Company code: 688187 Company abbreviation: Times Electric

Zhuzhou CRRC Times Electric Co., Ltd

Summary of the 2024 Annual Report

Section 1 Important Notice

1. The summary of this annual report is from the full text of the annual report, in order to fully understand the company's operating results, financial status and future development plan, investors should go to the www.sse.com.cn website to read the full text of the annual report carefully.

2. Major risk warning

Please refer to the description of the risks in Section IV "Management Discussion and Analysis" of this report.

3. The Board of Directors, the Board of Supervisors, the directors, supervisors and senior management of the Company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and that there are no false records, misleading statements or material omissions, and bear individual and joint legal liabilities.

4. All directors of the company attend the meeting of the board of directors.

5. KPMG Huazhen Certified Public Accountants (Special General Partnership) issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability at the time of listing

□ Yes √ No

7. The profit distribution plan or the plan for the conversion of provident fund into share capital for the reporting period approved by the board of directors

The company intends to distribute cash dividends to all shareholders based on the total share capital registered on the record date for the implementation of equity distribution (the specific date will be specified in the announcement on the implementation of equity distribution). The Company intends to distribute a cash dividend of RMB10 (tax included) to all shareholders for every 10 shares. As of February 26, 2025, the total share capital of the Company is 1,369,339,712 shares, and the total proposed cash dividend is RMB 1,369,339,712, accounting for 36.98% of the net profit attributable to shareholders of the listed company in the Company's consolidated statements for 2024. If there is a change in the company's total share capital from the date of disclosure of the company's profit distribution announcement to the equity registration date for the implementation of equity distribution, it is proposed to maintain the distribution ratio per share unchanged, adjust the total distribution amount accordingly, and will announce the specific adjustment separately. The above-mentioned profit distribution plan has been deliberated and approved by the 16th meeting of the seventh board of directors of the company, and needs to be reviewed and approved by the company's 2024 annual shareholders' meeting.

8. Whether there are special arrangements for corporate governance and other important matters

□ Applicable √ Not applicable

Section 2 Basic information of the company

1. Company profile

1.1 Company Shares

√ Applicable □ Not applicable

Company stock profile

Stock Type Stock Listed Exchange Stock Abbreviation Stock Code Stock Abbreviation Before the change

and plates

A-shares, SSE Science and Technology Innovation Board, Times Electric, 688187 Not applicable

H-share Main Board of the Stock Exchange Times Electric 3898 CRRC Times Electric

1.2 Brief description of the Company's Depositary Receipts

□ Applicable √ Not applicable

1.3 Contacts and Contact Details

Secretary of the Board of Directors and Representative of Securities Affairs

Name: Long Furong Xiao Ying

Address: Shifeng District, Zhuzhou City, Shifeng Road, Shifeng District, Zhuzhou City

Tel: 0731-28498028 0731-28498028

Fax: 0731-28493447 0731-28493447

E-mail ir@csrzic.com ir@csrzic.com

2. Brief introduction of the company's main business during the reporting period

2.1 Main business, main products or services

As a leading supplier of traction converter system in China's rail transit industry, the company has comprehensive capabilities in R&D, design, manufacturing, sales and service, and is committed to becoming the preferred supplier of comprehensive solutions for global rail transit equipment.

With technology research and development as the core, the company adheres to the concept of "high-quality operation and high-efficiency operation", adheres to the strategy of "concentric diversification", and gradually expands the market outside rail transit and creates new growth points on the basis of consolidating and improving the rail transit business.

The company is mainly engaged in the research and development, design, manufacturing, sales and related services of rail transit equipment products, with the industrial structure of "device + system + machine", and its products mainly include rail transit electrical equipment, rail construction machinery, communication signal systems, etc., based on rail transit traction converter system. At the same time, the company also actively lays out industries other than rail transit, and conducts business in the fields of basic devices, new energy vehicle electric drive systems, new energy power generation, offshore equipment, and industrial converters. After years of R&D accumulation and technology accumulation, the company has a complete independent intellectual property rights system, and has become a high-tech enterprise with independent intellectual property rights in the fields of electrical system technology, converter and control technology, industrial converter technology, train control and diagnosis technology, rail engineering machinery technology, power semiconductor technology, communication signal technology, data and intelligent application technology, traction power supply technology, inspection and testing technology, deep-sea robot technology, new energy vehicle electric drive system technology and sensor technology.

Since its establishment, the company's main business has not undergone major changes.

2.2 Main business model

As far as the procurement model is concerned, the company adopts the model of "unified management, professional centralization, and procurement separation", establishes a unified procurement system, procurement methods and procurement procedures, implements centralized procurement and promotes a unified procurement platform, so as to ensure the quality of procurement, reduce costs and increase efficiency.

As far as the production mode is concerned, the company adopts the plan management mode of sales and production, formulates sales plans according to sales orders and past sales, prepares a certain amount of safety stock based on daily demand assessment and production, supply and marketing coordination, and determines the production plan. With the concept of "lean and efficient, dynamic management, and comprehensive balance", the company has built an integrated, dynamic, flexible, efficient and intelligent production planning system suitable for the company's development.

As far as the service model is concerned, the company has established a global after-sales service network covering key customers, key regions and key products, and earnestly fulfills the first time response through the three-level service management model of "service headquarters - service office - service station" to ensure that customers can obtain after-sales service, technical support, quality feedback and complaint consultation at any time.

As far as the sales model is concerned, the company obtains orders through market-oriented public bidding, competitive negotiation, customer single-source procurement, customer inquiry and price comparison, etc., and produces and sells according to customer needs. At present, the company mainly adopts the direct sales model to achieve sales.

As far as the R&D model is concerned, the company adheres to the two-wheel drive of "strategic traction" and "market orientation", determines scientific research projects from a strategic perspective and market perspective, and carries out specific scientific research work. Through the introduction of IPD and the project iron triangle concept, the front-end of technological innovation is expanded to market research and product planning, and the back-end is expanded to the management of the life cycle of mass-produced products, so as to realize the whole process management of products from strategic planning, scientific research and development to market exit.

2.3 The situation of the industry

(1). The development stage, basic characteristics and main technical thresholds of the industry

The company is mainly engaged in the research and development, design, manufacturing, sales and related services of rail transit equipment products. According to the National Bureau of Statistics' "Industrial Classification of the National Economy" (GB/T4754-2017), the company's industry is "C37 Railway, Shipbuilding, Aerospace and Other Transportation Equipment Manufacturing"; According to the Classification of Strategic Emerging Industries (2018) (Decree No. 23 of the National Bureau of Statistics) of the National Bureau of Statistics, the industry to which the company belongs is "2. High-end equipment manufacturing industry - 2.4 rail transit equipment industry". The company's rail transit equipment mainly includes rail transit electrical equipment, rail construction machinery and communication signal systems, which belong to the specific subdivisions under "2. High-end equipment manufacturing industry - 2.4 rail transit equipment industry" in the "Classification of Strategic Emerging Industries (2018)".

The company's emerging equipment includes basic devices, new energy vehicle electric drive systems, new energy power generation, offshore equipment, industrial converters and other products, some of which are used in the field of rail transit.

The basic characteristics of the rail transit equipment industry are that the core technology threshold is high, and customers have extremely high requirements for the safety, reliability and sustainability of the products and services provided, requiring enterprises to have strong anti-risk capabilities. Driven by core technologies, the company will continue to innovate and create smarter and greener high-end equipment around application scenarios such as railways, urban rail, new energy, mining, ports, and metallurgy. The company's long-term accumulation of independent core technology, from devices to systems to complete machine multi-field professional capabilities, is the main threshold of rail transit and industrial high-end equipment industry.

(2). Analysis of the company's position in the industry and its changes

The company is a leading supplier of traction converter system in China's rail transit industry, which can produce traction converter systems covering a variety of models in the field of locomotives, bullet trains and urban rail. Taking the urban rail field as an example, according to the statistics of public information such as the bidding and bidding of the urban rail traction converter system, the company has ranked first in the domestic market share for 13 consecutive years from 2012 to 2024.

In the field of rail construction machinery, the company's subsidiary, Baoji CRRC Times, is one of the three major designated manufacturers of road maintenance machinery of China Railway Group, with a total of about 79 administrative licenses, which can produce more than 50 kinds of products in multiple series such as heavy-duty rail cars, catenary operation vehicles, large-scale road maintenance machinery, urban rail transit engineering vehicles, etc., and continue to develop into the passenger dedicated line and urban rail market.

In the field of power semiconductors, the company has built an industrialization base of 6-inch bipolar devices, 8-inch IGBT and 6-inch silicon carbide.

It has a full set of independent technologies for chips, modules, components and applications. The full range of high-reliability IGBT products produced by the company has broken the monopoly of the core components of rail transit and UHV transmission by foreign enterprises, and is currently solving the problem of autonomy of the core components of China's new energy vehicles and new energy power generation equipment. According to NE Times statistics, the company will rank second in the industry in terms of installed capacity of power modules for passenger cars in 2024, with a market share of 13.7%.

With technology research and development as the core, the company adheres to the strategy of "concentric diversification", and actively lays out industries other than rail transit to create new growth points on the basis of consolidating and improving the rail transit business. In the field of industrial converter, the company is in a leading position in the industry in subdivisions such as mining truck electric drive and air conditioning inverter. In the field of new energy power generation, the company continued to make efforts in the fields of photovoltaic inverters, energy storage converters, wind power converters and IGBT hydrogen production power supplies, and the photovoltaic energy storage and wind hydrogen business achieved new achievements, among which the market share and new contracts of photovoltaic inverters continued to grow, and the annual winning bid exceeded 20GW, ranking among the top in the industry in China; The air storage converter business has made rapid progress and actively expanded new customers; IGBT

The domestic market share of hydrogen production power supply continues to be the first, and the leading position is maintained. According to the statistics of NE Times, the annual installed capacity of electric drive systems for new energy vehicles exceeded 251,000 sets, a steady increase over last year, and the domestic market ranked among the top in the industry. Sensor devices rank first in the domestic market share in the field of rail transit, and rank in the forefront of the industry in the fields of new energy vehicles, wind power and photovoltaics.

The company will always focus on customer needs, continuously improve user experience, and strengthen differentiated competitive advantages. Through continuous commercial, technological and management innovation, we will provide the society with intelligent, safe, green and comfortable high-end equipment, and become the preferred supplier of comprehensive solutions for electrical systems in the field of transportation and energy.

(3) The development and future development trend of new technologies, new industries, new forms of business and new models during the reporting period

The successful convening of the 20th National Congress of the Communist Party of China (CPC) has opened a new journey of comprehensively promoting the great rejuvenation of the Chinese nation with Chinese-style modernization. The report of the 20th National Congress of the Communist Party of China depicts a grand blueprint for the development of the new energy industry, and the continuous implementation of national top-level strategies such as the "Outline for the Construction of a Transportation Power" and the "Double Carbon" has brought important opportunities for the development of the company's rail transit and new energy equipment industry.

The "Outline for the Construction of a Transportation Power" clearly points out that it is necessary to promote intelligent and digital transportation equipment and vigorously develop smart transportation; Advocate green development, conservation, intensive, low-carbon and environmental protection. It is the development direction of China's advanced rail transit equipment to develop a new generation of green, intelligent, high-speed and heavy-haul rail transit equipment system, provide users with overall solutions around the whole life cycle of the system, and establish a world-leading modern rail transit industry system. At the same time, under the background of "dual carbon", the country has vigorously carried out the "road to railway" to implement the improvement of railway transport capacity, and heavy-haul freight locomotives still have great potential; As the core project of "new infrastructure", intercity high-speed railway has ushered in a good opportunity for the development of intercity/city areas; Smart empowerment and integration and innovation have become the main direction of the development of the urban rail industry, and there are many market opportunities; After the overhaul of rail transit, the market capacity is huge, and the industrial growth trend is obvious.

China's strategy of "carbon peaking and carbon neutrality" is a major decision made based on the overall international and domestic situation, which is of great significance to China's ecological civilization construction, leading global climate governance, and realizing the "two centenary" goals. Under the background of "dual carbon", the multi-point coupling of the "wind-solar-storage-hydrogen" market of the domestic new energy power generation industry has exploded, with huge market prospects and unlimited business opportunities. The key to industrial development is to build an end-to-end technology ecosystem that deeply integrates wind, solar, storage, hydrogen and electronic control technologies with ecological partners. In addition, driven by the "dual carbon" policy, the low-carbon energy transition will drive the rapid development of industries such as electric drive systems, semiconductor devices and sensors for new energy vehicles.

3. The company's main accounting data and financial indicators

3.1 Key accounting data and financial indicators for the past 3 years

Unit: Yuan Currency: RMB

2023 This year 2022

than above

Year 2024

After Adjustment Before Adjustment Increase or Decrease After Adjustment Before Adjustment

(%)

Total assets 64,802,246,319 53,778,787,056 53,404,847,387 20.50 48,841,569,670 48,509,554,784

Attribution

Municipal Corporation 41,527,759,522 36,998,130,898 36,865,956,579 12.24 34,727,007,601 34,530,700,003

East Net Capital

give birth

Operating income 24,908,937,548 21,962,105,911 21,798,940,776 13.42 18,126,119,334 18,033,778,561

Attribution

Municipal Shares 3,702,585,914 3,040,760,113 3,105,703,645 21.77 2,545,453,427 2,555,823,375

East's net profit

moistening

Attributed to 3,225,597,847 2,595,354,689 2,595,354,684 24.28 1,998,118,903 1,998,118,899

Municipal Corporation Shares

East deductions

Non-recurring

Net profit or loss

profit

Business Activities

Generated 3,361,120,915 2,767,580,144 2,781,885,557 21.45 1,943,315,649 2,041,235,459

Gold flow net

forehead

The weighted average increases

Net assets 9.31 8.48 8.70 0.83 7.58 7.61

Profit rate (% hundred

Equinox

Basic per share

Earnings (Yuan 2.62 2.15 2.19 21.86 1.80 1.80

/share)

Diluted per share

Earnings (Yuan 2.62 2.15 2.19 21.86 1.80 1.80

/share)

R&D investment increased

Accounting for operating revenue 11.41 9.96 9.84 1.45 10.25 10.24

The proportion of income is hundreds

(%) Points

3.2 Key accounting data by quarter in the reporting period

Unit: Yuan Currency: RMB

Q1 Q2 Q3 Q4

(January-March) (April-June) (July-September) (October-December)

Operating income 3,951,483,100 6,404,156,093 6,037,884,271 8,515,414,084

Net profit attributable to shareholders of listed companies 556,568,395 923,576,887 974,078,450 1,248,362,182

Deductions attributable to shareholders of listed companies are not 460,999,114 697,684,494 888,574,768 1,178,339,471

Net profit after recurring gains and losses

Net cash flow from operating activities -508,704,086 1,160,097,168 -126,118,502 2,835,846,335

Explanation of the discrepancies between the quarterly data and the data disclosed in the periodic report

√ Applicable □ Not applicable

In December 2024, the company acquired 100% equity interest in Hunan CRRC Commercial Vehicle Power Technology Co., Ltd. and included it in the consolidated financial statements

Surround. The transaction constituted a business combination under the same control, so the financial data of the previous period were retrospectively adjusted in accordance with the relevant requirements of the Accounting Standards for Business Enterprises.

4. Shareholders

4.1 The total number of common shareholders, the total number of preferred shareholders whose voting rights have been restored, and the total number of shareholders holding special voting shares and the top 10

shareholders

Unit: Shares

As of the end of the reporting period, the total number of ordinary shareholders (households) was 19,612

The total number of ordinary shareholders (households) at the end of the previous month prior to the disclosure date of the annual report was 20,198

The total number of preferred shareholders whose voting rights have been restored as of the end of the reporting period (households) is not applicable

Preferred shares whose voting rights have been restored at the end of the previous month prior to the disclosure date of the annual report are not applicable

Total number of East (households)

The total number of shareholders holding special voting shares as of the end of the reporting period (households) Not applicable

Not applicable to those who held special voting shares at the end of the previous month prior to the disclosure date of the annual report

Total number of shareholders

Shareholdings of the top 10 shareholders (excluding shares lent through refinancing)

Staking, tokenizing, or

Freeze the situation

Name of shareholder Increase in number of shares held at the end of the reporting period Proportion of shareholders holding restricted sales

(Full Name) Reduction (%) Number of Conditional Shares Nature

The amount of shares in the quantity

state

CRRC Zhuzhou Electric Power Machine State-owned law

Car Research Institute Co., Ltd. 9,380,769 600,381,485 42.68 589,585,699 None-person

manage

HKSCC NOMINEES -9,566,600 536,423,666 38.13 0 Unknown Foreign Law

LIMITED people

HKSCC has -4,187,210 25,012,601 1.78 0 N/A - Offshore law

Limited to company persons

China Merchants Bank shares have

Limited company - Huaxia

CSI STAR Market 50 Ingredients -3,870,071 17,710,789 1.26 0 None - Unknown

Transactional open-ended refers to

A number of securities investment funds

Industrial and Commercial Bank of China shares

Shares Limited - Easy

Fangda SSE STAR Market 3,959,013 10,910,004 0.78 0 None - Unknown

50 Ingredient Trading Open

Invest in open-ended index securities

funds

CRRC Zhuzhou Electric Power 0 10,000,000 0.71 0 N/A - State-owned law

Car Co., Ltd. people

China Railway Construction High-tech 0 9,800,000 0.70 0 N/A - State-owned law

Reserve company limited by shares

National Social Security Fund 1,552,490 5,884,971 0.42 0 None - Unknown

One-zero combinations

Industrial and Commercial Bank of China shares

Parts Limited - Hua

Tyberry CSI 300 2,839,854 4,627,891 0.33 0 None - Unknown

Transactional open-ended refers to

A number of securities investment funds

Hunan Rail Transit Control 0 3,958,888 0.28 0 N/A - State-owned law

shares of the Group Co., Ltd. people

Guohua Investment and Development Capital State Law

Production Management (Beijing) 0 3,958,888 0.28 0 None - Person

Ltd

Description of the above-mentioned shareholder affiliation or concerted action CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd. is directly controlled by the company

The shareholder of CRRC Co., Ltd. is the shareholder of CRRC

Zhou Electric Locomotive Research Institute Co., Ltd., CRRC Zhuzhou Electric Locomotive

Ltd. and CRRC Hong Kong Capital Management Limited

100% equity shareholder, through CRRC Zhuzhou Electric Locomotive Research Institute

Co., Ltd. and CRRC Zhuzhou Electric Locomotive Co., Ltd. together indirect

Held 610,381,485 RMB ordinary shares of the Company and approved

CRRC Hong Kong Capital Management Co., Ltd. indirectly holds the company

65,460,000 overseas listed foreign shares. CRRC shares

The company indirectly holds a total of 48.05% of the company's equity.

In addition to this, the company does not know whether there exists among the other shareholders mentioned above

Affiliations or concerted action relationships.

Explanation of preferred shareholders whose voting rights have been restored and the number of shares held is not applicable

Holders of depositary receipts

□ Applicable √ Not applicable

The top 10 shareholders in terms of the number of voting rights as of the end of the reporting period

□ Applicable √ Not applicable

4.2 Block diagram of the property rights and control relationship between the company and the controlling shareholder

√ Applicable □ Not applicable

4.3 Block diagram of the property rights and control relationship between the company and the actual controller

√ Applicable □ Not applicable

4.4 The total number of preferred shareholders and the top 10 shareholders of the company at the end of the reporting period

□ Applicable √ Not applicable

5. Corporate bonds

□ Applicable √ Not applicable

Section 3: Important Matters

1. The company shall, in accordance with the principle of materiality, disclose the major changes in the company's operation during the reporting period, as well as the events that have a significant impact on the company's operation during the reporting period and are expected to have a significant impact in the future.

During the reporting period, the company thoroughly implemented the business philosophy of combining high-quality development and high-level safety, firmly served the national strategy, seized the development opportunities of "intelligence, digitalization and greening", and always insisted on putting profitability improvement in the first place. The company has laid a solid foundation and expanded new ones in the field of rail transit, and has taken advantage of the momentum in the field of emerging equipment to achieve overall business efficiency improvement.

During the reporting period, the company achieved operating income of RMB24.909 billion (a year-on-year increase of 13.42%), and achieved net attributable to the parent company

Profit was RMB3,703 million (up 21.77% year-on-year), mainly due to the increase in gross profit due to the increase in operating income. Basic earnings per share of RMB2.62 per share (up 22.03% year-on-year) and weighted average return on equity of 9.31% (up 0.83 percentage points year-on-year), mainly due to the increase in net profit attributable to the parent company.

2. If there is a delisting risk warning or termination of listing after the disclosure of the company's annual report, the reasons for the delisting risk warning or termination of listing shall be disclosed.

□ Applicable √ Not applicable