The company released the 2017 interim report. Net profit increased 12.95% year on year on the evening of August 24. The company released the 2017 mid-year report. 1H2017 achieved operating income of 5.745 billion yuan, up 53.88% year on year. The large increase on the revenue side was mainly due to the completion of a series of acquisitions last year, which led to differences in merger coverage during the reporting period and the same period last year. Excluding the impact of acquisitions, the original store's 1H2017 revenue increased by 0.41% year on year; achieving net profit of 380 million yuan, up 12.95% year on year, equivalent to overall dilution of EPS 0.22 Yuan; achieved net profit of 379 million yuan after deducting non-reimbursable net profit, an increase of 74.03% over the previous year. The company's performance was in line with our expectations. Looking at the company's revenue by business format, department stores, supermarkets, olai/shopping centers achieved revenue of 44.07/4.48/0.16/ 206 million yuan respectively. Looking at the quarterly split, 2Q2017 achieved operating income of 2,613 billion yuan, a year-on-year increase of 34.07%, a growth rate lower than 75.53% in 1Q2017; realized net profit of 182 million yuan, an increase of 12.93% over the previous year, and a growth rate slightly lower than 12.96% in 1Q2017. The consolidated gross margin increased by 0.56 percentage points, and the period expense ratio increased 2.42 percentage points year on year. 1H2017, the company's consolidated gross margin was 27.08%, up 0.56 percentage points from the same period last year. By business format, the gross margins of department stores, supermarkets, olai/shopping centers were 19.27%/15.2%/18.59%/71.57%, respectively, with year-on-year changes of -0.94/ -0.07/ -0.53/ 60.44 percentage points. The 1H2017 company's period expense ratio was 15.79%, up 2.42 percentage points from the same period last year. Among them, the sales/management/finance share was 10.73%/2.16%/2.90%, respectively, a year-on-year change of 0.35/ 1.19/ 0.88 percentage points. The regional market has strong influence. Multiple business formats collaborate to promote future growth. The company currently has 37 stores in various business formats. The company closed one supermarket store located in Hohhot (International Plaza Store) during the reporting period. In 2016, the company acquired two major brands, “Renhe Spring” and “Victoria,” enhancing its influence in the regional market. The company is promoting the upgrading of existing stores to further improve the consumer shopping experience. Currently, the company has various business formats such as department stores, integrated supermarkets, shopping centers, and Ole. The brand covers a wide range of brands and can meet the needs of consumers at different levels. Maintaining profit forecasts and holdings growth ratings We maintain our forecast for the company's fully diluted EPS in 2017-2019 of 0.37/ 0.41/ 0.44 yuan, respectively, and maintain the increase in holdings rating. Risks suggest that the growth rate of the regional economy falls short of expectations, and the integration of newly acquired stores falls short of expectations.