New Stock News | Kazakhstan Temir Zholy Passes HKEX Hearing, Accounting for 99.7% of the Country's Total Rail Freight Turnover

According to a disclosure by HKEX on November 11, Joint Stock Company National Company Kazakhstan Temir Zholy (Kazakhstan Temir Zholy) has passed the listing hearing for the HKEX Main Board, with CICC as its sole sponsor. The prospectus shows that Kazakhstan Temir Zholy is the national transport and logistics operator of Kazakhstan, providing key land transport corridors connecting Kazakhstan's production centers with China, Central Asia, Russia, the Caspian region, and Europe. The company is wholly owned by the government through Kazakhstan's sovereign wealth fund Samruk-Kazyna, operates Kazakhstan's mainline rail network, and, according to a KPMG report, has the country's largest fleet of locomotives and rolling stock. As of June 30, 2026, Kazakhstan Temir Zholy was one of Kazakhstan's largest employers, with 119,910 employees. The company provides critical freight and passenger services in a landlocked economy whose territory ranks ninth largest in the world. Rail transport plays a key role in the movement of bulk commodities, industrial raw materials, Shenzhen Agricultural Power Group, manufactured goods, and passengers, particularly given Kazakhstan's vast territory, dispersed population settlements, and limited navigable waterways. Kazakhstan's fundamentals (including a continuously rising urbanization rate, population growth, and medium-term growth expectations of approximately 3.5%) will support sustained demand for reliable passenger and freight services. In terms of rail length, Kazakhstan ranks third among CIS and Baltic countries with a gauge of 1,520 millimeters, with approximately 16,000 kilometers of railway. The company operates an integrated rail transport and logistics network, including: freight (including logistics); and passenger, each segment including supporting infrastructure and support services. Its integrated asset system includes approximately 16,000 kilometers of railway operating mileage, approximately 21,000 kilometers of main track mileage, approximately 2,000 locomotives, approximately 40,000 freight cars including flatcars, approximately 2,200 passenger cars, approximately 830 stations, 30 locomotive depots, 17 car depots, and two seaports and core dry port, freight yard assets. This integrated network enables Kazakhstan Temir Zholy to coordinate infrastructure, rolling stock, ports, freight yards, and logistics operations across the transport value chain, providing customers with rail and sea transport solutions. As a mainline rail infrastructure operator, rail carrier, and transport and logistics service operator, Kazakhstan Temir Zholy primarily conducts freight services through its integrated rail network. The services include providing mainline rail network access, locomotive traction, rolling stock, freight forwarding, freight yards, warehousing, and related logistics services. Freight is the company's largest business segment, covering domestic transport within Kazakhstan, export transport from Kazakhstan to foreign destinations, import transport to Kazakhstan, and multinational cross-border transit transport through Kazakhstan. The company primarily provides passenger services through its wholly-owned subsidiary Passenger Transportation. Kazakhstan Temir Zholy operates socially significant, state-regulated and partially subsidized passenger transport, as well as express transit passenger services operated on a commercial basis with unregulated tariffs. Currently, the company operates 66 socially significant passenger transport routes and 4 express transit passenger routes. Compared with freight, passenger transport accounts for a smaller portion of the company's business, but it remains strategically important given its role as Kazakhstan's national rail operator and the importance of rail services in regional and international passenger connectivity. Financially, for 2023, 2024, 2025, and the six months ended June 30, 2026, the company's revenue was approximately KZT1,934.095 billion, KZT2,163.942 billion, KZT2,757.083 billion, and KZT1,465.691 billion, respectively; profit for the year/period was approximately KZT136.784 billion, KZT160.805 billion, KZT343.646 billion, and KZT191.001 billion, respectively.