On June 22, China Railway Construction Heavy Industry Corporation Limited (Stock Code: 688425, Stock Abbreviation: CRCHI) made its initial public offering on the Shanghai Stock Exchange and was officially listed on the STAR Market. Chen Fei, Vice Governor of Hunan Provincial People's Government; Wang Jianping, Secretary of the Party Committee and Chairman of China Railway Construction Corporation (CRCC); Liu Ruchen, Member of the Standing Committee of the Party Committee, Executive Director, General Counsel, and Chief Compliance Officer of CRCC; Yang Huayong, Academician of the Chinese Academy of Engineering; Su Zimeng, President of China Construction Machinery Association; and Liu Feixiang, Secretary of the Party Committee and Chairman of CRCHI, jointly struck the gong to open the market at the SSE. Pan Xuexian, Deputy Secretary of the Party Committee and Chairman of the Supervisory Board of the Shanghai Stock Exchange; Tan Weihong, Academician of the Chinese Academy of Sciences; Tong Xudong, Secretary of the Party Leadership Group and Director of the Hunan Provincial Department of Science and Technology; Huang Zanjia, Secretary of the Party Leadership Group and Director of the Hunan Provincial Government Office in Shanghai; Shen Yumou, Member of the Standing Committee of the Changsha Municipal Party Committee, Secretary of the Party Working Committee of the Economic and Technological Development Zone, and Secretary of the Changsha County Party Committee; Hu Jun, Second-level Inspector of the Hunan Local Financial Supervision and Administration Bureau; Hu Shaofeng, Chief Accountant of China Railway Signal & Communication Corporation Limited; Zhao Jinhua, Chief Economist of CRCC; Zhao Dengshan, Board Secretary of CRCC; Zhao Dianlong, Secretary of the Party Committee and Chairman of China Civil Engineering Construction Corporation, and other distinguished guests witnessed this historic moment.

Representatives from Hunan governments at all levels, CRCC, industry associations, research institutes, financial institutions, intermediary agencies, as well as shareholder representatives, customer representatives, employee representatives, and partners and representatives from all sectors of society who have long cared for and supported CRCHI, witnessed the bell-ringing listing of CRCHI on site.

Speech by Liu Feixiang, Secretary of the Party Committee and Chairman of CRCHI

Speech by Wang Sheng, Member of the Management Committee of CICC, Head of Investment Banking Department, and Managing Director

Speech by Wang Jianping, Secretary of the Party Committee and Chairman of CRCC

Speech by Chen Fei, Vice Governor of Hunan Provincial People's Government

Setting Multiple Records, Highly Watched by the Market

The public offering consisted of 1.285 billion shares, raising 3.688 billion yuan, and the total share capital after the issuance is 5.141 billion shares. CRCHI has set multiple STAR Market records: the first A-share spin-off listing of a central state-owned enterprise, the first STAR Market listing in the construction machinery industry, and the largest fundraising in the specialized equipment manufacturing sector. The public offering introduced 22 institutional investors, making it the STAR Market company with the most strategic investors introduced this year. If the over-allotment option is fully exercised, 15% of the initial issuance size will be used for over-allotment, and the total share capital after the issuance will be 5.333 billion shares.

After this public fundraising, the controlling shareholder of CRCHI remains CRCC. Before the exercise of the over-allotment option, CRCC's direct and indirect shareholding ratio is 75%.

Pan Xuexian, Deputy Secretary of the Party Committee and Chairman of the Supervisory Board of the Shanghai Stock Exchange, and Liu Feixiang, Secretary of the Party Committee and Chairman of China Railway Construction Heavy Industry Corporation Limited, signed the STAR Market Listing Agreement

Pan Xuexian, Deputy Secretary of the Party Committee and Chairman of the Supervisory Board of the Shanghai Stock Exchange, and Liu Feixiang, Secretary of the Party Committee and Chairman of China Railway Construction Heavy Industry Corporation Limited, exchanged listing souvenirs

Listing site

Fourteen Years of Innovation, A New Journey on the STAR Market

The development history of CRCHI is a history of independent innovation and struggle. Listing on the STAR Market will stand at a new starting point, embark on a new journey, and advance toward higher goals. Over the past 14 years, CRCHI has always adhered to independent innovation, undertaken and participated in numerous national and provincial major science and technology projects such as the National 863 Program, the National Science and Technology Support Program, and the National Key R&D Program. It has independently developed multiple global and domestic first-of-their-kind products, filling industry gaps, breaking the long-term foreign monopoly on high-end underground engineering equipment such as tunnel boring machines, and becoming an industry leader.

The 19th National Congress of the Communist Party of China proposed the beautiful vision of building a "Transportation Powerhouse" and "Science and Technology Powerhouse." CRCHI is actively undertaking its mission, always taking industrial service to the country as its responsibility, using scientific and technological innovation to better meet the people's needs for a better life, and promoting the continuous modernization and intelligentization of China's rail transit construction.

The world's largest high-end underground engineering equipment manufacturing base — CRCHI Changsha Second Industrial Park

In recent years, CRCHI has fully implemented the national strategic requirement of "innovation-driven development." With a pioneering spirit of independent innovation, it has promoted high-end underground engineering equipment represented by boring machines, achieving innovative breakthroughs and partial leading positions in "bottleneck" technologies, gradually replacing imports with higher performance and better quality and achieving batch exports, changing the situation where the core technology of shield machines was completely monopolized by foreign countries, and advancing the localization and industrialization of boring machine equipment. Independently developed long-distance and large-slope dual-mode inclined shaft rock tunnel boring machines, large-diameter slurry balance shield machines, permanent magnet synchronous drive earth pressure balance shield machines, and shield-type bolter miners have reached internationally leading levels overall.

Especially since 2020, CRCHI has continuously promoted the industrialization of super-large-diameter shield machines, and has successively delivered more than 5 super-large-diameter shield machines of 15 meters and above, which were used in the Hangzhou Genshan East Road and Xiasha Road tunnel projects, the Beijing East Sixth Ring Road reconstruction project, the Changsha Xiangya Road river-crossing channel, and the Anhui Wuhu river-crossing tunnel project. The development and application of these equipment have consolidated the independent controllability of core technologies for domestic super-large-diameter shield machines and further promoted the high-quality development of China's high-end underground engineering equipment.

On September 27, 2020, the domestically largest-diameter shield machine "Jinghua" rolled off the production line at CRCHI Changsha First Industrial Park

At the National Two Academies Academicians Conference held on May 28, the General Secretary mentioned that "the largest-diameter shield machine was successfully launched," bringing widespread attention to the domestically largest-diameter shield machine "Jinghua" independently developed by CRCHI, along with other national heavy equipment such as the domestic C919 large aircraft.

Deep Integration of "Capital, Industry, and Technology"

Strengthen, Optimize, and Expand Products and Industries

The raised funds will be used for research and application projects such as intelligent equipment for super underground engineering, R&D centers, and production base construction projects. They will break through bottleneck technical problems encountered in the company's existing production and R&D processes, improve the company's existing R&D facilities, and build supporting production lines according to the requirements of continuous product technology updates. This will promote the industrialization of the company's innovative technologies, further extend and expand the performance and application scenarios of existing boring machine equipment, rail transit equipment, and special professional equipment products, better meet users' diverse and multi-scenario needs, strengthen, optimize, and expand various product industries, consolidate the company's technological leadership in the industry, and further enhance the company's core competitiveness.

Liu Feixiang, Secretary of the Party Committee and Chairman of CRCHI, stated that the STAR Market was proposed by the General Secretary at the first China International Import Expo and established to provide capital services for scientific and technological innovation and help innovative enterprises achieve high-quality development. CRCHI will take the STAR Market listing as an opportunity to accelerate the deep integration of "capital, industry, and technology," industrialize more innovative achievements, technologize more industrial products, vigorously build an "innovative and service-oriented" enterprise, adhere to the development path of "differentiation, intelligence, and globalization," and continuously enhance the company's core competitiveness. In the future, CRCHI will face the world's scientific and technological frontiers, the main economic battlefield, the major needs of the country, and the life and health of the people, further explore new technologies, develop new industries, open up new markets, and create greater value for customers, shareholders, and society.