The main business is stable, and sales tax expenses have decreased and profits have increased, but the contribution to investment income has declined. We believe that: 1) the company's main business was running smoothly in the first quarter, with revenue, operating costs, and period expenses all growing within 5% year on year; 2) due to the “business change increase” implemented on October 1 last year, the company's first-quarter sales tax and surcharges were reduced by 91% year-on-year, saving 12.35 million dollars in expenses; 3) investment income in the first quarter fell 26.17% year on year to 13.51 million. We judge that COSCO Shipping Engineering Co., Ltd. (40% share participation) was affected by the downturn in the industry, which probably dragged down the contribution of overall investment income. Net operating cash flow declined year-on-year, but fluctuated normally. In the first quarter, net cash flow from the company's operating activities fell 128% year on year to -7,525,600, which is somewhat different from the smooth operation of the main business. The main reason is that in the first quarter, the company used cash settlement methods to pay external labor costs, fuel costs, and employee remuneration expenses. Currently, the company's balance of cash and cash equivalents is 440 million yuan, down about 310 million from the end of 2012. The changes are mainly due to an increase in fixed asset investment and a decrease in short-term loans, and the net cash flow from operating activities fluctuates normally. Maintain a “careful recommendation.” The company's future fundamental highlights mainly come from: 1) the improvement of the collection and evacuation system in the port area; 2) the expansion of the liquefied chemicals handling business; and 3) the development of the port industry in the hinterland. We maintain our 2013-2015 EPS forecasts of 0.21 yuan, 0.26 yuan, and 0.28 yuan, respectively, corresponding PE of 15.11 times, 12.24 times, and 11.56 times, and maintain the “careful recommendation” rating for the company.