In-Depth Analysis Report on Personnel Changes at China Railway Engineering Group (CRECG)

Based on the information collected above, I now provide you with a

:

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According to the document Appointment and Removal of 14 Leading Personnel in 11 Central Enterprises released by the State-owned Assets Supervision and Administration Commission (SASAC) on January 8, 2026[1], this personnel adjustment involves:

Item	Details
Appointed Personnel	Zhao Dianlong
New Position	Deputy Secretary of the Party Committee, Director of China Railway Engineering Group Co., Ltd., nominated as candidate for General Manager
Previous Position	Member of the Standing Committee of the Party Committee of China Railway Construction Corporation (CRCC) Co., Ltd., Member of the Standing Committee of the Party Committee and Vice President of China Railway Construction Corporation Limited
Adjustment Type	Horizontal Transfer Across Central Enterprise Groups

Mr. Zhao Dianlong, born in June 1973, is a Chinese national with no right of abode outside China. His professional resume is as follows[2][3]:

• Educational Background
  : Graduated from Northern Jiaotong University with a Master of Engineering degree in Railway Engineering
• Professional Qualifications
  : Professor-level Senior Engineer, recipient of the Special Government Allowance of the State Council
• Key Work Experience
  :
  • Party Secretary, Vice Chairman, Secretary of the Discipline Inspection Commission, and Chairman of the Trade Union of CRCC International Group Co., Ltd.
  • General Manager, Director, and Deputy Secretary of the Party Committee of China Civil Engineering Construction Corporation
  • Chairman and Party Secretary of China Civil Engineering Construction Corporation
  • Appointed as a Member of the Standing Committee of the Party Committee of China Railway Construction Corporation (CRCC) Co., Ltd. in July 2021
  • Appointed as Member of the Standing Committee of the Party Committee and Vice President of China Railway Construction Corporation Limited in August 2021

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Mr. Zhao Dianlong has extensive overseas project management experience, especially with his background as a key leader of CRCC International Group Co., Ltd., which will have a positive impact on CRECG’s overseas business[2][3]:

Capability Dimension	Expected Impact
Overseas Market Development	Leveraging his experience at the international group, he can strengthen the ability to secure projects along the “Belt and Road”
International Project Management	Introduce mature international engineering management experience to improve the execution efficiency of overseas projects
Cross-Cultural Management	Enhance the localization management and risk prevention and control capabilities of overseas teams

CRECG has performed strongly in major project construction recently[4]:

• High-Speed Railway Project
  : Guangming Tunnel of Chengyu-Wanzhou High-Speed Railway was holed through (December 28, 2025)
• Urban Rail Transit Project
  : Multiple urban rail transit lines in Beijing, Shanghai, Guangzhou, Shenzhen and other cities have been put into operation
• Regional High-Speed Railway
  : Xi’an-Yan’an High-Speed Railway was officially put into operation (December 26, 2025)

Mr. Zhao Dianlong’s profound accumulation in China’s civil engineering field will help the company maintain competitive advantages in the following areas:

1. Railway Engineering
   : Continue to consolidate the leading position in high-speed railway construction
2. Urban Rail Transit
   : Strengthen market share in municipal transit projects such as subways and light rails
3. Long Tunnels and Bridges
   : Leverage the company’s technical advantages in construction under complex geological conditions

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This personnel change is a typical case of SASAC promoting talent exchange among central enterprises, reflecting the following strategic intentions:

Strategic Dimension	Impact Analysis
Experience Sharing	Promote mutual learning between CRECG and CRCC in project management, technological innovation, etc.
Resource Integration	Optimize resource allocation among central enterprises and avoid homogeneous competition
Governance Improvement	Introduce new management concepts and governance ideas

Combined with the resolution of the 17th Meeting of the 6th Board of Directors of CRECG on December 31, 2025[5], the company is advancing the following strategic initiatives:

1. Equity Incentive Plan
   : Completed the second batch of share restriction lifting for the reserved portion of the 2021 Restricted Stock Incentive Plan, involving 50 incentive targets with a total of 3,973,988 shares — indicating the company attaches importance to talent binding and long-term incentives
2. Revision of Investment Management Measures
   : Improve the investment management mechanism for domestic infrastructure projects
3. Risk Prediction and Assessment
   : Compiled the 2026 Major Operational Risk Prediction and Assessment Report, reflecting a prudent business attitude

The addition of Mr. Zhao Dianlong is expected to strengthen the company’s strategic implementation in the following aspects:

• Investment Business
  : Leverage his experience in investment and operation to optimize the “integrated investment, construction and operation” model
• Industrial Synergy
  : Promote the coordinated development of businesses such as survey, design, consulting, and engineering equipment manufacturing
• Innovation and Transformation
  : Accelerate the application and promotion of new technologies such as intelligent construction and green construction

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Based on the latest market data[0]:

Indicator	Value	Industry Comparison
Market Capitalization	USD 138.02 billion	Leading large central enterprise in the construction sector
Price-to-Earnings Ratio (P/E)	5.55x	Lower than the industry average, undervalued
Price-to-Book Ratio (P/B)	0.44x	Significantly lower than book value
Return on Equity (ROE)	7.08%	Stable profitability
Latest Quarterly Revenue	RMB 263.56 billion	Year-on-year growth of 0.81%

Time Period	Change
Past 5 Days	+3.14%
Past 6 Months	-3.29%
Past 12 Months	-5.58%
Current Price	USD 5.58

Technically, the stock price is currently at[0]:

• Near the 20-day moving average ($5.45)
• Near the 50-day moving average ($5.51)
• Slightly below the 200-day moving average ($5.63), showing a neutral to slightly weak pattern

In the short term, this routine personnel adjustment is expected to have a limited impact on the stock price, for the following reasons:

1. Normal Term Transition
   : The term of the 6th Board of Directors has expired, and the adjustment of the general manager is a normal personnel replacement
2. Industry Practice
   : Executive exchanges among central enterprises are a common practice, which is conducive to the healthy development of the industry
3. Professional Alignment
   : Mr. Zhao Dianlong’s professional background is highly matched with the company’s business

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Opportunity Area	Specific Performance
Overseas Business Breakthrough	The new leadership’s international resources are expected to drive growth in overseas orders
Investment Business Upgrade	Strengthen the “investment + construction” dual-drive model
Technological and Management Innovation	Introduce advanced management concepts and technical standards
Deepened Central Enterprise Synergy	Promote industrial chain cooperation with peer central enterprises

Risk Type	Explanation
Business Continuity	Business continuity during the transition period between the old and new management needs attention
Strategic Adjustment Period	Phased adjustments may occur in business direction
Market Adaptation	The new leadership needs time to familiarize itself with and adapt to the company

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This personnel change at CRECG is a

, and the new general manager Mr. Zhao Dianlong has:

• Extensive overseas project management experience
• Profound technical background in civil engineering
• Mature governance experience in central enterprises

In the short term (1 to 2 quarters), this change will have a limited impact on the company’s fundamentals, but in the medium to long term (3 to 5 quarters), the new leadership is expected to bring positive changes in the following aspects:

1. Overseas Market Expansion
   : Leverage the new leadership’s international resources to increase the proportion of overseas business
2. Project Quality Improvement
   : Strengthen the risk management and control and execution capabilities of major projects
3. Business Structure Optimization
   : Promote the increase in the proportion of investment and operation business and improve the revenue structure

For investors, it is recommended to pay attention to changes in the following indicators:

• Changes in new contract value in the first quarter of 2026
• Changes in the proportion of overseas business revenue
• Trends in gross profit margin and net profit margin

Overall, as a

, CRECG has strong business support against the backdrop of the in-depth advancement of the country’s “14th Five-Year Plan” and continued efforts in infrastructure construction. The management change brought about by this personnel adjustment will not have a significant negative impact on the company’s long-term development.

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[1] Xinhua News Agency - Appointment and Removal of 14 Leading Personnel in 11 Central Enterprises (https://www.news.cn/politics/20260108/16b315cc6ba545278668f2dbd0655885/c.html)

[2] 2022 Annual Report of China Railway Construction Corporation Limited (http://static.sse.com.cn/disclosure/bond/announcement/company/c/new/2023-03-31/175209_20230331_O4TC.pdf)

[3] Overseas Regulatory Announcement of China Railway Construction Corporation Limited (https://www1.hkexnews.hk/listedco/listconews/sehk/2025/1215/2025121501796_c.pdf)

[4] Official Website of CRECG - Guangming Tunnel of Chengyu-Wanzhou High-Speed Railway was Holed Through (https://www.crecg.com/web/xwzx61/gsyw87/2026010610093788870/index.html)

[5] Sina Finance - Announcement of the Resolution of the 17th Meeting of the 6th Board of Directors of CRECG (http://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=601390&id=11896618)

[0] Jinling API Data