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MCC Convenes the 35th Meeting of Second Board of Directors
 President Guo Wenqing Conveys Spirit of Principal Meeting of Central Enterprises and Local SASAC
CopyFrom: Date:05 February 2018
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  On January 18th, presided over by President Guo Wenqing, the MCC Group’s 35th meeting of the second board of directors was convened at the MCC Mansion. It was attended by all members of MCC’s board of directors, as well as the leaders of the board of supervisors, management-level leaders and relevant functional department heads as nonvoting delegates.

  Before the meeting, President Guo Wenqing conveyed the spirit of the principal meeting of central enterprises, the spirit of State Council Prime Minister Li Keqiang’s important written instructions and the spirits of the important speeches given by State Councilor Wang Yong, SASAC Party Committee Secretary Hao Peng and SASAC Director Xiao Yaqing, then clarified the train of thought and put forward requirements regarding the Company’s realization of high-quality development.

  I. Forging the first national team of metallurgical construction in the world and building the ‘Large Metallurgy’ development pattern of ‘Focusing on one business, supported by auxiliary businesses’

  In recent years, having gradually developed and grown from a steel mill design and construction business, the MCC Group has realized transformation by relying on its powerful technical strength in metallurgical construction, which is its natural gift, growth gene and most familiar and advantageous field. At present, the Company occupies shares of 90% of the domestic metallurgy market and 60% of the global metallurgy market. However, compared with international first-class enterprises, some shortcomings remain. In the face of the new requirements and new issues of steel and iron metallurgy in the new era, we shall establish the ‘Large Metallurgy’ concept, thoroughly research the topic of the national team of metallurgical construction being the best and restarting business again, rapidly organize professional strength, plan the work deployments, strengthen the main business of metallurgical construction, build the ‘Large Metallurgy’ development pattern of ‘Focusing on one business, supported by auxiliary businesses’, and make the brand of the ‘national team of metallurgical construction’ shine. It is necessary to research and thoroughly participate in the operation of steel and iron enterprises, particularly focusing on the energetic development of the ‘Belt and Road’ market, carry out cooperation with international top-level enterprises and set the export operation management of steel and iron enterprises as MCC’s main goal. It is necessary to forge core products, core equipment and core technologies, embody our design and construction capacity with first-class system integration capability, quicken technological transformation, truly realize the support of technologies by products, develop in countries along the Belt and Road route, and quickly strive to keep a foothold in the international market.

  II. Paying close attention to the enterprise’s sustainable development problem

  Since the 18th National Congress of CPC, General Secretary Xi Jinping has mentioned the ‘Cask Theory’ many times: if there is a short slab in a cask, it cannot be filled with water, but the cask cannot be used to carry water without the bottom plate, so it is necessary to be good at supplementing short slabs and pay close attention to reinforcing the bottom plate. ‘Reinforcing the bottom plate’ means risk prevention for an enterprise, specifically investment risk prevention and capital risk prevention. We shall pay close attention to the investment risks of PPP projects, do well in risk research, judgment and prevention in advance for the projects at hand, be strict with investment decision-making and project approval, and complete the investment risk prevention measures for new projects. It is necessary to conduct deep analyses of financial indexes, research cash flow constitution and volatility, continuously make great efforts to reduce receivables and inventories, validly promote asset quality and prevent financial risk.

  In addition, the country now proposes to carry out the classified and hierarchical reform of the mixed ownership of state-owned enterprises; as such, we should vigorously promote the reform of mixed ownership at the subsidiary level and among the regional companies, emancipate our minds, pursue innovative ideas, break through the barriers of interests and systems, mobilize social forces, activate the market and achieve enterprise development on the premise of upholding equal pay for equal shares.

  III. Improving the strategic guidance and leadership of the ‘key minorities’

  Leadership is very important. It is necessary to firmly grasp the ‘key minorities’ of leading cadres at all levels in all enterprises. The leading cadres must not relax their thinking or slow down, but must grow in practice and accelerate the improvement of their strategic guidance and leadership. The leading cadres should adhere to the problem-oriented principle and should be capable of not only seeing the true nature through the surface phenomena for the accurate detection of problems, but also conducting the in-depth analysis of the causes of problems, allowing them to rapidly and effectively provide solutions. It is necessary to strengthen the learning, broaden the horizons, receive enlightenment and stimulate inspiration through academic exchange, on-site investigations and other means.

  The board of directors also conducted research and discussion concerning the 2018 annual budget and other matters. They fully acknowledged the Company’s overall work in 2017 and put forward the following requirements for the work of 2018: first, it is necessary to continuously reinforce the work of clearing up ‘Two Funds’ debt, firmly grasp the current advantageous economic situation, adopt classified quantitative management, supervise and promote dynamic tracking, intensify duty fulfillment, establish an assessment accountability system and carry out many other measures to reduce the ‘Two Funds’, promote the quality of assets and guarantee the enterprise’s sound development; second, it is necessary to further reduce the financing costs and interest-bearing liability level through low-cost financing channels; and third, it is necessary to strengthen investment management and control, reinforce real estate development business management and control, promote the project management level of the real estate development business, pay close attention to the investment risks of PPP projects, be strict with project examination and approval, and prevent investment risks.

  

  President Guo Wenqing conveys the spirit of the principal meeting of central enterprises and local SASAC

  

  Meeting venue


MCC

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