Incident: On the evening of May 24, Yasheng Group (600108) announced that in the early morning of May 15, due to strong cold air, some crops at the company's Tiaoshan Agricultural Industrial and Commercial Development Branch in the Jingtai County district were affected by low temperatures. Currently, it is estimated that a total of 375.212 million yuan in direct economic losses have been caused. Comment: According to the announcement, in Jingtai County, the company's production area, the local temperature plummeted to -3.1℃ and continued for a long time. As a result, the company's Tiaoshan Agricultural Industry and Commerce Development Branch suffered a low temperature disaster, and crops were affected to varying degrees. According to the company's statistics, the freeze is estimated to have lost 375.212 million yuan, bringing the total affected area to 8848.32 mu. In addition, the company revealed that the company's damaged products mainly include 3963.96 acres of early crispy pears, 2517.11 acres of Huangguan pears, 1641.55 acres of apples, and 725.70 acres of apricots. According to the quarterly report, the company's net profit for the first quarter decreased by 53% year on year. The heavy losses from this disaster have already had an impact on current performance. This will undoubtedly put pressure on future performance. As a result, we have lowered our expectations for the company in 2016. Profit forecast: We forecast the company's 2016-2018 EPS to be 0.12, 0.17, and 0.25 yuan respectively, giving the company a “neutral” rating. Risk warning: 1) risk of market change; 2) regulatory risk; 3) risk of industrial policy change.