OREANDA-NEWS. April 21, 2014. Chairman Guo Wenqing of MCC Limited participated the MCC’s Communication Conferences on Operational Performance of 2013 respectively convened in Beijing and Hong Kong a couple of days ago. Led by Guo, the delegation of MCC also paid visits to the major domestic and overseas investment institutions, and released a report of a success to the domestic and overseas capital market on the elimination of deficits and increase of profits achieved by MCC.

In 2013, MCC realized net profit belonging to parent company with an amount of RMB 3 billion yuan, making up deficits and increasing surpluses by RMB 9.9 billion yuan, ranking top among the central enterprises in terms of the growth rate of profit. As the barometer of financial performance, the stock price of MCC witnessed a warming trend, and realized a big bounce-back from the bottom of the recent period at a rate of 10% for A-share and 20% for H-share. In view of the perfect performance of MCC in the fields of real economy and capital market, which was realized after Guo Wenqing took up the reins of MCC, the company has achieved a rebirth and led itself out of its doldrums.

On the other hand, the capital market also gives full recognition to the effective measures taken by the new management team of MCC for enhancement of operational performance and promotion of reform, and the investors are looking to the future of MCC with full confidence.
These sample data, however, symbolize the holding-up of MCC people against difficulties and heavy pressure, the recreation through the strategic transformation and the reshaping of the corporate image.

- Undertaking in-depth reform for self-rescue against difficulties and heavy pressure
One year ago, MCC released the financial performance of 2012, which suffered a huge loss. At that time, MCC got deeply stuck in the low ebb with heavy burden and downturn in benefits, and faced great difficulties for enterprise development. In the face of unprecedented difficulties and tough situation, the new management team of MCC, which was headed by Guo Wenqing, led all the employees to launch a great campaign on deepening reform in strong enterprising spirit and without any delay, with the aims to conquer difficulties and realize self-rescue. The reform was carried out in two ways: (i) creating effective conditions for resolving of the major historical burden; and (ii) redoubling efforts on enhancement of qualification and management by means of a series of sweeping reform measures. Thanks to the continuous endeavors made in nearly two years, the shackles restricting enterprise development have been basically tackled, and thus MCC Group has achieved a remarkable improvement on economic benefit.

No cross, no crown. The gorgeous turn of MCC’s financial performance has attracted keen attention and knocked the socks off the investors on domestic and overseas capital markets. China International Capital Corporation limited (CICC), one of the major domestic and overseas institutions, launched a research report on MCC’s operational performance on March 31, 2014. In this report, CICC made analysis and gave recognition to the performance of MCC in 2013, deeming that the performance was in compliance with the previous expectation and the asset quality had been enhanced. A Stock Analyst of Wing Fung Financial Group Limited in Hong Kong released an article on H-share of MCC and gave a positive evaluation.

- Focusing upon core business and reinventing overall core advantages for rebirth

Learning from the previous lessons on mindless development, MCC put forward a vision of “Focusing upon core businesses in building a better MCC”. Under the guidance of such a vision, MCC made a repositioning on the core businesses, and started to concentrate on the businesses which MCC was most competent for. In addition, MCC worked out a clearer development path and recreated the overall core advantages in the four core businesses such as engineering contracting, real estate development, resources exploitation and equipment manufacturing. Such a positioning of the business sectors enabled the investors to get a clear understanding on the strength and advantage of MCC. As a matter of fact, MCC realized a good start in line with the vision of “Focusing upon core businesses in building a better MCC” in 2013, the various businesses have steadily stepped onto a healthy and stable development track along with the traditional business, and the company is witnessing a promising momentum. In January and February of 2014, the value of the newly sighed contracts was increased by 83.9% than that in the same period of last year.

- Reshaping corporate image on capital market

In 2012, MCC encountered with a tough situation, for instance, the confidence on capital market was dented, negative news popped out constantly, and the prices of A-share and H-share hit new lows. To cope with the keen attention extended by the investors towards the problems left over by history and the future development thought of MCC, the company conducted objective and straight-out communication with the investors. During the Press Conference on Operational Performance of 2013 in Hong Kong, Chairman Guo Wenqing led delegations to visit quite a few overseas investment organizations such as China Life Insurance (Overseas), COVEC Finance, BOC International, JPMorgan Asset Management, CIFM Asset Management (Hong Kong) and CITIC Asset Management. They conducted one-to-one full communication with these investment organizations. In this way, the investors acquired better understanding and more confidence on the company, and the new look of MCC was recognized again by the capital market.

At the Communication Conferences on Operational Performance of 2013, Chairman Guo Wenqing emphasized that, the year of 2014 would be a key year for laying consolidated foundation of the company in line with the vision of “Focusing upon core businesses in building a better MCC”. Taking the opportunity of turning losses into gains, MCC will march forward to the brand new stage of reform and innovation, take steady step, make persistent efforts and seize opportunities to achieve much better results and a promising future for the capital market and the investors.