Core views:

1. The company's products are mainly shaped steel and strip steel. Among them, the market share of shaped steel is 20%, which is in a leading position in the market. The average gross profit per ton of steel in the first half of the year was 440 yuan/ton. The profit situation continued to improve, setting the highest level since the company went public;

2. The cost control advantage is obvious. In the first half of the year, the expenses and financial costs of the three tons of steel were only 67 yuan and 1 yuan, far superior to those in the same industry. In addition to improved management efficiency, the company's capital expenditure has been low since 2011, resulting in sufficient cash flow, low leverage, and minimal financial costs. Three fees are expected to maintain a downward trend in the second half of the year;

3. Environmental production restrictions are stronger this year than before, and the specific implementation plan is uncertain. Urban heating in Qianxi County, Tangshan City is provided by the company, but it is expected that winter production restrictions will have a certain impact on the company's production.