2021-08-26 Yunnan Copper (000878) issued a notice saying that Haitong Shi Yi, Qiu Zuxue of Societe Generale Securities, GF Securities Co., LTD. Juguoxian and Xinda Securities Lou Yonggang investigated our company on August 25, 2021. The survey was conducted by Han Jingen, secretary of the board of directors. Sun Ping, head of the securities department and representative of securities affairs, Zhang Qiao and Yue Shengwen of the securities department are responsible for receiving.

The main contents of this survey are as follows:
1. The company introduced to the attendees the main production and operation of the company in the first half of 2021: 1.In the first half of 2021, the company realized operating income of 59.324 billion yuan, an increase of 47.16% over the same period last year; the total profit was 909 million yuan, an increase of 50.28% over the same period last year; the net profit of returning to its mother was 252 million yuan, down 10.78% from the same period last year; and the profit and loss of minority shareholders was 436 million yuan, an increase of 92.37%. 2. In the first half of 2021, the company's mining enterprises produced 43800 tons of copper concentrate, a decrease of 4900 tons compared with the same period last year. The company's smelting enterprises basically produce according to the plan, and the main products have achieved growth. The production of cathode copper was 646300 tons, up 4.8 percent over the same period last year; gold was 11.67 tons, up 24 percent; silver was 333.49 tons, up 8.78 percent; and sulfuric acid was 2.1266 million tons, up 1.53 percent.
3. Analysis of the factors of increasing and decreasing profits of the company: the profit-increasing factors of the company are mainly concentrated in the two aspects of market and management. In the market, it is mainly due to the increase in product prices, mainly due to the rising prices of commodities such as copper; the rising prices of the company's by-products, such as sulfuric acid and iron ore; and in terms of management, the company continues to promote benchmarking management and strengthen cost control to further improve management efficiency. (2) the profit reduction factors mainly include the reduction of mine production, the decrease of processing fees, the loss of debt restructuring, the preparation for the price decline of inventory, the increase of taxes and fees, and so on.
4. The company plans to take measures in the second half of the year to further grasp the production organization, around the annual production plan, strengthen safety management, operation scheduling and raw material guarantee to ensure the completion of the plan target. Further promote cost control; further deepen enterprise reform, strengthen professional management of mines and smelting; further strengthen risk prevention and improve market research and judgment.
II. Question and answer exchanges
1. The reasons for the decline of mining production in the first half of the year and the production plan for the second half Some of the company's mines have stopped production, such as Jinsha Mining began to stop production in April, has started a public listing transfer process; the main mine Pulang Copper Mine annual maintenance and other conditions, affecting the output of 1300 tons. At present, the company's overall production is carried out in an orderly manner according to the plan, and the company strives to complete the annual production plan through reasonable organization.
two。 What is the sales price of the company's sulphuric acid and how does it affect the performance? In the first half of this year, sulphuric acid prices rose overall compared with the same period last year, but the rate of increase was different due to regional factors. The sulphuric acid sales price of the three smelting enterprises in the southwest region is the highest, followed by the southeast copper industry, and the price of Chifeng cloud copper is lower than that of other regions. Sulfuric acid as a by-product of the company's smelting enterprises, the production cost has not changed significantly, and the sales price adopts the principle of marketization. The rise in the price of sulfuric acid has contributed to the improvement of the performance of the company's smelting enterprises.
3. What is the production situation of Pulang Copper Mine in the first half and the production plan in the second half of the year? The company's Pulang Copper Mine reached production last year, and the current production is basically normal. The equipment of the production system was overhauled at the beginning of this year. In the second half of the year, through the reasonable organization of production, it is expected to complete the annual production plan.
4. Is the company concerned about lithium copper foil and does it have a layout plan? At present, the company does not have the layout of lithium copper foil-related business, nor does it have a layout plan for the time being. After that, investors consulted and understood the relevant information about the copper industry, and expressed their support and hope for the better development of the company in the next step.

Yunnan Copper main business: non-ferrous metals, precious metals production, processing, sales and production process design, construction, scientific research. Production, processing and marketing of high-tech chemical products. The manufacture and installation of mechanical power equipment, the export business of self-produced products and related technologies of the enterprise, and the import business of raw and auxiliary materials, machinery and equipment, instruments, spare parts and related technologies needed by the scientific research institute produced by the enterprise; engaged in the enterprise's feed processing and "three to one supplement" business; export the enterprise's own copper, mineral processing agents and non-ferrous metals Import raw materials, machinery and equipment, instruments, spare parts for production and scientific research, engage in non-ferrous metal mining and mineral processing business, chemical fertilizer processing and marketing, feed additive products, sulfuric acid; food additive production; production and management of liquid oxygen, oxygen, nitrogen, argon and other gas products; medical oxygen manufacturing; mixture, liquid nitrogen, liquid argon, high purity nitrogen, high purity argon, high purity helium sales Import and export of goods and technology; compressed air production and management; analysis and testing, logistics transportation and logistics auxiliary services Including daily department stores, labor protection supplies, cultural and office supplies, packaging materials, chemical raw materials and products (except dangerous goods), Wujinjiaodian, mechanical and electrical equipment and accessories, plastic products, rubber products, building materials, refractories, cement products, thermal insulation materials, lubricating oils, greases, metal materials, metal products, coal, wires and cables, Trade agent. (the above involves the business scope of national laws and regulations and operates on the basis of a license.) (for projects that must be approved according to law, business activities can only be carried out after being approved by the relevant departments.)

According to the 2021 report of Yunnan Copper Industry, the company's main income was 59.324 billion yuan, up 47.16% from the same period last year; the net profit from the home was 252 million yuan, down 10.78% from the same period last year; deducting 262 million yuan from non-net profit, up 34.93% from the same period last year; debt ratio 72.62%, investment income 27.0102 million yuan, financial expenses 445 million yuan, gross profit margin 4.34%.