Net profit for 2013 fell 65.6% year on year, in line with market expectations but 7% less than our expectations. Losses were higher than we anticipated, mainly due to inventory provisions and the closure of underperforming stores. Although we saw a gradual improvement in same-store sales growth from the second half of 2013, the recovery momentum in early 2014 was less than expected. Daphne expects a low double-digit decline in same-store sales in the first quarter of '14. Sales momentum appears weak. Strengthen marketing. The company appointed Jeon Ji-hyun, one of the most popular Korean entertainers in China recently, as the new Daphne brand ambassador. It is expected that in April, there will be a promotional event to promote products featuring all women's features. The new spokesperson will make the Daphne brand more differentiated, which is expected to boost sales volume and increase the average sales price by improving the sales mix. The “neutral” rating was maintained, but the target price was lowered to HK$3.74. Structural changes in the women's footwear industry continue. Industry leaders, including Belle and Daphne, respectively announced and guided weak sales data for the first quarter of 2014. It is still impossible to assert that the industry is recovering. We lowered our earnings per share in 2014 and 2015 by 1.8% and 10.5% to HK$0.310 and HK$0.356 per share, respectively. We lowered our target price from HK$3.98 to HK$3.74, corresponding to price-earnings ratios of 12.1 times and 10.5 times in 2014 and 2015 to reflect lower profit forecasts. We maintain the company's “neutral” rating.