According to the 2012 interim report, the company achieved overall operating income of 160 million yuan (-11.16%, a year-on-year decrease of 5.75% after excluding uncomparable factors), operating profit of 218 million yuan, net profit attributable to the parent company of 180 million yuan (-23.62%, a decrease of 1.9% after deduction), and an EPS of 0.09 yuan. (1) Investment income from Yantian International declined due to poor external demand. Most of Yantian Port's net profit came from investment income in joint ventures. On the one hand, due to the failure of the restructuring, Yantian International Phase III continued to divert goods from Phase 1 and Phase 2; on the other hand, the overall economic situation was sluggish, and the throughput of Yantian International and the West Port Area fell 7.5% and 1% year on year in the first half of the year. It is estimated that Yantian International and Westport will contribute about 210 million yuan in investment income in 2012, down 10.6% from the previous year. (2) Caofeidian Port Company became a new profit support point. In the first half of 2012, the company achieved investment income of 33 million yuan in Caofeidian Port Company. Caofeidian Port Company has become the company's second largest source of investment income. In the first half of the year, its throughput reached 2.36 million tons, an increase of 70.81% over the previous year, and the growth momentum is strong. (3) The road transport business is under great pressure — the main reason for the decline in performance 1. The implementation of the new toll standards for the Shenzhen Highway will reduce annual toll revenue; 2. The introduction of a free highway traffic policy on holidays and the expansion of the Huiyan Expressway will also affect the company's road transport business profits. In the first half of the year, road business revenue and profit declined by 9.29 million yuan and 10.53 million yuan. The new standards began to be implemented on June 1, so we expect the year-on-year decline in road business to increase in the second half of the year. Future prospects — Expecting economic recovery and the investment income from Yantian International Phase III injection into the container terminal account for about 35% of the company's profit, which is a more flexible part. The economic recovery in Europe and the US is expected to drive up container throughput and thus increase the company's investment income. Also, considering Yantian Port Group's overall listing goal, we expect Yantian International's Phase III equity injection to still be worth looking forward to. Risk warning: The economic recovery process is slow, and external demand is insufficient to continue; the timing of the third phase of asset injection is uncertain