We have a 32.5% equity stake in a Sino-foreign joint venture, Nanjing SR Puzhen Rail Transport Co., Ltd, to engage in the development, manufacturing and sale of metro trains, bogies and their related parts. Nanjing SR Puzhen Rail Co., Ltd is only one of four rolling stock companies in the People’s Republic of China (PRC) licensed to manufacture and sell metro trains on a nationwide basis.

CSR Nanjing Puzhen Rolling Stock Works, one of the joint venture partners and the single largest shareholder of the Joint Venture Company, has been engaged in the production of metro train for a significant number of years, and has accumulated a substantial amount of experience and technical expertise during that time. The formation of Nanjing SR Puzhen Rail Transport Co., Ltd serves to build on the strong symbiotic working relationship between the construction of metro trains and the production of large-section aluminium alloy extrusion products engaged by CSR Nanjing Puzhen Rolling Stock Works and our Aluminium Alloy Division respectively. This joint venture demonstrates the commitment of all parties involved to leverage on our individual strengths and generate synergies that could ultimately result in more efficient production.

With the demand for new public transport systems within PRC and the subsequent rail replacement and extension projects, whereby numerous PRC cities are expected to embark on building new, replacement and extension of metro projects, Nanjing SR Puzhen Rail Transport Co., Ltd is well positioned and poised to ride on this growing demand.