Key events in the report describe Jiugang Hongxing's performance forecast for the 1st quarter of 2016. During the reporting period, the company achieved net profit attributable to shareholders of listed companies -0.27 billion yuan; according to the latest share capital calculation, EPS was -0.04 yuan in the first quarter of 2016, EPS was -0.06 yuan for the same period last year, and EPS was -0.55 yuan for the fourth quarter of last year. The incident review benefited from a larger decline in mineral prices and inventory turnover in the first quarter: steel prices in the first quarter still showed a downward trend. Among them, rebar and wire prices in Lanzhou fell by 13.82% and 14.37%, respectively. At the same time, we estimate that the company's production in the first quarter fell about 5.6% year on year. Under these circumstances, the company's first quarter results decreased year-on-year losses, or mainly due to the greater decline in mineral prices and inventory turnover effects: 1) The year-on-year decline in mineral prices in the first quarter was 22.66%, freeing up some room for profit in the smelting process; 2) In inventory; 2) Under the turnover effect, company 1 The year-on-year decline in quarterly costs should be further amplified. On a month-on-month basis, the company's performance improved markedly in the first quarter, mainly due to a sharp increase in volume and price and inventory turnover due to improved market conditions: 1) Steel prices rose 8.66% month-on-month in the first quarter; 2) We estimate that the company's production increased by about 7% month-on-month in the first quarter. Expect the “Belt and Road” to contribute more to the company's performance: Overall, the company's profit improvement is still hampered by insufficient industry sentiment, and subsequent substantial improvements in performance depend on the continued recovery in overall industry demand. However, the implementation of the “Belt and Road” plan has revealed the company's location advantage along the Silk Road, which is expected to accelerate the company's performance recovery. The company's EPS is expected to be -1.11 yuan and 0.02 yuan respectively in 2015 and 2016, maintaining the “gain” rating.