Shandong Gaosu Group
| Company type | State-owned enterprise |
|---|---|
| Industry | Infrastructure, construction, logistics, finance, real estate |
| Founded | July 1997 |
| Headquarters | Jinan , China |
Area served | Over 22 Chinese provinces and 106 countries worldwide |
| Products | Highways, expressways, bridges, railways, urban rail transit systems, ports, maritime shipping, logistics, construction services, building materials, information technology, financial services, real estate development |
| Owner | Shandong Provincial People's Government |
Shandong Hi-Speed Group Corporation (SDHS; Chinese: 山东高速集团有限公司) is a fully state-owned enterprise headquartered in Jinan, China, operating under the jurisdiction of the Shandong Provincial People's Government. The company focuses on investing in, constructing, and managing infrastructure projects such as highways, expressways, bridges, railways, urban rail transit systems, ports, maritime shipping, and logistics. Additionally, SDHS engages in sectors closely linked to its primary operations, including construction services, building materials production, information technology, financial services, and real estate development. In June 2011, the corporation inaugurated the Jiaozhou Bay Bridge—a structure exceeding 40 kilometers that connects Qingdao with Huangdao District—establishing it as the longest sea-crossing bridge worldwide.
SDHS's business footprint extends across over 22 Chinese provinces and reaches into 106 countries globally. The group oversees 2,800 kilometers of expressways and has an extra 1,127 kilometers currently under construction. It also operates 586 kilometers of local rail lines with an additional 743 kilometers in development. A significant achievement includes completing the Shandong segment of the Beijing-Shanghai High-Speed Railway on behalf of the provincial authorities. In 2017, SDHS achieved a net profit amounting to US$1.3 billion.
Aligned with directives from the CPC Central Committee’s Fifth Plenary Session and Shandong’s 13th Five-Year Development Plan, SDHS prioritizes scientific advancement, business transformation and upgrading, reform initiatives, corporate governance enhancement, capital operation optimization, and improvements in quality and operational efficiency. The company’s strategic vision aims to fulfill the "Hi-speed dream" by evolving into a leading Chinese enterprise ranked among the global top 500 firms while fostering employee prosperity.
Corporate history
Established in July 1997 as Shandong Province Highway Limited Corporation following approval by the Shandong Provincial People's Government, SDHS has undergone multiple renamings reflecting changes in ownership structure and strategic focus: renamed Shandong Province Highway, LLC in June 1999; changed to Shandong Province Highway Group Company in January 2005; and adopting its current designation in January 2008.
The group commands control over 30 subsidiaries and affiliated entities, including:
- Shandong Hi-Speed Company Ltd—an influential publicly listed entity holding the largest asset base within China’s highway and bridge engineering industry
- Shandong Hi-Speed Road and Bridge Group Co Ltd—the foremost provincial road and bridge construction firm possessing special class construction qualifications
- China-Shandong Hi-Speed Financial Group—listed on the Hong Kong Stock Exchange
- Shandong Railway Construction and Investment Co Ltd
- China Shandong International Economic and Technical Cooperation Group Ltd
- Weihai City Commercial Bank—the inaugural regional commercial bank established in Shandong Province
- Taishan Property and Casualty Insurance Co Ltd—the first nationwide property insurance company registered in Shandong with SDHS as a principal shareholder
- Qingdao Development Co Ltd—the entity responsible for building the Qingdao Jiaozhou Bay Bridge, recognized as the world’s longest cross-sea bridge
Wholly owned subsidiaries
- Shandong Hi-Speed Investment Holdings Limited
- China Shandong International Economics & Technical Cooperation Group, Ltd.
- Shandong Hi-Speed Rail Transportation Group Co., Ltd.
- Shandong Hi-Speed Construction & Management Co., Ltd.
- Shandong Hi-Speed Logistics Co., Ltd.
- Shandong Hi-Speed Real Estate Group Co., Ltd.
- Shandong Hi-Speed Technology Development Group Co., Ltd.
- Shandong Hi-Speed Service Area Management Co., Ltd.
- Shandong Hi-Speed Sichuan Development Co., Ltd.
- Shandong Hi-Speed Qingdao Development Co., Ltd.
- Shandong Hi-Speed Materials Group Co., Ltd.
- Shandong Hi-Speed Cultural Media Co., Ltd.
- Shandong Hi-Speed Xinlian Payment Co., Ltd.
- Shandong Hi-Speed Yunnan Development Co., Ltd.
- Shandong Hi-Speed Hubei Development Co., Ltd.
- Shandong Hi-Speed Basketball Club Co., Ltd.
- Shandong Hi-Speed Nile Investment & Development Co., Ltd.
- Shandong Hi-Speed (SINGAPORE) Pte Ltd.
- Shandong Hi-Speed Penglai Development Co., Ltd.
Subsidiaries with majority ownership
- Shandong Railway Construction Investment Co., Ltd.
- Shandong Hi-Speed Company Limited
- Shandong Hi-Speed Road and Bridge Group Co., Ltd.
- Weihai City Commercial Bank
- Ji'nan-Qingdao High-Speed Rail Co., Ltd.
- Lunan High Speed Railway Co., Ltd.
- Shandong Hi-Speed Information Engineering Co., Ltd.
- Shandong Hi-Speed Everbright Industrial Fund Management Co., Ltd.
- Shandong Marine Group Ltd.
- Taishan Property & Casualty Insurance Co., Ltd.
- China Shandong Hi-Speed Financial Group Limited
Joint-stock enterprises
- Jinan International Airport Co., Ltd.
- Shandong Marine Shipping Co., Ltd.
Industry sectors
Since its inception, SDHS has expanded operations to more than 22 provinces within China and established a presence in 106 countries worldwide. Its principal industry segments encompass:
1. Expressway construction and management
Expressway operations constitute the core focus of SDHS, primarily driven by its subsidiary, Shandong Hi-Speed Company Limited, which stands as the largest publicly traded entity in China's road and bridge industry, overseeing assets that include 2800 kilometers of expressways. Key expressways under SDHS management include Ji'nan-Qingdao, the Shandong segment of Beijing-Taipei, and Qingdao Jiaozhou Bay Bridge, among others, spanning not only Shandong but also provinces like Henan, Sichuan, Yunnan, Hunan, and Hubei, facilitating cost-efficient expansion strategies.
Currently, expressway construction projects totaling 1127 kilometers are underway, featuring routes such as Weifang-Rizhao and Tai'an Dong'e Expressways.
- Jiaozhou Bay Bridge
Completed in 2011 with an investment exceeding US$1.5 billion, the Jiaozhou Bay Bridge near Qingdao holds the distinction of being the world’s longest over-water roadway bridge and was honored with the George S. Richardson Medal in 2013.
2. Railway operations
SDHS conducts railway activities through its subsidiaries Shandong Railway Construction Investment Co. Ltd and Shandong Hi-Speed Rail Transport Group Co. Ltd. The company holds equity in the Beijing-Shanghai High-Speed Railway, Qingdao-Rongcheng Inter-city Railway, and Shanxi Middle and South Railway lines. It fully controls the 588-kilometer Dezhou-Longkou-Yantai Railway and is investing in national rail projects such as Huanghua-Dajiawa and Qingdao-Rizhao-Lianyungang Railways.
Significant undertakings include the Ji'nan-Qingdao High-Speed Railway (309 km, US$9.1 billion) and Lu'nan High-Speed Railway (494 km, US$11.2 billion). SDHS operates 586 kilometers of local railways with an additional 743 kilometers under development, positioning it as a leading provincial railway operator in China.
3. Logistics sector
Logistics is an increasingly vital business area for SDHS, led by its subsidiary Shandong Hi-Speed Logistics Co. Ltd with capital amounting to US$0.8 billion. It ranks as Shandong’s largest logistics company and is among China's top-tier logistics enterprises. Its scope includes logistics infrastructure such as ports and industrial parks; integration of logistics with financial services and trade; container distribution platforms; and specialized logistics offerings.
The Shandong High Speed West Coast Wisdom Logistics Industrial Park is designed to create an O2O logistics platform. Additionally, SDHS operates an inter-city container logistics platform while developing an automotive industry chain platform centered on Qingdao's International Automobile Industrial City.
4. Port shipping operations
Port shipping activities benefit from regional strategic initiatives like the Shandong Peninsula Blue Economic Zone. SDHS has invested approximately US$0.3 billion in Weifang Port through Bohai Ferry Co., Ltd. It holds a significant stake in Shandong Marine Group Ltd., which serves as the province’s principal ocean technology investment and industrialization entity.
Shandong Ocean Investment Co., Ltd., boasting registered capital of US$0.5 billion and annual revenues around US$11 billion, specializes in marine transportation, marine equipment manufacturing, marine energy resources development, biotechnology applications, and environmental protection efforts related to marine ecosystems.
5. Finance and insurance sectors
Finance and insurance represent SDHS's largest business category.
- Weihai City Commercial Bank
Since its establishment in 1997, this subsidiary has emerged as one of China’s most promising joint-equity commercial banks; it operates more than 80 branches across major cities. The bank reports total assets exceeding US$28.8 billion alongside net profits above US$0.23 billion with annual growth rates surpassing 30%. It has received numerous accolades including the "Golden Dragon Prize for Small and Medium Enterprises" and recognition as one of "China's Best Retail Banks."
SDHS collaborates with China Everbright Limited to create industrial investment funds and maintains controlling interests in Taishan Property and Casualty Insurance Co., Ltd—the first nationwide property insurer headquartered in Shandong—and China Shandong Hi-Speed Financial Group (CSFG).
Together with China Everbright Limited, SDHS manages the SDHS Everbright Industrial Investment Funds targeting financing goals of US$9.1 billion along with plans for a US$3.6 billion Urbanisation Investment Fund dedicated to Shandong Province.
- Shandong Hi-speed Investment Fund Management Company
This private equity firm manages assets exceeding RMB 10 billion, ranking it among the foremost firms within Shandong Province.
7. Construction and building sector
Construction represents a foundational business segment for SDHS.
Its subsidiary, Shandong Hi-Speed Road and Bridge Group Co., Ltd (publicly listed since 2013), has completed over 5000 kilometers of highways both domestically and internationally. It uniquely holds the Special Class (Class 1+) Qualification for highway construction within Shandong Province.
The company has earned numerous prestigious awards including the National Golden Prize for Quality Project, Zhan Tianyou Prize for Civil Engineering Construction, and the Luban Prize—the highest honor in Chinese architectural engineering.
- Shandong Hi-Speed Jiaozhou Bay Bridge
This US$1.5 billion infrastructure project spans 41.58 kilometers across challenging conditions such as high salinity corrosion; it established 21 Chinese enterprise records during construction. Awarded the George S. Richardson Medal in 2013, it is recognized by Guinness World Records as the longest sea-crossing bridge worldwide.
8. Resources extraction and real estate development
Resources extraction alongside real estate form integral parts of SDHS’s comprehensive transport system strategy with rapid growth recently focused on material supply chains, property development projects, and urban operations emphasizing low capital input combined with fast returns.
SDHS owns mineral assets including natural rock asphalt deposits in Sichuan Province as well as zinc and tin mines located in Inner Mongolia; exports of modified asphalt have reached Ethiopia for use in expressway construction projects. A joint venture petrochemical facility established with American Heritage Group aims for an annual output valued at US$6.1 billion.
Collaborating with leading property developers Greentown and Evergrande, SDHS has completed high-end developments such as Qingdao’s West Coast Center—a premium complex combining office spaces with luxury residential units.
9. International operations
SDHS maintains business activities across 106 countries generating total revenues of approximately US$15.2 billion.
- China Culture Center
Planned to open in early 2019 on a 32,300 m2 site in Belgrade, this center will be among the world’s largest cultural institutions—the first of its kind within the Baltic region—supported by Chinese governmental leadership.
- Toulouse Airport Project
In 2014, SDHS acquired a 49.99% ownership stake in Toulouse Airport—the fourth largest passenger airport in France—in collaboration with FPI; marking China’s inaugural acquisition of a foreign airport asset.
Premier Li Keqiang underscored strategic oversight of this asset during his visit to Toulouse in 2015.
- Juba-Rumbec-Bentiu Road Upgrade Project
This E763 expressway initiative in South Sudan represents the longest overseas road project exceeding 1000 kilometers undertaken by Chinese enterprises with substantial investment from SDHS.
Corporate recognition
In 2017, SDHS declared a registered capital amounting to US$3 billion, with yearly revenue reaching $9.1 billion and total earnings of $1.3 billion. Its asset valuation of $83.3 billion positioned it as the leading enterprise among Shandong Province-operated companies and within the same sector nationwide. According to the Ranking List by World Brand Lab, SDHS secured the 146th spot among China's 500 Most Valuable Brands in 2017, boasting a brand worth close to US$4.17 billion. Additionally, the company maintained its presence in the "China Top 500 Companies" list for ten consecutive years.
SDHS has been honored with 41 scientific awards at the ministerial level, which include two Second Class Prizes from the National Scientific and Technology Progress Awards and one Second Class Prize from the National Technology Invention Award.