The incident commented that the main business was stable, business tax expenses were reduced and profits increased, but the contribution of investment income 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 implementation of “business reform and increase” from October 1 last year, the company's operating taxes and surcharges for the first quarter were reduced by 91% year over year, saving 12.35 million in expenses; 3) investment income for the first quarter fell 26.17% year on year to 13.51 million. We judge that COSCO Shipping Engineering Co., Ltd. (40% of shares) was affected by the industry downturn, which probably dragged down the contribution of overall investment income. Net operating cash flow declined year over year, but fluctuated normally. In the first quarter, the net cash flow from the company's operating activities fell 128% year on year to -7525,600, 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 cash and cash equivalents balance is 440 million dollars, a decrease of about 3.1 million from the end of 2012. The changes are mainly due to increased fixed asset investment and a decrease in short-term loans. The net cash flow from operating activities has fluctuated normally. Maintain “careful recommendations.” 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 goods 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 company's “careful recommendation” rating.