Guan Cha Zhe Wang·2025-12-09 10:37Core Viewpoint - China Metallurgical Group Corporation (China MCC) is selling its real estate assets, including 100% equity of MCC Real Estate and other subsidiaries, for a total of 60.676 billion yuan to related parties, aiming to optimize its business structure and focus on core competencies [1][2]. Group 1: Asset Sale Details - The asset sale is structured into two main parts: MCC is selling 100% equity of MCC Real Estate and corresponding debts to WISCO Real Estate Holdings for 31.236 billion yuan [1]. - Additionally, MCC is selling 100% equity of several subsidiaries, including the Nonferrous Institute and MCC Copper Zinc, to China Minmetals for 29.439 billion yuan [1]. Group 2: Performance and Challenges - MCC Real Estate has shown signs of fatigue, with a projected loss of 4.85 billion yuan in 2024 and a loss of 1.777 billion yuan in the first half of 2025, alongside a negative gross margin of -10.91% [2]. - The decline in performance is attributed to high land acquisition costs and a downturn in the real estate market [2]. Group 3: Strategic Implications - The asset sale aligns with the central government's push for state-owned enterprises to focus on their main responsibilities and optimize resource allocation [3]. - Post-transaction, China MCC will concentrate on engineering contracting and emerging industries, enhancing operational stability and risk management [3]. Group 4: Future Outlook - The integration of assets is expected to improve operational efficiency and create a more competitive ecosystem within the China Minmetals group [3][4]. - The real estate business will focus on core urban areas, light asset operations, and explore new models combining industry and real estate, such as logistics and integrated urban complexes [4].