About This Report
This report is the 18th consecutive Environmental Social and Governance (ESG) Report and Sustainability Report
issued by China Railway Group Limited (CREC) aiming to disclose the Company's ESG strategy management
systems practical initiatives and key performance while addressing key ESG issues of various stakeholders.Reporting frequency
The Report is an annual report covering the period from January 1 2025 to December 31 2025. To enhance
comparability and forward-looking perspective certain content extends beyond this timeframe.Reporting scope
The scope of this report encompasses CREC and all its subsidiaries.Title description
In this report China Railway Group Limited is also referred to as "CREC" "the Company" and "we/us". Please
refer to the Appendix "Terms and Definitions" for the full names and short names of CREC's subsidiaries.References
2030 Agenda for Sustainable Development released by the United Nations
Reference Indicator System for the ESG Special Report of Listed Companies Controlled by Central Enterprises
issued by the State-owned Assets Supervision and Administration Commission of the State Council ("SASAC")
Sustainability Disclosure Standards for Business Enterprise-Basic Standard (Trial) issued by the Ministry of
Finance of the People's Republic of China
Appendix C2 Environmental Social and Governance Reporting Code to the Hong Kong Exchanges and
Clearing Limited's Listing Rules
Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies-Sustainability Report
(Trial) and Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE-Compilation of
Sustainable Development Reports issued by Shanghai Stock Exchange
Guidelines on Sustainable Development Reporting for Chinese Enterprises (CASS-ESG 6.0) issued by Chinese
Academy of Social Sciences
Access to the report
This report is published in both Chinese and English. In case of discrepancies the Chinese version shall prevail.The electronic version is available for download in the Sustainability section of CREC's website: http://www.crecg.com.2025 Environmental Social and Governance Report and Sustainability Report
Chairman's Statement
Secretary of the Party Committee
and Chairman of China Railway
Group Limited
Chen Wenjian
The year 2025 was both extraordinary and challenging. Through persistent efforts CREC delivered
remarkable accomplishments. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics
for a New Era we fully implemented the guiding principles from the 20th CPC National Congress and its
subsequent plenary sessions. Staying committed to high-quality development as our core mission we
upheld national priorities and fulfilled our responsibilities as a central SOE. Despite navigating strong
headwinds and overcoming numerous challenges we achieved tangible results in adapting to changes
stabilizing operations and forging new paths forward. Together we wrote a new chapter in building a
"High-Quality CREC".
01Chairman's Statement
This year we strengthened our ideological foundation production lines in batches improving both work efficiency
to guide development. We upheld the "Two Upholds" as and project quality. In the past year we won a total of 343
the highest political principle and fundamental discipline provincial- and ministerial-level science and technology
throughout Party building reform and development. We progress awards and 2 China Patent Awards and led
promptly studied General Secretary Xi Jinping's directives on the release of 3 ISO international standards elevating
central SOE work and launched campaigns to implement the innovation capacity to new heights. We highlighted the
spirit of the Fourth Plenary Session of the 20th CPC Central "baton" of performance evaluation improved positive
Committee. Developing the 15th Five-Year Plan became a incentive mechanisms and established a clear high-quality
practical exercise to enhance political competencies. We development orientation fostering a stronger company-
intensified education on the Central Committee's Eight- wide atmosphere of entrepreneurship and excellence.Point Decision fostering a culture rooted in integrity. The
"Three Transformations" initiative crystallized into five major This year we demonstrated our dedication to serving
development reforms and ten innovation achievements. the people through concrete actions. We upheld the
We established a new corporate value system centered people-centered development philosophy embodying
on "Creation Quality and Brand" embedding high-quality the responsibility and compassion of a central SOE.development into our organizational DNA. Through grassroots Actively participating in the capital market's "market-
Party building initiatives we deepened the integration of stabilizing initiative" we helped stabilize expectations
Party work with business operations turning political and and safeguarded the shared interests of the enterprise
organizational strengths into competitive advantages. and its shareholders. We cultivated rural revitalization
initiatives receiving the highest "Excellent" rating for
This year we advanced enterprise growth through seven consecutive years in central authorities' targeted
practical actions demonstrating the responsibility of a assistance programs. One case study was included in the
central SOE. Prioritizing national strategies we took the lead Blue Book on Environmental Social and Governance (ESG)
and made significant contributions to major infrastructure of Listed Central State-Owned Enterprises (2025) . We
projects. Landmark projects—including the Shenyang-Baihe recruited 7187 college graduates contributing to national
High-Speed Railway Xi'an-Yan'an High-Speed Railway employment stability. We strengthened specialized
and Chengdu Metro Line 13—were completed and entered emergency rescue teams and responded swiftly to crises
service. The Changtai Yangtze River Bridge now connects including the Dingri Earthquake in Xizang the Myanmar
north and south while Chongqing East Station rises from Earthquake and the Junlian Landslide in Yibin Sichuan.the ground injecting strong momentum into high-quality Through responsibility and perseverance we built lifelines.economic and social development. Breakthroughs on the We carried out public welfare initiatives—including Golden
Xihoumen Bridge and steady progress on the Gaoligongshan Autumn Student Aid Love Blood Donation and Summer
Tunnel laid a solid foundation for building China into a "Little Migratory Birds" programs—turning small acts of
country with strong transport strength. We deepened high- kindness into warm currents and conveying great love
quality Belt and Road cooperation and Chairman Zhao Leji’s through genuine care. We implemented the principle that
inspection of the Hungary-Serbia Railway earned high praise. "lucid waters and lush mountains are invaluable assets"
Landmark projects-such as the Railway from Morebaya Port striving to build green ecological projects. We selected
to Simandou Mining Areay Argentina’s Salar de Mariana 100 green engineering projects and 51 energy-saving and
Lithium Plant and Pakistan’s Gwadar New International low-carbon technologies setting strong examples and
Airport—achieved continuous successes further burnishing contributing to a Beautiful China where humanity and
the "China Construction" brand worldwide. nature coexist harmoniously.This year we pursued reforms to unlock internal dynamism. Looking ahead to 2026 the clarion call for a new journey
We resolutely advanced reform initiatives with dividends has sounded. We will continue to study and implement
continuing to emerge. CREC ranked among the top 30 central General Secretary Xi Jinping’s important instructions on
SOEs in brand-building capability and three subsidiaries central SOE work and the spirit of the Fourth Plenary
were recognized as "benchmarks" or "excellent performers" Session of the 20th CPC Central Committee. Guided by
in SASAC's "Science & Technology Reform" and "Double high-quality Party building we will ensure high-quality
Hundred" Actions. We proactively adapted to market development focus on our core responsibilities boldly
changes deepened reforms of regional headquarters and advance into deeper stages of reform and balance
investment companies optimized resource allocation development with security. Anchored in the corporate
and fully unleashed development vitality. Anchored in the values of "Innovation Quality and Brand" we will strive
strategy of strengthening the enterprise through technology with greater enthusiasm more pragmatic approaches and
we built the "Pioneer Large Model" innovation system and stronger measures to ensure a successful and strong start
implemented eight "AI + Smart Construction" scenarios. to the 15th Five-Year Plan. We are determined to become
Major national equipment—such as the world's largest- a pioneer in advancing Chinese modernization and a
diameter vertical shaft boring machine and the world's first leading enterprise in the high-quality development of the
in-situ variable-diameter shield tunneling machine—rolled off construction industry.
022025 Environmental Social and Governance Report and Sustainability Report
About CREC
Company Profile
China Railway Group Limited (hereinafter referred to as "CREC")
is a super-large enterprise group integrating survey and design
construction and installation industrial manufacturing real
estate development resource utilization financial investment
and other emerging businesses. Headquartered in Beijing China
CREC currently has 60 secondary subsidiaries and over 289250
employees. It operates and implements projects in over 100
countries and regions worldwide.CREC traces its origins to the Engineering Bureau and Design
Bureau of the Ministry of Railways of China established in March
1950. These were later restructured into the Capital Construction
Bureau of the Ministry of Railways. In July 1989 the Ministry of
Railways dissolved the Capital Construction Bureau and officially
established China Railway Engineering Corporation. In September
2000 China Railway Engineering Corporation was separated from
the Ministry of Railways and placed under the management of the
Central Large Enterprise Work Committee. In May 2003 SASAC
assumed the role of investor. In September 2007 China Railway
Engineering Corporation exclusively initiated the establishment of
China Railway Group Limited which was listed on the Shanghai
Performance
Over
289250 employees
Ranked
9th in the Fortune China 500
Ranked
2nd in the ENR Top 250 Global Contractors
03About CREC
Stock Exchange on December 3 2007 and on the Hong Kong Stock
Exchange on December 7 2007. As the controlling shareholder Portion of cumulative railway construction
of CREC China Railway Engineering Corporation completed its participation by CREC in China’s total railway
corporate restructuring on December 28 2017 and was registered mileage
with the industrial and commercial authorities as China Railway
Engineering Group Co. Ltd. Over 2/3
CREC's business scope covers infrastructure sectors including
railways highways municipal works housing construction urban Percentage of electrified railways built by
rail transit water conservancy and hydropower airports ports and CREC in China's electrified railways
docks. The Company has participated in the construction of over
two-thirds of China's total railway mileage built 90% of China's 90%
electrified railways and contributed to approximately one-eighth of
China's total expressway mileage. It has constructed three-fifths of Percentage of China's total expressway
China's urban rail transit projects. mileage constructed by CREC
As one of the world's largest construction contractors CREC has
been ranked among the Fortune Global 500 for 20 consecutive 1/8
years. In 2025 CREC ranked 43rd on the Fortune Global 500 9th on
the Fortune China 500 2nd on the ENR Top 250 Global Contractors Percentage of China's urban rail transit
14th on the ENR Top 250 International Contractors and 30th on the projects constructed by CREC
ENR Top 150 Global Design Firms.Services provided in over One of the World's
100 Largest Construction countries and regions worldwide Engineering Contractors
Ranked Ranked among the Fortune Global 500 for
43rd in the Fortune Global 500 20 Consecutive Years
Ranked Ranked
14th among the Top 250 International 30th in the ENR Top 150 Global Design Firms
Engineering Contractors
042025 Environmental Social and Governance Report and Sustainability Report
CREC 2025
Highlight Performance
Economic
Total assets Operating revenue
RMB 2470.58 billion RMB 1093.49 billion
Amount of newly signed contracts Total profit
RMB 2750.9 billion RMB 33.54 billion
Net profit Total tax payment
RMB 26.347 billion RMB 35.078 billion
Environmental
Total GHG emissions (Scope 1 + Scope 2) GHG emission intensity (Scope 1 + Scope 2)
141540000.1319
tons of CO2 equivalent tons of CO2 equivalent / RMB 10000
Green technology R&D investment Environmental protection investment
RMB 196 million RMB 1938 million
Total energy consumption Water consumption
3944602 371839400 m3
tons of standard coal equivalent
Hazardous waste intensity Recycled water volume
0.018 kg/RMB 10000 148736000 m3
05CREC 2025
Social
Total R&D investment Number of patents held
RMB 22.52 billion 48029 items
Total number of employees Female employees
289250 persons 47780 persons
Total training investment Total number of employees trained
RMB 378.968 million 289250 persons
Total number of suppliers Total investment amount in poverty alleviation
97966 and rural revitalization suppliers
RMB 87.6 million
Governance
Number of Board Meetings held Number of Shareholders' Meetings held
11 times 1 time
Number of directors Number of female directors
7 persons 1 person
Number of employees participating in anti-bribery and anti-corruption training
136216 persons
062025 Environmental Social and Governance Report and Sustainability Report
Awards and Recognition
Ranked 43rd Ranked 9th Ranked 2nd
in the Fortune Global 500 in the Fortune China 500 in the ENR Top 250 Global Contractors
Ranked 14th Ranked 30th Maintained Shanghai Stock
in the ENR Top 150 Global among the ENR Top 150 Global Exchange (SSE) "A" rating
Design Firms Design Firms for 17 consecutive years
Received SSE "A" rating Awarded Best IR Hong Kong Honored as "Best Practice Case
for information disclosure Listed Company by New for Board Office of Listed
for 12 consecutive years Fortune magazine for 7 Companies" by China Association for Public
consecutive years
Companies (CAPCO) for 4 consecutive years
Ranked among the TOP 30 Honored as "Best Practice Case for the Board of
Central SOEs in Brand Building Capability
by the State-owned Assets Supervision Directors of Listed Companies" by China Association for
and Administration Commission of the Public Companies (CAPCO) for 3 consecutive years
State Council (SASAC)
Ranked 47th in the "TOP 100 Chinese Corporate Brand Value" and
19th in the "TOP 60 Central SOEs Brand Value" by the China Association for Quality
Ranked 114th in Brand Finance's "Global 500 Most Valuable Brands" and
23rd in "China 500 Most Valuable Brands"
Listed in CCTV's "Top 100 ESG Pioneers Among Listed Companies"
Listed in CCTV's "Top 100 ESG Pioneers Among Listed Central SOEs"
CSI ESG Rating: AA Wind ESG Rating: BBB MSCI ESG Rating: BB
07ESG governance
ESG Governance
CREC comprehensively integrates ESG concepts into its strategic planning and business operations and continuously
improves the ESG governance mechanism. Through deepening efficient communication with stakeholders CREC
is consistently enhancing the quality and effectiveness of ESG governance and striving to boost high-quality and
sustainable development.ESG Governance Structure
The Company is continuously enhancing its ESG governance by establishing a three-tier framework spanning the Board
Executive Management and Operations. This structure clearly delineates responsibilities and accountabilities across all
levels ensuring efficient management and driving ESG initiatives toward tangible results.CREC ESG Governance Structure
Board of Directors
Governance
Strategy and Investment Committee
Management Party Building Work Department
Headquarters
Subsidiaries
Execution departments
The Board of Directors serving as the highest decision-making body for corporate ESG matters is responsible for:
reviewing ESG strategies and targets; overseeing ESG governance strategies policies and progress toward objectives;
reviewing material ESG topics; assessing and defining ESG-related risks and opportunities; reviewing the annual ESG
report.The Strategy and Investment Committee established under the Board of Directors oversees the formulation of the ESG
governance framework and provides recommendations monitors progress on ESG targets regularly reviews relevant
work reports and reports to the Board.The Party Building Department is responsible for formulating the Company's ESG strategies and targets coordinating and
advancing the implementation of daily ESG management tasks and organizing the preparation of the annual ESG report.Departments at the Company headquarters and affiliated subsidiaries are responsible for the specific execution and
implementation of ESG-related work promoting the achievement of ESG targets.The Company integrates ESG performance into the executive compensation framework with key metrics spanning
technological innovation safety and quality among others. This linkage ensures the effective attainment of sustainable
development goals.
082025 Environmental Social and Governance Report and Sustainability Report
ESG Practices and Initiatives
The Company has systematically built a comprehensive multi-tiered ESG capability framework. By driving internal
upskilling and external expansion in parallel we have solidified the foundation for high-quality ESG development.Internally the Company has developed a diverse and structured ESG training curriculum focusing on core areas such as
ESG principles industry trends regulatory updates peer benchmarks and strategic management. In 2025 we delivered
a specialized information disclosure training program to nearly 700 ESG leads across headquarters and subsidiaries.Delivered via a blended online and offline model this initiative significantly enhanced participants' professional
competence and practical application skills.Externally the Company is actively engaging with the broader ESG ecosystem. We have participated in specialized
training and exchange forums hosted by key regulators and industry bodies—including the Shanghai Stock Exchange
Social Responsibility Bureau of the State-owned Assets Supervision and Administration Commission of the State Council
(SASAC) Beijing Listed Companies Association China Enterprise Reform and Development Society China Association of
Communication Enterprise Management Beijing Institute of Certified Public Accountants—to stay abreast of regulatory
developments and industry trends.Furthermore the Company actively participated in prestigious ESG award programs this year. Recognized for our robust
management and innovative sustainability initiatives we received multiple awards and honors—a testament to the
industry and capital markets' acknowledgment of our ESG performance.Awards and Honors
Listed in CCTV's "Top 100 ESG Pioneers Listed in CCTV's "Top 100 ESG Pioneers
Among Listed Companies" Among Listed Central SOEs"
Listed in CCTV "China ESG Listed
Companies Beijing-Tianjin-Hebei Awarded the Shanghai Securities News 2025
Pioneer Top 50 (2025)" SSE Eagle Golden Quality ESG Award
Awarded Responsibility Cloud's Recognized as "Ernst & Young
"Responsibility Whale Award" for Sustainability Award 2025 Winner for
Overseas ESG Pioneer Outstanding Enterprise"
Awarded the China Communications and The case study—"Efficient Treatment of
Transportation Association's Transportation Shield Muck to Support Zero-Waste City
Enterprise Social Responsibility (ESG) Excellence Construction"—was selected as 2025 ESG
Report with 8 cases rated as Excellent Cases Exemplary Practice by the Ministry of
and 14 cases rated as Outstanding Cases Ecology and Environment.Two cases—"Red Rucheng White Tea Fragrance: Whole-Industry-Chain Support for
the Rucheng White Tea Industry" and "Chongtai Yangtze River Tunnel: Pioneering
Intelligent Tunnel Construction Technology in China"—were selected for inclusion in two
publications by the State-owned Assets Supervision and Administration Commission:
the Blue Book on Environmental Social and Governance (ESG) of Listed Central State-Owned
Enterprises and the "Blue Book on Social Responsibility of Central SOEs (2025)".
09ESG governance
Material Topic Identification
In line with global sustainability trends international ESG standards and regulatory expectations the Company has
systematically identified its key stakeholders' priorities. Taking into account our business development and industry
characteristics we have established the CREC 2025 ESG Materiality List. Through double-materiality assessment
across financial materiality and impact materiality dimensions the priority of topics is determined resulting in the 2025
Materiality Matrix with key responses to relevant issues provided in this Report.Double Materiality Assessment Process
1 Establishment of ESG topics list
In compliance with the Appendix C2 Environmental Social and Governance Reporting Guide of the Listing Rules of The
Stock Exchange of Hong Kong Limited as well as the Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation
of Listed Companies—Sustainability Report (Trial) and the SSE Self-Regulatory Guidelines for Listed Companies No. 4 –
Preparation of Sustainability Reports the Company refined its ESG agenda. By integrating macro policies rating criteria
and industry best practices we prioritized a focused list of 25 core ESG issues across the three pillars of ESG serving as a
strategic roadmap for our future initiatives.
2 Materiality assessment and confirmation
Impact materiality assessment
Through a combination of questionnaire surveys and face-to-face interviews the Company engaged internal
and external stakeholders to systematically assess the impact materiality of each ESG issue. The evaluation was
conducted across four key dimensions: scale scope irremediability and likelihood. The exercise yielded 299 valid
responses. Following comprehensive data analysis the Company reached its final conclusions regarding impact
materiality.Financial materiality assessment
The Company engaged heads of relevant internal departments and external ESG experts to identify the potential
financial impacts of each ESG issue. We focused on four key areas: business operations financial position operating
results and cash flows. By assessing the likelihood and severity of these financial impacts the Company reached its
final financial materiality assessment conclusions.
3 Prioritization of material topics
Based on the materiality assessment results the Company prioritized the topics around the two dimensions of financial
materiality and impact materiality presenting the overall importance priority of each topic in a matrix visualization
format forming the CREC 2025 ESG Materiality Matrix.
102025 Environmental Social and Governance Report and Sustainability Report
CREC 2025 ESG Materiality Matrix
9
1119
13
15
1822
17255
3
6
2710
1412
16
1
4
2420
23
821
Financial materiality
Environmental Social Governance
1 Responding to climate change 10 Rural revitalization & social contributions 22 Anti-commercial bribery and anti-
2 corruptionPollutant emission 11 Science and technology innovation
3 23 Anti-unfair competitionWaste disposal 12 Supply chain management
4 24 ESG governanceEcological and biodiversity 13 Product and service safety and quality
conservation 25 Operating in compliance with laws
14 Data security and customer privacy and regulations
5 Environmental management protection
6 Utilization of energy 15 Employee's rights and interests
7 Utilization of water resources 16 Training and development
8 Circular economy 17 Employee care
9 Green construction 18 Occupational health and safety (OHS)
19 Serving national strategies
20 Overseas development
21 Stakeholder engagement
4 Material topic review and disclosure
The Company has determined that the financially material topics are product and service safety and quality supply chain
management overseas development and responding to climate change. The resulting CREC 2025 ESG Materiality Matrix
has been reviewed and approved by the Board of Directors and is hereby disclosed.
11
Impact materialityESG governance
Stakeholder Communication
The Company has established a structured and multi-channel stakeholder engagement framework. This system enables
us to promptly address the concerns of internal and external stakeholders deepen mutual trust build consensus and
secure broad understanding and support. A dedicated sustainability column has been set up on the official website to
regularly update ESG initiatives practical achievements and benchmark cases establishing an efficient communication
bridge through transparent information dissemination.Stakeholder Expectations & Concerns Engagement & Responses
● Responding to national strategies
● Policy implementation
● Operating in compliance with laws and
● Compliance with laws and regulations
regulations
● Prudent operation
Governments/ ● Promoting economic growth
●
regulatory authorities Participating in local projects● Supporting local development
● Provision of jobs
● Promoting stable employment
● Enhancing business management
● Sustainable profitability
capabilities
● Standardizing corporate governance
● Optimizing internal compliance management
● Information disclosure standards
Shareholders and system
● Protection of shareholder rights and
investors ● Timely and accurate information disclosureinterests
● Convening shareholders' meetings
● Strengthening product quality control
● Ensuring project quality
● Customer satisfaction surveys
● Responding to customer needs
● Protecting customers' privacy
Customers ● Innovating engineering technologies
● Adhering to innovation-driven approaches
● Standardized and equitable employment
● Protecting legitimate rights and interests
● Improving the salary system
● Salary and benefits guarantees
● Strengthening employee training
● Talent cultivation mechanism
● Unblocking promotion pathways
Employees ● Career advancement and development
● Prioritizing employee health
● Ensuring occupational health and safety
● Safe production environment
● Standardizing procurement management ● Implementing open bidding procedures
● Complying with contractual agreements ● Make timely payments
Suppliers ● Maintaining stable cooperative relationships ● Long-term strategic partners
● Compliance with business ethics ● Upholding honesty and integrity
● Practicing win-win cooperation ● Collaborative negotiations
Partners
● Employee volunteer activities
● Focus community development
● Public welfare and charity activities
● Community philanthropy
Community and public ● Social cause support
● Cooperation and communication ● Seminars
● Industry-academia-research projects ● Academic communication
NGOs
122025 Environmental Social and Governance Report and Sustainability Report
Feature The "Three Transformations"
Forging China's Creation Tempering China's
Quality Elevating China's Brand
On May 10 2014 during an inspection of China Railway Engineering Equipment Group General Secretary Xi Jinping
delivered an important directive: "Promote the transformation from 'Made in China' to 'Created in China' from 'China
Speed' to 'China Quality' and from 'Chinese Products' to 'Chinese Brands'". This has charted the course and provided
fundamental guidance for China's high-quality economic development. In 2017 the State Council designated May 10 as
"China Brand Day".As the birthplace of General Secretary Xi Jinping's important directive on the "Three Transformations" and the origin of
"China Brand Day" CREC has over the past eleven years under the correct leadership of SASAC consistently borne in
mind General Secretary Xi's earnest instructions and transformed the "Three Transformations" directive into tangible
practices driving high-quality development. On May 10 2025 marking the eleventh anniversary of General Secretary
Xi's "Three Transformations" directive CREC unveiled its corporate values—"Creation Quality Brand"—providing a clear
answer to what kind of development the enterprise should achieve and how to realize high-quality growth. This initiative
not only demonstrates CREC's commitment to shouldering the responsibility of advancing the "Three Transformations"
but also galvanizes collective momentum to accelerate the building of a world-class enterprise.CREC consistently focuses on national priorities and corporate capabilities
Driving "Created advancing technological innovation and industrial innovation in a coordinated
in China" Through manner. It promotes both the transformation and upgrading of traditional industries and the growth of strategic emerging industries and future industries
Innovation vigorously develops a modern industrial system accelerates the cultivation and
development of new quality productive forces strives for greater self-reliance
and strength in high-level science and technology further enhances core
functions and competitiveness better leverages the "Three Roles" and aims to
become a "Three Vanguards".Upholding Quality CREC vigorously promotes the spirit of craftsmanship and integrates the value pursuit of “Craftsmanship Quality Meticulous Construction” into the entire
as the Foundation industrial chain including product design technological R&D engineeringto Forge “China construction operation services and other links. It continuously optimizes andQuality” improves the quality of products and services striving to erect a monument for
each project completed and become a model of century-lasting quality.CREC adheres to enhancing brand value as a key approach for value creation.Illuminating "China Centering on the "Belt and Road Initiative" it actively promotes the global
Brand" Through expansion of Chinese technologies standards and solutions striving to
Value Orientation establish China's high-speed railways bridges tunnels electrification systems
and equipment as "National Brand" representing China's image and world-
renowned "Golden Brand".
13Feature: The "Three Transformations": Forging China's Creation Tempering China's Quality Elevating China's Brand
The "Three Transformations"
Dadu River Railway Bridge (Plateau Railway): A New Passage Crossing
Natural Barriers
In May 2025 the steel girder closure of the Dadu River
Railway Bridge constructed by China Railway Major Bridge
Engineering Group was completed. Spanning 1293 meters
in total with a main span of 1060 m and a deck height
of about 385 m above the river surface it is the world’s
longest-span mountain railway suspension bridge and
a landmark project along the plateau railway route.The
project overcame technical and environmental challenges
delivering 9 scientific research programs developing 6
sets of first-of-a-kind equipment forming 20 construction
methods filing 81 patents (38 granted). Adopting steel-
based platforms and garden-style construction sites it
achieves coordinated development between engineering
construction and ecological protection.Chongtai Yangtze River Tunnel: A New Milestone
for Non-stop High-speed Railway Crossing of
the Yangtze River
In 2025 construction of Chongtai Yangtze River Tunnel
undertaken by China Railway Tunnel Group progressed rapidly.As a critical control project of the Shanghai-Nanjing-Hefei
High-speed Railway and a key node on the coastal corridor
of China’s national Eight Vertical and Eight Horizontal high-
speed rail network the tunnel has a total length of 14.25 km
and sets multiple world records: (1) World’s longest single-head
excavation at 11.3255 km; (2) World’s highest design speed
of 350 km/h for underwater tunnels; (3) Deepest Yangtze
River tunnel reaching 89 meters below the riverbed. Upon
completion it will drastically shorten travel times between
coastal cities; the journey from Chongming to Shanghai
Baoshan Station will take only 17 minutes enabling high-speed
trains to cross the Yangtze River without speed reduction.
142025 Environmental Social and Governance Report and Sustainability Report
Xi’an-Yan’an High-Speed Railway: A New Chapter
for the Old Revolutionary Base Areas in Northern
Shaanxi in the High-Speed Rail Era
On December 26 2025 the Xi’an-Yan’an High-Speed
Railway constructed with the participation of CREC was
officially opened to traffic. This milestone marks the entry
of the old revolutionary base areas in Northern Shaanxi into
the high-speed rail era injecting new impetus into the high-
quality economic and social development of the region.
15Feature: The "Three Transformations": Forging China's Creation Tempering China's Quality Elevating China's Brand
Antarctic Research Stations: Writing a New
Chapter in Polar Engineering Construction
S ince 2002 Ch ina Ra i lway
Construction Engineering Group
has dispatched 569 construction
personnel and joined Chinese
Antarctic expeditions 22 times
successfully undertaking key
tasks including maintenance of
the Great Wall Station expansion
and upgrading of Zhongshan
Station the construction of
supporting logistics facilities at
Taishan Station and construction
of Qinling Station continuously
writing new chapters in polar
engineering construction.Feilong Service Area (Nan-Heng
Expressway): A New Model for
Zero-carbon Demonstration
Practicing ful l- l ife-cycle low-carbon
concepts on the Nan-Heng Expressway
China Railway Transport developed the
themed Feilong Service Area with a
comprehensive zero-carbon operation
system. As of the end of 2025 Distributed
photovoltaic installed capacity: 850.81 kW;
Annual power generation: 950000 kWh;
Standard coal saved: 384 tons; Carbon
dioxide emission reduction: 746 tons.Featuring a vintage train-themed national
AAA scenic spot the service area was
included in the Practical Cases of Beautiful
Transportation Development released by
the All-China Environmental Protection
Federation presenting CREC’s innovative
solution for integrated transportation and
tourism development.
162025 Environmental Social and Governance Report and Sustainability Report
Padalarang Shield Machine: A New Monument for
China’s Exported Largest-diameter Shield Tunneling
Machine
On April 16 2025 the Padalarang Shield Machine (CREC No.1459)
— China’s largest-diameter shield tunneling machine exported
overseas developed by China Railway Construction Heavy
Industry — rolled off the production line. With a diameter of 15.7
meters and an overall length of approximately 113 meters it
integrates cutting-edge intelligent technologies and advanced
equipment. Key highlights include: (1) Unmanned high-precision
automatic cutter replacement robots cutting labor costs and
eliminating high-risk operations; (2) Online monitoring systems
for disc cutter wear and grouting rate addressing challenges
in tunneling through complex strata and settlement control;
and (3) Remarkably enhanced intelligence and automation in
construction processes.
17Feature: The "Three Transformations": Forging China's Creation Tempering China's Quality Elevating China's Brand
Hungary-Serbia Railway: A New
Benchmark for Alignment between
Chinese and European Standards
In 2025 construction of the Hungarian section of the
Hungary-Serbia Railway participated by China Railway
No.9 Engineering Group advanced steadily. Stretching
158.6 km with a design speed of 160 km/h the line connects
Budapest and Belgrade forming a golden corridor linking Central
and Eastern Europe. As a pioneering demonstration project aligning
Chinese railway technical standards with EU regulations it facilitates
infrastructure connectivity under the "Belt and Road Initiative".Guinea's Morebaya-Simandou Railway: A New
Benchmark for Chinese Heavy-Haul Railways
Adapted for Overseas Projects
The Morebaya-Simandou Railway is a crucial
supporting project for the large-scale mining of
Guinea's world-class Simandou Iron Ore Deposit
and for integrated sea-rail transport. Starting from
the Port of Morebaya and ending at the Simandou
Mining Area the railway traverses Guinea from west
to east. It passes through 12 prefectures across four
major regions (i.e. Kindia Mamou Faranah and
Kankan) and features 12 stations along the route.The main line spans 551.92 km with an additional
74 km of branch lines. Multiple subsidiaries of
CREC participated in the project's implementation
across the entire industrial chain covering survey
& design construction equipment R&D and
operation & maintenance. The entire railway line
adopts technical standards for Chinese heavy-
haul railway and utilizes a full set of independently
developed Chinese equipment. Tailored to Guinea's
local geological conditions and the demand for high-
volume transport these subsidiaries have created
a heavy-haul rail corridor with an annual transport
capacity of 220 million tons. This project represents
the innovative landing of a full-industry-chain
"Chinese solution" for long-distance heavy-haul
railways abroad serving as a benchmark example
of the coordinated "going global" of China's railway
technology standards equipment and operations.
182025 Environmental Social and Governance Report and Sustainability Report
Changtai Yangtze River Bridge: A New Benchmark for Integrated
Structural Design and Transport Functions
On September 9 2025 the highway
section of Changtai Yangtze River
Bridge — the world’s longest-span
cable-stayed bridge designed and
constructed by CREC — was officially
opened to traffic. As the first multi-
functional Yangtze River crossing
integrating expressways intercity
railways and ordinary highways the
bridge stretches 10.33 km in total
with a combined road-rail segment
of 5299.2 m. Achieving seamless
integration of structural forms and
transport functions it serves as a
vital transportation hub advancing
the integrated development of the
Yangtze River Delta region.
19Feature: The "Three Transformations": Forging China's Creation Tempering China's Quality Elevating China's Brand
As of the end of 2025
2 academicians of the Chinese Academy of Engineering; 2 National Outstanding Engineering Teams; 9
National Engineering Survey and Design Masters; and 12 nationally selected candidates under the Hundred
Thousand and Ten Thousand Talents Project
3 national-level laboratories (engineering research centers) and 1 national–local joint research center
61 provincial and ministerial-level R&D centers (laboratories); 10 postdoctoral research workstations; 21
nationally recognized enterprise technology centers; and 142 provincially and ministerially recognized
enterprise technology centers
132 National Science and Technology Progress and Invention Awards; 45 China Patent Awards; and 48029
national patents held
As of the end of 2025
A winner of a total of 5 China Quality Awards and nomination awards the highest national honor in the
quality field
A winner of 851 national-level quality engineering awards (including 46 National Quality Engineering Gold
Awards 253 Luban Prizes and 552 National Quality Engineering Awards)
As of the end of 2025
CREC was listed on the “2025 Top 100 Chinese Corporate Brand Value List” with a brand value of RMB
143.247 billion ranking 3rd in the construction industry 19th among central state-owned enterprises and
47th among Chinese enterprisesThe Hungary-Serbia Railway (an international project) was selected as one of the “2025 (8th) Cases ofChinese Enterprises’ International Image Building” by China International Communications Group
CREC won a total of 8 ITA Tunnelling Awards from the International Tunnelling and Underground Space
Association 1 Special International Honor Award from the International Federation of Municipal Engineering
1 International Project Management Silver Award and 1 International Engineering Project Excellence Award
202025 Environmental Social and Governance Report and Sustainability Report
Standardizing Corporate Governance
The Company adheres to the principle of "Two Unwavering Commitments". We strictly comply with laws and regulations
such as the Company Law of the People's Republic of China and the Securities Law of the People's Republic of China as
well as the regulatory rules of the Shanghai Stock Exchange and the Hong Kong Stock Exchange. We fully implement the
deployment requirements of the State-owned Assets Supervision and Administration Commission of the State Council
(SASAC) regarding deepening reforms and improving governance. Our goal is to promote the continuous standardized
and efficient operation of corporate governance.Corporate Governance Structure
The Company has established a governance structure comprising the Shareholders' Meeting the Board of Directors
and the Executive Management. The BOD fully exercises its role in "setting strategy making decisions and managing
risks". The Executive Management fulfills its role in "planning operations ensuring implementation and strengthening
management". Relying on the specialized operational system of standing committees the Company has built a decision-
making ecosystem characterized by a clear delineation of authority and responsibility as well as scientific and efficient
operations. This provides a solid governance foundation for strategic implementation risk prevention and control and
sustainable development.Strategy and Investment Committee
Shareholders' Meeting
Audit and Risk Management Committee
Board of Directors Remuneration and Assessment Committee
Nomination Committee
Executive Management
Health Safety and Environment (HSE) Committee
CREC's governance structure
Board of Directors (BOD) Operations
The Company focuses on promoting the transformation of the BOD from "tangible management" to "effective
governance". We continuously consolidate the foundation of corporate governance enhance the quality of BOD
construction and effectively fulfill the functions of the BOD.
1 Two Principles to be Consistently Upheld: Upholding the Party’s leadership over state-owned enterprises is a major political principle that must be consistently
followed; establishing a modern enterprise system is the direction of SOE reform which must also be consistently followed.
23Strengthening Foundations Through Excellence in Governance
Case CREC holds BOD construction promotion meetingIn November 2025 CREC held the “BOD ConstructionPromotion Meeting". The meeting comprehensively
deployed the next phase of Board construction
requiring the Board to effectively fulfill its functions
of setting strategy making decisions and preventing
risks implement targeted measures to standardize the
governance of our subsidiaries' BODs strengthen the
development of our external director teams providing
robust governance support for the Company's high-
quality development through the establishment of
high-caliber boards of directors.BOD construction promotion meeting
"Outstanding Board of Directors of Central Enterprises" honor by SASAC
(for 3 consecutive years)
"Best Practice Case of Listed Company Board of Directors" honor by CAPCO
(for 3 consecutive years)
Number of Resolutions and reports Number of Resolutions and reports
meetings held reviewed and approved meetings held reviewed and approved
11times 125 items
Board of Directors Strategy and
9 times 24 items
Investment
Committee
Audit and Risk 6 times itemsManagement 35 Remuneration 8 times 21 items
Committee and Assessment
Committee
Nomination 3 times 4 items Health Safety and Environment 3 times 3 items
Committee (HSE) Committee
242025 Environmental Social and Governance Report and Sustainability Report
BOD Diversity
In accordance with the listing rules and regulatory requirements of Shanghai and Hong Kong the Company has
formulated and implemented the Board Member Diversity Policy. During the director nomination and selection process
comprehensive consideration is given to factors such as gender age educational background and industry experience.This ensures the BOD meets the Company's strategic development needs for diverse skills and experience. As of the end
of 2025 the Company's BOD consisted of 7 directors of which female director accounted for 14%. The seven directors
possess professional knowledge and extensive industry experience relevant to the Company's business development.They cover diverse fields such as corporate management engineering management and financial accounting. They play
a crucial role in enhancing the decision-making efficiency and quality.Directors Number of female directors Number of independent
non-executive directors
7 persons 1 person 3 persons
BOD Independence
The Company strictly selects and appoints independent directors in accordance with the Articles of Association. Both
the number and background of independent directors comply with the regulatory rules of the listing jurisdiction. As
of the end of 2025 the Company had five non-executive directors accounting for more than half of the total Board
members. It also had three independent non-executive directors representing over one-third of the Board. Meanwhile
the Company has established specialized systems such as the Independent Director Management Regulations and the
Working System for Relevant Functional Departments Serving BOD Special Committees. These systems provide solid
institutional support for standardizing corporate governance operations safeguarding the lawful performance of duties
by non-executive directors and fully leveraging their role.BOD Capability Building
Based on the actual operational development needs and leveraging the professional expertise of directors the Company
regularly organizes BOD training research and exchange activities. This continuously strengthens the BOD's performance
capabilities. In 2025 focusing on key areas such as information disclosure market value management public opinion
response and compliance performance the Company arranged for directors to accumulate 31 attendances at thematic
training sessions. At the same time leveraging professional platforms including state-owned asset and securities
regulatory authorities the CAPCO renowned consulting firms and law firms the Company conducted systematic training.Training areas included strategic planning corporate governance macroeconomics the construction industry and anti-
corruption. This continuously enhances the professional competence and performance effectiveness of directors.Stimulate Management Vitality
The Company is deeply advancing the modernization of the state-owned enterprise governance system. We are
effectively transforming institutional strengths into governance efficacy and fully stimulating the internal drive of the
Executive Management to pursue business development. Focusing on institutional integration we closely align with the
Executive Management's functions of "planning operations ensuring implementation and strengthening management"
and optimize the mechanism for the Executive Management to report to the BOD. Focusing on personnel configuration
we have scientifically established the leadership structure fully staffed and strengthened the management team.This ensures members collaborate effectively and fulfill their duties efficiently while executing resolutions exercising
delegated authority and reporting on business operations regularly in accordance with regulations. Focusing on practical
results we have strengthened incentives and accountability to enhance the team's initiative and sense of responsibility.This drives the Company's high-quality development to a new level through high-performance governance.
25Strengthening Foundations Through Excellence in Governance
Safeguarding Shareholders' Equity
The Company strictly implements securities regulatory requirements. In accordance with the In 2025
Articles of Association the Rules of Procedure for Shareholders' Meetings and other relevant
regulations we convene shareholders' meetings in compliance with laws and regulations Number of Shareholders'
standardize procedures for all stages of the meetings and effectively safeguard the equity Meetings held
of minority shareholders.The Company has maintained sound and standardized information disclosure management 1 time
to effectively protect investors' right to know. In 2025 it revised a series of systems including
the Information Disclosure Management Measures the Provisions on the Administration
of Shareholding Changes of Directors and Senior Management and the Detailed Rules for Number of proposals
the Registration of Insiders . The Company has continuously consolidated accountability reviewed and passed
for information disclosure strengthened compliance and risk control throughout the entire
information disclosure process and kept improving the content and forms of information 20 items
disclosure. Adhering to the bottom line of "truthfulness accuracy completeness timeliness
and fairness" the Company has received an A rating in the Shanghai Stock Exchange’s
information disclosure assessment for 12 consecutive years. Meanwhile the Company has
further improved its investor communication mechanism and enhanced interaction through
multiple channels such as performance briefings and investor exchange meetings to respond
to investor concerns in a timely manner. In 2025 the Company held more than 80 seminars
and exchange meetings for domestic and overseas investors and 4 performance briefings
and disclosed 346 various announcements and circulars.The Company has always regarded market value management as a long-term strategic management practice to
enhance investment value and shareholder return capacity. It has advanced market value management in a standardized
and orderly manner by systematically strengthening internal management mechanisms and adopting a comprehensive
set of approaches. In 2025 the Company conducted seminars and special research on market value management for
its listed controlled companies. Focusing on institutional innovation pragmatic planning systematic promotion and
upgraded assessment the Company has built a long-term mechanism for market value management. It formulated the
market value management system issued the valuation enhancement plan released the market value management
scheme and improved the detailed assessment rules for market value management. Centered on institutional innovation
pragmatic planning systematic promotion and upgraded assessment the Company has promoted market value
management in a standardized regular and precise manner. In addition the Company completed the 2024 annual
dividend distribution and launched the 2025 interim dividend distribution for the first time. It steadily implemented the
plan to repurchase some A-share shares of the Company with RMB 800 million to RMB 1.6 billion as well as the plan to
increase holdings of CRCC Industry shares with RMB 160 million to RMB 300 million. These efforts facilitated the effective
implementation of the Action Plan for Quality Improvement Efficiency Enhancement and Emphasis on Returns and the
Valuation Enhancement Plan promoted the balanced improvement of the Company’s intrinsic value and market value
and actively safeguarded the legitimate rights and interests of shareholders and the long-term sustainable development
of the Company.CREC's 2024 annual general meeting of shareholders the first A-share category shareholders' meeting of
2025 and the first H-share category shareholders' meeting of 2025
262025 Environmental Social and Governance Report and Sustainability Report
Case Conducting a joint reverse roadshow on "Intelligent Construction +
Emerging Businesses"
From November 20 to 21 2025 CREC successfully held a joint reverse roadshow on "Intelligent Construction
+ Emerging Businesses" in Chengdu. This was done with its listed subsidiaries China Railway Hi-Tech
Industry Co. Ltd. and China Railway High Speed Electrification Equipment Corporation Limited. The event
attracted more than 30 investment institutions to participate in. Through on-site visits and discussions
it demonstrates CREC's core competitiveness in fields such as intelligent construction and high-end
equipment manufacturing and builds a bridge for market value management and communication with the
capital market.Joint reverse roadshow on "Intelligent Construction + Emerging Businesses"
"Class A" for information disclosure by the Shanghai Stock Exchange for the 2024-2025
fiscal year (for 12 consecutive years)
"Best IR Hong Kong-Listed Company" by New Fortune
"Tianma Award for Investor Relations Management of Listed
Companies" by Securities Times
"Best Practice in Investor Relations Management for Listed
Companies" honor by CAPCO
CAPCO's "2025 Outstanding Practice Cases for Earnings Briefings"
27Strengthening Foundations Through Excellence in Governance
Comprehensively Deepening Reforms
The Company fully implements the guiding principles of the Third and Fourth Plenary Sessions of the 20th Central
Committee of the Communist Party of China deeply carries out the campaign to deepen and upgrade the reform of state-
owned enterprises addresses development challenges enhances development vitality and strengthens development
advantages through reform and strives to build a new type of modern state-owned enterprise that is innovation-leading
functionally distinctive efficiently governed and full of vitality.Highlight Data
The Action Plan for Deepening and Enhancing Reforms was successfully concluded with all 426 main
tasks fully completed. Reform tasks at second-tier units totaling 7379 were also fully completed.An "A" rating was received in the SASAC' assessment of key tasks for the Deepening and Enhancement
of Reform in Central Enterprises moving up 14 places compared to the previous year.The "Three Systems" reform has been rated "Grade 1" by SASAC for two consecutive years.The study "Research on Pathways for Central Enterprises to Deepen Penetrative Supervision" was
awarded the First Prize in the "2025 Outstanding Achievements in the Reform and Development of
Chinese Enterprises" by the China Enterprise Reform and Development Society.Deepening "Three Systems" Reform
Adhering to a grassroots-oriented and performance-oriented approach we implemented the integrated requirements
of "standardization preferential treatment and incentives" strengthened the linkage between total payroll and
economic performance and optimized the assessment system of "one sector one policy; one enterprise one policy". We
comprehensively standardized the term system and contractual management of the Executive Management members. A
total of 3497 executive management members signed annual and term responsibility letters.China Railway No.2 Engineering Group special meeting on incentive mechanism construction and cadre talent work
282025 Environmental Social and Governance Report and Sustainability Report
Building Core Competitive Entities
The Company has thoroughly implemented the strategy of "Supporting the Outstanding and Strengthening the Strong"
fully advancing the development of "flagship enterprises" "specialized refined distinctive and innovative enterprises"
and "key third-tier companies". By strengthening resource allocation and innovating institutional mechanisms we have
comprehensively stimulated development momentum. At the same time we have resolutely phased out outdated
production capacity intensified efforts to turn losses into profits and address financial deficits and implemented
categorized measures with targeted efforts effectively improving development quality.Top 20 China Railway Third-Level Engineering Companies
1 China Railway Construction China Railway Electrification Engineering Group Fourth 2 Engineering Group First
Construction Co. Ltd. Engineering Co. Ltd.
3 China Railway No.4 Engineering 4 China Railway No.4 Engineering
Group Seventh Engineering Branch Group Fourth Engineering Co. Ltd.China Railway Construction
5 China Railway No.4 Engineering 6 Engineering Group Co. Ltd. North
Group First Engineering Co. Ltd.China Branch
7 China Railway No.4 Engineering 8 China Railway No.4 Engineering
Group Municipal Engineering Branch Group Fourth Engineering Co. Ltd.
9 China Railway Construction China Railway No.4 Engineering 10 Engineering Group Second
Group Eighth Engineering Branch
Construction Co. Ltd.
11 China Railway No.4 Engineering Group 12 China Railway First Group Xinyun
Construction Engineering Co. Ltd. Engineering Co. Ltd.
13 China Railway Construction Engineering 14 China Railway Tunnel Group No. 2
Group Co. Ltd. Shenzhen Branch Co. Ltd.
15 China Railway No.3 Engineering 16 Zhengzhou Engineering Co. Ltd. of Group Construction and Installation
China Railway Seventh Group
Engineering Co. Ltd.
17 China Railway Electrification Overseas Company of China Railway 18 Engineering Group Beijing
Seventh Group
Electrification Engineering Co Ltd.
19 China Railway First Group Electrical 20 China Railway No.5 Engineering
Engineering Co. Ltd. Group Second Engineering Co. Ltd.
29Strengthening Foundations Through Excellence in Governance
Strengthening Comprehensive Business Management
The Company has continued to implement the "Three-Year
Action Plan for Further Enhancing Comprehensive Business
Management and Reducing Debt". We are deeply advancing
the "Four Integrations" of finance commerce legal affairs
and procurement. This means the deep integration of financial
centralization commercial refinement legal risk control and
systematic procurement. Financial centralization management
has been fully rolled out. To date over 1200 financial centers
have been established serving nearly 20000 accounting
units. The treasury system has achieved interconnectivity with
legal affairs engineering management and other systems.The supply chain system continues to be optimized. The
cooperative model and support mechanisms for centralized
material procurement are constantly improved. The proportion Finals of the CREC Youth Comprehensive Business Management
of centralized procurement for steel and cement by two-tier Business Integration Competition and the 4th Youth Innovation and
material and trade enterprises has steadily increased. Efficiency Improvement Competition
Lawful and Compliant Operations
CREC rigorously implements all directives and requirements set forth by the State-owned Assets Supervision and Administration
Commission of the State Council (SASAC) regarding the development of law-based central enterprises. We strive for world-class
excellence in corporate legal management by continuously strengthening our corporate governance structure enhancing our
lawful and compliant operations and fostering a robust corporate legal culture.Internal Control and Compliance
The Company continuously reinforces its internal control and compliance
management fully leveraging the coordination role of the Leadership Group
for Rule of Law the Compliance Committee and the Major Operational Risk
Management and Control Committee. By advancing the development of legal
affairs compliance internal control and risk management the Company
provides a solid organizational and institutional safeguard for the Company's
lawful and compliant operations.The Company formulated and implemented the Plan on the Division of Annual
Key Tasks for the Development of the Internal Control System and Supervision
focusing on important areas key business activities and core positions.This plan further clarifies internal control and supervision responsibilities
and promotes the deep integration of internal control requirements into the CREC Legal and Compliance Training Session
entire business process ensuring that all control measures are effectively
implemented and form a closed-loop management system.Adhering to the principle of "business-oriented targeted education" we closely In 2025
align training with compliance risk points across various business areas and the
specific demands of each position. We regularly conduct specialized training
on system management and compliance management in order to cultivate cumulative number of participants in
a highly skilled and professional legal talent pool. This effort injects solid special legal compliance training: over
professional momentum into the Company's high-quality development.The Company actively cultivates a legal culture through meticulously organized 56900 persons
campaigns including the "Eighth Five-Year Plan for Legal Awareness" and "Civil
Code Publicity Month" integrating the principles of law-based governance into
daily management.
302025 Environmental Social and Governance Report and Sustainability Report
Risk Management
The Company rigorously implements the risk prevention and control
requirements of SASAC. It standardizes the entire process of risk identification
investigation and response focusing on establishing a long-term mechanism for
risk management and resolutely strengthen the defense line against risks.In 2025 the Company formulated and issued specialized management systems
for asset transactions and post-investment evaluations enhancing the risk
prevention and control system in key areas and strengthening its risk response
capabilities. It refined the risk identification assessment and dynamic monitoring
mechanisms and conducted in-depth analysis on five major operational risks:
real estate investment cash flow infrastructure investment international
operations and debt. Through dynamic monitoring risk alerts and closed-loop
management the Company achieved early identification early warning and
early resolution of risks ensuring the stable operation of the enterprise.CREC maintains stringent oversight of overseas operational risks by deepening
specialized governance and intensifying supervision of key international projects
and major risks. In August 2025 the Company conducted special inspections
across six critical projects in three countries to identify and rectify potential risks.At the same time the Company bolstered its overseas risk management talent
pool. Through regular targeted training initiatives we consistently elevate our
professional capacity to identify and mitigate risks in international operations.Information Security and Privacy
Protection
In strict compliance with Cybersecurity Law of the People's Republic of China
Data Security Law of the People's Republic of China and Personal Information
Protection Law of the People's Republic of China the Company prioritizes both
data protection and rational utilization. We continually refine our data asset
management framework and cybersecurity systems through internal regulations
such as the CREC Data Asset Management Regulations and CREC Network &
Information Security Management Regulations thereby establishing a robust
framework for data security and customer privacy protection while ensuring
secure efficient and stable operation of information systems.Data security and privacy protection across
the full lifecycle
The Company has established a data security control mechanism covering
the entire process of information collection storage transmission use and
destruction. The Company continuously strengthens the compliance of
information collection authorization the safety of data storage encryption the
security of transmission channels and the integrity of destruction processes
with special protection measures implemented for sensitive personal information
such as names ID numbers and mobile phone numbers. In 2025 the Company
conducted in-depth specialized investigations into data leakage risks focusing
on high-risk areas comprehensively enhancing the security defense level of
business data and personal information. In parallel the Company reinforces
endpoint security protection through the coordinated deployment of antivirus
software strengthening this critical front-line defense.
31Strengthening Foundations Through Excellence in Governance
Verifying whether Comprehensive testing
embedded SDKs improperly of the authentication
retain user privacy or and authorization
business-sensitive data mechanisms of business
system API interfaces
Data
leakage risk
investigation
Systematically screening
Verifying whether high-risk vulnerabilities
encryption storage such as unauthorized
requirements are strictly access and privilege
implemented during data escalation that may cause
storage and transmission. bulk data leaks
Integrated domestic-international security system development
To ensure efficient stable and secure cross-border data transmission the Company systematically advances the
development of an internal network transmission system for cross-border data. This includes coordinating the deployment
of core application systems network upgrades and renovations and full-link security enhancements. These efforts
have established a comprehensive data security and trade secret protection framework covering both domestic and
international operations. This not only provides strong support for the digital development of cross-border businesses but
also serves as a concrete action contributing to the national strategy of the "Belt and Road Initiative".Company-wide cybersecurity awareness and capacity enhancement
The Company places great emphasis on enhancing the information security awareness and practical capabilities of
all employees regularly conducting security awareness education and training. In 2025 we organized a Cybersecurity
Awareness Week campaign under the theme "Cybersecurity for the People Cybersecurity by the People." Adopting
an "online-led offline-coordinated" approach we promoted cybersecurity knowledge through diverse formats such as
knowledge competitions banner campaigns and scenario simulation drills. This reinforced the consensus that "everyone
is responsible for cybersecurity" strengthening the Company's cybersecurity defense.In 2025
there were
0 incidents related to the infringement of
customer privacy and information security
CREC Cybersecurity Awareness Week Activities
322025 Environmental Social and Governance Report and Sustainability Report
Upholding Business Ethics
The Company strictly complies with all applicable domestic and international laws regulations and regulatory
requirements concerning anti-monopoly and anti-unfair competition. We remain firmly committed to lawful and compliant
operations with integrity and we maintain a zero-tolerance policy towards violations of business ethics such as
commercial bribery corruption and unfair competition in order to uphold a fair and orderly market.Anti-Commercial Bribery and Anti-Corruption
We have established a comprehensive "six-in-one" oversight framework integrating Party Committee inspections
Discipline Commission supervision financial monitoring internal audits compliance reviews and employee democratic
oversight. This closed-loop system features clear accountability and efficient operations collectively advancing the long-
term mechanisms of "deterring preventing and eliminating corruption."
Strengthening institutional frameworks
The Company continuously improves its systems and procedures concerning anti-commercial bribery and anti-corruption.We rigorously implement a series of internal regulations including the Implementation Plan for Building an Institutional
Framework That Prevents Misconduct of CREC the Integrity Commitment System for Leading Personnel of China
Railway Group Limited (Trial) the Implementation Measures for Establishing a Comprehensive Oversight Framework for
Conduct Integrity and Anti-Corruption of CREC . These clearly define the ethical standards and codes of conduct for both
the Company's leader and all employees rigorously regulating the exercise of power. In the same time the Company
rigorously investigates and handles cases related to corruption using these cases as a basis to promote reform and
improve governance. This continuous effort fosters a clean and upright business environment.Deepening targeted governance in key areas
For critical domains like engineering projects and bidding processes the Company develops and refines targeted
governance plans ensuring accountability across all levels. By identifying the prominent contradictions and common
problems existing in related fields a list of issues is established. The management weaknesses and institutional gaps are
accurately identified and comprehensive rectification and improvement measures are systematically implemented.In full compliance with SASAC's 2025 Cross-Border Corruption Governance Guidelines the Company organized a
leadership group meeting to report case dispositions and take key initiatives. Focusing on the problem rectification
the Company proactively supervises relevant departments and affiliated entities in the implementation of corrective
measures. Targeted on-site assessments and supervisory reviews have been carried out at overseas projects to
strengthen governance against cross-border corruption and obtain continuous progress in this area.
33Strengthening Foundations Through Excellence in Governance
Strengthening whistleblowing and rights protection mechanisms
CREC has implemented policies including the Implementation Measures for Discipline Inspection Organizations to Handle
Complaints and Reports and to Supervise Case Management and the Implementation Measures for the Complaint
Reporting Responsibility System. These frameworks ensure that reporting channels remain consistently accessible
while all cases are addressed in strict accordance with applicable regulations and disciplinary standards. This approach
ensures the effective exercise of supervisory rights by all employees and stakeholders. All subsidiaries of the Company
have established disciplinary inspection departments to strengthen the management of anti-corruption complaints and
reporting. Strict measures are in place to protect the personal privacy and physical safety of whistleblowers and any
breaches of confidentiality resulting from negligence or misconduct are subject to rigorous accountability and disciplinary action.In 2025 local judicial authorities concluded 15 corruption cases involving management personnel of affiliated enterprises with
the individuals concerned held criminally liable in accordance with the law.Fostering an integrity-driven corporate culture
The Company strengthens its anti-bribery and anti-corruption compliance culture through diverse initiatives. These include
conducting targeted integrity education programs producing educational videos such as Confessions and Warnings and
Straying into Corruption: A Lasting Alarm and establishing integrity education centers. Through these ongoing efforts the
Company fosters a culture where ethical conduct is deeply embedded in organizational values and employee mindset.In 2025 the Company continued to improve its regular and long-term education mechanisms. Party organizations at all
levels carried out 11029 sessions of education on the Party Constitution Party regulations and disciplinary rules and 2447
sessions of warning education reaching over 400000 Party members and cadres. These efforts enhanced all staff’s
awareness of integrity and compliance as well as their professional competence in performing duties.China Railway First Group built the "Breeze Along the Road" Integrity Culture Base in Xi'an to support the development of an
"Integrity-driven CREC"
Anti-Unfair Competition
The Company consistently integrates the principle of fair competition In 2025
throughout its entire production and operational processes resolutely
eliminating monopolistic practices vicious competition rent-
seeking violations and other behaviors that undermine the market the Company had
environment. It effectively transforms compliance requirements into
binding constraints that standardize market conduct. The Company
actively supports the "anti-involution" initiative jointly launched by 0 lawsuits or major administrative penalties
enterprises in the domestic construction industry. We firmly reject arising from unfair competition practices."involution-style" vicious competition and improper project acquisition
through unethical means such as bribery. By consciously upholding
a fair and orderly market competition environment we contribute to
the development of a healthy and sustainable industry ecosystem.
342025 Environmental Social and Governance Report and Sustainability Report
Responding to Climate Change
Guided by the United Nations Framework Convention on Climate Change
(UNFCCC) and the Paris Agreement CREC fully aligns with the decisions and
arrangements of the CPC Central Committee and the State Council on carbon
peaking and carbon neutrality. The Company systematically assesses and
scientifically addresses climate-related risks and opportunities continuously
enhancing its climate resilience. In doing so the Company is committed to
contributing its expertise to drive green and low-carbon development within the
industry and to global climate governance efforts.Governance
The Company fully implements the CREC Guiding Opinions on Accelerating
Green Development and Promoting the Construction of a Beautiful China. It
has established a Leading Group for Climate Change Response and Energy
Conservation & Emission Reduction and developed a collaborative and efficient
working system with clearly defined responsibilities and targets. Through
dedicated initiatives the Company advances key tasks related to the Beautiful
China vision ensuring solid progress and tangible outcomes across all areas.Leading Group for Climate Change Response and Energy
Conservation & Emission Reduction
The Chairman serves as Group Leader the President serves as
Deputy Group Leader the Vice President in charge of energy
conservation and environmental protection serves as Executive
Deputy Group Leader and heads of relevant headquarters
departments serve as members.Office (Department of Safety Quality and Environmental
Supervision)
The head of the Department of Safety Quality Environmental
Protection and Supervision concurrently serves as Director."Dual Carbon" R&D Center and Green/Low-
Carbon Departments & Management
Including the headquarters Infrastructure Research
Institute Planning and Design Institute Construction
Management Centre Product Equipment Centre
Bui ld ing Mater ia ls Technology Centre Urban
Operations Centre and Industrial Development
Centre.CREC climate change governance structure
37Low-Carbon Practices for Lucid Waters and Lush Mountains
中国中铁气候变化治理架构
● Responsible for organising leading and coordinating the Company’s climate change energy conservation and
emission reduction-related work
● Responsible for formulating the Company’s climate change energy conservation and emission reduction work
plans and overall deployment
● Responsible for reviewing major matters related to climate change energy conservation and emission
reduction
● Responsible for assessing climate change energy conservation and emission reduction-related work
commending advanced collectives and individuals and holding accountable major violations
● Responsible for the daily organization coordination and implementation of the Leading Group for Climate
Change Response and Energy Conservation & Emission Reduction
● Provide professional support to the Leading Group for policy research technological breakthroughs and
achievement transformation
382025 Environmental Social and Governance Report and Sustainability Report
Strategy
The Company closely monitors national policy trends related to its dual-carbon goals and climate change. It actively
tracks extreme weather events in its operating areas and routinely identifies climate-related risks and opportunities
through industry benchmarking and consultations with internal and external experts. Based on these assessments the
Company systematically evaluates potential impacts on its business model and value chain developing forward-looking
response measures. At the same time it rigorously implements the Carbon Peaking Action Plan of China Railway Group
Limited setting binding targets and strengthening statistical monitoring and evaluation of energy conservation and
environmental protection efforts with clear rewards and penalties. Through strict supervision at all levels the Company
ensures responsibilities are fulfilled and results are achieved driving the execution of its climate strategy and advancing
its green and low-carbon transition.Climate change risk identification results
Risk category Risk factor Risk description Impact on business model Impact on value chain Expected impact Potential financial timeframe impact Response measures
Increased frequency and severity of ● Construction material transportation Establish extreme weather early ●
extreme weather events (e.g. typhoons disruptions and supply chain delays warning mechanisms
●●
Acute risk extreme precipitation blizzards) may lead Project schedule delays and ● to construction site shutdowns temporary increased contract default risks Reduced subcontractor performance
Short to medium Revenues and Enhance investment in on-site disaster
capacity term costs prevention facilitiesfacility damage equipment failure ●
Heightened post-disaster restoration costs Procure construction all risks insurance casualties and project delays ● and business interruption insurance
● Conduct climate resilience design
assessments
Altered rainfall patterns and extreme climate ● Shortened construction windows ● Rising costs for foundation treatment ● Strengthen pre-project climate risk Physical risk variations such as prolonged droughts for plateau western and
coastal projects slope support and related processesChronic risk frequent regional floods and permafrost Medium to long
surveys
Costs
● Long-term precipitation increases landslide term ● Expand business areas such as urban degradation impact construction conditions ● Increased difficulty in foundation risks on slopes regeneration focusing on "ecological and geological stability construction in certain regions restoration and urban repair" sponge
city development and comprehensive
coastal zone management.● Establish corporate-level carbon
● emission monitoring platforms
Carbon pricing increases mandatory carbon Traditional high-energy- ● Real-time carbon emission monitoring
●
Policy and quota allocation stricter green building consumption construction required during construction processes Implement green construction
regulatory risks standards and inclusion of construction models face constraints while Medium term Costs standards
carbon emissions in regulatory oversight the proportion of green low-
● Carbon footprint assessment must be
integrated at the design stage ● Participate in carbon market pilots carbon projects rises to explore carbon asset operation
methodologies
● Supply chains require simultaneous ● Establish a green construction
upgrades of equipment and materials innovation center
High initial investment in low-carbon ● Increased R&D investment
●●
Technical risk transition technologies and challenges in and equipment renewal Technical personnel need retraining for Short to medium Costs Collaborate with universities on low-
technology adaptation expenditures transition term carbon construction technology R&D
● Prolonged technical validation cycle in the ● Implement demonstration projects to
pre-project phase promote proved technical pathways
●
Transition risk Implement centralized procurement
● Heightened concentration of upstream and strategic partnerships
Sustained price increases in raw materials ● Increased difficulty in cost material suppliers ●
Market risk due to carbon cost increases resource control Short to medium Costs Increase the proportion of recycled
constraints or green premiums ● Need for enhanced supply capacity of term aggregates and solid waste utilization● Project profit pressure green building materials ● Optimize design to reduce material
consumption
● Publish annual ESG reports
Heightened stakeholder focus on ESG ● ESG rating downgrades may
●
performance may trigger negative public prompt climate-risk-averse Projects require public disclosure of Short to medium Financing Establish robust ESG performance ● Reputation risk sentiment impacting corporate image and investors to reduce or withdraw environmental performance data term opportunities evaluation systems
financing capacity investments ● Enhance communication with media
and communities
39Low-Carbon Practices for Lucid Waters and Lush Mountains
Identification of climate risks and opportunities
Guided by Part D of the HKEX ESG Reporting Guide and the Implementation Guidance for Climate-related Disclosures
the Company applies scenario analysis over short- medium- and long-term timeframes. To systematically identify
climate-related risks and opportunities it assesses factors including their probability duration of impact and financial
significance ensuring alignment with its core business operations and development.Risk category Risk factor Risk description Impact on business model Impact on value chain Expected impact Potential financial timeframe impact Response measures
Increased frequency and severity of ● ● Construction material transportation Establish extreme weather early
extreme weather events (e.g. typhoons disruptions and supply chain delays warning mechanisms
Acute risk extreme precipitation blizzards) may lead
● Project schedule delays and ●
●
to construction site shutdowns temporary increased contract default risks Reduced subcontractor performance
Short to medium Revenues and Enhance investment in on-site disaster
capacity term costs prevention facilitiesfacility damage equipment failure ●
Heightened post-disaster restoration costs Procure construction all risks insurance casualties and project delays ● and business interruption insurance
● Conduct climate resilience design
assessments
Altered rainfall patterns and extreme climate ● Shortened construction windows Rising costs for foundation treatment ● ● Strengthen pre-project climate risk Physical risk variations such as prolonged droughts for plateau western and
coastal projects slope support and related processes
surveys
Chronic risk frequent regional floods and permafrost Medium to long Costs
● Long-term precipitation increases landslide term ● Expand business areas such as urban degradation impact construction conditions ● Increased difficulty in foundation risks on slopes regeneration focusing on "ecological and geological stability construction in certain regions restoration and urban repair" sponge
city development and comprehensive
coastal zone management.● Establish corporate-level carbon
● emission monitoring platforms
Carbon pricing increases mandatory carbon Traditional high-energy- ● Real-time carbon emission monitoring
●
Policy and quota allocation stricter green building consumption construction required during construction processes Implement green construction
regulatory risks standards and inclusion of construction models face constraints while Medium term Costs standards● Carbon footprint assessment must be
carbon emissions in regulatory oversight the proportion of green low- integrated at the design stage ● Participate in carbon market pilots carbon projects rises to explore carbon asset operation
methodologies
● Supply chains require simultaneous ● Establish a green construction
upgrades of equipment and materials innovation center
High initial investment in low-carbon ● Increased R&D investment
●●
Technical risk transition technologies and challenges in and equipment renewal Technical personnel need retraining for Short to medium Costs Collaborate with universities on low-
technology adaptation expenditures transition term carbon construction technology R&D
● Prolonged technical validation cycle in the ● Implement demonstration projects to
pre-project phase promote proved technical pathways
●
Transition risk Implement centralized procurement
● Heightened concentration of upstream and strategic partnerships
Sustained price increases in raw materials ● Increased difficulty in cost
Market risk due to carbon cost increases resource control
material suppliers Short to medium ● Costs Increase the proportion of recycled
constraints or green premiums ● Need for enhanced supply capacity of term aggregates and solid waste utilization● Project profit pressure green building materials ● Optimize design to reduce material
consumption
● Publish annual ESG reports
Heightened stakeholder focus on ESG ● ESG rating downgrades may
●
Reputation risk performance may trigger negative public prompt climate-risk-averse
● Projects require public disclosure of Short to medium Financing Establish robust ESG performance
sentiment impacting corporate image and investors to reduce or withdraw environmental performance data term opportunities evaluation systems
financing capacity investments ● Enhance communication with media
and communities
402025 Environmental Social and Governance Report and Sustainability Report
Climate change opportunity identification results
Opportunity Climate-related Impact on Expected Potential
type opportunities business model impact financial Response measurestimeframe impact
● Establish a construction
Recycling and reuse waste classification
of construction Promote green and resource recovery
waste (e.g. construction and Short to Costs & system
concrete steel circular economy medium term expenditures
reinforcement models ● Promote recycled
excavated soil) aggregate applications
in key projects
Resource
efficiency
Implement
standardized and
Adopt higher- industrialized ● Develop a digital project
efficiency construction to management platform
production shorten project Short to medium term Costs ● Advance integrated processes (e.g. BIM timelines "design-construction-
collaboration) reduce energy manufacturing" models
consumption and
labor dependency
Utilize low-
carbon energy Promote green ● Adopt photovoltaic
sources (e.g. on- construction site microgrids
site photovoltaic development ● Procure electric
power supply and establish Medium term Costs equipment and
electric construction low-carbon participating in fossil-
Energy sources machinery pilot benchmark to-electric conversion
hydrogen energy projects demonstration projects
equipment)
Enter new markets Expand high- ● Undertake projects such
(e.g. green value-added as national ecological
infrastructure business domains demonstration zones
near-zero carbon and transition Short to sponge cities and
parks ecological from traditional medium term Revenues wetland restoration
restoration projects construction to ● Advance R&D and
Market climate-resilient city "green solution application of innovative
initiatives) provider" building materials
Participate in
renewable energy ● Serve the construction
projects and Expand of national clean energy
implement energy- renewable energy bases
saving measures engineering ● Build an industry-leading
(e.g. construct wind business Short to Revenues integrated service power photovoltaic segments medium term provider for offshore
Resilience and energy to enhance wind power construction
storage power corporate carbon and a specialized
stations establish performance marine equipment
green offices and manufacturer
production bases)
41Low-Carbon Practices for Lucid Waters and Lush Mountains
Financial impact analysis of climate risks and opportunities
The Company routinely monitors and assesses the potential chain-wide impacts of extreme
weather events on production and operations. Through measures such as enhancing
meteorological warning mechanisms conducting emergency drills for extreme weather and
optimizing construction organization plans the Company has comprehensively improved
its capabilities in responding to and managing climate-related physical risks. Preventive
expenditures related to on-site protection and equipment reinforcement are properly
accounted for in corresponding project management costs. During the reporting period the
Physical Company did not experience any major work stoppages asset impairment losses or other
risks incidents caused by extreme weather events. The related risks do not have a material impact
on the Company's financial data for the current or next reporting period. In the medium to
long term to address persistent physical risks arising from rising global average temperatures
the Company will steadily increase investments in protective upgrades and operational
maintenance for key production facilities and core operational processes.The Company is steadily advancing the green transformation and upgrade of low-carbon
construction. In 2025 specialized investments focused on areas such as high-energy-efficiency
equipment renewal & replacement pilot promotion of electric construction machinery large-
scale application of low-carbon concrete and construction of intelligent carbon emission
monitoring systems. Related expenditures are properly recorded in corresponding project
operating costs and have not adversely affected the Company's overall operating performance.Transition In the medium to long term the Company will continue to increase capital investments in
risks the research and application of low-carbon construction techniques green upgrades of core
equipment and innovation in low-carbon products and services steadily hedging against
potential risks related to the low-carbon transition.The Company deeply leverages major development opportunities brought by global low-
carbon transition and China's dual-carbon strategy. On one hand it continuously enhances
construction productivity and resource recycling levels through large-scale promotion of green
businesses such as prefabricated buildings construction waste recycling and renewable
energy infrastructure development thereby expanding growth space for green businesses.On the other hand by popularizing energy-efficient equipment and piloting distributed
Climate
opportunities photovoltaic power supply at construction sites the Company effectively reduces energy
consumption and operational costs. These initiatives not only help control long-term operating
expenditures but also drive growth in green orders solidifying the Company's sustainable
competitive advantages.
422025 Environmental Social and Governance Report and Sustainability Report
Strategy and measures
The Company has established a robust climate risk emergency management system by formulating and issuing the
Emergency Response Plan for Safety Quality Ecological Environment and Disaster Accidents (Incidents). This plan
provides comprehensive guidelines for the entire process of hazard identification risk assessment prevention and
early warning emergency response post-incident management support mechanisms and training exercises related to
climate-induced disasters and ecological risks. It establishes a closed-loop management mechanism for extreme weather
and climate disaster response significantly enhancing the Company's capabilities in climate risk emergency handling
and resilience-based prevention and control. At the same time the Company actively expands climate-resilient green
business sectors such as ecological restoration and urban regeneration ("dual urban renewal") sponge city development
and comprehensive coastal zone management. Leveraging core engineering capabilities it empowers cities and regions
to enhance climate adaptation capacities proactively addressing prominent environmental challenges including urban
flooding ecological degradation and coastal erosion induced by climate change. While strengthening ecological security
barriers the Company continuously broadens growth pathways for green and low-carbon businesses.The Company continuously improves its top-level design and institutional framework for green and low-carbon
development. It has formulated and issued the CREC Guidelines on Accelerating Green Development to Promote the
Construction of a Beautiful China the CREC Carbon Peaking Action Plan the Energy Conservation and Emissions
Reduction Supervision and Management Measures and the 14th Five-Year Plan for Energy Conservation and Emissions
Reduction. These documents systematically deploy green and low-carbon development pathways focusing on core
business scenarios while synergistically utilizing green financial instruments coordinating key initiatives including efficient
resource recycling clean energy substitution and operational energy efficiency improvement.The Company has fully implemented the "Energy Conservation and Ecological Environmental Protection Statistical
System" (MRV System) which integrates core functions such as energy conservation environmental protection and low-
carbon reporting green development evaluation and report management. For the first time this system enables direct
online reporting from hundreds of tier-3 subsidiaries. Utilizing this system the Company achieves online aggregation
intelligent analysis dynamic monitoring and trend forecasting for energy consumption and carbon emission data. This
substantially improves data completeness timeliness and accuracy effectively advancing the Company's energy and
carbon management toward a fully digitalized process characterized by "monitorability traceability and assessability".The Company continuously strengthens the development of green and low-carbon talent teams and enhances company-
wide capabilities. It regularly conducts specialized training on environmental protection and low-carbon operations
consistently reinforcing green development awareness across all employees and improving professional competencies
throughout the environmental and low-carbon work chain. In low-carbon technology innovation the Company leverages
the CREC Infrastructure Green and Low-Carbon Research Center platform to conduct in-depth fundamental research
on carbon accounting methodologies and low-carbon transition technological pathways. It continuously refines green
construction standards and comprehensively strengthens whole-life-cycle energy conservation and carbon reduction
assessment and control capabilities for engineering projects providing solid technical support for the Company's high-
quality green and low-carbon development.Case Establishing an "Accounting -Evaluation" System for Carbon Emissions from
Metro Construction to Facilitate Green Transformation and Upgrading
China Railway (Shanghai) Investment conducted research on an "accounting -evaluation" system for carbon
emissions to address the high energy consumption in metro construction. Through policy analysis and field
surveys covering diverse conditions and construction techniques the project team accurately identified major
emission sources and established a carbon emission factor database for metro construction an accounting
model and an evaluation index system enabling precise carbon measurement and tiered management of
carbon emissions. After the implementation of this system individual projects are projected to reduce carbon
emissions by over 15% significantly enhancing green construction standards.
43Low-Carbon Practices for Lucid Waters and Lush Mountains
Case "Zero Emissions + Intelligent Driving": Electric Flatbed Trucks of China
Railway First Group Co. Ltd. (CRFG) Empower Green Metro Construction
To tackle the high energy consumption and emissions in metro tunnel construction CRFG independently
developed intelligent electric flatbed vehicles for transportation. Utilizing lithium iron phosphate batteries
and a 48V low-voltage power supply system the vehicles achieve zero exhaust emissions and low-noise
operation fundamentally improving the tunnel construction environment. Featuring dual battery packs and
an intelligent power management system the vehicles achieve a comprehensive energy saving rate of 26%.The integrated PLC intelligent control technology enables real-time operational monitoring and automatic
fault alerts effectively enhancing equipment reliability and construction efficiency. The equipment has
been deployed at scale in metro projects across Nanjing Suzhou Shanghai and other cities supporting the
construction of over 300 kilometers of track beds while reducing CO2 emissions by approximately 900 tons.comprehensive energy saving supporting the construction while reducing CO2 emissions
rate of of over by approximately
26% 300 kilometers of 900 tons
track beds
Case Green Finance Empowerment: Leveraging Low-Carbon Technology
Innovation to Unlock New International Project Opportunities
The Company actively explores synergies between green finance and low-carbon technologies using green
credit instruments to empower energy-saving and low-carbon technology innovation. Through the Green
and Low-Carbon Infrastructure Research Center of CREC the Company conducted in-depth exchanges
with Asian Development Bank (ADB) and Azerbaijan Railways regarding the electrification project of
Bilajari-Yalama and Baku–Boyuk Kesik railways systematically showcasing CREC's technical expertise and
engineering experience in railway electrification and energy-efficient as well as low-carbon construction.The project actively sought a special green and low-carbon loan from Asian Development Bank. Guided
by internationally recognized green finance standards the project aimed to precisely align low-carbon
technological solutions with financing mechanisms. This cooperation strengthened the Company's
green and low-carbon information disclosure while enhancing sustainable competitiveness in line with
international standards.
442025 Environmental Social and Governance Report and Sustainability Report
Risk and Opportunity Management
The Company continuously monitors the impact of climate change on operations integrating climate-related
risks into its risk management framework.Climate risk and opportunity management process:
Based on identification results comprehensive assessments of climate-related risks
Prioritization and opportunities are conducted across two dimensions: "likelihood of occurrence" and
of risks and "potential impact on operations finances and strategy". Taking into account industry
opportunities characteristics and project type variations and supplemented by external expert input
risks and opportunities are categorized and prioritized to define key focus areas.Building on prioritization results the Company evaluates the adaptability of existing strategies
Climate and business models under various climate scenarios identifying critical vulnerabilities
resilience and growth potential. By incorporating climate change factors into medium-to-long-term
assessment development planning the Company dynamically adjusts business development layouts
and project management models continuously enhancing corporate climate resilience.Identification of For high-priority risks and opportunities qualitative assessment and quantitative analysis
financial impacts are conducted to evaluate potential financial impacts under different time horizons with
of material risks particular focus on critical financial matters such as major project budgets and insurance
and opportunities expenditures thereby providing data-driven decision support.Development and Based on assessment results differentiated response strategies and action plans are
implementation of
response strategies formulated integrating relevant measures into the entire project lifecycle management
and measures from preliminary planning to design construction operation and maintenance.
45Low-Carbon Practices for Lucid Waters and Lush Mountains
Indicators and Targets
The Company fully implements the national dual-carbon strategy by conducting comprehensive carbon inventories
through a combination of sampling audits and self-reported data from business units. Based on these findings we
continuously strengthen our energy conservation and emission reduction management system by setting scientific
quantitative indicators phased targets and clear pathways for carbon reduction.Short-term targets (by 2026) Medium-term targets (by 2027)
Achieve a 3.9% reduction in CO2 emission intensity Each year the Company se lects 100 green
by 2026 compared to the 2025 baseline. construction technology demonstration projects to
promote the research development and application
of energy-saving and low-carbon technologies
es tab l i sh ing rep l i cab le emiss ion reduct ion
models. The Company fully implements a "dual-
control" mechanism for total carbon emissions
and emission intensity incorporating carbon
management indicators into corporate performance
evaluation systems. This approach drives the deep
integration and coordinated advancement of green
transformation and high-quality development.In 2025 the Company's CO2 emissions per RMB 10000 of revenue (at comparable prices) were 0.13 tons of CO2
equivalent a decrease of 5.2% compared to the previous year. Compared with the “14th Five-Year Plan” baseline of 0.16
tonnes of CO?e per RMB 10000 of revenue the cumulative reduction reached 18.2%. The annual reduction rate exceeded
SASAC's 2025 target of 3.89% CO2 emission reduction for central enterprises. The cumulative reduction rate significantly
surpassed SASAC's "14th Five-Year Plan" overall target of 18% CO2 emission reduction for central SOEs demonstrating
remarkable achievements in green and low-carbon development.Indicator 2025 Unit
Total GHG emissions (Scope 1 + Scope 2) 14154000 tons of CO2 equivalent
Scope 1 GHG emissions 6120704 tons of CO2 equivalent
Scope 2 GHG emissions 8033268 tons of CO2 equivalent
Investment in GHG reduction funds 661.50 million RMB
The Company continues to enhance the Scope 3 GHG accounting monitoring and management system progressively
integrating it into the overall GHG emissions management framework. Given the extensive upstream and downstream
chains and broad coverage of engineering projects complete statistical conditions are currently unavailable for certain
Scope 3 categories. After comprehensive assessment and in accordance with the relevant exemption clauses of the
HKEX's ESG Reporting Guide Scope 3 GHG emissions data will not be disclosed for the 2025 reporting period. The
Company will steadily advance related statistical accounting and disclosure efforts in subsequent phases.
462025 Environmental Social and Governance Report and Sustainability Report
Strengthening Environmental Management
CREC actively implements the green development philosophy and has established a comprehensive environmental
management system that spans all organizational levels the entire value chain and the full lifecycle of its
operations. The Company reinforces closed-loop management of environmental risks and integrates ecological and
environmental protection requirements throughout all aspects of its production operations and project development
processes. Through systematic green management measures the Company has achieved a synergistic balance
between high-quality development and ecological conservation.Environmental Management System
The Company strictly complies with applicable laws and regulations including the Environmental Protection Law of the People's
Republic of China and the Regulations on the Administration of Environmental Protection for Construction Projects . It has established
an environmental management system covering the entire lifecycle from project planning and design to construction and operation
and maintenance while implementing a management system characterized by centralized leadership tiered accountability full
employee participation and closed-loop control. The Company has developed a robust ecological and environmental monitoring and
supervision system conducting systematic identification of environmental factors and risk assessments for its on-going construction
projects and operational sites. It strengthens the pollution control in all stages of production and operations and incorporates the
compliant discharge targets for both hazardous and non-hazardous waste into its routine management. In addition the Company has
established and continuously improved the environmental performance evaluation reward and accountability mechanism mandating
that environmental performance be rigorously incorporated into project performance assessments and that the environmental
responsibility be implemented at all levels. The Company has obtained ISO 14001 Environmental Management System certification with
eight subsidiaries recognized as national-level Green Factories. In 2025 the Company's environmental protection investment reached
RMB 1.938 billion demonstrating strong and effective environmental management performance.Environmental Risk Management
The Company consistently adheres to the principles of "giving priority to prevention while combining prevention with treatment and
source management" and has established a comprehensive environmental risk management system that spans the entire business
chain and full project lifecycle to proactively prevent and effectively respond to various ecological and environmental risk incidents. The
Company strictly implements the environmental impact assessment system for construction projects ensuring rigorous environmental
compliance review prior to project commencement. It continuously improves a normalized closed-loop mechanism for identifying and
remediating ecological and environmental risks strengthening risk prevention and control at an early stage. The Company reinforces
the responsibility for ecological and environmental risk management at all levels and systematically identifies environmentally sensitive
factors in project regions and river basins. It places particular focus on the seven major river systems including the Yangtze River
and the Yellow River strengthening targeted environmental risk prevention and control in key areas such as wastewater treatment
industrial production and non-coal mining operations. The Company has established a comprehensive emergency response system
for environmental incidents covering typical scenarios such as major pollution source leaks hazardous waste disposal accidents and
water contamination events. The system clearly defines the emergency organizational structure response procedures information
reporting mechanisms and resource assurance measures forming a full-process closed-loop emergency response framework. The
Company regularly organizes specialized environmental emergency drills and skills training programs continuously enhancing frontline
personnel's capabilities for risk identification and practical emergency response.During the reporting period the Company did not experience any environmental emergencies did not incur any significant
administrative penalties from environmental authorities for environmental violations and was not subject to any related criminal
liability. Overall environmental risk remained under control.Case Identifying Root Causes of Hazards and Strengthening Environmental Safeguards
For its National Highway 109 New Line Expressway Project China Railway Investment Group advanced its efforts in
environmental safety hazard identification and control established a closed-loop mechanism of "identification-filing-
correction-closure and implemented the system of patrol inspection and hazard identification for key positions. Runoff
collection systems emergency containment ponds and crash barriers were installed in ecologically sensitive waterway
sections supported by dynamic monitoring through the control center. An emergency response system led by the GeneralManager was established forming a full-process risk control model of “front-loaded hazard identification follow-upengineering controls and underpinning emergency preparedness.”
47Low-Carbon Practices for Lucid Waters and Lush Mountains
Case Establishing a Tiered Response Mechanism to Comprehensively Enhance
Response Capabilities for Environmental Emergencies
China Railway No.2 Engineering Group has formulated and issued the Comprehensive Emergency Response Plan
for Safety Quality Ecological Environment and Disaster Incidents (Events) to ensure the standardize and efficient
handling of safety quality environmental and disaster-related emergencies and to enhance overall emergency
response capability in line with corporate and project conditions. The Company systematically conducts ecological
and environmental risk analysis and assessment clearly defining core principles and operational requirements
for emergency management. At the same time the Company has established dedicated emergency response
organizational structures clarifying responsibilities across all levels and positions and reinforcing accountability for
emergency management. On this basis it has scientifically defined graded emergency response levels standardize
full-process response procedures detailed requirements for emergency handling and post-incident recovery and
comprehensively strengthened emergency support measures ensuring closed-loop efficient operation across the
entire emergency response chain.Environmental Training and Awareness Promotion
The Company has established a comprehensive multi-tiered and normalized training and awareness promotion system for
ecological and environmental protection covering the personnel at all levels including management and frontline personnel.With a focus on key topics such as environmental laws and regulations energy conservation and carbon reduction expertise
and advanced green construction technologies the Company regularly organizes specialized training programs and policy
communication activities to comprehensively enhance employees' professional capabilities and performance in fulfilling
environmental responsibilities. Aligning with key events such as the National Energy Conservation Publicity Week and National
Low-Carbon Day all affiliated units widely promote the green development philosophy to foster deep-rooted awareness of
environmental protection and low-carbon development through a variety of online and offline approaches including thematic
training sessions knowledge competitions thematic awareness campaigns signing initiatives and low-carbon experience
activities.Environmental Awareness Campaign of China
Railway No. 9 Group through Training Sessions
and Promotional Posters
China Railway First Group launched the publicity campaign
themed "Energy Conservation & Efficiency Enhancement
Innovation-led Renewal".
482025 Environmental Social and Governance Report and Sustainability Report
Reducing Pollutant Emissions
CREC strictly complies with national laws and regulations including the Air Pollution Prevention and Control Law the Law
on the Prevention and Control of Water Pollution and the Law on the Prevention and Control of Environmental Pollution
by Solid Waste. The Company has issued the Special Action Plan for Environmental Protection Enhancement Inspection
and Rectification of CREC along with a series of dedicated institutional documents covering construction dust control and
construction waste disposal continuously improving its full-process pollution discharge management system. To reduce
the release of major pollutants such as exhaust gas wastewater solid waste and noise the Company has optimized
its technical pathways strengthened the operation of facilities and promoted green construction projects as part of its
efforts to reduce the environmental impact of its production and operations.Air Emissions Management
The Company's air emissions primarily come from construction and production activities including boiler combustion
steel structure processing sandblasting and grinding and coating and spraying operations. The main pollutants involved
include particulate matter (smoke dust) nitrogen oxides (NOx) and volatile organic compounds (VOCs).The Company adheres to the principles of "source reduction process control and end-of-pipe treatment" and
systematically advances the comprehensive treatment of air emissions. At the source control stage measures such as
optimizing the capacity structure and implementing low-NOx retrofits for gas-fired boilers are adopted to effectively
reduce carbon dioxide and nitrogen oxide emissions. For particulate matter (smoke and dust) measures including
covering water spraying installation of dust removal equipment and enclosed operations are implemented to effectively
reduce dust generated during transportation storage construction and production processes. For VOCs management
the Company installs activated carbon systems and paint mist filtration systems on production lines to continuously
improve VOCs collection and treatment efficiency thereby effectively reducing air emissions.In 2025
Air emissions Sulfur dioxide (SO2) emissions Nitrogen oxide (NOX) emissions
51.56 tons 0.55 tons 5.33 tons
Volatile organic compound (VOCs) emissions Particulate matter (smoke and dust) emissions
11.66 tons 34.01 tons
49Low-Carbon Practices for Lucid Waters and Lush Mountains
Welding fume purifiers are installed during the rebar cage welding and fabrication
processes of Xiong'an-Shangqiu High-Speed Railway project of China Railway Sixth Group
Case Full-chain Control from Source to End: China Railway Tunnel Group
Achieves Coordinated Reduction of Exhaust Emissions and Dust
China Railway Tunnel Group continued to reduce
exhaust emissions from construction machinery by
phasing out outdated high-energy-consumption
equipment and enhancing maintenance to optimize
engine performance thereby reducing emissions at
source. For dust control it extensively implemented
comprehensive measures including fully enclosed
mixing stations welding fume purifiers intelligent mist
cannons and enclosure spray systems effectively
suppressing dust from construction. Notably the Significant Reduction of Particulate Matter
prevention system that integrates "spraying + sprinkling Concentration at the Boundary by China Railway
Tunnel Group through an Intelligent Mist Cannon
+ vehicle washing" was applied to multiple projects
reducing the average particulate matter concentration
at the boundaries by approximately 65% significantly
improving regional air quality.
502025 Environmental Social and Governance Report and Sustainability Report
Wastewater Management
The Company strictly implements a full-process control mechanism characterizedby “rainwater and wastewater diversion clean and contaminated streamseparation classified collection graded treatment and recycling” integrating Wastewater discharge
wastewater management throughout the entire construction and production
process. Construction sites are fully equipped with tertiary sedimentation systems 82432600
ensuring that production wastewater is treated to meet the discharge standards
or is recycled for reuse. For specialized scenarios such as tunnel construction the tons
Company innovatively applies advanced technologies including tunnel wastewater
treatment and reuse equipment significantly improving the water recycling
efficiency and reducing the total wastewater discharge.Zero Discharge of Production and Curing Wastewater: Lixian Beam Yard
Case of China Railway No. 3 Engineering Group Establishes Water Resource
Recycling System
Shixiong Railway Lixian Beam Yard of China Railway No. 3 Engineering Group innovatively implemented an
integrated water resource recycling system featuring "source collection - process treatment - intelligent
reuse". By constructing a comprehensive drainage network a wastewater treatment station a multi-
stage sedimentation and water storage facility and an intelligent spray system for curing it achieved
zero discharge of production and curing wastewater. Through automated separation of sand from gravel
wastewater purification and rainwater recovery treated water quality meets curing requirements
achieving over 95% water resource reuse rate. In 2025 245 beam casting units were completed saving
approximately 21000 cubic meters of groundwater through the beam curing process alone while reducing
water material and labor costs delivering significant economic and environmental benefits.Water resource reuse rate over
95%
Lixian Beam Yard of China Railway No. 3 Engineering Group
China Railway Tunnel Group's closed-loop management system for tunnel
excavation wastewater "collection - treatment - testing - reuse"
51Low-Carbon Practices for Lucid Waters and Lush Mountains
Waste Management
The Company adheres to the principles of "reduction resource utilization and harmless treatment" comprehensively
strengthening full-process management of construction waste.Includes waste concrete steel offcuts and excavated rock spoil. The Company reduces
waste generation by optimizing construction planning promoting prefabricated construction
and enhancing on-site waste classification and collection while actively advancing resource
utilization. For example Class III surrounding rock spoil is crushed and screened for reuse as
subgrade fill or concrete aggregates; scrap steel is centrally collected and reprocessed into
structural reinforcement for small components; and concrete debris is reused as base material
Non-hazardous for site hardening.waste
Includes waste engine oil used paint containers waste batteries and waste catalysts. The
Company strictly complies with the Standard for Pollution Control on Hazardous Waste
Storage. Dedicated temporary storage facilities for hazardous waste are established with
clear labeling and record-keeping systems in place. All hazardous waste is entrusted to
licensed professional entities for transfer and disposal and an electronic receipt system is
Hazardous implemented to ensure full traceability and closed-loop management.waste
Hazardous waste
emissions intensity disposal rate
1888 tons 0.018 kg/RMB 10000 100%
non-hazardous waste
emissions intensity disposal rate
4857700 tons 0.044 ton/ RMB 10000 100%
Case "Big Capacity Processor" of China Railway Hi-Tech Industry Corporation
Limited Solves Shield Muck Disposal Challenge
The Integrated Engineering Muck Eco-processing System
of China Railway Hi-Tech Industry Corporation Limited
processes up to 1200 m3 of shield muck per day on the
average. Through processes including continuous belt
conveyor transportation multi-stage screening high-
pressure spraying sand washing cyclones and filter
press dewatering muck is efficiently separated with
840 m3 of coarse medium and fine sand aggregates
and 360 m3 of dewatered mud cakes produced. The
sand aggregates are used for concrete mixing and shield Integrated Engineering Muck Eco-Processing System of China Railway Hi-Tech Industry Corporation Limited
grouting while the mud cakes can be processed into non-
fired bricks with a resource utilization rate of over 70%
and waste transformed into valuable resources.
522025 Environmental Social and Governance Report and Sustainability Report
Noise Management
The Company strictly implements the Emission Standard of Environment Noise for Boundary of Construction Site and
integrates noise control into its green construction management system. It adopts a four-pronged approach incorporating
"technical noise reduction layout optimization time-based control and monitoring with early warning" to effectively
minimize noise impacts during construction activities.Case Electric Girder Crane of China Railway No. 10 Engineering Group Makes
Beam Lifting "Efficient and Quiet"
The MDEL200 electric-drive tire-type girder crane was introduced for the dedicated Line Project of Ningbo
Hub Meishan Railway of China Railway No. 10 Engineering Group. With a total power of 200 kW and
energy transfer efficiency of 85% the equipment saves 10%-30% energy compared to traditional hydraulic
drive equipment while controlling operational noise below 85 decibels effectively improving the acoustic
environment during construction. The equipment featuring pure electric drive enables zero emissions
and no oil leakage significantly improving energy utilization efficiency and the environment at the site
providing strong support for green and intelligent construction.Operational noise controlled below 85 decibels
China Railway No.4 Engineering Group equips
workers with noise-reducing earplugs
53Low-Carbon Practices for Lucid Waters and Lush Mountains
Optimizing Resource Utilization
CREC integrates the principles of conservation intensive use and green and low carbon philosophies into the full process
of production operations and project construction systematically promoting the efficient use and recycling of energy
water and materials thereby reinforcing the foundation for green development.Energy Management
The Company thoroughly implements the Regulations on Supervision and Management of Ecological Environment
Protection and Energy Conservation adhering to a systematic digital and precise management philosophy to
continuously advance energy conservation and carbon emission reduction and improve the efficiency of energy
utilization. In fields of engineering projects and transportation infrastructure the Company actively promotes the
adoption of renewable and clean energy technologies such as photovoltaic wind power and air-source heat pumps
facilitating the implementation of low-carbon transportation and infrastructure projects. With source control as the core
the Company accelerates the phase-out of high-energy-consuming and outdated electromechanical equipment through
equipment upgrades and technological innovations. Priority is given to procuring energy-efficient construction machinery
and office facilities that meet the national energy efficiency standards and renewable energy engineering equipment is
extensively used to reduce the energy consumption intensity from the outset.Total energy consumption Energy intensity Gasoline consumption
3944602 0.036 tons/RMB 10000 443736 tons
tons of standard coal
Diesel consumption Coal consumption Natural gas consumption
1329860 tons 116060 tons 64930000 m3
Heat consumption Electricity consumption Electricity intensity
45590 GJ 9578.41 GWh 87.56 kWh/RMB 10000
Renewable energy consumption Solar energy Purchased green electricity
355014106504248510
tons of standard coal tons of standard coal tons of standard coal
Energy consumption target for 2026
2.9% reduction in energy intensity (at comparable prices) from 2025
542025 Environmental Social and Governance Report and Sustainability Report
Case Photovoltaic Power Generation at Tunnels — Exploring a New Green Energy
Path for Transportation Infrastructure
China Railway Investment Group promoted the photovoltaic power generation project at the tunnels on
the Huanren-Ji'an Expressway and Yanji-Changchun (Puchang Section). In the project the central isolation
belts at tunnel entrances and exits and highway green belts are utilized with photovoltaic modules
installed at 27 tunnel substations. A "PV power generation + DC power distribution" mode is adopted and
the generated electricity is directly connected to the tunnel lighting DC power supply system for immediate
use with the proportion of surplus electricity fed into the grid strictly controlled below 20%. A total of 2713.15
kW of PV capacity was installed along the entire section with an average annual power generation of
approximately 2.903 million kWh. The project is expected to save 1161.2 tons of standard coal annually
reduce CO2 emissions by 2894.2 tons a year and cut electricity costs by RMB 1033300 per year. This
project provides a replicable practical model for promoting renewable energy and building a low-carbon
transportation system in the transportation infrastructure sector.Photovoltaic Power Generation Project for Huanren-
Ji'an Expressway and Yanji-Changchun Expressway
55Low-Carbon Practices for Lucid Waters and Lush Mountains
Water Resource Management
The Company strictly implements the requirements of the Statistical Report for Energy Conservation and
Ecological Environment Protection of Central State-Owned Enterprises issued by SASAC. It has established a
comprehensive water resource statistics and monitoring system to standardize water usage and consumption
accounting and strengthen the consistency and accuracy of data management.The company is committed to continuously reducing water consumption in construction. In practical
construction operations the Company actively implements water-saving measures widely adopting water-
efficient automatic sprinkler systems multi-stage sedimentation tanks and recycled water recovery facilities.These measures help the Company achieve efficient reuse of construction wastewater in processes such
as concrete curing vehicle washing and site dust suppression significantly improving the water recycling
efficiency. Treated reclaimed water is prioritized in each project to minimize the consumption of fresh water.In 2025 the Company's water for construction projects is primarily sourced from municipal water supply with
stable water quality and quantity. Applicable water sources were adequately guaranteed and no difficulties
in water access were reported.Water consumption Water intensity
371839400 m3 3.40 m3/RMB 10000
Recycled water volume
148736000 m3
Case Intelligent Atomized Curing Device of China Railway No. 2 Engineering Group
The Beam Yard of China Railway No. 2 Engineering Group
innovatively developed an intelligent curing device for
box girder webs which atomizes water into 50-100μm
particles through high-pressure atomization technology.Featuring a profiling spray structure the device allows
full-coverage low-evaporation precision curing. The
device is equipped with a water storage tank and a
circulating water replenishment system reducing water
conveyance losses and achieving a 34.8% reduction in
water consumption per curing cycle. Recycled water
is used for non-production purposes like site dust
Intelligent Atomized Curing Device
suppression realizing cascaded use and promoting the
transformation of railway precast component curing
towards green efficient and fine practices.
562025 Environmental Social and Governance Report and Sustainability Report
Circular Economy
The Company deeply integrates the concept of circular economy into its entire business chain and adheres
to the full-process management principle of source reduction process control and end-of-pipe recycling.Through green construction and prefabrication technologies waste generation is minimized at the source
while idle resources and construction solid waste are increasingly recovered and reused to comprehensively
enhance the resource utilization efficiency and maximize the synergistic benefits of energy conservation
reduced resource consumption pollution reduction and carbon emission mitigation.Case Shield Tunneling Machine Remanufacturing - Building a New Model for
Circular Utilization of High-End Equipment
Through China Railway Engineering Services Co. Ltd. CREC has established four major shield tunneling
machine remanufacturing bases in Qingyuan (Guangdong) Deyang Yixing and Xinxiang. It has built a
circular chain featuring "product application remanufacturing and reapplication". Waste shield tunneling
machines/TBMs undergo cutter head repair main drive upgrading as well as diameter expansion or
reduction modification to cater to the needs of new projects. Over the past four years a total of 290 shield
remanufacturing operations have been completed covering more than 40 cities across China with over 3000
cutters repaired with a single maintenance of key components can save tens of thousands of yuan in costs.In 2025 CREC's case titled Developing Shield Tunneling Machine Remanufacturing to Realize the Circular
Reuse of Old Shield Tunneling Machines and Implement the Concept of Green Development was included in
the 2025 Compilation of Excellent Sustainable Development Practices of Central State-Owned Enterprises
issued by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).It serves as a practical benchmark for the green transformation of high-end equipment.The Company has Remanufacturing Covering more than
5 shield machine 290 units completed in the 40 cities across China
remanufacturing bases past four years
Case Luban Platform Builds a Closed-loop Model of "Lease & Reuse + Idle &
Waste Disposal" to Promote Circular Utilization of Materials
The China Railway Procurement E-commerce Platform (Luban Platform) focuses on the circular economy
by establishing two digital platforms: a leasing service platform and a surplus and obsolete materials
trading platform addressing bottlenecks in internal material circulation. Since its launch various units
have cumulatively issued over 600 internal leasing requests and completed more than 20000 transactions
for the disposal of surplus and obsolete materials enabling efficient reuse of idle resources and reducing
inventory backlog and duplicate procurement. The two platforms operate in synergy to form a closed-loop
model of “leasing and reuse + surplus and obsolete material disposal” achieving full lifecycle management
of resources. Through platform-based operations the Company has significantly reduced material waste
and lowered procurement and disposal costs.
57Low-Carbon Practices for Lucid Waters and Lush Mountains
Green Office
The Company actively promotes low-carbon energy-efficient and green office work systematically implementing
technological upgrades and management optimization such as intelligent lighting control real-time energy monitoring
and renewable energy applications. Paperless meeting systems are widely adopted effectively supporting the dual goals
of reducing energy consumption and carbon emissions while enhancing the management efficiency.Case CREC Headquarters Taps into Energy-saving Potential Through Digital and
Intelligent Technologies
CREC Headquarters has vigorously advanced systematic energy-saving upgrading:
Strengthening routine energy management
● By adopting fine management measures such as time-based temperature control for air conditioners
enforcing the "lights off when leaving" rule and promoting smart energy-saving sockets the
Headquarters has effectively reduced energy consumption for daily operations.Upgrading intelligent lighting systems
● The office buildings are fully equipped with the NiCS intelligent lighting system featuring high-
efficiency LED light sources and sensors to enable automatic and intelligent lighting control greatly
cutting energy use for lighting.Building a smart energy supervision system
● Supported by the energy management platform real-time metering and data analysis are carried out
for key energy-consuming areas including overall electricity consumption air conditioning systems and
data centers so as to tap into potential for energy conservation and carbon reduction.Promoting the application of renewable energy
● Green energy such as solar power has been introduced to supply clean electricity for daily building
operations.Through a series of technical transformations and management optimizations the Company achieved a
year-on-year decrease by approximately 10% in annual energy consumption saving RMB 800000 in energy
costs and setting a headquarters-level green building benchmark.Case Smart Water Conservation Practices of CREC Headquarters
CREC Headquarters continues to advance fine water resource management. An intelligent irrigation system
has been introduced to automatically adjust irrigation time and frequency according to weather conditions
and plant water requirements enabling remote and smart control of landscape irrigation. Equipped with
concealed micro-sprinklers arranged among plants the precision sprinkler irrigation system reduces water
consumption by more than 30% compared with traditional methods. A rainwater harvesting system has
been built to collect rainwater from flower boxes flower beds and reservoirs which is reused for cleaning
exterior walls and fences as well as landscape irrigation. Reclaimed water is widely used for toilet flushing
and plant maintenance. Through the coordinated operation of energy-saving equipment and intelligent
systems the average monthly water saved during the peak period of usage of reclaimed water ranges from
80 to 230 tons.
582025 Environmental Social and Governance Report and Sustainability Report
Promoting Green Construction
Aligning with the goal of low-carbon transformation of transportation infrastructure CREC embeds the green construction
principle into the entire project lifecycle and systematically advances the green and intelligent upgrades of engineering
projects. By promoting clean energy low-carbon technologies and energy-saving equipment the Company deepens the
deployment of renewable energy infrastructure and establishes benchmarks for low-carbon construction leveraging
breakthroughs in key technologies such as smart construction and resource recycling in major projects. The Company
also emphasizes evaluation-driven construction and the demonstration and guidance roles of projects. In 2025 100 green
model projects and 51 energy-saving and low-carbon technologies were recognized with multiple projects achieving
industry awards for green construction collectively enhancing the green construction capabilities of the entire system.Green Design
The Company consistently adheres to a source-oriented design philosophy of "prioritizing green development and
advancing low-carbon transition" driving its transition toward green intelligent and high-quality development. With its
core objectives centered on resource conservation and intensive utilization environmental friendliness and intelligent
efficient operations the Company has systematically advanced its innovation in green design. Leveraging its science
and technology innovation system the Company carries out coordinated technological breakthroughs across the entire
value chain with a focus on key areas such as intelligent surveying green planning and design integrated utilization of
renewable energy and smart operation and maintenance. It aims to establish a green construction technology system
and standards framework covering the full lifecycle of "R&D - design - construction - operation and maintenance"
thus empowering lifecycle green and low-carbon management through upstream design innovation and driving the
coordinated green transformation upstream and downstream the industry chain.Case CREC Establishes a Green and Low-Carbon Research Center to
Build a Source of Green Infrastructure Technologies
CREC has set up the Research Center for Green and Low-Carbon Infrastructure developing one of China's
first pioneering bases for original green and low-carbon technologies. Working in synergy with national
key laboratories such as the Intelligent and Green Bridge Construction Laboratory and the Tunnel Boring
Machine and Intelligent Maintenance Laboratory the Center has built a national-level green and low-
carbon innovation platform covering basic research technological breakthroughs and achievement
transformation. Throughout the year the Company held hundreds of seminars special training sessions
and other events on green and low-carbon development. It entered into strategic cooperation with a
number of top research institutions and universities to accelerate the research and industrial application of
green technologies fostering an open collaborative innovation ecosystem where industry academia and
research are deeply integrated.Technical Seminar on Green and Low-Carbon Development of Infrastructure held by CREC
59Low-Carbon Practices for Lucid Waters and Lush Mountains
Municipal Environmental Construction Co. Ltd. of CREC Innovates
Case Corrugated Steel Support Technology to Advance the Implementation of
Green Design
Municipal Environmental Construction Co. Ltd. of CREC a subsidiary of China Tiegong Investment &
Construction Group Co. Ltd. has developed an innovative construction technology for shafts with
corrugated steel support plates addressing the drawbacks of traditional concrete shafts such as
long construction cycles and high resource consumption. This technology adopts prefabricated arched
corrugated steel support plates and H-shaped steel reinforcing rings and applies a prefabricated top-down
construction method enabling materials to be disassembled and recycled. Compared with conventional
processes it eliminates procedures including steel bar binding and formwork erection shortening
the construction period by approximately 60%. As extensive concrete pouring is unnecessary during
construction raw material costs have been reduced by around 65%. Except for the bottom supports all
other components are reusable substantially improving resource utilization efficiency and cutting overall
costs by up to 70% delivering both optimized green design and enhanced economic benefits.Construction period shortened by Raw material costs reduced by Overall costs cut by
approximately approximately up to
60%65%70%
Case Low-Carbon Technologies Empower Green Development of Railway Stations
China Railway Eryuan focuses on the railway station building sector leveraging advanced technologies
such as big data and artificial intelligence to transform the full lifecycle of design construction and
operations. Through multi-dimensional innovations in smart energy digital operation and maintenance
intelligent facilities and green construction the Company injects technological momentum into railway
stations building a new ecosystem that is safe efficient green and comfortable.Planning and Design Drawing of Kunming West Railway Station by China Railway Eryuan Engineering Group
602025 Environmental Social and Governance Report and Sustainability Report
Green Construction
Guided by the principles of "resource conservation environmental friendliness safety and efficiency and low-carbon
intelligence" the Company independently develops its core green construction technologies and integrates the
requirements for green and low carbon development in the entire construction process. It comprehensively promotes
green construction coordinates its efforts in energy conservation and carbon reduction pollution prevention and control
and resource recycling and has developed a number of benchmark green projects in the industry facilitating the large-
scale application of green construction technologies.Case Chongqing East Railway Station: China’s First Demonstration Project
Integrating Station City and Landscape
The Chongqing East Railway Station project constructed by China
Railway is the nation’s first demonstration project integrating
“station city and landscape” and a key node in Chongqing’s “mi-shaped” high-speed rail network. It adheres to the highest three-
star green building standard to implement green construction
practices. The project adopts ETFE double-layer single-cavity
skylights achieving high levels of natural daylighting while
reducing roof self-weight and lowering structural energy
consumption. The waiting hall features an integrated island-type
air-conditioning system—the first of its kind in railway station
buildings in Southwest China—providing 360-degree air supply and
reducing cooling energy loss by more than 20% compared with Exterior View of Chongqing East
conventional systems. Combined with scenario-based intelligent Railway Station
lighting systems for precise light control and supported by smart
construction site management the project advances lean low-
carbon construction establishing a benchmark green and low-
carbon transport hub.Case An Innovative Energy Recovery Device Helps China Railway Shanghai
Group Co. Ltd. Build a Green and Low-Carbon Demonstration Project
Constructed by China Railway Shanghai Group Co. Ltd. the Wanhua Chemical (Penglai) Seawater
Desalination Project has adopted an innovative energy recovery device to recycle surplus energy from the
discharged water of the reverse osmosis system reducing energy consumption for the system. The project
utilizes circulating cooling seawater from a neighboring power plant minimizing the impact of water intake
on marine ecosystems. The first-phase project has a daily freshwater production capacity of 100000 tons
saving more than 36 million tons of freshwater resources annually effectively alleviating regional water
shortages. The project was recognized by the China Association of Environmental Protection Industry as a
“Model Project for Ecological and Environmental Protection in 2025” and received multiple provincial-level
environmental protection demonstration honors. It has set an industry benchmark for the integration of
industrial wastewater resource utilization and green construction.Seawater Desalination Project
61Low-Carbon Practices for Lucid Waters and Lush Mountains
A 125-km Green Corridor: The Huizhou-Qingyuan Section of Shantou-
Case Zhanjiang Expressway Earns International Recognition for Outstanding
Environmental Performance
In 2025 the Huizhou-Qingyuan Section
of the Shantou-Zhanjiang Expressway
constructed with the participation
o f Ch i n a R a i l w a y M a j o r B r i d g e
Engineering Group was awarded the
only global environmental prize at the
IRF Global Road Achievement Awards
(GRAA) 2025 establishing itself as an
international model for green highway
deve lopment . St re tch ing 125 .28
kilometres in length the Huizhou-
Qingyuan Section passes through more
than 60 scenic areas that feature high
ecological sensitivity.Shantou–Zhanjiang Expressway
Case China Railway First Group Co. Ltd. Builds a Benchmark for Green
Construction of Renewable Energy Projects in Sandy Gobi and arid Regions
The 6.1 GW renewable energy project of Huadian located at the northern foot of the Tianshan Mountains
in Xinjiang undertaken by China Railway First Group Co. Ltd. is China's first supporting project for
outbound transmission channels of large-scale renewable energy bases in sandy Gobi and arid regions
including wind power photovoltaic power energy storage and booster station construction. Located in an
ecologically fragile area the project adhered to a green and low-carbon philosophy adopting advanced
technologies such as AI-based UAV inspection photovoltaic cleaning robots and BIM+GIS digital twins
to establish a full-process green construction system and improve resource utilization efficiency. Carbon
footprint was reduced through green electricity procurement achieving synergy between engineering
construction and ecological protection. The project was awarded the Excellent Practice in Green Project
Management by the Project Management Institute (PMI) of the United States. It was also selected into
multiple national innovative cases featuring low-carbon and smart power development setting a green
benchmark for the construction of renewable energy projects in desert areas.
6.1 GW renewable Energy Project of Huadian at the Northern Foot of the Tianshan Mountains in Xinjiang
622025 Environmental Social and Governance Report and Sustainability Report
Protecting Natural Ecosystems
CREC actively implements the green development philosophy and deeply integrates ecological and biodiversity protection
into its corporate strategy and full lifecycle project management to promote the harmonious coexistence between
project construction and natural ecosystems. It has established a closed-loop ecological management system covering
the entire project lifecycle and achieved a 100% pass rate of environmental impact assessment for completed projects
for consecutive years demonstrating notable performance in environmental compliance management. Upholding the
principle of "protection first" the Company rigidly incorporates biodiversity conservation into its full-process project
management to minimize the ecological disturbance from construction activities. It also conducts regular ecological
protection training and publicity programs to build company-wide consensus on ecological conservation and continuously
strengthen ecosystem protection.Pre-Construction Phase Construction Phase Post-Construction Phase
The Company engages The Company continues to increase The Company carries out land
professional institutions to its investment in ecological reclamation and ecological
conduct environmental impact protection adopts environmentally restoration in accordance
assessments and based on the friendly equipment and optimizes with relevant regulations to
assessment results formulates construction processes and effectively reduce ecological
scientifically sound and effective methodologies to minimize the impacts and maximize the
protection plans. It takes measures impacts on water bodies air protection and restoration of
for soil and water conservation quality vegetation and wildlife. the natural environment.biodiversity conservation and For temporary land use it strictly
vegetation protection based prepares and implements land
on coordinated planning and use and reclamation plans with a
implements the requirements for particular focus on strengthening
scientifically justified site selection the protection for environmentally
standardized spoil disposal sensitive areas such as densely
upfront protective measures and populated areas and nature
reutilization of resources. reserves.Case China Railway No. 2 Engineering Group Establishes a Full-Cycle Ecological
Control System to Protect Rare Plateau Species
In its plateau railway projects China Railway No. 2
Engineering Group has built a whole-process management
system covering preliminary assessment construction
control and ecological restoration rigorously implementing
protection measures for wild fauna flora and natural
habitats. For the projects professional ecological protection
teams were established to conduct ecological surveys in
cooperation with local authorities to map the distribution of
rare animals plants and ancient and famous trees. Targeted
plans were formulated featuring labeled management
designated protection zones and optimized access roads
to avoid ecologically sensitive areas. During construction
informational signs were installed and dedicated personnel Wild Flora Protection
arranged for routine patrol and monitoring. Through
scientific site selection preemptive protection ecological
compensation and continuous supervision the projects
achieved coordinated progress between construction and
ecological protection safeguarding regional biodiversity.
63Low-Carbon Practices for Lucid Waters and Lush Mountains
Case Yellow River Mengjin Reconstruction Project: Making Way for Endangered Species
China Railway (Shanghai) Investment implemented stringent
biodiversity protection measures in the reconstruction project of
the G208 Erxi Line in Mengjin. Prior to construction comprehensive
ecological surveys were conducted accurately identifying 22
nationally protected species including the black stork whooper
swan and wild soybean and dedicated protection plans were
developed. During construction strict controls were placed on
work boundaries with measures such as low-noise equipment
suspension of nighttime operations vehicle speed limits and horn
restrictions to minimize ecological disturbance. More than 100
ecological protection signage boards were installed and over 20
company-wide training sessions were conducted. Construction
schedules were dynamically adjusted to avoid peak migration
periods of wintering birds. The project achieved zero casualties Identification of Endangered Flora and
of wildlife with no significant impact on the habitats of rare Fauna at the Project Site
species maintaining stable regional ecological quality and enabling
coordinated development between highway construction along the
Yellow River and ecological protection.Case Yichun Luming Mining Co. Ltd. under China Railway Resources Group
Builds a Green Mine Benchmark
Yichun Luming Mining Co. Ltd. under China Railway Resources Group was included in the provincial-level green
mine catalogue in 2023 and shortlisted for the national recommended list of green mines in 2025. Integrating
smart mine development with the philosophy of green development the Company realized fine resource
management. Intelligent technologies boosted resource utilization efficiency and enhanced environmental
monitoring capacity. By the end of 2025 the Company had covered 76000 cubic meters of soil on waste dumps
and tailings ponds sowed grass across 19.31 hectares and planted 15000 trees. Supported by a monitoring
system the ecological environment within the mining area improved significantly.The Company had covered Sowed grass across Planted
76000 cubic meters of soil 19.31 hectares 15000 trees
on waste dumps and tailings ponds
From Black-Necked Crane Isolation Zones to Native Vegetation Restoration:
Case Multiple Measures Taken by China Railway Seventh Group to Protect the
Fragile Zoigê Ecocystem
The Xicheng Railway project constructed by China Railway Seventh Group is located adjacent to the Zoigê
National Wetland Nature Reserve. Prior to construction comprehensive wildlife surveys were conducted and
isolation zones were established within 500 meters of black-necked crane breeding sites with construction
suspended during breeding periods. Wildlife protection warning signs were installed along the entire line and rareand protected plant species were safeguarded through fencing and transplantation measures. The “three stepsone method” approach was applied to protect alpine meadows achieving a turf stripping and reinstatement
rate of 95%. Native vegetation was used for habitat restoration with over 120000 square meters of habitat
rehabilitated. Batching plants were equipped with wastewater treatment systems enabling 100% wastewater
reuse with zero discharge. Vegetation coverage in restored areas exceeded 85% and the frequency of bird activity
increased significantly effectively protecting the fragile plateau ecosystem.
642025 Environmental Social and Governance Report and Sustainability Report
Serving National Strategies
CREC consistently upholds its responsibility to serve national priorities In 2025
proactively aligning with coordinated regional development strategy major
regional strategies and the functional zoning strategy bravely acting as a
trailblazer in building a transportation power. In 2025 the Dadu River Bridge 2417 construction
on Qinghai-Xizang Railway was successfully closed and multiple high-
speed railways including the Xi'an-Yan'an Guangzhou-Zhanjiang Baotou- projects commenced
Yinchuan Shenyang-Changbaishan and Chongqing-Guiyang High-speed
Railways were successfully completed and opened to traffic. During the
14th Five-Year Plan period the Company completed 6363 km of high-speed 2027 projects
railways and its cumulative participation in high-speed railway construction
reached 22300 km enabling the national operating mileage of high- commenced as scheduled
speed railways to exceed 50000 km. A batch of key projects including the
Changtai Yangtze River Bridge Zhengzhou-Kaifeng Intercity Railway Tianjin
Metro Line 4 and Beijing-Weixian Expressway were completed and put into
operation injecting strong momentum into the continuous improvement of
the national integrated transport network.CREC participated in the construction of the
Shenyang-Changbaishan High-speed Railway
(Shenbai High-speed Railway) building a new
transportation trunk line for the revitalization of
Northeast China.CREC designed and constructed the Guangzhou-
Zhanjiang High-Speed Railway (Guangzhan
HSR) significantly reducing travel time between
the Beibu Gulf Urban Agglomeration and the
Guangdong-Hong Kong-Macao Greater Bay Area
providing robust support for high-quality regional
economic and social development.
67Jointly Building Harmonious Communities with People-Centered Commitment
The Gaoligongshan Tunnel constructed by CREC
serves as a pivotal project for the Dali-Ruili Railway
and a key component of the China-Myanmar
International Railway Corridor. Upon full operation
it will end the historical absence of railway access
in ethnic minority regions of western Yunnan. Goods
entering via the Ruili Port can rapidly reach inland
areas through this major transport artery significantly
enhancing trade logistics and cultural exchange
between China Myanmar and the broader Southeast
Asian region.The Baotou-Yinchuan High-speed Railway (Baoyin
High-speed Railway) designed and constructed
by CREC was opened to traffic facilitating the
implementation of the strategy for the large-scale
development of the western region in the new era.Strengthening Technological Innovation
CREC consistently regards scientific and technological innovation as the primary driving force for high-quality
development deeply implements the innovation-driven development strategy continuously deepens the reform of
scientific and technological innovation systems and mechanisms and improves the full-chain innovation system.Anchoring major national strategic demands and industry technological frontiers and focusing on core fields such as
rail transit long-span bridges deep-sea tunnels railway electrification and smart construction the Company goes all
out to overcome a batch of "bottleneck" key core technologies breaks through the technological bottlenecks in major
engineering construction and solidifies its leading technological advantages in the industry. By deepening the integration
of industry academia and research accelerating the transformation of scientific and technological achievements driving
the intelligent and green transformation of industries and cultivating and expanding new quality productive forces the
Company leads the upgrading of the entire industry chain through scientific and technological innovation thereby serving
the country's high-level scientific and technological self-reliance and self-strengthening.Building an Innovation System
The Company continuously optimizes the top-level design and systems and mechanisms for scientific and technological
innovation deepens the construction of the "three levels and four tiers" scientific and technological innovation system
accelerates the implementation of the construction plan for leading scientific and technological enterprises and improves
the performance assessment system for scientific and technological innovation oriented towards innovation value
capability and contribution thus comprehensively elevating the governance efficiency of scientific and technological
innovation. In 2025 the Company organized and convened a conference on scientific and technological innovation work
systematically planned the scientific and technological innovation development blueprint for the 15th Five-Year Plan and
clarified the directions and paths for the scientific and technological innovation work of the entire group.
682025 Environmental Social and Governance Report and Sustainability Report
Organizational System of "Three Levels and Four Tiers" Scientific and Technological Innovation
Level 1 Level 2 Level 3
Process and Method Achievement Promotion
Solution Center
Innovation Center and Application Center
Strengthen the coordination overall planning and supervision functions of the Company headquarters in the
Science and Technology Innovation Management Center
69
Implement major technological Leading Group for Scientific and
innovation projects Technological Innovation Work
Incubate industrial companies and Scientific and Technological Innovation
promote the commercialization of and Digitalization Department
significant technological achievements China Railway Science & Research
Institute National Laboratories and
Pool resources for technological Professional R&D Centers
innovation
Build a technological innovation
ecosystem
Undertake R&D tasks from higher-level
technological innovation platform
Take on or independently carry out
the commercialization of technological Enterprise Technology
achievements Center of Level 2 Units
Research technical solutions for major
engineering projects
Independently engage in practical Enterprise Technology
technology innovation Center of Level 3 Units
Independently research minor Engineering Technology
technological improvements and Section of Project
innovations DepartmentJointly Building Harmonious Communities with People-Centered Commitment
The Company strengthens the full-process closed-loop management of R&D investments continuously improves the
usage efficiency of scientific research funds and establishes a full-chain management mechanism covering accounting
analysis of R&D fund inputs implementation effect assessment and special audits supervision and accountability
thereby ensuring that R&D investments accurately match the needs of overcoming core technical challenges and that
outputs efficiently respond to the needs of industrial development. In 2025 the Company's scientific research investment
amounted to RMB 22.52 billion accounting for 2.06% of the primary business revenue.The Company constructs a multi-level R&D platform matrix featuring "national-level leadership provincial and ministerial-
level support and enterprise-level implementation" and carries out targeted scientific research and breakthroughs
focusing on industry core technological bottlenecks and major engineering construction demands. The Company deepens
the deep collaborative innovation of industry academia and research establishes long-term strategic cooperative
relationships with top domestic universities such as Tsinghua University and Southwest Jiaotong University jointly
builds collaborative scientific research institutions and carries out joint breakthroughs in key core technologies and joint
cultivation of innovative talents. The Company improves the full-process management mechanism for the transformation
of scientific and technological achievements perfects the scientific research achievement assessment system centered
on innovation value and implements special rewards for high-value innovative achievements and major technological
breakthroughs; these measures effectively stimulate full-chain innovation vitality and accelerate the transformation of
scientific and technological achievements into engineering applications and industrial development.By the end of December 2025
3 national laboratories (engineering research centers): National Engineering Research Center for High-
speed Railway Construction Technology State Key Laboratory of Tunnel Boring Machines and Intelligent
Operation and Maintenance and State Key Laboratory of Intelligent and Green Bridge Construction
1 national-local joint research center: National-Local Joint Engineering Research Center for Digital Rail
Transit Technology Research and Application
21 state-recognized enterprise technology centers
10 postdoctoral research stations
61 provincial and ministerial-level R&D centers (laboratories)
142 provincial-recognized enterprise technology centers
1 railway industry key laboratories
4 railway industry engineering research centers
1 field scientific observation and research stations
17 professional R&D centers of the Company
702025 Environmental Social and Governance Report and Sustainability Report
Cultivating Scientific and Technological Innovation Talents
The Company constructs a tiered scientific and technological innovation talent system; with academicians and National
Engineering Survey and Design Masters as leaders senior professional and technical talents as cadres and over
40000 frontline highly-skilled talents as the foundation it fosters a high-quality innovative workforce. The Company
formulates and implements internal management systems such as the Working Opinions on Promoting the Internal
Paid Transformation of Practical Technological Achievements and the Regulations on the Management of Scientific
and Technological Innovation Awards and intensifies preferential rewards for units and individuals with remarkable
achievements fully stimulating the vitality of various innovation subjects. The Company actively recommends Great
Craftsmen of the Nation and regularly selects scientific and technological pacesetters and special-grade technicians to
build a growth and display platform for talents. Focusing on frontier technologies the Company conducts systematic
training to comprehensively enhance the professional capabilities and technological application levels of scientific and
technological innovation talents.By the end of 2025
Academicians of the Members of National National engineering National-level candidates of
Chinese Academy of Excellent Engineer survey and design the Hundred- Thousand-Ten-
Engineering Team masters Thousand Talent Project
2 persons 2 teams 9 persons 12 persons
Experts receiving special Recipients of the National Winners of Science and National highly-skilled
government allowance Special Support Program Technology Award for workers
of the State Council for High-Level Talents Chinese Youth
110 persons 3 persons 3 persons 55 persons
National technical National-level Highly-skilled workers receiving special government
experts master artisans allowance of the State Council
35 persons 5 persons 37 persons
71Jointly Building Harmonious Communities with People-Centered Commitment
Case Special Training on the Practical Operation of AI Technology
From 7 to 10 January 2025 CREC organised
a specialised training programme on artificial
intelligence covering major management levels
and all business segments across the Company.The training curriculum included frontier
development trends fundamental theories
technical operations demonstration application
scenarios data mining and AI security. The
programme enhanced innovation awareness
and appl icat ion capabi l i t ies in art i f ic ia l
intelligence across all levels of the Company
laying a solid foundation for the implementation
of AI+ initiatives.Case The First "Pioneer Cup" Scenario + AI Innovation and the Fourth Post
Competency Competition
In September 2025 CREC held its inaugural
“P ioneer Cup” Scenar io + A I Innovat ion
Compet i t ion a longs ide the fourth Post
Competency Competition under the theme“P ioneer Inte l l igence Manufactur ing A IEmpowerment” to promote company-wide
participation in innovation. The competition
attracted 39 secondary units 135 teams
and 353 employees. Following professional
training online preliminary screening and
expert evaluations a total of 32 award-
winning teams from 18 units were selected. A
number of AI-driven innovations with practical
application value across multiple business areas
emerged effectively supporting the Company’s
accelerated digital and intelligent transformation
and further fostering an open and collaborative
innovation ecosystem.
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Deepening Digital and Intelligent Transformation
The Company deeply implements the "AI+" movement establishes large models in vertical domains expands high-
value application scenarios strengthens the centralized management of informatization promotes data integration and
connectivity and deeply mines the value of data assets thus solidifying the digital and intelligent foundation of new
quality productive forces.CREC releases the Pioneer Large Model
Expressway construction
The Company has constructed an AI capability system in the vertical domain focusing
on breakthroughs in intelligent construction intelligent inspection and emergency
response intelligent maintenance equipment development and digital employee
systems driving the AI upgrading of the full life cycle of expressways.Survey and design
The Company has developed the "Pioneer· Survey and Design Large Model"
integrating 23 core capabilities in 8 categories to construct an intelligent application
system covering all business processes such as geological analysis and bridge design
achieving full-process automation. The model has been promoted and applied in major
national projects such as the plateau railway and the Chengdu-Chongqing Middle-
route High-speed Railway providing solid technical support for enhancing engineering
design quality and innovation capabilities.Industrial manufacturing
The Company has built the digital and intelligent foundation of the "Industrial Brain";
relying on the intelligent computing cloud center it releases the "Pioneer ·Industrial
Manufacturing Large Model" to form a "1 + 4 + N" service system providing full-chain
AI support for manufacturing scenarios.
73Jointly Building Harmonious Communities with People-Centered Commitment
The "four electrics" engineering for rail transit
The Company launched the “Pioneer · Four-Electrics Large Model” focusing on four core
business areas—intelligent design intelligent construction intelligent operation and
maintenance and intelligent industry—establishing 26 intelligent agents. Its flagship
application “Zhangshang Dianhua” has reduced cross-departmental collaboration and
communication costs by 60% improved knowledge retrieval efficiency by 99% and
shortened hazard inspection response time from hours to minutes injecting new quality
productive forces into the intelligent construction of high-speed rail.Special and long-span bridges
The Company has developed the "Pioneer · Bridge Large Model" building a "1 + 38"
technical system based on full industry chain data achieving full life cycle digital and
intelligent mutual feedback in bridge design manufacturing construction equipment
and operation and maintenance. The Company has launched the bridgehead agent
platform which covers 16 high-value AI scenarios and integrates functions such as
image-based hazard recognition and intelligent scheme generation; it has been applied
in nearly a hundred projects increasing safety management efficiency by 60%.Tunnels and underground spaces
The Company has released the "Pioneer · Tunnel Large Model"; based on 773 lines and
120 billion pieces of data from the shield/TBM big data center it constructs a technical
system where the general large model schedules medium and small models achieving
full life cycle scenario + AI digital and intelligent mutual feedback. The Company has
launched the Tunnel Man AI assistant with functions such as professional Q&A and
standard translation implementing applications such as BIM visualization for tunnel
design and construction evaluation.Case CREC Achieves Breakthroughs in Embodied Intelligence
CREC has independently developed intelligent self-propelled operation and maintenance equipment
for overhead contact lines which has been successfully applied on high-speed rail lines such as the
Guangzhou–Zhanjiang High-Speed Railway. The system achieves over 95% accuracy in identifying safety
hazard characteristics and over 90% accuracy in predicting the lifespan of key components enabling full-
process automated operations from inspection and diagnosis to maintenance. It represents a landmark
achievement marking China’s high-speed rail entering the “robotic maintenance era.”
Replacement rate of routine manual operations
over 80%
Reduction rate of overhead contact system failures
15% Application of the China Railway Pioneer Large Model in over the Field of "Four Electrics" on the Guangzhou-Zhanjiang
High-speed Railway
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Demonstrating Achievements in Scientific and Technological
Innovation
The Company proactively integrates into the national innovation system actively undertakes major scientific and
technological tasks and continuously advances the execution of special tasks assigned by the State-owned Assets
Supervision and Administration Commission of the State Council as well as the transformation of related achievements.Focusing on key fields such as long-span bridges deep-sea tunnels railway electrification and high-end equipment
the Company strives to break through technological bottlenecks in major engineering construction and create more
innovative demonstration projects.In 2025
The Company undertook 98 Provincial and ministerial-level science and
7 national key scientific research projects technology awards
1 achievement selected into the Recommended Catalog of Scientific and Technological Innovation Achievements of
Central SOE
CREC Released Top Ten Innovation Achievements in 2025
Greenization Intelligentization Integration
1. Complete
Serving major construction 8. Plateau and alpine
national 4. Intelligent high-speed railway technology railway construction construction technology
strategies for polar technology
construction
Transformation 2. Construction 5. Intelligent 6. Intelligent
and upgrading technology for construction construction 9. Construction
of traditional green and low- technology for tunnels technology for "four technology for special carbon integrated and underground
industries electrics" engineering
and long-span bridges
transport hubs engineering in rail transit
Cultivating 3. Green low-carbon 7. Intelligent perception and
and expanding 10. Shield/TBM and environmentally maintenance technology for transport
strategic emerging manufacturing friendly construction infrastructure technology
industries technology
75Jointly Building Harmonious Communities with People-Centered Commitment
1. Complete construction technology for polar 2. Construction technology for green and
construction low-carbon integrated transport hubs
Built Qinling Station the world's first station with a 100% Developed station-city integration design and built green
prefabrication rate; adopting fully modular designs and polar hubs such as Fengtai Station and Qinghe Station. Integrate
weather-resistant materials with only 0.2mm of corrosion systems such as photovoltaic power generation and
over 100 years. Created a "wind-solar-storage-hydrogen- rainwater recycling in which Qinghe Station obtains the
diesel" microgrid with clean energy accounting for 60% Three-Star Green Building Certification and LEED Gold
achieving dual-platform intelligent control. Certification driving the transformation of hubs towards
green low-carbon and intelligent development.
3. Green low-carbon and environmentally 4. Intelligent high-speed railway
friendly construction technology construction technology
Constructed a full-chain green system of "design - construction Constructed a full-chain system of "digital and intelligent
- operation and maintenance" utilizing Lightweight Ultra-High- survey - intelligent construction - intelligent operation" and
Performance Concrete (LUHPC) and low-carbon ratio concrete applied Building Information Modeling (BIM) and Internet
reducing cement usage by 20%. Built green demonstration of Things (IoT) technologies to achieve a 15% increase in
projects such as the Lhasa-Nyingchi Railway and the China- survey efficiency a 20% increase in precision and a 25%
Laos Railway practicing the concept that "lucid waters and increase in production efficiency.lush mountains are invaluable assets".
5. Intelligent construction technology for 6. Intelligent construction technology for
tunnels and underground engineering "four electrics" engineering in rail transit
Built the largest shield/TBM data center in China and create Independently developed hybrid-electric and hydrogen-
a full-chain system of intelligent excavation support fuel work vehicles and innovate six intelligent tooling
and assembly. Pioneered trackless transportation and devices achieving a 99.5% pass rate in key processes.intelligent ventilation technologies and realizes full-process Construct a digital twin system of BIM + Geographic
mechanization of the drill-and-blast method driving the Information System (GIS) in which the intelligent detection
intelligent transformation of tunnel construction. system wins an international award from International
Data Corporation (IDC) setting a global benchmark for
"intelligent manufacturing".
7. Intelligent perception and maintenance 8. Plateau and alpine railway construction
technology for transport infrastructure technology
Constructed a full-cycle system of "perception - assessment Created a four-dimensional survey system of "space-air-- maintenance" achieving micrometer-level defect detection ground-borehole” and developed domestic plateau survey
for tracks and sub-millimeter-level for bridges. Developed equipment to achieve data acquisition in unmanned areas.independent detection equipment and health management Propose intelligent disaster reduction route selection and
platforms driving the transformation of tradit ional multi-level shock absorption technologies and overcomes
maintenance towards intelligent green and efficient the challenge of tunnels with high ground temperatures of
operation and maintenance. 92.6°C supporting the construction of the Sichuan-Tibet Railway.
9. Construction technology for special and 10. Shield/Tunnel Boring Machine (TBM)
long-span bridges manufacturing technology
Pioneered the stiffness design theory for large-span bridges Ranked first globally in production and sales for eight
on 350 km/h high-speed railways and develop domestic consecutive years building a comprehensive product
software such as the "Structural Nonlinear Analysis System portfolio. Developed the world's first full-process intelligent
(SNAS)" and "Linghui" achieving international leadership in shield machine with automatic tool changing efficiency
the nonlinear analysis of cable-supported bridges. Created increased by 5-8 times and the localization rate of core
an intelligent manufacturing model of "five lines and one components exceeding 95% achieving a leap from
system" assisting in the millimeter-level closure of the following to leading.Changtai Yangtze River Bridge.
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By the end of 2025
132 National Science and 862 Provincial and 200 Tien-yow Jeme
Technology Progress Awards and Ministerial-level Science and Civil Engineering Prizes
National Technology Invention Awards Technology Progress Awards
Protecting Intellectual Property
The Company strictly complies with laws and regulations such as the Patent Law of the People's Republic of China and
the Trademark Law of the People's Republic of China formulates the Patent Management Regulations of CREC and
the Trademark and Trade Name Management Regulations of CREC and improves the full-chain intellectual property
protection system. In patent management unified leadership and tiered responsibilities are adopted and through
the scientific and technological management information system it achieves full life cycle dynamic management
and strengthens the management and confidentiality control of service inventions. The trademark management
comprehensively coordinated by the Legal and Compliance Department for registration renewal and rights protection
strictly standardizes the licensing of the "China Railway" trade name and strictly prevents unauthorized use and
counterfeit infringements. In 2025 the Company was granted 8540 patents providing strong momentum for high-quality
development.In 2025
Core papers published Patents held Patents authorized
1061 articles 48029 items 8540 items
Invention patents Overseas patents Software copyrights Intellectual property rights
obtained held
3624 items 194 items 906 items 2 items
77Jointly Building Harmonious Communities with People-Centered Commitment
Forging Craftsmanship Quality
CREC vigorously carries forward the spirit of craftsmanship adheres to the fundamental principle of "quality first for a
century-long plan" deeply integrating the pursuit of excellence into the full life cycle of projects constructing a full-chain
closed-loop quality control system and empowering quality upgrades through technological innovation to fully build high-
quality projects set industry quality benchmarks and fully demonstrate the leading role of a central SOE in building a
quality-strong nation.Governance
The Company scientifically sets quality targets deepening
lean management and implementing total qual ity
management (TQM) at different levels and across different
industries. The Safety Quality and Environmental Protection
Supervision Department is comprehensively responsible
for the quality control and work safety supervision of the
Company's engineering products services and operational
maintenance of operating assets including establishing
and improving the Company’s quality management system
enhancing emergency management for safety quality and
environmental protection and strengthening supervision
over the rectification of common engineering quality issues.The Company has issued the Guiding Opinions of CREC
on Strengthening the Full Life Cycle Quality Supervision
of Construction Projects and Improving Engineering
Construction Quality which clarifies and standardizes the
implementation paths and work requirements for the full life
cycle quality management and supervision of construction
projects from four dimensions namely implementing
responsibilities detailing tasks rectifying and improving and
comprehensive leading.Quality Management System Certification Certificate of CREC
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Strategy
Closely aligned with major national strategies and enterprise development plans the Company leads the transformative
development of global infrastructure through quality continuously consolidates the quality and brand advantages of the
"state-owned enterprises" in the five traditional fields of railways highways urban rail transit municipal engineering and
housing construction actively expands into emerging infrastructure fields such as water conservancy and hydropower
energy pipeline networks intelligent construction and computing power facilities as well as systematically improves the
quality development layout across all fields. The Company has established a normalized identification mechanism for
quality-related risks and opportunities systematically analyzed and assessed their impacts on business operations and
financial performance and formulated targeted response measures to achieve closed-loop control of quality risks.Risk/Opportunity Description of Impacts of Risks/
Type Opportunities on Business and Finance Time Frame Response Measures
An imperfect engineering management
system leads to engineering quality problems Improve the construction of the engineering
or safety accidents resulting in negative Medium and quality management system to realize
impacts on the Company's operating Long Term the full life cycle quality management and
costs and reputation potentially incurring supervision of engineering
substantial compensation.Construction defects trigger issues related Carrying out standardized technological Risks
to engineering quality warranties and and process transformation and
rework rectifications resulting in increased Medium Term establishing an online monitoring system
investments in rework costs and warranty for process parameters and quality ensures
fees. the standardized implementation of engineering
By advancing end-to-end digitalization
across design construction and operations
By delivering high-quality engineering the enhances project delivery capabilities
Company strengthens its brand equity Medium and and enables the development of flagship
and expands its market layout thereby Long Term projects the Company builds landmark
Opportunities supporting revenue growth. projects actively applying for the National Quality Engineering Award strengthening
brand communication setting benchmarks
and shaping the corporate image
Engineering Quality Management
The Company deeply implements the requirements for full life cycle quality supervision of construction projects promotes
standardization across the entire processes of the quality management system engineering entity construction industrial
product manufacturing and operation and maintenance service operations thereby comprehensively elevating the
quality control level of projects. Focusing on the whole process of production organization and quality risk prevention
and control the Company continuously optimizes the project quality supervision system and operating mechanism
establishes and improves the traceability management and accountability mechanism for major quality accidents
and incidents to consolidate control responsibilities at all levels. The Company strictly implements the Qualifications
Management Regulations of CREC and continuously strengthens the management of various qualifications and licenses
providing a solid guarantee for the compliant construction and quality improvement of projects. By the end of 2025 the
Company possessed a total of 4219 various qualifications and licenses.The Company firmly grasps the barrier of source quality control for engineering and has issued the Notice on
Strengthening Compliant Procurement of Project Products and Construction Quality Control to urge all affiliated units to
deeply carry out special inspections and rectifications of quality hazards in industrial products. The Company established
a material quality risk register comprehensively incorporating core materials that constitute engineering entities and
directly relate to engineering safety and quality into the two-level centralized control system to continuously intensify
direct procurement from manufacturers by which it strengthens the defense line of engineering quality control from the
procurement source.
79Jointly Building Harmonious Communities with People-Centered Commitment
Built by China Railway No. 3 Engineering Group with
participation from China Railway Hi-Tech Industry Corporation
Limited the Xinjiang Yili River Third Bridge-China's first three-
tower four-span "O"-shaped low-pylon cable-stayed bridge-
spans the junction of Yining Kekedala and Qapqal. Stretching
2028 m the project extensively applied informatization and
smart technologies. Digital modeling precisely replicated
the entire main tower construction process determining
the optimal assembly scheme to ensure perfect alignment
of the beam geometry and three-dimensional cable surface
curvature.For the G577 Jinghe-Yining Line's pivotal project-the North
Tianshan Extra-Long Tunnel-invested and constructed by China
Railway City Development and Investment Group surveyed and
designed by China Railway Liuyuan Group and built by China
Railway First Group and China Railway No. 2 Engineering Group
the "Advanced Geological Prediction + Dynamic Construction
Adjustment" approach was adopted. This enabled real-
time optimization of support parameters effective control of
surrounding rock deformation and ensured tunnel structural
stability. After tunnel breakthrough vehicles traverse the
northern Tianshan range in approximately 15 minutes.The track laying of the entire Xi'an-Ankang High-speed Railway
constructed by China Railway First Group was officially
launched in October 2025; it will adopt newly self-developed
track laying equipment and an intelligent management
system project in China to achieve digitalized and precise
management of the track laying process.The Chengdu Metro Line 13 Phase I project EPC-contracted
by China Railway City Development and Investment Group
with participation from multiple CREC subsidiaries overcame
numerous technical challenges and environmental constraints.It achieved high-quality milestones including station roof
completion tunnel breakthrough track laying completion
electrification handover of track areas trial runs and station
handover forming the " CREC Solution" for metro construction
in bustling metropolises.The Guangzhou Baiyun International Airport Phase II I
Expansion's Ground Transportation Center (GTC) complex
project constructed by China Rai lway Construct ion
Engineering Group is now operational. Implementing
systematic management the project strictly enforced quality
standards such as tagged acceptance inspections and triple-
check systems to ensure first-time excellence.The New Gwadar International Airport in Pakistan constructed
with the participation of China Railway Beijing Engineering
Group is a key project under the China–Pakistan Economic
Corr idor . Adher ing to ref ined construct ion and lean
management the project achieved zero safety hazards and
zero quality defects and successfully passed completion
acceptance. It received an aid project certificate from the
Economic Cooperation Bureau of the Ministry of Commerce of
China and was rated “Excellent.”
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High-Quality Customer Service
The Company adheres to a customer-centric service philosophy and constructs a standardized refined and smart excellent
service system; through system improvement process optimization and supervisory improvement. Meanwhile it continuously
enhances the quality of operational services winning customer trust public recognition and industry reputation with high-quality
and warm services.Overhaul customer service management systems
The Company formulates and continuously improves quality management measures and service standards for operating
projects constructing a standardized service system covering functions such as customer service hotlines emergency
rescue and information release. It clarifies standard requirements such as service processes and response timelines
to promote the standardized normalized and refined development of operational services. It also has formulated and
issued special systems such as the Expressway Operation Management Manual and implemented distinctive warm
service measures such as smile service continuously improving service quality and customer satisfaction.Improve complaint handling and feedback mechanisms
The Company builds diversified and convenient customer feedback channels including telephone email project site
suggestion boxes and publicized complaint hotlines of which a linkage mechanism between the customer service hotline
and the monitoring center is established for the expressway operation business to achieve around-the-clock acceptance
of appeals. The Company improves the full-process closed-loop management mechanism of "receipt and registration -
classified transfer - investigation and verification - handling and feedback - return visit and archiving" regularly conducts
statistical analysis of complaint data performs source analysis on typical complaints promotes systematic rectification
and optimization and incorporates the effectiveness of complaint handling into the operational service quality
assessment and evaluation system. In 2025 no major complaints related to products or services were received.Strengthen the data-driven approach and service improvement
The Company continuously strengthens the construction of a smart operation and maintenance system and promotes
the application of digital tools such as intelligent video monitoring systems and intelligent maintenance platforms
providing solid technical support for the preventive maintenance and service process optimization of operating projects
and driving the transformation of service management from post-event disposal to pre-event prevention. Specifically for
the expressway operation business the Company deeply applies big data technology to accurately analyze traffic flow
characteristics during holidays and public travel patterns to deploy traffic management and service guarantee plans
in advance. It also pushes real-time road condition information and travel tips through navigation platforms thereby
comprehensively enhancing the convenience and experience of public travel.Case Building High-quality Projects Based on Public Voices: Customer Satisfaction
Practices of the North Extension Project of Wanjiali Road in Changsha
The North Extension Project of Wanjiali Road in Changsha
undertaken by China Railway No. 5 Engineering Group.taking customer satisfaction as its core constructs a full-
cycle communication mechanism precisely connects with
the demands of all parties through multiple channels such as
questionnaire surveys and in-depth interviews to integrate
them into the construction plan. In this project priority was
given to the construction of power tunnels sound barriers and
construction periods were optimized incremental launching and
jacking processes were adopted to minimize travel disruptions
and regional culture was incorporated to create landscapes.Through regular return visits and dynamic optimization customer
satisfaction increased from 80% to 95% and the project was
awarded the 3-Star Rating of National Customer Satisfaction
Engineering for the year 2025 becoming a model for integrating
people's livelihood with high-quality projects.
81Jointly Building Harmonious Communities with People-Centered Commitment
Responsible Marketing
The Company adheres to the philosophy of law-based compliance and integrity-based operation strictly abides by
national laws regulations regulatory requirements and industry norms such as the Tendering and Bidding Law and
the Implementation Regulations of the Tendering and Bidding Law revises and improves the Business Development
Management Measures of CREC continuously improves the responsible marketing system strictly observes business
disciplines standardizes business behaviors and resolutely maintains a fair just and orderly competitive industry market
order thereby effectively fulfilling the compliance operation responsibilities of a central SOE.Impact Risk and Opportunity Management
Always adhering to baseline thinking and a systematic concept the Company centers on the full life cycle of projects
to construct a full-chain quality risk and opportunity management system covering risk identification analysis and
assessment tiered control closed-loop disposal and continuous optimization; by deeply integrating risk management
with quality improvement compliant operation and quality and efficiency improvement the Company not only
strengthens the quality and safety baseline but also deeply uncovers opportunities for quality upgrades.Combining the characteristics of projects process tooling plans and construction scenarios
the Company carries out comprehensive inspections systematic analyses and quantitative
assessments of quality risk triggers and impact scopes from the two core dimensions of
management and technology. The Company unifies and standardizes the initiation nodes
implementation frequencies determination criteria risk notifications and dynamic rating
adjustment rules for quality risk assessments and clarifies the leading control and synergistic
cooperation responsibilities of all levels and relevant business departments thereby forming a
standardized risk assessment mechanism with clear rights and responsibilities standardized
Construction processes and top-down collaboration. Meanwhile relying on big data and information
of quality risk technology the Company strengthens the precise identification and dynamic monitoring of
identification and quality risks to ensure that risk inspections are comprehensive without omissions and that
assessment system rating determinations are scientific and precise.The Company deeply embeds quality risk control into the entire processes of technical plan
compilation and review construction organization field operations and completion acceptance;
specifies targeted risk prevention and control measures control standards and linkage
mechanisms in special technical plans; and dynamically issues quality risk alerts in combination
with industry regulatory requirements and actual project construction conditions thereby
pushing the barrier of risk prevention and control forward. The Company establishes and
improves the tiered control risk register for quality risks implements tiered and classified control
strictly according to major relatively major and general risk levels and correspondingly clarifies
Full-process and the leading control responsibilities and implementation requirements at each level to construct
closed-loop prevention a three-level risk control system. Thus by focusing heavily on precise prevention and control of
and control of quality root-cause and systematic major quality risks and core links it comprehensively strengthens the
risks baseline for quality risk prevention and control.Taking full-chain risk control as a starting point the Company systematically identifies
development opportunities in quality improvement process optimization technological
innovation and brand shaping deeply integrates risk rectification with quality upgrading
lean management cost reduction and efficiency enhancement and drives construction
process optimization perfection of management systems and breakthrough of technological
innovations through risk traceability inspections thereby achieving a virtuous cycle of
Uncovering and "preventing and controlling risks shoring up weak spots improving quality and creating value"
transformation and empowering the high-quality development of the enterprise with refined risk management.of quality
opportunities
822025 Environmental Social and Governance Report and Sustainability Report
Indicators and Targets
Quality Targets
Strictly guard the quality and safety baseline
Eradicate relatively major and above engineering quality liability accidents strictly control quality red-line issues
in railway construction projects and reduce the frequency of general quality liability accidents for engineering
works year-on-year.Special control of quality-related public opinion
Eradicate major negative quality-related public opinions in national mainstream media strictly control the
fermentation and spread of general quality-related public opinions and achieve full-process closed-loop handling
of quality-related public opinion.Guarantee engineering entity quality
Achieve a 100% acceptance pass rate for unit works upon initial inspection ensure that all completed and handed-
over works fully comply with national and industry quality acceptance standards as well as the requirements of
design documents and technical specifications with a 100% rectification closure rate for quality hazards.Deepen full-chain quality control
Continuously improve the quality management system achieve full coverage of ISO9001 quality management
system certification for core production and operating units continuously reduce common quality defects
in projects and product quality defects and achieve a 100% closed-loop resolution rate for quality-related
complaints.Facilitate quality upgrades through excellence pursuit
The Company actively strives for national and provincial/ministerial-level quality engineering awards
continuously polishes the quality brand of the "state-owned enterprises" in infrastructure construction and
demonstrates the responsibility of a central SOE in building a quality-strong nation.
83Jointly Building Harmonious Communities with People-Centered Commitment
Indicators
In 2025
31 "National Safety Standard Construction Site" titles awarded by the China Construction Industry
Association 12 project quality management standardization technology competition awards and
29 Quality Trustworthy Teams
125 engineering quality improvement competition awards awarded by the China Association of
Construction Enterprise Management and 50 Quality Trustworthy Teams
17 projects applied for the Luban Prize
3 projects applied for the National Quality Engineering Gold Award
33 projects applied for the National Quality Engineering Award passed the on-site re-examination by the
China Construction Industry Association and the China Association of Construction Enterprise Management
By the end of December 2025
851 national-level quality engineering awards won
including 253 Luban Prizes 46 National Quality Engineering Gold Awards and 552
National Quality Engineering Awards.
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Strengthening the Foundation of Safety
Consistently adhering to the principle of putting people and lives first CREC anchors the overall goal of essential safety
construction consolidates full-chain safety responsibilities through iron-fisted and hardline measures improves the safety
management system with systematic thinking prevents and defuses major safety risks through source governance and
strengthens the all-staff safety defense line through cultural infiltration; the Company resolutely curbs the occurrence of major
and extraordinary safety accidents and earnestly puts the protection of the lives and properties of the people in the first place
and implements it effectively.Building a Safety System
Safety Management Targets
Short-term targets Long-term targets
Comprehensively consolidate the all-staff work safety Construct a systematic and complete safety governance
responsibility system strictly implement the duties system ensuring that during the entire 15th Five-
of the first responsible persons deeply carry out Year Plan period the number of fatalities from liability
the special movement of "grand reflection grand accidents per RMB 10 billion of operating revenue is
rectification and grand improvement" and resolutely controlled within 0.5.achieve dual decreases in the total number of accidents
and the number of fatalities.Complying with relevant laws and regulations such as the Work Safety Law of the People's Republic of China the Law of the
People's Republic of China on the Prevention and Control of Occupational Diseases and the Fire Protection Law of the People's
Republic of China the Company formulates and issues systems such as the Three-Year Action Plan for Tackling the Root Causes
of Work Safety (2024-2026) the Ten Rigid Rules for Iron-Fisted Safety Governance of CREC and the Occupational Safety and
Health Supervision and Management Regulations ; it continuously constructs a systematic complete scientifically standardized
and effectively operating safety management system to ensure that the full process of safety management is law-based and
rule-abiding and has passed the ISO 45001 occupational health and safety management system certification.The Company establishes a Work Safety (Quality) Committee as the overarching decision-making body for work safety work
across the entire system. The Committee strictly implements the requirement of "shared responsibility of the Party and
government and dual responsibilities for one post" in which the Secretary of the Party Committee Chairman and President
of the Company jointly serve as Directors the Vice President in charge of safety and quality work serves as Deputy Director
and all other leadership team members senior executives and heads of relevant headquarters departments are included as
members effectively consolidating the core work safety responsibilities of the leadership team. An office is set up under the
Committee dedicated to being responsible for the implementation supervision and closed-loop management of all decisions and
deployments made by the Committee.The entire system constructs a responsibility implementation system that is "horizontally comprehensive and vertically deep"
while all second- and third-tier enterprises have established work safety supervision and management departments and all
construction and investment-oriented enterprises are fully equipped with full-time safety directors achieving full coverage
of safety regulatory bodies and full-time personnel. Meanwhile work safety work is comprehensively incorporated into the
performance assessment systems at all levels; for units with prominent shortcomings in safety management and inadequate
implementation of responsibilities measures such as downgrading and one-vote vetoes are strictly executed in business
performance assessments and the selection of outstanding and advanced models thus forming a fully closed-loop management
system of "responsibility implementation - assessment and supervision - accountability and effectiveness evaluation".
85Jointly Building Harmonious Communities with People-Centered Commitment
"1+9+N" Safety Supervision and Management System
"1" refers to the formulation "9" refers to the systematic review and "N" refers to the issuance of the
and issuance of the guiding rationalization optimization improvement Rigid Standards for Safety Quality
programmatic document that integration and streamlining of existing and Environmental Protection
overarching comprehensive management systems to form 9 special Management of CREC which is
work namely the Safety management systems including work safety divided into the management section
Quality and Environmental supervision engineering quality supervision professional section and operational
Protection Management ecological and environmental protection section with a total of 1299 articles.Measures of CREC; supervision emergency management At the same time the Ten Rigid Rules
work safety responsibility system system for Iron-Fisted Safety Governance of
supervision and inspection management CREC was issued comprehensively
management rewards and punishments constructing the Company's safety
regulations high-quality engineering quality and environmental protection
evaluation and comprehensive emergency supervision and management
plans; system.Ten Strict Measures for Maintaining Security of China Railway Group Limited
● Fulfill the ● Implement risk ● Carry out scheme ● Manage equipment ● Ensure the quality
responsibility of the identification disclosure and tooling manufacturing and efficiency of
first person in charge and prevention implementation and installation hazard investigation
● Enforce the "Three ● Confirm ● Control the ● Supervise and assess and management
Controls & Three operation quality of key cooperative teams ● Handle on-site
Musts" responsibility conditions materials abnormal working
conditions
Preventing Safety Risks
The Company lawfully formulates special institutional documents such as the Guiding Opinions on the Dual Prevention
Work Mechanism of Tiered Safety Risk Control and Hazard Inspection and Governance the Emergency Plans for Safety
Quality Ecological Environment and Disaster Accidents (Incidents) and the Guidelines for Rescue and Relief Work in
Tunnel Construction ; clarifies the control standards and regulatory responsibilities for major safety risks and major hazard
sources; and constructs a full-process risk prevention and control system featuring "tiered risk control closed-loop hazard
governance and highly efficient emergency disposal".The Company strictly implements the dual control principle of "unit jurisdiction + regional control" coordinates and
advances special rectifications systemic supervision and inspections and normalized hazard inspections and governance
and carries out dragnet-style and penetrating inspections in key areas and core links; it earnestly ensures the early
identification of risks early rectification of hazards and early clearance of problems thereby addressing both symptoms
and root causes and resolving issues at the source.In 2025 the Company officially launched the CREC Work Safety Supervision Information System. Relying on the three
core functions of automatic extraction of risk data sharing of hazard data and informatized management of accidents
and warnings it comprehensively connects the full chain of risk identification hazard rectification and accident warning
achieving digital intelligent and visual upgrading in safety risk prevention and control.
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Case "Thunder Movement" for Work Safety
In the third quarter of 2025 CREC launched the "Thunder Movement" for work safety; it clarified that all
project departments must conduct 100% dragnet-style inspections of all construction sites and all processes
on a monthly basis and units at all levels must achieve full coverage of tiered supervision and inspections
over affiliated construction-in-progress projects and high-risk projects. Through various forms such as special
inspections publicity and training emergency drills and post assessments all units across the entire system
comprehensively consolidated safety responsibilities rectified safety hazards and prevented and controlled
major risks. In 2025 through this special movement and stationed supervision and inspections a total of
501 projects were inspected and 118 major hazards were rectified in a closed loop effectively preventing
and curbing relatively major and above-work safety accidents and earnestly strengthening the safety risk
prevention and control capabilities of the entire system.The No. 1 Company of China Railway No.
5 Engineering Group thoroughly carried
out the "Thunder Movement" to conduct
comprehensive inspections without blind
spots across all projects under construction
Guaranteeing Work Safety
The Company has established long-term intrinsic safety goals rigorously implemented the 14th Five-Year Plan for Work Safety
Management and fully strengthened the safety responsibility chain. This ensures comprehensive safety coverage: adequate
staffing dynamic risk identification effective technical measures thorough risk controls complete hazard investigation and
rectification and rigorous emergency response evaluation achieving system-wide and lifecycle safety management. For
contractor safety management the Company implemented a negative list system strictly evaluating bidders' work safety
management capabilities during qualification screening. Labor management is integrated into prequalification and routine/annual
evaluation systems. At contract signing clauses on labor safety and workers' rights are explicitly defined requiring contractors
to strictly implement occupational health and safety measures and provide secure working environments. The Company has
established concurrent insurance safeguards and safety education mechanisms providing workers with occupational injury and
accident insurance. Regular safety and health training creates a closed-loop management model: "strict qualification screening
clear contractual responsibilities and robust safeguard implementation" minimizing safety incidents and occupational hazards.Cultivating Safety Culture
The Company consistently regards the construction of safety culture as a crucial grasp for essential safety construction and
builds a multi-level full-coverage safety education and training system characterized by "leadership taking the lead post
coverage and all-staff participation"; it continuously drives the internalization of safety concepts in mind and externalization in
action fostering a strong atmosphere where "everyone prioritises safety is capable of emergency response acts with safety in
mind in all matters and remains vigilant at all times".Strengthening the "head goose" leading role of the "critical few" the Company organizes and conducts special training on
safety leadership covering over 180 leadership team members of second- and third-tier units to earnestly enhance the safety
performance capabilities of managers at all levels and drive the overall improvement of the entire system's safety management
capabilities through the "head goose effect". Focusing on enhancing the capabilities of key posts the Company carries out
targeted special safety training in key areas such as underground excavation construction of tunnels by region and unit; with a
total of 1456 key post personnel trained it earnestly fortifies the safety defense lines in key areas and core links.
87Jointly Building Harmonious Communities with People-Centered Commitment
Case The 24th National "Work Safety Month" of CREC
In June 2025 CREC organized the 24th National "Work Safety Month"
swearing-in activity centered around the theme "Everyone care
about safety everyone knows how to respond to emergencies - Find over
safety hazards around you". The activity covered the headquarters
all units and over 7000 construction-in-progress projects with construction-
approximately 300000 employees solemnly swearing to strictly 7000
abide by safety rules and regulations. in-progress projects
Signing on the promotional banner of the Work Safety Month
Case Work Safety Management Knowledge and On-site Hazard Inspection Skills
Competition of China Railway No. 5 Engineering Group
In August 2025 China Railway No. 5 Engineering Group held a work safety management knowledge and on-
site hazard inspection skills competition; focusing on high-risk areas such as operations at heights temporary
electricity use and hoisting more than 80 typical hazard points were set up to comprehensively test the
contestants' recognition accuracy and ability to formulate rectification plans. Through promoting learning
and management via the competition the activity enhanced the risk identification and practical control levels
of primary-level safety management personnel.Safety training by China Railway No. 2 Engineering Group VR safety education experience station of China Railway No. 4
Engineering Group
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Expanding Overseas Business
CREC consistently adheres to the principle of extensive consultation joint contribution and shared benefits deeply
integrates into the high-quality joint construction of the "Belt and Road Initiative" and coordinates the construction of
major landmark projects and "small and beautiful" livelihood projects; with a batch of exemplary cooperation outcomes
the Company powerfully promotes infrastructure connectivity and economic and trade exchanges among countries along
the routes thereby making active contributions to building a community with a shared future for mankind.GovernanceThe Company has established an overseas business governance framework based on the principle of “strengthening thecore consolidating the two wings and optimising N drivers” forming a “one core two wings and N drivers” structure. The
headquarters serves as the “core” with relevant departments undertaking guidance supervision and control functions
over overseas operations. The International Department exercises centralised management of overseas business
performing overall coordination scheduling and command functions. China Railway International Group and China
Overseas Engineering Group act as the “two wings” leveraging their commercial strengths to advance substantive and
localised development in key markets and deepen client and market engagement. Engineering bureaus design institutes
and other secondary units serve as the “N drivers” expanding overseas business in accordance with localisation
principles forming a governance structure with clear responsibilities efficient coordination and strong end-to-end control.In 2025 the Company revised and improved institutional frameworks such as the Administrative Measures for Overseas
Social Security Management and the Emergency Response Plan for Overseas Social Security Incidents promoting
standardized systematic and refined management across the full lifecycle of overseas operations and continuously
enhancing governance over international business.Strategy
Taking serving the national strategy of high-level opening-up as its fundamental guidance the Company anchors the
core mainline of high-quality joint construction of the "Belt and Road Initiative" constructs the "One Body Two Wings
and Multiple Enablers" international operation system and adheres to the principles of "deeply cultivating core areas
focusing on key breakthroughs prioritizing benefits and controlling risks"; by consolidating advantageous national
markets expanding strategic emerging markets and coordinating domestic and international markets based on the
core advantages of the entire industry chain the Company drives the synergistic overseas expansion of the full chain
of Chinese technologies standards equipment and brands continuously enhances core global operating capabilities
and strives to create differentiated international competitive advantages. In 2025 the implementation of the Company's
overseas strategies yielded remarkable results the market layout was continuously optimized breakthroughs were made
in strategic markets and both operating scale and development quality achieved dual improvements.
89Jointly Building Harmonious Communities with People-Centered Commitment
Risk/Opportunity Description of Impacts of Risks/Opportunities on Business and Time Type Frame Response MeasuresFinance
The Company establishes a
full-cycle impact assessment
mechanism for overseas
projects and a full-chain
Regime changes or armed conflicts occurring risk prevention and control
in the host countries of projects may lead to mechanism featuring "front-
project expropriation or contract breaches end research and judgment
resulting in abnormal losses of fixed assets in-process control and
Medium and
or construction-in-progress. Disputes and post-event closed-loop
Long Term
Risks protests arising from local laws and cultures management" studies
will generate additional expenditures and and judges international
compensation fees leading to increased situations and laws and
project costs. regulations and implements
tiered classified and
penetrating control over core
risks such as geopolitics and
market operations.Grasping the opportunities
from the deepening and
upgrading of the high-quality
joint construction of the
"Belt and Road Initiative"
Undertaking large-scale infrastructure the structural upgrading
projects in overseas regions helps of the global infrastructure
continuously enhance core global operating Medium and market and the international
capabilities driving the growth of the Long Term development of Chinese
Opportunities enterprise's primary business revenue and standards the Company
total profits. promotes the full-chain
overseas expansion of
technologies standards
equipment and brands to
enhance its international
core competitiveness.
902025 Environmental Social and Governance Report and Sustainability Report
Case A New Benchmark for Pragmatic Cooperation Between China and
Iraq: The Nisour Square Interchange Project in Baghdad Iraq
The Nisour Square Interchange Project in Baghdad Iraq is a landmark livelihood project implemented to
alleviate long-term traffic congestion in the core area of the capital and it is also a model of the alignment
between China's "Belt and Road Initiative" and Iraq's "Development Road" strategy. In response to the
complex traffic conditions at the Nisour roundabout the project team innovatively adopted a three-
dimensional scheme of "2 viaducts + 5 tunnels" that integrates Chinese technologies with international
standards constructing a four-level traffic system combining viaducts ground roads tunnels and
underpasses thereby greatly enhancing regional traffic capacity. The successful implementation of the
project has established a good brand reputation and a model of cooperation for Chinese enterprises to deeply
cultivate the markets in Iraq and the Middle East. The Prime Minister of Iraq personally visited the site for
inspections six times during the construction period and highly praised the construction achievements.CREC crafts the Kinshasa Ring Road Project in the capital of
the Democratic Republic of the Congo with ingenuity solving
the "pain points" of people's livelihood and driving local
economic development.The Sunkoshi–Marin Diversion Tunnel Project in Nepal
constructed by CREC is another “National Pride Project”
implemented under the "Belt and Road Initiative" following
the successful delivery of the Bheri–Babai Diversion
Tunnel. Upon completion and operation the project has
significantly advanced the optimal allocation of water
resources across river basins in Nepal and upgraded
modern agricultural irrigation systems. It supports the
development of an integrated livelihood corridor combining
water diversion irrigation and power generation promoting
stable agricultural output and income growth reliable clean
energy supply and improvements in the regional ecological
environment thereby injecting new momentum into Nepal’s
economic and social development.
91Jointly Building Harmonious Communities with People-Centered Commitment
CREC assists in the judicial infrastructure construction in
Tanzania marking new constructive achievements in the
joint construction of the "Belt and Road Initiative" between
China and Tanzania
The first green building in Fiji constructed by China Railway
First Group was officially opened recently in the capital
Suva; as the first green-certified building in Fiji its design
integrates multiple sustainable development technologies
including an integrated energy system a rainwater
harvesting system and smart building management
technologies.The "Water Tower of Life" in the Desert: CREC Helps Senegal Solve the
Case Century-old Drinking Water Challenge
China Railway Seventh Group constructed a 3200-cubic-meter water tower in Sanar Village Senegal; as the
core project of the Saint-Louis water supply system located 300 km away from Dakar it effectively solves the
drinking water safety issues for thousands of local residents and the University of Saint-Louis constructing
a complete water supply network. The project started in 2021 and was completed in 2025; its main structure
passed the acceptance on the first attempt and the project team actively cultivated local talents earning
high praise from the Director of the National Water Bureau of Senegal. This "small and beautiful" livelihood
project connects the terminal ends of water supply vividly illustrating the profound friendship of China-Africa
infrastructure cooperation during the construction of the "Belt and Road Initiative".
922025 Environmental Social and Governance Report and Sustainability Report
Impact Risk and Opportunity Management
The Company establishes a full-cycle impact assessment mechanism for overseas projects that makes impact
assessment a prerequisite procedure for project decision-making and systematically conducts two-way impact research
and judgment namely the Company assesses the two-way impacts of the project on the economic society livelihood
employment and ecological environment of the host country to maximize the positive value of the project and formulate
mitigation plans for potential negative impacts in advance; internally the Company researches and judges the impacts of
changes in international situations and market environments on its operations finance and brand and establishes tiered
assessment standards and response mechanisms thereby providing core bases for grasping opportunities and preventing
and controlling risks.The Company establishes a full-chain risk prevention and control mechanism of "front-end research and judgment in-
process control and post-event closed-loop management" and implements tiered classified and penetrating control over
core risks: regarding geopolitics and market operation risks the Company strengthens front-end admission research and
judgment of projects standardizes full-process operation management and optimizes the global market layout; regarding
work safety and performance compliance risks the Company normally carries out hazard inspections and rectifications
and constructs a full-process performance compliance supervision system to achieve closed-loop management of
problems and hazards; regarding overseas social security risks the Company strictly implements security management
measures and emergency plans and establishes risk monitoring and emergency linkage mechanisms to guarantee the
safety of overseas institutions and personnel; and regarding compliance operation risks the Company continuously
improves the compliance management system and embeds compliance reviews into the full business process to strictly
guard the baseline of compliant operations.The Company establishes a normalized mechanism for researching judging and transforming opportunities and
systematically uncovers core development opportunities based on the results of impact research and judgment: First it
grasps the policy opportunities brought by the deepening and upgrading of the high-quality joint construction of the "Belt
and Road Initiative" precisely connects with the infrastructure needs of countries along the routes and seize the windows
for the implementation of major projects; second it grasps the opportunities from the structural upgrading of the global
infrastructure market and expands into emerging tracks such as green and low carbon and digital intelligence based
on the advantages of the entire industry chain; third it grasps the opportunities from the international development of
Chinese standards and promotes the full-chain overseas expansion of technologies standards equipment and brands
to enhance international core competitiveness; fourth it grasps the long-term development opportunities brought by
localized operations deeply integrates into the development of host countries and consolidates the long-term market
foundation. Concurrently it establishes tracking supervision and review mechanisms for opportunity transformation to
drive the efficient transformation of opportunities into development momentum.Indicators and Targets
Targets
Achieve new results in deep integration into the high-quality joint construction of the "Belt and Road
Initiative" build a batch of key connectivity projects and high-quality flagship livelihood projects and
continuously enhance the influence of international brands.Realize steady growth in international business revenue and profits achieve breakthroughs
in strategic key markets and significantly strengthen overseas localized operational
capabilities.Maintain 0 occurrences of major overseas risk events achieve a 100% rectification closure rate for risk
hazards and keep overseas business risks generally controllable.Continuously improve the international operation system make new progress in building a high-quality
overseas professional team and steadily enhance core competitiveness.
93Jointly Building Harmonious Communities with People-Centered Commitment
Ranked 2nd among the Top 250 Global Engineering Contractors
Ranked 14th among the Top 250 International Engineering Contractors
Won 2 Gold Awards and 2 Silver Awards in the 2025 International Tunnelling and
Underground Space Association (ITA) Tunnelling Awards
Hungary-Serbia Railway: Drawing a "Golden Bond" for Mutually Beneficial Development
Between China and Hungary was rated as an Excellent Case in the "Cultural
Integration and Value Co-creation" category of the 2025 (8th) China
Enterprise International Image Construction
Indicators
Provide services to 100+ countries and regions globally
Have thousands of construction-in-progress projects globally
30 secondary units of the Company conducting overseas business
More than 20000 employees engaged in overseas business
The Company has achieved "seven consecutive increases" in the value of new
overseas contracts and operating revenue
942025 Environmental Social and Governance Report and Sustainability Report
Fostering Employee Growth
CREC deeply implements the strategy of strengthening the enterprise through talents consistently regards employees
as the core driving force for development respects their principal status improves the protection of their rights and
interests builds platforms for their growth and provides channels for training and promotion; it drives employees and
the enterprise to share the same mind and direction forge ahead together and build and fulfill their dreams thereby
consolidating synergy for high-quality development.Standardizing Employee Recruitment
The Company strictly complies with national laws and regulations related to In 2025
labor and employment formulates and implements systems such as the Talent
Introduction Management Measures of CREC and ensures the standardized
operation of the full recruitment process through institutionalized construction. Total number of employees
The Company consistently adheres to the principle of equal employment
resolutely eradicates employment discrimination based on factors such as 289250 persons
gender nationality race religious belief and marital and family status sets no
age or health thresholds unrelated to the post and always takes post suitability
professional capability and comprehensive literacy as the core employment
criteria striving to create a fair just and competitive recruitment environment.The Company constructs diversified talent introduction channels such as
organizational selection open recruitment recruitment of college graduates and
selective conversion of outstanding dispatched workers; focusing on introducing
urgently needed talents high-level professional and technical talents and core
management talents the Company continuously optimizes the age profession
and level structures of the talent team. Relying on the CREC recruitment
management information system the Company achieves online closed-loop
management of the full recruitment process effectively enhancing the efficiency
fairness and transparency of recruitment work. By the end of 2025 the total
number of the Company's employees reached 289250 with the size of the
talent team remaining stable and its structure being continuously optimized.CREC No.4 Engineering Group's campus recruitment session
95Jointly Building Harmonious Communities with People-Centered Commitment
Total Number and Proportion of Employees by Category
4778056559
17%20%
By 241470 117043
By Age
Gender 83% 115648 40%
40%
Female employees Male employees Under 35 years old 35-50 years old
Over 50 years old
168984385764
5.84%0.15%2%
83500
By Education 28.87% 283486
188414 Background By Region 98%
65.14%
College degree and below Bachelor's degree Domestic Overseas
Master's degree Doctoral degree
5693857115
19.68%19.75%
17519
By Employee
6.06% Category 85681
7199729.62%
24.89%
Assistant-level professional titles Clerical level and below
Intermediate professional titles Senior professional titles
Other levels (including senior professionals)
962025 Environmental Social and Governance Report and Sustainability Report
Protecting Employee Rights and Interests
The Company strictly complies with laws and regulations such as the Labor Law of the People's Republic of China and the Trade
Union Law of the People's Republic of China upholds the philosophy of equal employment strictly abides by laws and regulations
prohibits employment discrimination and ensures that laborers are not treated differently due to factors such as gender race
and age; it earnestly implements the principle of equal pay for equal work guaranteeing fairness in compensation distribution
for employees; meanwhile the Company establishes a fair and transparent promotion mechanism provides equal career
development opportunities for employees enhances employees' skill levels through a systematic training system and creates a
workplace environment of fair competition; furthermore the Company attaches importance to safeguarding the personal dignity
of laborers creates safe and healthy working conditions and protects the legitimate rights and interests of employees. The
Company resolutely boycotts and opposes any form of child labor and forced labor; during this reporting period no incidents of
using child labor or forced labor were found.The Company earnestly implements the Labor Law of the People's Republic of China the Labor Contract Law of the People's
Republic of China and strengthens contract management adhering to the principles of law-based compliance consensus through
consultation risk prevention and innovative development; it lawfully signs labor contracts with all hires clarifying the rights
and obligations in terms of labor protection labor remuneration insurance and benefits and professional ethics as well as the
standards and procedures for contract modification rescission termination and renewal; it strictly executes contract clauses and
continuously strengthens the full-process management of labor contracts. The overseas institutions and projects of the Company
formulate localized labor management systems in accordance with local labor laws and social security laws and standardize the
requirements in all links such as local employee recruitment contract signing social security payment attendance management
leave systems compensation standards and dismissal processes.The Company earnestly executes the Regulations on Paid Annual Leave for Employees and other various leave regulations
and employees lawfully enjoy rights to annual leave sick leave marriage leave and bereavement leave. In light of production
and operations especially the actualities of frontline project departments the Company adopts flexible and diverse forms and
measures such as rotational rest compensatory time off reverse family visits payment of subsidies and extended holidays
during major festivals to coordinately arrange employee rest and leave and implements a system of leave day notification and
annual settlement. The Company formulates and implements the Guiding Opinions on the Management of Compensation and
Leave for Overseas Employees guaranteeing the leave rights and interests of overseas employees. Implementing the relevant
requirements of the Ministry of Human Resources and Social Security on implementing the special working hour system the
Company earnestly executes the Working Hours and Leave Management Measures lawfully and compliantly strengthens
working hours management and implements the special working hour system for posts that meet the prescribed conditions upon
application thereby earnestly safeguarding the rights and interests of laborers.Optimizing Compensation and Benefits
In accordance with national laws and regulations the Company continuously improves the market-oriented compensation
distribution mechanism comprehensively implements the overall requirement of "wages rise when benefits rise and wages fall
when benefits fall" and drives the total wage bill to be deeply linked with the enterprise's economic benefits and input-output
efficiency achieving scientific control and dynamic adjustment of the total wage bill.The Company continuously deepens the reform of the internal income distribution system standardizes the management of
special rewards allowances subsidies and benefits and steadily advances the construction of medium- and long-term incentive
mechanisms such as equity incentives for listed companies equity and dividend incentives for technological enterprises and
excess profit sharing; it continuously expands the incentive coverage and constantly enhances the precision orientation and
effectiveness of incentives. The Company adheres to skewing compensation distribution towards high-performing units core
groups and frontline hardship posts and focuses on intensifying incentives for scientific research cadres overseas personnel
and industrial workers. The Company continuously optimizes the compensation structure and assessment mechanism for senior
executives deeply links their compensation levels with the enterprise's overall operating performance the effectiveness of the
work they are in charge of and the results of their personal performance assessments and incorporates core binding indicators
such as scientific and technological innovation safety and quality ecological and environmental protection and informatization
management into the assessment system achieving bidirectional unity of incentives and constraints.The Company lawfully pays the "five insurances" namely basic endowment insurance basic medical insurance work-related
injury insurance unemployment insurance and maternity insurance in full and on time for all active employees consolidating
the baseline of statutory security. The Company establishes and improves the enterprise supplementary medical insurance
system encourages employees to participate in group long-term critical illness supplementary medical insurance and provides
full-cycle health and medical security for employees. The Company strictly implements relevant policies on enterprise annuity
establishes a dynamic annuity adjustment mechanism matching the development of the enterprise and continuously improves
the supplementary endowment security for employees.
97Jointly Building Harmonious Communities with People-Centered Commitment
Promoting Democratic Management
The Company continuously improves and implements the enterprise democratic management system taking the employee
congress as its basic form constantly deepens work such as the employee congress transparency of factory affairs and
employee directors and earnestly guarantees employees' rights to know participate express and supervise. In 2025 the
Company held the 2nd session of the 4th employee congress and successfully completed the agendas according to procedures
including reviewing the administrative work report the report on the collection and handling of proposals and the report on the
performance of the collective contract as well as democratic appraisal of leaders and employee directors and supervisors and
the signing of the collective contract. Regarding the proposals collected deliberated and established at this employee congress
"one reply for one proposal" was achieved with a proposal completion rate of 100%. Two joint meetings of the employee congress
were held during the year which reviewed and passed relevant systems such as the Enterprise Annuity Management Regulations
of China Railway Engineering Group Limited the Measures for the Management of the Total Wage Bill of Secondary Enterprises
of CREC and the Provisions on the Management of the Work of Employee Directors of CREC fully guaranteeing the standardized
and effective exercise of employees' democratic rights during the intersessional periods of the employee congress.The Company continuously unblocks the channels for employees'
appeal expression and rights protection services formulates and
issues institutional documents such as the Management Regulations
on the Disposal of Clues for Employee Rights Protection of the Trade
Union of CREC upgrades and improves the internal "12351" employee
rights protection service platform and establishes a full closed-loop
management mechanism of "appeal acceptance - supervision and
transfer - rectification and implementation - feedback and return visit";
by responding to and resolving employees' reasonable appeals at
the first time the Company strives to construct a harmonious stable
mutually beneficial and win-win new type of labor relations. China Railway No.3 Engineering Group Holds 2025 Work Conference and the Fifth Session of the Sixth Staff Congress
Building Development Platforms
The Company deeply implements the strategy of strengthening the enterprise through talents In 2025coordinates and advances the construction of "six talent teams” and provides a solid talent
guarantee and intellectual support for the high-quality development of the enterprise assisting
the enterprise in preempting the initiative and winning advantages in the fierce market Number of National Model
competition. The Company's independently developed "Competency Model for Officers and Workers
Talents" won the Outstanding Achievement Award in the SASAC's 2025 Smart Supervision
Business Model Innovation Activity marking the accelerated progression of talent management persons
towards digitalization and intelligentization and providing a solid talent guarantee for the high- 17
quality development of the enterprise.Winners of China Youth May
The Company actively constructs a diversified training system featuring "online + offline" Fourth Medal and the New
"practical empowerment" and "cross-regional exchange"; striving to enhance both the political
literacy and business capabilities of employees and synchronously promoting the broadening Era Youth Pioneer Award
of vision and innovation of thinking the Company builds a systematic empowerment and
growth platform to comprehensively cultivate high-quality compound talents. 5 individuals 1 collective
The Company resolutely executes the professional title assessment system and unblocks
the development channels for professional and technical personnel. The Company has Winners of National
established promotion and assessment committees for professional and technical personnel in Civilized Units
multiple series including engineering accounting economics and political work and conducts
qualification assessments for personnel applying for senior professional and technical titles
in the aforementioned series according to the relevant regulations of the Company. In 2025 7 units
6021 persons passed the assessment for senior professional titles and 365 persons for senior
technicians and above in the Company.Number of national-level
The affiliates of the Company extensively and deeply carry out activities such as skill training master artisans
post practice and technological competitions to continuously enhance the overall quality of
technical and skilled talents; the Company attaches importance to discovering innovative and
craftsman-type outstanding talents sets up benchmarks and models through the selection 5 persons
and recommendation mechanism and stimulates the innovative vitality of talents. In 2025 6
persons passed the assessment for chief technicians 67 persons for special-grade technicians
and 292 persons for senior technicians in the Company.
982025 Environmental Social and Governance Report and Sustainability Report
Case China Railway No. 10 Engineering Group Constructs a "Cultivation
Selection Employment and Assessment" Talent System
China Railway No. 10 Engineering Group constructs a new integrated talent cultivation system of "education
selection employment and assessment"; focusing on capability enhancement it carried out over 320
training sessions throughout the year covering 14300 persons and achieving full coverage of key posts.By strengthening top-level design it constructs a vertical and horizontal synergistic talent cultivation
pattern and precisely cultivates urgently needed talents through "order-based classes" school-enterprise
cooperation and new skills training such as intelligent construction.Case Industrial Workforce Development
On June 20 2025 the CREC's Conference on Deepening Industrial Workforce Development Reform was
held in Zhoushan Zhejiang. The event released the CREC's Industrial Reform Implementation Guide and
promotional materials while providing an official interpretation of the Implementation Plan for Deepening
Industrial Workforce Development Reform.Case Mentorship Program
CREC No. 9 Group actively implements a mentorship system selecting business experts as mentors to
impart skills and experience through hands-on guidance. This initiative precisely addresses new employees'
developmental needs accelerating their integration into the Company and mastery of job competencies.Under mentors' dedicated coaching a cohort of new employees has rapidly grown into core technical cadres
at project sites injecting fresh vitality into the Company's high-quality development.
99Jointly Building Harmonious Communities with People-Centered Commitment
Case The 4th Employee Post Competency Competition
In November 2025 CREC held the expressway operation skills event of the 4th Employee Post Competency
Competition with 17 representative teams and 119 frontline skilled cadres from 6 operating units
participating. Centered around core post capabilities such as monitoring road property inspection and
electromechanical engineering the competition tested employees' professional literacy and standardized
operational levels further strengthening the standardization and specialization capability construction of
the operation sector.Case Leadership Development Training
In June 2025 CREC No.3 Engineering Group's Young Cadres Leadership Enhancement Program was
successfully conducted at the China Railway Party School with 34 young cadres from subsidiaries
completing all coursework and graduating. This program represents a key implementation of the "Talent-
Driven Enterprise" strategy by CREC No.3 Engineering Group's Party Committee and a crucial initiative for
building a high-caliber young leadership team.
1002025 Environmental Social and Governance Report and Sustainability Report
Indicator Data Unit
Male 83.5 %
Proportion of trained employees by gender
Female 16.5 %
Senior management 573 persons
Number of trained employees by employee Middle management 8700 persons
category General management 116000 persons
Frontline staff 163977 persons
Male 160 hours
Average training time by gender
Female 150 hours
Senior management 190 hours
Middle management 185 hours
Average training time by employee category
General management 150 hours
Frontline staff 140 hours
Total annual training investment 37896.8 RMB 10000
Number of training sessions conducted 1600 times
Total number of employees trained 289250 persons
Employee training coverage rate 100 %
101Jointly Building Harmonious Communities with People-Centered Commitment
Safeguarding Physical and Mental Health
The Company normalizes the organization of annual health examinations for all employees In 2025
to timely grasp their physical conditions; by achieving early detection early intervention
and early treatment of potential health risks it prevents the occurrence of major diseases
from the source and earnestly fortifies a shield for employees' physical health. In 2025 the Coverage rate of health
coverage rate of health examinations for the Company's employees reached 100%. examinations for the
The Company continuously deepens the Employee Assistance Program (EAP) focusing Company's employees
on employees' core needs such as workplace stress relief emotion management setback reached
coping and career development it normally carries out specialized humanistic care
and psychological counseling services to help employees scientifically cope with various 100%
challenges in work and life thereby escorting employees' mental health. In 2025 the
Company additionally equipped 61 Automated External Defibrillators (AEDs) for the
plateau railway project launched a special pilot for overseas employee health security
and newly cultivated 40 EAP psychological assistance cadres; by continuously shoring up
shortcomings in frontline emergency health security and strengthening the professional
psychological service team it deepens and solidates the employee health protection.China Railway Materials Trading
Luban Commerce Company organised
a “One Painting One Story” workplace
event for Mid-Autumn Festival
OH Card stress management training
during the employee health care
activity of CREC
CREC No. 4 Engineering Group
Southern Xinjiang Science
Popularisation and Cultural ComplexProject carried out the “Health Check-ups at Construction Sites BringingCare to Frontline Builders” initiative
1022025 Environmental Social and Governance Report and Sustainability Report
Case China Railway First Group Advances Employee Mental Health Service Work
China Railway First Group carried out the "Delivering Mental Health Services to the Primary Level" activity;
focusing on employees' concerns and enterprise development needs it developed 5 courses on themes of
positive psychology emotion regulation stress relief parent-child education and female. The Company
connected with the Shaanxi Provincial Federation of Trade Unions and carried out a total of 50 mental
health service activities throughout the year covering nine provinces; among them the group company
dispatched instructors for 42 sessions and the provincial federation of trade unions delivered 8 sessions
serving a total of 5000 persons of frontline employees.A total of Dispatched instructors for Served a total of
50 mental health service 42 sessions 5000 frontline
activities throughout the year employees
Case Firefly Employee Care Activity of China Railway Wuhan Electrification
Engineering Group
China Railway Wuhan Electrification Engineering Group carried out a care month activity themed "Faint
Light of Fireflies Guarding and Accompanying". Relying on a team of 1 supervisor 9 internal trainers
and 48 health committee members the Company carried out 7 "You Order We Deliver" EAP-into-projects
activities serving over 1500 persons; it established 45 spiritual havens achieving a psychological care
coverage rate of over 90% and a satisfaction rate exceeding 98%.EAP served over Established Psychological care coverage Satisfaction rate
rate of over exceeding
1500 45 "spiritual havens" 95% 98%
persons
103Jointly Building Harmonious Communities with People-Centered Commitment
Deepening Employee Care
Adhering to the employee-centric development philosophy and deeply practicing the people-oriented development concept the
Company takes the Implementation Opinions of CREC on Care Services Throughout the Entire Process of Employees' Careers
as the overall guidance to construct a full-cycle multi-level wide-coverage and warm employee care system; by integrating
the enterprise's warm care into the full process of employees' career development it earnestly enhances the sense of gain
happiness and security of the vast number of employees.The Company fully implements the requirements for providing full life cycle care services to employees. Every year it invests
nearly 800 million yuan in trade union funds to focus on key milestones throughout employees’ career development including
onboarding and trade union membership relationship building and courtship marriage and family formation children’s education
medical treatment and hospitalization as well as retirement and departure. It delivers all-round and inclusive care services to all
employees ensuring that corporate care covers every important stage of employees' growth.On the basis of inclusive care the Company continuously constructs a multi-level security system integrating basic social security
enterprise supplementary security and employee mutual assistance security; it normally carries out distinctive brand condolence
activities such as "delivering warmth in winter and coolness in summer" and synchronously establishes a special precise
assistance fund thereby building a solid bottom-line security defense line for the group of employees in difficulties and tightly
weaving the people's livelihood security network for the harmonious and stable development of the enterprise.In 2025 the Company distributed a total of RMB 327 million in condolence payments and relief funds throughout the year and
visited and consoled employees and migrant workers for 420000 persons; it carried out educational assistance for the children of
employees in difficulties funding 3708 employees' children; focusing on precisely implementing policies for groups with special
difficulties it provided bottom-line assistance to 331 families of employees in extreme difficulties and 21 employees with major
diseases earnestly relieving the difficulties of and providing timely help to employees in need.Furthermore the trade union of the Company continuously promotes the upgrading of frontline care positions and invested
a special fund of RMB 2.5 million to support 50 primary-level projects in creating "Happy Homes"; by continuously improving
the working and living conditions of frontline employees and delivering warm care to project frontlines and employees' sides it
earnestly enhances the sense of belonging and happiness of frontline employees.In 2025
Distributed a total of Visited and consoled Financially supported Provided assistance to
RMB 327 million in 420000 3708 331 families of
condolence payments and employees and migrant employees' children employees in extreme difficulties
relief funds workers
Case China Railway No. 9 Engineering Group Carries Out Delivering Warmth in
"Two Festivals" Activity in 2025
The trade union of China Railway No. 9 Engineering Group themed "Warming Employees with True Affection
Jointly Creating a Happy Enterprise" carried out a delivering warmth activity during the New Year and Spring
Festival; it focused on caring for employees suffering difficulties due to major diseases accidents or children's
education advanced model workers frontline employees sticking to their posts during the holidays and
families of overseas employees. Combined with primary-level research the Company's leaders conducted visits
and condolences allocated special funds of RMB 4.1 million and went deep into remote projects families in
difficulties and key engineering sites to convey organizational care through forms such as door-to-door visits
video connections and family symposiums. Furthermore the Company carried out assistance for migrant workers
returning home and condolences for those on duty and organized the "Heart-to-Heart Volunteer Service Team" to
provide door-to-door services for special groups cumulatively consoling 15000 employees and migrant workers
across over 180 projects.Allocated special funds of Visited and consoled migrant workers across over Consoled a total of
RMB 4.1 million 180 projects 15000 employees
1042025 Environmental Social and Governance Report and Sustainability Report
Employee Condolences
"Care Accompanies China Railway No. 5 Stays with You" delivering coolness in summer activity jointly held by the Party
committee administration trade union and Communist Youth League of China Railway No. 5 Engineering Group
Festival Activities
Mother's Day activity of China Railway First Group Spring Festival Carnival activity of China Tiegong Investment
& Construction Group
Care for Employees' Children
China Railway Construction Engineering Operations Summer daycare class for employees' children of China
Company “Nuode Little Sprouts” Family Day Event Railway No. 10 Engineering Group
105Jointly Building Harmonious Communities with People-Centered Commitment
Young Employee Matchmaking
China Railway Major Bridge Engineering Group Eighth Engineering Picture: 2025 collective wedding of China Railway No. 4
Company hosts "Meeting You Bridging Love" youth social event Engineering Group
Cultural and Sports Activities
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Deepening Exchange and Cooperation
CREC consistently adheres to open cooperation and mutual benefit and deepens government-enterprise synergy to drive
policy implementation and effectiveness; it strengthens enterprise-enterprise linkage to promote synergistic win-win
results in the industry chain; and it deepens school-enterprise cooperation to advance the deep integration of industry
academia research and application. At the same time the Company continuously optimizes supply chain management
actively participates in the formulation of industry standards deepens external exchange and cooperation and goes all
out to construct a diversified synergistic mutually beneficial and win-win industrial ecosystem.Participating in Standard Formulation
The Company deeply implements the National Standardization Development Strategy by constructing a multi-tier system
covering international national and industry standards. It actively leads and participates in the formulation and revision
of standards across all infrastructure fields continuously transforming technological innovation achievements and
engineering practices into industry norms. This not only guides the high-quality development of the domestic industry
with high standards but also promotes Chinese standards globally consistently enhancing our international discourse
power in the sector.● National Standard Internet of Things—Logistics Park—part 1: General Requirements for Application
China Railway System
Material Trade
Group ● Group Standard Maturity Evaluation Indicators for Green Supply Chain Management (T/CFLP0077-
2025)
● International Standard IEC SRD 63302-2:2025 Smart City Use Case Collection and Analysis – Intelligent
Operations Centre for Smart Cities – Part 2: High-Level Analysis
China Railway ● International Standard IEC SRD 63302-1:2025 Smart City Use Case Collection and Analysis - Smart
Liuyuan Group City Intelligent Operations Center - Part 1: High-level Analysis
● International Standard IEC 63453:2025 Railway Applications - Current Collection Systems - Validation
of Simulation of The Dynamic Interaction Between Pantograph and Overhead Contact Line
Emphasizing International Exchanges
The Company actively participates in international expos and global industry exhibitions to comprehensively display its
full-industry-chain advantages and innovation achievements in infrastructure construction; by broadly connecting with
global partners and deepening technological exchanges and industrial cooperation it drives the integrated overseas
expansion of Chinese technologies standards equipment and solutions continuously enhances global brand influence
and joins hands with global partners to achieve mutual benefits and win-win results.
107Jointly Building Harmonious Communities with People-Centered Commitment
Case The 8th China International Import Expo
In November 2025 CREC participated in the 8th
China International Import Expo and displayed a
comprehensive digital and intelligent sandbox
presenting the achievements in coordinated
urban and rural regional development and major
infrastructure construction through 5 landmark
projects. This exhibition reflected the Company's
innovative practices in digitalized management and
comprehensive engineering display capabilities
further demonstrating the Company's industry
influence in the fields of infrastructure construction
and digital and intelligent applications.Case The 12th World Congress on High-Speed Railway
In July 2025 CREC intensively displayed more than 20 sets of independently developed intelligent
equipment at the 12th World Congress on High-Speed Railway comprehensively presenting the full-chain
technological system of "digital and intelligent survey - intelligent construction - smart operation" and
demonstrating its industry-leading position in the fields of intelligent construction and equipment R&D.Case China Railway Beijing Engineering Group. Was Invited to Participate in the
2025 inter airport China
China Railway Beijing Engineering Group. was invited to participate in the 2025 inter airport China
displaying its smart construction site platform and digitalized construction technologies and demonstrating
its scientific and technological strength in the field of airport construction. The enterprise possesses "four
special-grade" qualifications and the first-grade qualification for airport runways; it has participated in the
construction of over a hundred domestic and international airports covering multiple professional chains.As a demonstration unit for the construction of "four models" of civil aviation airports the Company takes
the lead in achieving full-cycle BIM applications and has built the first "digital twin" airport in China driving
the synergistic development of intelligent construction and the airport economy and continuously leading
industry innovation.
1082025 Environmental Social and Governance Report and Sustainability Report
Strengthening Diversified Cooperation
Focusing on its main responsibilities and primary businesses the Company continuously strengthens multi-dimensional
cooperation with governments enterprises and universities to promote complementarity of advantages and resource
integration.Government-enterprise cooperation
Centered around key fields such as transport infrastructure urban renewal ecological protection and energy
development it constantly expands cooperation spaces and elevates cooperation levels to drive regional economic and
social development.CREC deepened strategic cooperation with Yunnan CREC signed Strategic Cooperation Agreement with
Province Tangshan Municipal People's Government
Enterprise-enterprise synergy
Focusing on major project linkage industry chain synergy and financial service innovation the Company deepens
cooperative relationships and constructs a new ecosystem of synergistic development assisting all parties to preempt
the initiative in market competition and grow together.CREC deepened strategic cooperation with China National Gold CREC Signed Strategic Cooperation Agreement with China
Group Co. Ltd. COSCO Shipping Corporation Limited
109Jointly Building Harmonious Communities with People-Centered Commitment
School-enterprise co-integration
Jointly building an industry-academia-research platform to promote technological R&D and achievement transformation
and to overcome industry challenges. Through models such as order-based cultivation internship and practical training
and joint scientific research the Company constructs a collaborative education mechanism promotes the deep
integration of the education and talent chains with the industry and innovation chains and precisely delivers high-quality
talents.China Railway Group Limited Signed Strategic Cooperation China Railway Group Limited Established Long-term In-depth
Agreement with Tsinghua University Cooperation with Southwest Jiaotong University
1102025 Environmental Social and Governance Report and Sustainability Report
Strengthening Supply Chain Collaboration
Taking the construction of a full-process supplier management system as a lever the Company deepens the full-chain
synergistic linkage of the supply chain deeply integrates the ESG philosophy into the full process of procurement
management fortifies the defense line for supply chain safety and stability and builds a compliant transparent mutually
beneficial and win-win responsible supply chain.Governance
The Company established a supply chain management governance system characterized by clearly defined authorities
and responsibilities and high operational efficiency comprehensively embedding ESG risk control requirements into
business processes and decision-making mechanisms. It clarified the Production Supervision Center as the centralized
management department responsible for guiding and supervising procurement and supply chain management work
across the entire system and carrying out full-process guidance and supervision over the Company's centralized
procurement business. Strictly according to national laws and regulations it formulated and implemented core systems
such as the Procurement Management Measures Supplier Management Regulations and the Strategic Procurement
Management Regulations providing solid institutional support for supply chain compliance management and risk
prevention and control.Strategy
The Company comprehensively integrates sustainable development philosophy into its supply chain management
strategy; taking digital upgrading and cooperative ecosystem construction as grasps it builds a risk-sharing and benefit-
sharing supply chain system supporting the high-quality development of the enterprise and the synergistic sustainable
development of upstream and downstream partners. Strictly according to Comprehensive Risk Management Measures
it advanced the full-cycle control of supply chain risks; in 2025 it released the annual major risk assessment report
clarifying supplier-related risk items and key control points and implementing tiered control responsibilities.Supplier ESG Management
Through contract clauses the Company clarified the requirements for suppliers to fulfill social responsibilities and focused
on carrying out full-process supervision and guidance around the three dimensions of labor safety protection of migrant
workers' rights and interests and environmental protection.Labor safety and occupational security
Requiring suppliers to implement occupational safety and health security measures increase safety
investments improve safety facilities normally carry out safety training lawfully pay work-related injury
insurance and accidental injury insurance in full for migrant workers strictly prevent safety accidents and
reduce occupational hazards.Maintenance of migrant workers' rights and interests
Requiring suppliers to strictly implement regulations on the payment of migrant workers' wages execute
systems such as dedicated wage accounts deposits and wage distribution by general contractors on behalf
of others and ensure that wages are paid in full and on time; comprehensively implementing the real-name
employment system standardizing the signing of labor contracts and protecting the legitimate rights and
interests of migrant workers.Environmental protection
Setting special environmental protection clauses in contracts requiring suppliers to strictly abide by
environmental protection laws and regulations and comprehensively implement prevention and control
requirements for pollutants such as atmosphere water soil and noise.Meanwhile during the supplier admission stage the Company carries out special training on labor rights and interests and
environmental protection normally organizes publicity and education annually and strengthens responsibility awareness
through manuals and online courses; adhering to transparent procurement and promoting integrity co-construction it builds
a clean and upright cooperative ecosystem by signing integrity clauses issuing notices and holding symposiums.
111Jointly Building Harmonious Communities with People-Centered Commitment
Transparent Procurement
The Company built the CREC e-commerce procurement platform (CREC Luban E-commerce Network) constructed
a full-process transparent procurement system and launched the risk prevention and control center to achieve
closed-loop management of pre-event reminders in-process warnings and post-event rectifications for procurement
risks driving compliance control to be deeply embedded into business processes. Relying on intelligent tools such
as the "Lu Xiaobao" large model and the "Document Checking Assistant" the platform automatically identifies
non-compliant content in bidding documents achieving a transition in risk control from "human monitoring" to
"technological prevention" and enhancing transaction fairness and risk prevention and control capabilities.In 2025 the platform built a master data intelligent matching model and integrated historical data with national and
industry standards to form a knowledge base enhancing the precise search capability for core materials; it launched
the "Smart Bidding" tool to achieve standardization of the bidding process and reduce human intervention while
synchronously exploring the "Assisted Bid Evaluation" agent to optimize the review model through AI empowerment.The platform integrates full-chain data achieving full-process traceability and controllable risks.By the end of 2025 the platform served 48 secondary companies and over 30000 projects with 563700 certified
suppliers and 143000 active suppliers; its annual transaction volume exceeded RMB 857.8 billion and its historical
cumulative transaction volume reached RMB 4.57 trillion.By the end of 2025
563700 143000 Annual transaction volume Historical cumulative exceeded transaction volume reached
Certified suppliers Active suppliers
RMB 857.8 billion RMB 4.57 trillion
Supplier Communication
To enhance supply chain management efficiency the Company systematically carried out special training for
supply chain talents covering the full procurement process risk and compliance management and the application
of frontier technologies thus building a compound professional talent team. It strengthened the supervision and
assessment mechanism for the full procurement process clarified assessment standards dynamically monitored key
nodes and established a responsibility traceability system guaranteeing the standardized and efficient operation of
procurement business.
2025 Special Training Class on Procurement and Whole Life-cycle Business Management and Safety Management of China
Railway Material Trade Group
1122025 Environmental Social and Governance Report and Sustainability Report
Case Supply Chain Ecosystem Conference
On August 7 2025 the Company held the Supply
Chain Ecosystem Conference inviting 131 suppliers to
participate; it released annual procurement demands
awarded plaques to 30 high-quality partners and
carried out special promotions around the Luban
Platform the JWW.com Platform strategic emerging
industries industrial products supply chain finance
and smart logistics. The conference promoted resource
integration assisted in constructing a new efficient
intelligent and sustainable supply chain ecosystem
for the construction industry and accelerated the
transformation of the Company into a digitalized
platform-type integrated service provider.Impact Risk and Opportunity Management
Taking the digitalized platform as a cornerstone the Company implemented systematic identification and penetrating
control of sustainable development risks in the supply chain; empowering sustainable procurement with science and
technology it precisely grasped the opportunities for supply chain transformation and upgrading achieving bidirectional
efforts in risk prevention and control and quality and efficiency improvement.Supplier Management Process
Supplier Admission
Establishing a sound supplier admission and evaluation management system the Company conducts
admission reviews for qualified suppliers focusing on examining suppliers' performance in integrity-
based operation work safety and environmental protection to strictly control source risks; suppliers
passing the review are included in the qualified supplier directory.Supplier Assessment
Regularly conducting comprehensive supplier reviews the Company comprehensively evaluates
supplier performance by combining daily evaluations during the performance process with annual
evaluations and incorporates the evaluation results into the annual assessment system. Based on
the evaluation model of the Luban Platform it conducts dynamic evaluations combining daily and
annual assessments to eliminate unqualified suppliers.Supplier Quality Management
In supplier process management the Company pays particular attention to newly selected suppliers
strictly implements system construction requirements and strengthens clauses such as safety and
quality in contracts with Tier-3 subsidiaries and operation centers conducting official briefings
on centralized procurement plans technical standards safety production responsibilities and
compensation mechanisms..Supplier Exit
Establishing a negative list of suppliers' bad behaviors the Company takes control measures such
as issuing warnings restricting bidding suspending cooperation or revoking qualifications against
suppliers with bad behaviors.
113Jointly Building Harmonious Communities with People-Centered Commitment
Case Supply Chain Financial Services of the JWW.com
The JWW.com under CREC provides users with financial services covering multiple forms such as bill
discounting and accounts receivable financing. Among them the "Jimiaotie" module achieves online
bill inquiry and one-click discounting through direct bank connection; in 2025 it completed 691 discount
transactions amounting to RMB 2.803 billion reducing financing costs by RMB 3.2766 million. The "Payment
Agency" module assists in the rapid realization of accounts receivable based on authentic transactions;
in 2025 it facilitated 397 financing transactions amounting to RMB 951 million realizing cash collection of
RMB 283 million for engineering bureaus. The two types of services effectively alleviated suppliers' financial
pressure improved turnover efficiency reduced transaction costs enhanced supply chain synergy and
assisted in the highly efficient linkage and win-win development of upstream and downstream partners in
the industry chain.Indicators and Targets
The Company implements classified and tiered management of suppliers identifying supply chain risks and opportunities
through processes such as admission and evaluation and tracking rectification through a combination of quantitative
and qualitative targets to achieve closed-loop management. Leveraging the Luban Platform the Company conducts
supplier satisfaction surveys and has established a full closed-loop mechanism for handling complaints and suggestions.Based on feedback it has formulated three improvement initiatives—optimising feedback nodes enhancing platform
functionality and strengthening intelligent services—using technology to streamline processes improve service efficiency
and continuously enhance the supply chain collaboration ecosystem.In 2025
Total number of suppliers Satisfaction rate reached
97966 suppliers 96%
1142025 Environmental Social and Governance Report and Sustainability Report
Building Harmonious Communities
CREC actively fulfills the social responsibilities of a central SOE and anchors the goal of building harmonious communities
characterized by extensive consultation joint contribution and shared governance; deeply integrating into the overall
development of domestic localities and overseas project host areas it makes continuous efforts in emergency rescue
and disaster relief rural revitalization public welfare assistance volunteer services and fulfillment of responsibilities in
overseas localities thereby earnestly benefiting community residents with enterprise development achievements and
joining hands to build harmonious and happy homes.Supporting Rural Revitalization
The Company deeply implements General Secretary Xi Jinping's important discourses on work related to agriculture rural
areas and farmers earnestly fulfills its assistance responsibilities orderly advances the implementation of various tasks
and solidly drives the effective connection between consolidating and expanding the achievements of poverty alleviation
and rural revitalization thereby continuously contributing China Railway's strength to promoting agricultural and rural
modernization and accelerating the building of an agricultural powerhouse. In April 2025 the Company held the annual
work conference on rural revitalization and counterpart support to study and discuss the 2025 fund usage plan and the
implementation scheme for key assisted construction projects; it clarified that centering on the theme of "five major
revitalizations" and focusing on the "four major events" of Tibet assistance it would select optimal assistance projects
strengthen training empowerment and deepen consumption assistance based on its own advantages and the resource
endowments of the assisted areas thereby accomplishing the annual objectives with high quality.Educational Support and Vocational Skills Training
The Company actively responds to the SASAC’s “Central SOEs Talent Development for Rural Revitalisation” initiative
combining motivation-building and capability-building and driving rural development through both education
empowerment and talent cultivation injecting sustainable momentum into rural development and supporting long-term
prosperity.The Company built a drone operation training base at Rucheng Vocational Middle School and established
urgently needed majors such as drones and surveying; with 57 students enrolled in the first session the
teaching results were remarkable it provided a channel for youths in mountainous areas to become
useful talents.Employment rate reached A total investment of
92.9% RMB 4 million
The "Good Driver of Baode" employment brand created in Baode County Shanxi Province adopted an
integrated assistance approach of "training - certification - employment"; by providing special driving
training assisting trainees in obtaining driver's licenses and recommending employment it has driven
over a thousand people to secure employment and significantly increased the average annual income per
household thus becoming a replicable model for skill-based assistance.From July 21 to 27 2025 CREC held the fifth training session on rural
revitalization in Xiamen and Longyan Fujian Province. A total of 45 township
officials and county-level department officials from Rucheng County and
Guidong County Chenzhou City Hunan Province and Baode County
Xinzhou City Shanxi Province participated in the entire training program.
115Jointly Building Harmonious Communities with People-Centered Commitment
Agricultural Support and Industrial Development
The Company leverages the resource endowments of assisted regions develops characteristic agricultural industries
tailored to local conditions and supports industrial revitalisation and increased farmer incomes through technology
introduction value chain extension and industrial integration.In continuously building the distinctive brand of Baimao Tea in Rucheng County Hunan
Province the Company added 30 mu of seedling bases and 1200 mu of high-standard
tea gardens in 2025 established a "parent-subsidiary trademark" system and explored
innovative models such as contract farming; the support case was selected into the Blue
Book on Environmental Social and Governance (ESG) for Listed Companies of Central
State-owned Enterprises.Focusing on the core shortcomings of "insufficient primary industry standardization and
weak secondary industry processing capability" in Guidong County Hunan Province
the Company constructed a full-chain system taking the cold-water rice industry as
a breakthrough point; synchronously introducing smart agricultural technologies to
empower the production end it built a characteristic industrial base for high-mountain
cold-water rice in Heping Terraces increasing the average yield per mu to 625 kilograms
representing a yield increase of over 20% compared to traditional planting models.The 5 MW Pioneer Photovoltaic Power Station invested in Baode County Shanxi Province
cumulatively generated 5.92 million kWh of electricity throughout the year generating
a revenue of RMB 2 million; it built 21000 mu of high-standard farmland benefiting 28
administrative villages across 5 townships.Infrastructure Construction and Livelihood Improvement
Fully leveraging its advantages in infrastructure construction the Company improved traffic conditions strengthened
human settlement environment governance and enhanced village appearances to assist in rural transformation; by
enabling villagers to genuinely experience the new changes of convenient transportation beautiful environments and
affluent lives it made a significant and profound contribution to the rural revitalization.The Yunyang District High-standard Farmland Project of China
Railway No. 10 Engineering Group solves the bottlenecks of mountain
agriculture through systematic construction
1162025 Environmental Social and Governance Report and Sustainability Report
Case Harmonious and Beautiful Rural Water Vein Guarding Plan
In December 2025 CREC and Xinhuanet jointly launched the "Harmonious and Beautiful Rural Water Vein
Guarding Plan" to improve rural water ecological environments and drive rural revitalization. The Company
is committed to significantly improving the water vein health conditions of 1000 villages between 2026
and 2030 and building 100 industrial revitalization demonstration points of "Beautiful Water Villages".Furthermore the Company is dedicated to cultivating a specialized rural water steward team of over
10000 personnel and systematically unearthing and disseminating rural water vein culture thereby driving
the comprehensive enhancement of rural ecological economic and cultural values.Deepening Assistance to Xinjiang and Tibet
Resolutely serving the national strategies of assisting Xinjiang and Tibet CREC deeply cultivates the border areas of
Xinjiang and Tibet; taking the primary business of infrastructure construction as its core it advances the construction of
major transport projects and livelihood projects such as education and medical care with high quality. Strictly guarding
the ecological protection red line during construction the Company actively drives local employment and cultivates skilled
local talents to fortify the foundation of border development thereby assisting coordinated regional development and
rural revitalization.In June 2025 the Tibet Autonomous Region
Hospital constructed by CREC was officially
opened in Lhasa; as one of the "Three
Major Livelihood Projects" supporting Tibet's
development i t mainly undertakes the
diagnosis and treatment of difficult critical
and severe diseases as well as emergency
rescue tasks for sudden public events across
the region achieving the goal of "treating
major diseases within Tibet".Since July 2022 CREC has invested a total of
RMB 76.75 million in counterpart assistance to
Karuo District Qamdo Tibet and dispatched
multiple officials on aid-Tibet missions; it
has focused on building and putting into
operation a batch of infrastructure and public
service facilities such as township schools and
health centers substantially improving the
production and living conditions of the masses
in agricultural and pastoral areas.China Railway participated in the construction
of China’s first “Gobi desert and arid region”
large-scale base outbound transmission
project—the Xinj iang Huadian Tianshan
Northern Foothills Base integrating wind
solar thermal power and energy storage into
a unified system transmitting 14.2 billion kWh
of green electricity to the Central China region
annually equivalent to reducing carbon dioxide
emissions by 11.72 million tons successfully
turning the Gobi Desert into an "energy oasis".
117Jointly Building Harmonious Communities with People-Centered Commitment
Case Earthquake Relief and Post-Disaster Reconstruction in Tingri County Tibet
On January 7 2025 a 6.8-magnitude earthquake On October 22 2025 the resettlement housing
struck Tingri County Tibet resulting in significant project in Cuo'ang Village Tingri County Tibet
casualties and the collapse of numerous buildings. assisted by CREC was comprehensively delivered
CREC promptly established a frontline headquarters and 104 disaster-affected households happily moved
for earthquake relief coordinated the resources into their new homes. Adopting the personalized
and personnel of its projects in Tibet and actively design of "one coordinate per household" and
mobil ized human and material resources for the model of "transparent construction + local
emergency rescue operations thereby ensuring part ic ipat ion" the Company synchronously
the basic living needs and a warm winter for the improved infrastructure such as roads water supply
affected population to the greatest extent possible. power supply and enclosing walls comprehensively
improving the living conditions of residents.
1182025 Environmental Social and Governance Report and Sustainability Report
Emergency Rescue and Disaster Relief
The Company attaches great importance to emergency management continuously advances the base construction
and equipment upgrading of the three national professional emergency rescue teams in Kunming Guiyang and
Tibet and coordinately handles personnel replenishment command system optimization coordination mechanism
improvement infrastructure supporting rule and regulation perfection training and drill strengthening and guarantee
system construction thereby significantly enhancing the bases' capabilities in professional rescue rapid mobility and
comprehensive guarantee. In 2025 the Company went all out in emergency rescue and disaster relief successively
participating in major rescue operations including the Tingri earthquake in Tibet the Myanmar earthquake and the
Junlian landslide in Yibin Sichuan Province earning widespread praise from leaders of the State Council SASAC the
Ministry of Emergency Management and various sectors of society.CREC actively participated in the emergency rescue of the landslide in Junlian Sichuan Province
CREC fully participated in flood control and emergency rescue in Miyun Beijing
receiving a letter of thanks from the Beijing Municipal People's Government
CREC fully supported the fire relief and resettlement in Tai Po Hong Kong
119Jointly Building Harmonious Communities with People-Centered Commitment
Practicing Public Welfare and CharityGuided by a spirit of care the Company actively practices volunteerism by carrying out the “Thousands of PeopleHundreds of Teams” volunteer service initiative. Activities focus on disaster relief donations student support during
examinations elderly care and assistance for persons with disabilities delivering warmth and support and contributing
positive energy to society. In 2025 the Company organised more than 1500 youth volunteer service activities with over
15000 participations by young employees and more than 30000 beneficiaries supported.The 2025 national “HundredS e s s i o n s o f A w a r e n e s s
Ca m p a i g n s o n Ca r e a n d
Protect ion of Left -Behind
Children Entering ConstructionSites” and the central SOEs’“Together Safeguarding theFuture” initiative were held at
a China Railway Construction
Engineering Group project site
China Railway No. 9 Engineering Group sponsored the "Civilization The youth service team of China Railway Sixth Group carries out
Practice in My Action" volunteer activity disability assistance activities
1202025 Environmental Social and Governance Report and Sustainability Report
During International Children's Day
volunteers from China Railway No.
4 Engineering Group went to the
Second Hospital of Anhui Medical
University to carry out condolence
act iv it ies donating over 260
loving gifts to hospitalized children
and engaging in companionship
communication and interactive
activities for which they were
awarded the "Loving Devotion
Award".China Railway Tunnel Group organized a team of youth volunteers to specially visit and console Wei Shijie the "elder of nuclear
weapons" who made outstanding contributions to China's nuclear arsenal cause.Safeguarding Cultural Heritage
The Company actively engages in the protection and inheritance of cultural heritage overcomes the technical difficulties
in the integration of cultural heritage protection and modern science and technology and innovatively applies scientific
protection methods providing a "CREC Solution" for inheriting Chinese civilization and enhancing cultural confidence.Case Scientifically Safeguarding Thousand-Year Buddhist Images and Continuing
the Bloodline of Bashu Civilization
Addressing the compound diseases of over 3000 Tang Dynasty
statues at the Qianfoyan Grottoes in Tongjiang the team of
China Railway Wenbao Technological Innovation innovatively
constructed a "four-in-one" scientific protection system; through
precise diagnosis targeted restoration digital preservation and
dynamic monitoring it achieves a balance between cultural
heritage protection and historical information preservation
allowing the thousand-year-old statues to regain their radiance.The team developed 2 national utility model patents and
formed relevant engineering technical reports assisting the The Qianfoyan Grottoes in Tongjiang after being
construction of the scientific and technological demonstration technically protected by China Railway Wenbao
base for grottoes in Sichuan and Chongqing. The project was Technological Innovation
rated as the only high-quality cultural relic protection project in
Sichuan Province in 2025 becoming a model for central SOEs in
safeguarding the roots of stone civilization.
121Jointly Building Harmonious Communities with People-Centered Commitment
Fulfilling Overseas Responsibilities
Adhering to the principle of extensive consultation joint contribution and shared benefits the Company injects
sustainable momentum into the development of host countries through measures such as employment promotion
technological empowerment talent cultivation emergency rescue and disaster relief volunteer services and ecological
co-construction thereby establishing the image of a responsible and accountable international enterprise.Case The "Demonstration New Village" in the DRC: CREC Assists Rural
Revitalization in the Democratic Republic of the Congo
Responding to the "Hundreds of Enterprises Aiding Thousands of Villages" initiative SICOMINES SARL under
CREC invested USD 14.4 million to build a comprehensive community integrating public facilities roads
water and electricity supply and industrial supporting facilities in Yinge Village. Once completed the project
will directly benefit nearly 200 households; by constructing a "planting-processing-breeding" industry chain
it cultivates the endogenous development momentum of the community and forms a sustainable rural
economic model.In terms of agricultural industry support by providing key means of production and transferring planting
technologies the Company effectively improved land output and farmers' income directly supporting the
livelihoods of about 250 households in 5 communities which generated tangible benefits for guaranteeing
community food security and enhancing agricultural resilience.In the field of health care the Company successfully built and delivered a brand-new hospital and a health
center to the community effectively reducing medical risks elevating the level of maternal and child health
and assisting vulnerable groups thereby overall enhancing the regional capabilities in primary surgical
diagnosis and treatment and maternal and child health care.Furthermore the Company improved the teaching environment and sanitary conditions for teachers and
students and enhanced the safety security and teaching functions of the campus exerting a sustainable
and positive effect on guaranteeing educational continuity maintaining campus safety and supporting
children's development.After the successful delivery of the project the Mayor of Idiofa subsequently awarded an honorary
certificate to the project team to commend their highly efficient execution and organizational capabilities.Furthermore the Dean of Kikwit Hospital also sent a letter of gratitude stating that the project will greatly
elevate the level of regional medical services.The "Revitalizing Agriculture in DRC and Benefiting Yinge Village" Dream Realization Action hired technical
experts to guide Yinge villagers in planting corn
1222025 Environmental Social and Governance Report and Sustainability Report
Adhering to localized operation China
Railway No. 9 Engineering Group employed
over 5000 African staff thereby creating
a large number of direct jobs for the local
communities. Meanwhile through mentorship
programs the Company transferred advanced
construction technologies and management
experience to foreign employees enabling
them to grow into technical cadres.The East Africa Company of China Railway
Construction Engineering Grouptrained
over 400 local technical personnel at the
project sites in Dar es Salaam and Dodoma
Tanzania driving the localized application of
Chinese technical standards overseas.The Dominica International Airport Project of
China Railway No. 5 Engineering Group held
the "Silk Road Youth Walking with China
Railway No. 5 Engineering Group Co. Ltd."
youth volunteer service action at the local
Portsmouth Secondary School.China Railway No. 2 Engineering Group
participates in earthquake rescue in
Mandalay Myanmar
123Future Outlook
Future Outlook
Standing at a new historical starting point as we embark on the journey of the "15th Five-Year
Plan" CREC will remain deeply committed to the nation's most critical priorities. With the goal
of building a world-class enterprise we will focus our efforts on forging a national champion
that shoulders significant responsibilities a trailblazer leading infrastructure development
an industry chain leader driving green transformation a globally respected multinational
corporation and a modern enterprise trusted by society. By actively fulfilling our mission
in supporting major national strategies advancing global infrastructure connectivity and
promoting harmony between humanity and nature we will continue to make new strides.CREC is dedicated to contributing its enduring strength to the sustainable development of the
economy and society as well as to shared prosperity around the world.
1242025 Environmental Social and Governance Report and Sustainability Report
Appendices
Appendix I: Key Performance Table
Indicator 2025 Unit
Scope 1 GHG emissions 6120704 tons of CO2 equivalent
tons of CO equivalent /
Scope 1 GHG emission intensity 0.06 2
RMB 10000
Scope 2 GHG emissions 8033268 tons of CO2 equivalent
Greenhouse tons of CO equivalent /
Scope 2 GHG emission intensity 0.07 2
Gas (GHG) RMB 10000
Total GHG emissions (Scope 1 + Scope 2) 14154000 tons of CO2 equivalent
tons of CO equivalent /
Total GHG emission intensity (Scope 1 + Scope 2) 0.1319 2
RMB 10000
Investment in GHG reduction funds 661.5 RMB million
Air emissions 51.56 tons
Sulfur dioxide (SO2) emissions 0.55 tons
Pollutant Nitrogen oxide (NOX) emissions 5.33 tons
Emisson Volatile organic compound (VOCs) emissions 11.66 tons
Particulate matter (smoke and dust) emissions 34.01 tons
Wastewater discharge 82432600 tons
Hazardous waste emissions 1888 tons
Hazardous waste intensity 0.018 kg/RMB 10000
Waste Non-hazardous waste disposal rate 100 %
Disposal Non-hazardous waste emissions 4857700 tons
Non-hazardous waste intensity 0.044 ton/RMB 10000
Non-hazardous waste disposal rate 100 %
Number of major environmental accidents 0 time
Environmental Number of drills for environmental emergencies 12199 times
Compliance in the year
Management Environmental protection investment 1938 RMB million
Environmental protection training sessions 46 sessions
Total energy consumption 3944602 tons of standard coal
tons of standard coal/
Utilization of Energy intensity 0.036 RMB 10000
Energy
Gasoline consumption 443736 tons
Diesel consumption 1329860 tons
125Appendices
Indicator 2025 Unit
Coal consumption 116060 tons
Natural gas consumption 64930000 m3
Utilization of Heat consumption 45590 GJ
Energy Electricity consumption 9578.41 GWh
Electricity consumption intensity 87.56 kWh/RMB 10000
Consumption of renewable resources 355014 tons of standard coal
Water consumption 371839400 m3
Water
Resource Water intensity 3.40 m3/ RMB 10000
Utilization
Recycled water volume 148736000 m3
Total number of employees 289250 persons
Total number of Full-time 289250 persons
employees by
employment type Part-time 0 persons
Senior professional
titles (including senior 57115 (6128) persons
professional)
Intermediate professional
85681 persons
Number of titles
employees by Assistant-level
level 71997 personsprofessional title
Employees at the clerk
17519 persons
level and below
Others 56938 persons
Total number of Male 241470 persons
Employees employees by
gender Female 47780 persons
Under 35 years old 117043 persons
Total number of
35-50 years old 115648 persons
employees by age
Over 50 years old 56559 persons
Total number of Domestic 283486 persons
employees by
region Overseas 5764 persons
College degree and below 83500 persons
Total number
of employees Bachelor's degree 188414 persons
by educational Master's degree 16898 persons
background
Doctoral degree 438 persons
1262025 Environmental Social and Governance Report and Sustainability Report
Indicator 2025 Unit
Proportion of women in senior management 2.3 %
Total number of ethnic minority employees 12717 persons
Total number of newly recruited employees 9346 persons
Percentage of labor contract coverage 100 %
Average paid annual leave days per person 10 days
Social insurance coverage 100 %
Work-related injury insurance coverage 100 %
Employees Employee turnover rate 2.75 %
Employee Male 89.5 %
turnover rate by
gender Female 10.5 %
Under 35 years old 86.9 %
Employee
turnover rate by 35-50 years old 11.6 %
age
Over 50 years old 1.5 %
Mainland China 98.03 %
Employee
turnover rate by Overseas regions and
region Hong Kong Macao and 1.97 %
Taiwan
Number of employees with newly diagnosed
0 person
occupational diseases
Occupational Major work safety liability accidents 1 incident
Health and
Safety (OHS) Physical examination coverage rate 100 %
Workdays lost due to work-related injuries1 0 day
1 Statistical scope covers employees at China Railway headquarters
127Appendices
Indicator 2025 Unit
Occupational Newly added occupational disease cases 0 person
Health and
Safety (OHS) Investment in work safety 23547 RMB million
Total annual training investment 37896.8 RMB 10000
Number of training sessions conducted 1600 times
Total number of employees trained 289250 persons
Training participation rate 100 %
Percentage Male 83.5 %
of trained
employees by
gender Female 16.5 %
Male 160 hours
Average training
hours by gender
Staff Female 150 hours
Training and
Development Senior management 573 persons
Total number
of employees Middle management 8700 persons
trained by
employee General management 116000 persons
category
Frontline staff 163977 persons
Senior management 190 hours
Average Middle management 185 hours
training hours
by employee
category General management 150 hours
Frontline staff 140 hours
1282025 Environmental Social and Governance Report and Sustainability Report
Indicator 2025 Unit
Total R&D investment 22520 RMB million
R&D investment as percentage of core business
2.06%
revenue
Number of R&D personnel 36912 persons
Proportion of R&D personnel to the total
12.76%
number of employees
National key scientific research projects
7 items
undertaken
Innovation- Number of core papers published 1061 articles
driven
Development Number of patents held 48029 items
Number of patents authorized 8540 items
Number of invention patents 3624 items
Number of overseas patents 194 items
Number of software copyrights obtained 906 items
Contract review rate 100 %
Number of complaints about products and
0 case
services
Product
and Service Number of incidents involving infringement of
0 case
Safety and customer privacy and information security
Quality
Number of complaints from customers 0 case
Total number of suppliers 97966 suppliers
Total number of Chinese suppliers 91948 suppliers
Supply Chain
Security Number of suppliers from Hong Kong Macau
808 suppliers
and Taiwan
Number of overseas suppliers 5210 suppliers
129Appendices
Indicator 2025 Unit
Rural Total investment amount in poverty alleviation and rural
87.60 RMB million
Revitalization revitalization
Social
Total amount of public welfare donations 9.24 RMB million
Contributions
Number of corruption lawsuits filed 15 items
Number of directors receiving anti-corruption training 8 persons
Anti- Average hours of anti-corruption training received by
8 hours
commercial directors
Bribery
and Anti- Number of employees participating in anti-bribery and anti- 136216 persons
corruption corruption training
Average hours of anti-corruption training received by
4 hours
employees
Amount involved in cases caused by the Company's unfair
0 RMB 10000
competition practices
Total assets 2470.58 RMB billion
Operating revenue 1093.49 RMB billion
Amount of newly signed contracts 2750.9 RMB billion
Economic
Performance
Total profit 33.54 RMB billion
Net profit 26.347 RMB billion
Total tax payment 35.078 RMB billion
Number of directors 7 persons
Number of female directors 1 person
Proportion of female directors 14.3 %
Corporate
Governance
Number of Nomination Committee meeting 3 times
Number of Board Meetings held 11 times
Number of Shareholders' Meetings held 1 time
1302025 Environmental Social and Governance Report and Sustainability Report
Appendix II Indicator Index of Guidelines No.14 of Shanghai
Stock Exchange for Self-Regulation of Listed Companies—
Sustainability Report (Trial)
Dimension SN Topics Corresponding Article Report Chapter
Responding to Climate
1 Respond to Climate Change Article 21-Article 28
Change
2 Pollutant Emissions Article 30 Air Emissions Management
3 Waste Management Article 31 Waste Management
Ecosystem and Biodiversity Protecting Natural
4 Article 32
Conservation Ecosystems
Environment Strengthening
Environmental Compliance
5 Article 33 Environmental
Management
Management
6 Energy Utilization Article 35 Energy Management
Water Resource
7 Water Utilization Article 36
Management
8 Circular Economy Article 37 Circular Economy
Supporting Rural
9 Rural Revitalization Article 39
Revitalization
Building Harmonious
10 Social Contribution Article 40
Communities
Strengthening
11 Innovation Drive Article 42
Technological Innovation
12 Ethics in Technology Article 43 Not Applicable
Strengthening Supply
Social 13 Supply Chain Security Article 45 Chain Collaboration
Equal Treatment of Small and Medi- Lawful and Compliant
14 Article 46
um-sized Enterprises Operations
Product and Service Safety and Forging Craftsmanship
15 Article 47
Quality Quality
Data Security and Customer Privacy Information Security and
16 Article 48
Protection Privacy Protection
Fostering Employee
17 Employee Article 50
Growth
Strengthening Supply
18 Due Diligence Article 52
Chain Collaboration
Governance Stakeholder
Related to 19 Stakeholder communication Article 53 Communication
Sustainable
Anti-commercial Bribery and Anti-Commercial Bribery
Development 20 Article 55
Corruption and Anti-Corruption
21 Anti-unfair Competition Article 56 Anti-Unfair Competition
131Appendices
Appendix III Indicator Index of Environmental Social and
Governance Reporting Code issued by the Stock Exchange of
Hong Kong Limited
Environmental Social and Governance Aspects and General
Disclosures & Key Performance Indicators (KPIs) Report Chapter
Environment
Information on:
(a) the policies; and
General (b) compliance with relevant laws and regulations that have
disclosure a significant impact on the issuer relating to air emissions Reducing Pollutant Emissions
discharges into water and land and generation of hazardous
and non-hazardous waste.A1.1 The types of emissions and respective emissions data. Air Emissions ManagementAppendix I Key Performance Table
A1: Emissions A1.3 Total hazardous waste produced and intensity. Waste ManagementAppendix I Key Performance Table
A1.4 Total non-hazardous waste produced and intensity. Waste ManagementAppendix I Key Performance Table
A1.5 Description of emission target(s) set and steps taken to achieve them. Environmental Management System
Description of how hazardous and non hazardous wastes are
A1.6 handled and a description of reduction target(s) set and steps Waste Management
taken to achieve them.General Policies on the efficient use of resources including energy
disclosure water and other raw materials. Energy Management
A2.1 Direct and/or indirect energy consumption by type (e.g. Energy Managementelectricity gas or oil) in total and intensity. Appendix I Key Performance Table
A2.2 Total water consumption and intensity. Water Resource ManagementAppendix I Key Performance Table
A2: Use of
Resources A2.3 Description of energy use efficiency target(s) set and steps taken to achieve them. Energy Management
Description of whether there is any issue in sourcing water that
A2.4 is fit for purpose water efficiency target(s) set and steps taken Water Resource Management
to achieve them.A2.5 Total packaging material used for finished products and with reference to per unit produced. Not Applicable
General Policies on minimising the issuer’s significant impacts on the
disclosure environment and natural resources Protecting Natural Ecosystems A3: Environment
and Natural Description of the significant impacts of activities on the
Resources A3.1 environment and natural resources and the actions taken to Protecting Natural Ecosystems
manage them.Social
Information on:
(a) the policies; and
General (b) compliance with relevant laws and regulations that have
disclosure a significant impact on the issuer relating to compensation
Standardizing Employee
and dismissal recruitment and promotion working hours rest Recruitment
periods equal opportunity diversity anti-discrimination and
B1: Employment other benefits and welfare.Total workforce by gender employment type age group and Standardizing Employee B1.1 geographical region. RecruitmentAppendix I Key Performance Table
B1.2 Employment turnover rate by gender age group and geo-graphical region. Appendix I Key Performance Table
1322025 Environmental Social and Governance Report and Sustainability Report
Environmental Social and Governance Aspects and General
Disclosures & Key Performance Indicators (KPIs) Report Chapter
Information on:
(a) the policies; and
General (b) compliance with relevant laws and regulations that have Strengthening the Foundation of
disclosure a significant impact on the issuer relating to providing a Safety
safe working environment and protecting employees from
B2: Health and occupational hazards.Safety
B2.1 Number and rate of work-related fatalities occurred in each of Strengthening the Foundation of the past three years. Safety
B2.2 Lost days due to work injury. Appendix I Key Performance Table
B2.3 Description of occupational health and safety measures Strengthening the Foundation of adopted and how they are implemented and monitored. Safety
General Policies on improving employees’ knowledge and skills for
disclosure discharging duties at work. Description of training activities. Building Development Platforms
B3: Development B3.1 The percentage of employees trained by gender and employee Building Development Platformsand Training category. Appendix I Key Performance Table
B3.2 The average training hours per employee by gender and Building Development Platformsemployee category. Appendix I Key Performance Table
Information on:
General (a) the policies; and(b) compliance with relevant laws and regulations that have a Standardizing Employee disclosure significant impact on the issuer relating to preventing child and Recruitment
B4: Labor forced labour.Standards
B4.1 Description of measures to review employment practices to Standardizing Employee avoid child and forced labour. Recruitment
B4.2 Description of steps taken to eliminate such practices when Standardizing Employee discovered. Recruitment
General Policies on managing environmental and social risks of the Strengthening Supply Chain
disclosure supply chain. Collaboration
B5.1 Number of suppliers by geographical region. Appendix I Key Performance Table
Description of practices relating to engaging suppliers number
B5.2 of suppliers where the practices are being implemented and Strengthening Supply Chain
B5: Supply Chain how they are implemented and monitored. Collaboration
Management
Description of practices used to identify environmental
B5.3 and social risks along the supply chain and how they are Strengthening Supply Chain
implemented and monitored. Collaboration
Description of practices used to promote environmentally
B5.4 preferable products and services when selecting suppliers and Strengthening Supply Chain
how they are implemented and monitored. Collaboration
Information on:
(a) the policies; and
General (b) compliance with relevant laws and regulations that have a
disclosure significant impact on the issuer relating to health and safety Forging Craftsmanship Quality
advertising labelling and privacy matters relating to products
and services provided and methods of redress.B6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons. Not Applicable
B6: Product
Responsibility B6.2 Number of products and service related complaints received and how they are dealt with. High-Quality Customer Service
B6.3 Description of practices relating to observing and protecting intellectual property rights. Protecting Intellectual Property
B6.4 Description of quality assurance process and product recall procedures. Protecting Intellectual Property
B6.5 Description of consumer data protection and privacy policies Information Security and Privacy and how they are implemented and monitored. Protection
133Appendices
Environmental Social and Governance Aspects and General Disclosures &
Key Performance Indicators (KPIs) Report Chapter
Information on:
General (a) the policies; and Anti-Commercial Bribery
disclosure (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to bribery extortion fraud and and Anti-Corruption
money laundering.Number of concluded legal cases regarding corrupt practices brought Anti-Commercial Bribery
B7: Anti-corruption B7.1 against the issuer or its employees during the reporting period and the and Anti-Corruption
outcomes of the cases. Appendix I Key Performance Table
B7.2 Description of preventive measures and whistle-blowing procedures Anti-Commercial Bribery and how they are implemented and monitored. and Anti-Corruption
B7.3 Description of anti-corruption training provided to directors and staff. Appendix I Key Performance Table
General Policies on community engagement to understand the needs of the
disclosure communities where the issuer operates and to ensure its activities take
Building Harmonious
into consideration the communities’ interests. Communities
B8: Community
Investment B8.1 Focus areas of contribution. Appendix I Key Performance Table
B8.2 Resources contributed to the focus area. Appendix I Key Performance Table
Climate-Related Disclosure Indicators Related Chapter
Disclose the governing body or individual responsible for oversight of climate-
related risks and opportunities including how competency is available the
Governance frequency and manner of being informed about risks and opportunities how Responding to Climate they are considered in decision-making oversight of target setting and progress Change — Governance
towards targets as well as the management's role in relevant processes and
integration with internal functions.Strategy-Business model Describe the current and anticipated effects of climate-related risks and
and value chain opportunities on the business model and value chain identifying areas of
Responding to Climate
concentration. Change — Strategy
Disclose strategies and plans to address risks and opportunities including changes
Strategy-Strategy and to the business model adaptation or mitigation efforts transition plans methods Responding to Climate
decision-making to achieve climate targets plans of resource allocation for actions and progress Change — Strategy
against previous plans.Strategy-Financial
position financial Disclose the current and anticipated financial impacts of climate-related risks and
performance and cash opportunities on the issuer's financial position financial performance and cash
Responding to Climate
flows flows during the reporting period.Change — Strategy
Strategy-Resilience Disclose the Company's assessment of its climate resilience and the conduct of Responding to Climate climate-related scenario analysis. Change — Strategy
Disclose the processes and policies used to identify assess prioritise and monitor Responding to
Risk Management climate-related risks and opportunities as well as how these risks and opportunities Climate Change —
are integrated into the company's overall risk management framework. Risk and Opportunity Management
Disclose the absolute gross greenhouse gas emissions for Scope 1 Scope 2
Metrics and Targets- and Scope 3 during the reporting period. The disclosure should specify the Responding to Climate
Greenhouse gas measurement methodologies input data assumptions and reasons for any Change — Indicators
emissions changes. Additionally disclose Scope 2 emissions using the location-based method and Targets
and indicate the categories included in Scope 3.Disclose qualitative and quantitative climate-related targets including metrics
used to set the target purpose scope of application time frame baseline period
Metrics and Targets- interim targets target type and linkage to international agreements. Disclose the Responding to Climate
Climate-related targets methodology for setting and reviewing targets metrics for monitoring progress Change — Indicators toward targets and analysis of target performance and trends. For greenhouse and Targets
gas emission targets disclose the types of gases covered scope and gross or net
target amount.
1342025 Environmental Social and Governance Report and Sustainability Report
Appendix IV Terms and definitions
Short Name Full Name
1 CREC/Company/We China Railway Group Limited
2 China Railway First Group China Railway First Group Co. Ltd.
3 China Railway No. 2 Engineering Group China Railway No. 2 Engineering Group Co. Ltd.
4 China Railway No. 3 Engineering Group China Railway No. 3 Engineering Group Co. Ltd.
5 China Railway No. 4 Engineering Group China Railway No. 4 Engineering Group Co. Ltd.
6 China Railway No. 5 Engineering Group China Railway No. 5 Engineering Group Co. Ltd.
7 China Railway Sixth Group China Railway Sixth Group Co. Ltd.
8 China Railway Seventh Group China Railway Seventh Group Co. Ltd.
9 China Railway No. 8 Engineering Group China Railway No. 8 Engineering Group Co. Ltd.
10 China Railway No. 9 Group China Railway No. 9 Group Co. Ltd.
11 China Railway No. 10 Engineering Group China Railway No. 10 Engineering Group Co. Ltd.
12 China Railway Major Bridge Engineering Group China Railway Major Bridge Engineering Group Co. Ltd.
13 China Railway Tunnel Group China Railway Tunnel Group Co. Ltd.
14 China Railway Electrification Engineering Group China Railway Electrification Engineering Group Co. Ltd.
China Railway Wuhan Electrification Engineering
15 China Railway Wuhan Electrification Engineering Group Co. Ltd.
Group
16 China Railway Construction Engineering Group China Railway Construction Engineering Group Co. Ltd.
17 China Railway Guangzhou Engineering Group China Railway Guangzhou Engineering Group Co. Ltd.
18 China Railway Beijing Engineering Group China Railway Beijing Engineering Group Co. Ltd.
19 Shanghai Civil Engineering Co. Ltd. of CREC Shanghai Civil Engineering Co. Ltd. of CREC
20 China Railway Investment Group China Railway Investment Group Co. Ltd.
21 China Railway South Investment Group China Railway South Investment Group Co. Ltd.
22 China Railway Communications Investment Group China Railway Communications Investment Group Co. Ltd.
23 China Railway Yunnan Construction Investment China Railway Yunnan Construction Investment Co. Ltd.
China Railway City Development and Investment
24 China Railway City Development and Investment Group Co. Ltd.
Group
25 China Railway (Shanghai) Investment China Railway (Shanghai) Investment Co. Ltd.
26 China Tiegong Investment & Construction Group China Tiegong Investment & Construction Group Co. Ltd.
China Railway (Guangzhou) Investment & China Railway (Guangzhou) Investment & Development Co. Ltd.
27
Development (China Railway Group Limited General Contracting Subsidiary)
28 China Railway Eryuan Engineering Group China Railway Eryuan Engineering Group Co. Ltd.
29 China Railway Liuyuan Group China Railway Liuyuan Group Co. Ltd.
135Appendices
Short Name Full Name
China Railway Engineering Design and Consulting
30 China Railway Engineering Design and Consulting Group Co. Ltd.
Group
China Railway Major Bridge Reconnaissance & Design China Railway Major Bridge Reconnaissance & Design Institute
31
Institute Co. Ltd.
32 China Railway Academy China Railway Academy Co. Ltd.
33 China Railway Huatie Engineering Design Group China Railway Huatie Engineering Design Group Co. Ltd.
34 China Railway Changjiang Transport Design Group China Railway Changjiang Transport Design Group Co. Ltd.
China Railway Water Conservancy & Hydropower China Railway Water Conservancy & Hydropower Planning and
35
Planning and Design Group Design Group Co. Ltd.
36 China Railway International Group China Railway International Group Co. Ltd.
37 China Overseas Engineering Group China Overseas Engineering Group Co. Ltd.
38 CREC International Engineering Branch CREC International Engineering Branch
39 China Railway Hi-Tech Industry China Railway Hi-Tech Industry Corporation Limited
40 China Railway Real Estate Development Group China Railway Real Estate Development Group Co. Ltd.
41 China Railway Resources Group China Railway Resources Group Co. Ltd.
42 China Railway Trust China Railway Trust Co. Ltd.
43 China Railway Finance China Railway Finance Co. Ltd.
44 China Railway Capital China Railway Capital Co. Ltd.
45 China Railway Materials Trade Group China Railway Materials Trade Group Co. Ltd.
46 CREC Cloud Net Information Technology CREC Cloud Net Information Technology Co. Ltd.
136
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