Analysis of Growth Drivers and Sustainability of China Railway Engineering Corporation (CREC)'s Overseas Business

According to the latest data, China Railway Engineering Corporation (CREC)'s cumulative new contract awards in 2025 reached RMB 2.7509 trillion, with a year-on-year growth of 1.3%. Against the backdrop of slowing overall growth,

, with new contract amounting to RMB 257.37 billion, representing a year-on-year growth of 16.5%, far outperforming the domestic business’s slight year-on-year decline of 0.03%[0][1].

From a quarterly perspective, the overseas business shows an accelerating growth trend: in 2024, the full-year overseas new contracts reached RMB 220.9 billion, with a year-on-year growth of 10.6%; in the first half of 2025, overseas new contract awards surged 51.6% year-on-year; in the first three quarters of 2025, overseas new contract amount reached RMB 166.64 billion, a substantial year-on-year growth of 35.2%, accounting for 10.5% of total new contract awards[1][2].

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2025 is a crucial year for the “Belt and Road” Initiative to enter a stage of high-quality development. According to the latest data,

, meaning that more than half of China’s foreign trade has shifted from traditional developed markets to emerging markets[3]. In 2025, the China Development Bank (CDB) disbursed over RMB 290 billion equivalent in funds to support high-quality BRI cooperation, effectively playing the role of the main bank serving BRI co-construction[4]. The Export-Import Bank of China (China Eximbank) issued over RMB 1.2 trillion in new loans for foreign trade in 2025, accounting for over 60% of the bank’s total loan disbursements[4].

Financing for key projects continues to be implemented: the syndicated loan agreement for the China-Kyrgyzstan-Uzbekistan Railway project was officially signed, and the China-Laos 500kV Interconnection Project has entered the acceptance stage. These landmark projects provide a stable source of projects for central state-owned construction enterprises such as CREC[4].

On January 8, 2026, Zhao Dianlong assumed the position of General Manager of China Railway Engineering Group Co., Ltd. His

is regarded as an important signal of CREC’s accelerated internationalization[2]. Zhao Dianlong previously served as Chairman of China Civil Engineering Construction Corporation, and accumulated rich cross-border project management experience at China Railway Construction Corporation’s overseas business platform.

The company has formed an

, and has strengthened its country-specific companies in accordance with the principle of “entity localization”, emphasizing a shift from opportunism to long-term deep cultivation, and from single project contracting to full industry chain layout. Chairman Chen Wenjian clearly stated that the company will “continue to deepen high-quality BRI cooperation, select and strengthen landmark projects”[2].

CREC has built a number of benchmark projects with global influence along the BRI routes:

Project Name	Country/Region	Project Type	Strategic Significance
Jakarta-Bandung High-Speed Railway	Indonesia	High-Speed Railway	The first high-speed railway in Southeast Asia, already in operation
China-Laos Railway	Laos	Railway	A landmark project connecting China and Laos
Budapest-Belgrade Railway	Serbia/Hungary	Railway	An important connectivity project in Europe
Padma Bridge	Bangladesh	Bridge	A key infrastructure project in Bangladesh
China-Kyrgyzstan-Uzbekistan Railway	Central Asia	Railway	A transportation artery connecting Central Asia and radiating across Eurasia[5]

The successful implementation of these projects has not only accumulated valuable overseas engineering experience, but also formed a strong brand effect and market reputation, laying a solid foundation for securing subsequent projects[5].

The company has implemented a differentiated operation layout of

[5]:

• Southeast Asia
  : The water supply and housing construction project in Malaysia has become a new benchmark, and the company continues to secure new projects in Indonesia, Vietnam and other countries
• Africa
  : The pace of building “base areas” in the Democratic Republic of the Congo (DRC), Sierra Leone, Uganda, Ethiopia and other countries has accelerated, and mining construction business in the DRC accounts for over 80% of the company’s business in the region
• Central Asia
  : Breakthroughs have been made in markets such as Kazakhstan and Uzbekistan

In the first three quarters of 2025, overseas new contract amount reached RMB 166.64 billion, a substantial year-on-year growth of 35.2%, far exceeding the growth rate of domestic business. The “temperature difference between domestic and overseas markets” highlights the strategic importance of overseas markets for CREC’s future development[2].

CREC has innovatively implemented the

, exchanging infrastructure construction for mineral resource development rights in host countries, and has formed a unique competitive advantage:

• Mineral Resource Layout
  : The company owns 5 modern mines in the Democratic Republic of the Congo (DRC) and other regions, including the Heilongjiang Luming Molybdenum Mine, DRC Lüsha Copper-Cobalt Mine, MKM Copper-Cobalt Mine, Huagang SICOMINE Copper-Cobalt Mine, and Mongolia Ulaan Lead-Zinc Mine
• Resource Reserves
  : The company has reserves of strategic resources including copper (4th in China), cobalt (3rd in China), and molybdenum (2nd in China)
• Profit Contribution
  : In the first half of 2025, the attributable net profit of the mineral resource business reached RMB 2.581 billion, with a year-on-year growth of 27.52%,
  accounting for 22% of the company’s total profit
  [6]

This collaborative model not only provides a stable source of profit, but also forms a dual-drive pattern of “Infrastructure + Resource Development”.

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Factor	Details	Assessment
Sufficient Backlog Orders	The outstanding contract amount at the end of 2024 reached RMB 6.89 trillion, providing a solid foundation for medium- to long-term development	★★★★★
Continuous Favorable Policies	In 2025, local special bonds increased to RMB 4.4 trillion, and ultra-long-term treasury bonds of RMB 1.3 trillion supported the construction of key infrastructure and major technological transformation projects	★★★★★
Financial Institution Support	Policy banks such as CDB and China Eximbank continue to provide financing guarantees	★★★★☆
New Management’s Emphasis	The appointment of Zhao Dianlong as General Manager marks internationalization as a strategic priority	★★★★★
Obvious Competitive Advantages	The company has a deep moat in TBM technology, full industry chain capabilities, intelligent construction and other fields	★★★★☆

Risk Type	Specific Performance	Risk Level
Geopolitical Risk	Political instability and policy changes in some countries may affect project progress	★★★☆☆
Exchange Rate Fluctuation Risk	Overseas project settlement involves multiple currencies, and exchange rate fluctuations affect profits	★★★☆☆
Fund Implementation Risk	Project financing progress may fall short of expectations	★★★☆☆
Increased Competition Risk	Peer central state-owned enterprises such as China Communications Construction (CCCC), PowerChina, and China State Construction Engineering (CSCEC) are also expanding their overseas layouts	★★★☆☆
Domestic Business Pressure	Local government debt affects payment collection and new investment	★★★★☆

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The 16.5% growth of CREC’s overseas business

, based on the following main reasons:

1. Strategic Level
   : The “Belt and Road” Initiative has entered a stage of high-quality development, with policy support continuously strengthened; the appointment of the new management marks internationalization as a strategic priority
2. Business Level
   : The company has completed the adjustment of its overseas strategic structure, and the localized deep cultivation model has achieved remarkable results; overseas backlog orders are sufficient, and major projects are successively entering the peak construction period
3. Collaboration Level
   : Collaborative businesses such as mineral resources contribute incremental profits, forming a positive cycle of “Infrastructure + Resources”; technological advantages and full industry chain capabilities build competitive barriers
4. Capital Level
   : Policy banks such as CDB and China Eximbank provide continuous financing support; financial tools such as special loans and RMB financing windows are continuously enriched

• Attention should be paid to the impact of geopolitical changes and exchange rate fluctuations on overseas projects
• Domestic local government debt risks may delay project payment collection
• Increased competition in overseas markets may compress profit margins

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[0] Jinling API Data - China Railway Engineering Corporation (CREC, 601390.SS) Company Profile and Financial Data

[1] Dongfang Fortune Securities Research Report - In-Depth Analysis Report on CREC (March 2025)

[2] Tencent News - CREC’s New President Takes Office, Internationalization Mission is Obvious! (January 2026)

[3] Guancha.cn - 2025 China Foreign Trade Data Released: What’s Behind the Breakthrough?

[4] Xinhua News Agency Client - CDB: Facilitating Diversified Investment and Financing Guarantee to Support High-Quality BRI Co-Construction (January 2026)

[5] CREC Official Website - Introduction to Overseas Business Segment

[6] Dongfang Fortune Wealth Account - Analysis of Future Growth Drivers of CREC’s Infrastructure Business (January 2026)