The results of the first quarter of 2009 were in line with expectations: the company's operating income in the first quarter of 2009 was 44.48 million yuan, down 13.27% from the same period last year; the operating profit was 1.0957 million yuan, down 53.78% from the same period last year; and the net profit after tax was 1.0228 million yuan, down 43.91% from the same period last year. Earnings per share is 0.0026 yuan, basically in line with market expectations.

The sharp decline in net profit is mainly due to the decrease in investment income confirmed by the cost method: the company realized 12.95 million yuan in investment income in the first quarter of 2009, excluding the investment income of the joint venture, the investment income calculated according to the cost method was 1.7 million yuan, compared with 6.03 million yuan in the same period last year, down 53.78% from the same period last year.

In addition, the expense rate of the company in the first quarter of 2009 is as high as 64.95%, which is much higher than that of similar retail enterprises, indicating that the company's operating and administrative expenses are high, which also suppresses the realization and growth of the company's net profit.

The investment income of the joint venture and joint venture is 11.25 million yuan, which is mainly contributed by Jiuguang Department Store: Jiuguang Department Store, which accounts for 30% of the company's equity, is the main source of investment income of the company's joint venture. We roughly estimate that Jiuguang Department Store achieved a net profit of 37.49 million yuan in the first quarter of 2009, with an estimated growth rate of about 30%. Jiuguang Department Store once again showed good growth and profitability.

We think that the company is still more interested in the remaining 5% equity injection of Jiuguang Department Store and the sustained and rapid growth of Jiuguang Department Store.