The company's 2018 revenue increased 1.81% year on year. Net profit after deducting non-return to mother was 59 million yuan. On March 29, the company announced its 2018 annual report. In 2018, it achieved revenue of 13.240 billion yuan, an increase of 1.81% year on year. Achieved net profit of 46 million yuan, which translates into fully diluted EPS of 0.09 yuan, a year-on-year decrease of 5.82%. Achieved net profit of 59 million yuan after deduction, an increase of 291.62% over the previous year. Looking at the single-quarter split, 4Q2018 revenue increased 7.25% year over year, while 3Q2018 revenue decreased 2.86% year over year. The performance was in line with expectations. The main reason for the year-on-year decline in net profit due to Weihai Leyuan Real Estate Co., Ltd. litigating the company's lease contract dispute, the company withheld 53 million yuan in liquidated damages based on the court ruling in the first instance, resulting in a decrease of 40 million yuan in net profit. The gross margin increased by 0.48 percentage points in 2018, and the expense ratio decreased by 0.43 percentage points. The company's comprehensive gross margin in 2018 was 19.37%, up 0.48 percentage points from the same period last year. The company's expense ratio for the 2018 period was 16.59%, down 0.43 percentage points from the same period last year. Among them, the sales/management/ finance expenses ratio was 12.75%/2.18%/1.66%, respectively, down 0.03/ 0.20/ 0.19 percentage points from the same period last year. Looking at the single-quarter split, 4Q2018's comprehensive gross margin increased 0.58 percentage points over the same period of the previous year, and the cost ratio for the period decreased by 3.23 percentage points compared to the same period last year. The leading retail company in Shandong Province, with a rich business format and a large number of stores, is a large-scale commercial retail enterprise based in Shandong, covering the three business formats of department stores, large integrated supermarkets, and shopping centers. By the end of 2018, the company had 133 stores (including 26 stores in Linqu Huaxing Mall in Weifang), covering 12 cities in Shandong Province and 3 cities in Shijiazhuang, Baoding, and Zhangjiakou in Hebei. In addition, the company was entrusted with managing 49 unlisted stores under Shandong Ginza Mall Co., Ltd. Due to the intense competition in the retail market in Shandong Province, many large retail companies such as Liqun and Jiajiayue have strong operating capabilities, making it difficult for the company's market share to increase rapidly in the short term. Maintaining the profit forecast, the cost and expense control effect of the company was gradually showing signs of recovery on the revenue side. We maintained the company's EPS forecast for 2019-2020 at 0.10/0.10 yuan, respectively, and added a forecast of 0.11 yuan for the company's EPS for 2021. Currently, the company's PB (2019E) is 1.0X, which is significantly lower than the average of the past three years (1.4X), and PS (2019E) is 0.22X, which is significantly lower than the average of the past three years (0.31X), and has been raised to an “overweight” rating. Risk warning: The retail industry in Shandong Province is fiercely competitive, and the risk of cross-regional expansion