China Railway Signal mmunication : ANNOUNCEMENT ON UPDATES OF 2020 PRELIMINARY ANNUAL RESULTS

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China Railway Signal & Communication Corporation Limited*

(A joint stock limited liability company incorporated in the People's Republic of China)

(Stock Code: 3969)

ANNOUNCEMENT ON UPDATES OF 2020 PRELIMINARY ANNUAL RESULTS

This announcement is made by China Railway Signal & Communication Corporation Limited* (the "Company") pursuant to Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The major financial data for the year 2020 contained in this announcement is preliminary accounting data and has not been audited by the accounting firm. The specific data should be referred to the data disclosed in the 2020 annual report of the Company. Investors are reminded of the investment risks.

I.

MAJOR FINANCIAL DATA AND INDICATORS FOR THE YEAR 2020

Unit: RMB ten thousand

Corresponding

Reporting period of last Increase/Item

period year decrease (%)

Total revenue	4,012,447.67	4,164,628.68	-3.65
Operating profit	500,907.03	497,941.02	0.60
Total Profit	503,587.25	502,747.45	0.17
Net profits attributable to owners of	381,904.63	381,587.49	0.08
the parent company
Net profits attributable to owners of	357,599.50	350,128.23	2.13
the parent company deducting
non-recurring profit and loss
Basic earnings per share (RMB/share)	0.34	0.38	-10.53
Weighted average return on net assets	9.09%	12.77%	Decreased by
3.68 percentage
points
As at the
As at the end	beginning of
of the reporting	the reporting	Increase/
Item	period	period	decrease (%)
Total assets	10,532,392.91	9,751,259.13	8.01
Equity attributable to owners of the	4,256,346.81	4,111,960.74	3.51
parent company
Share capital (in ten thousand shares)	1,058,981.90	1,058,981.90	-
Net asset per share attributable to owners	4.02	3.88	3.61
of the parent company (RMB/share)

Notes:

1. The data as at the beginning of the reporting period is the same as the data statutorily disclosed as at the end of last year.

2.

The above data is based on the data of the consolidated statements of the Company but has not been audited. The finalized results should be referred to the 2020 annual report of the Company.

• II. EXPLANATION OF OPERATING RESULTS AND FINANCIAL STATUS

  (I) The operating conditions, financial positions and the major factors which affect operating results during the reporting period

  During the reporting period, the Company spared no effort to conquer the adverse effects of the epidemic and worked hard to guarantee the production and operation, accelerated the implementation of key and core technologies and made sturdy progress in the special campaign of improving quality and efficiency. The overall operating conditions remained stable and the total revenue amounted to RMB40.124 billion, representing a decrease of 3.65% as compared to the corresponding period of last year. Total profit amounted to RMB5.036 billion, representing an increase of 0.17% as compared to the corresponding period of last year and an increase of 6.63% as compared to the corresponding period of last year upon netting off the impact of the spinoff on real estate business last year. Basic earnings per share was RMB0.34, representing a decrease of 10.53% as compared to the corresponding period of last year, mainly due to the increase in the number of shares of the Company upon the listing on the Sci-tech Innovation Board of the Shanghai Stock Exchange in July 2019. As at the end of the reporting period, total assets amounted to RMB105.324 billion, representing an increase of 8.01% as compared to the beginning of the year; equity attributable to owners of the parent company amounted to RMB42.563 billion, representing an increase of 3.51% as compared to the beginning of the year.

  (I) The main reason for the increase/decrease of 30% or more of the relevant items in the above table

  N/A.

• III. WARNING OF RISKS

  The major financial data for the year 2020 contained in this announcement is preliminary accounting data, which may differ from the data to be disclosed in the 2020 annual report of the Company. The specific data should be referred to the data disclosed in the 2020 annual report of the Company. Investors are reminded of the investment risks.

By order of the Board

China Railway Signal & Communication Corporation Limited*

ZHOU Zhiliang

Chairman

Beijng, the PRC

25 February 2021

As of the date of this announcement, the executive directors of the Company are Mr. ZHOU Zhiliang, Mr. XU Zongxiang and Mr. YANG Yongsheng, and the independent non-executive directors of the Company are Mr. CHEN Jin'en, Mr. CHAN Ka Keung Peter and Mr. YAO Guiqing.