Hong Kong, Apr 29, 2009 - (ACN Newswire) The board of directors of China Railway Construction Corporation Limited ("CRCC" or the "Company"; stock code: 1186) is pleased to announce the Company and its subsidiaries' operating results for the year ended 31 December 2008 ("2008" or "the reporting period"). For 2008, the Company's revenue from operations was RMB219,410.2 million, representing an increase of 27.6% over last year; profit for the year significantly grew by 60.7% to RMB3.7063 billion. The results are upbeat as during the reporting period, profit attributable to equity holders of the Company increased considerably by 58.4% to RMB3,643.8 million, and earnings per share achieved an encouraging record of RMB0.3242 during the reporting period.
As at 31 December 2008, the Group's total assets increased by 40.3% to RMB220,101.5 million over last year; new contract value increased by 47.4% to RMB423,104.6 million year-on-year, including overseas new contract value of RMB42,169.7 million.
CRCC also announced the operating results for the first quarterly results of 2009. The operating revenue was RMB51,330.84 million, representing an increase of 56.08% over the corresponding period of 2008. Net profits were RMB944.58 million, representing an increase of 34.12% over the corresponding period of 2008. The value of new contracts of the Group from January to March 2009 was RMB127.796 billion, representing an increase of 73.66% over the corresponding period of 2008, while the value of new overseas contracts was RMB28.027 billion. Commenting on the Group's performance in 2008, Mr. Li Guorui, Chairman of the Group, expressed "2008 marks an extremely important and exceptional year for the development of CRCC in which CRCC encountered severe challenges and achieved outstanding results. The Group has been facing challenges brought by sharp price increase in raw materials during the first half of 2008 and financial tsunami leading a significant fluctuation in exchange rates, along with the background of great losses incurred by the enterprise due to natural disasters such as the snow storm in South China and the Wenchuan Earthquake. The Company properly tackled the difficulties by leveraging on its creditability and brand image, tightly seizing the favorable opportunity brought about by the boom of the domestic and international infrastructure markets. Following the listings of its shares on the SSE Exchange and the Hong Kong Stock Exchange, CRCC was granted various awards by some most influential financial magazines in Asia such as Finance Asia, Asiamoney and CFO Asia, including the Best Equity Transaction Award, the Best IPO Award and the Transaction of the Year Award for 2008. At the meanwhile, the Company maintained the healthy and continuous development of its productions and operations and realized record-high key economic and technological indicators, also keeping good momentum in domestic operations. In particular, the "Qinghai-Tibet Railway Project" enjoyed the privilege of National Science and Technology Progress Special Award."
In 2008, the revenue from the segment of construction operations of the Group amounted to RMB200,973.3 million, representing an increase of 23.3% from RMB162,932.0 million in 2007; operating profits from segment of construction operations of the Group amounted to RMB3,840.4 million, representing an increase of 6.0% from 2007. New contract value from the segment of construction operations of the Group amounted to RMB399,022.9 million in 2008, accounting for 94.3% of the total new contract value, representing an increase of 50.2% from 2007.
Among which, new contract value for the railway market increased significantly by 212.6% from 2007 to RMB254,099.6 million in 2008, representing approximately 60.1% of the new contracts entered by the Group during the year. The new contract value for highway projects was RMB61,600.0 million in 2008, accounting for 14.6% of the total new contract value of the Group for 2008, representing an increase of 58.7% from last year. The operations of urban track transportations and urban constructions expanded significantly with new contract value increasing by 92.0% and 82.4% from 2007 respectively; real estate constructions also expanded by a relatively large degree with new contract value increasing by 40.9% from last year.
Survey, design and consultancy operations
The revenue from the survey, design and consultancy segment of the Group amounted to RMB4,550.9 million in 2008, representing an increase of 22.7% from 2007; the operating profits from the survey, design and consultancy segment of the Group amounted to RMB354.6 million in 2008, representing an increase of 18.4% from 2007. New contract value from survey, design and consultancy segment of the Group amounted to RMB4,608.9 million in 2008, representing an increase of 26.0% from 2007.
The revenue from the manufacturing operation segment of the Group amounted to RMB4,780.9 million in 2008, representing an increase of 157.6% from 2007; the operating profits from the manufacturing operation segment of the Group amounted to RMB265.2 million in 2008, representing an increase of 112.5% from 2007. New contract value from the manufacturing operation segment of the Group amounted to RMB3,534.2 million in 2008, representing a decrease of 44.1% from 2007. Such decrease was due to the fact that the Group's major customers for large-size road maintenance machinery are the railway bureaus and railway companies affiliated to the Ministry of Railways; and both the time such major customers issue their purchase schedules for road maintenance machinery and the purchase amount have a material influence on the road maintenance machinery business of the Group.
Others (mainly comprises logistics and goods and materials trade, capital investment operations, real estate business, etc.)
During the reporting period, the revenue from the other segment of the Group amounted to RMB12,123.3 million in 2008, representing an increase of 125.5% from 2007; new contract value from the other segment of the Group amounted to RMB15,938.7 million in 2008, representing an increase of 40.2% from 2007, of which, logistics and goods and materials trade business expanded rapidly with new contract value of RMB14,400.0 million, accounting for 3.4% of total contract value and representing an increase of 138.7% from 2007.
The Group mainly conducts its overseas business in Asia (especially the Middle East) and Africa. In 2008, the Group's overseas operating revenue amounted to RMB17,201.8 million, representing a year-on-year growth of 170.5%. Overseas operating revenue accounts for 7.8% of the Group's total operating revenue. CRCC undertook a total of 163 overseas projects with new overseas contract value of RMB42,169.7 million.
Looking forward, Chairman Li expressed, "Financial tsunami will continue to cast a shadow on China's as well as the global economy in 2009, bringing difficulties and challenging environment to the business world. To actively tackle the global financial crisis, the PRC government has implemented certain measures to further expand the internal demand and promote economic growth. Embracing the time of once-in-a-century opportunities, CRCC will capitalize its competitive edges and seize future opportunities, therefore focusing on the following aspects: (1) Seizing opportunities to grow: we shall capture the opportunity of the rapid development of the railway market to continue to expand the scale of its railway operations, also capitalize on the market mechanism to allocate social resources; (2) Driving improvement through optimization: further optimize the industrial structure with a focus on expediting the growth of profitable segments so as to lead to a considerable growth of the market share, increase the contribution proportion of profitable segments to economic benefits, accomplish more vigorous development of overseas operations.; (3) Enhancing control and increase effectiveness: we shall continue to step up its efforts in capital management, centralized procurement of materials and equipment, implement the frame-type construction brigade, responsibility cost management and safety and quality control to ensure the concurrent growth of revenue from operations and effectiveness; and (4) Deepening the reform with a changing mechanism: we shall propel the trial regulated operation of the boards of its subsidiaries, hence establish a science corporate governance mechanism and ensure the sustained and healthy development of the Company, also we shall enhance the performance appraisal and rely on policies and mechanisms to drive the initiative of the entire group. Through the above measures, we are committed to stepping up in operation scale to build ourselves into one of the most competitive construction conglomerates globally, returning more value to shareholders and more contribution to the society."
About China Railway Construction
China Railway Construction Corporation Limited was listed on the Main Board of The Stock Exchange of Hong Kong Limited on 13 March 2008, and is one of the ultra-large integrated construction groups in the world. The Company is principally engaged in fields including construction operations, survey, design and consultancy operations as well as manufacturing operations. Its subsidiaries include China Railway 11th Bureau Group Co., Ltd. to China Railway 25th Bureau Group Co., Ltd., China Railway Construction Group Ltd., China Railway First Survey and Design Institute Group Co., Ltd., China Railway Fourth Survey and Design Institute Group Co., Ltd. and China Railway Fifth Survey and Design Institute Group Co., Ltd. The Company participated in construction of the State's major projects including Qinghai-Tibet Railway, the Shanghai Maglev Demonstration Line and the Qinling Zhongnanshan Tunnel.
Source: China Railway Construction
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