China State Construction Engineering Corporation Limited_Corparte Profile

China State Construction Engineering Corporation Limited

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CSCEC at a Glance:

China State Construction Engineering Corporation Ltd (in short: China Construction; Stock code:

601668), formally established on December 10, 2007, was co-initiated by four Fortune Global 500

enterprises: China State Construction Engineering Corp. (CSCEC), China National Petroleum

Corporation (CNPC), Baosteel Group Corporation Ltd and Sinochem Corporation. China

Construction was successfully listed in Shanghai Stock Exchange on July 29, 2009.

China Construction has inherited all superior assets and corporate culture of CSCEC, with its

business covering housing construction, international contracting, real estate development and

investment, infrastructure construction and investment, prospecting and design.

China Construction is Chinas largest construction and real estate conglomerate and biggest

building work contractor. It is the largest transnational construction company in the developing

countries and the top home builder in the world, taking the long lead of Chinas international

contracting business. China Construction is well known in the world for undertaking super high-

rise, grand scale, cutting-edge and novel projects and has built up a great number of landmark

projects in China and around the world. Such business concept and brand image of China

Construction as Providing Excellent Services across all Continents with Superior Quality as the

Top Priority is universally acknowledged and commended.

China Construction is one of the most integrated construction and real estate conglomerates in

China with the longest history of specialized operation and market-oriented management. It is

the only construction enterprise in China certified for 3 top grade Qualifications of general

contracting for building works, municipal public works and highway works, in addition to 1+4

qualifications and first-grade qualification for engineering design of building industry.

China Construction always regards scientific management and scientific and technical progressing

as the engines for its sustainable development. By the end of 2013, it has won 60 State Scientific

and Technological Progress Awards and 45 Tien-yow Jeme Civil Engineering Prize. It owns 141

National Construction Methods and 4396 authorized patents, of which, 333 patents being of


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invention. Other achievements made are such as compiling 57 national and industrial standards,

organizing the examination and acceptance of

64 demonstration projects for technical promotion, and undertaking 108 national scientific

research tasks supported from the state with the fund amounting to some 520 million yuan.

Established in both domestic and international markets, China Construction operates in more

than 20 countries and regions around the world and, in China its business spreads all over the

territory except in Taiwan. The main business of the company covers such fields as building

construction, international contracting, real estate development and investment, infrastructure

construction and investment, prospecting and design, all in the leading position in their respective

fields.

In building construction, China Construction, positioning itself at high-end market, persists in the

marketing strategies of reputable clients, reliable markets and remarkable projects and to

compete at low cost and to manage with high quality. Through constant exploitation of its own

potentialities, strict control of production cost and work quality and seeking of customers

satisfaction, the company provides its clients around the world with quality works and perfect

service at international standard. China Construction has completed a large number of classic

projects including public works, offices, airports, hotels, education works, sports facilities, housing,

medical works, embassies, industrial works, national defense and military works, etc.

In international contracting, China Construction is the largest international contractor and also the

first to launch international contracting in China. Over 30 years, the company has achieved, by the

end of 2013, its total contract value for overseas business of US$80.7 billion and total turnover of

US$52.4 billion. China Construction has so far completed over 5,600 projects in some 116

countries and regions around the world, with the figures leading all other Chinese international

contractors in terms of the contract value, turnover and profit.

In property investment and development, China Construction is one of the largest real estate

conglomerates in China. It owns two significant professional sub-brands, namely China Overseas

Property and China Construction Property. China Overseas Property is one of Chinas most

valuable brands, standing in the leading position of property business. China Construction

Property endeavors to be one of the top quality housing providers in China and has been


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successful in integrating construction contracting with property development.

In infrastructure development and construction, China Construction is the beginner but the

fastest-growing enterprise. It has successfully entered into the markets of railways, super-large

bridges, highways and urban rail transportation. So far, the company has undertaken a number of

infrastructure projects with extensive influence at home and abroad including railways, highways,

bridges, tunnels, airports, ports, power plants, etc.

In design and prospecting, China Construction is one of the largest integrated groups engaged in

architectural design, urban planning, project prospecting and design for municipal utility works.

In 2009China Construction restructured seven of its Grade-A prospecting and design

subsidiaries and established China Construction Engineering Design Group Corporation Ltd

(China Construction Design). The subsidiaries are all leading their business in Chinas major

economic areas where they locate. China Construction Design Group is in possession of 8,381

professionals of architectural design, urban planning, project prospecting, etc, of whom, there are

1 academician, 5 prospecting and design masters and some 1,735 licensed professionals. The

Group has completed a great number of classic works of prospecting and design in China and

around the world. By the end of 2013, a total of 1,640 prizes of all kinds have been awarded.

History

The CSCEC was founded in 1957 as a state company. Early on the country had an international

profile building heavy industry and infrastructure in Asia, Africa, and the Middle East. The

predecessor company opened its first overseas office in Kuwait in the late 1970s. The company

broke from its regionally confined work pattern when it entered the U.S. market in 1985, opening

an office in Atlanta. The U.S. subsidiary began by building housing developments with joint

venture partners before undertaking its first sole development, Lantana Lakes, a 107-acre, $27

million complex of 42 homes, in 1987 in Jacksonville, Florida.

With the encouragement of the Chinese government and financing assistance from the Export-

Import Bank of China, CSCEC has taken increasingly bold steps as a builder and investor of

overseas projects. In 2011, the going abroad trend hit a new high when Baha Mar Resorts, a $3.4


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billion casino and resort built and partially owned by CSCEC, opened after "extremely aggressive"

efforts by the company to link with the Bahamas developer that started the project. It was the

largest construction project undertaken by a Chinese company outside of China.

Corporate Structure

The CSCEC has numerous branches or subsidiaries. It is divided into five main divisions and twelve

traditional core business areas, including eight Group's engineering offices and four Design

Institutes, as well as its own national research laboratory. The main business units of the group

are planning and design, project development, equipment leasing, trade, construction and

facilities management.

Its subsidiary and listed company, China State Construction Engineering Corporation Limited

(Chinese: ) (SSE: 601668), was established in 2007. It was listed on the

Shanghai Stock Exchange in 2009 with its IPO price at RMB$4.18 per share. The shares closed at

RMB$6.53, 56% higher than its IPO price, at the first trading day. It was the world's biggest IPO in

2009, raising the capital of US$7.3 billion.

Scope of Business

Building Works

China Construction is the largest home

builder in the world and the largest

contractor of building works in China. It is

one of the top construction and real estate

conglomerates in China with the longest

history of specialized operation and market-

oriented management. China Construction

carries out its business operations covering

building construction, international


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contracting, real estate development and investment, infrastructure construction and

investment and design and prospecting, having the most qualifications of all grades

among all construction enterprises in China. Being in the lead position of building works

in China and the world, the company is dedicated to render a complete service to its

customers at home and abroad of design and construction of high-rise and cutting-edge

projects.

China Construction and its subsidiaries

have owned or held business qualifications

of all kinds totaling 723, which include

construction, prospecting, design, project

supervision, quantity surveying, etc. Among

them are 16 top grade Qualifications for

general contacting of building works, 1 top

grade Qualification for general contracting

of highway works, 1 top grade Qualification

for city utility works, 597 construction

qualifications and 110 prospecting and

design qualifications. China Construction is

certified for the top grade Qualifications for

general contracting of building works,

highway works and municipal public utility

works. It is the only construction enterprise in China certified for all 3 top grade

Qualifications, as well as for 1+4 Qualifications and Grade A Qualification for the

construction design. China Construction leads the national construction industry on the

ranking of the qualifications.


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In 2011, the contract value for building works is 722.3 billion yuan, which is 77.6% of the

total new contract value, achieving year-on-year increase of 14.2%. The operation revenue

for buildings works is 367.9%, which is 76.2% of the total revenue, gaining year-on-year

growth of 38.5%.

By the end of 2011, China Construction has been awarded 163 Luban Prize and 174

Prize for Working on Luban Project.

From the early time of New China to the 1970s, a great number of national key projects

had been built up by the predecessor of the company, such as Changchun First

Automobile Factory, Changchun Second Automobile Factory, Daqing Oil Refinery Plant,

etc. During 1980s and 1990s, the Shenzhen Speed created in the course of working on

Shenzhen International Trade Building and Diwang Building has gone down in Chinas

construction history. Since 21st century, we have built Shanghai World Financial Center,

known as Chinas No.1 Building. Other landmark projects are New CCTV Building, famed

as Architectural Marvel by Times magazine, National Swimming Center, also known as

Water Cube, one of Beijing Olympic Games projects, Shenzhen Airport, Kunming Airport,

World Trade Center-Phase 3 (No. 1 building in Beijing), Guangzhou International Financial

Center-West Tower (No.1 building in Southern China), Wuhan Greenland Center (No.1

building in Central China) and Shenzhen Pingan Financial Center (Chinas No. 1 building

under construction).

Infrastructure

CSCEC has become a main power in the investment and construction of infrastructure in

China. Great achievements have been made in such infrastructure sectors as highways,

railways, city works, water works, energy, petrochemical, hydroelectricity, environmental

protection, energy conservation and telecommunication. The Company persists in the


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sustainable development concept of energy saving, environment protection and green

building and focuses on high quality and high value development.

CSCEC boasts to be a super large

enterprise enjoying the fastest

development in the field of infrastructure

investment and development in China. It

enters the worlds top 100 powers of

Fortune Global 500 Enterprises in 2012.

Not only has it the advantages of

technology, manpower and

management, but also it has gone

through rapid development in such

sectors, at home and abroad, as

highways, railways, city works, bridges &

tunnels, water works, environmental

protection, petrochemical works, hydroelectricity, energy conservation, etc.

In addition, with its powerful capital

capability, it has grown to be a first class

developer in China in infrastructure

investment and finance, and has won the

trust in such high-end sectors as BT, BOT,

BOO, PPP and EPC. In July 2009, CSCEC was

publically listed with its main business as a whole and became globally the largest IPO

that year. A sum of 50 billion yuan was raised one time, 36% of which amount has been

put on infrastructure operations. Infrastructure is regarded as an important pillar industry


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for CSCEC which achieves new contract value

in 2012 of 200 billion yuan. In China, it has

established long term strategic cooperative

partnerships with provinces and municipalities

such as Beijing, Shanghai, Guangzhou, Tianjin,

Chongqing, Shangdong, Guangxi, Hebei,

Jiangxi, Hunan, Hubei, Xinjiang, etc. In its

overseas operations, CSCEC has been carrying out infrastructure works in countries and

regions all over North America, Central America, Hong Kong & Macao, Southeast Asia,

North Africa, Central & Western Africa, Southern Africa, Middle East, Central Asia, etc.

The fast developing CSCEC has conducted

simultaneous undertakings in the investment

and construction of infrastructure and has

done through investment a great number of

national and regional key projects in China,

which include Taiyuan-Zhongwei Railway

Project, Beijing-Harbin Expressway, Shanghai-

Hangzhou Expressway, Wu Huang Intercity

Railway, Nanjing South Station, New Wuhan

Railway Station, Beijing Capital International

Airport, Guangzhou New Baiyun Airport,

Chengdu Shuangliu International Airport,

Tianjin Yongding Xinhe Bridge, 3rd Hanjiang

Bridge of Hubei, Sahuan East Road Overpass of Daqing, Jilin Songyuan Bridge, Suqian

Bridge at Beijing-Hangzhou Grand Canal, Subway Line No.9 in Shenzhen, City Subway


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Lines in 15 cities, such as Beijing, Shenyang, Nanjing, etc., Shannxi Hongjingzi Tunnel,

Qinling Tunnel of Lanshang Expressway, Shanxi Yanjialing Tunnel, Daya Bay Nuclear Power

Station, Aoling Nuclear Power Station, Taishan Nuclear Power Station, Daliang Hongyanhe

Nuclear Power Station, Shenhua Coal Gangue Power Plant in Inner Mongolia, Beijing

Qinghe Sewage Treatment Plant, Chongqing Jiguanshi Sewage Treatment Plant, Chengdu

Sewage Treatment Plant, Qingdao Dongjiakou Port, etc.

With its rapid growth of investment and

finance on infrastructure projects, CSCEC has

constructed, with the accumulated

investment of tens of billions of yuan, key

infrastructure projects of large numbers,

namely, Tangshan Binhai Avenue, Changsha

two belt and one tunnel, Yunnan Shisuo

Expressway, Wuhan 2nd & 4th Ring Roads,

Wuxian-Wuhan Highway, Shahu Passageway,

Jilin Jiangwan Bridge, Xiangfan Han River 3rd

Bridge, Chongqing Jiangjin Yangtze River

Bridge, Western Square of Taiyuan South

Station, Jinan Transportation Hub, Jin-Qin

Tran

sportation Hub, Changchun Transportation Hub, Hangzhou Transportation Hub, Nanning

and Guilin Integrated Infrastructure Works, Dongjiakou Harbor Breakwater of Qingdao,

etc. CSCEC is also empowered to run Nanjing 2nd Yangtze River Bridge, Nanchang Bayi

Bridge, Laizhou Harbor, Shenyang Huanggu Thermal Power Plant, Nanning Bridge Road,

Shanxi Yangyu Expressway, Xingtai Water Works, etc.


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CSCEC holds fast to the belief of internationalized development and correctly catches

hold of market opportunities. It has successfully opened up the markets of highway,

railway, bridge and tunnel, water conservancy, water works, petrochemical, power plant,

etc. Significant landmark projects have been undertaken including Hong Kong New

Airport, Guangzhou-Shenzhen-Hong Kong Express Railway, Hong Kong Eastern and

Western Railway, Hong Kong Disneyland, Hong Kong Tsing Ma Bridge, Central-Wan Chai

Bypass-Causeway Bay Shelter Tunnel, Kowloon South Link Tunnel, Tunnel Works between

Mei Foo to Yen Chow Street, West Kowloon Reclamation, Alexander Hamilton Bridge of

USA, Baha Mar Cable Beach Resort Project of the Bahamas, Congo (Brazzaville) No.1

National Highway, Boumediene International Airport of Algeria, Mauritius New Airport,

RAMA VIII Bridge of Thailand, The Emirates Road in the UAE, etc.

Design & Survey

China Construction Engineering Design

Group Corporation Ltd, a subsidiary of

China State Construction Engineering

Corp Ltd, is the largest project design and

prospecting group in China, which

consists of 7 large designing and

prospecting businesses with Grade A

Qualifications. It has its markets

distributed to every corner of Chinas

major economic areas where it stands in

the leading position of the design

industry.


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The Group is in possession of 7,500 professionals of architectural design, urban planning,

project prospecting, etc, of whom, there are 1 academician, 6 prospecting and design

masters and some 1,570 licensed professionals.

In 2012, The Group ranks No.13 of Top 100

national prospecting and design

businesses in their operation revenues and

No. 59 in 2012 ENR Top 150 Global Design

Firms, leading Chinese civil building

design enterprises. Well equipped and

widely operated, the Group has arrived at

world leading level in various professional

fields in China and around the world and

has completed a great number of

influential prospecting and design works,

including Chongqing Yuanjiagang Sports

Center, Shannxi History Museum, Tibet

Museum, Three Gorges Museum, Sacrifice

Hall of Mausoleum of Yellow Emperor,

Datang Furong Garden, Dalian World

Financial Center, Dalian Shangri-la Hotel,

Shenzhen International Convention and

Exhibition Center, No.1 Hospital of Beijing

Medical University, terminal buildings of

such international airports as Shenzhen,

Chongqing, Chengdu, Shenyang, Xian and

Zhengzhou, Prospecting Works of Sichuan


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TV Tower, Foundation Works of Thermo

Treatment Workshop of China No.2

National Heavy Machinery Group,

Lanzhou Urban Water Supply Works,

Xinjiang Kuerle Water Supply Works,

Beijing Mentougou New City Urban

Design, Xi'an International Horticultural

Exposition, etc. It places in the leading position in China in terms of airport, hotel, sports

building, fair and expo works, historic building, etc. In addition, the Group has undertaken

a number of overseas design works, such as China Cameroon Palace of Culture, Moi

International Sports Centre of Kenya, Foreign Ministry Building of Algeria, Malabo

International Conference Center of Equatorial Guinea, Water Diversion Project of Ghana,

etc. By the end of 2011, a total of 1,600 prizes of all kinds have been awarded, of which,

as many as 40 are national prizes. Having complied and getting involved in writing some

100 industry standards, the Group has contributed a lot to the development in the respect

of original design, technological renovation and standard and specification.

Real Estate

CSCEC is the first Chinese company

engaged in transnational real estate

business, starting its property

development in Hong Kong, USA,

Southeast Asian Countries, etc in 1980s.

Its real estate operation in Hong Kong

was later extended back to the Mainland

of China, enabling CSCEC to be the first developer of commercial buildings in Mainland

China and to have built up a leading real estate brand in China - China Overseas Land &


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Investment Ltd . In order to keep a further growth of its overall market share and

optimizing of its industrial restructuring, CSCEC conducted an adjustment of its domestic

real estate business in 2008 and established China State Construction Land, a property

brand running side by side with China Overseas Land & Investment Ltd .

China State Construction Land is currently in operation in some 30 cities and

municipalities such as Beijing, Tianjin, Shanghai, Guangzhou, Shenzhen, Xian, Chengdu,

Wuhan, Jinan, Changsha, Urumqi, etc, which locate in such five areas as annulus Bohai,

Yangtze River Delta, Zhujiang Delta, Central Region and Western Region. As of the end of

2011, the company has a land reserve of 27.6 million sqm, ranking No.5 of Ranking List

of China Real Estate Brand Value with its brand value of 7.053 billion yuan.

China State Construction Land makes full use of the advantage of CSCEC Group and has

formed four business links, namely, integrated urban development, residential property,

commercial property and affordable housing. It is a practitioner of scaled-operation

mode, under which, values are to be created for cities, customers, society and

shareholders.

At present, China State Construction Land

has been involved in such integrated urban

development projects as Xian Daming

Palace, Changsha Mexihu, etc. In residential

property, the projects developed include

Redwood Valley and Metro Harbor in

Beijing, Grand Mansion in Shanghai, Binhai

No.1 in Tianjin, Kaiyuan No.1 in Xian, Tangxunhu No. 1 in Wuhan, Harmony Manor in

Changsha, Ying Garden in Jinan, Grand World in Weifang, etc. For commercial projects,

the company owns and runs first-class office buildings in Beijing, Shanghai, Wuhan,


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Chengdu and Changsha and is increasing its investment in the core areas of key cities.

The projects currently under development in Beijing are New Times Square, China

Construction Building, Guoyi Center, Smart Hill, Pop House, etc. For affordable housing,

the projects under construction include Yasongju, Fengze Home, MeilanJu, Huafu, etc.

Overseas Projects

China State Construction Engineering

Corporation Ltd (China Construction) is

Chinas largest construction and real estate

conglomerate and biggest building work

contractor. It is the largest transnational

construction company in the developing

countries and top home builder in the world,

taking the long lead of Chinas international

contracting business. China Construction is

well known in the world for undertaking

super high-rise, grand scale, cutting-edge

and novel projects and has built up a great

number of landmark projects in China and

around the world. In the 2012 ranking of

Fortune Global 500 companies, China

Construction historically jumped into top100,

having realized, ahead of the scheduled time,

its strategic target set forth in the companys

12th Five Year Plan.

China Construction is the vanguard of Chinas construction industry in carrying out foreign

contracting operations. The undertaking of its overseas business dates back to the 1950s


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when the predecessor of the company took part in, as entrusted by the government,

foreign economic aid programs, such as aiding Mongolia, aiding Vietnam, aiding

Tanzania-Zambia railways, etc. In late 1970s when reform and opening just took place in

China, the company took the lead in entering international contracting markets.

Over the past 30 years, China

Construction has undergone hardships

and struggles and has grown to be

Chinas largest international contractor,

with overseas market distribution as

below: Hong Kong and Macao market;

Southeast Asian market with Singapore as the

core, covering Vietnam, the Philippines, etc;

Middle East market with UAE as the core,

covering Qatar, Kuwait, Bahrain, etc; North

America market with the US as the core,

covering Barbados, the Bahamas, etc; North

African Market with Algeria as the core,

covering Libya, etc; Southern African market with Botswana as the core, covering South

Africa, etc; Central & West Africa market with Equatorial Guinea and Congo (Brazzaville)

as the core, covering Angola, etc; and Central Asian market with Russia as the core,

covering Pakistan, Kazakhstan, etc. By the end of 2011, China Construction has completed

the contract value of $99.1 billion and revenue of $77.2 billion for its overseas operations.

The overseas business covers multiple professional fields, namely housing construction,

manufacture, energy, transportation, water conservancy, industry, petro-chemistry,

hazards disposal, telecommunication, sewage/refuse treatment, etc. Projects of 8 kinds

are involved such as airport, housing, road and bridge, water industry, medical treatment


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facility, hotels, government works and art/sport facility. A great number of such projects

have become local landmarks, such as Terminal Building for Hong Kong International

Airport which is awarded Top 10 Construction Achievement of the 20th Century, Cairo

International Conference Center of Egypt, Pi ne Club Sheraton Hotel of Algeria and

Boumediene International Airport which are famed Symbol of Friendship, RAMA VIII

Bridge of Thailand which is depicted on the back of the local banknote, and Russian

Federation Building which is known as No. 1 Building in Europe.

China Construction, in line with the strategy of internationalization, has achieved

tremendous progress and development in its overseas operations. A number of such

representative projects have been undertaken in Algeria, the Middle East, America,

Singapore and Congo (Brazzaville) as Djamaa Mosque Project in Algeria, Republic

Polytechnic of Singapore, The Palm Islands of Dubai, UAE, Doha High-rise Building of

Qatar, Alexander Hamilton Bridge of USA, Congo (Brazzaville) No.1 National Highway and

Baha Mar Cable Beach Resort Project. The international well known brand of China

Construction CSCEC) is widely acknowledged around the world.

Group Companies Professional Services

China Construction Communications Engineering Group Corporation

China Building Decoration Group Co., Ltd.

China State Construction Port Engineering Group Ltd.

China Construction Steel Structure Corp. Ltd

China Construction Electric Power Construction Co., Ltd

China Construction Industrial Equipment Installation Co., Ltd

CSCEC Concrete

China Construction Water and Environmental Protection


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China State Construction Engineering Corporation Limited_Corparte Profile