In the first half of 2016, the company achieved operating income of 8.669 billion yuan, a year-on-year decrease of 52.37%; realized net profit of 841 million yuan, a year-on-year decrease of 200.86%; net profit after deducting non-return net profit of 1,265 billion yuan, a year-on-year decrease of 257.49%. The company achieved an EPS of -0.07 yuan in the first half of the year and 0.07 yuan in the same period in 2015. Non-recurring profit and loss of 425 million yuan is mainly the current net profit and loss of asset reorganization and subsidiaries. The transportation business was divested, and revenue declined significantly. The global macroeconomic downturn has led to a downturn in the consolidation market, mainly due to the divestment of container shipping after restructuring. This revenue came only from January-February. The transportation business achieved revenue of 3.682 billion yuan, a year-on-year decrease of 76%. The volume of traffic was 1,059,000 TEU, a year-on-year decrease of 73%. The company's shipping-related leasing business achieved revenue of 4.152 billion yuan, an increase of 119 percent over the previous year. Against the backdrop of sluggish demand in the transportation market and oversupply of large-scale capacity, the container ship leasing market will maintain a weak trend. The company's container manufacturing business achieved revenue of 484 million yuan, a year-on-year decrease of 44%. The restructuring of central shipping enterprises and the transformation of shipping finance platforms. After the restructuring, it sold port assets such as shipping ancillary businesses and China Sea ports, and acquired leasing and financial assets of China Transport and China Sea Group. After this restructuring, the business focus was transferred from container liner operations to shipping-related asset leasing, and a comprehensive financial service platform with shipping finance as the core leasing business such as ship leasing, container leasing, and non-shipping leasing, was created. The company's fleet size reached 115 ships, with a total capacity of 842,000 TEU. Among them, there are 74 self-owned ships, with a total capacity of 582,000 TEU. After the transaction was completed, the company's container leasing business was the second largest in the world, with significant scale advantages. By participating in the Minmetals Financial Control Platform, challenges and opportunities for transformation and development coexist. The company used 1.5 billion dollars in cash to participate in*ST Jinrui's fixed increase project, accounting for about 3.96% of the total share capital after the fixed increase. This is the first large-scale foreign investment after the company's restructuring and transformation. This participation in the financial control platform can make the company's future shipping finance platform investment and financing business more smoothly. Continue to pay attention to the company's subsequent mergers and acquisitions of similar assets and business team building in the financial sector. The company will be in an adjustment period of transformation, loss reduction, and efficiency improvement for some time to come. The EPS for 2016-2018 is expected to be -0.08,0.00 and 0.04 yuan respectively, giving it a “neutral” rating. Risk warning: The macroeconomic downturn continues, and the management risks brought about by the transformation.