Di Yi Cai Jing·2025-12-08 14:57Core Viewpoint - China Metallurgical Group Corporation (China MCC) announced a significant transaction involving the sale of non-core assets totaling approximately 606.76 billion yuan to China Minmetals, aiming to focus on its core business areas and enhance operational efficiency [2][5]. Group 1: Transaction Details - China MCC plans to sell 100% equity and related debts of MCC Real Estate to Minmetals Real Estate, along with 100% equity of several subsidiaries and 67.02% equity of another subsidiary to China Minmetals [2][5]. - The total transaction value is assessed at 606.76 billion yuan, and it is classified as a related party transaction without constituting a major asset reorganization [5][8]. Group 2: Business Focus and Strategy - The transaction is part of China MCC's strategy to streamline operations by divesting non-core assets, allowing the company to concentrate on metallurgical engineering, non-ferrous and mining engineering, high-end infrastructure, and industrial construction [2][5]. - Post-transaction, China MCC aims to enhance its core competitiveness and sustainable profitability by optimizing its business structure [5][6]. Group 3: Financial Performance Context - In the first three quarters of the year, China MCC reported a revenue of 335 billion yuan, reflecting an 18.78% year-on-year decline, with a net profit of 3.97 billion yuan, down 41.88% compared to the previous year [3][4]. - The company has faced challenges in securing new contracts, with a reported 11.8% decrease in new contracts signed compared to the previous year [4]. Group 4: Market Expectations and Future Outlook - The integration of MCC Real Estate and Minmetals Real Estate was anticipated in the market, especially following Minmetals Real Estate's announcement of plans for privatization [9][10]. - Both real estate platforms have been experiencing financial losses, with Minmetals Real Estate reporting a revenue decline of 21.8% and a net loss of 3.75 billion yuan in the past year [10][11].