Corporate Value and Return Enhancement Action Plan in 2025

March 28 2025

To effectively implement the spirit of the China Securities Regulatory Commission's (CSRC) "Eight Provisions for Science

and Technology" and the State-owned Assets Supervision and Administration Commission's (SASAC) "Several Opinions on

Improving and Strengthening the Market Value Management of Listed Companies Controlled by Central Enterprises" and

to further reinforce its investor-oriented approach China Railway Signal & Communication Corporation Limited (hereinafter

referred to as the "Company" or "CRSC") has diligently implemented the " Corporate Value and Return Enhancement " special

action. This initiative focuses on elevating the listed company's development quality bolstering investor returns and striving to

generate greater value for all shareholders.I. IMPLEMENTATION AND EFFECTIVENESS OF THE 2024 ACTION PLAN

(I) Focusing on Core Business and Strengthening Advantages to Enhance the

Company's Value Creation Ability

In 2024 CRSC focused on enhancing core functions and improving core competitiveness. We comprehensively

deepened reforms proactively adjusted our business structure and leveraged our advantages in intelligent

control technology. Despite an approximate 12% decline in operating income we maintained strong profitability

and achieved our goal of steady growth in economic benefits as scheduled. Our net profit reached RMB4.069

billion a year-on-year increase of 1.35%. The structure of our operating income continued to optimize providing

important support for future increases in market valuation. Return on net assets was 7.34% a year-on-year

decrease of 0.2 percentage points. Per capita labor productivity reached RMB646100 and the operating cash

ratio was 16.04 representing a year-on-year increase.First we will maintain our leading edge by strengthening innovation and expanding our market presence.In 2024 based on our assessment of the current market environment and competitive landscape for rail transit

new construction renovation and reconstruction and operation and maintenance we implemented seven major

business measures. These included enhancing internal driving forces constructing a large-scale operation

pattern optimizing our business layout stabilizing and enhancing the new construction market vigorously

expanding within the existing market prudently responding to downward markets and actively laying out plans

for emerging markets. The total value of new external contracts signed throughout the year reached RMB50.069

billion. Contracts within the rail transit field reached RMB41.562 billion accounting for 83.01% of the total value

of new contracts signed. This includes: RMB25.637 billion in the railway sector representing a year-on-year

increase of 2.09%; RMB10.006 billion in the urban rail transit sector representing a year-on-year decrease of

24.09%; and RMB5.919 billion in overseas markets representing a year-on-year increase of 58.27%.

1Corporate Value and Return Enhancement Action Plan in 2025

Second we are accelerating the development of strategic emerging industries. Driven by specific scenarios

and leveraging the unique characteristics of the rail transit industry and our own technological strengths we

are implementing "AI+" technology applications. Our integrated air-space-ground Global Intelligent Perception

System has been successfully delivered and is operational in Dali Liaocheng Heze Jinan and Qingdao. We

are also leveraging AI to empower intelligent systems in railway marshalling yards. This has led to breakthroughs

in key technologies such as intelligent operation planning and automated control of global operations

propelling marshalling yard management towards new heights of intelligence and automation. Capitalizing

on our core "intelligent control" technology and focusing on low-altitude airspace management CRSC has

successfully developed an Intelligent Low-altitude Airspace Management and Control System. This system has

been selected as one of the National Development and Reform Commission's "Top 100 Projects." We have also

proposed a "one tower one city" communication technology solution and are exploring the development of an

unmanned aerial vehicle detection and countermeasure system. Additionally we have developed our air traffic

control surveillance protection system; implemented demonstration projects such as the Nujiang high mountain

agricultural transportation project Hefei industrial inspection project and Chongqing subway inspection project

and have won the bid of the Nan'an low-altitude control project. These achievements demonstrate that the "three

industries and one ecology" industrial structure of the low-altitude economy is beginning to take shape.Third we will strengthen the control of cost expenses and accounts receivable. This involves reinforcing

strict budget constraints rigorously controlling cost expenditures in accordance with the budget and

quantitatively analyzing general management expenses such as office meeting and business entertainment

expenses as well as non-production expenditures. We will continue to promote cost reduction and efficiency

enhancement increasing efforts to reduce costs and save expenditures across the entire industrial chain

and value chain. By leveraging digital and intelligent means we will strengthen cost benchmarking for all

employees elements and throughout the entire life cycle addressing management shortcomings. To further

enhance efficiency we have proposed 16 measures focused on reducing costs and expenses and addressing

long-term accounts receivable. These measures will ensure strict control over all cost expenditures.Fourth we enhanced lean financial management to improve capital efficiency. By leveraging the finance

company platform we achieved an 85% concentration of funds across all categories saving over RMB300

million in capital costs throughout the year. This accomplishment earned us the "Excellent Unit in Accounting

Statement Submission in 2023" award from the People's Bank of China. We also improved our treasury system

strengthening full-process fund management establishing a fund monitoring and risk early warning system and

adding a function for clearing "triangular debts." These efforts resulted in our treasury construction receiving

the prestigious "Compass Award" for benchmark enterprises. Furthermore we promoted the development of

a financial sharing center and the integration of "industry finance taxation capital and bills" to create an

intelligent financial system. Our financial sharing and industry-finance integration project was recognized as a

"Typical Case of Financial Supervision Digital Transformation of the Year" and received both the "2024 Digital

Economy Innovation Excellent Case" award from Xinhua News Agency and the "Dingxin Cup" National Digital

Transformation Application Excellent Case award.

2Corporate Value and Return Enhancement Action Plan in 2025

(II) Leveraging Innovation as the Primary Driver to Promote High-Level Self-Reliance

and Self-Improvement in Science and Technology CRSC continued to increase its

R&D investment reaching an intensity of 6.28% in 2024. By the end of 2024 CRSC

held 5248 authorized patents including 3091 invention patents.First enhance independent innovation capabilities. Leveraging its role as a national strategic force in

science and technology CRSC is dedicated to advancing major national scientific and technological projects

and key R&D initiatives. The "Integrated Rail Transit Dispatching and Control and Intermodal Transportation

Service Technology" project successfully completed key theoretical and technological research along with the

development of equipment prototypes adaptable to various transportation modes. The "High-Safety and High-

Precision Positioning Technology and Application Demonstration for Group Train Operation Control" project

achieved breakthroughs in algorithm research and developed equipment prototypes promoting the application

of Beidou technology in train operation control. CRSC spearheaded several major basic research projects

including completing the overall technical standards and specifications for the Western Railway operation

control system providing robust technical support for the project. the Company also released the CR450 on-

board equipment securing technical reserves for major national strategic projects. The deeply independent on-

board system obtained a third-party engineering safety assessment for passenger operation on the main line of

Beijing Metro Line 8 fulfilling the requirements for engineering application. Additionally the deeply independent

ATS (Automatic Train Supervision) subsystem secured its first commercial contract for the Dusi Mountain Rail

Transit Project Signaling System. In 2024 CRSC carried out 835 R&D projects.Secondly we are strengthening the construction of our innovation capability system. This involves

establishing a source of original technology for rail transit safety control systems which will support the

accelerated development of national rail transit safety control technology. We are also strengthening the

construction of innovation platforms. Leveraging CRSC we formed the Communication and Signaling Sub-

Technical Committee of the Standardization Technical Committee within the China Urban Rail Transit

Association. Additionally we joined the Joint Fund for Basic Research on Railways of the National Natural

Science Foundation of China to refine basic problems in industry applications. This collaboration resulted in

the formulation of the second batch of guidelines for the joint fund in 2024 and guidelines for 2025 further

enhancing our industry leadership and influence. In 2024 we will establish one new national enterprise

technology center. We are steadily increasing investment in scientific and technological innovation directing

more scientific research funds towards original and leading technology research. As a result R&D-oriented core

subsidiaries now dedicate 18.08% of their research investment to basic forward-looking original and leading

research.Third accelerate the application of scientific and technological innovation achievements. The heavy-haul

group operation control system completed test verification of all equipment system testing two stages of on-

board trials and external expert reviews. The intelligent freight yard system completed prototype development

field testing and optimization of its automatic control system intelligent monitoring system shunting locomotive

automatic driving system and digital integrated management and control platform obtaining the application

certificate for the Mohan Port. The Train Autonomous Control System (TACS) completed expert witness testing

on 30 trains. The Urban (C2+ATO) system completed passenger trial operation on the Shanghai Urban Railway

Airport Connecting Line. The railway intelligent integrated operation and maintenance system completed on-site

application in the Wuhan Bureau with pilot programs being promoted in the Shenyang and Chengdu Bureaus.Finally the urban rail fully automatic operation (FAO) system with flexible grouping functionality began operation

on Beijing Line 12.

3Corporate Value and Return Enhancement Action Plan in 2025

Fourth we will optimize the ecosystem for scientific and technological innovation. This includes

strengthening international exchanges in this area actively participating in the activities and standard-setting

processes of international organizations related to rail transit control organizing meetings for international

standard working groups participating in the General Assembly of the International Union of Railways and

becoming a full member of the Standards Association entity under the Institute of Electrical and Electronics

Engineers (IEEE). Notably an international standard spearheaded by CRSC was officially released by IEC/

TC46 and proposals for "Switch Machine" and "Security Data Configuration" were incorporated into the work

plan of the International Standard Working Group. We will continue optimizing the management system for

scientific research projects and further developing innovation studios. This involves adapting relevant scientific

research management processes and information system processes adjusting permissions accordingly and

establishing differentiated and customized assessment methods tailored to the specific characteristics of

each studio. We are committed to earnestly and comprehensively implementing the responsibilities rights

and obligations of studio leaders. Furthermore we will optimize the incentive mechanism by strengthening

the system for distributing income generated after the successful implementation of research outcomes. The

pilot reform program for empowering job-related technological achievements has received approval from the

State-owned Assets Supervision and Administration Commission (SASAC). We are establishing a specialized

milestone assessment and evaluation mechanism along with a special salary package incentive mechanism

for major scientific research projects. This includes having the heads of project-leading enterprises and project

leaders sign a "Letter of Responsibility" signifying their commitment to achieving project goals. In 2024 the

assessment and evaluation of scientific and technological innovation within subsidiaries will be integrated into

the performance evaluations of enterprise leaders.(III) Drive Value Realization and Enhance Investor Returns

In 2024 the Company closely monitored changes in the capital market and investor behavior analyzing and

evaluating implementation strategies and opportune timing. A series of measures were launched to bolster

investor confidence and maintain market value stability.Firstly the Company upholds a policy of distributing a high proportion of cash dividends. Committed to

providing stable returns for shareholders CRSC actively distributed dividends totaling RMB1.8 billion in 2023

with a dividend payout ratio of 51.77%. Over the past three years cumulative cash dividends have reached

RMB5.4 billion maintaining a high payout ratio of 50% and above. This demonstrates steadfast support for

shareholder returns and market value enhancement.Second we facilitated the Controlling Shareholder's completion of the shareholding increase plan. From

October 2023 to April 2024 China Railway Signal & Communication Group Co. Ltd. the Company's Controlling

Shareholder increased its holdings of CRSC A shares by approximately RMB50.15 million using its own funds.Third we strengthened the activation mechanism for market value maintenance measures. the Company's

Party Committee and Board of Directors actively monitor market conditions and in conjunction with capital

market performance timely implement measures such as extending the controlling shareholder's lock-up period

increasing the controlling shareholder's stake and repurchasing shares. These actions aim to bolster market

confidence guide the listed company's value toward a reasonable return to its intrinsic value and support the

Company's healthy development.

4Corporate Value and Return Enhancement Action Plan in 2025

CRSC has received an "A" rating for information disclosure on the Shanghai Stock Exchange's Science and

Technology Innovation Board (STAR Market) for two consecutive years (since the evaluation's inception). the

Company was also newly included in the CSI 300 Index and the CSI A500 Index and maintains its inclusion in

other important indexes such as the Hang Seng Composite Index the STAR 50 Index the CSI Central Enterprise

Dividend Index the CSI 300 ESG Benchmark Index and the CSI Central Enterprise ESG50 Index.(IV) Prioritizing Shareholder Needs and Strengthening Investor Communication

Adhering to the principle of communication-driven value creation CRSC prioritizes respect for its investors

and actively engages in communication and dialogue with them. the Company values investor feedback and

is committed to protecting the legitimate rights and interests of all investors particularly those of small and

medium-sized shareholders.First the Company has normalized the practice of holding result briefings. In 2024 three result briefings

were held with invitations extended to a wide range of stakeholders including investors (particularly retail

investors) industry analysts and media representatives. The Chairman President and Independent Directors

were all present at the annual result briefing. These briefings adopted a flexible format combining online and

offline elements and leveraged digital technology to facilitate communication and interaction with investors

through various channels such as live streaming video conferencing and teleconferencing. This approach

ensured the protection of the legitimate rights and interests of all investor groups.Second the Company has been actively engaged in investor exchange activities. Through platforms like the

Shanghai Stock Exchange (SSE) Roadshow Center as well as online and on-site meetings the Company has

maintained proactive communication with investors and valued their feedback. Investors have been invited to

visit CRSC to gain a deeper understanding of the Company's strategic plans business operations technological

capabilities products and corporate culture. These initiatives have showcased CRSC's technological prowess

and its commitment to sustainable value creation. Furthermore the Company has actively participated in

initiatives promoting capital market regulation and communication among listed companies. This includes

engagement in events organized by the China Securities Regulatory Commission (CSRC) stock exchanges

and the Listed Companies Association focusing on themes such as "hard technology" enterprises high-quality

companies and "5.15 Investor Protection Publicity Day." the Company has also cultivated strong relationships

with media outlets like CCTV News People's Daily China Securities Journal and Shanghai Securities News

contributing to the maintenance of a positive brand image within the capital market.Third strengthen the mechanism for soliciting and responding to investor opinions. We actively maintained

investor relations understood investor demands and promptly reported investor opinions and suggestions

to management and relevant business lines. We also studied and formulated relevant measures and actively

respond through compliant methods such as information disclosure. We have built sound communication

channels and promote communication between state-owned shareholders and small and medium shareholders

of listed companies. Major shareholders should actively respond to the reasonable demands of small and

medium shareholders and in accordance with the principles of equality and mutual benefit legally protect the

legitimate rights and interests of all shareholders.

5Corporate Value and Return Enhancement Action Plan in 2025

(V) Improve Corporate Governance and Effectively Enhance Governance Effectiveness

CRSC is committed to deeply integrating the strengthening of Party leadership with the improvement of

corporate governance. the Company continues to enhance its corporate governance mechanism ensuring

statutory power and responsibility transparency in power and responsibility coordinated operations and

effective checks and balances.Firstly CRSC aims to improve the performance of its Independent Directors. In line with the reform of the

Independent Director system the Company will revise the working system for Independent Non-Executive

Directors and establish a dedicated meeting mechanism for them. CRSC will further adjust the responsibilities of

the Audit and Risk Remuneration and Assessment and Nomination Committees to guarantee that Independent

Directors can effectively exercise their rights and fulfill their duties. Independent Directors are expected to

conscientiously perform their duties express their opinions fairly and objectively contribute suggestions for the

Company's development and safeguard the overall interests of the Company. They should focus on matters

closely related to the interests of small and medium shareholders including connected transactions external

guarantees the use of raised funds mergers and acquisitions major investment and financing activities senior

management remuneration and profit distribution. The "Report on the Performance of Independent Directors"

will be published alongside the annual report to fully disclose the annual work performance of Independent

Directors. This information will also be presented at the annual general meeting of shareholders.Secondly we are continuously strengthening the structure of our Board of Directors. The members of

our Board of Directors possess rich experience complementary expertise and a diverse structure. Our five

specialized committees conduct in-depth and meticulous preliminary research on matters within their respective

fields assisting the Board in improving decision-making efficiency and operational quality. In 2024 we

formulated the "Several Measures on Further Strengthening and Improving the Construction of CRSC's Board

of Directors" clarifying the requirements of "20 measures" and accelerating the development of a scientific

rational and efficient Board. We dynamically adjusted the list of matters authorized for decision-making by the

Board re-categorized investment levels based on recent investment project approvals appropriately adjusted

the decision-making authority for investment projects and improved the Board's ability to oversee major

investment projects. In 2024 the Company held eight Board of Directors meetings reviewing and approving 39

proposals and hearing three reports. Additionally we held eight specialized committee meetings reviewing and

approving 22 proposals and hearing six reports.

6Corporate Value and Return Enhancement Action Plan in 2025

Third we strengthened support for external directors in fulfilling their duties. We adhered to "zero

temperature dif ference" in information communicat ion by establ ishing a mult i -channel and regular

communication mechanism. The chairman senior management and business departments communicated with

external directors on major issues including corporate development strategy innovation and development and

risk prevention and control. Production and operation information was reported to external directors monthly

and they were actively invited to participate in important company-wide meetings such as the annual work

conference. This ensured that external directors were kept informed of the Company's business development in

a timely manner. We meticulously planned and organized research. In 2024 three collective research projects

and several individual research projects were conducted for external directors achieving full coverage of all

business segments and important subsidiaries. On-site research was conducted on the three major tasks

focusing on key concerns. After repeated communication and discussion the "Report and Suggestions on CRSC

Focusing on the 'Two Tracks' of Rail Transit and Low-altitude Economy" was compiled. This report provides

valuable suggestions for the Company's high-quality and sustainable development acting as a guiding force.Fourth we enhanced our environmental social and governance (ESG) working mechanisms. The Board

of Directors places great importance on ESG and has established a three-tier governance structure: decision-

making management and execution. This structure ensures the smooth development and implementation of

ESG initiatives. As the highest decision-making body for ESG the Board is responsible for overall planning and

coordination integrating ESG principles into daily operations from the top down. Management formulates ESG

policies and strategies reviews material ESG issues and promotes implementation. Headquarters departments

and subsidiaries as the execution level carry out comprehensive ESG practices within their respective areas.In 2024 we accelerated the phasing out of high-energy-consuming and high-polluting equipment promoted

the demonstration and application of energy-saving and low-carbon technologies processes and products

and advanced green manufacturing and construction. These efforts led to improvements in energy conservation

and resource recycling. CRSC's total energy consumption in 2024 was 18307 tons of standard coal with an

intensity of 0.0056 tons per ten thousand yuan of revenue. Carbon dioxide emissions reached 57415 tons with

an intensity of 0.0181 tons of CO2 equivalent per ten thousand yuan of revenue marking a further decrease

from 0.0183 tons in 2023.

7Corporate Value and Return Enhancement Action Plan in 2025

Fifth strengthen compliance management. Adhering to the compliance concept of "compliance starts at the

top all employees take the initiative to comply and compliance creates value" CRSC will focus on building a

value system in which senior management leads compliance and all employees practice it. We will continue to

strengthen the coordinated operation of legal compliance risk internal control and institutional management

improving the large-scale supervision system to provide a solid legal guarantee for the Company's reform

and development. CRSC will improve the "one-stop" review mechanism for legal compliance. On the basis of

ensuring 100% review of economic contracts rules and regulations and major decisions we will promote the

"one-stop" review mechanism for legal compliance internal control and risk. CRSC was selected as one of 26

pilot units for the construction of world-class rule of law enterprises. The Chief Compliance Officer is deeply

involved in the review and approval of major contracts and important decisions and takes the lead in organizing

the development of a compliance management system conducting effectiveness evaluations of the compliance

system and other related work. In 2024 the Company carried out enterprise self-evaluations compliance

evaluations of subordinate enterprises on-site inspections and other measures to continuously enhance the

effectiveness of the compliance management system.(VI) Strengthening the Responsibilities of Key Personnel

CRSC maintains close communication with key personnel including the Controller Controlling Shareholder

shareholders holding more than 5% of shares and Senior Management. We actively track the fulfillment of

commitments by these stakeholders and continuously work to strengthen their awareness of their responsibilities

and contractual obligations. In accordance with the requirements of China's new National Nine Articles the

Company Law and the reformed independent director system we actively participate in relevant training

programs organized by stock exchanges listed companies associations and CRSC. These programs focus on

regulatory policies and regulations related to the "A+H" securities market. Additionally we conduct specialized

training for directors on their responsibilities concerning information disclosure insider information management

and compliance in transactions. By strengthening the "key minority's" understanding of capital market laws

regulations and professional knowledge we aim to ensure diligent performance of duties in accordance with all

applicable laws regulations and the Company's Articles of Association. This commitment to robust corporate

governance fosters the high-quality development of CRSC. Senior Management actively participates in training

related to corporate governance laws and regulations for a minimum of 15 hours per person annually.

8Corporate Value and Return Enhancement Action Plan in 2025

II. ENHANCEMENT MEASURES FOR THE 2025 ANNUAL ACTION PLAN

In 2025 the Company will actively implement the "Eight Provisions for Science and Technology" issued by the China

Securities Regulatory Commission (CSRC). We will strengthen our investor-oriented approach further promoting

the continuous improvement of listed company quality. We will deeply implement the " Corporate Value and Return

Enhancement " initiative. Based on a comprehensive assessment of the 2024 initiative's implementation and

effectiveness we propose the following optimization goals and measures.(I) Adhering to the Principle of Seeking Progress While Maintaining Stability. We will completely accurately

and comprehensively implement the new development concept focusing on high-quality development. We

will center our efforts on enhancing core functions and improving core competitiveness emphasizing the

enhancement of "five values." We will earnestly implement the objectives of "one increase one stabilization and

four enhancements." We will continue to promote the Company's growth in strength quality and scale better

leveraging the roles of scientific and technological innovation industrial control and safety support. We will

complete the "14th Five-Year Plan" goals and tasks with high quality laying a solid foundation for a successful

start to the "15th Five-Year Plan.(II) Vigorously Develop Strategic Emerging Industries and Cultivate New-Quality Productivity. In low-altitude

airspace management and control CRSC will develop an intelligent management and control system conduct

research on low-altitude communication private networks and deepen research on multi-source fusion

perception and countermeasure technology. We will actively apply for national-level innovation platforms and

scientific research projects at national provincial and ministerial levels. CRSC will accelerate the construction

of a standardized low-altitude platform striving to become a source of original technology for the low-altitude

economy. We will accelerate research on technologies such as autonomous and controllable flight control

systems as well as the industrial layout of new aircraft. Adhering to market-oriented and order-driven principles

we will strengthen cooperation between central and local governments. CRSC will strive to accelerate the

acquisition of manned and cargo operation qualifications and air route layout. We will participate in the

construction of demonstration zones such as Xiong'an Qingdao and Zhoushan expanding "low-altitude + X"

service operations.

9Corporate Value and Return Enhancement Action Plan in 2025

(III) Increase Market Development and Maintain Industry Leadership. According to internal judgement projects

that over 10000 kilometers of domestic high-speed railways will undergo major renovations. Concurrently new

conventional railway construction is increasing with a focus on electrification standard upgrades and capacity

expansions of existing lines. In urban rail transit national operating mileage is expected to exceed 13000

kilometers by 2025 with Shanghai and Beijing each exceeding 1000 kilometers. High investment levels are

anticipated throughout the 14th Five-Year Plan period. CRSC will capitalize on these opportunities by enhancing

the safety and intelligence of train control systems promoting a comprehensive "system product construction

operation and maintenance" model and leveraging technology to improve product lifecycle services. We will

align with major regional strategies such as the coordinated development of Beijing Tianjin and Hebei the

Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta. CRSC will target opportunities

in metropolitan areas like Chengdu Chongqing and Guangzhou to drive economic growth. We will implement

the Belt and Road Initiative and capitalize on frameworks like RCEP. The completion of projects like the Jakarta-

Bandung High-speed Railway China-Laos Railway and China-Thailand Railway presents opportunities to

establish Southeast Asia as a showcase for Chinese high-speed rail. The Hungary-Serbia Railway offers a

chance to create a flagship ETCS-compliant project in Europe. CRSC is committed to actively expanding into

overseas markets.(IV) Strengthen Innovation-Driven Leadership and Enhance Technological Power. We will promote the development

of original technologies facilitate the transformation of scientific and technological achievements cultivate a

high-level innovation ecosystem and foster a high-quality talent pool. We will also drive the digital and intelligent

upgrading of rail transit equipment focusing on the development of key platforms systems and equipment.We support the digital transformation of railways ensuring the development of future rail transit signaling

systems and meeting the demands of multi-standard operations. This effort will support the implementation of

national strategic projects. Digital urban rail transit solutions will be released creating a subway control system

based on trackside digital intelligence to guarantee safe operation in complex and challenging environments.We support the upgrade of safety equipment for heavy-haul railway transportation expand the application

of dedicated lines for local railways and promote the implementation of cloud-based two-layer train control

systems. In 2025 CRSC will further increase investment in research and development planning to undertake no

fewer than 800 R&D projects and striving to achieve an R&D investment intensity exceeding 5.5%.(V) Strengthening Market Value Management to Enhance Investor Returns. Focusing on improving the development

quality of the listed company CRSC will make every effort to enhance its investment value in accordance with

laws and regulations. This includes building a long-term mechanism for market value management formulating

relevant systems and implementing plans to maintain stable stock prices. These actions will promote the

Company's long-term stable performance in the capital market. the Company's Party Committee and Board

of Directors are closely monitoring market perceptions of the Company's value. Should market performance

deviate significantly from this value they will prudently analyze the situation proactively take appropriate

measures to boost the Company's investment value and effectively safeguard the interests of investors.

10Corporate Value and Return Enhancement Action Plan in 2025

(VI) Adhering to a High Cash Dividend Policy. the Company is committed to providing stable returns for its

shareholders. As reviewed and approved at the 27th meeting of the Fourth Board of Directors the Company

plans to distribute a cash dividend of RMB1.70 (including tax) per 10 shares to all shareholders in 2024. This is

based on the total share capital registered on the equity distribution registration date. As of December 31 2024

the Company's total share capital was 10589819000 shares. Based on this the total proposed cash dividend is

RMB1.80 billion (including tax) representing 51.51% of the Company's net profit attributable to shareholders of

the listed company in 2024.(VII) Establishing a Multi-Tiered Investor Communication and Interaction Mechanism. Adhering to the principle of

"communication creates value" CRSC will proactively maintain investor relations organize investor exchange

activities listen attentively to investor voices value market feedback guide expectations appropriately and

communicate corporate value. Through these communication and interaction efforts CRSC aims to enhance

understanding and foster confidence among stakeholders ensuring investors feel connected informed and

assured. CRSC will hold regular result briefings with three planned and attended by the Company's directors

and senior management. Disclosures will include non-GAAP performance indicators such as net cash flow from

operating activities after deducting group deposits to provide investors with a clear and concise understanding

of the Company's financial performance. CRSC will leverage various channels including compliance disclosure

platforms investor briefings roadshows reverse roadshows (company open days) analyst meetings and on-

site visits to engage actively with investors. the Company will utilize digital technologies such as live streaming

video conferencing and online meetings to facilitate these interactions respond to investor inquiries promptly

and safeguard the legitimate rights and interests of all investors. Investors can schedule appointments by phone

or email at ir@crsc.cn.(VIII) Adhering to Standardized Operations and Enhancing Governance Effectiveness. We fully implement the "Two

Unyielding Principles" integrating strengthened Party leadership with improved corporate governance. We

clarify the scope of rights and responsibilities of each governance subject with a clear list further improving the

corporate governance system to ensure statutory power and responsibility transparent operations coordinated

functions and effective checks and balances. We strengthen the fundamental role of the Articles of Association

in corporate governance clarifying the boundaries of state-owned shareholders' management of listed

companies and effectively safeguarding the independence of listed companies. We give full play to the role of

specialized committees encouraging them to actively advise the Board of Directors. We strengthen support for

Independent Directors in performing their duties increase the Board of Directors' efforts in reviewing investment

projects and establish a mechanism for external directors (including Independent Directors) to participate

in the research and demonstration of major and complex projects in advance. We continuously improve ESG

professional governance capabilities and risk management capabilities focusing on governance strategy

risk management indicators and goals. We continue to strengthen climate risk management and disclosure

starting with these four aspects. We are accelerating the elimination of high-energy-consuming and high-

polluting process equipment while accelerating the demonstration and application of new energy-saving and

low-carbon technologies processes and products. We practice green manufacturing and green construction

vigorously promoting the carbon peaking plan. We actively utilize the "One-Click" reminder service for online

voting at general meetings of shareholders to facilitate the participation of small and medium investors in

corporate governance.

11Corporate Value and Return Enhancement Action Plan in 2025

(IX) Strengthening the Responsibilities of Key Stakeholders. CRSC will maintain close communication with key

stakeholders including the Controller Controlling Shareholder shareholders holding more than 5% of shares

and Senior Management. We will track the fulfillment of commitments made by these stakeholders and

continuously work to strengthen their awareness of their responsibilities and their commitment to fulfilling their

obligations. CRSC will organize training for Senior Management on topics related to listed company governance

laws and regulations ensuring each member receives no less than 15 hours of training annually. We will

also encourage active participation in meetings forums and other events organized by regulatory agencies.These efforts aim to enhance the "Key Minority's" understanding of capital market regulations and professional

knowledge improve their self-discipline and ultimately promote the high-quality development of CRSC.The Company will continue to assess the specific measures outlined in the "Corporate Value and Return

Enhancement" action plan and will fulfill its information disclosure obligations in a timely manner. the Company's

plans work plans and related forecasts included in this report are forward-looking statements and not

established facts. They do not constitute a commitment to investors. Investors are advised to consider the

relevant risks.

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