In 2024, the steel industry is confronted with the challenge of deep adjustment. Shandong Iron and Steel is actively undergoing transformation to survive. In the first quarter of 2025, the company's operating performance improved significantly, achieving operating revenue of 19.255 billion yuan, net profit of 108 million yuan, and a substantial reduction in net loss attributable to the parent company. The loss narrowed to 14.4148 million yuan. The company has relied on the "Two Participations" model to promote the "1+6+N" transformation system. A series of measures have been implemented and achieved remarkable results, with a total profit of 154 million yuan in the first quarter. In the first quarter, the company's production line efficiency improved, key indicators showed improvement, a cost control system was established, costs and expenses were cut, and the cost of pig iron per ton of steel at the base reached the advanced level in the industry. The company optimized the product structure. The steel output was 4.041 million tons, increasing by 5.74% year-on-year. The sales volume was 4.0544 million tons, increasing by 1.76% year-on-year. The cost reduction at the procurement end leads to an increase in the price difference between purchase and sale. The steel industry's profits were relatively low in the first quarter, with different situations observed from the perspectives of supply and demand, prices, and raw materials. Among the 27 listed steel companies, Shandong Iron & Steel's net profit attributable to shareholders rose by 6 places, and its net cash flow from operating activities jumped to the third place. Citic Securities predicts that 2025 will be a turning point year for the steel industry.