CITIC Construction is a leading integrated service provider in engineering construction. With key markets in Africa, Latin America and countries along the Belt and Road, the company is currently expanding into developed overseas markets and growing its business in mainland China through PPP projects. In addition to its established foothold in infrastructure, housing and industrial construction, the company has become increasingly involved in resources, energy, agriculture and environmental protection.
Leveraging CITIC’s vast resources and network, CITIC Construction provides a range of value-added services in addition to EPC services, including project planning, design, investment, financing, management, procurement, operations and maintenance. The wide scope of these services gives the company a significant competitive advantage in developing countries.
Through the successful delivery of large-scale projects important to the communities in which it operates, the company has established a strong brand and reputation over the years. It is widely regarded today as a highly successful Chinese engineering contracting enterprise.
Year in review
In 2017, CITIC Construction recorded revenue of RMB9,572 million and a net profit attributable to shareholders of RMB1,208 million. The commencement of major new projects in Kazakhastan, Angola and the United Kingdom contributed to the increase of revenue.
Capturing opportunities created by the Belt and Road Initiative in 2017, CITIC Construction continued to develop its emerging markets business in Eastern Europe, and Central and Southeast Asia, with a focus on infrastructure and manufacturing projects. Key international projects include a new wind and solar power station in Kazakhstan and an apartment development in Phuket, Thailand. Both have now commenced construction. Since November 2017, construction of a large-scale road upgrade project in Kazakhstan has also been under way, while the Geely Automobile Production Line in Belarus has been completed and is now in operation.
In general, CITIC Construction’s new project pipeline in Africa and Latin America was constrained owing to depressed oil prices throughout the year. Nevertheless, the company succeeded in signing a number of major new construction projects, including the east section of the Algerian 84km East-West Expressway Project and three housing and infrastructure projects in Angola. The three new housing projects comprise the K.K. New Town Stage I Social Housing Municipal Infrastructure Project (Phase II), the RED Social Housing Municipal Infrastructure Project and the Cunene Ekuma Housing Project.
In the domestic market, CITIC Construction added new revenue streams and enhanced its execution capacity. Moving beyond its traditional focus on infrastructure and housing projects, the company began entering into new business areas such as landscaping and environmental management. Among the new projects taken on by the company was the PPP project of Industrial New Town of Tianfu International Airport Linkong Economic Zone at Ziyang City.
At the end of 2017, the total value of signed contracts by CITIC Construction was RMB214.65 billion, of which approximately RMB23 billion was contributed by new contracts signed during 2017.