Hong Kong–listed Metallurgical Corporation of China (MCC, 01618) disclosed a sharp earnings contraction for 2025 as weaker market conditions and restructuring costs weighed on results.
Revenue and Profitability • Operating revenue fell 17.51% year-on-year to RMB 455.38 billion as project activity slowed. • Total profit declined 45.87% to RMB 5.01 billion; net profit dropped 68.09% to RMB 2.52 billion. • Net profit attributable to shareholders contracted 80.41% to RMB 1.32 billion; basic EPS slid to RMB 0.002 from RMB 0.24. • Gross margin on engineering contracting edged up to 9.54% (2024: 9.21%) but was offset by lower volumes and higher impairment charges: credit-related losses reached RMB 8.21 billion and asset write-downs RMB 19.44 billion.
Balance-Sheet Movements • Total assets increased 3.90% to RMB 839.49 billion, driven by higher cash balances (up 47.96% to RMB 77.76 billion). • Shareholders’ equity rose 0.67% to RMB 183.56 billion. • Short-term borrowings fell 34.64% to RMB 22.13 billion, while long-term borrowings inched up 2.82% to RMB 41.45 billion. • Contract assets grew 21.25% to RMB 189.50 billion; inventories dropped 79.25% following disposal of real-estate assets.
Operational Metrics • Value of newly-signed contracts slipped 10.87% to RMB 1.11 trillion; overseas orders surpassed RMB 100.70 billion, up 6%. • Engineering contracting remained the main revenue contributor at 88.43% of group turnover, yet segment sales declined 19.32%. • Featured businesses—engineering services, new materials, high-end equipment, energy & environmental protection—delivered 2.65% growth to RMB 32.74 billion, lifting their revenue share to 7.19%.
Strategic Actions • To sharpen focus on core operations, MCC disposed of its entire stakes in MCC Real Estate and several mineral resource subsidiaries, recognising the related businesses as discontinued operations (net loss: RMB 5.19 billion). • The board approved A- and H-share buybacks of up to RMB 2.50 billion; by 29 December 2025 the company had repurchased 50.28 million A shares and 19.64 million H shares for about RMB 193 million. • No final dividend for 2025 is proposed due to negative retained earnings at the parent-company level; the board seeks authorisation to consider an interim dividend in 2026 if conditions permit.
Outlook and Targets For 2026, MCC aims to secure more than RMB 1.00 trillion in new contracts and generate revenue above RMB 400 billion, while continuing to streamline its portfolio around “One Core, Two Main Bodies and Five Features” and executing the “Five-Five” strategy to boost high-margin segments and overseas expansion.
Audit Status Ernst & Young Hua Ming LLP has issued an unqualified opinion on the 2025 financial statements.
The full annual report will be available on the HKEX and company websites by 24 April 2026.
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