On the evening of January 25, the company paid 403 million yuan in cash to acquire 100% of the shares in Chongqing Maoye. On the evening of January 25, the company issued a “Notice on the Purchase of Assets and Related Transactions”. It intends to acquire Chongqing Maoye Co., Ltd., which holds a total of 100% of the shares, from the related parties Maoye Department Store (China) Co., Ltd. and Zhongzhao Investment Management Co., Ltd. by paying 403 million yuan in cash. Maoye Department Store (China) is the controlling shareholder of Maoye Commercial Building, the controlling shareholder of the company, while Zhongzhao Investment is a related legal entity under the same control of the company, so this transaction constitutes a related transaction. Chongqing Maoye positioned itself as a high-end, or began contributing profits to the company in 2018. Maoye Department Store (China) and Zhongzhao Investment promised. For example, if this transaction was completed from January 1 to December 31, 2018, Chongqing Maoye's estimated net profit for 2018-2020 will not be less than 2786.19/ 3026.12/ 32.5098 million yuan, respectively. Based on the company's total share capital of 1,732 million shares on the announcement date, if the promise is fulfilled, Chongqing Maoye will contribute 0.016/ 0.017/0.019 yuan of EPS to the company in 2018-2020. Chongqing Maoye has 1 department store and is located in the Guanyinqiao business district. It is positioned as a high-end department store. The target customer base is mainly consumers who pursue quality of life and have a high level of brand awareness. Chongqing Maoye achieved net profit of 3073/22.78 million yuan from January to October 2016/2017, respectively. The local business area has been further expanded. Short-term digestion and integration is aimed at the company completing the previous acquisitions of Renhe and Victoria, and basically completing a multi-regional and multi-format layout. The acquisition of Chongqing Maoye has further expanded the company's business scope, and increased revenue and profitability. We believe that the future development direction of the company will be mainly internal digestion and integration. As the transformation and upgrading of existing stores continues to advance, the company's profitability may further improve. Upgrading the profit forecast and maintaining the increase in holdings rating. Considering Chongqing Maoye's contribution to the company's net profit, we raised the company's 2017-2019 EPS forecast to 0.39/ 0.44/0.48 yuan (previously 0.39/ 0.43/0.46 yuan), respectively, in accordance with the performance commitment, and maintained the increase in holdings rating. Risks suggest that the growth rate of the regional economy falls short of expectations, that the integration of purchased stores falls short of expectations, and that monetary and cash pressure is rising.