Concept content of Hainan Strait Shipping Co., Ltd.

(1) The first listed company of ro-ro passenger transport:: The company is the leading company of ro-ro passenger transport in South China Sea with Hainan Province as the center, with a market share of over 35%. Mainly engaged in Haikou-Hai 'an, Haikou-Guangzhou and Haikou-Beihai, of which Haikou-Hai 'an line accounts for 89% of the company's operating income and its gross profit margin is 60%, which is the main source of the company's profits. The company plans to take "passenger ro-ro transportation as the main body, integrated logistics and passenger ro-ro cruise ships as the two wings", expand its business field through cross-regional mergers and acquisitions on the basis of strengthening its existing business, and strive to develop into a comprehensive passenger ro-ro transportation enterprise.

(2) Advantages of industry integration: Ro-Ro passenger transport involves the safety of a large number of passengers' lives and property, so local authorities usually implement strict supervision and market access system. After the survival of the fittest, the concentration of Ro-Ro passenger transport industry has been continuously improved. The transportation departments of Guangdong Province and Hainan Province have appropriate quantitative restrictions on the passenger ro-ro market in the company's operating area. As a leading passenger ro-ro transportation company in Hainan Province, the company is directly under the State-owned Assets Supervision and Administration Commission of Haikou City, and it will have advantages in industry integration in the region in the future.

(3) International tourist island: Hainan's maritime transport bears more than 98% of the freight volume and about 40% of the passenger traffic entering and leaving the island. As a direct beneficiary, the Strait intends to increase passenger and cargo transportation space through strategic adjustment. Among them, Haian Line is mainly based on freight revenue, so the company will improve the passenger positioning and the satisfaction of heavy trucks; Guangzhou Line and Beihai Line are located in tourist routes; In addition, under the development strategy of "International Tourism Island", the company will also intervene and develop the South China Sea maritime tourism business to enhance the profitability of passenger transport business.

(4) Fund-raising projects: The funds raised by the company will be used to update three ro-ro ship projects on Haikou-Hai 'an route and transform the "Coconut City No.2" ro-ro ship project on Haikou-Beihai route. The project * * * needs 43 1 10,000 yuan, and the construction period is 2 years. It is expected that the profitability will be improved after production.