Pioneer continues, four beams and eight columns write a new chapter of infrastructure

1 Metallurgical giant pioneer succession, four beams and eight pillars comprehensive development

1.1 Metallurgical engineering national team with a long history and rich deposits

The company is one of the world's largest engineering construction integrated enterprises, is the largest domestic market share, the longest operating history, the strongest professional design of metallurgical engineering contractors, in China's metallurgical industry construction field has a leading position.

Since the 1940s, the company has participated in the planning, design and construction of almost all large-scale iron and steel conglomerates in China, such as Angang, Bensteel, Wuhan Iron and Steel, Baotou Iron and Steel, Panzhihua Iron and Steel, Masteel, Baosteel, Tiigang, Shagang, etc., and is a leader in the construction of China's metallurgical industry.

The company pays attention to the expansion of overseas projects, has opened up the metallurgical engineering contracting market in dozens of countries, and completed a large number of projects with important influence and good economic benefits.

The company has 12 class-A research and design institutes, 15 large-scale construction enterprises, 5 comprehensive Class-A design qualifications and 42 special grade construction general contracting qualifications, 27 national science and technology research and development platforms, a total of more than 40,000 patents, won 82 China patent awards.

The company takes advantage of its metallurgical engineering whole industry chain system and strives to build a national metallurgical construction and operation service team.

The development of the company can be roughly divided into three stages:

In the first stage (2008-2012), the company's development slowed down due to multiple factors: After the company went public, it tried to diversify its business at the request of the group, and the cost increased due to business expansion; Coincided with the deep adjustment of the economy after the financial crisis, the domestic steel overcapacity, the serious contraction of the market, multiple factors led to a sharp decline in the company's performance in 2011, and a large loss in 2012.

The second stage (2013-2015) integrates the advantages of the industrial chain and focuses on the main industry of metallurgy: In the face of the dilemma of losses, the company actively shrinks its business lines, focuses on the main business of metallurgical engineering, appropriately extends the industrial chain outward relying on the advantages of the traditional main business, identifies the first batch of scientific and technological innovation of the company in 8 major parts and 19 business areas in the metallurgical field according to the process, integrates the whole industrial chain resources such as research and development, consulting, design, equipment, construction and operation, and creates the overall framework of the metallurgical sector.

In the third stage (2016-present), improve the level of green intelligence and build core competitive advantages: in the face of the trend of green and intelligent upgrading of the global steel industry, the company has twice focused on the main industry of metallurgy, emphasized technological innovation, improved the integration advantage of the whole industrial chain, and advanced to the high-tech and high-quality construction and emerging industries.

As of the first quarter of 2023, the actual control of the company is the State-owned Assets Supervision and Administration Commission of the State Council, and the controlling shareholder is MCC Group, which holds 49.18% of the company's shares. The company's business covers metallurgical construction, housing construction infrastructure, real estate development, equipment manufacturing, resource development and other fields.

With metallurgy as the core, the company actively expands into non-metallurgical fields and other fields, promotes the optimization and adjustment of the "four beams and eight pillars" industrial system, and forms four business segments of metallurgical construction, engineering contracting, emerging industries, and comprehensive real estate as "four beams". The business layout of "Eight Pillars" is metallurgical engineering and operation service, mine engineering and operation service, core equipment and steel structure, housing construction and urban renewal, transportation municipal and other engineering, ecological environmental protection and cultural tourism engineering, new energy and mineral resources development, green health and smart real estate.

1.2 Project contracting supports incremental revenue, and the resource development business is profitable

Revenue and profit grew steadily, and the "14th Five-Year Plan" reached a new high. In 2022, the company's operating income is 592.669 billion yuan, YOY+18.4%, and the CAGR from 2016 to 2022 is as high as +18.0%. Since 2017, the revenue growth has accelerated, maintaining a high growth rate of more than 17.0% every year; In 2022, the net profit of the company returned to the mother was 10.272 billion yuan, YOY+22.7%, and the CAGR from 2016 to 2022 was +11.40%. Affected by the delayed construction of the epidemic, the growth rate of the net profit returned to the mother in 2020-2021 declined from 19.1% to 6.5%, and the high growth rate returned in 2022. In the first quarter of 2023, the growth trend of 22 years continued, achieving operating income of 144.453 billion yuan, YOY+22.4%, and net profit of 3.37 billion yuan, YOY+25.8%.