The rapid decline in the price of hot-rolled coil products in a short period of time may lead to the net realizable value of inventory being lower than the cost price, and there is a risk of inventory falling in price. The overall price of raw material hot-rolled plate continued to decline, resulting in a decrease in ending inventory and prepayments. At the same time, due to the drastic price changes in the last quarter, the cost price of inventory in this period is high, which will have a certain impact on the company's profits in the short term.