On January 4, China Minmetals Corporation (hereinafter referred to as "China Minmetals") successfully held its 2020 annual working conference in Beijing. Tang Fuping, China Minmetals' Chairman and Party Group Secretary made a speech and summarized the meeting. Guo Wenqing, China Minmetals' President and Deputy Party Group Secretary made a work report.

This meeting, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, is an important conference held at the crucial moment when the Party and the country secure a decisive victory in building a moderately prosperous society in all respects, and when China Minmetals strives for the goal of “quadrupling in three steps”, aiming to summarize the work in 2019 and deploy key tasks in 2020 by fully implementing the guiding principles of the 19th CPC National Congress , the 2nd, 3rd, and 4th Plenary Sessions of the Central Committee, and the deployment of the Central Economic Work Conference. Tang Fuping, China Minmetals' Chairman and Party Group Secretary, pointed out, "In 2019, we thoroughly implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the guiding principles of the 19th CPC National Congress, enhanced the "Four Consciousnesses", strengthened the "Four Confidences", ensured “Two upholds” and adopted a series of effective measures to fully implement the deployment requirements of the CPC Central Committee, the State Council and the SASAC, forming a stable, healthy, and upward development trend for the company. "

Guo Wenqing summarized the work of 2019 in the report in which he pointed out that China Minmetals, facing the complex and multi-deformation trend at home and abroad and following closely a series of important instructions from General Secretary Xi Jinping and the major decision-making arrangements of the CPC Central Committee and the State Council, promoted the in-depth development of high quality to achieve operating income exceeding RMB 600 billion for the first time, total profit increased by 13.3% year on year, create the best operating performance since the strategic reorganization, and successfully completed the annual budget target and the SASAC assessment task, focusing on the strategic goal of “quadrupling in three steps” and making due contributions for the stability of the national economy growth.

In 2019, China Minmetals' operating quality and asset quality were continuously improved. Guo Wenqing emphasized in the work report that in 2019, China Minmetals' business revenue achieved stable growth. After breaking through the RMB 500 billion mark in 2018, it exceeded RMB 600 billion mark again in 2019 with an increase of 13.4% year on year. The average growth rate was 11.3%; the total profit increased by 13.3% year on year, and the average growth rate in the past four years was 58.3%; the net profit increased by 28.9% year on year, and the average growth rate in the four years was 147.6%. At the same time when the efficiency index reached a new high, the company's operating indicators also continued to improve with the total asset turnover rate and current asset turnover rate increased year on year and the asset-liability ratio improved significantly for a year-on-year decline. The company's production and operation have steadily increased for four consecutive years, the development quality has continued to improve, and stable and sustainable development has been achieved.

Guo Wenqing pointed out that in 2019, China Minmetals has highlighted its core business with its “four beams and eight columns” business system further improved:

Sustained Prosperity in Resource Development Operations

In terms of the three world-class mines, the Peru ’s Bangbas copper mine had stable production throughout the year; the Dugal River zinc mine in Australia produced zinc concentrates with a year-on-year increase in zinc, and the MCC Ramu nickel-cobalt mine kept the high and stable production. Iron ore concentrates produced by Minmetals Mining and Luzhong Mining increased by 3% year on year. The output of tungsten concentrates of mining enterprises managed by China Tungsten High-tech increased by 17.5% year on year with the unit complete cost decreased year on year. In addition, China Minmetals also established a joint venture with Rio Tinto to jointly conduct resource exploration. At present, China Minmetals' main metal resources involves 4.1 billion tons of iron, 30.41 million tons of copper, 12.48 million tons of zinc, 1.2 million tons of nickel, 1.54 million tons of tungsten, 140,000 tons of antimony, 250,000 tons of bismuth, and 230,000 tons of rare earth.

Strong Growth in Metallurgical Engineering

The newly-signed contract value of the subordinate MCC Group reached a record high, and the system solution service capabilities of green, intelligent, full-process and full-industry chains were further improved, with almost all domestic key metallurgical engineering projects contracted. The world's first hydrogen metallurgical demonstration project production line jointly created with HBIS Group has led the global steel technology revolution and green development. The independent research and development design and implementation of Baowu’s Shaogang intelligent integrated control centre is an important milestone, marking the iron and steel enterprise Intelligentization advances to systemic intelligence of the whole plant. The basic construction focuses on key areas and mid-to-high-end projects with newly signed contracts in Beijing-Tianjin-Hebei, Xiong'an New District, Guangdong-Hong Kong-Macao Greater Bay Area accounting for 50% of the total contracts as well as a number of brand influence projects including the National Ice and Snow Sports Training Base and Lanzhou Olympic Sports Center successfully landed while the emerging industries have accelerated development and expanded their advantages with the underground corridors leading the industry and the energy-saving and environmental protection business growing rapidly, for example, the comprehensive waste treatment project in the Xiong'an New District has adopted the first fully hidden design in China. The company won 2 China Zhan Tianyou Civil Engineering Award, 10 China Luban Construction Engineering Award, and 27 National Gold Prize for High-quality Project throughout the year.

Transformed Development in Trade Logistics

In 2019, China Minmetals focused on key commodities, important customers and major projects with the annual merchandise trade volume exceeding 80 million tons, a year-on-year increase of 10.2%.

Outstanding Performance in Financial Real Estate

In 2019, China Minmetals further optimized the layout of diversified businesses, steadily improved the quality of diversified businesses, and maintained a reasonable and healthy development of various businesses such as finance and real estate. The comprehensive strength of Minmetals Capital leapt to the forefront of the central enterprise financial holding company, and the real estate business was firmly implemented the principle of "housing is for living in, not for speculation", continuously innovating models and improving quality, and the outstanding performance of the two major businesses, have made significant contributions to calming fluctuations in the mining cycle.

Continuous Development in New Energy Sector

In 2019, China Minmetals established the Central Research Institute of New Energy Materials, which successfully set up a hierarchical research and development system; the output of cathode ternary materials doubled, and the power ternary materials dominated the domestic market; at the same time, we formed complementary advantages with other central enterprises and localities to acquire world-class graphite resources and build a closed-cycle industrial ecosystem of positive and negative electrode materials.

Good Harvest in Technological Innovation

In 2019, China Minmetals undertook more than 40 national, provincial and ministerial scientific research projects, won 11th China Patent Awards, and accumulated more than 30,000 valid patents.

Guo Wenqing pointed out in the report that the scale of China Minmetals' 100-billion-yuan market synergy will expand to more than RMB 160 billion with the scope of cooperation expanding, and the level of collaboration increasing in 2019. He emphasized: Taking complementary reorganization as the big logic, the integration of the two Fortune 500 companies has embodied the unique advantages to the most fundamental and effective value starting point of the RMB 100 billion internal market, implemented on system unification, management docking, industrial integration, and cultural integration, and solidified into the governance system of state-owned capital investment companies with Minmetals characteristics, contributing Minmetals experience to the reorganization of state-owned assets.

In addition, in 2019, China Minmetals has strengthened its pilot reform of state-owned capital investment companies and continuously improved its management mechanism, as shown in the following: the pilot reform work plan (upgraded version) of investment companies was successfully issued in consistence with the important requirements of the CPC Central Committee and the State Council to deepen the reform of state-owned enterprises, from the redesign to the redeployment; various pilot projects at the grassroots level have been rolled out, involving the comprehensive reform of the “Double Hundred Action”, the reform of mixed ownership, and then the innovation reform of science and technology enterprises; The four major systems of planning, budgeting, assessment, and remuneration have been connected in an orderly manner with the contract management implemented in depth, and the scientific authority of the contract system further established, from functional departments to directly managed enterprises to investment projects. Tang Fuping claimed at the meeting that the value recognition of the contractual spirit has been further strengthened at China Minmetals, and the ideological, institutional, and practical foundation of the new management mechanism of state-owned enterprises has been initially formed.

In 2019, China Minmetals thoroughly implemented the general requirements for Party building in the new era to conscientiously implement the responsibility system and continuously improved the quality for Party building. The "four of in-positions" theme education has been carried out steadily with remarkable results; it has been integrated and well-rounded for inspection and rectification; the Party work in a strict and comprehensive manner has been continuously promoted and developed in depth.

2019 was the fourth year of the "complementary reorganization" of China Minmetals and MCC Group when the effect of coordinated development after the reorganization and integration has emerged, and the company has created tangible new performance and changes, demonstrating a new image to the satisfaction of all sectors of society and all cadres and workers. As Guo Wenqing emphasized in his work report, this successful practice stems from following the important instructions of General Secretary Xi Jinping step by step without any missing, from the high recognition and firm goal of "quadrupling in three steps", from deep grasp and steady integration of "complementary reorganization", and from vigorous promotion and responsibility of "No delay or slackness in a day".

Tang Fuping further summed up at the meeting and pointed out that in recent years, China Minmetals has shown a steady, healthy and upward development trend, and formed a series of valuable experiences: The first is to unswervingly adhere to the political position and resolutely achieve "Two upholds"; The second is to unswervingly adhere to the road of high-quality development; the third is to unswervingly adhere to the strategic direction of the main business; and the fourth is to unswervingly adhere to market-oriented reforms.

The China Minmetals' 2020 overall business development guiding ideology was also put forward, that is, guided by the spirit of the 19th CPC National Congress , the 2nd, 3rd, and 4th Plenary Sessions of the Central Committee and following the decision-making arrangements of the CPC Central Committee and the State Council, the company will advance steadily with the firm implementation of new development concepts and high-quality development, the enhanced competitiveness and strengthened Party building, striving for the strategic goal of "quadrupling in three steps" to speed up the construction of a "world-class" metal and mineral enterprise group.

Regarding the work in 2020, Tang Fuping emphasized to further enhance the awareness of the mission as a SOE, resolutely carry forward the historical role of maintaining and increasing the value of state-owned assets, continuously improve the quality and competitiveness of enterprise development as well as the efficiency of operating and managing state-owned assets. Tang Fuping proposed that 2020 will become the year when China Minmetals' "competitiveness improvement" action is fully effective. We shall adhere to practical thinking and push the action from the headquarters to all levels by targeting objectives and implementing responsibilities, for the effect of the action reflected in the steady increase in economic benefits, the steady improvement in operating efficiency, and the steady improvement in asset returns.

In 2020, China Minmetals will continue to improve the “Minmetals Model” of the reform of state-owned capital investment companies, and will focus on “headquarters responsible for managing capital” to accelerate the reform of the authorized operating system; take “cultivating independent market players” as the basis to strengthen the vitality of the micro subject; take "contractual management" as the starting point to improve the market-oriented operating mechanism.

At the meeting, Guo Wenqing deployed the specific work for 2020. He pointed out that 2020 is the year when the end of "quadrupling in three steps". It is necessary to work hard and go all out to complete the third step goal. He put forward the key tasks that China Minmetals should focus on in 2020, namely: seeking stability and achieving high quality and high standards to complete the various indicators; optimizing the industrial layout and highlighting the main responsibility for the development of the industry; focusing on large-scale projects and fully tapping core market potential; accelerating the technological innovation for the development momentum; further promoting system reform to effectively stimulate internal activities; highlighting the comprehensive risk management to effectively prevent and resolve various risks.

At the meeting, the industry market of the main business was analyzed. According to analysis, in the metal and mineral industry, due to increased external risk shocks, slower growth at the demand side, limited growth at the supply side, and rigid rise in production costs, the pressure on the development of the industry has increased with the staged adjustments and the narrow market price fluctuations, so strengthening cost control will become the top priority for enterprises to build core competitiveness. In the new energy materials industry, the unbalanced development of supply and demand has also pushed the market into a period of deep adjustment. The acceleration of the industry's development has shifted from policy-driven to technology-led. Therefore, controlling key upstream resources, owning independent core technologies and an efficient R & D system will become the key to the future innovative development opportunities. In the metallurgical construction industry, global steel demand continues to grow at a low rate while the market is huge. Regional growth points in emerging countries along the“Belt and Road”and structural opportunities in the domestic steel industry will be released as well as the digital and intelligent expansion of steel companies will be accelerated.