On September 5, MCC Group held a 2020 market expansion video conference in Beijing to further unify thoughts, build consensus, arise the fighting will, and form a joint force, so that with the strengthened market concept and development goal, we can expand the market with the combatant spirit, seize opportunities to focus more prominently and to prevent and control risks more firmly. Guo Wenqing, General Manager and Deputy Secretary of Party Committee of China Minmetals and Chairman of MCC Group, gave important instructions to the conference. Zhang Mengxing, President of China MCC and Party Committee Deputy Secretary of MCC Group, attended the conference and delivered speeches. Zhu Guangxia, member of the Standing Committee of the Party Committee of MCC and China MCC, MCC Vice President, presided over the conference and announced the market expansion progress from January to August this year.
With the approaching 8th anniversary of the "September 5" meeting in 2012 held by MCC Group, which was regarded as the historic turning point for the group, this conference was held following the three market expansion conferences in October 2013 and was considered as a themed conference, which implemented the spirits delivered through the important speech of Guo Wenqing in the mid-2020 work conference and has the milestone significance for market development. The main task of the conference was to analyze the current market expansion progress of MCC, especially the deficiencies in market development, further study and assess the situation, seize opportunities, and ensure that the annual order exceeded RMB 1 trillion.
Guo Wenqing made important instructions in the conference. He pointed out that the market was the fundamental and prerequisite for the company's survival and development. Over the years, we have always firmly held the key to market expansion, adhered to the principle of "casting nets where there are fish, and herding sheep where there is grass". The marketing strategy of "big environment, big platform, big customer, big project" that had been implemented comprehensively had helped the group to achieve substantial growth in the market expansion and a steady improvement in quality, which not only solves the problem of MCC's survival and development, but also lays a solid foundation for its better and higher-quality growth. In the first half of this year, in the battle against the Covid-19, MCC rose to the challenge and grew against the trend. Its main operating indicators all hit record highs. In particular, significant results were achieved in market expansion, with the value of newly signed contracts reaching RMB 465.3 billion. A year-on-year increase of 22% has made a productive contribution to the steady growth of the group.
Guo Wenqing demanded that in the face of the new situation, new challenges and new opportunities, we must adhere to the goal-oriented approach, aim at the goal of trillions of contract value, march forward with determination and confidence, take advantage of the situation and seize opportunities. We must adhere to "centering on core main business, core regions, core customers, and core projects", strengthen the market expansion leadership construction, which required "leaders to take the lead in grasping the market trend, organizing elite teams to burst into the market". People who can bear hardship and dare to fight can pursue excellence and climb the peak bravely. We must give full play to the system merit constantly, strengthen coordination and efficiency, improve the market expansion system, and enhance the overall combat effectiveness. We must persist in a steady pace and strictly controlling risks. At the beginning of a new round of full development, the new development pattern with the domestic market as the focus and domestic and international markets promoting each other is being reshaped, and a large number of high-quality projects will be ushered in. However, we will never accept high-risk projects, unpredictable projects, hidden danger projects, and projects that we're incompetent to undertake because we would rather give up one project than make a blunder. We must adhere to the whole process of marketing, improve the quality of marketing operation and enhance brand influence continuously. We must do a good job in forward-looking design and layout, focus on more carefully designed, organized, and forward-looking projects. New opportunities can be produced in the crisis while a new phase can be created in the changing reality. We should strive to initiate a new round of high-quality leap-forward development of MCC.
Zhang Mengxing emphasized the importance, necessity and urgency of market expansion for MCC in his speech. He pointed out that the "September 5" meeting in 2012 was a day to be remembered forever in the history of MCC. At this meeting, Chairman Guo Wenqing delivered an important speech entitled With the Correct Strategy for Leading the Overall Situation and Innovative ideas for Solve Difficult Problems, We Shall Strive to Tackle Difficulties and Maintain A Steady Development after Survival, which marked MCC's return to its main business. The phase for MCC to get out of the red through reform and struggle to save itself will bring about the earth-shaking changes. Over the past eight years, under the leadership of Chairman Guo Wenqing, MCC has adhered to strategic guidance, grasped the overall situation of reform, and adapted to the general trend of development. With soaring enthusiasm, the group had, by all means, grasped the "leading role" of marketing. All people were united to climb the hurdles all the way, make breakthroughs in business, and refresh the historical record of operating performance every year. They wrote the most magnificent and glorious new chapter in the history of MCC. In the industry with fierce competitiveness in which MCC is situated, marketing is the foundation for development, and orders are food in hand. It will never be enough to emphasize the importance of marketing. The marketing work of MCC in the first half of the year can be described as "full of vim and vigor", which once again created a new record in the history of marketing. According to this, we put forward the challenge of realizing one-trillion-yuan orders this year. The group hopes that everyone will continue to maintain this kind of enthusiasm in the second half of the year and create a new history of market expansion for MCC continuously. Zhang Mengxing gave three opinions and put forward specific requirements based on the current external market situation and the actual marketing work of the group.
First, it is necessary to deepen a sense of urgency and work pressure, guided by the benign market expansion and growth. The market is the leader of production and operation, as well as the prerequisite and guarantee for the high-quality development of the company. Without quality orders, the quality development of the company cannot be guaranteed. It should be said that strengthening market expansion is the key to MCC’s high-quality development. At present, the Group has a good market development momentum but still has great pressure. It needs everyone to work harder, make more breakthroughs, and improve; new contracts accelerate growth but the quality needs to be improved. Even the complicated overseas business and the blocked marketing situation pose many difficulties for the group to build an international engineering company, it needs to adjust its business strategy in time in light of the current market situation.
Second, we must have a deep understanding of the current external market situation and its characteristics. At present, the Covid-19 prevention and control have become a regular practice and there is still the possibility of recurring, which will have a significant impact on the normal production and operation of enterprises. However, long-term economic stability in China has not changed. Following the national policy of “ensuring stability on six fronts”, investment “assembly calls” have been sounded in various regions, which bring about new opportunities to the "new infrastructure, new urbanization initiatives and major projects" construction. With a series of major strategies such as promoting the Beijing-Tianjin-Hebei coordinated development, the integrated development of Yangtze River Delta region, the Guangdong-Hong Kong-Macau Greater Bay Area construction, the development of Yangtze River Economic Zone, the Western Development, the construction industry has ushered in a window period for "centralized implementation of favorable policies and infrastructure investment, and the centralized promotion of major projects". It is necessary to seize opportunities, accelerate development, take advantage of the situation and work hard. New opportunities can be produced in the crisis while a new phase can be created in the changing reality.
Third, we must seize the opportunity to promote a new round of high-quality market expansion. Currently, the construction industry is facing an overall market situation where "opportunities and challenges coexist, and opportunities outweigh challenges". Facing the new round of development opportunities, we should strengthen the awareness of grabbing orders under the premise of strictly controlling risks, increase the quality and number of new contracts so as to lead the transformation and upgrading of enterprises towards high-quality development. The first one is to focus on adapting to market changes and consolidating confidence to ensure that orders exceed RMB 1 trillion. We should yield a new order record under the guidance of marketing concept; it is necessary to focus on differentiated development, which means that the design and construction companies implement distinctive operations; it is necessary to focus on the domestic market while efforts should be made to gather resources in the overseas market and develop high-end projects; the second one is to highlight core businesses, strengthening the main business and expanding market share simultaneously. We should take the opportunity of building a "national champion team" for metallurgical construction and operation services around the world, which can firmly occupy the market advantage of metallurgical engineering; it is necessary to focus on super high-rise and large-scale complex projects, and to improve the high-end housing construction market; it is necessary to focus on highway and rail transit so as to expand the market share of the municipal transportation and engineering; the third one is to highlight the pioneering role of key leaders who can concentrate on key projects and speed up the project landing. Responsibilities lead us to focus on major projects, and form a mechanism to develop close contact with major strategic customers; the fourth one is to focus on key areas and concentrate resources to cultivate vital areas. We must do a good job in the regional market expansion in the five major urban agglomerations as well as local marketing; we must promote the entity operation of regional companies; the fifth one is to strictly control operation risks, and control projects at the source so as to improve contract quality. We should intensify the screening of project risks and adopt stricter standards to select high-quality projects; it is necessary to control the source of contracts, strictly control project risks, especially investment project risks, so as to deepen the high-end project's operation.
At the conference, China 2MCC Group Corporation Ltd., China 5MCC Group Corporation Ltd., and representative subsidy for WISDRI Engineering & Research Incorporation Ltd. (WISDRI) exchanged their experiences.
Qu Yang and Zeng Jianzhong, Party Standing Committee member of MCC and China MCC and Vice President of China MCC, Zhang Huiqing (MCC and China MCC Chief Economist), responsible persons from relevant subsidiaries and regional companies, responsible leaders in charge of marketing, department leaders and relevant personnel, relevant personnel from the Group's domestic market development department, overseas engineering and mining management department, engineering construction management department, strategy and investment management department, legal and contract management department, and Xiong'an commanding headquarter attended the conference.
Scene of the Conference