News/Announcements. The company released its 2018 annual report. During the reporting period, the company achieved operating income of 21,880 billion yuan, an increase of 20.33% over the previous year, and realized net profit of 2,884 billion yuan, an increase of 7.75% over the previous year. Net profit after deduction of net income was 2,559 billion yuan, up 10.08% year on year, achieving basic earnings per share of 0.22 yuan. The weighted average ROE was 7.75%, an increase of 0.24 percentage points over the previous year, and the average non-weighted ROE was 6.88%, an increase of 0.36 percentage points over the previous year. The performance was generally in line with expectations. Cargo throughput increased 7.8% year over year, maintaining a leading position in growth. During the reporting period, the gross domestic product grew by 6.6%, and China's national economy generally operated smoothly, showing a steady and progressive trend. The trade structure was continuously optimized, and the total import and export volume reached a record high. The total import and export volume of goods reached 30.5 trillion yuan throughout the year, an increase of 9.7% over the previous year. The cargo throughput of major ports across the country increased steadily. Among them, the country's ports above coastal scale completed cargo throughput of 9.213 billion tons throughout the year, an increase of 4.2% over the previous year. During the reporting period, relying on good geographical location and efficient operation, the company completed cargo throughput of 776 million tons, an increase of 7.8% over the previous year; completed container throughput of 27.94 million TEUs, an increase of 7.6% over the previous year, an increase of 7.6% over the previous year, ahead of the average of China's major coastal ports. The trading business contributed mainly to the increase in revenue, and the main increase in profit came from the container business and integrated logistics business. In 2018, the company achieved main business revenue of 21,699 billion yuan, an increase of 20.25% over the previous year. Among them, the trade sales business achieved revenue of 3.646 billion yuan, an increase of 101.77% over the previous year, contributing mainly to the increase in operating income. The company's total gross profit during the reporting period was 5.361 billion yuan, up 15.38% year on year, and gross margin was 24.24%, down slightly year on year. Among them, the container business achieved gross profit of 2,076 billion yuan, a year-on-year increase of 23.7%, and gross margin of up to 44.79%; and the integrated logistics business achieved gross profit of 1,643 billion yuan, an increase of 20.3% over the previous year. Both provided major increases in the company's profit. Continuing to promote integrated operation management, advantages and results are gradually becoming apparent. The company's integrated operation and management advantages were gradually reflected. During the reporting period, the container throughput of Beilun Third Container Co., Ltd. once again exceeded 10 million TEUs, Meishan Company achieved more than 4 million TEUs for the first time, the first container throughput in Beilun, Ningbo exceeded 3 million TEUs for the first time, and the cargo throughput of the ore company exceeded 110 million tons for the first time. The cargo and container throughput of the Wenzhou Port Group, which is managed and operated by the company, increased by 10.1% and 12.1%, respectively. The cargo and container throughput of Jiaxing Port increased by 17.1% and 19.5%, respectively. Yiwu Port achieved leaps and bounds in the volume of depot operations and the number of trailers thrown over the same period last year. Furthermore, the integrated operation of the Yangtze River Delta continues to deepen, and the successful implementation of integrated measures such as one license for the whole of Hong Kong, shared use of anchorages, and cancellation of passenger and vehicle permits in restricted areas at ports has helped to drastically reduce the non-operation time of container ships. Adjust profit forecasts and maintain “excess holdings” ratings. According to the company's current operating situation, we adjusted our profit forecast for 19/20 and added the 2021 forecast. We expect net profit from the mother in 2019-2021 to be 3.174 billion yuan, 35.28 billion yuan, and 3.853 billion yuan respectively (the original 19/20 forecast was 3.226 billion yuan and 3,533 billion yuan), corresponding to current stock prices of 18 times, 16 times, and 15 times, maintaining the “increase in holdings” rating. Risk warning: Throughput falls short of expectations due to the sharp economic downturn.