the “four higher goals” in social recognition, shareholder recognition, customer satisfactionand employee happiness. The Company will continue to enhance its core competitiveness and foster new quality productive forces. Through robust businessmanagement and standardised corporate governance, we will take initiatives to give back to our investors, effectively fulll our responsibilities and obligations as alisted company, and contribute to stable and healthy development of the capital market.This Action Plan is developed based on the Company's current conditions and does not constitute a material commitment of the Company to investors. Given theuncertainties due to the potential impact from macroeconomic policy adjustments and changes in industry market and environment in the future, among otherfactors, investors are advised to be aware of the risks involved.
Miscellaneous