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Lingyuan Iron and Steel: the performance in the first half of 2020 is expected to decrease by 228 million yuan compared with the same period last year.
Jul 10,2020 14:00CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

SMM7 March 10: a few days ago, Lingyuan Iron and Steel Co., Ltd. issued a notice that according to preliminary estimates by the financial department, the net profit attributed to shareholders of listed companies in January 2020 is expected to decrease by 228 million yuan compared with the same period last year, or about 60.05% less than the same period last year.

The main reason for the pre-reduction of the current performance: the main reason for the sharp decline in the company's performance in the first half of 2020 is the impact of the main business.

In the first half of the year, we will minimize the impact of the epidemic on output, strive to overcome the unfavorable factors of rising raw fuel prices such as imported and local mines, and reduce consumption and costs through fine and full-caliber standards. However, as the decline in steel prices was greater than the decrease in sales costs, steel prices fell 6.84 percent year on year, 4.10 percentage points higher than the cost of sales; steel production and sales decreased by 4.38 percent and 6.63 percent respectively, resulting in a decline in economic benefits.

According to official data, Lingyuan Iron and Steel Group Co., Ltd. (Lingyuan Iron and Steel Group Co., Ltd.), founded in 1966, is a large state-owned enterprise group with iron and steel as its main business and also engaged in new materials, new energy, mineral resources, finance and real estate. Under the jurisdiction of Linggang shares (listed companies) and 5 participating companies, entrusted with the management of Chaoyang Longshan Asset Management Company. The company has total assets of 27 billion yuan, annual steel production capacity of 6 million tons, 11500 on-duty employees, per capita steel output of 6 million tons.

Note: the above forecast data are only preliminary accounting data. The specific and accurate financial data are subject to the company's official disclosure of the 2020 semi-annual report. Please pay attention to the investment risk.

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