On February 23rd, MCC Group General Manager and Party Committee Deputy Secretary Guo Wenqing met China High-Tech Group Co., Ltd. (‘China High-Tech’) Chairman and Party Secretary Zhang Jie. They conducted deep communication concerning enhancing cooperation in such fields as lithium resource development, battery material production, new energy automobile manufacture, urban public traffic transportation new energy services, real estate and finance. They witnessed the Group company sign a strategic cooperation agreement with China High-Tech. MCC Group Vice General Manager and Party Group Member Li Fuli and China High-Tech Vice President Li Xiaohong signed the agreement on behalf of their respective parties.
Guo Wenqing welcomed Zhang Jie and his delegation, introduced the development situation of China Minmetals and the MCC Group and emphasized the significance of their strategic recombination, pointing out that the successful strategic recombination between China Minmetals and the MCC Group, which are both listed among Fortune Global 500 companies, conforms to their respective strategic development directions, not only improving their total strength but also integrating the whole industry chain from the obtaining of mines to exploration, design, construction, mining, beneficiation, smelting, logistics and trade, and achieving the complementary advantages of the industry chain. The new China Minmetals has been approved in the 2nd batch of state-owned capital investment companies by the State Council. It is devoted to becoming ‘China's No. 1 and world's first-class’ metal mineral enterprise group, and the guarantor of national metal mineral resource security. At present, the new China Minmetals has reached total assets of RMB 1.55 trillion and management financial assets of RMB 800 billion. Its financial business has the full range of licenses, solving the capital bottleneck problem in the development of China Minmetals with great development potential. In regard to the real estate business, the original China Minmetals and MCC have been affirmed by SASAC as central enterprises with real estate orientation. Minmetals Land and MCC Real Estate hold a high reputation in the real estate industry.
Guo Wenqing pointed out that during the strategic recombination process of China Minmetals and the MCC Group, they ensured the good and stable development of the enterprises, and realized the constant integration of operation management and enterprise culture. The new China Minmetals is rooted in top-level design, actively promotes the institutional reform of the Headquarters, and forms a new management model and concept. In regard to culture, they also mutually communicate and act. On the future development plan, the new China Minmetals has put forward the goal of ‘achieving a double performance in three steps’, devoted itself to building an RMB 100 billion internal market, strengthened its internal business coordination, and focused on the connection of the metal mineral industry chain in order to reduce trade links and costs, promote efficiency and decrease risks. Both in business coordination and long-term operation and development, the original China Minmetals and the MCC Group have achieved a good pattern of complementary advantages and mutual support.
Guo Wenqing emphasized that one of the new China Minmetals' tasks is to secure national metal mineral resources. Such rare domestic resources as copper, nickel, lead, zinc, and chromium iron are the main resources and businesses we focus on, including the China Minmetals Salt Lake Yiliping Project. This project has obtained close attention from all previous leaders of the Qinghai Provincial Government. For China Minmetals, lithium resource development and battery material production are sunrise industries. We expect to deeply and broadly cooperate with China High-Tech in fields including lithium and the new energy industry, gradually forming a multi-dimensional overall industry chain cooperation. Both sides are expected to accelerate communication, determine cooperation methods and details, and achieve mutual development, benefits and win-win results. He also pointed out that, with industry dilemma in the main businesses, diversified businesses are great support for the current earned profits of enterprises, so he hopes to strengthen exchange and cooperation with China Hi-Tech on finance and real estate businesses.
Zhang Jie thanked Guo Wenqing for his warm welcome and introduced the establishment background, historical evolution and business development situation of China High-Tech. He pointed out that China High-Tech is the only central enterprise with textile equipment orientation in China. Since its foundation in 1998, through its integration with several enterprises at home and abroad, it has rapidly increased in scale and strength, constantly expanded its business scope and become a large enterprise with stable assets of RMB 70 billion and profit assets of about RMB 2.5 billion. At present, the company has formed the three main businesses of textile machinery, commercial vehicles and textiles and trade, covering such business units as textile machinery, textile trade, new fiber material, commercial vehicles, engineering machinery, financial investment, asset management and culture. Its textile machine business is No. 1 in domestic comprehensive strength with the world’s biggest business scope, the world’s most powerful complete capacity and strong industry influence and discourse power. Its new energy vehicle business has rapidly developed to become one of China's new energy vehicle enterprises with a broad range of products and qualifications. Its new material business has formed design advantages in production equipment, technology research & development and engineering. Its financial investment business has gradually developed into a comprehensive financial business sector covering trust, security investment, financial leasing and private equity funds. Its culture business has greatly promoted the development of complex projects integrating ecology, humanity and tourism, which has realized transformation from traditional property to the culture industry. At present, China High-Tech has gradually formed a development pattern of ‘one body and two wings’, namely ‘high-end manufacturing, financial innovation and culture services’.
Zhang Jie pointed out that the products made by China High-Tech include logistics vehicles, buses, airport buses, trucks, SUVs, family cars and so on. With regard to commercial vehicle sales and market share, China High-Tech ranks No. 1 among all central enterprises. However, it has so far lacked the lithium battery business, so it expects to conduct strategic cooperation with China Minmetals to realize complementation and win-win results in the industry chain.
Zhang Jie said that China High-Tech is willing to accelerate communication with CMC, promote the implementation of relevant work and explore cooperation with China Minmetals in such fields as finance, property and so on through cooperation. He also presented specific suggestions for how to enhance the financial business communication and cooperation of both sides.
During the meeting, both sides discussed such topics of common interest as the China Minmetals Salt Lake lithium extraction technology plan.
After the talks, Guo Wenqing and Zhang Jie witnessed the Group Company sign a strategic cooperation agreement with China High-Tech. Li Fuli and Li Xiaohong signed the agreement on behalf of their respective parties.
The activity was attended by China High-Tech Strategic Management Department General Manager Wang Xiaohu, Financial Department General Manager Zhu Changfeng, Financial Investment Division General Manager Gao Lei, Beijing High-Tech New Energy Vice General Manager Hu Shaofeng, China High-Tech Heavy Industry Operation Management Department Deputy Director Li Guihao, MCC Vice President Wang Shilei, Group Company Strategic Development Department Director Xue Fei, Capital Operations Center Director Xiong Xiaobing, Non-ferrous Metal Holdings General Manager and Party Committee Deputy Secretary Huang Guoping, China Minmetals Salt Lake Chairman and General Manager Zhan Wei, Vice President Zhu Hongtu, Director Wang Kejun, et al.
Guo Wenqing holds close talks with Zhang Jie
Guo Wenqing and Zhang Jie
The participating leaders