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HONG KONG, Mar 30, 2012 - (ACN Newswire) - Metallurgical Corporation of China Ltd. ("MCC" or the "Company", HKSE: 1618) published its 2011 annual results announcement, which sets out that newly-signed contract value of the Company amounted to RMB227.9 billion, a year-on-year increase of 4.3%; operating revenue of the Company amounted to RMB229.7 billion, a year-on-year increase of 11.3%. However, due to the continuous loss of MCC Huludao Nonferrous Metals Group Co., Ltd., net profit of the Company was RMB3.71 billion, a year-on-year decrease of 33.4%; net profit attributable to equity holders of the Company amounted to RMB4.24 billion, a year-on-year decrease of 20.3%. Although the overall profitability of the Company curtailed slightly in 2011, its traditional construction business still recorded a significant growth in profit.
- Newly-signed contract value of the Company amounted to RMB227.9 billion, a year-on-year increase of 4.3%;
- Operating revenue of the Company amounted to RMB230.2 billion, a year-on-year increase of 11.3%;
- Due to the continuous loss of MCC Huludao Nonferrous Metals Group Co., Ltd., net profit of the Company was RMB3.71 billion, a year-on-year decrease of 33.4%;
- Although the overall profitability of the Company curtailed slightly in 2011, its traditional construction business still recorded a significant growth in profit
MCC primarily engaged in engineering and construction, equipment manufacturing, resources development and property development with diversified business across a number of industries and countries. In 2011:
1. Enhanced comprehensive strength
In 2011, the Company further enhanced its comprehensive strength and ranked no. 297 among Fortune 500 companies in "Fortune" magazine published in 2011, up 18 places, ranked no. 7 in the "225 Global Largest Contractors" by "Engineering News Record" (ENR), up one spot over last year. As a company principally engaging in traditional engineering and construction contract, the Company received 5 Luban Awards, 9 National Quality Construction Awards, 4 National Prizes for Outstanding Survey and Design and 150 High Quality Awards in the Metallurgical Industry (Engineering) in respect of the projects undertaken or in which it had participated, of which engineering accounted for 27 awards, 99 accounted for design and 24 for survey, revealing increasing competitiveness of its core business.
2. Prominent technological achievements
In 2011, the Company invested RMB2.029 billion in technology. As of the end of 2011, the Company has 9 national technology innovation platforms, 52 provincial and ministerial technological innovation platforms and 42 MCC engineering technology centers, under which the Company applied for the approval of 54 national key scientific research projects in 2011 with 2,886 new applications for patents, accumulating 5,984 effective patents. We received 2 National Science and Technology Awards and 8 Metallurgy and Technology Awards, completing the verification of 176 technology achievements and the compilation of 45 national standards and industry standards with our remarkable technological achievements, being the forerunner among state-owned enterprises.
3. Increasing construction of affordable housing while proactively promoting the energy saving and environmental protection industry
In 2011, the Company actively involved in the construction of affordable housing. As of the end of 2011, the Company's total investment in development project plan amounted to RMB 50.87 billion, with planned GFA of 20.637 million sq.m. Investment for the period reached RMB9.31 billion, with area under construction of 10.824 million sq.m., area of newly commenced construction of 4.307 million sq.m. and area completed of 1.231 million sq.m. In addition to the affordable housing business, the Company also stepped up efforts in the emerging energy saving and environmental protection sector. In 2011, a number of representative projects, namely Shandong Yongfeng sintering flue gas desulfurization project, Xinggang sintering residual heat power generation project, Dongbei special steel base environmental relocation project in Dalian, Yangzhou waste-to-energy project, Jinan waste-to-energy project, Xiangyang waste-to-energy project as well as Qinhuangdao waste-to-energy project, have all been completed.
4. Taking the initiative to explore overseas market
In 2011, overseas operating revenue of the Company amounted to RMB13.97 billion, up 12.1% year-on-year. Newly-signed big contracts include the project for petroleum engineering institution of Kuwait University and the India Tata KPO coking project. On 11 August 2011, the Turkish Islamic Windermere (ISDEMIR) steel mill 4# 3,000 m3 blast furnace designed by Huatian Engineering & Technology Corporation, MCC, a subsidiary of the Company, successfully produced iron, being the largest blast furnace in Turkey as well as China's largest overseas constructed blast furnace so far. On top of the engineering and construction, the Company also actively expanded overseas equipment manufacturing, resources development and property development business.
1) Steadfast growth in traditional business
As the largest metallurgical engineering contractor in the world, the traditional principal business of the Company will maintain stable development as a result the factors such as optimization of steel varieties and rising demand for high-end products; energy-saving and emission reduction, technological upgrade and relocation of urban steel factories; phasing out of outdated production capacity for new capacities; and adjustment in layout of steel industry, the completion of Zhanjiang and Fangchenggang premium steel bases during the 12th Five-Year Plan period. Meanwhile, with the new targets set in respect of reducing cost and increasing profit and energy-saving and emission reduction, there will be new needs for technology upgrading for metallurgical equipment and thus more growth potential for advanced metallurgical equipments, which will benefit the Company's metallurgical equipment business.
As one of the enterprises under the central government which early started corporate transformation, the Company has been actively developing non-metallurgical engineering market at home and abroad. During the 12th Five-Year Plan period, factors such as the steadily rising urbanization rate in China increases as well as demand for construction of welfare housing projects and environmental friendly green projects will create much room for the Company's non-metallurgical engineering business to grow. In addition, with the development of the infrastructure construction market and the environmental friendly construction sector at home and abroad, the Company, as a national innovation enterprise and leveraging on the strength of industrial chain integrating science, technology and construction, is to embrace new development opportunity.
2) New Businesses start to reap
While consolidating and developing its traditional principal businesses, the Company proactively presses ahead its transformation initiative. In particular, with respect to the resources development segment which is one of the key transformation businesses, against the backdrop that the domestic demand for major metal resources such as copper, iron ore, lead, zinc and nickel keeps rising in recent year, the Company focused on development of rare metal mineral resources and overseas resources, and thus secured abundant rare resources. As such, this business will see more and more economic benefits as time elapses.
Property development, another important business undergoing transition, suffered some extent as the government tightens the commodity housing policy. However, as a leading player in the field of development and construction of subsidized housing capable of survey, design and construction, the Company stands to benefit from the boom of subsidized housing development encouraged by the government.
2012 will be a critical year for the Company's move to change economic development mode and accomplish transformation and upgrading. The Company will conduct comprehensive analysis of the current situation and existing problems, optimize resources allocation, innovate management mode, improve sophistication level, prevent different kinds of risks, build and develop the characteristics and competitiveness of the Company's principal operations so as to achieve the transformation and scientific development and make the Company stronger and more outstanding.
The company will:
1. Expand further into the market of engineering contracting, push the Company to shift from a player in the metallurgical engineering industry to a services provider of integrated solutions while vigorously tap the overseas metallurgical market so as to cement the Company's leading position in the metallurgical engineering market;
2. Enhance the Company's independent research and development capabilities to transform from an equipment manufacturer to a core equipment manufacturer and production online service providers;
3. Leverage our advantages in green, energy-saving and environment-protection technology to shift from a comprehensive property developer to a distinguished property developer at the forefront of the green buildings and environmental ecology;
4. Speed up the development of strategic new industries related to our principal business activities to create a new pillar industry as soon as possible;
5. Expedite the construction of the resources projects on hand for early commencement of production and to ensure early payback.
Lastly, develop the Company into a first-rate conglomerate with international competitiveness.
Contact:
Wonderful Sky Financial Group Company Limited
Linda Wong / Echo Hu / Snow Yang / Jessie Bok
Dir: +852 3970 2153 / 3970 2185 / 3970 2137 / 3970 2136
Fax: +852 2598 1588
Email: lindawong@wsfg.hk / echohu@wsfg.hk / snowyang@wsfg.hk / jessiebok@wsfg.hk
Topic: Earnings
Source: Metallurgical Corporation of China Ltd.
Sectors: Daily Finance
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From the Asia Corporate News Network
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