China Railway Construction Corporation Explained

China Railway Construction Corporation should not be confused with China Railway Engineering Corporation.

China Railway Construction Corporation Limited
Type:State-owned enterprise
Foundation:1948
1990 (holding company)[1]
2007 (listed company)
Location City:Beijing
Location Country:China
Key People:Chairman

Fengchao Meng

Area Served:Worldwide
Industry:Construction
Products:Railways
Services:Railway infrastructure
Revenue: (2017)[2]
Operating Income: (2017)
Net Income: (2017)
Assets: (2017)
Equity: (2017)
Num Employees:261,333 (2017)
Parent:CRCCG
Subsid:CCECC (100%)
Owner:CRCCG
Module:
Child:yes
China Railway Construction Corporation Limited
S:中国铁建股份有限公司
T:中國鐵建股份有限公司
Showflag:stp
P:Zhōngguó Tiějiàn Gǔfèn Yǒuxiàn Gōngsī
Collapse:no
Order:st

China Railway Construction Corporation Limited (abbreviated CRCC) is a listed construction enterprise based in Beijing, China, that was the second largest construction and engineering company in the world by revenue in 2014.[3]

The limited company was incorporated in 2007 in order to float the assets of China Railway Construction Corporation [Group] (CRCCG,, or the holding company) in Shanghai and Hong Kong stock exchange. CRCCG retained some assets which was deemed not suitable to float in the stock exchange.

Following the 2022 Russian invasion of Ukraine the company continued doing business in Russia, including discussing building a tunnel to Crimea. For this reason Ukraine listed CRCC as an International Sponsors of War.

Corporate structure

CRCCG is under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council. Since February 2008, A shares and H shares of CRCC are listing on the Shanghai and Hong Kong stock exchanges.

The financial report of the parent company (holding company) is not disclosed. As both parent and subsidiary share almost the same English name, one without the word "Limited" (they have different names in Chinese), the business activities of the holding company was often incorrectly mixed up with the publicly floated limited liability subsidiary by the media.

Subsidiaries of CRCC

History

Founding

Formerly the railway arm of the People's Liberation Army (found 1948 and became part of the Ministry of Railways from 1982). Along with China Railway Engineering Corporation, both railway construction super conglomerates were under the Ministry until 2000. The company maintains links to the People's Liberation Army.[4]

In 2003, China Civil Engineering Construction Corporation, another former entity of the Ministry of Railways, was assigned to China Railway Construction Corporation as its subsidiary.

IPO

In preparation for listing, China Railway Construction Corporation Limited was incorporated in 2007 as a joint-stock company with limited liabilities which received most of the assets of the parent company.[5] 5 Build-operate-transfer projects were not included, namely Chongqing Tiefa Suiyu Highway, Nanjing Yangtze River Tunnel, Beijing Tongda Jingcheng Highway, Xianyang Zhongtie Road and Bridge and Guangdong Chaojie Highway. Later on in 2015 CRCC bought Chongqing Tiefa Suiyu Highway from the parent company, while 20% was retained by Chongqing Expressway Co., Ltd.[6]

The company premiered on the Shanghai and Hong Kong in February 2008, raising US$5.7 billion, making the second largest IPO of that year. The performance was poorer than expected because of poor investment atmosphere from United States subprime mortgage crisis and China's economic macro-control.

U.S. sanctions

In November 2020, Donald Trump issued an executive order prohibiting any American company or individual from owning shares in companies that the United States Department of Defense has listed as having links to the People's Liberation Army, which included China Railway Construction Corporation.[7] [8] [9]

Projects

Domestic

CRCC has built much of the transportation infrastructure in China including high speed rail, subways, and expressways.

Asia

Middle East and North Africa

Europe

Africa

Other business areas

The main business activity of the company is in construction and engineering but it is also engaged in real estate development and copper mining.

Notes and References

  1. Web site: http://www.crcc.cn/g306.aspx. zh:中国铁建股份有限公司概况. Brief summary of China Railway Construction Corporation Limited. zh. 6 June 2015. https://web.archive.org/web/20150310143406/http://www.crcc.cn/g306.aspx. 10 March 2015. dead.
  2. Web site: Archived copy . 2019-02-15 . https://web.archive.org/web/20181022172332/http://english.crcc.cn/module/download/downfile.jsp?classid=0&filename=dda336e6a1cd4d388f19fdd8718f0370.pdf . 2018-10-22 . live .
  3. News: ENR Top 250 Global Contractors. Engineering News Record. 2014. 2015-07-30. https://web.archive.org/web/20150728163905/http://enr.construction.com/toplists/Top-Global-Contractors/001-100.asp. 2015-07-28. live.
  4. Web site: Allen-Ebrahimian. Bethany. 2020-06-24. Defense Department produces list of Chinese military-linked companies, 20 years after mandate. 2020-06-24. Axios. en. 2020-06-25. https://web.archive.org/web/20200625220923/https://www.axios.com/defense-department-chinese-military-linked-companies-856b9315-48d2-4aec-b932-97b8f29a4d40.html. live.
  5. http://www.hkexnews.hk/listedco/listconews/sehk/2008/0229/01186_295219/C118.pdf 與中鐵建總公司的關係
  6. Web site: Connected Transaction Acquisition of Equity Interest in Chongqing Tiefa Suiyu . 2015-06-07 . https://web.archive.org/web/20160305011508/http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0211/LTN20150211595.pdf . 2016-03-05 . live .
  7. News: Chen . Shawna . November 12, 2020 . Trump bans Americans from investing in 31 companies with links to Chinese military . . November 12, 2020 . October 28, 2021 . https://web.archive.org/web/20211028203620/https://www.axios.com/china-military-trump-investments-ban-a0458e29-2245-4bde-920b-d1c6bc698370.html . live .
  8. News: Pamuk . Humeyra . Alper . Alexandra . Ali . Idrees . 2020-11-12 . Trump bans U.S. investments in firms linked to Chinese military . en . . 2020-11-12 . 2021-10-28 . https://web.archive.org/web/20211028175811/https://www.reuters.com/article/us-usa-china-securities-exclusive-idUSKBN27S2X3 . live .
  9. News: Swanson . Ana . 2020-11-12 . Trump Bars Investment in Chinese Firms With Military Ties . en-US . . 2020-11-13 . 0362-4331 . 2020-11-13 . https://web.archive.org/web/20201113000328/https://www.nytimes.com/2020/11/12/business/economy/trump-china-investment-ban.html . live .
  10. News: Now Chinese firm on the scene. Daily Star. August 26, 2014. July 27, 2015. https://web.archive.org/web/20150703130403/http://www.thedailystar.net/now-chinese-firm-on-the-scene-38757. July 3, 2015. live.
  11. Web site: Royal Railway on track to modernisation. Amarthalingam. Sangeetha. May 17, 2019. Capital Cambodia. April 7, 2022. September 18, 2020. https://web.archive.org/web/20200918100920/https://capitalcambodia.com/royal-railway-on-track-to-modernisation/. live.
  12. Web site: Chinese team ready to begin study on railroad revamp. Vannak. Chea. May 10, 2019. Khmer Times. June 30, 2022.
  13. News: CRCC reports booming overseas contracts. China Daily. October 20, 2007. July 27, 2015. https://web.archive.org/web/20160305032954/http://www.chinadaily.com.cn/business/2007-10/20/content_6193101.htm. March 5, 2016. live.
  14. News: Chinese company wins Egyptian track upgrading contract. International Railway Journal. April 15, 2015. July 30, 2015. https://web.archive.org/web/20150926144920/http://www.railjournal.com/index.php/track/chinese-company-wins-egyptian-track-upgrading-contract.html. September 26, 2015. live.
  15. News: World rail market March 2009. 2009-03-08. Railway Gazette International. 3 March 2010. https://web.archive.org/web/20110616034919/http://www.railwaygazette.com/news/single-view/view/world-rail-market-march-2009.html. 16 June 2011. live.
  16. http://www.hkexnews.hk/listedco/listconews/SEHK/2011/0121/LTN20110121557.pdf Connected Transaction: Signing of the Agreement on the Arrangement of Matters in Relation to the Mecca Light Rail Project and Resumption of Trading
  17. News: Turkey's new high-speed rail: victory for Erdogan – and China. Global Construction Review. July 29, 2014. August 2, 2015. https://web.archive.org/web/20150910074522/http://www.globalconstructionreview.com/news/turkeys-new-high-speed-rail-victory-erdogan0938346/. September 10, 2015. live.
  18. News: Китайским инвесторам предложили построить линию метро до Коммунарки . Russian . Moscow Complex for Construction and Urban Development . 2014-04-20 .
  19. News: Chinese firms to build Moscow's new subway . Global Construction Review . 2014-05-21 . 2021-03-08 . 2020-08-04 . https://web.archive.org/web/20200804084911/https://www.globalconstructionreview.com/sectors/chinese-firms-build-moscows-new-subway/ . live .
  20. News: Китайцы идут валютным курсом . Moscow Complex for Construction and Urban Development. 2016-05-10.
  21. News: Около 500 китайских инженеров приедут в Москву для строительства метро . Russian . Moscow Complex for Construction and Urban Development . 2017-02-14 .
  22. Web site: Китайская корпорация CRCCI подписала контракт на строительство ключевой национальной автомагистрали в России. Жэньминь Жибао. 2021-03-08. 2020-10-06. https://web.archive.org/web/20201006143024/http://russian.people.com.cn/n3/2020/0924/c31518-9763940.html. live.
  23. News: CRCC-built Benguela Railway in Angola inaugurated. Want China Times. February 18, 2015.
  24. News: Mali signs $1.5 bln rail deal with China Railway Construction. Reuters. December 26, 2015. June 30, 2017. https://web.archive.org/web/20161216155532/http://www.reuters.com/article/mali-china-cn-railway-const-idUSL8N14F06320151226. December 16, 2016. live.
  25. News: Senegal - Mali railway modernisation agreements signed. Railway Gazette. January 5, 2016. January 6, 2016. https://web.archive.org/web/20160107223003/http://www.railwaygazette.com/news/infrastructure/single-view/view/senegal-mali-railway-modernisation-agreements-signed.html. January 7, 2016. live.