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Chairman's Statement | Board of Directors | Board Committees | Risk Management and Internal Control
Dear shareholders and investors, 

The year 2021 was a milestone year in the history of both the Party and the country, and the first year that China Railway Group had embarked on a new journey based on the 14th Five-Year Plan. Over the past year, faced with challenges brought by great changes and a pandemic unseen in a century, we, guided by General Secretary Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, took the initiative to implement the decisions and plans of the CPC Central Committee and The State Council as well as the work assignments of the State-owned Assets Supervision and Administration Commission. As a “frontier”, we focused on high-quality development, strengthened strategic guidance, adhered to the “123456” work strategy, and vigorously promoted efficiency improvement and value creation, with all economic indicators hitting a record high. Our revenue exceeded RMB1 trillion for the first time, and our ranking among the world’s top 500 companies rose to 35th, making a good start to the 14th Five-year Plan, and delivering excellent results for the Party, the country and the capital market.

In 2021, we, cherishing the greatness of our country, demonstrated our responsibility as a “frontier” by serving the national strategy with our practical implementations and achievements. Based on the national strategy of developing China into a transport powerhouse, coordinating regional development, and revitalizing rural areas, we successfully completed key projects such as the Larin Railway, Facilities for the Beijing Winter Olympic Games, Qingdao Jiaodong International Airport, and the Chibi Yangtze River Bridge, as well as a number of high speed railways linking Beijing with Harbin, Zhangjiajie-Jishou-Huaihua and Mudanjiang-Jiamusi. We made great progress with high standards and quality in the construction of the Sichuan-Tibet Railway, a major project of the century; deeply implemented the Belt and Road Initiative by making steady progress in the construction of major Belt and Road projects such as the Jakarta-Bandung High-speed Railway in Indonesia and the Padma Bridge in Bangladesh, as well as the China-Laos Railway, which was put into service officiated by leaders of China and Laos; implemented ecological and environmental protection measures, and actively participated in the Yangtze and Yellow River basin ecological protection. We also deeply involved in the comprehensive poverty alleviation and rural vitalization efforts and engaged in epidemic prevention and control and earthquake and flood relief in many regions, demonstrating our responsibility as a state-owned enterprise.

This year, we inspired the source of vitality and deepened the enterprise reform as a “frontier” to demonstrate the contemporary spirit of the new era. We developed action plans for management improvement based on world-class standards and fulfilled more than 70% of the targets set out in the three-year SoE reform action plan as scheduled while following the “measurable, assessable, testable, and practical” principles. We established three major systems of “functional management, production and operation management, supervision and security” for the Company headquarters, optimized the operation system and mechanism, promoted the specialized, differentiated and substantive development of investment companies, and introduced a series of major measures to strengthen the building of boards of directors, improve the governance of parent-subsidiary companies and deepen reform of the three systems, in order to build a mature modern enterprise system with Chinese characteristics, further improve the efficiency of enterprise operation and achieve vigorous development of the Company.

This year, we, persisting in self-reliance and self-improvement, demonstrated our pioneering spirit as a “frontier” with fruitful achievements in scientific and technological innovation. Guided by the important instructions of “Three Transformations” made by General Secretary Xi Jinping during his inspection of China Railway Engineering Equipment Group, we, focusing on the “Four Facing” strategic deployment (facing the forefront of science and technology, the main battlefield of the economy, the major needs of the country, and the people’s lives and health), formulated the 14th Five-Year Plan for the development of scientific and technological innovation, strove to create a source of original technologies, and made breakthroughs in key technologies for a number of “high-tech, major, difficult and new” projects. World-leading achievements were attained in three special tasks. CRHEEC was listed on the Science and Technology Innovation Board. Five products, including the full-section tunneling excavator, were selected as national “Manufacturing Champion”. We made great progress in promoting the digital transformation and green construction of enterprises and won 7 National Science and Technology Progress and Invention Awards, 9 China Patent Awards and 12 Zhan Tianyou Awards. One of our engineers was elected as academician of the Chinese Academy of Engineering and two were elected National Survey and Design Masters.

This year, we strengthened our enterprise risk control and effectively demonstrated the corporate governance philosophy of a “frontier” with legal and compliant management. We balanced development and security. Remaining mindful of danger in security and chaos in governance, we took the initiative in proactively identifying and minimizing risk factors, comprehensively examined the subsidiaries’ risk elements, successfully resolved the risks of the “Bandar Malaysia Project” and constantly improved our risk prevention and control capabilities. We strengthened the building of China Railway under the rule of law, in compliance with regulations and fostered a rule of law culture in which the law is always top of mind – the law must be acted upon, the law must be consulted in decision-making, and the law must be relied on in governance. We established a comprehensive risk management system, embedding risk management in all links of enterprise production and operation, focusing on preventing and defusing potential systemic risks, and built a firewall for safe development, thus ensuring the sound, steady and orderly development of the Company.

This year, we strengthened party leadership and demonstrated our political character as a “frontier” through the guidance and guarantee of high-quality Party building. Under the theme of “studying the history of the Party” and “celebrating the centenary”, we carried out the theme activities of “love the Party, love the country and love enterprises with ideals and beliefs” extensively, inheriting the red gene, carrying on the red blood, and arming our mind with the Party’s innovative theory and guiding practice. Following the “two adherence” (Upholding the Party’s leadership over state-owned enterprises is a major political principle, which must be adhered to. The establishment of a modern enterprise system is the direction of state-owned enterprise reform, which must be adhered to.), we integrated the Party’s leadership into all aspects of corporate governance. In the “Year of Innovation and Expansion of Party Building”, we promoted the in-depth integration of Party building, production and management. To meet the needs of high-quality development of enterprises, we created a high-quality professional cadre team. We continued to improve our work style, vigorously promoted the great spirit of Party building, built cultural exhibition halls and spiritual education bases for frontiers with high standards, and created a fresh and righteous atmosphere for people to work and start their own businesses with the spirit of “forever frontier”.

We aim to achieve success amid strong headwinds shouldering great responsibilities. The year 2022 is an important year for China Railway to implement the 14th Five-Year Plan. Beginning at the new starting point of “trillion scale development”, we will, guided by General Secretary Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, stay true to our mission, enhance the “four awareness”, strengthen the “four confidence”, achieve the “two safeguards”, advance vigorously with courage and determination, promote the spirit of “frontier”, and speed up the construction of a world-class enterprise with “outstanding products, outstanding brands, leading innovation and modern governance”, in order to serve the country, contribute to society, and reward the shareholders and employees with high-quality development.

Here, I would like to express my sincere appreciation to the shareholders who have supported the Company’s reform and all walks of life who have shown care to the Company’s development, as well as all the staff who have a shared future with the Company!

Let’s work together to embrace the future!


Chen Yun


 Beijing, China

30 March 2022