Business Overview According to Drury's data, in terms of throughput in 2012, the Group is the world's largest public terminal operator for bulk dry bulk goods; in terms of throughput in 2012, the Qinhuangdao Port operated by the Group is the largest coal port in the world, accounting for about 31.9% of the total amount of coal launched in coastal ports in China in 2012. The group is also one of the most important ore terminal operators in the Bohai Rim region of China. The Group believes that the Group will develop into a leading integrated terminal operator in China within the next five years. By increasing investment in port facilities and equipment, the Group provides customers with high-quality and efficient integrated port services, including cargo handling, storage, storage, transportation and logistics services. The types of goods handled include coal, metal ore, oil and liquid chemicals, containers and other miscellaneous goods. The Qinhuangdao Port and Huanghua Port terminals operated by the Group and the Caofeidian Port terminals operated through joint ventures are all located in the Bohai Rim region. Among them, Qinhuangdao Port has a business history of over 100 years; Caofeidian Port and Huanghua Port are in a stage of rapid development. The Group and associated companies currently operate a total of 62 berths, with total throughput of 309.94 million tons, 349.56 million tons, 336.07 million tons and 182.56 million tons for the years ending 2010, 2011 and December 31, 2012, and the six months ending June 30, 2013, respectively. Qinhuangdao Port is the most important hub port for China's domestic trade coal transportation channel, and plays an important role in China's coal transportation system. China's coal resources are mainly stored in western and northern regions such as Inner Mongolia, Shanxi, and Shaanxi, while domestic demand for coal consumption mainly comes from developed regions along the southeast coast of China. Generally speaking, coal produced in the western and northern regions is first transported by railway “west to east coal”, from production areas to eastern coastal ports, and then “north to south coal” by sea, to the southern region. The Daqin Line is the most important railway line in China's “West-East Coal Transportation” transportation channel. Qinhuangdao Port is located at the eastern end of the Daqin Line. The railway line goes directly to the port, occupies a strategic geographical location, and is the main transit port for coal transportation on the Daqin Line. Furthermore, the port of Qinhuangdao has excellent natural and geographical conditions. It is a good natural deep-water port, does not freeze and dry, and is connected to many national highways on land. Drury's statistics show that the “Bohai Rim Thermal Coal Price Index” published by the Qinhuangdao coal market has become the pricing basis for key domestic coal orders and coal trade, and is becoming an important reference basis for international coal trade. Caofeidian Port is connected to the Daqin Line via the Qiancao Line. Tangshan Port (including Jingtang Port and Caofeidian Port), where it is located, is the second largest coal transit port on the Daqin Line after Qinhuangdao Port. After the completion of the Mongolia-Hebei Line in 2014, Caofeidian Port can be directly connected to Inner Mongolia, an important coal-producing region in northern China. It is expected to become one of the three major transportation channels of “West-East Coal Transport”, further consolidating the strategic position of Caofeidian Port in China's coal trade and transportation system. Furthermore, according to statistics from the China Iron and Steel Association, Hebei Province is the largest steel production base in China, and crude steel production in 2012 accounted for about 24.8% of the country's crude steel production. The hinterland of Caofeidian Port is a base for many of China's leading steel companies, and will continue to benefit from increased local demand for imported iron ore. Huanghua Port is close to the economic hinterland of south-central Hebei Province and northwestern Shandong Province. It has an excellent location and is the first port of transit for shipping trade in the region. Huanghua Port is one of the most convenient and economic outlets in central and southern Hebei. It is expected to become a major transit port for iron ore imported by large steel companies in the region (including Cangzhou, Xingtai, and Handan in Hebei Province) and a major ore port in the Bohai Rim region. The Hanhuang Line, which is currently under construction, directly connects Huanghua Port to coal-producing areas and steel bases in the hinterland. It is expected to be completed no later than 2014, bringing in a large supply of coal and iron ore. Furthermore, Cangzhou is also an important chemical base in the Bohai Rim region, and demand for oil trade is strong. The group plans to build Huanghua Port into one of the largest integrated ports in the Bohai Rim region. The Group maintains long-term business partnerships with major customers, including Shenhua Group, China Coal Group, Tongmei Group, Yitai Group, Guodian Group, Zhejiang Energy Fuxing, and Datang Group. The Group and some major customers jointly invest in the development and operation of terminal business, further strengthening customer relationships and ensuring a stable supply of goods. Furthermore, for some major long-term contract customers, the Group has also enhanced customer satisfaction and improved port operation efficiency by providing dedicated depots, berths and related port facilities. The current shareholders of the group include some of its major customers, Tongmei Group and Shougang Corporation, as well as Daqin Railway and China Shipping, a major partner of the group.