Xin Lang Cai Jing·2025-12-09 02:34Core Viewpoint - The recent capital movements of the state-owned enterprise "Wukuang System" are seen as either a proactive market response or a reaction to market pressures, highlighted by China Metallurgical Group's announcement of selling stakes in several subsidiaries to China Minmetals for a total transaction price of 60.68 billion yuan [1][8]. Group 1: Transaction Details - China Metallurgical Group plans to sell 100% equity of China Metallurgical Real Estate and related shareholder debts to Minmetals Real Estate for a total of 31.24 billion yuan [3][10]. - Additionally, it will sell 100% equity of four other companies and 67.02% equity of another company to China Minmetals for 29.44 billion yuan [3][10]. - The transaction aims to streamline operations by divesting non-core assets, allowing for better resource allocation and a clearer focus on core business areas [3][10]. Group 2: Financial Performance - In the first three quarters of the year, China Metallurgical Group reported revenue of 335.09 billion yuan, a year-on-year decline of 18.79%, with a net profit of 3.97 billion yuan, down 41.88% [4][11]. - China Minmetals Group's total assets exceeded 1.5 trillion yuan, with revenue of 566.03 billion yuan, down 8.39%, and a net profit of 3.57 billion yuan, down 51.17% [4][11]. - China Metallurgical Real Estate has reported a net loss of 2.07 billion yuan in the first three quarters, with projected losses of 4.53 billion yuan for the entire year [4][11]. Group 3: Market Challenges - Minmetals Real Estate faced a significant drop in revenue, with a 60.7% decline in the first half of the year, resulting in a net loss of 580 million HKD [6][13]. - The company aims to prioritize survival by focusing on inventory reduction and risk management, especially in a challenging real estate market [6][13]. - The broader real estate market remains under pressure, with leading companies like Poly Developments reporting significant declines in sales [6][13].