Metallurgical Corporation of China Limited has announced its first quarter results for the 3 months ended March 31st 2011. In 2010, MCC witnessed stable and sound development in business and operations. For the first quarter of 2011, such stable momentum was well maintained in all directions.
The year ended December 31st 2010 saw a steady growth in revenue from operations and such growth was sustained in the first quarter of 2011. In 2010, revenue from operations amounted to CNY 206,800 million, representing a year on year increase of 24.7% while revenue from operations for the first quarter of 2011 amounted to CNY 43,010 million, representing a YoY increase of 17.3%;
In 2010, gross profit and gross profit margin increased consecutively and stabilized in the first quarter of 2011. In 2010, gross profit amounted to CNY 26,940 million, representing a YoY increase of 33% while gross profit margin posted 13%. In the first quarter of 2011, gross profit amounted to CNY 5,330 million, representing a YoY increase of 6.1% while the overall gross profit margin reached 12.4%.
In 2010, net profit increased consecutively and a modest growth was recorded in the first quarter of 2011. In 2010, net profit of the Parent amounted to CNY 5,320 million, representing a YoY increase of 20.2% while net profit of the Parent for the first quarter of 2011 amounted to CNY 1,200 million, representing a YoY increase of 3.45%.
In the first quarter of 2011, MCC remained committed to business transformation across all segments.
As efforts in transformation deepened, the company reduced its over reliance on the iron and steel metallurgy market: revenue from non metallurgical engineering and construction business has already accounted for 52% of the revenue from the engineering and construction business. The revenue from the overall non metallurgical operations (including equipment manufacturing, resources development and property development) accounted for 64% of the total revenue.
A year on year increase in new and outstanding engineering and construction contracts: in the first quarter, new engineering and construction contracts amounted to CNY 59,380 million, representing a YoY increase of 18.6%, of which new overseas contracts amounted to CNY 6,890 million, representing a YoY increase of 174.6%. Meanwhile, outstanding contracts amounted to CNY 233,850 million, representing a YoY increase of 15.3%, of which outstanding overseas contracts amounted to CNY 43,350 million.
An increase in revenue from equipment manufacturing with expected release of production capacity, in the first quarter, revenue from equipment manufacturing business increased by 57.4% YoY to CNY 3,620 million, while further release of production capacity thereof is expected.
Significant increase in the efficiency of resources development of polysilicon and steady development in overseas mines; the production volume of polysilicon for the first quarter reached 1,667 tonnes, with gross profit margin of 54.9%, representing an increase of 13.4 percentage points as compared with the end of 2010. An annual production capacity of 10,000 tonnes is expected to be realized in 2011, driving the production volume upward to over 8,000 tonnes. In addition to an annual production capacity of 10,000 tons, the company is planning for an additional production capacity of 20,000 tonnes per year. The company has made solid progress in all overseas mines each year.
Vigorous development of social welfare housing in terms of property development: the total planned GFA of all existing social welfare housing projects of the Company reached 30,540,000 square meters, of which projects for which land use rights had been obtained accounted for 13,236,000 square meters, representing an increase of 1,656,000 square meters as compared with the end of 2010; while projects for which agreements had been signed but for which land use rights had not been obtained accounted for 13,273,000 square meters.
Meanwhile, the total GFA of entrusted construction projects (construction only) was 4,031,000 square meters. In active response to state policies, the Company also made steady progress in its existing commodity housing apart from stepping up efforts in social welfare housing development, thus achieving a total planned GFA up to 23,079,000 square meters for its existing projects.
Looking forward, MCC will strive to develop itself into the world's top class enterprise with international competitiveness. To this end, the Company will carry through the following tasks:
1. Continue to reinforce and enhance its leading position in the world's metallurgical engineering and construction contracting market
2. Enhance the proportion of revenue from metallurgical construction business in addition to consolidating and enhancing its leading role in the metallurgical engineering and construction market
3. Adjust the industry structure to increase the contribution of resources development, real estate development and other engineering and construction businesses to the operating results of the Company
4. Leverage its advantages to expand overseas markets, with a focus on tapping into overseas engineering and construction markets
5. MCC has core competency in technical innovation. It will continue to strengthen research and development of core technologies in respect of metallurgy, equipment and resources development whilst actively fostering product-orientation and industrialization in this respect
6. The company will also further increase the reputation of MCC brand