At an investor relations event on July 23, Tianjin You Fa Steel Pipe Group Stock (601686.SH) stated that in order to respond to the impact of the steel industry's downward cycle, the company strives to keep overall inventory at a relatively low level while adhering to a strategy of rapid turnover. If steel market prices experience drastic fluctuations, it may affect the inventory value of the company and the purchasing behavior of downstream customers. The company prefers market prices to remain stable or exhibit normal fluctuations as expected, hoping to obtain reasonable profits through its core business operations such as normal production and sales. The company does not rely on inventory price increases to gain profits and also strives to avoid losses due to scientific inventory management. Since the first half of this year, steel prices have shown a downward trend overall. The company provided a price trend chart for hot-rolled coils in the Tianjin region in its semi-annual performance forecast (source: MySteel.net), which showed prices dropping from around CNY 4,000 per ton in early January to around CNY 3,600 per ton at the end of June. The company has effectively responded to the opportunities and challenges brought about by the decline in steel raw material prices through strategies such as low inventory and high turnover, and its operating performance has returned to a normal level and improved year-on-year in the second quarter.