The incident described Xining Special Steel's 2015 annual report. During the reporting period, the company achieved operating revenue of 6.053 billion yuan, a year-on-year decrease of 17.24%; operating costs of 6.158 billion yuan, up 5.58% year on year; realized net profit attributable to the parent company - 1,619 billion yuan, compared with 42 million yuan in the same period last year; and achieved EPS of -2.18 yuan in 2015. According to estimates, in the fourth quarter, the company achieved revenue of 2,293 billion yuan, a year-on-year decrease of 22.65%; realized operating costs of 2,717 billion yuan, an increase of 19.21%; realized net profit attributable to owners of the parent company - 1,112 million yuan, or 203 million yuan in the same period last year; and EPS-1.50 yuan in the fourth quarter, 0.27 yuan in the same period last year. Incident review The steel and real estate business both declined, and the annual performance loss was large: the company's 2015 performance lost a large year on year, mainly due to the significant decline in steel smelting, resources and non-steel real estate businesses: 1) Due to the downturn in downstream, the company's steel business revenue fell 28.48% year on year in 2015, and gross margin decreased 21.32 percentage points year on year; 2) Compared with the smelting business, the black resources business, which has a higher degree of excess, also lost a lot in 2015. Among them, the coal business revenue fell 28.09% year on year, gross margin decreased by 2.94% year on year, ore Business revenue fell 36.53% year on year, and gross margin decreased by 13.08 percentage points year on year; 3) While the steel business declined, the net profit of the company's real estate business, West Steel Real Estate, was still 3.73 million yuan, but it fell 98.73% year on year, which should be due to revenue settlement reasons. In addition, the company's asset impairment losses increased by 323 million yuan year-on-year in 2015, which also exacerbated the company's performance losses. Gross margin fell to negative, and losses increased dramatically in the fourth quarter: The sharp decline in the company's fourth quarter results stemmed from a negative gross margin: the prosperity of the steel industry fell to a low point in the fourth quarter, and the company's coal, ore and other resource business further dragged down the company's performance, which led to a large loss in the company's off-season results. In addition, the company lost 426 million yuan in asset impairment in the fourth quarter, an average increase over the same period last year, and seriously curtailed the company's profitability. The company's fixed increase of 5.782 billion yuan to repay bank loans has been approved, which will help reduce the company's financial expenses and enhance its ability to withstand the harsh winter of the industry. The company is expected to achieve EPS of 0.13 yuan and 0.14 yuan respectively in 2016 and 2017, maintaining the “gain” rating.