In the first quarter of 2013, the company achieved operating income of 1.57 billion yuan, down 7.9% from the same period last year; operating profit of 8.995 million yuan, down 40.41% from the same period last year; net profit belonging to the owner of the parent company was 5.9514 million yuan, down 24.23% from the same period last year; and basic earnings per share was 0.0115 yuan.

Income and gross profit margin have not improved significantly. In the face of the severe business situation of insufficient external demand and sluggish domestic demand in 2012, the company focuses on "quality" in terms of trade business, and hedges potential operating risks through structural optimization. In terms of exports, Japan, Hong Kong and Southeast Asia grew better in the region, with an increase in the proportion of textile products and non-textile products. In terms of imports, pulp, chemical raw materials, logs and non-ferrous metals are dominant. In the end, the overall revenue of the trade business for the whole year increased by 13% year-on-year, accounting for 51.7% of the total revenue. In the first quarter of 2013, the company's overall revenue and gross profit margin pattern did not change significantly. Revenue fell 7.9% from the same period last year, similar to the overall decline in 2012. The comprehensive gross profit margin was 4.9%, up 0.2 percentage points from the same period last year, and the single-quarter value was the same as that in the fourth quarter of last year. Since the fourth quarter of 2011, the single-quarter gross profit margin has always fluctuated within a narrow range of 4.7%. 5.3%. From the perspective of revenue and gross profit margin, the market situation facing the company's business remains the original trend, and the probability of small fluctuations in the second quarter is expected to be large.

In the future, we will continue to create a development pattern of "big trade" and promote the coordinated and diversified development of "real estate, investment and industry". In the face of the major economic changes in Europe and the United States from 2009 to 2011, the company has made great efforts to implement the strategy of foreign trade diversification, seize the historical opportunity of the rise of emerging economies, and seize the important opportunity of accelerating the transfer of the international service industry and the great development of China's service industry. further optimize the company's "big trade pattern". We believe that although many economic problems in Europe and the United States have improved to varying degrees since 2012, the conclusion of a complete recovery may be too early. If it comes early, the market environment for the development of the company will be more favorable. If there are variables, the big trade strategy can also enable the company to make a smooth transition.

Earnings forecast and investment rating: the company's earnings per share from 2013 to 2014 are expected to be 0.07 yuan and 0.10 yuan respectively, according to yesterday's closing price, the corresponding dynamic price-to-earnings ratio is 52 times and 36 times respectively. Maintain a "neutral" investment rating.

Risk tips: 1) the risk of weak recovery in foreign major economies; 2) the management risk of corporate diversification.