The incident described Xining Special Steel's 2015 interim report. During the reporting period, the company achieved operating revenue of 2,371 billion yuan, a year-on-year decrease of 16.89%; operating costs of 2,052 billion yuan, a year-on-year decrease of 12.88%; realized net profit attributable to shareholders of listed companies was -236 million yuan, achieving EPS of -0.32 yuan, and EPS of -0.17 yuan for the same period last year. Among them, the company achieved operating income of 1.02 billion yuan in the second quarter, a year-on-year decrease of 21.17%; the year-on-year growth rate for the first quarter was -11.98%; operating costs were 1,063 million yuan, down 12.75% year on year; net profit attributable to shareholders of listed companies in the second quarter was 157 million yuan, compared with -38 million yuan for the same period last year; EPS in the second quarter was -0.21 yuan, and EPS in the first quarter was -0.11 yuan. Incident review The downturn in the industry led to a sharp drop in volume and price losses in the first half of the year: mainly due to the sharp drop in volume and price due to the downturn in the industry. The company's revenue in the first half of the year fell 16.89% year on year, the comprehensive gross margin decreased by 3.98 percentage points year on year, and the company's steel production fell 3.39% year on year in the first half of the year. The company's steel business revenue, which accounts for the largest share of the company's revenue, fell by 24.58% year on year, and gross margin fell by 1.31 percent year on year. percentage points, It became the main limiting factor in the first half of the year's performance; 2) Low demand for midstream steel will directly affect upstream coal and iron ore. Affected by this, coke and iron powder, which account for a relatively large share of the company's revenue, also experienced a sharp drop in volume and price; 3) Although the acquisition of West Steel Real Estate brought about a 714.69% year-on-year increase in revenue in the first half of the year, the increase in the company's overall performance was limited; 4) Although the company's three expenses and asset impairment losses decreased year on year, it is still difficult to reverse the loss in performance. Gross margin declined, and losses in the third quarter increased year on year: On the year-on-year side, it was also constrained by the downturn in the industry. Revenue for the second quarter fell 21.17% year on year, gross margin fell 8.54 percentage points year on year, and finally the loss for the second quarter increased year on year. 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 0.00 yuan and 0.04 yuan respectively, maintaining the “gain” rating.