Recently, a consortium comprising China Railway Construction Corporation Limited won the bid of the PPP Project of Xuzhou Urban Rail Transit Line 2 (Phase I). The scheduled construction period of the project is five years with a total investment of RMB 16.979 billion, representing approximately 2.87% of the operating revenue of the company for the year 2014 under the PRC accounting standards. Xuzhou Line 2 Concession Project Company (Project Company), as the contractee of the project, is jointly invested and established by Xuzhou Urban Rail Transit Co.

Ltd. and the company. The company and its subsidiaries serve as the general construction contractor of the project. The registered capital of the project company amounts to RMB1 billion, of which RMB 510 million will be contributed by the company (holding 51% equity interests in the project company) and RMB 490 million will be contributed by Xuzhou Rail Company (holding 49% equity interests in the project company).

The cooperation period is 25 years with a five-year construction period included. The bidding for the project has been considered and approved at the nineteenth meeting of the third session of the board of directors of the company.