Rakuten stores also reported a short-term impact on net profit. 2018Q1-Q3 achieved revenue of 8.296 billion yuan, a year-on-year increase of 6.88%, and net profit of 297 million yuan, an increase of 8.38% year-on-year. The main reason the company's net profit growth rate declined more than 2018 H1 compared to 2018H1 is that the acquired Rakuten projects have been merged since August 1. Since only a few stores reopened in the third quarter and business hours were short, the contribution to revenue was relatively small. At the same time, most of the original Lotte stores were closed. At the same time, various expenses such as rent and labor continued to occur during the closure period, and the loss amount for the original Lotte store continued to occur during the closure period. About 62.4 million yuan, which increased the company's period expense ratio by 1.99 percentage points over the same period last year. Excluding the influence of Lotte stores, the company's original regional stores achieved net profit of 360 million yuan in 2018Q1-Q3, an increase of 31.1% over the previous year. The original Lotte store continued to open after the renovation, and is expected to open 50 stores throughout the year. 2018Q3 has opened 20 new stores, 4 new convenience stores in the new Carrier Group, and has not closed stores. Of these, 18 are Liqun Times stores that were remodeled from the original Lotte stores in East China. In the fourth quarter, the company will continue with the original Lotte store opening plan, opening a total of about 50 original Lotte stores throughout the year. As of 2018Q3, the company had a total of 72 large retail stores, 60 convenience stores, and 13 “Fu Kee Farm” fresh food community stores. The gross margin of all business formats has increased steadily, with the supermarket sector accounting for the highest share. Looking at the main business of 2018Q3 according to the business format, department stores achieved revenue of 977 million yuan, a year-on-year increase of 9.6%, a gross profit ratio of 17.20%, an increase of 1.19 percentage points over the previous year, supermarkets achieved revenue of 1,257 billion yuan, a year-on-year increase of 21.01%, a gross profit margin of 18.21%, an increase of 3.67 percentage points over the previous year, and the home appliance industry achieved revenue of 263 million yuan, a year-on-year decrease of 20.65%, and a gross profit ratio of 14.82%, up 1.81 percentage points year-on-year. By region, the Shandong region achieved revenue of 2,356 billion yuan, a year-on-year increase of 4.22%, a gross profit margin of 18.01%, an increase of 3.11 percentage points over the previous year, and the East China region achieved revenue of 140 million yuan and a gross profit margin of 8.24%. The company achieved overall revenue of 2,496 billion yuan in the third quarter, an increase of 10.41% over the previous year, and a gross profit margin of 17.46%, an increase of 2.56 percentage points over the previous year. Profit forecast and valuation: The EPS for 2018-2020 is expected to be 0.52, 0.67, and 0.69 yuan/share, respectively, and the corresponding PE is 14.06X, 10.84X, and 10.55X respectively, giving it a “highly recommended” rating. Risk warning: the business conditions of stores in East China fall short of expectations; logistics base construction in Jiaozhou and Huai'an falls short of expectations; risk of inventory price decline;