May. 25, 2012 (China Knowledge) - China Railway Group Ltd<601390><0390>, the country's leading railway and highway builder, has teamed up with real estate developer Zhonghong Holding Co Ltd<000979>, had won a property bid in Haikou, Hainan Province for RMB 3 billion on 23, May.

In a statement filed with the Shenzhen Stock Exchange, Zhonghong said it will have a 45% stake in the project, while the remaining 55% will be held by the railway builder.

The property, which is located at the Haidian Island, in Haikou city and covers a sea area of 6.12 square kilometers, is 4.4 km away from the East Coast and 12 km away from the downtown.

An analyst said more than RMB 1.6 billion would be spent on land reclamation, adding that a large-scale and mixed-use tourism property project will be built on the site.

China Railway's net profit attributable to shareholders for the first quarter of 2012 was RMB 915 million, down 44.54 YoY, and its operating revenue declined by 19.11% YoY to RMB 78.57 billion.