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    State-run company admits high reception costs

    Xinhua | Updated: 2013-05-08 21:22

    BEIJING - The China Railway Construction Corporation (CRCC) on Wednesday admitted that its spending on receptions in 2012 was high, vowing to take measures to control the costs.

    The statement came after reports detailing its 837-million-yuan ($135 million) reception fees led to public criticism targeting the management of the Shanghai- and Hong Kong-listed state-run company.

    The costs accounted for 0.17 percent of CRCC's 2012 revenues, an amount lower than what's prescribed in relevant regulations but still high in terms of absolute figures, the company said.

    Reception fees have increased in accordance with operational needs, as the company has expanded fast and market competition has increased, it said.

    The total cost was an aggregation of more than 11,000 CRCC units scattered in over 60 countries and regions, with the spending of each unit averaging 76,000 yuan, it said.

    The company registered annualized growth of 38.4 percent from 2007 to 2010, ranking among the world's largest construction groups, it said.

    High reception costs have raised an alarm at CRCC, the company said, adding that the company's management has made controlling reception costs one of its major tasks.

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