In the first half of 2013, revenue increased 62%, and net profit fell 14%. In the first half of 2013, the company achieved operating income of 2.99 billion yuan, a year-on-year increase of 61.6%; net profit attributable to shareholders of listed companies was 157 million yuan, a year-on-year decrease of 14.0%; and an EPS of 0.19 yuan, and the decline in performance narrowed. Among them, the sharp increase in operating income was mainly due to the growth in the logistics trade business, while the decline in net profit was mainly due to a decrease in real estate business profits. The former's revenue increased 117% year on year, while the latter's revenue fell 57% year on year. Logistics trade continued to grow rapidly, and gross margin improved. Continued growth in logistics trade has supported a significant increase in the company's operating income. In the first half of 2013, the company's logistics trade revenue reached 2.4 billion yuan, an increase of 117% over the previous year, and the proportion of revenue increased to 80%. The gross margin of the company's logistics trade is only 2.14%, far below the gross profit margin of the transportation industry of 74.2% and the real estate industry of 58.6%, and its contribution to overall profit is still relatively limited. When the gross margin of logistics trade was negative for a while last year, the company also promptly withdrew from some projects with high market risk, low trade volume, and low profit. Currently, it mainly operates related businesses dominated by aluminum, coal, and chemical fertilizers, and supplemented by iron, steel, non-ferrous metals, agricultural materials, etc. Such management adjustments have also successfully changed the gross margin of the logistics trade sector from negative to positive. Toll revenue remained stable, contributing 74% of the company's gross profit. The company's main road production is located in Guangxi Province. The export-oriented type is not obvious, and toll revenue is less affected by the macroeconomy. In the first half of 2013, the company achieved toll revenue of 463 million yuan, a slight decrease of 0.43% over the same period last year. Under the influence of the 13-day free pass period in the first half of the year, the company still maintained the basic stability of tolls, which also reflected the stability of the company's main business. Furthermore, the company's business revenue outside Guangxi Province increased more than fourfold over the same period last year to 162 million yuan, mainly due to trade revenue from second-level subsidiaries Pingxiang Wantong Company and Wuzhou Guotong Company. The development of resource-based projects is still the focus of the company's future expansion. The acquisition of Tanghan Company was an attempt at the company's diversified development strategy in the field of resources. Since the final non-public offering plan was not approved by the board of directors, the company's expansion in the field of resources also came to an end for the time being. However, the company's strategy for arranging resource-based projects has not changed. In the future, it will focus on laying out merger and acquisition projects for non-ferrous metal mining, smelting, and processing enterprises, and establish a complete non-ferrous metal mining, smelting, and processing business chain, and gradually form a diversified business pattern that mainly operates highways, while logistics and resource development go hand in hand. Risk warning. Road toll policy adjustments, real estate market downturn v profit forecasts and valuations. Under the influence of toll exemptions, the company's toll revenue for the first half of the year was basically the same, in line with our previous expectations. We maintain the company's profit forecast for 2013-15. We expect the company's EPS for 2013-15 to be 0.40/0.46/0.51 yuan/share, respectively. The current A-share price is 3.84 yuan, and the corresponding 2013-15 PE is 9.5/8.3/7.5X, respectively. Considering that the company's diversified development is expected to achieve a breakthrough, maintain the company's “increase in holdings” rating.