SMM: Guocheng Mining issued a performance forecast on the evening of July 6, with an estimated net profit of 43 million yuan to 55 million yuan in the first two quarters of 2020, down 72.23% and 64.48% from the same period last year. It is estimated that the basic earnings per share in the first two quarters of 2020 is about 0.04 to about 0.05 yuan.

The main reasons for the decline in the company's half-year performance in 2020 compared with the same period last year are as follows:

1. During the reporting period, the production and sales of the company's main products decreased compared with the same period last year. The new crown epidemic broke out in January 2020, and governments all over the country issued new crown epidemic prevention and control measures to prevent and control the new crown epidemic. Affected by the new crown epidemic, the time for the company to resume work after the Spring Festival was delayed from February 1, 2020 to March 10, 2020, coupled with a shortage of workers after work, resulting in a 39.84% drop in lead and zinc ore mining during the reporting period compared with the same period last year. Production of lead concentrate, zinc concentrate and copper concentrate decreased by 25.90%, 22.23% and 33.94%, respectively, and sales of zinc concentrate and copper concentrate decreased by 33.81% and 25.19% respectively.

2. During the reporting period, the average sales unit price of the company's main products decreased compared with the same period last year. During the reporting period, the prices of lead and zinc in the non-ferrous metals industry decreased greatly compared with the same period last year. According to Shanghai Nonferrous Network, the average spot price of SMM1# lead ingots fell by 1785.92 yuan / ton in the first half of 2020 compared with the same period last year, a drop of 11.08%. The average spot price of SMM zinc ingots dropped by 3766.92 yuan / ton compared with the same period last year, a drop of 18.39%.

Under the influence of the market, the average sales price of the company's main products lead concentrate in the reporting period was 9543.62 yuan / metal ton, down 2932.62 yuan / metal ton, or 23.51%, compared with the average sales price of 12476.24 yuan / metal ton in the same period last year. The average sales price of zinc concentrate in the reporting period was 10302.15 yuan / metal ton, down 1475.39 yuan / metal ton, or 12.53%, compared with the average sales price of 11777.54 yuan / metal ton in the same period last year. In the face of the complex and changeable economic environment and the impact of the new crown epidemic situation, the company, on the basis of epidemic prevention and control, actively respond to the market situation, strengthen cost management, tap potential and increase efficiency, and strive to reduce the adverse impact of the market environment on the company's performance.

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