Daqin Railway announces share buyback, dividend, and land asset transfer

Daqin Railway's board approved a RMB0.08 (tax-inclusive) cash dividend per share for the first half of 2025, totaling RMB1.61 bn, representing 39.17% of the parent company’s net profit. The board also approved a share buyback program of RMB1 bn to RMB1.5 bn, at a maximum price of RMB8.19 per share, to reduce registered capital. This buyback represents 0.61% to 0.91% of the total share capital.

Additionally, Daqin Railway will re-sign an agreement with its controlling shareholder, China Railway Taiyuan Group, for the transfer of state-authorized operating land use rights. This transaction, valued at RMB2,569,993.98 (tax-inclusive), involves 788 plots of land covering 86.0394 million square meters. The asset transfer is expected to enhance asset integrity and operational independence.

The company's semi-annual report notes a slight increase in operating revenue to RMB37.29 bn, up 1.86% year-on-year, while net profit attributable to shareholders decreased by 29.82% to RMB4.11 bn, primarily due to lower coal demand, increased competition, and costs associated with modern logistics reforms. The remaining proceeds from the convertible bond, approximately RMB5.053 bn, will be permanently allocated to working capital, marking the conclusion of the convertible bond investment project. The board also approved the cancellation of the Supervisory Board, with its functions transferred to the Board's Audit Committee. These proposals will be submitted for shareholder approval.