Metallurgical construction leading, mineral resources development potential

The new measures encourage green and low-carbon development of the industry and innovation in process technology. The new method allows the implementation of equal replacement in six categories (that is, the maximum replacement ratio can reach 1:1) : (1) the enterprise internally exits the construction of converter electric furnace and exits the steelmaking capacity of the supporting sintering, coke oven, blast furnace and other equipment projects. (2) The withdrawal and construction of smelting equipment are electric furnaces. (3) Do not change the type of smelting equipment, capacity (volume), the number of technical renovation projects within the plant. (4) Withdraw from supporting sintering, coke ovens, blast furnaces and other equipment to build hydrogen metallurgy and Corex, Finex, HIsmelt and other non-blast furnace ironmaking projects. (5) The steelmaking capacity of stainless steel produced by rotary kiln-ore furnace -AOD furnace process. (6) Iron and steel smelting projects in Qinghai and Tibet. The company has rich metallurgical technology accumulation and focuses on core process research and development. The electric arc furnace steelmaking technology developed by CCID, a subsidiary of the company, can reduce the power consumption of scrap steel smelting to 250kWh/t, and all indicators have reached the world advanced level. Compared with the traditional long process process, carbon emissions can be reduced by 65%, and carbon emissions can be reduced by 11% compared with conventional electric arc furnace. MCC Jingcheng, a subsidiary of the company, has rich basic research experience in the field of hydrogen metallurgy, and is currently implementing a major project of "Research and industrial demonstration of key process technologies for hydrogen rich low-carbon smelting in blast furnaces", which is expected to promote the traditional process to reduce carbon by 10% and achieve large-scale carbon reduction in steel.

The newly signed revenue of metallurgical engineering maintained growth, and the status of the metallurgical construction national team was stable. Benefiting from the continuous release of demand for steel capacity replacement and intelligent and low-carbon transformation, the company's metallurgical engineering orders and revenue maintained rapid growth. In the past five years, the compound growth rate of the company's newly signed metallurgical construction contracts was 19.5%, and the compound growth rate of operating income was 21.9%. In 2022, the company's metallurgical engineering business completed the newly signed contract amount of 192 billion yuan, an increase of 21.7%, and achieved operating income of 129.6 billion yuan, an increase of 12.5%.

Equipment manufacturing and steel structure opened up the upstream and downstream of metallurgical construction, and equipment manufacturing business grew steadily. The company has a number of core equipment manufacturing bases, products covering sintering pellets, iron and steel making, continuous casting and rolling of steel and other metallurgical process key equipment, widely used in international and domestic large-scale steel engineering projects. At the same time, the company is one of the largest steel structure manufacturing enterprises in China, with 32 steel structure manufacturing bases, the design capacity of 1.65 million tons, the capacity scale of the industry leading. In 2022, the company's equipment manufacturing business achieved operating income of 12.32 billion yuan, an increase of 6.0%, and gross profit of 1.43 billion yuan, a decrease of 18.8%.

The moderate extension of "MCC characteristics" creates a moat in the non-steel field

Non-steel engineering new contracts and revenue growth. The company actively expands its business in the field of non-steel engineering. In 2022, the company's new contract value of non-steel engineering will reach 1,087.1 billion yuan, accounting for 86% of the new contract value of the project, and the operating income will reach 420.8 billion yuan, accounting for 74% of the project revenue. The company's non-steel engineering fields mainly include housing construction, transportation infrastructure projects and others. In the past three years, the compound growth rate of newly signed contracts for housing construction/infrastructure was 21.7%/17.3%, and the compound growth rate of operating income was 16.1%/25.0%.

"MCC Gene" injected into emerging industries, differentiated competition to create a characteristic engineering brand. Based on its own metallurgical construction advantages, the company has deeply cultivated a number of subdivided engineering fields and established a number of professional technical research institutes. In terms of business, based on the advantages of metallurgical wastewater treatment technology, it has entered the field of ecological and environmental protection engineering, based on the comprehensive design capability of the park, it has entered the field of theme park construction, and undertaken a series of major projects such as the ecological and environment-oriented development project (EOD) of the Huangshi section of the Yangtze River, the Beijing Universal Studios project, and the Shanghai Disneyland project, successfully creating differentiated competitive advantages.