Group 1: Company Overview and Development - The company was established in 2002 and listed on the Shenzhen Stock Exchange in 2009, laying the foundation for rapid development [2] - In 2017, the company expanded its business to port services by acquiring ferry terminal assets [2] - The company completed resource integration in the Qiongzhou Strait in 2021, enhancing transportation capabilities [2] - By 2025, the company will have a fleet of 64 passenger and roll-on/roll-off ships following the acquisition of 100% equity in COSCO Shipping Passenger [2] Group 2: Infrastructure and Capacity Enhancements - The new Haikou passenger transport hub has a designed capacity of 35 million passengers and 5.6 million vehicles annually [3] - The company plans to purchase 4 flat cargo ships for transporting new energy vehicles by 2025 [3] - Two new green intelligent roll-on/roll-off ships will be built to replace older vessels, improving service quality [3] Group 3: Route and Service Expansion - The company is implementing a multi-channel strategy by adding two large roll-on/roll-off ships to the Haikou-Beihai route [3] - New routes to Fangchenggang and Nansha in Guangzhou will enhance trade cooperation and support national strategies [3] Group 4: Pricing and Capacity Management - The company will adjust ticket prices for the Haikou-Haian route based on market demand and social feedback [4] - The company will not add new shipping companies to the Haian route but will replace old ships with larger, more efficient vessels [5] Group 5: Impact of Free Trade Port Policies - The implementation of favorable tax policies in Hainan is expected to lower operational costs and attract more investors [9] - The company anticipates revenue growth linked to the economic growth of Hainan, influenced by infrastructure improvements and policy changes [9] Group 6: Future Developments and Strategic Initiatives - The company is conducting due diligence and negotiations regarding the investment in Xuwen Port, with ongoing discussions [10] - The completion of the Pinglu Canal will significantly shorten transportation times and enhance connectivity for the company’s routes [11]

Company Overview - Established in 2002 by five shareholders, listed on Shenzhen Stock Exchange in 2009 [2] - Acquired ferry terminal assets in 2017, marking the first step towards port and shipping integration [2] - Became a subsidiary of China COSCO Shipping Group in 2019, entering a rapid development phase [2] - Completed resource integration in Qiongzhou Strait in 2021, enhancing transportation service capacity [2] - Plans to acquire 100% equity of COSCO Shipping Passenger by 2025, increasing fleet size to 64 vessels, ranking first globally [2] Business Model - Revenue primarily generated from passenger and cargo transportation fees, alongside port operation income [3] - Development of unique products through tourism routes to enhance overall revenue [3] Market Opportunities - Anticipated increase in passenger and vehicle flow due to Hainan Free Trade Port's operational closure in 2025 [4] - Plans to invest in new flat barges and passenger ferries to meet market demand [4] - New routes to alleviate pressure on existing services [4] Dividend Policy - Committed to providing stable dividends while ensuring sustainable company growth [5] - Dividend policy considers profitability, cash flow, future investment plans, and shareholder expectations [5] Impact of Hainan Free Trade Port - Tax incentives will lower operational costs, creating a favorable environment for growth [6] - Policy changes will facilitate easier movement of goods, attracting more investors [6] - Improved infrastructure, such as the completion of the island tourism highway, will boost business [6] Future Capital Expenditure - Plans to invest in two new passenger ferries to replace aging vessels [7] Competitive Landscape - COSCO Shipping Passenger operates 12 vessels, while Bohai Ferry has 14, indicating a slight edge for the latter [8] - Focus on improving operational efficiency and management to enhance profitability [8] - Strategy includes capacity upgrades, joint marketing, and cost control measures [8] Disclosure - The activity does not involve any undisclosed significant information [9]