China Railway Construction Corporation(中国铁建)

Fast facts

Year Founded
2007
HQ Location
Beijing, China
Publicly Traded?
Yes
Overseas Operations
Yes
US Sanctions
Yes
Military Affiliation in China
Yes

Revenue

USD 139.4 B

Valuation

USD 14.9 B
*Valuation is reported as market capitalization. It was converted from HKD using the exchange rate from June 26, 2022 13:48:23.

Employees

286,242

China Railway Construction Corporation (CRCC) is one of the biggest construction companies in China. Founded in 1948 as the railway arm of the People’s Liberation Army, CRCC was moved under the Ministry of Railways in 1982 and ultimately listed on the Shanghai and Hong Kong Stock Exchanges in February 2008, though its IPO struggled due to poor timing with the Global Financial Crash. Since then, the CRCC has diversified its overseas operations beyond just Africa and has taken advantage of the construction opportunities generated by China’s Belt and Road Initiative, making it one of the perennial top 3 global contractors. It is under the administration of the State-owned Assets Supervision and Administration Commission of the State Council of China (SASAC). In November 2020, CRCC was listed by the U.S. Department of Defense as one of the companies with military ties in China, which banned it from receiving U.S. investments. In June 2021, the Biden Administration continued these sanctions.

The owners listed are for China Railway Construction Corporation Limited. The group company, China Railway Construction Corporation, is 100% owned by State-owned Assets Supervision and Administration Commission of the State Council.

  • Wang Jianping (汪建平) - Chairman, Executive Director and Secretary of the Communist Party Committee
  • Zhuang Shangbiao (庄尚标) - Executive Director and President, Deputy Secretary of the Communist Party Committee
  • Chen Dayang (陳大洋) - Executive Director and Deputy Secretary of the Communist Party Committee
  • Liu Ruchen (劉汝臣) - Executive Director
  • Wang Huacheng (王化成) - Independent Non-Executive Director
  • Sun Dinghua (Patrick) (辛定華) - Independent Non-Executive Director
  • Cheng Wen (承文) - Independent Non-Executive Director
  • Lu Xiaoqiang (Amanda) (路小薔) - Independent Non-Executive Director
  • Cao Xirui (曹錫銳) - Chairman of Supervisory Committee
  • Liu Zhengchang (劉正昶) - Supervisor
  • Kang Fuxiang (康福祥) - Employee Supervisor
  • Wang Xiuming (王秀明) - Chief Accountant
  • Li Ning (李寧) - Vice President
  • Wang Wenzhong (汪文忠) - Vice President
  • Liu Chengjun (劉成軍) - Vice President
  • Wang Lixin (王立新) - Vice President
  • Ni Zhen (倪真) - Vice President
  • Zhao Dengshan (趙登善) - Secretary to the Board

China Railway Construction Corporation Limited (CRCC) has joined the United Nations Global Compact Organization, with overseas operations in nearly 100 countries and regions. It provides services in 47 Africa countries, 41 Asian countries and regions, 11 European countries, 21 American countries and 10 Oceania countries. CRCC “vigorously” pursued overseas expansion in line with the 13th Five-Year Plan. The value of newly-signed contracts for overseas business amounted to RMB 232.8 B, accounting for 9.11% of the total value of the newly-signed contracts but representing a 13.53% decrease from 2019. In 2020, overseas operations generated RMB 38.7 B in revenue and a profit margin of 10.31%, down 0.85% from 2019.

China Railway Construction Corporation Sanctions

While at this time it appears that this company is not the subject of any U.S. or other global sanctions, it is important to note that Chinese companies tend to have more opaque organizational structures than their Western peers. Chinese companies' affiliated brands, operating units, and overseas subsidiaries are not always obvious or even identifiable. Given this, a Chinese company may not be the subject of sanctions, but one of its subsidiaries may be, thus making it difficult to accurately ascertain a company's full sanctions status.

China Railway Construction Corporation was listed as a Communist Chinese military-tied company by the U.S, Department of Defense and Trump Administration signed an order to ban investments towards companies linked with Chinese military. The Biden Administration subsequently upheld these sanctions.

China Railway Construction Corporation Reputational Disclosures

August 2020 – CRCC Chairman Chen Fenjian committed suicide by jumping off a building, one day after the state reportedly completed its investigation into the company, including a corruption probe. The CRCC website was down for ten days after the suicide and shares dropped 10% in the immediate aftermath.

In June 2019, CRCC debarred by the World Bank for fraudulent practices during the procurement process of a project in Georgia.

CRCC and its subsidiaries are frequently fined modest amounts for environmental violations.