ZHUZHOU CRRC TIMES ELECTRIC ＣＯ.LTD.CORPORATE VALUE AND RETURN ENHANCEMENT

ACTION PLAN 2025INTRODUCTION

To uphold the development concept of “investors first” as a listed company and safeguard the interests of all shareholders

of Zhuzhou CRRC Times Electric Co. Ltd. (the “Company” or “Times Electric”) the Company based on its confidence in the

future prospects and value of the Company published the Corporate Value and Return Enhancement Action Plan 2024 of

Zhuzhou CRRC Times Electric Co. Ltd. (the “Action Plan”) on 29 March 2024 and published the Interim Evaluation Report

on the Corporate Value and Return Enhancement Action Plan 2024 on 24 August 2024. In accordance with the Action Plan

the Company actively carried out and completed various tasks in 2024 achieving sound results in high-quality operation

technological innovation and improving shareholder returns.In 2025 the Company formulated the Corporate Value and Return Enhancement Action Plan 2025 with a focus on“improving business quality strengthening technological innovation enhancing investor returns and fostering newquality productive forces” and based on its development strategy and business conditions.Set out below are the performance of the Corporate Value and Return Enhancement Action Plan 2024 and main

measures of the Corporate Value and Return Enhancement Action Plan 2025:

1Persist in Professional Expansion 2 Persist in Innovation-driven

and Focus on the Main Business for Upgrades to Better Support

In-depth Cultivation and High-level of Self-reliance and

Refinement of Emerging Business Self-improvement

3Persist in Strengthening 4 Persist in Promoting Refinement to

Management of Proceeds to Boost Enhance Management and Deepen

the Leap and Advancement of Our Digital Transformation and Upgrade

Principal Business

5Persist in Deepening Quality 6 Persist in Improving the

Improvement and Efficiency Construction of the Board of

Enhancement to Solidify the Directors to Enhance Modern

Company’s Sustained Profitability Corporate Governance

7Persist in Strengthening Investor 8 Persist in Enhancing Shareholder

Relations Management and Returns and Boosting Confidence in

Establishing a Multi-level and the Secondary Market

Mutually Beneficial Interactive

Mechanism

9MiscellaneousPersist in Professional Expansion and

1 Focus on the Main Business for In-depth

Cultivation and Refinement of Emerging Business

In 2024 the Company centered on the provision of enhanced services to support the construction of a modernized industrial

ecosystem. By leveraging our independent core technologies in high-speed rail we consolidated our resources to drive the

development of strategic emerging industries expedited the transformation and upgrading of our business while venturing

into new domains securing victories in untapped markets and cultivating new sources of growth. These efforts bolstered our

core capabilities and facilitated high-quality development.In 2024 the Company recorded

Revenue of Net profit attributable to Net cash flows from

shareholders of the Company of operating activities of

RMB24.909 billion RMB3.703 billion RMB3.361 billion

+13.42%+21.77%+21.45%

YoY YoY YoY

EBITDA of Basic earnings per share of Weighted average return

on net assets of

RMB5.591 billion RMB2.62 9.31%

+28.42%+21.86%+0.83

percentage points

YoY YoY YoYRail transit equipment business Emerging equipment business

RMB14.636 billion RMB10.115 billion

+13.37%+13.71%

YoY YoY

Other businesses

RMB0.158 billion +0.71%

YoY

Rail Transit Equipment

Business

RMB10.990 billion +7.41%

Rail transit electric equipment business YoY

RMB1.891 billion +12.22%

Rail engineering machinery business YoY

RMB1.105 billion +67.50%

Communication signal system YoY

RMB0.650 billion +95.02%

Other rail transit equipment business YoYEmerging Equipment

Business

RMB4.110 billion +11.02%

Basic devices YoY

RMB2.569 billion +23.96%

New energy vehicle electric drive system YoY

RMB2.036 billion +5.70%

New energy power generation YoY

RMB0.865 billion +18.04%

Marine equipment YoY

RMB0.535 billion +15.93%

Industrial converter YoY(1) Continuously maintain the leading advantage in the rail transit industry and

consolidate our market position while expanding our market share

* Secured orders for new energy locomotive traction systems for the first time

* Completed the fully-furnished EMU prototype for CR450

* Secured locomotive autonomous driving orders of newly RMB100 million

* Maintained a domestic market share of above 50% for urban rail traction system leading the

industry for 13 consecutive years

* Achieved sound progress in maintenance and overseas businesses and substantially increased its

maintenance revenue

* Completed the first installation of electrical system for electric transmission continuous tamping

vehicle

* Secured the first ground-breaking order for large-size high-speed rail laying machine

* Communication signal business achieved revenue hitting a record high(2) Seize development opportunities in emerging equipment industry to rapidly

strengthen and improve our business

* Basic devices segment

Our IGBT module business established a clear leadership with the largest share in terms of delivery volume in domestic rail

transit and power grid markets

Won bids for seven transmission lines in the power grid market and secured a bulk order for an overseas flexible DC

transmission project for the first time

Our power modules for new energy passenger vehicles achieved installation of 2.256 million sets ranking second with a

market share of 13.7% (according to NE Times)

Our semiconductor project phase III at Yixing production line went into operation successfully

The market share of the sensor business in the rail transit field continued to occupy a leading position and we secured

power grid orders for the first time

* New energy vehicle electric drive segment

Annual installation of 251000 sets according to NE Times and penetrated into five new automaker customers

Successfully developed the fourth-generation electric drive platform integrated bearing electric drive assembly reducing system loss

by more than 10%

* New energy power generation segment

Photovoltaic inverter business won the bid of more than 20GW in China ranking at the forefront of the industry and its annual

shipment exceeded 10GW. The number of new contracts for wind hydrogen storage products has increased steadily and the market

share of IGBT hydrogen production power supply occupied a leading position domestically

* Marine equipment segment

Both revenue and the number of orders for

marine equipment hit record highs

Launch of electric ROVs to market

* Industrial converter segment

Delivered newly 300 sets of mining truck electric drive

system which are applied in 10 countries around the world

Secured central air-conditioning converter orders for data

centers of China Mobile and China Telecom

Achieved export of metallurgical rolling mill products for the

first time(3) Strengthen industrial layout and build a solid

foundation for high-quality development

We continued to strengthen the industrialization capability in industries such as semiconductor new energy passenger vehicle electric

drive system and rail engineering machinery. Through the allocation of high-quality resources we enhanced the specialization level and

scale of these businesses. The low and medium voltage power device industrialisation (Yixing) first-phase construction project has been

completed including the factory and related facilities and has commenced production. The low and medium voltage power device

industrialisation (Zhuzhou) construction project has completed its design phase entered the construction stage and completed the pile

foundation work. The production base project for new energy passenger vehicle electric drive systems and key components has

completed all engineering construction and initiated the relocation of existing production lines. The construction project for the

Changchun automotive motor base has completed the procurement of line 2 of flat wire motor stator rotor and successfully completed

production line commissioning and synchronization.Phase I Construction Project of Industrialization of Low and Medium New energy passenger vehicle

Voltage Power Devices (Yixing) electric drive system and key

components manufacturing

base project

Equity investments continued to focus on strategic emerging industries such as semiconductors new energy passenger vehicle electrical

systems and sensors. We implemented mixed-ownership reforms and industrial restructuring to deepen reforms and facilitate rapid

development of these businesses.In 2025 the Company will unswervingly consolidate and enhance its rail transit business and emerging equipment business. For the rail

transit segment a cornerstone for our high-quality development we will deeply cultivate our advantageous markets while exploring

new businesses to enhance our leading core strength. The cornerstone for our high-quality development will be reinforced. In the basic

components segment a new pillar for our high-quality development the semiconductor business should steadily increase its market

share by unlocking production capacity on a high quality basis and tapping into new growth directions; and the sensor business should

maintain stable market share improve quality and ensure delivery riding on the momentum to build up our chip operations and enhance

business quality. For the new energy vehicle electric drive system segment a power source for our high-quality development we should

rapidly hone our core capabilities and continuously penetrate into key customer groups to enhance our brand influence. For the new

energy power generation segment a growth driver to our high-quality development we should adhere to an all-element benchmarking

approach to accelerate overseas expansion and increase market share. For the marine equipment segment a new pivot for our

high-quality development we should seize the opportunities from electrification to step up strategic investment and synergize our

cross-regional development efforts. For the industrial converter segment a new engine for our high-quality development we should

deepen and improve our presence in niche areas expand application scenarios and extend our business boundaries.Persist in Innovation-driven Upgrades to

2 Better Support High-level of Self-reliance and Self-improvement

We adhere to self-reliance and strive for self-improvement on technologies maintain significant R&D

investment strengthen research on key core technologies seize the commanding heights of

technological innovation and strive to develop Times Electric into an innovative enterprise with

global competitiveness.

(1) Persist in making substantial R&D investment to make

breakthrough in key core technologies

In 2024 the Company continued to maintain significant R&D investment and further

increased its efforts in fundamental research with a focus on tackling fundamental urgent

cutting-edge and disruptive technologies.R&D expenditure in 2024 of

In 2024 the Company's R&D expenditure reached RMB2.842 billion up 29.96%

year-on-year. RMB2.842 billion

Proportion of R&D expenditure to the Company's revenue was 11.41% up 1.45 percentage

points year-on-year.For rail transit the Company maintained its leading position in the rail transit industry

occupied the technological high ground and comprehensively enhanced the intelligence

level of rail transit products. Proportion of R&D expenditure

to the Company’s revenue of

11.41%

In emerging industries we benchmarked against industry-leading enterprises and closely

aligned ourselves with customer needs with a focus on industrial product demands for

power semiconductor devices new energy vehicle electric drive systems sensor devices

medium-voltage transmission systems and wind/photovoltaic converters. By addressing

weaknesses and capitalizing on strengths the Company continuously commercialized R&D

innovation outcomes thereby facilitating its rapid business growth.Our subsidiary Zhuzhou CRRC Times Semiconductor Co. Ltd. received the second prize of

the 2023 National Technology Invention Award.Our subsidiaries Chongqing CRRC Times Electric Technology Co. Ltd. and Specialist MachineDevelopments (Shanghai) Co. Ltd. were accredited as National Specialised and New “Little Second prize of the 2023Giant” Enterprise. National Technology

Invention Award(2) Strengthen intellectual property protection to build In 2024 new patents

a solid technology barrier grant to the Company:

278

In 2024 we rigorously initiated scientific research projects emphasizing the four key elements of

“demand planning benchmarking and cost” in project initiation analysis. We strengthened the

linkage with production lines and market coordinated the planning of research projects in various

technical fields focused on key areas and promoted a more focused approach to scientific research

projects.We emphasized the protection of intellectual property rights and strengthened the application

and management of intellectual property rights overseas.

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patents in Europe the

United States and Japan

In 2024 with a focus on its core technologies and main products the Company adhered to and actively

planned for intellectual property efforts to enhance its influence in the industry. In 2024 the Company

was granted 278 new patents including 6 patents in Europe the United States and Japan bringing the

total number of valid patents granted to the Company to 3762 of which over 60% are invention

patents. We took the lead or participated in the drafting of international national industry and group

standards in transportation and energy sectors among which 38 standards were released leading to

our consolidated industry position.Total number of valid patents

granted to the Company:

3762(3) Consolidate global resources to build an open

innovation platform

In China we engaged in exchanges and explored collaboration with universities and renowned enterprises on cutting-edge

technologies such as artificial intelligence and cybersecurity. Internationally we are advancing our global innovation

partners program to continuously deepen existing collaborations and strengthen two-way interaction with top

international universities and research institutions to improve scientific research innovation and the application of research

outcomes.In 2025 the Company will continue to regard the development of new quality productive forces as the core driver to our

high-quality development. By sustaining a high level of R&D investment the Company will adhere to the construction of

its independent innovation capabilities and enhance the supply of high-quality technologies. We will actively undertake

major national science and technology projects focus on enhancing original innovation capabilities and strive to make

breakthroughs and master more fundamental and underlying technologies. We will accelerate the construction of pilot

verification platform and establish a high-level innovation ecosystem to promote efficient commercialization oftechnological achievements and lead and fuel industry development. We will focus on the requirement of “outstandingbrand” to deepen our brand leadership activities. Also we will focus on strengthening fundamentals and addressing

weaknesses in our industry chain to actively deploy strategic investments. We will give better play to the role of

technological innovation in industrial dominance and security guarantee.The Company will deepen collaborative research project initiation and build a continuously leading technological

innovation system. We will strengthen management on cross-department collaborative project initiation establish a project

information synchronization mechanism and strictly implement the “three-step” workflow. We will fully evaluate

necessity of projects on a market demand-driven basis; plot out key milestones in a target-oriented approach; and

comprehensively optimize the resource allocation mechanism in the resource-backed principle. Coordinated efforts will be

taken in preparing our blueprint for national (provincial) science and technology awards key project applications patents

and standards as well as improving our intellectual property protection and risk prevention mechanisms. The Company will

optimize its global R&D resources and footprints leveraging the accurate positioning of its UK R&D center to deliver

high-quality R&D outcomes complementarily. We will continue to strengthen exchanges and cooperation with research

institutes at home and abroad and remain open-minded to take in global high-quality resources.With a focus on fundamental technology research the Company aspires to create a continuously leading cutting-edge

product platform. To this end we will consolidate our fundamentals to achieve independency and autonomy of core

technologies; accelerate technological upgrades to build industry-leading product platforms; and strengthen our testing

capabilities to achieve safe and manageable product verification. We will earnestly promote effective use of innovative

testing platforms deeply explore reliability and lifespan testing efficiency and optimize the allocation rules on testing

resources to improve testing efficiency and safety assurance.Persist in Strengthening Management of

3 Proceeds to Boost the Leap and Advancement of Our Principal Business

In September 2021 Times Electric was listed on the Science and Technology Innovation Board of the Shanghai Stock

Exchange with total proceeds of RMB7.555 billion. Since its listing the Company has used the proceeds to finance projects

such as the “application project of rail transit traction and network technology and system” the“application project on key technologies and system R&D of smart railway bureau and smart urbanrail transit” the “advanced technology R&D application project of new industry” the “R&D andmanufacturing platform construction project of new-type rail engineering machinery” the

“innovative experimental platform construction project” and replenishment of working capital.In 2024 the Company continued to strengthen management of projects financed by the proceeds and the cumulative IPO

proceeds utilized accounted for 81.51% of the total amount. During the implementation process of these projects we

strictly followed the regulations governing management of proceeds to cautiously utilize the proceeds ensuring that the

projects financed by the proceeds progressed smoothly according to relevant plan. Both the innovative experimental

platform construction project and the manufacturing platform construction project of new-type rail engineering machinery

have completed the entire conduction work and have been put in use. Thus we promoted the Company’s principal business

development through the successful implementation of these projects and achieved expected returns from these projects

which enhanced our overall profitability.In 2025 the Company will continue to strengthen management of projects financed by the proceeds and the cumulative

IPO proceeds utilized are expected to account for approximately 92% of the total amount. For the innovative

experimental platform construction project and the manufacturing platform construction project of new-type rail

engineering machinery we will complete the remaining project audit and final accounting acceptance inspection of

equipment application for title certificates and filing procedures. For the application project of rail transit traction and

network technology and system the application project on key technologies and system R&D of smart railway bureau and

smart urban rail transit and the advanced technology R&D application project of new industry we will effectively proceed

with the project management work. To meet “high goals high standards and high requirements” we will timely

identify and solve difficulties and pain points of these projects ensure project execution as scheduled and achieve

continuous innovation and progress in technologies and products to provide a strong support to smooth progress of our rail

transit new energy vehicles and other projects financed by the proceeds.Persist in Promoting Refinement to

4 Enhance Management and Deepen Digital Transformation and Upgrade

Addressing the pain points of Times Electric’s operations in 2024 the Company upheld the business philosophy of

“high-quality operation and efficient management”. We continued to implement “Times Electricdigitalization” and establish a digital transformation path of “identifying a core focus leveraging a set ofdata and integrating a comprehensive system” to continuously stimulate the corporate development

momentum. Firstly the Company focused on “identifying a core focus” targeting the enhancement of operational

capabilities with transformation. Guided by the Company’s strategy and closely aligned with the core focus of

“decomposition and implementation of key business indicators” based on quality cost delivery and other

dimensions the indicators are divided and disintegrated in layers and levels to achieve transparent and effective

management of the entire operational process. Secondly the Company leveraged “a set of data” to foster a shift towards

a data-driven management approach. Utilizing existing information platforms and harnessing the power of big data

technology the Company bridged “information gaps” and established a unified data infrastructure to support theefficient implementation of digital operations across various business domains. Thirdly the Company integrated “asystem” ensuring integration of transformation and digitalization. With the goal of “enhancing both efficiency andeconomics” the Company optimized its management system and consolidated resources to achieve harmonious

development of the “Times Electric digitalization” and improvements in all areas of management.In 2025 we will continue to deepen the digital intelligence transformation and improve business management efficiency.Digital transformation as the inevitable path to high-quality development is a long-term and undisputed task for which we

should focus on improving core business issues to make concrete and deep footprints of digitalization. Efforts will be aligned

with the goals of digital transformation. We will accurately capture the core elements of digital transformation: solve

business pain points enhance management efficiency improve business indicators and accumulate organizational assets.The existing achievements of digitization will be utilized properly. Centering on our core businesses and the enabling and

support processes we should adhere to the use evaluation and improvement of the established business rules and the

information systems in place while leveraging iterative plan-do-check-act (PDCA) optimizations to empower business

improvement. Main battlefields of digitalization will be identified. We will streamline the whole core value processes

including the issue-to-resolution (ITR) process enhance business standardization and digitalization levels build our business

upon processes and run data upon information technology. We will continuously explore further applications of digital

intelligence employing big data and artificial intelligence to empower business analysis and improvement and support our

business decision-making.Persist in Deepening Quality Improvement and

5 Efficiency Enhancement to Solidify the Company’s Sustained ProfitabilityTimes Electric has always adhered to the business philosophy of “contributing to the country through industrialdevelopment” and continuously enhanced its profitability. In recent years the Company has pursued high-quality

development driven by digitalization deepening its refined management practices. It has introduced its digital operation

“cockpit” which dynamically monitors key indicators and conducts quantitative and precise analysis throughout the entire value

chain. The Company explores value enhancement opportunities from multiple dimensions including income source expansion

cost reduction and control efficiency enhancement and risk management. While contributing to the steady increase in

shareholders’ equity the Company has maintained a return on net assets of over 7% achieving mutual benefits and win-win

outcomes for the Company and its shareholders.In 2024 the Company continued to deepen measures for quality improvement and efficiency enhancement. We delved into every

link of the entire value chain and refined the construction of an open and collaborative technological platform a high-quality and

stable supply platform and an efficient and cost-effective production platform. We built a digital transformation path guided by

the Company’s strategy and closely aligned with core business indicators. We systematically broke down and analyzed these

indicators ensuring transparent and effective management throughout the entire operational process. We comprehensively

conducted operational analyses aiming at improving overall

productivity advancing business enhancements from a resource

allocation perspective and effectively implemented measures to

improve quality and efficiency. We completed the third-phase

capital increase and share expansion project in Zhuzhou CRRC

Times Semiconductor Co. Ltd. by introducing high-calibre

high-technology and high-growth strategic investors and an

employee stock ownership platform to further deepen industrial

strategic cooperation and effectively motivate key employees

thereby ensuring a steady increase in the Company’s

profitability and continuously strengthening the Company’s

sustainability capabilities with high-quality operation and

efficient management.In 2025 the Company will focus on important areas and key processes for boosting revenue and profitability strengthen cost

control and strictly fulfill the primary responsibility of product lines as profit contributors. We will accelerate the replication and

promotion of the headquarters’ excellent management achievements in integrated product development (IPD) achieve common

sharing in layers and levels promote refined management strengthen duty performance and solve management imbalance in

branches and subsidiaries. Meanwhile we will orderly promote management inquiry and review at branches and subsidiaries

timely diagnose and improve the difficulties pain points and problems in business management to enhance the Company’s

overall profitability.Persist in Improving the Construction

6 of the Board of Directors to Enhance Modern Corporate Governance

In 2024 the Company was included into the 2024 Best Practice Cases of Board

of Directors by China Association for Public Companies in recognition of

unique strengths and leading practices of the board of directors as

demonstrated in the Board’s operation mechanism director appointment and

duty performance mechanisms digital construction information disclosure

management investor relations management and implementation of ESG

principles.In 2024 the Company continued to improve its corporate governance mechanisms and accelerated the

construction of a professional responsible standardized and efficient board of directors. Firstly we optimized

the composition of the board of directors ensuring that external directors account for a majority of the board

members and independent directors account for no less than half of the board members. We actively expanded

the channels for selecting independent directors. On 27 June 2024 the Company appointed one female director

to promote gender diversity among board members. Secondly we improved the supportive system for

communication with independent directors and duty performance by directors. In accordance with the new

Company Law and regulatory requirements we formulated and revised 22 rules and policies including the

articles of association. Thirdly the Company implemented a training plan for its directors supervisors senior

executives and other key personnel with a training coverage rate of over 90%. This comprehensive training

plan conducted both online and offline helped to enhance their knowledge of compliance and equip them with

the necessary skills to diligently fulfill their obligations according to relevant laws thereby safeguarding the

interests of the Company and its shareholders as a whole.In 2025 as the new Company Law introduced a requirement on employee directors the Company keenly

captured this key change taking it as an important opportunity to further improve its corporate governance

structure and enhance governance efficiency. In 2025 the Company intends to elect an employee director who

shall act on behalf of the interests of employees and possess professional skills according to the needs of

corporate governance. Meanwhile the Company will in accordance with the listing rules of the Hong Kong

Stock Exchange and the Shanghai Stock Exchange and based on its actual conditions leverage the advantages

in its diversified board structure to optimize member composition of the special committees under the board of

directors continue to optimize the support mechanism for duty performance of independent directors and

further strengthen deep communication and collaboration between independent directors and internal teams of

the Company to inject new vitality into our business development.Persist in Strengthening Investor Relations

7 Management and Establishing a Multi-level and Mutually Beneficial Interactive Mechanism

Times Electric strictly complies with the regulatory requirements of the Company Law the Securities Law the Rules

Governing the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange and the

Rules Governing the Listing of Securities on the Hong Kong Stock Exchange and other laws regulations and normative

documents in fulfilling its information disclosure obligations to ensure that the information is disclosed in a true accurate

complete timely and fair manner and all shareholders have fair and equal access to the information and to safeguard the

interests of all shareholders especially the minority shareholders.Recognitions of the Company in 2024

A-grade rating in assessment of information disclosure by the Shanghai Stock Exchange

“2024 CBN Capital Market Value League Table – Annual Innovative Enterprise” by China Business Network

“Top 30 Listed Companies in Value on the Science and Technology Innovation Board” by Securities Times

“Future Star Listed Company in Manufacturing Industry” award by the China Industry Development Forum

of Listed CompaniesIn 2024 the Company continued to strengthen investor relations management maintain close communication with investors and comprehensively establish

an efficient and transparent platform for communication with investors. We ensured smooth channels of communication with investors and actively engaged

in effective communication and exchanges with them following the principles of being comprehensive proactive collaborative precise and efficient to

build a solid communication bridge between the Company and the capital market:

Firstly we held the 2023 performance Secondly we held the 2023 annual results Thirdly in July 2024 Niu Jie the Party

briefing interim SSE STAR Market aerospace conference in Hong Kong on 9 April 2024 Committee Secretary and deputy general

and advanced rail transit special collective attracting over 50 investors and senior manager of the Company was invited to

performance briefing and third quarter analysts from global top financial institutions. participate in the ninth episode titled "Leading

performance briefing at the SSE Roadshow Directors including the chairman of the Board the Entire Rail Transit Manufacturing Chain" of

Center in April September and December and senior management attended the the program "Hard Tech Hard Talk" under the

2024 respectively with the participation of conference to present our business results flagship column "SSE Narratives" jointly

senior management including the chairman of and development updates in 2023 and produced by the SSE and CNR.cn.the Board independent directors and general answered the questions of the audience in

manager of the Company providing an detail.opportunity for the Company's leadership to

directly address investor concerns and

effectively convey the voice of Times Electric

through a high-standard performance briefing.

23

Fourthly on 10 September 2024 the Fifthly we utilized various channels including

Company held a reverse roadshow themed listed company public announcements investor

"Walking with the Times Building Dreams conferences on-site exchange and research

with Rail Transit" in Zhuzhou city Hunan with investors SSE interactive platform

Province nearly 100 investors and brokerage telephone and email to promptly openly and

analysts attended the event and the transparently communicate the Company's

Company's general manager chief financial operating results financial positions and other

officer and secretary of the Board all attended updates to all market participants ensuring that

and had extensive communication and investors and stakeholders are well informed

exchanges with investors further about the Company's operation and

demonstrating the Company's core values management in a timely manner.and future development potential and

enhancing investors' understanding and

confidence in the Company's business.

5

4Staying in tune with the national trend of green and sustainable development to implement the ESG principles the Company had disclosed the

Social Responsibility Report consecutively since 2009. In the Social Responsibility and Environmental Social and Governance (ESG) Report for

2023 disclosed by the Company we additionally disclosed the intensity and categories of greenhouse gas emissions the total amount and

intensity of comprehensive energy consumption and the total emissions of waste gas solid waste hazardous waste and packaging

consumables. Furthermore we published an essay headed “ESG Report in One Picture” on our WeChat official account combining concise

graphics and text to illustrate the essence of the report.The Company’s recognitions and honours

ESG “A” rating from Wind Info

“A”rating in the CSI ESG evaluation

National “Green Supply Chain Management Enterprise”

“Top 50 Central Enterprises” award granted at the 2nd Guoxin Cup * ESG Golden Bull Award ceremony

“Best ESG Practice Award” for listed companies in 2024 by easy-board.cn

The Company will continue to strengthen its ESG management and further enhance its ESG performance to underpin its high-quality

development.In 2025 in order to better safeguard shareholders’ rights and interests the Company formulated the Market Capitalization Management

Rules. Accordingly the chairman of the Board is tasked to oversee the Company’s market capitalization management efforts and public opinion

monitoring is integrated into our daily management system. Combining various strategies we will reasonably stabilize market capitalization

ensure the alignment of market capitalization with intrinsic value of the Company and effectively protect the interests of investors. We will

actively communicate with investors through various forms answer and explain various issues of concern to investors within the scope of legal

compliance enhance investors’ sense of identification with the Company and establish a sound corporate image in the capital market.8 Persist in Enhancing Shareholder Returns and Boosting Confidence in the Secondary Market

Since its listing on the Hong Kong Stock Exchange in 2006 Times Electric has maintained a stable dividend policy with the annual dividend amount

accounting for over 20% of the net profit attributable to the parent company. With the steady development of the Company’s performance the

dividend per share has increased year by year. Taking into account the needs of investors for returns and the long-term development of the Company

the proposal has been considered and approved at the 2023 annual general meeting of the Company under which the cash dividend was paid in full

on 8 August 2024.After the listing of the Company’s A shares on the

Science and Technology Innovation Board in 2021 From 2006 to 2023

the dividend ratio has increased to the Company has distributed dividends of approximately RMB8.3 billion representing

over 30%. 73.55% of the total proceeds from listing on both markets.Taking into account the needs of investors for returns and the long-term development of the Company

The Company proposed a profit distribution plan for 2023 as follows:

to distribute a cash dividend of RMB7.8 per 10 shares (inclusive of tax) to all shareholders for 2023; the total amount of

cash dividend to be paid out exceeds RMB1.1 billion accounting for 35.45% of the net profit attributable to shareholders

of the Company in the consolidated statement of 2023. The cash dividend per share represents a year-on-year increase of

41.82% over the last year.

For year 2024 the Company expects to continue to give back to investors based on its financial conditions. The profit distribution plan for 2024 is as

follows:

Based on the total share capital of 1369339712 shares as of 26 February 2025 to distribute a cash dividend of RMB10 per 10 shares

(inclusive of tax) to all shareholders for 2024; the total amount of cash dividend to be paid out exceeds RMB1.369 billion accounting for

36.98% of the net profit attributable to shareholders of the Company in the consolidated statement of 2024. The cash dividend per share

represents a year-on-year increase of 28.21% over the last year.No bonus issue or conversion of capital reserve into share capital will be made for 2024. In case of a change in the total share capital of the Company

before the record date for entitlement the Company proposed to keep the dividend ratio per share unchanged and adjust the total dividend

accordingly and details of such adjustment will be announced separately. This proposal will be submitted to the Company's 2024 annual general

meeting for consideration.Adhering to the concept of better safeguarding shareholders’ rights and interests and creating greater value for shareholders Times Electric has

continued to implement value realization measures including share repurchase for cancellation. The Company has repurchased 46897200

H shares for approximately HK$1.384 billion (exclusive of expenses) in total. Accordingly the number of the Company's shares in issue will

be reduced to 1369339712 shares (including 500432200 H shares and 868907512 A shares). These measures

demonstrated to the capital market our in-depth recognition of the Company’s operational stability and growth expressed our firm confidence in the

Company’s stable development in the future and responded to changes in the capital market in real time with practical actions.In January 2024 the Company repurchased 4696800 H shares which were cancelled in April 2024.From 12 December 2024 the Company repurchased 4887300 H shares which were cancelled on

to 16 December 2024 19 December 2024.From 17 December 2024 the Company repurchased 37313100 H shares which were cancelled on

to 20 February 2025 26 February 2025.In 2025 the Company will continue to implement measures such as share repurchase for cancellation and will prepare the Shareholders’

Dividend and Return Plan for the Next Three Years (2025-2027) of Zhuzhou CRRC Times Electric Co. Ltd. Based on our

development stage we will maintain a dynamic balance between business development performance growth and shareholder returns. By

establishing a sustainable shareholder value and return mechanism we aim to enhance the satisfaction and benefits of our investors allow investors

to share the fruits of growth with the Company and enhance investors’ confidence in our business development.9 Miscellaneous

In 2024 the Company advanced its high-quality development by implementing the Corporate Value and Return Enhancement Action Plan. Staying

focused on its principal business the Company continued to optimize operational management improve business quality comprehensively and strengthen

management and maintenance of investor relations thus safeguarding the legitimate rights and interests of investors effectively.Through continuous evaluation on the measures adopted the Company further optimized and developed the Corporate Value and Return EnhancementAction Plan 2025 on the basis of the Action Plan 2024. Looking into 2025 the Company will adhere to the key note of “high-quality development andefficient management” continuing to enhance its core competitiveness and foster new quality productive forces. Through robust business management and

standardized corporate governance we will take initiatives to give back to our investors effectively fulfill our responsibilities and obligations as a listed company

and contribute to stable and healthy development of the capital market.This Action Plan is developed based on the Company’s current conditions and does not constitute a material commitment of the Company to investors. Given the

uncertainties due to the potential impact from macroeconomic policy adjustments and changes in industry market and environment in the future among other

factors investors are advised to be aware of the risks involved.