CRRC: 2015 Interim Profit Attributable to Owners of the Company Grows 6.85%, Revenue from Overseas Market Soars 61.22%

HONG KONG, Aug. 31, 2015 /PRNewswire/ --

The world's largest supplier of rail transit equipment with the most complete product lines and leading technologies, CRRC Corporation Limited ("CRRC" or the "Company", stock code: 1766), today announced its unaudited interim results for the six months ended 30 June 2015 (the "period under review").

During the period under review, the merger between CSR Corporation Limited and China CNR Corporation Limited was completed. The post-merger new company, CRRC, was established, becoming a leading enterprise in the rolling stock industry in China and one of the top spots in the world's rolling stock manufacturing industry in the aspects of large-scale operations, core technology research and development, industrialization ability and production process in the international market. The Company actively implemented its business plan for the year and continuously promoted all tasks, resulting in the outstanding operating performance. Revenue amounted to RMB91,816 million, representing an increase of 6.26% over the corresponding period of last year, mainly attributable to the increase in the deliveries of key products. Profit attributable to owners of the Company increased by 6.85% year-on-year to RMB4,699 million. Basic earnings per share amounted to RMB17 cents. The Company proposes to distribute a cash dividend to all shareholders at RMB12 cents per share (tax inclusive) based on the total share capital as of 30 June 2015.

The Company's four main businesses include railway equipment, rapid transit vehicles and urban infrastructure, new businesses as well as modern services. During the period under review, revenue from railway equipment business, which accounted for more than half of the total revenue, declined by 1.72% to RMB47,360 million. Revenue from rapid transit vehicles and urban infrastructure business increased by 9.45% to RMB9,308 million, due to the delivery of vehicles for a number of transit lines for the period. Revenue from new businesses increased by 49.34% to RMB20,942 million, attributable to an increase in revenue from generators and automobile equipment. Revenue from modern services decreased by 9.47% to RMB14,207 million resulting from a decrease in revenue from logistics trading.

In terms of the core businesses by regions, revenue from overseas market surged 61.22% to RMB11,098 million, as a result of the Company's active expansion of the international business and the increase in product delivery during the period. Revenue from overseas market accounted for 12.09% of the total revenue, increasing from 7.97% of the same period last year. Revenue from mainland China market increased by 1.5% to RMB80,719 million, accounting for 87.91% of the total revenue.

The continual breakthroughs in technology and innovation have provided strong support and guided the rapid development of the Company. The Company has successfully completed the trial production of China's standard railway MUs with a speed of 350 km per hour, and the autonomous inter-city MUs using assessment experiment. Coal hopper wagon with a maximum load of 100t, representing the world's advanced level, is under trial manufacturing. New railroad rolling stock products, including aluminum alloy open wagon with the axle load of 30t, are under comprehensive development. SRS aerial vehicles with highway and railway dual-purpose successfully completed CE certification and acquired EU entry qualifications. Besides, National Engineering Laboratory on System Integration of High-speed Trains passed the national qualification accreditation. The Company also strengthened the construction of overseas R&D center and built "Sino-US Institute of Rail Transit" in cooperation with domestic and international famous colleges and universities, and continued to improve its technological innovation capabilities.

Furthermore, the Company has accelerated its international business layout and improved its international competitiveness. The project in Boston, the US was making progress, while the new rolling stock manufacturing base jointly built in Turkey has been put into operation. The construction of ASEAN manufacturing center the Company invested in Malaysia has been completed, which has become not only the model of economic cooperation between the PRC and Malaysia, but also the highlight of the economic and trade cooperation between China and ASEAN as well as the first demonstration base under "One Belt and One Road" strategy. Moreover, the Company acquired Specialist Machine Developments (SMD) Limited, a UK deep-sea equipment company, and has been actively expanding into marine engineering equipment field. In addition, the first batch of MUs exported to Macedonia, Europe were successfully rolled out, and the first batch of meter-gauge internal combustion MUs exported to Argentina were successfully delivered.

Through continuous development of its innovation capabilities and reform of production technology, the Company has globally leading manufacturing and maintenance service capabilities in MUs, urban rail vehicles, electric locomotives, diesel locomotives, railway cars and trucks. Such manufacturing capacity can not only meet the volatile demand in the domestic market, but also rapidly respond to the demand in global rolling stock market. The Company has met the international leading standards in respect of its production technology, production facilities as well as measuring and testing instruments. Meanwhile, the Company takes its advantages of core technology in rolling stock to actively expand into such national strategic emerging industries as new energy and new materials, such as new energy vehicles, wind power equipment.

Mr. Cui Dianguo, Chairman and Executive Director of CRRC, said," In the second half, adhering to the overall job requirements and business targets of 2015, the Company will build the operating model of 'strategic dominated, business led, management support and globally oriented' to increase its operation quality and profitability.

In order to achieve the targets, CRRC will explore the market with full efforts and will subdivide market, identify orientation and strive to create new pillar industry around the three directions, namely transportation equipment, energy equipment and new-type urbanization, in order to ensure steady growth in business. Meanwhile, we will constantly strengthen goal driven approaches and coordinate development planning. We will further explore new operation model and accelerate transformation and upgrading, while vigorously promoting technical innovation and leading the technological development direction. Furthermore, we will accelerate the business layout globally, develop the international market and continuously pay close attention to and keep ourselves informed of the implementation of strategic plans such as 'One Belt and One Road', 'interconnection with neighbouring countries' as well as the 'going global' initiative of high-speed railways, participate in international productivity cooperation and step up its effort on 'joint overseas expansion'. We will also focus on building China's brand, proactively promote overseas investment and M&As to develop into a multinational corporation and a global enterprise."

About CRRC Corporation Limited

CRRC Corporation Limited ("CRRC") is the an A+H share company established by the merger between China CNR Corporation Limited ("CNR")and CSR Corporation Limited ("CSR") on the principle of reciprocity, upon the consent by the State Council and the approval by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). On June 8, 2015, CRRC was listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange upon the approval by the China Securities Regulatory Commission (CSRC). Headquartered in Beijing, CRRC has 46 wholly-owned and majority-owned subsidiaries and more than 170,000 employees. CRRC, which inherited all the business and assets of CNR and CSR, is the world's largest supplier of rail transit equipment with the most complete product lines and leading technologies. CRRC will adhere to independent innovation, open innovation and collaborative innovation, improve the technology innovation system, and constantly upgrade technology innovation capacity. It has built the world leading rail transit equipment technology platform and manufacturing base. Its high-speed EMUs, high-power locomotives, railway wagons, urban rail vehicles and other typical products, which have fully reached world advanced level, can adapt to various complex geographical environments and meet diverse market needs. The high-speed EMU products manufactured by CRRC have become an important business card to show China's development achievements to the world. Its products have been exported to around 100 countries and regions in 6 continents. The export of products has also been changing to export of technologies, output of capital goods, and global business transformation.