China Railway units win contracts worth RMB 13.92 bln

Sep. 2, 2009 (China Knowledge) - China Railway Group Ltd<601390><0390>, the country's largest railway and highway builder, on Tuesday announced that its subsidiaries have won the bids for several railway and highway projects worth around RMB 13.92 billion.

The company said in a statement filed with the Shanghai Stock Exchange that China Railway No.8 Engineering Group Co won the contracts to build the Lanzhou-Guangyuan railway and the supporting projects worth RMB 3.32 billion.

A consortium comprised of China Overseas Engineering Group Co Ltd, China Railway Tunnel Group and other relevant companies won the contracts to build segment A and segment C of A-2 highway in Poland. The contract value totaled US$450 million.

The value of the above contracts and other six projects the firm recently obtained represents 5.93% of China Railway's operating revenue of 2008 based on Chinese accounting standards.

According to the company's interim result released last week, the company's net profit rose 60.86% from a year earlier to RMB 3.09 billion in the first half of this year. The value of new contracts signed during the period rose 43% year on year to RMB 257.04 billion.