On 28th 2019, China Railway Signal & Communication Co., Ltd. (CRSC, 03969.HK) released its 2018 annual report, newly-signed contract value reaching 68.29 billion yuan, up by 12.4% year-on-year; operating income approximating 39.84 billion yuan, up by 15.7%, and net profit approximating 3.80 billion yuan, up by 8.0%; and with basic earnings per share of 0.39 yuan, and a special dividend per share of 0.20 yuan.
In 2018, under the leadership of SASAC, CRSC followed a new concept of development, and promoted its development strategy of "one main business and diversified relevant businesses", achieving new successes, opening a new chapter and starting a new journey in corporate reform & development and Party building.
In 2018, CRSC maintained sound and rapid growth in newly-signed contract value. First, it maintained its leadership in system integration of railway signaling & communication, winning contracts for E&M system integration of 10 key High Speed Railways (HSRs) totaling over 2,300 km, with newly-signed contract value increasing by over 40%. Second, it expanded application of its CBTC system, winning bids for Beijing Subway Line 12, Hefei Metro Line 3, Hohhot Metro Line 2, Hangzhou-Haining Intercity Railway (ICR), etc., with a historic breakthrough. Third, it achieved expansion in its diversified relevant businesses, boosting the construction of Tianshui Tramway; signing the general contract for Taixing Smart City, and the first contract for HSR in Europe-Serbian section of Hungary-Serbia HSR, and promoting the progress of Jakarta-Bandung HSR in Indonesia.
CRSC also pursued independent innovation, achieving breakthroughs in key & core technologies, for global leadership in smart railway and HSR maintenance; and making breakthroughs in scientific & technical innovation for its new development. Firstly, its key & core technologies for smart railways passed tests & reviews. The train control system for automated HSRs (CTCS-3+ATO) began trial operation with passengers on Beijing-Shenyang HSR, providing scientific & technical support for the construction of smart Beijing-Shenyang and Beijing-Zhangjiakou HSRs. Second, its scientific & technical innovations in control technologies for rail transportation, such as CTCS-3 for HSRs, CTCS-2+ATO for ICRs, CBTC for metros, MATC for medium-to-low speed Maglevs, and CIPS for marshalling yards, achieved increasing brand effect, promoting China's development into a strong power in science & technology and transport. Thirdly, The train control system upgrade project for Beijing-Tianjin ICR was executed safely and efficiently, with domestic equipment completely replacing foreign equipment. Fourth, Hong Kong's HSR was connected to the mainland's HSR network, connecting Hong Kong with over 40 mainland cities. Fifth, Signal & Communication Branch of China Railway Society, and Signal & Communication & Standardization Committee were established, enhancing CRSC's industry influence.
In terms of industry development trend, China Railway Corporation will maintain its investment intensity and scale for railway construction. In 2019, 6,800 km new railways will start revenue service, including 3,200 km HSRs, and the HSR network will total over 32,000 km; and the delivery of train control systems will show rapid growth. The construction of ICRs will achieve rapid progress, such as Beijing-Tianjin-Hebei, Shandong, Yangtze River Delta, and Pearl River Delta ICRs. Signaling upgrade projects will start for additional HSRs in addition to that for Beijing-Tianjin ICR in 2018. In 2019, the investment scale for metro construction will also remain at a high level. The completed mileage of metros will increase further in 2019, with a peak for the opening of metros in the next two years, and higher demands for the delivery of control systems. The development of multiple modes of urban transit is booming, with the planning of light rails and modern trams strengthened, and more projects to be launched. There will be a brilliant future in smart city and overseas market.
