In the first year of Baowu reorganization, WISCO focused on the external market, made transformation development, and handed over a pretty semi-annual report: in the first half of this year, a profit of RMB 580 million yuan was realized, exceeding the target schedule by RMB 330 million yuan, and fulfilling the annual profit ahead of schedule.
This year, WISCO set up the development target of building new city, new industry service operation company, established several level 1 profit centers, implemented horse racing mechanism, and various reform measures keep deepening. The main board seized the opportunities and created more profit, the new city service industry is imposing, the new board seized the new motion of growth inspiration. Thanks to the joint efforts of all the staff, the trend of corporate operation is turning better, the operation revenue, gross profit and EVA registered remarkable y-o-y improvement over last year.
Since this year, the important business sectors represented by Echeng Steel Company, and Resources Group, deepened the reform, seized the opportunity, adjusted the structure, cut down the cost, tapped the potential through benchmarking, the performance is very outstanding. In the meantime, the new city service sector presented a favorable trend, the business of the 4 newly established level 1 profit centers rolled out comprehensively. Among which, the green urban construction completed the transfer of relevant assets, the net assets increased from RMB 781 million yuan up to RMB 2.616 billion yuan, the business advantages are prominent, and the comprehensive competitiveness is enhanced; Yangtze River Water Service implemented “Industrial development+ assets operation”, introduced technology and strategic investors, accelerated the extension of industry chain, and formed operation pattern of supply and drainage integration; Nanshan Health and Pension consolidated the resources like Hansteel Hospital, developed community intelligent old-age care, and accelerated the exchange and cooperation with the local governments, financial institutions and international excellent enterprises; the real estate center made comprehensive land clearance, developed Hansteel land block in cooperation with Zhaoshang Shekou, and promoted cross-legal person and cross-hierarchy project-based operation with WISCO Tsinghua Unigroup Intelligent Information Park as the focus.
The overall deepening of reform and sufficient exertion of Baowu synergistic effect also provide powerful support for WISCO to realize the annual profit target ahead of schedule: go all out to promote the first stage “Governance & compression” work, reducing 25 legal person accounts to propel the light-weight development of industries; optimize the human resources, improve labor efficiency, the growth speed of per capita profit and per capita operating revenue both exceeding 8%, the period expense registers overall decrease, the effect of slimming and body building is remarkable; adhere to the concept of “cash is king”, actively improve the operational efficiency, and enhance the cash creating capability of operation, realizing RMB 674 million of net cash flow from operating activities, and fulfilling the annual control target ahead of schedule, the control of “two cash” achieves remarkable effect.
According to the statistics, the first batch of Baowu industry synergistic demand 17 key classification promotion project created a accumulative profit of RMB 33.71 million in the first half of this year. The traditional advantageous industry strengthens benchmarking and potential tapping, giving full play to Baowu synergistic effect, the operating revenue of Echeng Steel Company, Resources Group, Jiangbei Company also registered substantial y-o-y growth over last year.
Under the support of Baowu Group, WISCO’s RMB 3 billion green city investment fund has been approved, which will bring more fund support to the industry development. In the second half of this year, on the basis of continuing to perfect the market-oriented mechanism and systems, establishing the customer-centered service system and enhancing the market competitiveness comprehensively, WISCO will accelerate the progress of joint investment projects in emerging industries and the development rhythm of key land parcel, stepping out a symbolic pace towards urban operation enterprise.
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