|By ACN Newswire||
|December 18, 2013 08:59 PM EST||
CMEC Leads the Industry as the New Five-year Plan Opening up a New Period of High-speed Development
As the first large international engineering and trading enterprise in China, China Machinery Engineering Corporation ("CMEC", Stock code: 01829.HK) is engaged in engineering contracting as its core business and the synergetic development of trading, R&D and the auxiliary international services. At present, the international contracting and trading business of the Company has extended to five continents in the world, more than 150 countries and regions involving power, transportation, telecommunication, construction, etc. Drawing upon the rich experience accumulated for over 35 years in its development and the strong advantages in its businesses, CMEC has established a distinguished brand image in the overseas market.
As a pioneer of the Chinese international engineering contractors, CMEC has always been in the lead with its competitive edge in the international engineering contracting industry. Upon its proposal of the new five-year plan, the Company will hone its core competitive edge in the new era of development by actively facilitating the transformation of the enterprise and attaching importance to innovation of its businesses. It will facilitate the growth in the comprehensive strength of the enterprise by laying out the business structure with international engineering contracting, trading and investment as its three major segments while synergistically developing many other businesses.
Achieve breakthroughs by optimizing the industrial chain on basis of the international engineering contracting industry
Recently, the international engineering contracting industry has been developing in a comprehensive way combining multi-dimensional services. Based on its leading EPC (engineering procurement and construction) business model, CMEC has precisely captured the market trends and took the lead in optimizing the industrial structure, attempting to develop in a diverse and synergistic way and reasonably extending its industrial chain, so as to meet the upgrading market demand and tackle the bottleneck in business growth. Looking forward, the Company will focus on the enhancement of its competence in areas including designs at the preliminary stage of works and project management. In the meantime, it will also integrate the project financing services gradually, so as to facilitate the creation of a differential advantage for its industrial chain and achieve a quantum leap from an operational improvement in product to industry upgrade.
In addition, through the implementation of the "localization" business strategy, the Company will also set foot in overseas markets to establish its regional business base. It will also make the best of local resources to facilitate the project while making differential adjustments to regional business strategies by taking into account demands and opportunities in different markets, so as to derive the best way for growth.
Diversify business development with a rational layout to stimulate strong growth
Apart from maintaining an outstanding international project contracting business, the Company will boost the development of the trading business in the future. Through accelerating business integration, advancing business development of high value-added "hit products" and strengthening synergies between "hit products" and engineering contracting business, the interdependent growth across different business segments will increase significantly. In addition, given the complex and volatile international economic background at present, the Company will achieve the optimisation and professional operation of its trading business by launching trading projects with low risks and high gross profits, so as to generate steady profits for the Company while supporting the development of international engineering projects.
Innovative investment business, as another important segment of the Company's future business development, will commence a trial run in the existing business key areas and industries of the Company. Through active exploration of the market environment, the Company will seek an investment model which is in line with its own business characteristics. In the meantime, the Company will also accelerate the rapid growth of its investment business by obtaining quality resources from external sources. Besides focusing on overseas markets, the Company will also adopt the strategy of developing both the domestic and foreign markets simultaneously in the future. As China undergoes a new round of urbanization, the Company will leverage the resource advantage brought about by its custody of China National Complete Engineering Corporation (CCEC) and China National Electric Engineering Co., Ltd. (CNEEC) to actively explore relevant domestic markets. Furthermore, the Company will also pay attention to the environmental protection industry, which has currently exhibited a rapid growth in market demand and grasp market opportunities to boost its domestic business while effectively balancing the risks of overseas business.
Leveraging its extensive experience in international engineering contracting and a rational and clear development path, CMEC will fully tap into market opportunities arising from the global economic recovery and another round of urbanization at home. It will facilitate the business development of its trading and innovative investment businesses, mainly based on its solid strength in international project contracting, and hone its core competitiveness in the new market environment. Through a balanced business layout in overseas and domestic markets, it aims to achieve another leap forward in its development.
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