Profits soar for China’s largest contractor

China Railway Group saw its gross profit rise +21% to CNY 9,02 billion (US$ 1.32 billion) in the first half of the year, compared to the same period last year. Revenues were up +52% to CNY 142 billion (US$ 20.8 billion).

The company said China's stimulus plan was a major contributor to its growth. Indeed, some CNY 128 billion (US$ 18.7 billion) of its revenues in the first half of the year were derived from infrastructure and construction work. The company's other activities include design and consulting services, property development and the production of engineering components.

China Railway Group signed contracts worth CNY 234 billion (US$34.2 billion) in the first half of the year. These included a major passenger rail project from Hangzhou to Ningbo in China's Zhejiang Province.

China Railway Group is China's largest contractor and was ranked third in this year's edition of iC's ranking of the world's 200 largest construction companies with revenues of US$ 33.8 billion. If its current revenue growth continues, it is likely to overtake Bouygues and claim the global no. 2 spot in next year's ranking and challenge Vinci for the no. 1 spot. Vinci's revenues last year came to US$ 50.5 billion, but the first half of 2009 saw them fall -3.2%. If China Railway Group maintains its +52% growth, its sales for the full year could exceed US$ 51 billion.

For more information on the league table, see the July-August edition of iC. The study is also available to buy from khl.com's information store.