Distinguished investors and media friends, good morning. I would like to welcome you to attend the Vanke 2021 interim result announcement. We're going to have the online streaming and the teleconference for this meeting. Please just go to our official website, Yixuanfang Mini app and the quanshi.com to join us for this meeting. Well, right before the interim result announcement starts, please allow me to introduce you our management team representatives. They are our Chairman and CEO, Mr. Zhu Jiusheng, our Executive Vice President, Mr. Liu Xiao. I'm the Board Secretary. My name is Zhu Xu. Well, we are going to have two parts of this meeting. First of all, I'm going to, on behalf of the company, walk you through the interim results. Later, we're going to welcome our management team to share with you some of the operational highlights and answer your questions. Well, for this interim result, we have a result review, financial review, operation review, and future prospects. You can see that all the background information and the pictures being taken from our rental housing business, the Port Apartment. This is our Cloud City Shenzhen, and with 330 rooms. On this picture, you can also clearly see that these are the community music festival along with the residents of the Port Apartment project, and which can actually provide the human touch to our residents of Port Apartment. Please allow me to walk you through the operational highlights. This is also another picture in showing the Chengshou Temple community we have in Beijing. It is also a Port Apartment. It's the first market-oriented collective land to build the long-term rental apartments in China, which has built five themed rooms for fitness, girls, pets, SOHO, and living broadcast. This collective land projects being rolled out in Beijing gradually. It can also help to take care of the demand from the market, and also help to stabilize the rental fees in the market. Please go to slide four. On slide four, we provide you the result overview. You can see our sales size is CNY 335.4 billion, up by 10.6%. Revenue is CNY 167.1 billion, up by 40.2%. Net profit attributable to Vanke equity holding is CNY 11.1 billion, down by 11.7%, is because of the reduced in the profitability of the property development projects. You can see that our profitability before tax was also down by 6% YoY 2019. The contracted sale of the project sold but not yet booked is CNY 781.9 billion, up by 12%. Our net gearing ratio is still 20.2%. The gearing ratio excluding recipients of the prepayments is 69.7%. Cash to short-term debt ratio is 1.67. Our overseas credit rating is still the leading one in the market. In H1 of this year, we have 95 newly developed projects with total GFA of 50.06 million sq m. Last year, we are ranking 160s in the Fortune 500, up by 48 positions. Regarding the non-property development business for the retail housing, we have 148,000 stores in operation, ranking number one in China. Our average occupancy rate is more than 95%. The consolidated NPS in H1 of this year is already 85%. You can see our H1 revenue is CNY 10.38 billion, and also logistics and warehouses, the revenue from the managed project is CNY 1.34 billion, up by 64%, where we are now serving many of the unicorn companies and the tech companies. You can see that we have already penetrated into more than 21 cities with 31 projects. Regarding the retail property development operations, we are also developing very robust. For logistics and warehousing, we have a revenue managed project of CNY 1.34 billion and up by 64%, and we are also getting to the medical logistics as well as other services. Regarding the retail property development and operation, and the accumulated GFA is 9.89 billion, and the occupancy rate for project more than three years is 93.9%. Please go to next slide. This is our Nantou Ancient City project of the Port Apartment. It was located in Nantou Ancient Town with a history of 1,700 years. It is also a micro-renovation project to the old city in cooperation with Nantou District Government. Jointly speaking, it provides a lot of units for the rental services, which can help to change the original ecological system and the chaotic space and the single industry which were there before. Well, let's come to next slide six. We maintain a sound financial policies for a long-term period of the time. Our cash on hand is CNY 195.2 billion, 2.3 x of the short-term interest-bearing liabilities. You can see that we still have a very good development. Our net gearing ratio is 20.2%, remain under 40% for 20 consecutive years. The interest-bearing liability is CNY 268.7 billion, accounting for 30.7% of the total assets. Interest-bearing liability due over 1 year accounted for 68.6%. Still bank borrowing and bond are the major way for the interest-bearing liability structures. 74.6% from domestic and 25.4% from overseas. 58 are floating interest rate and 42 are fixed interest rate. Let's go to slide seven, where we also maintain a leading credit rating and a low financing cost in the industry continuously. For Moody's, we have the Baa1 rating. S&P Global, we have a BBB+. For CCXI, you can see that we still maintain a AAA rating. We are all being recommended as stable operation. I think many of you may worry about the so-called threshold criteria, we are still ranking at a green tier requirement. You can see our comprehensive financing cost was 4.27%, down by 32 basis points YoY. Coming next, please come to slide 8. On slide eight, the backdrop is the Shilu community of Port Apartment in Suzhou. It won a lot of international design awards. It's also been regarded as the most beautiful Port Apartment project, which inherited the Jiangnan development philosophy and elements, also create more cultural value into the old Suzhou district for Suzhou City. Coming to slide nine, I would like to share with you the property development business. The total sales reached CNY 354.43 billion, up by 10.6% YoY. The average selling price is CNY 60,171.5 per square meters. You can see newly commenced construction area reached 17.48 million sq m, down by 4.8% YoY. It actually represent 55.5% of the plan at the beginning of this year. Completed floor area reached 12.25 million sq m, up by 40%, represent 34.2% of the plan at the beginning of this year. You can see that we're ranked as the top three in 38 cities, ranking number one in 90 cities, ranking two in 70 cities, and ranking number three in two cities. Let's go to slide 10. On slide 10, the realized recognized area, and also our property development sold but not recognized amount, reached CNY 781.91 billion, increased by 12% in the beginning of 2021. We realized recognized area of 11.15 million sq m, up by 6.2%, and realized recognized income of CNY 144.60 billion, up by 11.9%. Sold but not recognized contracted amount in the consolidated statement was CNY 781.91 billion, up by 12%. Operating profit margin before tax is 24.9%. We still maintain a rational investment, with many resources to meet the future needs of the development. Adhering to the rational investment, and the new investment, 92% of them are located in the first and second-tier cities. Newly acquired GFA is 50.06 million sq m. Planned GFA of the new projects attributable to our Vanke equity holdings, 11.01 million sq m. Total land price is CNY 112.63 billion. Average land price of newly projects is CNY 7,480 per sq m. The total GFA under construction and planning is 160.66 million sq m, among which under construction is 112.83 million. The GFA for the projects under planning was 47.83 million sq m, still meeting our future requirement. On the right side, we show you proportion of the land price, including the southern region, Shanghai, Beijing. Please go to slide 11. Now I'm going to report to you on the rental housing business. In H1 of this year, we still maintain the first in the country in terms of the scales of the centralized apartment. We penetrated into 33 cities. We rank in top three in 24 cities, rank in top one in nine cities. Jointly speaking, we have 6,139 units commenced opening in 16 major cities. Jointly speaking, in 33 cities, we have total 192,000 units in operation, the operating income is CNY 1.32 billion, up by 25.6%. The occupancy rate in operation is 95%. We also actively participate in the formulation of the standard and contribute our voice to the industrial development. We also have a high customer satisfaction, which jointly served 510,000 customers. The NPS reached 85% in H1 of this year, and the lease rental renew rate is 58%. We built a 24-hour youth innovation and ecological community to empower talent growth. Working with the local community, we also built the Port Apartment Running Club, Port Apartment Interest Community, Port and Friend Volunteers, and we also have a public lecture of HKU Institute for China Business to empower talents in multiple aspects. We are also working with community KOLs and Port Friends to organize several activities like reading, yoga, and concert to help to build the synergy of our community. Please go to slide 30. Regarding rental housing business, we also started to work with the government board in order to contribute to retaining the talents with providing them the warm rental life. We have already provided over 30,000 talent rooms. In Shanghai, Beijing, Shenzhen, Jinan, Ningbo, we are working with the local government to help to build the youth station to make sure that more local young people will be able to enjoy good housing. The Port Apartment also won the 2020-2021 Annual Strength Benchmark Award. We will also be awarded with the Youth Civilization and Shenzhen Youth May 5th Medal of the Shenzhen Port Apartment. We also started to work with 166 well-known enterprises covering industries, finance, technology, manufacturing, and constructions, and providing one-stop living service to nearly 35,000 employees. Please go to slide 14. For rental housing business, it has already have collective construction land rental community, self-owned land construction rental housing, urban village joint operation transformation and operation, and government rental housing construction and management, light asset CP, EPC+O business model. You can see Beijing Port Apartment, Chengshou Temple Community, Shenzhen Port Apartment, Cloud City Flagship Store, Shenzhen Port Apartment, Nantou Ancient City, and the Jinan Port Apartment, Dingjiazhuang Talent Apartment also greatly established. We also established close relationship with SOE and other big enterprises in Shenzhen, Chengdu, Jinan, Changchun to acquire 6,700 new properties in H1 of this year. Regarding Onewo, the revenue reached CNY 10.38 billion, up by 33%. You can take a look at the branch tree on the right side. We take one step further, we launched a new product named Wanyu Securepro. In the middle side, you can also see that in the revenue structure, residential property service still represent 55%, commercial property and facility service 31%, which means we have a diversified business mix. Please go to slide 16. On slide 16, we show you the Onshore Community Space Service. We jointly serve 3,490 projects in 105 cities, especially Pulin Development, the real estate brokerage system under Onewo, record 647 increase in new house sales over the same period of last year. Pulin Development has already entered into strategic operation with Guangxin Properties, also provide branding and technical support to Guangxin Properties. Vanke also started to make sure our service range of property service been further expanded from the after-sale stage to the signing stage. We have already certified 887 frontline property service managers to provide the full circle service. Also we provide special actions for Beautiful Community Special Action to cater customer needs. You can see from the picture for some old communities which has been renewed by our Beautiful Community Special Action to provide a high living quality to our customer. Now let's go to page 17. Also for Onewo, we focus to make in-depth integration of technology and property management to facilitate front-end operation and remotely. Onewo refined and settled 30 years of experience residential properties into business processes, and we now have 2,000 projects under management are going through online operation. On the 1st of July 2021, the Wuhan Digital Operation Center building of Onewo was officially opened for use, and the technology and services to be provided in the future will cover more than 10 million customers. Onewo will build machine plus people, space, intelligence solution capability, and promote the structural transformation of on-site services from labor intensive to mechanization intelligence. Also you can see the picture on the right. On page 18, in terms of Retail business is where we release an integration and utilize the brand advantage of Cushman & Wakefield and Vanke Service. We serve more than 1,100 corporate service projects. We serve more than 15 leading internet technology enterprises and unicorns, including Alibaba, Tencent, ByteDance, Baidu, JD.com, NetEase, et cetera. Among which more than 20 enterprises had a market value of more than $10 billion out of the 10 internet enterprises in China in terms of market value, and eight of them had become customers of our Cushman & Wakefield. New added ultra-high-rises projects in first half of 2021, such as the Jinan North South projects. These were shown as below. Now page 19. In terms of the comprehensive governance integration urban services, we set our foot in 21 cities and regions. We provide urban service integration service, including urban space management, community renewal operation, community collaborative governance, and ecological housekeeping services. We cover 21 cities, including Beijing, Shenzhen, Guangzhou, and Xiongan New Area. In the first half of the year, 11 new projects were acquired, and 31 projects were acquired in total. Fubao Street Office in Shenzhen, served by City Up. You can see that it was ranked number one in the environmental assessment for three consecutive months, and the Shatou Street Office was also served by City Up, reached an average ranking of 13 this year from the average ranking of 41 last year. Now let's go to page 20. Here I will talk more about retail property development and operations. In the first half of this year, we have three shopping centers commenced smoothly. You can see the picture on the right-hand side, Chengdu Incity, Huizhou Incity, and the Shanghai Caohejing Incity. We have an aggregate of about 0.31 million sq m, including three shopping malls. The revenue from retail segment property business amounted to CNY 3.63 billion, representing YoY increase of 19%, while revenue from SCPG retail part amounted to CNY 2.45 billion, representing an increase of 21.6%. Occupancy rate was stable. The overall occupancy rate of the project in operation was 92.3%, and the average occupancy rate of the top 10 revenue projects in the first half of this year was 98.5%. Digital upgrade and enhancement of operation management levels. The digital membership operation system covers 64 projects, and the number of SCPG members reached nearly 12 million, and monthly active members reached 2 million with a YoY increase of 83%. We strengthened online and offline diversified interaction. SCPG launched its in-store factory label, made its online debut in Xixi, Chengdu held its Blue Plus Blue Art Space to create a platform for interaction. Let's go to page 21. On this page, I will talk more about the retail business of the age of the shopping malls and area of the shopping malls, and the shopping malls that are going to be planned in the second half of this year. For example, in Hangzhou Outlets, Wenzhou Incity MEGA, Shanghai Songjiang Incity, Shanghai Jinjiang new shopping mall, et cetera. Let's go to page 22. This page, we'll talk more about logistics and warehousing sort of businesses. The aggregate GFA of projects in operation is 7.97 million sq m, revenue increased to 64% YoY. Revenue from management projects, including non-consolidated items, amounted to CNY 1.34 billion, representing YoY increase of 64%. Also, we managed a total of 148 projects in 44 major cities nationwide, serving more than 1,100 clients. We have the total GFA projects in operation was 9.97 million sq m, of which the operating area of high standard warehouses is 7.58 million sq m, the occupancy rate was 94%. Operating area of cold storage was 0.41 million sq m, stable utilization rate was 68%. Also, Vanke Logistics entered a strategic cooperation agreement with All-China Federation of Supply and Marketing Cooperatives to establish a supply chain service capability for agricultural products. Now let's go to page 23, here we're going to talk about the projects in Yizhuang, Beijing. For these projects, we will use automation design in the warehouse to achieve unmanned management through transmission via shelves. According to the highest standard of vaccine safety storage and time of demand, the business team spent only 68 days to transform the property into a vaccine warehouse, which satisfy requirements of Sinopharm and the CFDA's GMP certification. Now let's go to page 24. Here we showed what we've done in terms of social responsibility, and we know that in Zhengzhou, there was a big storm and flood there. Vanke has made a donation of CNY 50 million to Red Cross Society of Henan in the 2021 on the 21st July after this disaster. We try our best to protect the safety our homeowners and to ensure the projects running smoothly. Now let's go to page 25. At the same time, we will continue to actively respond to state strategic plan to consolidate achievements in poverty alleviation, rural revitalization. In June 2021, the company participated in Guangdong Province and Shenzhen City 630 Relief Day and offered to donate CNY 200 million to the ethnic minority areas. Vanke created a multi-town contiguous village revitalization demonstration belt along the Ruhui Highway with the objective of building the most beautiful corridor for co-living. Let's go to page 26. For this page, this is a project in Beijing, also from Port Apartments in Gaoli Drone Community. It is a collection of a vibrant commercial street, diversified office buildings, and more than 3,300 high-quality long-term rental apartments. The line of this Port Apartments is collectively owned, which is also an upgraded version of Jinsong Community Port project in Beijing. I will talk about our strategy of business for 2021 H2 on page 27. On the second half of this year, our goal is to make steady steps towards long-term objectives. Financial discipline is the bottom line and foundation. We will adhere to financial discipline, and we strictly comply with the requirement of three red lines and other regulatory policies and continuously stay in a green threshold, maintain an industry-leading credit ratings, implement a sound financing strategy, rationally control the total amount, make the structure more secure, and maintain flexibility. Adhere to prudence investment strategy, keeping expenditure within the limits of revenue. Now let's go to page 28. While we are sticking to our discipline, we will clarify our objectives. In terms of the industry, the housing will return to consumption attributes, reducing the burden of people's livelihood and develop in a balanced manner within the real economy. From the perspective of city, the requirements for spatial functions have been extended to a series of goals, such as urban interface improvement, industrial development, infrastructure improvement, public service improvement, and ecological conservation. From the perspective customers, the function of real estate caring has been expanded from a purchase to lease, from residence to consumption, leisure, entertainment, life service, health, elderly care, et cetera. Vanke's overall business strategy is in view of the profound changes in the industry, city, and customers, Vanke will accelerate the transformation from focusing on real estate development to quality emphasize on real estate development, operational services. Each business must consolidate and enhance its own basic fundamentals. Now let's go to page 29. Specifically for each businesses, we have different strategy. In terms of a property development business, leveraging the overall advantage of the group, organizing professional training and the communications, benchmarking with representative products, integrating product standards, and products realization capability of more regions, achieving high quality and stable mass production, implementing hierarchical and categorized management of projects. Then we will focus on key locations to achieve the projects in Shenzhen, Nanjing, Chengdu, Changchun, Jinan, et cetera. In terms of we will release the integration and the brand advantage of a Cushman & Wakefield Vanke Service, and further expanding this market share of high-end commercial properties, fully understand the residential property as a livelihood industry, consolidate the supervision capabilities of a remote plus on-site combination, and further improving service quality, packaging rental, buy, sell, decoration and home furnishing businesses. In terms of the logistics and warehousing services, we will continue to improve the warehouse network of a high standard warehouse and co-storage in major logistical cities across country. A complete breakthrough from warehouse operation services to overall supply chain solutions in the field of chain catering and supermarket retail. In terms of retail property development operation, we will learn from outstanding peers to improve the project operation management. Review the opening of new projects in the past and deploy forces to ensure the successful opening of new projects such as Hangzhou Olympic Sports Incity, Wenzhou Incity MEGA, Shanghai Songjiang Incity, and explore and practice the upgrading and renovation of all projects, and complete the renovation of the opening of first phase of Tianjin Heping Incity. Let's go to page 30. Here on this picture. Is a new project, International Port Apartments, going to be launched in Chengdu. It is a high-end long-term rental project. It's located in the heart of Chengdu CBD, the north tower of the 280-meter online celebrity landmark, Tianfu Twin Towers. With the product's concept of high-quality living space, high-end exclusive services and home products, and safety. The apartments are launched in large 3-bedroom spaces. This is going to be launched in the second half. Also in appendix, we provided consolidated statement of a P&L and balance sheet, et cetera. We won't go through that, everyone. That's so much from my introduction. Coming next, let's get into the QA session of the meeting. Please help to first report the notice to people who are going to be joining. For those who would like to raise questions, please press button star and press button one. You are allowed to raise questions. Please. Now we have 27 people who are in queue for the QA. Only two questions for each investor. Let's welcome Zhang Yu from CICC first. Okay. Thank you. Thanks for Madame Zhu for your introduction and the presentation. My name is Zhang Yu from CICC. I have two small questions. The questions relating to the financial performance. You can see that, for last H1, you have the net profit decrease on year-on-year basis. I think that was in 2018 during the financial crisis. Now you started to again encounter the half-year net profit decrease. I think there's a big concern in the market. It also seems that the share price reflected the concern of the market. May I know why we have such a weak net profit attributable to the Vanke equity holding? Would you mind to share with us the reason? Is it because of some short-term factors that are actually impacting the net profit? My follow-up question on the first question that's regarding the future prospects. We talk about the three red lines from the government, which actually provide more growth for the company, especially the long-term growth for the well-performed companies in this market. According to the financials, you can see for the other green tier enterprises in the company, they also have a very strong mid and long-term development. For example, for China Resources, they said, and they're going to have a 50% annualized growth, where for Longfor, they said that they're going to have 15%-20% of the net profit attributable to the parent company. At the same time, for Vanke, as a leading company in the property development industry, you have a robust performance in your track record. Can the management team also provide us some guidance on the mid and long-term development? That's the questions regarding the profitability. Thank you. Thanks for Zhang Yu from CICC. You have two questions. The first question, you are asking us to explain why the net profit attributable to the Vanke equity holding was down, and you also want us to provide the long-term and mid-term guidance. Yes. Thank you. Thanks for Mr. Zhang from CICC. Well, I'd like to share with you some of my feelings. It's like that my interim exam result is coming out, and now I'm reviewing my performance in front of my teachers. How should I tell you the reason? I feel uneasy in my mind. I will always bear in my mind that I still want to be a good student and a well-performed student in the classroom. Just let me respond to your two questions specifically regarding the decrease in net profit. You say that it was decreased by a double-digit number compared with 2020. The year-on-year decrease is close to 11.7% for the net profit attributable to the Vanke equity holdings. I think there are a few reasons. First of all, we have a limited sales size growth, and we also see a faster decrease of the GP margin. Also, there are some of the impact from the upgrading and transforming business model. For the past few years, our property development business growth was pretty limited. You can see that for this year, our revenue was also growing by 40.2% compared with other peers, probably we say we are at the low growth end, where at the same time, our net profit was also down. You can see that regarding all the sales price, you can see the land prices, they are ticking up a lot, especially from 2017 to 2020. The land price to the total sales was up by 70%. These were also being gradually show in the future revenues and the sales size. You can see that for this year, compared with the same period of 2020, our interim GP margin was down from 24% after tax to 18% after tax. Before tax, it was decreased from 32%- 23%. That's the GP margin before and after tax. You can say that our sales increase is having some limited hedging performance over the decreased GP margin, and which is not enough to help to hedge the ever-decreasing GP margin. This is the second reason. I think the third reason is because, as what you mentioned in the follow-up question, compared with other peers in the industry. For other peers in the industry, it seems that they have a very good performance in H1 of this year. Sometimes we're benchmarking ourselves with them regarding the sales size, sometimes benchmarking profitability, and sometimes benchmarking the ability for transformation and upgrading, and some of the capacity of benchmarking for the future oriented development. The two peers you mentioned in your question really has a lot of things that we need to learn from them. Regarding the third reason is that you see that some of the result from our business transformation has not yet been shown in our financial performance, or it really takes time to be further shown there. If you know that from 2014, and we started to expand our business from property development to property service and property operation. Property development, property service, and property operation, they were being given the same weight. People said it's all real estate industry, but you can see the logic between the three business lines are so different from each other. We are also in the same period of time, and we also have some real estate investment business. We also have a very stable accounting rules being adopted. It actually helped to bring a lot of amortization and also the dilutions to our financial performance. Actually, it really takes time for the result to be shown in our performance. If we review what was happening for the past few years, I think for our property operation and property service, these two new business lines or new business tracks, and I think still a lot of lessons need to be learned from our performance in the past few years. You see that especially for the times being invested in both business tracks, the difficulties we met there and the capacity need to be built in both business tracks has actually been underestimated by us. If we review our performance for property service and property operation, you see that at the very beginning, we have a too positive attitude, but now we should also review how should we double our efforts in both business tracks. While regarding the property operation, and you can say that in overseas countries, this industry has been there for more than 100 years, but now time is different, industrial need is different. To some extent, they are all emerging and new business. We still need to find the best and the premier solution in supporting this business line development. As I used to say, we underestimated some of the factors in this industry. Now we learned the lesson and we find out it's not easy to build the capacity in the property operation and property service business tracks. You see the opportunities and the challenges are all there in both tracks. If we can truly build our capacity and find the solution in both business tracks, you say that in the mid and the longer term, and our capacity in both business tracks would be very valuable. My third point on the business transformation is that we should also change our view on the business contribution that the transformative business are doing. Even if you know we are doing very well on each business lines and the business tracks, but how they're going to contribute to the sale size and the profits, they still have a very limited contribution. Probably they are just helping to further enhance our enterprise's value and our mid and long-term evaluation, but not contributing that much to the sales size and profitability. These are the three reasons why our interim result, especially as you can see, the net profits attributable to the Vanke equity holding was down by close to 12%. Coming to your second question, is it possible for us to show you mid and long-term guidance or the growth logic? Surely there is. As far as I can say that for the whole industry, the gaming rule is now changing. Also our development philosophy need to be also adjusted according to the ever-changing market. If we purely seek for the growing sales size and the business growth speed, that's not going to sustain our business in the long run. Besides of having some independent review, we are also learning from the well-performed peers in this market. Where you can say for Vanke, for so many years, we are the company stick to the long-term development. Still, we have a saying that we need to steady steps towards long-term objectives, and steady growth and steady business operations, they are the key for us to embrace. The sales size and the business growth rate are not the only two targets for us. We still like to make a balance between the risks and the return, and also between the sales size and the business growth speed. We still, as I said, believe that steady growth would be our major topic, because in 2018, during the financial crisis, and we believe surviving this market is a key. You need to make sure that you have a very safe operation to guarantee the survival of your business in this market, and also taking our responsibilities to respond to what's needed by the market. Our evaluation is already more than CNY 500 billion, so we need to take a more comprehensive analysis of the business development. Well, regarding the business size growth, we always believe we need to build our capacity first, and then to seek for a bigger sales size. If in any new city, we are not building enough capacity, but purely seeking for a growing sales size there, that not going to be sustaining our business in the longer run. Another point is that we would like to become a solution provider for beautiful life and high quality life to our residents. We would like to join hands with our customer for co-growth and co-development. That's also the reason we need to have a long-term perspective in consolidating our capacity building. Regarding how many business tracks we're going to take in the near future, and we're going to work with the city, and I think different peers in this industry may have different practice. The overarching ideology is that all the peers in this industry are still expanding their business size, and we can learn from each other for sure. It seems that we need to learn more from our peers for their best practice in this market. It's easy for us to give some words verbally, and it is always also easy to find the reason, but I think more importantly, we need to take actions to spare more efforts to truly translate what's being said into real actions in the mid and longer term. I think our operation team of Vanke still are going to take more efforts to change our operational philosophy to respond to the market changing needs, and then to sustain our business. In the final slide made by Madam Zhu, in different business lines, business tracks, we have already made our business strategies there for the mid and the long-term development. Due to the time reason, I think I won't elaborate on the specific actions and efforts we're going to make. After this meeting, in our IR event and in the further small meetings, we're going to give you more specifics in this regard. I'm not sure, Mr. Zhang, whether you're happy with my answer or not. Thank you, Mr. Zhu. Thank you for your answer. Okay. Let's welcome a journalist from The Paper. Hello? Good morning, management team. My question is that the real estate market industry has many regulations, for example, the limits on land buying. What's your view on the real estate industry's development? Thank you for your question. You care about the regulations on the industry, and you want to know the impact on our industry, right? Yes. I'll give the floor to Mr. Zhu. Actually, since the 19th Conference of CPC, or actually since 2017, the regulation policies has been there, although they have different forms. The key message is that houses used for living instead of for speculation and equal rights for home tenants and owners. I think this theme was very clear and stable. Right now, the regulation policies right now we see is still centered around these key points. The enterprises, companies in this industry may not have better understanding than you, than financial institutions on the policies, because policies are there publicly for us to obey. The main thing, the main tone is being very clear, is very consistent. For us, for companies who's working in this industry, it's then easier to obey and make arrangements. We have been obeying the rules and policies, and you mentioned the three red lines as well. We never break those red lines and then keep ourself in the green threshold for the long term, keep good credit rating and good liquidity, and these are the priority when we are considering our work. This is how we seek for stable growth and for steady progress. Our idea is always that we are peasants. We cannot predict the weather, what we need to do is just to do our job well, to crop the lands well. Since we are farmers, of course, business will always depends on the weather, depends on the market situation. That's inevitable, we will do our best to make adjustment to market environment, and to policy, and to harvest more. Make progresses and growth to satisfy every stakeholder. Okay, thank you. Now let's welcome the next question. Now let's welcome Mr. Guo from Guangfa Securities. Thank you. I'm from Guangfa Securities. Mr. Jiang has answered the question in every aspect, and me myself particularly pay attention to development business, and I think your competitiveness in this area has been proved. The concentration land supply have seen new policies rolled out. What's your view on the resource competition in core cities, and what's your attitude of competition in terms of the second batch of collective land supply? Also another question, in for investment, we kept a quite good of a stable pace. In the future, whether you will increase your investment on new incremental projects to increase your investment efforts? Thank you for your question. Your question centered around these new rules on the collective land supply and the impact. Vanke's attitude for that in the key cities, and when Vanke will increase our investment effort. Is that right? Yeah. Mr. Zhu. I think Mr. Liu Xiao will answer your question. Okay, thank you for your question. Actually, for these new rules, for the two concentration, they are new things. The concentration lands of a land supply. We are also making adjustments to accommodate these new rules. In the first batch, actually in Changchun and other city that's in the second batch, we are accumulating experiences at the same time. I think the starting point of the policy is to facilitate the healthy growth of the industry. As Mr. Zhu mentioned, we are farmers. We won't predict the weather. For Vanke, we won't predict too much about the second batch of the land supply, and we will keep our policy of a steady and precaution investment. Steady steps towards a long-term objective. That's going to be our major tone. We will be strategy-oriented and stick to our investment discipline. Of course, we will focus on the quality of investment and efficiency of investment. I think by doing all that I've mentioned above, we will achieve long-term goals. Thank you. Thank you for your question. Now let's get in the next question. Thank you for your question. You mentioned that the cooperation between Vanke and Hengda, is that correct? Is that true? Also the purchase or acquisition of Tahoe Group, is that true? How that will going to end, right? Thank you. Thank you for your question. For Evergrande, we've accumulated cooperation in different projects. We have been in touch with them several times, and we also have a lot of discussions with them. Right now, we haven't made actual steps in terms of cooperation with him. This is about Evergrande in terms of Tahoe Group. There is a task force, a small team that's been keeping in touch with them providing suggestions for them to help them to grow. In terms of acquisition, maybe as friends from media, maybe you think there's a lot of rumors, but actually, for this industry, we think we should do something that's helpful, beneficial for the whole industry, no matter it is peers or all kind of peers it is, we have been made contact with them, cooperation with them. For Vanke, all projects, if in terms of the number, I think 70% of them have in cooperation. In terms of amount, 80% of them have been in cooperation with other peers. In terms of this new era, focusing on management capabilities, we need a lot more partners in financial institution, in the same industry, in land supply industry as well. Also, we need good contractor suppliers to help us as work as our partners to serve our end user. In the end, provide good quality of products. As I've mentioned, make steady steps towards long-term objectives. That's our thoughts about this. As we've mentioned before, the efficiency should be reviewed and examined by the customer. If they are unbearable or negative impact, then we should be careful to avoid that. About the acquisition and deals, the questions you mentioned, apart from the 22 cities in the new rules, two concentration land supply, we will participate, we will acquire projects. We have different ways to do it, for other ways, as you've mentioned, is acquisition. For acquisition, that's more on the project level. We also cooperate with others or acquire new projects through old town renovation renewal. We have a renovation of dangerous buildings, for example, Nantou Ancient City. Overall speaking, we can provide the comprehensive governance capability for a city. The other way of cooperation is to getting those non-performing assets. We will take over some of the non-performing assets and improve our capability of getting those fresh assets. For friends from media, and for projects, if you knew there are any good quality of projects, you are welcome to recommend them to us. Thank you for your question. Now let's get into the next question. Now let's welcome analyst from Citibank. I'm Ken from Citibank. I have two questions. Two quite simple, and that's been frequently asked questions as well. Firstly, is about the interpretation of the new policies. A lot of the media and customers think that three burdens. One of the burden is real estate, is housing. Do you think that an opportunity for Vanke, and how you're going to correspond to that? Second is about gross profit margin. We can see the gross profit margin is about 18%. Customer wanted to know that if this level is quite close to the bottom. If it's not, maybe next year or the first half of next year, you can touch the bottom. This is our question. When you're going to acquire more land? Thank you. You mentioned two question. First about the three burdens. One of them is housing burden. You want to know the impact or the challenge it brought to Vanke. Second, you mentioned about gross profit margin. If the profit margin of Vanke has already at the bottom, you also want to know about the bottom level of the whole industry, right? Yes. Old friends. Thank you, Ken. We are old friends now. I will answer your questions myself. For these three burdens, education, healthcare, and housing. These are three burdens of people's livelihood. For education, we have a little bit of projects in. For healthcare, we've only covered a little bit, so we are not really a practitioner in those two. Housing, we are the main participant. I know that all of you have been paying attention to the issues the governments care about, the housing. We are the players industry. The contribution we made is not enough, so we hope we can do more. More than two decades ago, Vanke's aim is to let more teenagers who just come into the city can find a place to live, a good place to live with good condition. This is our starting point before we start the business. So far, we think the contribution is not enough, and the only thing we can mention, maybe, is the long-term rental housing apartments. I think Mr. Yu has made an introduction to that. We started this exploration in long-term rental business quite several years ago, we started the official operation in 2014. We need to provide some long-term rental apartments for young people with good price-performance ratio. A lot of them are houses, projects built in the villages in city. We rent it, and then we renovate it and then build it out. Also 60,000 of units were located in Shenzhen. For the average price is quite more than CNY 1,000, about CNY 1,200 per month. I think for this price is quite good, and people can live in. For urban port- For Port Apartment, actually, the fees or the rental fees is CNY 1,991 per unit, including the management fees. We feel reassured, the shareholders is not happy with that because this business is not making money. They also invested a lot of capital, human resources, and energy from the company. To some extent, they actually limit the sales growth. I think this is a business that is actually taking care of the governmental policies for the same way it's been giving to house selling and house rental business. I can say that when we were dealing with the Port Apartment and the property operation business, we more find out the operation business is for serve the wellbeing of the citizens, and also serving the industry and the real economy. Even if we're not making money, we are providing a solution to the real need and take care of the real pain point in the society. It is still something valuable to us. This is my response to your first question. Responding to your second question, 80% for the GP margin, is it already at the bottom? Whether it's going to be rebounded in the near future? What would be the trend for the GP margin in the longer run? As I repeatedly share with the market, we are farmers. It's hard for us to forecast what the policy is going to come and how the weather's being changed. We still wait to see. Many of you are here may know that short-term policy is very hard to be forecasted. You can say that, we have a saying, if we have the chimpanzee to make the kind of decision or have the best investment expert to make a decision or judgment, it almost have the same result. In short term, it's very hard for us to foresee what the impact from the policy to our business would be. In the longer run, if we do more analysis, we clearly know that now we have a decrease in profit. When should it been taken up? When should the bottom be met? We are still wait and see. For every industry, we just want to make sure that we reach the industrial level. Even slightly higher the industrial level would be great. I think for the whole industry, we're still going to go back to a rational return level. The rational return level doesn't mean the return level for each company. Just as Mr. Zhang from CICC mentioned, we have different performance. You see that with lean management, with good service and good product, those ones who win the trust from the investors and also who win the trust from the customers, and the ROI would be higher. You see that for Vanke, we are a company with a very strict and very clear policy and strategy in our mind. We are clear on our strategic options, where the state we will get in and which business tracks we get in, and we always have clear strategies on that. We always spare a lot of efforts to make sure that our strategy could be well executed. Ultimately, we are enterprises. We are still waiting for the policy to come to say what it's going to look like. Being enterprises in the market, we always make sure that we communicate with all sides to keep good interactions with all parties. For Citibank, if you have any doubt or any concern of our performance, especially on our daily operation, we'd like to hear more comments from you so that it can help us to further optimize our performance. Thank you. Thank you, Ken. Thanks for Ken from Citibank. Let's welcome the next investor, please. Next, let's welcome Joji Yu. Good morning, ladies and gentlemen and the management team. I have one question. Everyone know that for Vanke, the net profit attributable to Vanke equity holding was decreasing. It seems that you have a guidance for the future net profit growth. When will the net profit improvement going to come? My second question is that, on financial management, it seems that Vanke takes a very prudent management. How about your interest capitalization rate? It's already on the bottom level, the lowest one in history. Have you ever considered to improve your capitalization in order to increase the profitability? Thank you. Thanks for Mr. Zhou from Wall Street Insights. You were also asking about the decrease in net profit, and you also mentioned about the interest and capitalization rate. Are these two questions from you? Yes, indeed. Thank you. I will ask Madam Han to answer those questions. Thank you. Thanks for Mr. Zhou. Thanks for your question. Yes, indeed. Profitability, especially net profit, is something that people are worried about. Many explanations already made for the previous questions, but let me make one more comment. You can see that our GP margin after tax is already 80%. Within that, for a real estate development product business, it's around 90.6%. Well, if it is GP margin before tax, it should be 24.9%. We already included into our interim result announcement. Mr. Zhu Jiusheng has already mentioned that since the year of 2017 on, you can see that actually, the GP margin of the property development business was down because the land price to the total sales price ratio was taken up. That is also the logic we mentioned just now. If we take a look at our own performance, in the next two years, we're still going to be under some pressure for the GP margin. We hope that by doubling our efforts, we will make sure that this GP margin pressure won't impact our business that much. Regarding the interest and capitalization rate, and financially speaking, we are very prudent. Our capitalization policy strictly follow the accounting rules in the market by hitting three preconditions, making sure finance is there, and the funds actually being used for the project, and then to do the capitalization performance. It seems that capitalization ratio for the past few years is around 40%-50%, where in the near future, we are going to strictly follow the regulation and the rules to make sure that we have still a prudential attitude towards the financial management. Thank you. Thank you. Thanks for Mr. Zhou from Wall Street Insights. Coming next, let's welcome the next investor. Let's welcome Chen Zheng from CITIC Securities to raise a question. Thank you. Thanks for management team. Just now, Mr. Zhu Jiusheng, you also mentioned about the social impact from the rental housing, and I would like to admire your leadership in the rental apartment business. What's the outlook of this industry? How big it's going to be in the near future? When does the rental housing or the long-term rental apartment can actually make good profit while at the same time honor the social commitment? If this market is going to be profitable, do you need more government policy support, or what kind of efforts should the company make? The second question is regarding the financial environment, financing cost, and of the whole industry to the company, and your financing plan in H2 of this year. Thank you. Thank you. Thanks for Chen Zheng from CITIC Securities. The first question is regarding the rental housing, how big it's going to be in the near future, and when the company can make a profit from that. Does the enterprises and the government need to work together to make it is profitable? You also talk about finance environment, financing cost, and the future trend for H2. Yes, indeed. Thank you. Thanks for Mr. Chen from CITIC Securities. The first question will be responded by Madam Zhu. Second question will be responded by Madam Han. Thank you. As introduced by Mr. Zhu Jiusheng, for Vanke, since 2018 on, we started to provide the rental housing business, and we are now the largest solution provider for the rental housing business in China, especially the centralized one. You can see according to the population statistics, in China, we already have 439 million people being inflow into the city. You can see that the population traffic within city and between cities is going to release more demand for the rental housing service. The same as U.S. and Japan, in China, we have also a pronounced trend for people to live solo. You can say that in 2030, this number is 40.5%, and now it's already 80.5%. By 2030, people live alone will reach 100 million - 200 million. You can see that human moving, transportation, and also the living solo trend will always release new demand for the rental housing business. The small size of flat is short of supply in this market, and also the quality of the service can also be improved. On the 45 year plan, in the first year, you can see that it's already become a national strategy to provide such service to the customer, because the government also provide the land supply tax and the financial preferential treatment to this industry. I think in the next one decade, the rental housing industry is going to see a healthy yet orderly development. Vanke really want to leverage our advantage to making sure that we have a micro profit, while at the same time to seek for the long-term rental apartment solution to help the cities to retain the talents and the young labor. We need to support the real economy so that we can survive in this market. As you said, for this business within Vanke umbrella, it's not making money, it's actually losing money. It is worth mentioning that after past one to two years' development, no matter on the brand value or from our systematic advantage or customer loyalty side, we made very good advancement. All those progress and advancement will be translated into our financials later. It is also worth mentioning that at our Port Apartment, actually, the occupancy rate is already taken up. Many of the customer, their rental lease renew rate is also leading this market. This all telling that this industry is going to see a healthy development in the near future. We are talking about the industrial development. It will need the society and enterprises to work together. The government has already provided a lot of tax, financial, and land supply preferential policies. In the near future, we're still going to deep dive into this track. On this business track, we need to maintain our competitive advantage. We'd like to review different business models of the existing projects to explore new business models and to train the best operational team in this market. By having the best talent and the best business model, we will be able to have a rational yet sustainable profit in the longer run. Okay. Now let Ms. Han to answer your second question. You mentioned about the financing. Within this mechanism for three red lines, the leverage of the industry has been going down. This is a big trend. This year, the financing environment has been tightened. No matter is bank borrowings or pledge loans, mortgage, it's going down for bonds. The growth rate is going down too. Overall speaking, financial institution has been more careful and cautious in terms of lending money to real estate developer. For Vanke, we've been stick to our healthy and stable policy. Mr. Zhu also mentioned the policy that we should make steady steps towards long-term objectives. That's true. We need to stick to our financial disciplines. Overall speaking, we will be more careful and cautious in terms of financing. Actually, in the first half of the year, the financing cost has been going down by 32 basis points. Now the financing cost is about 4.27%. In the second half of this year, we will keep our indicators in the green tier threshold. In terms of specific practices, we will consider the changing environment and the changes of a company's operation and make flexible arrangements. Overall speaking, we will keep a more controlled attitude towards financing, so that our financial conditions are healthier than before. Thank you for your question. Now, let's get in the next question. Now let's Mr. Cheng from Caixin. Good morning. I have two questions. First is about acquisition. First half of this year, you acquire a lot of projects from Huaxia and another developer, and I want to know the progress of these projects. In the future, will you acquire more shareholders of these two company, take over these two company? The first half of this year, you made a big structural adjustment, and you start into the adjustment for three years. Now for the first half of this year, we can see the results. Your adjustment in terms of structure hasn't contributed too much to your performance, right? You've always stick to, for example, the net profit has been going down. We want to know your efforts in structural adjustments. How will that impact your performance? Will that be helpful or not helpful? First question is about acquisition in, for example, in Yangguang and Huaxia Xingfu. Also we want to know whether in the future we will acquire more for projects like that. Is that your question? Okay. I will give the floor to Mr. Zhu Jiusheng to answer your first question. Thank you for your question. In terms of our Yangguang, we have a cooperation on the project level. That's acquisition. We acquired three projects from them. For the projects acquired, it's been going on regularly, smoothly in the development stage. For Huaxia Xingfu, in the recent one year, actually, we didn't have much discussion or cooperation even on the project level. This is the basic facts. The second question is about the structural readjustment and the efficiency of the efforts. For these recent few years, we can see that, as you can feel from the media, actually our focus or priority lies in four aspects. Business clarification, strategy clarification, structural readjustment, and making the right person corresponding to right business. These are the four priorities of our work or management tools. At different stage of development and different problems will show up, and then we will use different tools. It reflects our ideas, changing of ideas that reflects the environment. We stick to long-term development and stable development. Of course, what needs to be changed will definitely be changed. What needs to be sticked to will be sticked to. Structure, strategy, cultural, HR, human resources, quite a few things has been integrated together. Structure to performance review. This line is not so direct or short-term. The performance will not be shown in the short term. We've made a lot of adjustment. We believe those adjustment efforts will make us stronger, more competitive, and we think that shareholders and all stakeholders will see the benefits coming out of it. In this world, there are a lot of contradictions. A lot of things happen, and people will have different ideas of that. It's not a clear cut, yes or no, right or wrong, but sometimes it's a problem for the short term or long term. This is how we feel about your question. There's also need to be balance between short term and the long term. Short term is hard to say, but long term, we need to achieve the long-term goals through hard working and resilience. I think our management team have this quality of resilience and hard working, and we can stick to our principles and strategies once we set it, and develop along with our customers to build the cities together. We are willing to solve pain points of our customers. The structural readjustment is serving the customers. That's the aim of doing it. The frequency of this structural readjustment, maybe you think the frequency is too high, but the underneath logic or aim has never been changed. Thank you. Thank you for your question. Let's getting the next question. Let's welcome Mr. Yuan from Shenwan Hongyuan Securities. I have two questions. First of all, you know that the share price has been declining a lot, been down 30% almost, I want to know what's your view on the Vanke's value? In May 2020, you've mentioned there are some share repurchase that will need to be done. Do you think the environment is ready for the share repurchase? The second question is about retail business. As Mr. Zhu mentioned, the first half of this year, Vanke has witnessed growth of revenue 19%, while the peers is much higher. Overall speaking, the growth of revenue in the same industry has been quite high. In June, Mr. Wang Haiwu, we want to know what's your view on the SCPG. Do you have any adjustment to SCPG, and what's your plan for it? The first question, I will let Zhu Xu answer. Thank you. It's true that the share price this year has been declined a lot since then, and the share price of this whole industry has been declining as well. In the shareholder meeting, we applied a right to do share repurchase when the environment is ready. For example, one of the conditions that the share price in the past 20 trading days is down by 30%. One of these two conditions has been met, we will start our share repurchase. For Vanke, we have this partnership scheme. For the share price declining, the partners will feel the same thing as just you do as your shareholders. I know the shares decline has been impacted by a lot of reasons, but in the long term, the key reason is that whether Vanke can create value for shareholders, and the management team has been doing this relentlessly. About the second question, about retail and some of the gap between us and other peers. First of all, we have to admit that in terms of our retail business, there's still gap between us and the peers you mentioned who are doing an outstanding job in it. When we are reflecting, reviewing our problems, we think there are gap in performances and But the gap in terms of competency is smaller than that in the performance. For example, let's take SCPG as an example. SCPG in Shanghai has been doing quite well. The Incity is very competitive. If you have the chance, you can go shop and experience our shopping service there. In terms of management, the biggest pain point is that we have good projects doing well, like Shanghai Incity, while other projects in other cities is doing less well. This is binary. The good is very good, it's quite extreme. For those who are doing not well, the difference, the gap between them is quite wide. In terms of the performances in financial indicators, this is bigger than the differences in competencies. We are confident that we can find our own strength and competitiveness to find our way to solve this problem. It's been six years since we are shareholder of SCPG. We are trying different ways to improve the situation. Mr. Wang Haiwu has onboard SCPG. The reason is that Mr. Wang Haiwu was interested in us when he was in Dongguan, 10 years ago. He was in charge of this retail business in a particular district. He accumulated knowledge and was quite interested in it. In terms of the seven development areas, BG, the cooperation between this BG, I think that will help the cooperation between SCPG and our business unit, BGs. In the past, the Chairman and CEO were all Mr. Ding Liye. I think since Mr. Wang is on duty, he's going to be very helpful to provide support to Mr. Ding to provide good execution capability. Also, I think they've also found EMT members from outside sources. Recently, the obvious changes that the management team has been enriched a lot, the capability has been enriched a lot as well. Thank you for your care. We also hope that if you have chance, you go shop in our shopping malls to also to provide your suggestions to us. That will be valuable. Thank you. Next question, please. Let's welcome Li Yanyan from China Entrepreneur. Good morning, ladies and gentlemen. I'm Li Yanyan from China Entrepreneur. I have two questions to Mr. Zhu. The first question is that currently, we are actually doing not only the new project on the property development, but also the improvement on the existing project. You mentioned that the result will be seen in the next 3 to 5 years, and also some renewable project has a lot of difficulties. For Vanke, what's the reason for you to get into this urban renewable project? It seems that we have CNY 200 billion of the cash on hand, and how are you going to spend the money? Thank you. Thank you. Thanks for Li Yanyan from China Entrepreneur. You have two questions. First question, our business transformation from a property development and also taking care of the real estate service and management and the urban renewal project. It really takes a long time. How are we going to handle that? We have more than CNY 200 billion of the cash on hand, how can we optimize the utilization of that, right? Yes, indeed. Please. Thank you. Thanks for the journalist from China Entrepreneur. Yes, indeed. For the past few years, one tends to summarize our business transformation. We are expanding our business from a property development, also into property operation management and city renewal projects. You mentioned about the city renewal project. We have some of the big renewal projects with the democratization, also we have some micro renovation project. You can see these two business are different also requires different capacities. For example, like a big renewal project, many of the peers in our industry, they also are capable of doing that. Even someone can better perform us in those big urban renewal projects. Due to the policy reason, you can say that urban renewal project, especially the big ones, they should be no more than 20% of the total renewal projects. For some of the projects, they will not actually be demolished and then be rebuilt. It's impossible for those projects to be done in this way. The second business is micro renovation. For example, in Shanghai, in Guangzhou, in Yongqing Fang, and in Beijing, and also the Wangjing Street, and the Nantou Ancient Town in Shenzhen, and the Hongmei Cultural and Creative Park in Shenyang, and Chang'e jiuli. You can find all those projects in our financial report. Superficially speaking, those are the projects that help to generate the profit, but actually, they have a very high requirement over our capacity building. Those companies who are very good at resolving the difficulties in the market should be the curator for Vanke. Vanke, many years ago, the Vanke Foundation already helped to renovate the old temples and ancient temples in Shanxi Province. Around 10 years ago, many investors you find out it means nothing to our evaluation. Because of our temple renovation projects around 10 years ago in Shanxi Province, you can see that now in Yongqingfang and in Nantou Ancient Town, for those micro-renovation projects within the downtown area of the city, they were being called as a piece of the city, and they will also become a cultural legacy and a historical legacy of the city. In this way, they are somewhat more advantageous than the peers of taking care of those projects because of our temple renovation projects in Shanxi 10 years ago. You can say that sometimes the capacity won't be translated into profit in short term, but it will surely come. The question is, when that day is going to come? Well, for enterprises or in management, whether that day can come with our presidency, we'll still wait to see. While regarding the cash on hand, how we're going to spend them, we still take a very prudent attitude, and we always have a saying, "Steady steps towards long-term objectives." In longer run, we're going to have a lot of cash on hand. To be frank, we keep steady growth. Steady growth and steady business is the key for us. Taking a look at the three red lines, especially our net gearing ratio for the past 20 consecutive years, was the lowest among in our industry, always lower than 20%, generally lower than 20%. This is our style for the past 20 consecutive years. Such a very steady growth means that we probably give less return back to the shareholders by taking aggressive attitude. I think comparatively speaking, long-term steady growth and long-term survival in the market means more than the providing more returns to the short-term returns to the shareholders. Because honoring social commitment is very important to us, too. You can't just rest so many in cash in our account. People may ask, and you're probably going to take the liquidity, return, and safety, and all those three factors together. Yes, indeed, we're considering that. We will make sure that every penny we can strive for will be taken care of by us, especially in the management dependence or a stage or in current days, we believe we should keep our steady style as what has been done for the past two decades. You know that sometimes it really takes time for the good policies to be executed and the result to be shown there. So you can say that we're still very confident in our capacity, and we still would like to thank for all your support. Especially, I'd like to thank for those shareholders and the customers who followed us all the way. If we join our hands together, we sure that Vanke will be able to perform better and perform longer. Thank you. Thanks for the question from Li Yanyan from China Entrepreneur. Because of the time limit, and we are going to have the final two questions. Please. Coming next, let's welcome Tu Lilei from Haitong Securities, please. Thank you. Thanks for the management team for giving me this opportunity. I have just one more question. Regarding the residential project investment and the development pace, it seems that in the market, there's a shortage of the supply in certain cities, and in July and August, there are some of the problems regarding the public tendering, and it's going to say short supply in the longer run. How are you going to comment on that, especially the peak shaving in the supply and demand side, and how it's going to look like in the longer run? Do you have any comment on that? Thank you. Thank you. Thanks for Tu Lilei from Haitong Securities. It seems that you especially pay attention to the stringent policy, how it's going to impact the land supply, right? Yes, indeed. Okay. I would like to ask Liu Xiao to answer the question. Thank you. Thanks for Mr. Tu. I think probably I'm going to give some talks first then to ask Mr. Zhu to give more comment. I think currently as land supply are seeing some diversified trend. First of all, we have multiple channels for land supply. Collective land supply is one way. You probably notice merger and acquisition is also another way, especially project merger and acquisition. Mr. Zhu has already mentioned about the project's merger and acquisition. I think it is something worth of our attention, especially for the past three years. Projects merger and acquisition actually accounted for 40% of our total property development revenue. I also share with a few cases just now. From the land supply perspective, there are so many changes. The companies also carefully review what would be the new development pathways forward. For example, for urban renewal, it's also a change from the supply side. In the longer run, you may notice that for a city, its development will ultimately decide what the supply side changes may look like. Well, for sure, demand and supply are always changing. For urban renewal, why urban renewal has become a new way for land supply, especially in the Tier 1 cities in Beijing, Shanghai, and Shenzhen, especially in Beijing, majority of the land supply are the collective land supply. You can say that in Shanghai, we also join some urban renewal project, and collective land supply has become a new way, and the urban renewal has become a new way for the land supply already. You can say that generally speaking, no matter in the public tendering market or the merger acquisition market or in the urban renewal market, and even we're talking with the government, we're signing the TOD and the strategic contract. We believe on one side, it's going to show the supply changes in the city, and also mentioned that Vanke is going to adjust our strategy according to the market need. You mentioned about the tightening policy. I think the tightening is just in certain channel, where ultimately we are also going to take care of that. You see that, generally speaking, we still need to further polish our capacity and build our process capacity because in majority of the channels, where we need to distribute new capacities in, so that we will be able to grab the opportunities between the demand and the supply. Thank you. Thanks for Mr. Tu. Now let's welcome the final question, Wang Yu from Tianjin News. Good morning. I have a question regarding your diversified business mix. It seems that the Port Apartment and your retail business are taking off, especially the revenue, but it's not yet being built into our balance, greatly showed in our balance sheet. When shall it be built into the balance sheet? Thank you. Thank you. Thanks for Wang Yu. You'll notice that our diversified business, the revenue, some of them has been built into the balance sheet, where some are not. Is it the question? Okay. Would you mind to repeat the question again? It seems that we failed to get your question. Thank you. As I can say that the Port Apartment and the business property side are actually seeing great revenue, it seems that the rental apartment and the retail business are being consolidated in because all the business revenue are decreasing. Can I know that whether the rental housing and retail business revenue has been built into the balance sheet or not? Thank you. Thanks for the question. I will ask Madam Han to answer the question. Thank you. Thank you. Thanks for the question. Yes, indeed. In H1 of this year, and for Port Apartment, the revenue and also from the business service are growing, and that is already being built into the revenue of the property and the related service item, because from the business size perspective, and both service are quite limited, and we still have more business on the property development side. Now, and we still put both business together, but when we introduce the specific tracks, we are just showing their revenue and the growth and the changes. Regarding all their business revenue, some of the brand management fees we collected from our partners, and it's not the fees we got from the property service side. Thank you. Thanks for Madam Han. Thanks for your question. I think our media friends and analysts or investors may have more questions. It seems that we have already overrun this meeting for around 15 minutes. We also published the announcement and collected some of the questions. Some of the key question have already been covered in the QA session right after this interim announcement meeting. If you have more questions, please send your question to IR email box. It's ir@vanke.com. Also, we launched this result announcement streaming on our online transaction platform and mini program. If you are interested in getting to know more about it, you can also click on the bottom of the little house to get to know more Vanke projects in the near future. Thank you, everyone, and thanks for our investors and media friends. See you next time. Thank you.