Event description Shinur (002485) published its 2013 semi-annual report. The main operating results are as follows: during the reporting period, the company achieved operating income of 621.203 million yuan, an increase of 12.10% over the previous year; and realized net profit of 53261,400 yuan, a year-on-year decrease of 29.41%. Basic earnings per share are $0.17. Incident review Revenue growth was steady, costs increased rapidly, and gross margin declined slightly. In the first half of 2013, the company's operating income increased by 12.10%. Among them, revenue in the second quarter increased 10%, a slight decrease from the 14% increase in the first quarter; the main reason was: the international economic recovery was weak, the domestic economic growth rate slowed, and terminal consumption continued to be sluggish; during the reporting period, the company's domestic sales fell 1.72% year on year, and foreign sales increased 104.44% year on year. However, production costs increased rapidly, resulting in a relatively rapid decline in gross margins for casual suits and trousers, down 14.56% and 11.24% respectively, while overall gross margin decreased 2.29% year on year. The period expense ratio increased due to the increase in the sales expense ratio. During the reporting period, the company's period expense ratio increased from 25.83% last year to 30.51%, of which the sales expense ratio increased from 20.67% in 2012 to 23.22% in 2013. The increase in sales expense ratio was mainly due to the company's opening of new stores, the company's marketing network terminal store leasing, depreciation, and employee remuneration during the reporting period. Net profit margin declined sharply In the first half of 2013, the company's net profit was 53.2614 million yuan, down 29% from 754.05 million yuan in the same period last year; net profit margin was 8.57%, down about 5% from 13.61% in the same period last year. Mainly the decline in gross margin and the increase in the period expense ratio. Accounts receivable grew rapidly in the first half of 2013. In the first half of 2013, the company's accounts receivable were 37,76525 million yuan, a significant increase from 198.34 million yuan in the same period last year. Maintaining the “prudent recommendation” rating, the company's 2013-2015 EPS is expected to be 0.52 yuan, 0.59 yuan, and 0.64 yuan, corresponding to current stock price valuations of 12.07 times, 10.64 times, and 9.8 times, maintaining the “prudent recommendation” rating.