The board of directors reviewed and passed the bill, agreeing that the company would terminate the operation of the Qinghe store early. On the evening of December 19, the company issued an announcement stating that the 3rd meeting of the 5th board of directors of the company reviewed and passed the “Proposal on Termination of Operation of Cuiwei Department Store Qinghe Store”. Due to factors such as the operating environment, property conditions, and operating costs, the Qinghe store leased by the company did not meet expectations, and it is very difficult to reverse losses in the future, so it will be terminated early in the near future. The Qinghe store lost money for two consecutive years. In order to improve the company's overall operating quality, the company's Qinghe store was terminated prematurely. The scope of the company's Qinghe store included the #楼地上1 -6 floor and the first basement floor of Qiangyou Qinghe Xincheng, with a total construction area of 316,000 square meters. It was leased by the company and from March 16, 2010 for commercial operation. The lease period originally expired on March 16, 2025. The Qinghe store achieved a total profit of 28.65 million yuan in 2015, and is expected to achieve a total profit of 26 million yuan in 2016. Losses for two consecutive years fell short of the company's expectations. In order to reduce further operating losses and improve the quality of operations, the company decided to terminate the operation of the Qinghe store early. The company is still mainly based on retail, and short-term performance is under heavy pressure. On July 22, 2016, the company signed a “Cooperative Education Agreement” with Beijing Haiqu State-owned Assets Investment and Management Co., Ltd. and Beijing Daoqin Investment Management Co., Ltd. to jointly invest in the establishment of Beijing Haidian International Education Investment Co., Ltd., with a registered capital of RMB 50 million, of which the company invested RMB 7.5 million, accounting for 15% of the equity ratio. The company takes a stake in an education investment company, which can effectively revitalize capital. The company's business is still mainly retail. Since the company's stores, the modern shopping mall and Ganjiakou Building, are positioned as middle and high-end department stores, due to weak consumption, performance is under heavy pressure. Maintaining profit forecasts, increasing holdings ratings, and targeting a target price of 11.5 yuan for the next six months, the company's stores are positioned as middle and high-end department stores. Affected by weak consumption, performance is under heavy pressure. We maintain our forecast for the company's 2016-2018 EPS of 0.22/ 0.24/ 0.23 yuan, respectively. Maintain an increase in holdings rating and maintain the company's target price of 11.5 yuan for the next six months. The market anticipates the transformation of the company's education industry, but given the slow progress of state-owned enterprise reform, we believe that Cuiwei is unlikely to completely transform the education industry, and investors are advised to make careful judgments. Risk warning: The macroeconomic growth rate fell short of expectations, and high-end consumer demand fell short of expectations.