On the evening of December 8, Metallurgical Corporation Of China Ltd. (601618) issued an announcement regarding the sale of assets and related-party transactions.
According to the disclosure, the company plans to sell its 100% equity in MCC Real Estate and related creditor's rights to Minmetals Land Holdings. Additionally, it will transfer its 100% equity in Nonferrous Engineering Technology Research Institute, MCC Tongxin Zinc & Copper Co., Ltd., and Ramu Management, as well as 67.02% equity in MCC Jinji, to China Minmetals Corporation. Its subsidiary, China Huaye, intends to sell its 100% stake in Huaye Duda to China Minmetals or its designated entity. Based on valuation reports and friendly negotiations, the total transaction amounts to 60.676 billion yuan.
This transaction constitutes a related-party deal but does not qualify as a major asset restructuring. The proposal has been approved by the company's third board of directors at its 80th meeting and awaits shareholder approval. Final completion is subject to conditions specified in the Equity Transfer Agreement. Notably, asset valuation report filings and regulatory approvals for the transaction have already been completed.
Regarding the rationale, MCC stated this move aligns with state-owned enterprise reforms emphasizing core competencies and resource optimization. It represents a strategic step toward high-quality development during the "15th Five-Year Plan" period.
"By divesting non-core assets, we aim to streamline operations, sharpen competitive advantages, and enhance sustainable profitability. Moving forward, we'll focus on metallurgical engineering, nonferrous/mining projects, premium infrastructure, industrial construction, and emerging industries," the company emphasized.
Post-transaction, MCC's role as China Minmetals' flagship platform for engineering contracting and specialty sectors will be further clarified. The restructuring will improve resource allocation across human capital, financing, and management while strengthening operational stability and risk resilience. The company intends to leverage its core strengths in engineering, innovation, and project management to deepen synergies within Minmetals' ecosystem.
Proceeds will primarily support MCC's "One Core, Two Pillars, Five Specialties" business framework: strengthening metallurgical construction (core), consolidating new industrialization/urbanization (pillars), and developing engineering services, advanced materials, high-end equipment, energy/environmental solutions, and digital applications (specialties). Funds will be allocated based on project progress and subsidiary capital needs.
As per financial reports, MCC is a construction giant specializing in metallurgical projects, serving as the world's largest metallurgical contractor and operator under China Minmetals' majority ownership.
For Q1-Q3 2025, revenue fell 18.79% YoY to 335.094 billion yuan, with net profit attributable to shareholders dropping 41.88% to 3.97 billion yuan. The decline reflects sluggish steel demand, stagnant construction growth, and property sector adjustments, compounded by internal restructuring. Reduced contract backlog and slower revenue conversion contributed to the profit contraction.
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