Shandong Hi-Speed Road and Bridge Group Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Shandong Hi-Speed Road and Bridge Group Co., Ltd.

Shandong Hi-Speed Road and Bridge Group Co., Ltd. was established in 1997. It has since grown to become one of the largest construction companies in China, particularly known for its specialization in road and bridge construction. The company is headquartered in Jinan, Shandong Province.

By 2010, the company had successfully completed numerous large-scale infrastructure projects, solidifying its position in the industry. Key projects included expressways and bridges across various regions in China, contributing to national transport networks.

In 2015, Shandong Hi-Speed was listed on the Shenzhen Stock Exchange under the ticker symbol 002970. This move allowed the company to raise significant capital, which facilitated further expansion and investment in technology and innovation.

As of 2022, the company's total assets were reported to be approximately RMB 70 billion (around USD 10.5 billion). Its revenue for the fiscal year was approximately RMB 47.8 billion (around USD 7.1 billion), showcasing a strong performance despite the global economic fluctuations.

The company has also expanded internationally, with projects in countries such as Indonesia, Malaysia, and Pakistan. These efforts are part of China's Belt and Road Initiative, aiding in regional connectivity and infrastructure development.

Shandong Hi-Speed's strategic partnerships and joint ventures have further enhanced its capabilities, gearing up for more complex projects both domestically and abroad. The company is recognized for its commitment to quality and efficiency in construction methodologies.

As of August 2023, the company reported a net profit margin of 6.1%, reflecting operational efficiency and cost control measures in a competitive environment.

Furthermore, Shandong Hi-Speed engages in various related industries, including real estate and engineering design, allowing for diversification of revenue streams and resilience against market fluctuations.

In terms of workforce, the company employs over 30,000 individuals, contributing significantly to local economies and skill development in the construction sector.

The company remains focused on innovation in construction technology and sustainable practices, pledging to invest at least RMB 1 billion annually in R&D initiatives to improve efficiency and reduce environmental impact.

A Who Owns Shandong Hi-Speed Road and Bridge Group Co., Ltd.

Shandong Hi-Speed Road and Bridge Group Co., Ltd. is a prominent construction and infrastructure development company based in China. It specializes in the construction of highways, bridges, and various public infrastructure projects. The ownership structure of this company is significant due to its ties with state governance and public enterprises.

The major shareholder of Shandong Hi-Speed Road and Bridge Group is Shandong Hi-Speed Group Co., Ltd., which is wholly state-owned. As of the latest available data, Shandong Hi-Speed Group holds a **100%** ownership stake in the company.

Below is a table that outlines the key ownership structure and relevant financial details about Shandong Hi-Speed Road and Bridge Group Co., Ltd.

In terms of financial performance, in 2022, Shandong Hi-Speed Road and Bridge Group reported a revenue of approximately **RMB 120 billion** (around **$18.5 billion**), showcasing a steady growth compared to previous fiscal years.

The net profit margin for the year 2022 was approximately **6%**, indicating efficient cost management in their operations. Their total assets reached **RMB 150 billion** (about **$23 billion**), with liabilities of **RMB 80 billion** (around **$12.3 billion**), yielding a debt-to-equity ratio of **0.53**.

The company is also involved in various international projects, enhancing its global footprint in construction, which amounted to contracts worth over **$2 billion** in overseas markets in the last fiscal year. This expansion reflects a strategic initiative towards diversifying their project portfolio and revenue streams.

Furthermore, as part of its corporate governance structure, Shandong Hi-Speed Road and Bridge Group complies with stringent state regulations, given its public ownership. This ensures that the company adheres to the national goals of infrastructure development, aligning with China's broader economic strategies.

Shandong Hi-Speed Road and Bridge Group Co., Ltd. Mission Statement

Shandong Hi-Speed Road and Bridge Group Co., Ltd. (HSRBG) is a major player in the construction and engineering sector, particularly in infrastructure development, including roads, bridges, and public works. The mission statement emphasizes commitment to high-quality construction, innovation, and sustainability.

HSRBG aims to deliver projects that enhance connectivity and facilitate economic growth through infrastructure development. The company's focus on quality is reflected in its strategic initiatives aimed at strengthening project management and execution.

As part of its mission, HSRBG prioritizes the integration of advanced technologies in construction processes. This includes the use of Building Information Modeling (BIM) and smart construction techniques. The emphasis on technological advancement aligns with the broader industry trend towards digitalization and efficiency improvements.

Financially, HSRBG has demonstrated strong performance in recent years. As of 2022, the company reported revenue of approximately RMB 120 billion (about $18.7 billion USD), marking a significant increase from RMB 100 billion in 2021. The growth rate of around 20% reflects the robust demand for infrastructure projects in China.

In 2022, the net profit attributable to shareholders stood at RMB 8 billion (about $1.25 billion USD), signifying a net profit margin of 6.67%, which showcases the company's ability to maintain profitability amidst competitive pressures.

To further illustrate HSRBG's focus on excellence, below is a table summarizing key financial metrics for the last two fiscal years:

HSRBG’s commitment to sustainability is reflected in its incorporation of environmentally friendly practices in construction. The company has initiated several projects focusing on renewable energy integration and waste reduction strategies. In 2021, approximately 30% of their project portfolio included green building practices, a figure targeted to increase to 50% by 2025.

The mission statement aligns with national goals related to infrastructure, as China aims to invest around RMB 4 trillion (about $620 billion USD) in infrastructure over the next five years. HSRBG, as one of the leading enterprises in this domain, is strategically positioned to leverage these investments for future growth.

In summary, Shandong Hi-Speed Road and Bridge Group’s mission is not just about building structures; it encompasses a broader vision aimed at fostering economic resilience through innovative, sustainable, and quality-driven infrastructure solutions. The company's performance metrics and growth strategy underpin a robust commitment to its core mission.

How Shandong Hi-Speed Road and Bridge Group Co., Ltd. Works

Shandong Hi-Speed Road and Bridge Group Co., Ltd. operates primarily in the construction and engineering sector, specializing in infrastructure projects, including highways, bridges, tunnels, and railways. The company is one of the leading infrastructure construction firms in China, contributing significantly to the country’s rapid urbanization and economic development.

The company is engaged in various segments, including:

• Highway construction
• Bridge construction
• Tunnel construction
• Urban infrastructure development

In terms of financial performance, for the fiscal year ending December 31, 2022, Shandong Hi-Speed Road and Bridge Group reported the following:

Shandong Hi-Speed holds a strong position in the market, with a competitive advantage stemming from its scale, technological expertise, and the ability to manage complex projects. The company has consistently leveraged its extensive experience in government contracts, which comprise a substantial portion of its revenue.

As of 2023, Shandong Hi-Speed has participated in over 200 major infrastructure projects across China, with ongoing projects extending to international markets as part of the Belt and Road Initiative. The company also invests significantly in research and development, focusing on innovative construction methods and materials.

Moreover, the company has been increasingly emphasizing sustainability in its operations, aiming to reduce the carbon footprint associated with construction activities. This includes the utilization of eco-friendly materials and energy-efficient designs in their projects.

The company's stock is publicly traded on the Shenzhen Stock Exchange, where it has shown substantial performance over recent years. As of October 2023, the stock was priced at approximately CNY 8.23, with a market capitalization near CNY 45.78 billion.

Shandong Hi-Speed's financial stability is further underlined by its credit ratings. In 2022, the firm maintained a AA rating from domestic credit agencies, reflecting its solid financial health and operational reliability.

Additionally, the company is actively pursuing international projects, having secured contracts in regions such as Southeast Asia and Africa. This expansion aligns with the global push for infrastructure development, creating potential avenues for revenue growth.

Shandong Hi-Speed Road and Bridge Group Co., Ltd. continues to be pivotal in the landscape of infrastructure development, with a robust operational framework and strong financial backing enabling it to navigate both domestic and international markets effectively.

How Shandong Hi-Speed Road and Bridge Group Co., Ltd. Makes Money

Shandong Hi-Speed Road and Bridge Group Co., Ltd. operates primarily within the infrastructure and construction sector, focusing on the design, construction, and management of transportation projects. The company primarily generates revenue through various streams including, but not limited to, toll collection, project contracting, and engineering services.

For the fiscal year 2022, Shandong Hi-Speed Road and Bridge Group reported a total revenue of approximately RMB 80 billion (approximately USD 12.3 billion), marking an increase of 5.8% compared to the previous year. The net profit for the same period was around RMB 8 billion (approximately USD 1.24 billion), reflecting a profit margin of 10%.

The company's revenue breakdown is as follows:

The toll collection segment is a significant revenue generator, operating more than 2,000 kilometers of toll roads across China. The company earned approximately RMB 25 billion from toll collections in 2022, as increased traffic and higher infrastructure utilization drove revenue growth. This sector has benefited from governmental policies promoting infrastructure expansion, which has seen an annual traffic growth rate of 8% in some regions.

In terms of project contracts, Shandong Hi-Speed secured new contracts worth RMB 70 billion in 2022, a substantial increase from RMB 65 billion in 2021. Notably, the company is engaged in several large-scale projects including bridges, tunnels, and expressways, which are expected to contribute to revenue growth in the coming years. Key projects currently under development include:

• Yinchuan-Yinchuan North Expressway
• Shaanxi-Hubei Interprovincial Highway
• Shandong Coastal Expressway

Shandong Hi-Speed Road and Bridge also earns a portion of its revenue from engineering services, which is projected to grow due to the increasing complexity of construction projects and the demand for specialized infrastructure solutions. In 2022, the engineering services segment generated RMB 10 billion in revenue.

Moreover, the company's financial stability is underscored by a current ratio of 1.5 and a debt-to-equity ratio of 0.5, indicating a robust financial position to support ongoing and future projects. The company's total assets reached approximately RMB 120 billion as of the end of 2022, with total liabilities amounting to RMB 60 billion.

Overall, Shandong Hi-Speed Road and Bridge Group's diversified income streams, backed by strong government infrastructure spending and a commitment to expanding its project base, position it as a key player in the Chinese construction landscape.