Business City (600306.CH/RMB 12.40, buy) achieved revenue of 932 million yuan in the first three quarters of 2015, a year-on-year decrease of 17.77%, net profit attributable to shareholders of listed companies of 100 million yuan, and fully diluted earnings per share of -0.57 yuan, which is basically in line with our expectations. Net profit attributable to shareholders of listed companies after deduction is -101 million yuan. In 2014, the company divested two non-core assets. Although it solved the risk of short-term delisting, it was not possible to resolve the business difficulties that the company will face in the long term. We believe that the company's future focus is still on backdoor resources. Given the lack of techniques for recovering from its main business, we expect to improve the current difficult situation where its main business continues to lose money in the next year, and maintain the company's earnings per share forecasts for 2015-17 at -0.9 yuan, -0.7, and 0.4 yuan, respectively, maintaining the target price of 20.50 yuan/share, and maintaining the buying rating. Key points supporting ratings During the reporting period, retail business revenue declined, net profit was lost, and the main business faced tremendous pressure: in the first three quarters of 2015, the company achieved revenue of 932 million yuan, a year-on-year decrease of 17.77%, net profit attributable to shareholders of listed companies of 100 million yuan. On a quarterly basis, the company achieved revenue of 275 million yuan in a single quarter, a year-on-year decrease of 11.81% over the previous year, and loss of net profit of 28.66 million yuan. Although the decline in revenue growth in the third quarter narrowed compared to the first and second quarters, the company's retail business faced tremendous pressure, high balance ratio, and financial cost pressure Larger, the full-year results are expected to be a loss. Gross margin increased 0.21 percentage points year on year, and the cost ratio for the period decreased by 2.2 percentage points year on year: During the reporting period, the company's comprehensive gross margin increased by 0.21 percentage points to 17.15%, and the expense ratio decreased 2.2 percentage points to 27.89% year on year. Among them, sales, management, and financial expense ratios changed -0.63, 0.12, and -1.32 percentage points, respectively, to -0.3%, -0.27%, and -1.62%. The main reason for the reduction in the cost ratio was the reduction in financial expenses due to a decrease in insurance premiums, storage fees and other sales expenses during the reporting period. The main reason is the reduction in interest expenses for repaying bank loans. Valuation: In 2014, the company divested two non-core assets. Although it solves the risk of short-term delisting, it is impossible to resolve the business difficulties that the company will face in the long term. We believe that the company's future focus is still on backdoor resources. Given that its main business has no recourse, we expect to improve the current difficult situation where its main business continues to lose money in the next year, maintaining the company's 2015-17 earnings per share forecast of -0.9 yuan, -0.7, and -yuan, respectively, maintaining the target price of 20.50 yuan/share, and maintaining the buying rating.