Key events in the report describe the company's release of the 2015 annual performance forecast. The net profit attributable to the parent company during the reporting period was -1,300 million yuan to -1.50 billion yuan, compared to 42 million yuan for the same period last year. Based on the latest share capital calculation, EPS in 2015 was -1.75 yuan to -2.63 yuan, and 0.06 yuan for the same period last year. According to this estimate, the company's net profit for the fourth quarter was -107 million yuan to -195 million yuan, or 203 million yuan for the same period last year. Based on the latest share capital, EPS for the fourth quarter was -1.07 yuan to -1.95 yuan, 0.27 yuan for the same period last year, and -0.37 yuan for the third quarter. Incident review The main business and real estate profits declined, and the annual performance loss was large: the company mainly produces the three major products of steel, iron powder, and coke. Against the backdrop of a decline in the overall steel industry chain, the company's 2015 performance loss was mainly due to the following factors: (1) Low terminal demand in the steel industry led to a sharp drop in the volume and price of the company's products. Domestic special steel prices fell 23.65% year on year. At the same time, the company's iron ore and coke products also fell 12.10% year on year. Among them, the company's iron ore and coke products also experienced a sharp drop in volume and price for the whole year. Among them, iron ore and coke prices fell sharply year-on-year, respectively. 36.71% and 19.51%; (2) Since the fixed increase loan repayment project has not been completed, the company's balance ratio has continued to rise in recent years, reaching 88.38% in the 3rd quarter of 2015. As a result, the company's financial expenses continued to rise and were high, and the financial costs were high, making it another factor in the company's annual losses; (3) The company's gross profit loss in the 3rd quarter fell to 0.04%, and the company's preparation for impairment of construction and fixed assets also increased asset impairment losses throughout the year; (4) The company acquired West Steel Real Estate in October 2014 However, due to the housing construction phase in 2015, there were insufficient available properties, and the sharp decline in revenue and profit in the company's real estate development sector also led to a sharp decline in the company's annual performance. As far as the fourth quarter is concerned, the company's single-quarter results all experienced a sharp decline from month to month. Among them, the year-on-year decline in fourth quarter results should also be due to weak terminal demand, high financial expenses, increased preparation for impairment of projects under construction and fixed assets, and a decline in profits in the real estate development sector. The month-on-month decline in fourth-quarter results was mainly due to low demand in the industrial chain compounded by increased asset impairment losses. Special Steel's main business structure upgrade benefits from the “Belt and Road”: the company's main business highlights in the future are, on the one hand, product structure upgrades after completion of technical improvement projects. On the other hand, the regional advantage of being located in an important “Belt and Road” area will help the company's performance recover. In addition to its main business, the company's acquisition of real estate business and other diversified operations will ease the current decline in the company's steel business to a certain extent. The company's 2015 and 2016 EPS are expected to be -2.18 yuan and 0.03 yuan respectively, maintaining the “gain” rating.