China Railway 2007 profit nearly doubles on building boom
China Railway Group Ltd, China’s largest railway and construction contractor, on Thursday published its 2007 annual report, saying its profit nearly doubled from a year earlier thanks to the building boom in the world’s fastest-growing major economy.
Net profit for last year, based on Chinese accounting standards, surged 92.2% to RMB 3.16 billion (US$452 million) or RMB 0.24 per share. Its revenue amounted to RMB 180.5 billion, a yearly increase of 13.2%, according to its annual report filed to the Shanghai Stock Exchange.
The remarkable growth comes as the Chinese government invests generously in railway and infrastructure constructions. Last year, investment in railway building hit a record high of more than RMB 250 billion, the statement revealed.
China planned to invest a total of RMB 3.8 trillion in transport infrastructure construction in the 11th Five-Year Period (2006-2010), company chairman Shi Dahua said, and this will surely bring a lot of opportunities for China Railway.
Meanwhile, the company also admitted that there are rising challenges such as increasing raw material prices, fiercer competition and uncertainties over global economy.
The company launched its IPO in both Shanghai and Hong Kong last November, raising RMB 21.9 billion and HK$21.4 billion respectively.
Tags: economy, investment, Railway