New stock news | Kazakhstan National Railway Company submits application to Hong Kong Stock Exchange, fully owned by Kazakhstan's sovereign wealth fund Samruk-Kazyna

According to the disclosure on June 30 by the Hong Kong Stock Exchange, Joint Stock Company National Company Kazakhstan Temir Zholy (hereinafter referred to as "Kazakhstan National Railway Company") submitted an application to the Hong Kong Stock Exchange Main Board, with CICC as its exclusive sponsor. Company Profile According to the prospectus, Kazakhstan National Railway Company is a national transportation and logistics operator in Kazakhstan, providing one of the important land transport corridors connecting Kazakhstan's production centers with China, Central Asia, Russia, the Caspian Sea region, and Europe. Kazakhstan National Railway Company is fully owned by Kazakhstan's sovereign wealth fund Samruk-Kazyna, operating the mainline railway network in Kazakhstan and reportedly owning the country's largest fleet of locomotives and railway vehicles, according to a KPMG report. As of April 1, 2026, Kazakhstan National Railway Company is one of the largest employers in Kazakhstan, with 119,542 employees. The group provides critical freight and passenger services in an inland economy that ranks ninth in the world in terms of land area. Railway transportation plays a key role in bulk commodities, industrial feedstock, industrial finished products, and passenger transportation, especially considering Kazakhstan's vast land area, dispersed population, and limited navigable waterways. The fundamentals of Kazakhstan (including a continuously increasing urbanization rate, population growth, and a mid-term growth expectation of approximately 3.5%) will support the ongoing demand for reliable passenger and freight services. In terms of railway length, Kazakhstan's rail network extends approximately 16,000 kilometers, ranking third among CIS and Baltic countries in terms of gauge 1,520 mm. Kazakhstan National Railway Company operates a comprehensive railway transportation and logistics network, including freight (including multimodal transport logistics) and passenger services. Each division includes supporting infrastructure and services. The group's comprehensive asset base includes approximately 16,000 kilometers of operational railway track, approximately 1,900 locomotives, approximately 47,000 freight cars (including flatbed cars), approximately 2,200 passenger cars, approximately 830 stations, 30 locomotive depots, 17 passenger depots, two seaports, and major freight ports and station assets. This comprehensive network allows the group to coordinate infrastructure, locomotives, ports, stations, and logistics operations along the transportation value chain, and provide customers with railway transportation, maritime transportation, and multimodal transport solutions. The group mainly provides freight services through its comprehensive railway network, including operating the mainline railway network, locomotive traction, railway vehicles, freight agency, freight stations, warehousing, and related services. Freight is the group's largest business segment, covering domestic transportation within Kazakhstan, destination transportation from Kazakhstan to foreign countries, import transportation to Kazakhstan, and multi-country cross-border transit transportation through Kazakhstan. Financial Information Total Revenue and Other Income In the years 2023, 2024, and 2025, the company's total revenue and other income were approximately 1.93 trillion tenge, 2.16 trillion tenge, and 2.76 trillion tenge respectively. Gross Profit In the years 2023, 2024, and 2025, the company recorded gross profits of approximately 435.12 billion tenge, 543.25 billion tenge, and 833.32 billion tenge respectively. Net Income In the years 2023, 2024, and 2025, the company's net incomes were approximately 136.84 billion tenge, 160.05 billion tenge, and 343.46 billion tenge respectively. Industry Overview The global logistics industry is a key pillar of the international economy, facilitating the cross-border movement of goods and commodities. According to the International Transport Forum's Transport Outlook, maritime ton-km accounted for approximately 70% in 2019, followed by road (22%) and rail (7%), with rail transport expected to become the fastest-growing main freight mode in the coming decades. Under the decarbonization scenario forecasted by the International Transport Forum, driven by policies, freight modes will shift towards low-carbon land transport, and the market share of railways is expected to rise to 10-13% by 2050. Rail transportation is a structurally crucial component in the Eurasian logistics system. The total size of the Eurasian railway transport market increased from around US$301.1 billion in 2020 to approximately US$416.5 billion in 2025, with a compound annual growth rate of about 6.7%. It is projected that by 2030, the market size will further reach approximately US$527.4 billion, with a compound annual growth rate of around 4.8% from 2025 to 2030. Driving factors include a rise in Eurasian trade volume, expansion of railway transit transportation, modernization of infrastructure, growth in container freight volumes, and the increasing demand for diversified land logistics routes between China, Central Asia, and Europe. Rail transportation occupies a central position in the freight logistics system in Kazakhstan. According to the data from the National Bureau of Statistics of the Republic of Kazakhstan, railway freight transport accounted for 88% of the country's total freight turnover in 2025 (excluding pipeline transportation), equivalent to 361.3 billion ton-km. The size of the railway transport market in Kazakhstan expanded from US$2.7 billion in 2020 to US$6 billion in 2025 (with a compound annual growth rate of 17.3%), and is expected to further reach US$12.1 billion by 2030 (with a compound annual growth rate of 15.1%). Kazakhstan is one of the fastest-growing railway transport markets in the Eurasian region, with its past and forecasted potential growth rates significantly higher than the global average. Board of Directors Information The board of directors consists of nine members, including one executive director, four non-executive directors, and four independent non-executive directors. Directors serve terms not exceeding three years, and are typically not allowed to serve on the board for more than nine years. Equity Structure Samruk-Kazyna was established as a limited liability company on November 3, 2008, based on a presidential decree issued on October 13, 2008, and a resolution passed by the government on October 17, 2008. As of the last feasible date, all of its equity is held by the State Assets and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan on behalf of the Republic of Kazakhstan. The government exercises indirect control over the group through its ownership of Samruk-Kazyna and its regulatory and legislative authority. The government may also influence the group's activities and corporate governance policies through Samruk-Kazyna, but is generally not allowed to interfere with the daily operations of Samruk-Kazyna or the group unless otherwise specified by law or a presidential decree of the Republic of Kazakhstan. Intermediary Team Exclusive Sponsor: China International Finance Hong Kong Securities Limited Auditors: Ernst & Young, Deloitte Reporting Accountants: Ernst & Young, Deloitte Touche Tohmatsu Legal Advisors: Hong Kong Law - Latham & Watkins LLP, International Sanctions Law - Reed Smith LLP, Specific Matters Regarding Kazakhstan Law - Reed Smith LLP, UK Law - Fieldfisher LLP, Kazakhstan Law - Zan Hub LLP, US Law - Proskauer Rose LLP Legal Advisor to the Exclusive Sponsor: Hong Kong Law - Sidley Austin LLP, US and UK Law - Dentons UK and Middle East LLP, Kazakhstan Law - Dentons Kazakhstan LLP Industry Consultant: KPMG Tax and Advisory LLC Compliance Advisor: SOMERLEY CAP Limited Company