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Hangzhou Iron and Steel shares dived to the limit in the afternoon to return to the previous increase.
May 6,2020 15:30CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM5 June 6: this afternoon Hangzhou Iron and Steel shares fell sharply in intraday trading once fell by the limit. By the end of the day, it was down 6.94% at 7.37. As a pre-data center popularity stocks, Hangzhou Iron and Steel shares rose nearly 8% in the last trading day before the festival, giving up their previous gains today.

A few days ago, Hangzhou Iron and Steel (600126) released the first quarter of 2020 report. According to the report, the company's revenue in the first quarter was 5.91 billion yuan, and the net profit attributable to the shareholders of the listed company was 142 million yuan. But the net profit attributable to shareholders of listed companies fell sharply, year-on-year-67.33%.

The operating income, operating profit, total profit, income tax and net profit of Hangzhou Iron and Steel Company decreased compared with the same period last year, mainly due to the reduction of domestic steel demand in the first quarter of the year, the contradiction between supply and oversupply in the iron and steel industry, and the decline in steel prices. The price of raw combustion materials such as iron ore was higher than that of the same period last year, and the gross profit of Ningbo Iron and Steel sales, a subsidiary, fell from the same period last year.

However, in July 2019, Hangzhou Iron and Steel acquired a 100% stake in Hangzhou Iron and Steel Cloud Computing data Center Co., Ltd., a controlling shareholder of Hangzhou Iron and Steel Group Co., Ltd., to build and operate the Hangzhou Iron and Steel Cloud Computing data Center Project. Hangzhou Iron and Steel shares said that in order to achieve medium-and long-term strategic development goals and maintain the company's long-term and healthy development, the company intends to make full use of the resource advantages of the company and its shareholders in addition to the existing iron and steel business and environmental protection business, set foot in the digital economy industry, invest in the construction of the (IDC) project of the Internet data center, and cultivate new profit growth points.

For the unexpected diving investors have different opinions, some people say the limit was due to a price increase of 5.61 yuan, lower than expected; others said it had something to do with Ali's refusal to sign the contract. The details are to be disclosed in the company announcement.

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