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Guaranteed by Various Edges Steady Growth of Results of China Machinery Engineering Corporation

Hong Kong, Mar 27, 2014 - (ACN Newswire) - March is coming with severe competitions among results of listed companies. In 2013, global economy displayed ups and downs and performance of listed companies reflected diversities. Although the global economy witnessed gradual recovery in 2013, the overall momentum remained weak. As major developed countries struggled in the downturn of economic growth, the emerging economies was impressive with its stable and fast economic growth. Along with policy adjustment of each country in emerging markets, the investment in infrastructure projects will be further expedited in the future, ushering in a new round of growing opportunities for international engineering contracting business.

Benefited from a clear market positioning, China Machinery Engineering Corporation ("CMEC", 01829.HK), a leading brand among international engineering contractors in the PRC, achieved steady growth of results in 2013. According to disclosure of annual results announcement, its revenue from operation amounted to RMB21,426 million and profit from operation was 2,328 million, representing an increase of 12.8% as compared with that of 2012. In addition, CMEC had a strong order pipeline for 2013, holding the backlog of USD8,216.9 million in the international project segment of the Group. With construction of projects beginning in succession, a plenty of revenue will enter into the Group in the future. Notable was the dividend of RMB0.19 per share to be distributed by CMEC as published in its announcement, which made its investment value more attractive. In addition to a steady and sound growth of business of the Group, it is expected to bring an investment boom.

In 2014, the market widely forecasted that the recovery of the European and the US economy as well the emerging markets that is slowly walking out of exchange rate crisis will become important driving force for the growth of world economy. Taking the advantage of the rebound of the global economy, the infrastructure market of developing countries will continuously maintain a high-speed growth, while the infrastructure market of developed countries gradually entered into the renewal stage, which will also provide a huge market space. The future development CMEC is promising with unique advantages of its own business and rich overseas market resources.

Remarkable business advantages, steady growth brings excellent results

As a Chinese brand taking the lead to enter into the international engineering contracting market under the State's strategy of "overseas expansion", CMEC has accumulated rich overseas operation experiences and market resources through years of development and successfully established the CEMC brand in overseas market with its unique business edges.

Benefited from early access into international engineering contracting market and possession of extensive market resources and experiences, CMEC has an overall and scientific planning in overseas market. The Group's businesses have spread over 150 countries and regions, particularly formed core business zones in a large scale in key markets of Asia and Africa. CMEC obtained dozens of new contracts in 2013, consolidated the traditional mature markets such as Equatorial Guinea, Sri Lanka, Nigeria and so forth, meanwhile firstly expanded into the these countries through the student apartment project in Canada, expressway project in Papua New Guinea, the heat supply project in Mongolia, university town project in Jordan, which further optimized the overall planning of the Group in global market.

Along with continuous upgrading of demands in the international engineering contracting market in recent years, CMEC has established a series of scientific and effective "one-stop" international engineering contracting service system through subtle capture of market demands and further strengthened its own comprehensive competitiveness while providing high quality diversified services for proprietors. It was noted that the Group focuses on international engineering contracting business with the advantage of power and energy business and simultaneously develops multi-services including consultation, financing , design, procurement, commissioning and so forth involved in the engineering processes, so as to continuously reinforce its own comprehensive strength via extension of industrial chain and organic integration.

By giving priority to overseas market over the years, CMEC is well versed in market environment of international engineering contracting industry. It established a sound and scientific risk control system to ensure a steady progress of overseas business of the Group and maintain its capital chain at a healthy and efficient level with the assistance of unique operation model of "light assets". Market participants noted that the Group's capital expenditure on overseas projects was low because of the operation model of "light assets", which made it flexibly satisfy the market demands to create an industry-leading profit margin.

Attach to pulse of market, structural transformation facilitates new development of business

As a new round driving power of market demands in the global infrastructure industry, with the opportunity of vigorously promoting strategic planning of "urbanization" by the State, CMEC stepped into an important five-year for its development. In 2013, entered the first year of "Five-year Development Strategy", the Group made certain adjustments on business and market to provide support for further improvement in the future.

As a global leading international engineering contractor, CMEC continuously regards international engineering contracting business as its core driving force and emphasizes on enhancement of competitive strength of such business, meanwhile developed international trade and financial services and gave full play to synergic effect of various segments to achieve a significant improvement of the Group's overall business. In terms of market planning, the Group will continue to optimize its overseas layout, focus on regions of Asia, Africa and Latin America with promising market and closely capture infrastructure demands from recovery of the European and the US economies. At the same time, the Group will also develop the domestic market, especially through power and energy business with core advantages to achieve a paid development of domestic market.

Relying on notable advantages of business and scientific strategic adjustment, CMEC's future is promising. Together with an apparent recovery of industrial environment and further expansion of the Group's market share, it is estimated that the Group's results and performance will be improved significantly.




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