"Star Market Daily" reported on October 14th (Reporter Wu Xuguang), "Several subsidiaries have obtained the Civil Aviation Administration of China unmanned aviation operator 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 today's (October 14th) 2024 interim earnings conference.

As a provider of rail transit control systems, China Railway Signal & Communication Corporation has been 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.

Regarding the company's low-altitude economy business sector layout, Yao Guiqing stated at the earnings conference that the company closely follows the national strategic emerging industry development plan, nurtures and develops new productive forces, lays out new tracks for the low-altitude economy, strengthens related technical breakthroughs, and has established a strategic new industry business unit at the headquarters level to coordinate the implementation of the new industry strategy.

However, concerning industrial deployment and performance contributions, market analysts mentioned to "Star Market Daily" that, "China Railway Signal & Communication Corporation's low-altitude economy business sector is still in the early exploration and market promotion stage. Real performance results are likely to be seen around 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, due to the year-on-year decline in national bidding volume, rail transit control system provider China Railway Signal & Communication Corporation's revenue and net profit both 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%; realized a net profit of 1.599 billion yuan, a year-on-year decrease of 12.32%; achieved a non-GAAP net profit of 1.56 billion yuan, a year-on-year decrease of 8.99%, with basic earnings per share of 0.15 yuan, a year-on-year decrease of 11.76%.

China Railway Signal & Communication Corporation stated that the company focuses on the main tasks 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, "What is the current change in urban rail orders for the company?"

In response, Yao Guiqing stated that domestic urban rail transportation construction will still maintain a relatively high intensity. In terms of new projects, although national policies are tightening and some regions are experiencing a temporary slowdown in urban rail construction due to risks like local government debt, there is still a sufficient number of ongoing and planned projects nationwide to support industry development. Additionally, the proportion of new urban rapid rail projects is increasing year by year, becoming a new growth point in construction.

"In terms of equipment upgrades for renovation projects, the country continues to implement large-scale equipment update policies, accelerating the implementation of early operational urban rail line renovations, upgrade renovations, capacity expansion renovations, and other projects, with the total volume increasing year by year," added Yao Guiqing.

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

It's worth noting that recently, China Railway Signal & Communication Corporation announced that Lou Qiliang submitted a resignation report due to a job role adjustment. Lou Qiliang stepped down from the position of company president but will continue to serve as the chairman and executive director of the company.

"The resignation of the president will not affect the company's normal operation and production. The company will actively proceed with the relevant work of selecting a new president in accordance with the regulations," expressed Lou Qiliang at the company's earnings conference.