China Railway wins RMB 9.5 bln contract
China Railway Group Ltd<601390><390>, the country’s largest railway and highway builder, announced on Friday that it has clinched a build-transfer contract worth around RMB 9.5 billion (US$1.39 billion) with Shenzhen Metro Co Ltd for the City’s No. 5 subway line, which is expected to further boost the company’s profitability.
The value of the contract accounts for 5.26% of China Railway’s operating revenue in 2007 under Chinese accounting standards, according to the company’s filing with the Shanghai Stock Exchange.
China Railway said the final contract price will be determined by Shenzhen municipal government, adding the project is expected to be completed within 42 months. No further details were given.
In addition, the railway and highway builder last week announced that its subsidiaries had secured five construction contracts worth RMB 3.067 billion in total, which is equivalent to 1.71% of its operating revenues last year, according to reports.
China has more than 75,000 km railway, of which two thirds, plus 95% of electrization lines, are built by China Railway. The company expects to generate RMB 210 billion (US$30.6 billion) of revenue in 2008, up 16% from a year earlier.
Tags: Railway