In 2019, operating income decreased by 13.44% year on year, net profit decreased by 30.18% year on year in 2019, net profit of 6.248 billion yuan, a year-on-year decrease of 13.44%; realized net profit of 317 million yuan, a decrease of 30.18% over the previous year; and realized net profit of 304 million yuan, a decrease of 30.98% year on year. Performance fell short of expectations, mainly due to impairment preparations for Ningbo Europai's goodwill of 42.14 million yuan. The company plans to distribute a cash dividend of 0.25 yuan (tax included) for every 10 shares to all shareholders. The company expects net profit of 2799 to 39.68 million yuan in 1Q2020, down 83.23% to 76.05%. Looking at the quarterly split, 4Q2019 achieved operating income of 1,837 million yuan, a year-on-year decrease of 4.14%; realized net profit of 5.5 million yuan, compared to -39.52446 million yuan in the same period last year; and realized net profit after deduction of 17.8393 million yuan, compared to 231 million yuan in the same period last year. The consolidated gross margin decreased by 0.04 percentage points, and the period expense ratio increased by 2.63 percentage points, and the company's comprehensive gross margin in 2019 was 19.80%, down 0.04 percentage points from the previous year. The company's expenses for the period in 2019 were 18.28%, up 2.63 percentage points from the previous year. Among them, the sales/management/financial/R&D expense ratio was 7.28%/7.82%/3.04%/0.15%, respectively, up 0.37/ 1.10/1.01/0.15 percentage points from the previous year. The trend of differentiation in the revenue side of the business format continued. Exploring the preliminary situation online, the company's revenue side performance was lackluster during the reporting period. In addition to being affected by the real estate business, the company's main retail revenue also declined to a certain extent. Revenue from the department store retail sector also fell 8.95%. In terms of the same store segment, department store/specialty stores and same-store revenue fell 13.73%, while ole/shopping center sales were relatively good, and same-store revenue increased 8.82%. On the online side, the company's self-built platforms such as Youa Overseas Purchase and Youa WeChat Store achieved GMV of 110 million yuan, corresponding revenue of 84.2 million yuan; the GMV achieved by the holding subsidiary Oupaiyi to third-party platforms such as Temple Library and Xiaohongshu was 736 million yuan. The growth in the scale of the online platform is expected to lay the foundation for the company's subsequent omnichannel marketing layout. Lowering the profit forecast and maintaining the “increase in holdings” rating. Considering the impact of the department store industry on the epidemic and the company's disclosure of first-quarter guidelines, we lowered the company's EPS forecast for 2020-2021 to 0.16/ 0.22 yuan (previously 0.28/ 0.29 yuan), added a forecast of 0.23 yuan for 2022, and maintained the “increase in holdings” rating. Risk warning: Competition in the retail market in Hunan has intensified, and the cultivation period for new stores has been longer than expected.