China Railway Group Ltd. (390), Asia's biggest construction company, won two contacts worth 5.1 billion yuan ($737 million) to build rail lines, express rail links and a bridge in the eastern Chinese city of Nanjing.
The lines are part of links between Nanjing and Shanghai and Hangzhou to the south, and the bridge will carry the lines across the Yangtze River, the company said in a statement to the Shanghai stock exchange today.
China Railway Group and rival China Railway Construction Corp. are winning orders from a state initiative to spend as much as $800 billion on railways, highways and waterways through 2020. China's railway network, the world's third-longest, carries more passengers and cargo than any other.
Beijing-based China Railway Group plans to increase spending on tunnel-boring equipment, factories and other capital projects by 47 percent to 18.1 billion yuan this year as it expands, Vice President Li Jiansheng said on April 25.
The company's first-quarter net income more than doubled to 524.8 billion yuan, with sales rising 7.7 percent to 34.9 billion yuan. China Railway fell 4.4 percent to HK$6.52 in Hong Kong today, before the announcement.
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