Key investment events: On June 25, Wuzhou Communications held an online performance conference. The company's chairman, board secretary, and financial director attended the meeting and exchanged views. In addition to the traditional transportation business, Wuzhou Transportation has opened up other business types such as real estate and logistics trade. Currently, transportation, real estate, and logistics trade account for 15.53%, 3.99%, and 80.24% of the company's revenue, respectively, and the gross margins of the three categories are 71.30%, 51.34%, and 1.77%, respectively. Revenue from the company's transportation business has been rising steadily. The decline in the company's performance is mainly due to the fact that the gross margin of logistics trade, which accounts for the company's revenue, is below the industry average. Wantong Company, which is responsible for the trade business, has experienced some problems in management, poor capital recovery, and high bad debt rates have dragged down the company's profitability. It is worth noting that the company is actively developing agricultural product-related transactions and logistics business, mainly carried out by Jinqiao Company, and business conditions are steadily improving. The year of industrial restructuring in 2014. In 2014, the company will adjust its existing business according to profitability, and the corresponding revenue will be drastically reduced. In 2014, the company expects to achieve revenue of 2.2 billion yuan, a decrease of 63% compared with 2013. The company's revenue for the first quarter was only 535 million yuan, and the return on net assets was 2.41%, confirming the company's current business conditions to a certain extent. At present, the company is making targeted efforts to reduce the less profitable logistics trade business, improve the quality of road maintenance, stabilize road tolls, speed up the construction of agricultural product parks, and enter the field of non-ferrous metals. Beginning last year, the company carried out a series of major asset replacement work related to restructuring, including the exchange of assets between Jinyi Road and Cen Luo Expressway, the acquisition of Nanxing Tiye and Tanghan Zinc and Indium Company, etc. The company promised to complete the asset exchange of Cen Luo Expressway by the end of June and resume production in the South Star Antimony Industry within the second half of the year. Wuzhou Transportation is a typical example of the transformation of traditional road toll companies. The company strives to raise the level of profit by changing its main business content and improving management performance. We believe that Wuzhou Transportation is a model for the transformation of domestic state-owned road and bridge toll listed companies. Currently, many domestic road and bridge companies are facing the dilemma of the expiration of charging rights, making it difficult for the company's main business to continue to grow, so they are seeking new profit growth points one after another. Wuzhou Transportation has made breakthroughs in various ways using diversified methods, and has dabbled in logistics trade, real estate, non-ferrous metals, and even finance. Judging from the business situation, consumer logistics revenue is stable, represented by agricultural product logistics parks; businesses related to border trade logistics have poor performance in terms of management, but the company has gradually shrunk down this type of business and reduced financial expenses by using rational accounting management methods. Valuation and ratings: It is estimated that in 2014 and 2015, the company's earnings per share were 0.158 yuan and 0.168 yuan, corresponding to PE of 25 times and 24 times, respectively. Given the company's industrial restructuring this year, the profitability of new business categories has not yet been demonstrated, so it will not be rated for the time being.