The company's first-half revenue was 129.77 billion yuan, down 7.88 percent year-on-year, and its net profit was 4 billion yuan, down 36.87 percent year-on-year. The performance of Baosteel shares is closely related to the industry background. In the first quarter, the demand of the downstream steel industry dropped sharply, steel prices dropped significantly, the price of iron ore fluctuated at a high level, and the economic returns of domestic steel enterprises dropped sharply. Starting from the second quarter, the domestic steel industry gradually got rid of the impact of the epidemic, and the resumption of work and production proceeded in an orderly manner, but the price of imported iron ore continued to rise to improve economic efficiency of the industry brought greater pressure. In response to the changes in operating income and net profit, Baosteel shares also said that due to the impact of the new crown epidemic, steel demand in the downstream industries was lower than expected, and steel sales decreased compared to the same period last year. At the same time, the sales price of steel fell sharply compared to the same period last year, but the ore price maintains the high level, the company purchases and sells the difference to narrow year-on-year. The company also mentioned that the gross profit margin of steel products showed an overall downward trend compared to the same period last year. Among them, the gross profit margin of steel pipes dropped by 3.7 percentage points, mainly due to the drop in international crude oil prices, and oil companies have significantly reduced their investment, the demand for oil pipe is shrinking seriously, which is affected by the decrease of product price. The gross profit margin of other products is down by 4.4 percentage points, mainly the decrease of billet gross profit margin by 6.9 percentage points. In response to the impact of the epidemic, in the first half of the year, Baosteel Stock Supply and marketing system in close coordination, rapid action, and actively implement the prevention and control of the epidemic and the resumption of production measures, the company's iron, steel and commodity billet production schedule; Located in the center of the epidemic, Wuhan Iron and Steel Limited, to achieve zero-stop production, but also shoulder the task of assistance and supply. It is worth mentioning that from the quarterly data, Baosteel shares have rebounded in the second quarter, second-quarter profit of 3.49 billion yuan, compared to the first quarter of 2.33 billion yuan increased by 1.16 billion yuan, an increase of 50% . The company said that this is mainly due to grab export, seize orders, optimize the resources structure and other measures to implement, so that the company seize market opportunities. In addition, the semi-annual report shows that Baosteel shares in the cost-cutting on the same remarkable results. In the first half of the year, the company achieved a cost reduction of 3.65 billion yuan by making full efforts to improve the quality of coal blending and ore blending, reduce logistics costs and improve key technical and economic indicators, significantly exceed the schedule to achieve the target, effectively support the company's operating performance. In view of the situation in the second half of the year, Baosteel shares forecast that, with the continued improvement of the economy, domestic steel production is expected to remain high in the second half of the year; supported by domestic steel production capacity, iron ore demand continues to increase, iron ore prices are expected to run at a high level. The second half of the stable supply of coal coke, prices overall show strong operation situation; scrap steel by rebar demand and iron ore price support, price is expected to high volatility. Baosteel shares said that the second half of the production and marketing of the company as a whole under control, but in order to maintain efficient manufacturing capacity, maintain and expand competitive advantage and other aspects will face many challenges and pressures. The company will further use multi-manufacturing base management capacity and synergy mining, maximize production capacity, tap cost reduction potential, effectively offset the impact of changes in internal and external business environment. It is worth noting that recently, Baosteel shares issued a September domestic futures price adjustment notice, September futures prices of major products in the basic increase in 200 yuan per ton. Huatai Securities believes that although the futures price and the actual sales price there are some differences, but the futures price increase reflects the enterprise level of optimism on the late market. At the same time, Baosteel shares is the leading car plate, domestic cold-rolled car plate market share of 50% , the price of this period significantly increased or mainly due to the lower car, home appliances and other industries demand boom.