The results for the first half of the year were in line with the forecast In the first half of 2015, revenue fell 6.3% and net profit fell 78.5%, in line with the forecast. Same-store sales fell 6.3% in the first half of the year, remaining weak. The sales growth rate of large integrated supermarkets, supermarkets, and convenience stores in the same store was -8/-3.78/ +0.88%, respectively. Two new large integrated supermarkets were opened, and 41 supermarkets and 57 convenience stores were closed (net change). Gross margin increased 0.6 percentage points to 15% year on year, mainly benefiting from commodity restructuring and lower procurement costs. However, the decline in supplier revenue led to a 0.5 percent drop in net interest rates. Change the general manager. Since August 28, 2015, Mr. Hua Guoping has ceased to be the company's general manager, and Mr. Lin Song has been appointed as the new general manager. Previously, Mr. Lin Song was the deputy general manager of Yonghui Supermarket E-commerce Company. Trends Weak performance reflects company inefficiency, particularly in the retail industry where demand is weak and competition is intense. The Lianhua supermarket is in urgent need of institutional reform. We think the change in the general manager's office is an important sign of system reform. With Yonghui's leading management capabilities, Lianhua Supermarkets is expected to benefit in the following areas: 1) increasing gross profit margins through integrated procurement; 2) improving operating profit margins through strict cost control. Valuation and recommendations maintain confidence in buying. The 2015/16 profit forecast was lowered from $77 million and $142 million to $12 million and $54 million. The target price was lowered by 19.8% to HK$8.1, based on 0.3 times the market sales rate in 2015. Risk costs have increased; synergies have fallen short of expectations.