China Railway Prefabricated Construction Co Ltd

China Railway Assembly announced on September 18 that it had received a case filing notice from the China Securities Regulatory Commission that day. Because the company is suspected of violating laws and regulations on information disclosure, the CSRC has decided to open an investigation. After conducting an internal review, the company said the case may involve related business carried out before a change in its actual controller. After the change, the company stopped carrying out such business in accordance with relevant regulations, and it has not yet received the CSRC's final investigation conclusion. The company said all production and operating activities are proceeding normally, the above matter will not have a material impact on normal production and operations, and it will actively cooperate with the CSRC in all work during the investigation. China Railway Assembly is the only high-tech innovative prefabricated construction business platform under China Railway Group, with its actual controller being the State-owned Assets Supervision and Administration Commission of the State Council. In the first half of 2026, it achieved operating revenue of 882 million yuan, up 1.28 percent year on year, while net profit attributable to shareholders of the listed company was negative 49 million yuan, down 31.64 percent year on year. As of the close on September 18, the company's share price had fallen 31.72 percent cumulatively since the start of the year.

China Railway Prefabricated Construction released its 2026 interim report. Total operating revenue was 882 million yuan, up 1.28 percent year on year, marking a fourth consecutive year of growth. Net profit attributable to the parent company was a loss of 48.67 million yuan, with the loss widening from a year earlier and decreasing by 11.70 million yuan compared with the same period last year. Net cash flow from operating activities was negative 66.46 million yuan, down 277.30 percent year on year. The company's asset-liability ratio was 83.76 percent, gross margin was 4.83 percent, return on equity was negative 7.00 percent, and diluted earnings per share was negative 0.20 yuan. The number of shareholders was 18,500, and the top ten shareholders held 52.97 percent of total share capital.

China Railway Assembly Chairman An Zhenshan has resigned from his positions as chairman, director, and chairman of the Strategy and Investment Committee due to a job transfer. He will no longer serve as the legal representative and will not hold any position in the company after his resignation. An Zhenshan's pre-tax compensation disclosed in the 2025 annual report was 1.4928 million yuan, and he did not hold any company shares. Vice Chairman Wang Ping will act on his behalf until a new chairman is elected. Another announcement disclosed on the same day shows that the company and its controlled subsidiaries have been involved in a total of 55 lawsuits and arbitrations over the past twelve consecutive months, with the total amount involved reaching approximately 82.5479 million yuan, accounting for 11.10% of the most recent audited net assets. Among these cases, the amount involved in cases where the company is the defendant or respondent accounts for over 97%. Four major cases are all under trial, involving disputes over sales contracts, assignment of claims, and construction project contracts. The highest amount involved in a single case reaches 16.4116 million yuan. The company stated that it will actively respond to the lawsuits and strengthen the collection of accounts receivable, but as some cases have not yet been heard or concluded, the impact on profits remains uncertain.