CRSC to boost related-party deals with controlling shareholder

China Railway Signal & Communication Corporation (CRSC) announced a resolution to approve estimated routine connected transactions with China Railway Signal & Communication Group (CRSC Group) and its subsidiaries for 2026-2028. The total estimated transaction value exceeds CNY 30 million, or 1% of the company's latest audited total assets or market capitalization, necessitating shareholder approval. CRSC Group, CRSC's controlling shareholder with a 62.78% stake as of October 28, 2025, will see increased transaction volumes, particularly for services provided by CRSC, with an estimated increase in engineering work for 2027 and 2028.

For 2026, transactions include CNY 7,000.00 million for product/material purchases, CNY 200.00 million for sales, CNY 2,000.00 million for services received, and CNY 20,000.00 million for services provided to CRSC Group. The estimated transaction volume for services provided will increase to CNY 40,000.00 million in 2027 and 2028. Additionally, financial services agreements with CRSC Group Finance Co. Ltd., a CRSC subsidiary, are being renewed for 2026-2028, with increased limits for daily average foreign and domestic currency deposit balances to CNY 7 billion (from CNY 9.6 billion previously) and daily average foreign and domestic currency credit balances to CNY 500 million (from CNY 200 million), and other financial service fees increasing to CNY 3 million annually (from CNY 1.5 million).

The estimated transactions are routine business operations, priced at market rates, and are not expected to harm CRSC or its minority shareholders. CRSC Group reported total assets of CNY 12,597,868 million and net assets of CNY 6,312,196 million as of June 30, 2025, with a net profit of CNY 433,188 million for 2024, demonstrating its strong financial standing and ability to perform under the agreements.