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China Railway Signal & Communication Corporation Limited* 中國鐵路通信信號股份有限公司 (A joint stock limited liability company incorporated in the People’s Republic of ) (Stock Code: 3969)

ANNOUNCEMENT ON BID-WINNING OF IMPORTANT PROJECTS IN THE RAIL TRANSIT MARKET

This announcement is made by 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).

From July to August 2020, the Company has won the bidding for a total of ten important projects in the rail transit market, among which, three are acquired from the railway market, namely four power integration and the related works for the CJLLXZH-2 tender section of the newly built Langfang East-New Airport intercity link (the “Phase-I Project for the Newly-built Intercity Link”) with a tender amount of RMB113 million, four power integration and the related works for the XJSD tender section of the newly built Xuancheng-Jixi High-speed Railway (“Xuan Ji High-speed Railway”) with a tender amount of RMB200 million, EPC project for communications and signaling of Bangladeshi Padma Bridge rail link project with a tender amount of RMB260 million; the other seven are acquired from the urban rail transit market, namely signal system installation project in respect of -- Urban Rail Transit Project with a tender amount of RMB249 million, signal system procurement project in respect of phase I of Urban Rail Transit Line No. 2 with a tender amount of RMB196 million, signal system procurement project in respect of phase I project of Urban Rail Transit Line No. 20 with a tender amount of RMB175 million, signal system engineering project in respect of Rail Transit Line No. 3 with a tender amount of RMB267 million, General contracting project for system equipment engineering of Xi’an Metro (from North Railway Station to Heshao Village) with a tender amount of RMB121 million, procurement of special communication system equipment, and communication system integration (No. 3302) (Second Bid) of Urban Rail Transit with a tender amount of RMB153 million as well as Maintenance services outsourcing project for engineering signal and communication system equipment of Phase I of and Phases I and II of Line18 of Metro with a tender amount of RMB164 million.

Details of the projects awarded are hereby announced as below:

1 I. RELEVANT INFORMATION OF THE PROJECTS WON IN THE RAILWAY MARKET

Project One Project Two Project Three

I. General information

1. Name of the project Phase-I Project for the Xuan Ji High-speed EPC Project for Communications Newly-built Intercity Link Railway and Signaling of Bangladeshi Padma Bridge Rail Link Project 2. Bid originator Jing’an Intercity Railway China Railway Design China Railway Group Ltd. Co., Ltd. Corporation 3. Tender amount 1.13 2.0 2.6 (RMB100 million) 4. Overview of the project The Phase-I Project for The main line of Xuan The line of the Bangladeshi the Newly-built Intercity Ji High-speed Railway Padma Bridge rail link project Link is 39.339km long, is 115km long, the is 168.5km with 20 stations, the designed running designed running speed including 14 newly-built speed of the line is of the line is 350km/ stations and 6 re-constructed 200km/h. It will be h. The main line will be stations based on existing ones. equipped with a CTCS- equipped with a CTCS- The passenger and freight 2 level high-speed train 3 level high-speed train lines have a designed running operation control system. operation control system. speed of 120km/h and 80km/ The Company will be h for passenger and freight The Company will be responsible for equipment transportation. The phase-I and responsible for equipment procurement, system phase-II projects are 81.7km and procurement, system debugging and other 86.9km long, respectively. debugging and other system integration work system integration work for all communications, The Company will be for all communications, signaling and other responsible for design, signaling and other projects of Xuan Ji High- procurement, construction and projects of the Phase-I speed Railway, and will installment and debugging of the Project for the Newly- cooperate with joint communication signaling system built Intercity Link, and debugging, trial operation of the Bangladeshi Padma will cooperate with joint and other tasks. Bridge rail link project and will debugging, trial operation cooperate with joint debugging, and other tasks. trial operation and other tasks.

2 Project One Project Two Project Three

II. Information of the counterparty

1. Name of the Jing’an Intercity Railway China Railway Design China Railway Group Ltd. enterprise Co., Ltd. Corporation 2. Nature of the enterprise State-owned enterprise State-owned enterprise State-owned enterprise 3. Legal representative Liu Bo Liu Weiqun Zhang Zongyan 4. Registered capital RMB2,500 million RMB660 million RMB24,570,929,283 5. Date of incorporation 13-04-2016 21-07-1992 12-09-2007 6. Main office location 101 & 102, 1/F, Building 109 East 7th Road, China Railway Building, 63, Yard 5, Yujing East Pilot Free Trade Building 9, 69 Fuxing Road, Road, Tongzhou , Zone (Tianjin Airport Haidian District, Beijing Economic Area) 7. Major shareholders Beijing Tianjin Hebei China State Railway China Railway Engineering Intercity Railway Group Co., Ltd. Group Limited Investment Co. Ltd. China Railway Group Ltd. HKSCC Nominees Limited China Securities Finance Corporation Limited China Reform Holdings Corporation Ltd. 8. Principal business Construction of railway Undertaking of survey, Contracting of civil engineering projects; lease of office consultation, design and construction, wiring, and commercial space and supervision for pipe fitting and equipment (space which is not overseas and domestic installation; sub-contracting of used for tangible market foreign invested projects; the survey, design, building, operation); advertisement export of equipment and construction supervision, design, production, materials required for the technology consultation, agency and releasing; land abovementioned items; technology development, consolidation; technology contracting of foreign technology transfer and development, technology (overseas) projects technical service in connection transfer, technology with matching strength, with abovementioned items; consultation, and scale and performance; research, manufacturing, sales technical service; tourism undertaking of survey, and leasing of machinery information consultation; mapping, consultation, facilities, apparatus, component, railway transportation; design, supervision, steel girder, steel structure and property management; projects contracting, building materials designed for real estate development. engineering piles testing civil engineering; temporary and geological disaster passenger and cargo transport prevention projects and related services prior to construction; consultation the formal testing and delivery services in connection for operation of newly-built with abovementioned railways; contracting of overseas businesses; bidding projects and domestic foreign agency business for invested projects in the industry; construction projects, etc. real estate development and operation, resource development, trade and logistics; import and export; counter trade and intermediary trade, etc.

3 Project One Project Two Project Three

III. Major terms and conditions of the contract to be signed

1. Amount of the contract 1.13 2.0 2.6 (RMB100 million) 2. Payment schedule Payments of the project Payments of the project Payments of the project will will be made based will be made based be made based on advance on advance payments, on advance payments, payments, progress payments, progress payments, progress payments, payments on completion and payments on completion payments on completion acceptance, warranty payments and acceptance, warranty and acceptance, warranty and other procedures. payments and other payments and other procedures. procedures. 3. Place of performance Within Hebei Province Within Anhui Province The People’s Republic of Bangladesh 4. Term for performance From the date of signing From the date of signing Phase-I project will open on of the contract to the end of the contract to the end 25 December 2021 and phase- of the project warranty of the project warranty II project will open on 30 April period, of which, the period, of which, the 2023. The defects liability period project execution cycle is project execution cycle is is 1 year and the maintenance approximately 29 months approximately 42 months period is 2 years. From the date and the warranty period and the warranty period of signing of the contract to is 12 months, totaling 41 is 12 months, totaling 54 the end of the project warranty months. months. period, of which, the project execution cycle is approximately 33 months, the defects liability period is 12 months and the maintenance period is 24 months, totaling 69 months.

4 Project One Project Two Project Three

5. Conditions for the The contract shall become The contract shall become (1) The authorized contract to take effect formally effective after formally effective after representatives of both the legal representatives the legal representatives parties have affixed their of both parties or their of both parties or their signatures and the seals for authorized representatives authorized representatives contract or official seals on have affixed their have affixed their the contract; and signatures and official signatures and official seals. seals. (2) As the professional contractor for “communication signaling” under the contracting contract, the appointment of Party B obtained the temporary approval (BR letter No.54.01.0000.631.54. 206.18-5187) from the employer;

(3) The contract has completed filing procedures. The contract shall become effective from the latest date in the above conditions. 6. Contract signing place Beijing Tianjin Dacca, the People’s Republic of Bangladesh

5 II. INFORMATION ON PROJECTS WON IN THE URBAN RAIL TRANSIT MARKET

Project Four Project Five Project Six Project Seven

I. General Information

1. Name of the Signal system Signal system Signal system Signal system engineering project installation project in procurement project in procurement project project in respect of respect of Jinhua-Yiwu- respect of phase I of in respect of phase I Dongyang Urban Rail Nantong Urban Rail project of Shenzhen Line No. 3 Transit Project Transit Line No. 2 Urban Rail Transit Line No. 20 2. Bid originator Jinhua Jinyidong Rail Nantong Urban Rail Group Changchun Rail Transit Transit Co., Ltd. Transit Co., Ltd. Co., Ltd. Group Co., Ltd. 3. A mount of 2.49 1.96 1.75 2.67 the bid won (RMB100 million) 4. Overview of This project has The phase I project of The phase I project of Changchun Line No. 3 the project a total length of Nantong Urban Rail Shenzhen Urban Rail has a total length of 34 107.17 km, with 31 Transit Line No. 2 Transit Line No. 20 km, with 36 stations, 11 stations, including 14 has a total length of has a total length of equipment centralised underground stations approximately 20.9 approximately 8.43 stations, 58 trains, an and 17 elevated stations, km, with 17 stations, km all constructed additional control center, and a rolling stock depot including 7 centralised underground, with an upgraded rolling with three tabling yards. stations and 10 non- 5 stations, including stock depot, a stabling centralised stations, 3 transfer stations. yard and a testing line. and 6 transfer stations. The average distance The existing phase I and In Xingfu Township between stations is phase II has a total length which is located at the 2.02 km, the maximum of approximately 28.53 west side of the line, distance between km, with 31 stations, 9 the project has a Xingfu stations is 4.38 km equipment centralised rolling stock depot (from Airport North stations, 44 trains; the and an integrated base Railway Station to northern extension has (including a testing line Road a total length of 5.47 and a training center), Station) and the km, with 5 stations, 2 and shares a control minimum distance equipment centralised center with Line No. 1 between stations is 0.8 stations and 14 trains. at Tonghu Avenue. km (from Convention South Station to Convention North Station). The Company will be responsible for works including the equipment procurement and integration and coordinating adjustments for the signal system of this project.

6 Project Four Project Five Project Six Project Seven

The Company will The Company will The Company will provide be responsible for be responsible for a signal system solution the signal system works including the which is compatible engineering works procurement and with the CBTC standard including the installation integration of equipment signal system of the and wiring of all for the signal system of northern extension and indoor and outdoor this project. its existing digital track main line signal system circuit for Changchun equipment for main line Line No. 3. The works stations and sections include ancillary projects (including assistant in respect of northern lines, connecting lines extension CBTC, existing and lines for entering or on-board equipment, leaving depots or yards), ATS, power expansion, relevant parts of the graded protection of rolling stock depot and information security, LTE stabling yards (including and other equipment. testing lines, training The Company will be centers and repair and responsible for system maintenance centers) designing, construction and control center. and installation, supply of equipment, plant inspection, training, installation, commissioning, running, after sales service, etc.

7 Project Four Project Five Project Six Project Seven

II. Information of the counterparty

1. Name of the Jinhua Jinyidong Rail Nantong City Rail Shenzhen Metro Group Changchun Rail Transit enterprise Transit Co., Ltd. Transit Co., Ltd. Co., Ltd. Group Co., Ltd. 2. Nature of the State-owned enterprise State-owned enterprise State-owned enterprise State-owned enterprise enterprise 3. Legal Zheng Gongmin Wang Zhi Xin Jie Cao Guoli representative 4. Registered RMB1,000 million RMB3,700 million RMB44,071.36 million RMB3,686.29 million capital 5. Date of 04-07-2016 19-12-2016 31-07-1998 17-07-1998 incorporation 6. Main office 6th Floor, Phase II of 11th Floor, 150-1 Floor 27-31, Metro No. 1305, Anda location the Composite Building, Gongnong South Road, Building, No. 1016, Street, Chaoyang District, No.1299, Guangnan Chongchuan District, Fuzhong 1st Road, Changchun Road, Duohu Street, Nantong , , Jinhua Shenzhen City, Province 7. Major Nantong City State-owned Assets Changchun Urban shareholders Group Co., Ltd. Construction Group Co., Supervision and Public Transportation Ltd. Administration Development Group Co., Yiwu Transportation Commission of Ltd. Tourism Industry Shenzhen Municipal Development Group People’s Government CDB Development Fund Co., Ltd. Co., Ltd.

Dongyang Changchun Urban Transportation Development & Investment Investment Construction Holdings (Group) Co., Ltd. Group Co., Ltd. 8. Principal Investment, construction Construction of city Construction, operation, Rail transit, operation, business and operation and rail transit engineering development and management and related management of rail projects; land comprehensive urban rail passenger transit projects; development. utilization of transport, real estate land acquisition subway and light development and sales, and reserving and rail transportation investment in related development along the projects; investment projects with self-owned rail transit line. and establishment of funds (not allowed to industries (specific engage in financial projects will be reported management, illegal fund- separately); domestic raising, illegal deposit commerce, material absorption, loan, etc.), supply and marketing advertisement design, industry (excluding production, agency, franchise, special release, property services, control, monopoly engineering consulting, commodities); investment information operating advertising consulting. business; own property management consulting and education training of rail transit related business.

8 Project Four Project Five Project Six Project Seven

III. Major terms and conditions of the contract to be signed

1. Amount of 2.49 1.96 1.75 2.67 the contract (RMB100 million)) 2. Payment Payments of the project Payments of the project Payments of project Payments of the project will schedule will be made based will be made based will be made based be made based on advance on upfront payments, on advance payments, on advance payments, payments, payments for progress payments, progress payments, payments on design equipment, payments on payments on completion payments after arrival review, payments completion acceptance, and acceptance and of goods, payments after arrival of goods, warranty payments and warranty payments. on completion and payments on interim other processes. acceptance, warranty acceptance, payments payments and other on completion and processes. acceptance, payments upon submission of settlement documents, settlement payments, payments on final acceptance and other processes. 3. Place of Within Zhejiang Nantong Shenzhen Changchun performance Province 4. Term for From the date of signing From the date of signing From the date of signing From the date of signing performance of the contract to the end of the contract to the end of the contract to the end of the contract to the end of the project warranty of the project warranty of the project warranty of the project warranty period, of which, the period, of which, the period, of which, the period, of which, the project execution cycle project execution cycle project execution cycle project execution cycle is is approximately 24 is approximately 30 is approximately 16 approximately 15 months months and the warranty months and the warranty months and the warranty and the warranty period period is 24 months, period is 24 months, period is 36 months, is 36 months, totaling 51 totaling 48 months. totaling 54 months. totaling 52 months. months. 5. Conditions for The contract shall The contract shall The contract shall The contract shall the contract to become effective become formally become formally become effective after take effect after the contractor effective after the effective after the representatives of both has provided a full legal representatives legal representatives parties have affixed their performance guarantee of both parties or of both parties or signatures and official seals and both parties have their authorized their authorized and the seller has provided affixed their signatures representatives have representatives have a qualified performance and official seals. affixed their signatures affixed their signatures guarantee. and official seals. and official seals. 6. Contract Jinhua Nantong Shenzhen Changchun signing place

9 Project Eight Project Nine Project Ten

I. General information

1. Name of the project General contracting Procurement of Maintenance services project for system special communication outsourcing project for equipment engineering system equipment, and engineering signal and of Xi’an Metro Line 14 communication system communication system (from North Railway integration (No. 3302) equipment of Phase I of Line 17 Station to Heshao Village) (Second Bid) of Foshan and Phases I and II of of Urban Rail Transit Line 3 2. Bid originator CCCC Electromechanical Foshan Urban Rail Transit Chengdu Metro Operation Co. Engineering Co., Ltd. Line 3 Development Co., Ltd. Ltd. 3. Amount of the bid won 1.21 1.53 1.64 (RMB100 million) 4. Overview of the project Xi’an Metro Line 14 The project has a total Routine inspection, maintenance runs from North Railway length of 69.5km, and overhaul (excluding Station to Heshao Village, including an elevated medium maintenance, overhaul with the total length of section of 8.7km, and technical modification 13.65km, all of which lies a transition section of equipment), equipment underground. There are of 1.3km and an monitoring, malfunction eight stations, including underground section of response, guard duty, equipment three interchange stations 59.5km. 37 stations are protection, rectification of and one new parking constructed, including potential hazards, emergency lot. It shares the rolling 4 elevated stations and rescue, flood prevention stock depot and control 33 underground stations, and drill, and debugging of center with Airport of which there are 16 subsequently constructed new Line. The Company will interchange stations. lines for signal, communication be responsible for the There are 1 rolling stock system equipment in the areas following work related depot and 2 parking lots of main line, OCC and rolling to the signal system throughout the route. stock depot and parting lots of equipment of the project: Phase I of Line 17 and Phases the design, design I and II of Line18 of Chengdu liaison, manufacture, Metro (including three stations delivery inspection, and one area), as well as on-site insurance, packaging and investigation, data collection, shipment, transportation, construction control and warehousing, delivery, interface coordination for the installation supervision, communication and signal of the testing, trials, joint bid originator. debugging, safety assessment, acceptance, trial operation, start-up, equipment performance validation, personnel training, provision of spare parts, instruments, meters and tools, warranty period and after-sales services.

10 Project Eight Project Nine Project Ten

The Company will be responsible for the following work related to special communication system of Foshan Urban Rail Transit Line 3: the design liaison, design, manufacture, factory testing, factory acceptance, packaging, supply, transportation, delivery, installation supervision, stand- alone testing, system debugging and field testing, joint debugging, 144-hour continuous testing, inspection of start-up conditions, pre-acceptance, trial operation, final acceptance, personnel training, provision of standard accessories, special tools and instruments and meters, reporting to government agencies for inspection (if any), BIM-related work, communication system integration, and correction of system defects and maintenance during the warranty period.

11 Project Eight Project Nine Project Ten

II. Information of the counterparty

1. Name of the enterprise CCCC Mechanical & Foshan Urban Rail Transit Chengdu Metro Operation Co., Electrical Engineering Line Three Development Ltd. Co., Ltd. Co., Ltd. 2. Nature of the enterprise State-owned enterprise Limited liability company State-owned enterprise (state-controlled) 3. Legal representative Chen Zhongqiu Sun Zhongquan Rao Yong 4. Registered capital RMB833.332 million RMB5,000 million RMB10 million 5. Date of incorporation 2013-04-16 2017-05-12 2010-05-25 6. Main office location Floor 11-12, No.85 De Room 903, A Tower, No. 208 Shuangdian West Sheng Men Wai Street, No. 37 Fenjiang South 1st Road, , Xicheng District, Beijing Road, , Chengdu Foshan 7. Major shareholders China Communications Foshan Railway Chengdu Rail Transit Group Co., Construction Company Investment and Ltd. Limited Construction Co., Ltd. CCCC First Harbour Consultants Co., Ltd. China Railway Group Limited China Road and Bridge China Railway Corporation Construction Corporation Limited China State Construction Engineering Corporation Limited CRRC Group Co., Ltd.

China Communications Construction Company Limited 8. Principal business Construction project Investment, construction Urban (inter-city) rail transit management, general and operation of Foshan operation and management, contracting, engineering Urban Rail Transit Line 3 repair and maintenance of design, goods import and (including simultaneous equipment and facility, and export, agency of import implementation work) development of related system; and export, technology project, domestic trade, consulting and training on import and export, property leasing services, urban (inter-city) rail transit sales of machinery and release and agency of construction and operation; equipment, investment advertising and technical repair and leasing of rail management, project consulting services. transit equipment, engineering investment, engineering machinery and equipment, tools technology research, and instruments and apparatus technology development, (the maintenance of measuring technology promotion, instruments is subject to the technology transfer, approval of license required); technical consulting, new materials, technology technical services, development and technology lease of machinery and transfer, etc. equipment (excluding car rental) and maintenance of mechanical and electrical equipment. 12 Project Eight Project Nine Project Ten

III. Major terms and conditions of the contract to be signed

1. Amount of the contract 1.21 1.53 1.64 (RMB100 million) 2. Payment schedule Payments of the project Payments of the project Payments of the project will be will be made based will be made based made on a quarterly basis on advance payments, on advance payments, equipment payments, progress payments, payments on completion payments after arrival and acceptance, warranty of goods, payments on payment and other the completion of pre- processes. acceptance, payments on the completion of settlement and payments on final acceptance. 3. Place of performance Xi’an Foshan Chengdu 4. Term of performance From the date of signing From the date of signing From the date of signing of the of the contract to the end of the contract to the end contract to the end of the project, of the project warranty of the project warranty totaling 40 months. period, of which, the period, of which, the project execution cycle is project execution cycle is approximately 13 months approximately 41 months and the warranty period is and the warranty period 24 months, totaling about is 24 months, totaling 65 37 months. months. 5. Conditions for entry The contract shall become The contract shall become The contract shall become into force of the formally effective after formally effective after formally effective after the legal contract the legal representatives the legal representatives representatives of both parties or of both parties or their of both parties or their their authorized representatives authorized representatives authorized representatives have affixed their signatures and have affixed their have affixed their official seals. signatures and official signatures and official seals. seals. 6. Contract signing place Beijing Beijing Chengdu

13 III. IMPACT ON THE COMPANY

1. The total amount of bids for the above projects is approximately RMB1,898 million, accounting for approximately 4.56% of the Company’s audited operating income in 2019 under the Chinese Accounting Standards. Given that the above projects will be implemented in phases across years, there are uncertainties as to the impact on the results for 2020. If formal contracts are signed for the above projects and the projects are smoothly implemented, it is expected to have a relatively positive impact on the Company during the implementation period of the projects.

2. The Company has no related relationships with the above tender parties, and the bid-winning of the above projects does not affect the independence of the Company’s business.

IV. POTENTIAL RISKS

The bid-winning of the above projects has been published. Due to the relevant formalities involved, the Company has not signed the relevant formal contracts with the tender parties and uncertainties exist. The final amount, the terms of performance and other details of the above projects are subject to the formally signed contracts. Investors are reminded of the investment risks.

By order of the Board China Railway Signal & Communication Corporation Limited* Chairman ZHOU Zhiliang

Beijing, the PRC, 17 September 2020

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. WANG Jiajie, Mr. CHEN Jin’en, Mr. CHAN Ka Keung Peter and Mr. YAO Guiqing.

* For identification purpose only.

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