Affected by the decline in freight volume and freight rates, the company's performance was at a loss in the first quarter of 2009 and 10, but the company's performance has improved as the economy gradually picks up. The company's gross profit margin reached 7.39% in the first quarter of 2010, a sharp improvement from 27.52% in the fourth quarter of 2009 and an increase of 2.11 percentage points over the same period in 2009. However, the improvement in freight volume and freight rates is still difficult to reverse the company's loss predicament in the short term, and the company's operating profit still lost 46.85 million yuan in the first quarter of 2010.

2010 is the middle period of the company's capacity delivery, in the context of the shipping market is still not ideal, the large delivery of capacity will bring cost pressure to the company. By the end of 2009, the company has a capacity of 2.7 million deadweight tons. Although the company has made great efforts to achieve the delayed delivery of some ships in 2009, it is expected that the 10-year capacity will still have a net increase of 40 ships and 410000 deadweight tons. In a weak market environment, dry bulk freight rates are difficult to rise steadily, and the growth of capacity is also difficult to bring the growth of freight volume in the same period. On the contrary, ship depreciation costs and financial expenses included in the current period will increase.

The company is mainly engaged in the transportation of bulk cargo along the coast and along the Yangtze River. at present, the proportion of ocean transportation is relatively small, and the contract volume accounts for the vast majority of the company's total transport volume. The company's customers are relatively concentrated, and after several years of development, the company has gradually formed a fixed customer group, including WISCO, Baosteel, Maanshan Steel, Shagang, Shanghai Conch, Chongqing Iron and Steel Co., Ltd., the operating income of the above-mentioned companies accounted for 67.75% of the company's operating income in 2009, and the company's mode of operation is to sign an annual transportation contract with customers, which can guarantee freight volume to a certain extent, but if the market development is lower than expected. The contract volume is still difficult to guarantee. In 2009, the company actually completed the contract freight volume of 43.05 million tons, accounting for 68.32% of the company's annual freight volume.