By: Zhang Tao, Zeng Shuyun
Wang Weimin, Li Bingren, Huang Danhua, Xu Kuangdi, Liu Benren, Wu Xichun, Cai Esheng and Shen Heting (from left to right) light up the symbol of MCC
Vice Director-General Huang Danhua of State-owned Assets Supervision and Administration Commission of the State Council (SASAC) delivers a speech
Chairman Liu Benren of MCC Limited proposes a toast
Vice Chairman & Party Secretary Wang Weimin gives an address during the event
President Shen Heting makes remarks at the ceremony
A grand celebration ceremony and an appreciation banquet were held on the 3rd Floor of the Great Hall of the People on October 19, 2009. Senior officials and distinguished guests present at the event included: Xu Kuangdi, Vice Chairman of the 10th National Committee of the Chinese People's Political Consultative Conference (CPPCC) & President of Chinese Academy of Engineering; Huang Danhua, Vice Director-General of State-owned Assets Supervision and Administration Commission of the State Council (SASAC); Cai Esheng, Vice-Chairman of China Banking Regulatory Commission; and Li Bingren, Chief Economist of the Ministry of Housing and Urban-Rural Development.
The A-share stock (601618) and H-share stock (01618) of MCC Limited were successfully listed at the Shanghai Securities Exchange and at the Stock Exchange of Hong Kong on September 21 and 24, 2009 respectively, enabling MCC Limited to be the first Chinese company to simultaneously complete IPOs both in the domestic and overseas markets within this year. The success of the public listings marks the further improvement and optimization of the corporate governance and capital structure of the company. It is certain to bring about broad prospects for the future development of MCC Limited.
As one of the largest engineering contractors in the world, China Metallurgical Group Corporation is a metallurgical engineering contractor with the longest operational history and the strongest capability in terms of metallurgic design and construction projects in China, enabling it to take the lead in China s metallurgical industry. After years of development, MCC, with its outstanding capabilities in metallurgical works, has stood out in its four core businesses, namely engineering contracting, resource development, equipment manufacturing and real estate development. MCC Group began its market exploration in overseas regions in the early 1980s. Now, it has established partnerships with a number of countries all over the world. With all of its achievements, MCC has built itself into a super-large conglomerate with cross-industry, cross-regional and multinational businesses, and a renowned international reputation.
At present, MCC Group ranks 380th in the 2008 World s Fortune 500 companies in terms of revenue, consisting of over 70 wholly-owned subsidiaries and holding subsidiaries engaged in various fields such as real estate, resource development, geological prospecting, design, construction and manufacturing. The Group has now attained over 100 national patents and over 100 prizes for quality projects. Up to the present, MCC Group has built up over 100 steel rolling production lines. Such a remarkable achievement has drawn attention and interest from every corner of the world. In recent years, MCC Group has developed various resource industries, and at the same time, turned out to be a shining star in the real estate sector in China. On this basis, MCC Group has delivered good benefits to the people and has offered the best products and services to the modernization of the country and lifestyle of the Chinese people.
During the celebration ceremony, Vice Chairman & Party Secretary Wang Weimin gave a brief summary of the listing process of MCC Limited.
In the beginning of 2007, MCC started its restructuring work according to the modern corporate system with the goal to get listed on the stock market. During this process, however, it encountered many difficulties, especially with the global financial crisis. Thanks to the joint efforts taken by all the employees, MCC finally conquered all the difficulties and achieved their goal to be publicly listed as a whole. It has created small miracles in the capital markets in the following three aspects: (i) During the restructuring and listing process, MCC has smoothly resolved all of its past difficulties and problems. Various ministries of the central government have extended great support for this purpose, including the China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, Ministry of Land and Resources, Ministry of Environmental Protection, State Taxation Administration, Assets Trusteeship Administration and State Administration for Industry and Commerce. Pursuant to the restructuring and listing program consented by the State Council and approved by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), MCC Group has, for the first step, ascertained the border of assets, packed off the staff share and resolved welfare issues for three types of specialized employees. Afterwards, the Group completed the work in relation to the determination of fund-raising projects, application for deeds for properties and lands, assets auditing and assessment, environmental protection appraisal and inspection on real estate projects. After resolving such difficulties, the assets owned by the enterprise were clearly defined and the business operating system was further standardized. (ii) MCC Limited was successfully established and corporate governance was optimized. MCC Group and Baosteel Group jointly initiated and established MCC Limited on December 1, 2008. According to the requirements of domestic and overseas laws and regulations, MCC has made further improvement on various management systems for the General Meeting of Shareholders, Board of Directors and Board of Supervisors. In consideration of the actual situation of the enterprise, MCC has set up an internal administrative mechanism that is flexible for business growth, improved various internal systems and working regulations, and optimized its internal management process. (iii) MCC has successfully realized public listing as a whole in both the domestic and overseas capital markets. Upon approval by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), China Securities Regulatory Commission (CSRC), National Development and Reform Commission and National Council for Social Security Fund, MCC finally decided to adopt the method of the A-share Offering followed by the H-share Offering and the listing of the A-Share and H-Share in the Shanghai Stock Exchange and the Hong Kong Stock Exchange respectively. On August 26, 2009, MCC Limited commenced its initial public offering (IPO) of A-share as approved by the Issuance Examination Committee of CSRC. On August 27, 2009, the H-share Offering was approved by the CSRC and passed the hearing by the Hong Kong Stock Exchange. On August 31, 2009, the Prospectus for A-shares was published. On September 11, 2009, MCC Limited commenced its public offering in Hong Kong. Then, the A-share stock (601618) and H-share stock (01618) of MCC Limited were successfully listed at the Shanghai Securities Exchange and the Stock Exchange of Hong Kong respectively on September 21 and 24, 2009. Due to its unique competitive edge and excellent management team, MCC drew a lot of attention from domestic and foreign investors. The total subscription monies received from the A-share Offering totaled RMB 1.6 trillion, while the blocked funds on the net also exceeded RMB 1 trillion, setting the highest record of online subscription money. The H-share Offering of MCC Limited in Hong Kong was oversubscribed by more than 200 times, including oversubscription by more than 20 times by the institutional investors. The net proceeds from the offerings in Shanghai and Hong Kong amounted to RMB 35 billion, far beyond the predetermined target.
At the celebration ceremony, President Shen Heting, on behalf of the BOD, the Operations Team and all the employees of MCC Limited, expressed sincere gratitude to the officials, friends from all walks of life and all the investors for the continuous concern and support offered to MCC Limited. He also extended thanks to the intermediaries for their great contribution in the IPOs, as well as to the colleagues for their painstaking efforts during the listing process. Then, President Shen went on to describe the far-reaching significance of the public listing of MCC Limited.
Along with the rapid growth of China s economy, MCC has witnessed an enhancement of benchmarking capabilities through technical innovation and industrialization. Based upon its strength in metallurgical engineering, MCC has established itself into a super-large conglomerate with cross-industry, cross-regional and multinational businesses, principally engaged in four major areas of business, namely engineering and construction, resource development, equipment manufacturing and property development. The successful public listing of MCC Limited has brought about solid capital strength for the future development of the company, and pushed the company to brand new heights and development platform. In this view, it is of great and profound significance for MCC Limited to further standardize its management, improve its systems, promote its brand and enhance its competitive power. According to Shen Heting, MCC Limited will: (i) take the IPO as its basic starting point; (ii) seize the opportunities brought about by the steady and rapid economic growth in China, as well as the Global Presence Strategy encouraged by the State Government for Chinese enterprises; (iii) take responsibility proactively for preserving and increasing the value of state property; (iv) actively strive for continuous innovation; (v) place emphasis on scientific management and technical advancement; (vi) stick to the win-win concept for clients; (vii) further enhance its benchmarking capabilities and profitability; (viii) continue to maintain its leading position in the industry; (ix) establish MCC Limited into an internationally competitive world-class conglomerate; and (x) continuously create new value for the constructors and investors.
During the Appreciation Dinner, Chairman Liu Benren gave a short speech. He stated that the successful public listing of MCC Limited was another important milestone in the development history of the company. He invited all the other leadership team members of MCC Limited to raise their glasses and extended sincere thanks, on behalf of all the MCC employees, to the people of all walks of life for their great concern and support to the development of the corporation, and proposed a toast to a brilliant future for MCC Limited.
