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China Minmetals Hits New Records in Revenue and Profit in 2017

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It is learned from the annual work conference of China Minmetals that the corporation registered two new records in 2017, namely, a revenue of 500 billion yuan and a total profit of 13 billion yuan, more than fulfilling all the work evaluated by the State-owned Assets Supervision and Administration Commission. Tang Fuping, China Minmetals’ Chairman and Party Group Secretary said in the interview, “In 2017, the corporate construction has made headway across the board, with the operation quality steadily improved; remaining true to the founding mission, the corporation has delivered excellent results, which are attributable to the staff of China Minmetals who made dedicated and diligent efforts to advance quality progress under the guidance of Xi Jinping’s thoughts on socialism with Chinese characteristics in the new era and the essence of the 19th National Congress of the CPC.”

The year 2017 was a crucial year for China Minmetals to open the new chapter of development after restructuring. Last year, China Minmetals strived against sorts of pressure. For 2017, all statistics shows China Minmetals seized market opportunities and notably uplifted its operation; the cost was lowered by 2.6 percentage points than the same period of the previous year; the cost of finished products and the accounts receivable increased at a lower rate than the revenue; the net inflow of operating cash exceeded 30 billion yuan for three consecutive years; the asset-liability ratio decreased by two percentage points and the current assets turnover rate increased by 0.04 year on year; with regards to the cost, the iron concentrate complete cost decreased by 31% from 2014 to 2017; the tungsten concentrate complete cost decreased by 15% from 2014 to 2017; in terms of technological innovation, the number of new patents reached 3,709, making China Minmetals the winner of the Golden Prize of Chinese Patent Technology for three years in a row, and the winner of one second prize of the State Technological Invention Award and three second prizes of the State Scientific and Technological Progress Award. Guo Wenqing, China Minmetals’ President and Party Group Deputy Secretary spoke at the conference that in 2017 China Minmetals achieved leapfrog development and embraced glories as it earned the well-deserved reputation as China’ most competent metallic material enterprise. Currently, the corporation maintains a steady growth momentum, and intensifies efforts to push ahead and foster new drivers of progress; China Minmetals boasts greater strengths, greater development momentum and broader growth space than ever before.

It is learned that throughout 2017 China Minmetals had bright spots in development and operation of resources, engineering construction, development of multiple businesses like finance and real estate, progress of major projects, tapping the markets worth hundreds of billions of yuan, and advancing reform.

China Minmetals delivers exceptional performance in resource development and operation. In 2017, the Las Bombas copper mine operated at full capacity throughout the year, producing quality copper concentrate that contained 454,000 tons of cooper. Australia's Dugald River zinc project was put into operation ahead of schedule, with the annual production of zinc concentrate expected to contain about 170,000 tons of zinc, which will make the mine one of top 10 zinc mines in the world. The actual capacity of the RAMU nickel mines in Papua New Guinea was 107.3% times the design capacity on average. The actual sales volume of the metallic material products of China Minmetals increased by 17.3% year on year and exceeded 100 million tons for the first time. Besides, China Minmetals ranked among the world’s top 10 in terms of the production and reserves of copper and zinc, and topped the world in the reserves of tungsten, antimony and bismuth.

China Minmetals leads the world in engineering construction. The MCC of which China Minmetals is a subsidiary saw the value of the newly signed contracts top 600 million yuan, and the contract value registered an increase of 100 billion yuan year on year for three consecutive years; among them the newly signed contracts on metallurgical engineering registered a value of 78.6 billion yuan, up 44% year on year. As for key projects, Formosa Ha Tinh Steel Plant, the largest investment project in Vietnam so far and the largest iron and steelmaking corporation in Southeast Asia, ignited the No.1 Blast Furnace, which signaled China equipped with world-leading technologies successfully exported the core technology and overall equipment of the blast furnace. Moreover, China Minmetals took the lead in completing the construction of the rolling unit of Malaysia-China Kuantan Industrial Park, living up to its role as a vanguard and vibrant force in pursuing the “Belt and Road” Initiative; it signed the contract on the 2022 Winter Olympics key project, namely, the construction of the National Sled and Snowmobile Center, one more world-class project.

China Minmetals maintains a sound momentum in developing the financial and real estate business. It got listed in Shanghai Stock Exchange, starting a new chapter as full license financial holding company. Despite the de-stocking pressure and the policies on purchase restriction and loan limitation, it achieved steady and efficient growth in real estate business through pursuing classified policies in different cities.

China Minmetals pushes ahead the key projects with substantive measures. The domestic business contracts registered a value of 121.5 billion yuan, with the value of the executed contracts reaching 97.5 billion yuan, which meant the corporation’s whole-chain competitiveness in the industry had been fully unleashed. Specifically, the three power projects at Salt Lake Yiliping have been pushed ahead as scheduled; the framework agreement on strategic cooperation regarding Caofeidian International Ore Trading Center has been smoothly signed, and the programs on the copper, lead and zinc bases have kicked off.

China Minmetals has achieved substantial progress in removing redundancy. The group company has cut down on the number of legal persons, smoothly and orderly separated and transferred the business on water/power/heat supply and property management, dealt with zombie companies and those in extremely difficult circumstances with determined efforts and thus achieved the goal of stopping the incurrence of losses.

The year 2018 is the first year to implement the guiding principles of the 19th National Congress of the CPC, the 40th anniversary of reform and opening-up, and a critical juncture to implement the 13th five-year planning. In the report to the 19th National Congress of the CPC, General Secretary Xi Jinping made it clear that China has entered the stage of quality development and emphasized that we should foster globally competitive enterprises. In response, Tang Fuping, on behalf of China Minmetals’ Party Group, proposed China Minmetals’ new development strategy at the work conference, specifying the vision of becoming a world-class metallic material conglomerate, the mission of ensuring the nation’s supply of metal resources and the goal of becoming the major force of resource supply, the national team of metallurgical construction and integrated service provider. He required that China Minmetals should transform its development mode, follow the demand for quality development to formulate the short-term, mid-term and long-term action plans, and make overall planning for its development in the next three, eight and 18 years.

At the conference Tang Fuping put forward 10 point for advancing reform of the state-owned enterprise and all-roundly reinforcing the Party’s leadership. First, it is to adjust the functions of the headquarters’ departments, and push forward the group’s reform in the control mode to tilt towards the capital management; second, it is to regulate the construction of the boards of directors of the subsidiaries, and improve the functions of the second-class companies’ headquarters; third, it is to advance the mixed ownership reform in a prudent way and research equity diversification reform of the subsidiaries; fourth, it is to build the professional manager system; fifth, it is to deepen the reform of the labor, personnel and distribution system; sixth, it is to speed up the adjustment and improvement of the existing industrial pattern; seventh, it is to foster strategic emerging industries, and promote the growth of new business via the new system and new mechanism; eighth, it is to research the ways to promote industrial cooperation, restructuring and integration of the centrally administered enterprises; ninth, it is to firmly advance the supply side structural reform and fulfill all designated missions; tenth, it is to integrate the adherence to the Party’s leadership and strengthening the Party construction into each aspect of the endeavor for comprehensively deepening reform. Tang Fuping pointed it out that in 2018 the centrally administered enterprises are expected to enhance Party building and China Minmetals should follow Xi Jinping’s thoughts on socialism with Chinese characteristics in the new era and the essence of the 19th National Congress of the CPC, and ensure that the Party exercises effective self-supervision and practices strict self-governance to persevere in Party building. He clearly required China Minmetals to clarify the reform tasks according to the 10 points, especially the objectives, deadlines and responsible departments; in the beginning of the year the agenda should be set, and at the yearend the results shall be subject to evaluation related to the annual work assessment.

At the conference, Guo Wenqing assigned the work for 2018, put forward the objective for China Minmetals to double its revenue through a three-phase endeavor and indicated it is time to do solid work for the second phase. He demanded that China Minmetals should do a good job in the six major aspects. First, it is to build the "four-pillar and eight-column" business system based on metallic minerals, metallurgical construction, trade circulation and financial real estate and clarify the top-level design and development planning for diverse business; second, it is to vigorously implement the innovation-driven strategy and stride towards the high end of the value chain; third, it is to upgrade the market development mode and embrace thriving business at home and abroad; fourth, it is to advance the endeavor of removing redundancies and thus lay a good foundation for fostering strengths and delivering more benefits; fifth, it is to attach importance to the key links and major contradictions and strengthen management and control; sixth, it is to follow the guiding principles of the 19th National Congress of the CPC to get a new look and make new accomplishments in the new era.

At the conference, China Minmetals, the largest metallic mineral conglomerate, made judgments on the development trend of the metallic mineral field in the new era. China Minmetals indicated as the global economy picks up, China embraces a broader space for economic development and the demand for metals keeps growing while the supply will be in shortage for a time to come, which means the metallic material business will embrace another round of steady growth. As for specific metals, China Minmetals held that the nonferrous metals development trend will be significantly better than that of black, copper, lead and zinc, nickel, aluminum and other bulk metals and the demand for such minor metals as lithium and cobalt intended for new energy and new material development will see further growth.

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