Distinguished investors and media friends, welcome. Good morning. Welcome to join this annual results release. I'm Secretary of the BOD, Zhu Xu. Welcome to join this meeting today. Today, for the management members with us today, except for the five old friends, there are two new joiners. Let me introduce them. Chairman of the Board, Yu Liang. President, Zhu Jiusheng. Chief Partner of the Development and Operation BU Headquarters, Zhang Hai. Chief Partner of Property Management Group BU, Zhu Bao quan. Finance Principal and Executive VP, Han Huihua. Executive VP, Liu Xiao. Now, let us give the floor to Yu Liang to introduce about the results and business operation. Dear investors, analysts, friends from media, good morning. Last night, I felt very uneasy. Just like a student who didn't do well in test, when I present the answer sheet to my parents, I feel just like that. I totally understand how you feel and how you're feeling, my dear shareholders, disappointed, unsatisfied, or confused, or worried. I just feel the same with you. Before this meeting, I had a meeting with our management team and we had reflections from last night to this morning and reflected on issues that investors and friends care about. I realized that there are a lot of problems that everyone is care about, but I realized that they are all concentrated on two issues. First of all, why the net profit in 2021 is down by 45.7%. Second, whether or not can Vanke from this year stop the decline, stabilize, and grow steadily. For these two issues, I'd like to make some analysis and answer in this annual results release. Also, we've mentioned some of our reflection and our analysis on these issues in our Letters to the Shareholders. I also think that today is very necessary for us to keep on this analysis and reflecting. For issues that friends care about, other issues they care about, we can talk about them in the sessions after the Q&A. In the past, I have been reflecting all the time why our net profit has been declined this much. After the reasons we disclosed in our Annual Report and our letters, I think I would like to answer like two more aspects or the reasons I find and would like to share with you. The first reflection is on our management, the management style. In the past, Vanke has been delegate our power authorities downwards, and management style is more like distributed. When the market is growing rapidly, this is good for us to grasp the market opportunity. When the competition is getting more fierce, and then there's more competitors, and there are a lot more big, major, complex issues, and this kind of a management style will cause some of the problems. For example, like any singular subsidiary, singular region, they does not have this complete competitiveness. That will cause dispersion in performance. Some of the like project singular and/or individual project will drag down the overall performances. On this kind of a dispersion is there. That's, and it's caused from our management style. As specifically, they reflect on two sides. First of all is the project management capability. Actually, Vanke has did a lot of good project before. For example, the like culture village in Hangzhou, Liangzhu, that many people care about and went. This is a very representative, big major project. After that, we also developed the Forest City in Hefei. For this project is a very big one. It covers a really large area, 1.8 million sq m. When we're developing the residential functions, we built schools, senior care, park, commercial, etc. We spent eight years to develop this area into one of the most livable, habitable places in Hefei from a suburb area. We have developed some good projects just like this Hefei Vanke Forest Park. It's a pity that we didn't replicate this good project to other areas to transfer them, convert them into advantage of the group. Also, the other dispersion is happening in investment. Some of the project has turned out to be a mistake investment. In the past, we delegate our management like distribute it, and then we dedicate this, our investment quota directly to regions. When the market is developing really quickly, we are very flexible, responsive to opportunities. When the market is changing, the weaknesses is shown, for example. People will have the mindset that we are the exception, and we face really good opportunity. We have this kind of exception mindset, and also like to think that although the market is not good, I can do it well. In this situation, people could make mistake. For example, they could overestimate the market opportunity. For example, in 2018 or 2019, in the area around Beijing when the market is adjusting itself downwards, people think the market. We think the market is at the bottom, so we took an asset. But then after that, market has declined more drastically. After that, we have to record CNY 2.5 billion of impairment provision. This is caused by a dispersion in management. Another aspect or reflection I'd like to mention here is that we are exploring different business at the same time, and the cost of that is bigger than we expected. Also that impacted our performances in the past. From 2014, we've been exploring different business. For example, we are exploring in different businesses. People ask, "Why aren't you just focused on one or two?" Because we think that as Vanke's scale or business' scope is really big, if we only focus on one or two business, then it's not good for sustainable development. We think we need to explore in multiple channels, multiple businesses and markets. The cost and the challenge is much bigger than we thought. When the development was developing quickly, the cost was actually shouldered by the development business. When the market is changing, this kind of attrition or cost was shown. For example, take the long-term rental apartment business as an example. Vanke is one of the most active advocates of renting and purchase the same time for the government's policy. We know that this issue or this policy or this direction was put forward by the central government, and we are quite positive for this rental business. We all know that it takes time for the central government's guidance to be implemented and to be made into policies. For example, when we are exploring the use of collective land in rural areas for building rental houses, we made a lot of breakthroughs in the original policies. Also, people think that there are idle offices, and people think that we can convert it into affordable talent leasing rental houses. Actually, the policies aren't really clarified by now yet. Some of the tax policies related is only clarified by 2021. While we're exploring this, the time it took is longer than we thought. Other than that, except for that, when we are exploring new things, it's inevitable that people make mistake. For example, for the urban village in Shenzhen, this kind of village solved the problem of Shenzhen's huge, massive floating population, but also it has hazard of safety, difficulties for management. We hope that Vanke can utilize our strength advantage to renovate it in a large scale. We took the role as a secondhand landlord, and then the cost is really big. Till today, we're still paying the cost. If not for this business, I think the apartment business of Vanke is profitable by now, or earlier would have been profitable actually by now. This is one aspect that I think reflected on in terms of the business performance now. I know that no matter how deep my reflection is, it's still the fact that we didn't do well in 2021. We were not performing well. We are disappointing you, disappointing the shareholders. Here, I would like to make my sincere apology to the shareholders, to 520,000 shareholders of Vanke. I know that everyone's here for this annual results release, not here for me to apologize, but also you would like to know, can Vanke, starting from this year, stop the decline, stabilize, and grow? Do we have the confidence to realize that? For Vanke, our task is focused on a sentence like, stop the decline, stabilize, grow steadily, and then here is stable and steady. Stabilization is a sign of stopping decline and also is the base and foundation for growth. We have the confidence to realize and achieve that. Our confidence come from two external factors and three internal factors. The first external factor is policies. We can see that there are a lot of good preferable policies being issued. The central government has already, again, clarified the direction for real estate market to be in a virtuous circle to develop healthily. The different governments are issuing different policies to stabilize the market. For policy side, we are really confident. The industry is going back to the normal, going back to rational. Net profit too high or too low, neither of them is sustainable. I think the average return level of the industry will eventually converge to the average return level of the society. This is the foundation of our confidence from the policy side. The second foundation is the market itself, the industry itself. The real estate market is a huge, massive market with size more than CNY 10 trillion. There are always new things and new opportunities. There are always new opportunities means that real estate market is an old business. As long as there are cities, there are architecture and buildings, and there will be demand for consumption for that, for real estate market. Although the total population is at the turning point, although the urbanization is slowing down, but we have a huge, massive population base. This market, real estate market, is still gonna be a really huge, massive market. The size of it is definitely more than CNY 10 trillion. Development of real estate assets is still one of the most important economic activity in China, still also one of our most important business of Vanke now and the future. For there's also always new things in the market. That means with the development of the city, people's lifestyle, working style has been changed, and there are different scenarios. Then there will be new demand for real estate product and services. We can see from the experience from the developed countries like America and Japan. When the incremental market of this market has decreased, then there will be more opportunities focusing, generating from the existing market. For example, let's take the REITs as an example. In the past 20-30 years, the total market cap of public raised REITs in America or in Japan. The CAGR is about 20%. Vanke is focused, centered around development, operational services as our focus. We made complete preparation for that, and we have already cultivate our own feature and capability of real estate market. This is the base from the industry side. Contact. Well, just now, I was talking about the policy foundation and the industrial foundation. Next, I would like to share with you the so-called three internal foundations to support us to improve our performance. The first internal foundation is that property development business is still going to make us the tier one companies in this industry. In 2022, we're going to stabilize our performance for rebounds. We also have enough land bank for the next two to three years. Here are so-called three supporting points. Through the Development and Operation Business Unit Headquarters, we already have the centralized and coordinated management of the development business, which can actually help to take care of the dispersion issue. We'd like to further improve the management dividends to improve the level of the returns. Well, for Development and Operation Business Unit Headquarters, it did the following things. First of all, they actually streamline the product standard and be ready for each project, while at the same time to manage those major hubs. For example, we have 87 key controlling points over some major and complicated projects. So in this way, we'll be able to actually launch some benchmark program in this market with good reputation and good profitability. So it can actually help to improve the property development business, while at the same time to show very robust financial performance. The second point is that we always stick to high-quality investment. Vanke still have enough cash to support our land acquisition, and we also have enough land bank to sustain our business. So actually, we never stop land acquisition. Last year, we also changed our philosophy for land acquisition, and we started to be changed from the decentralized to the centralized land acquisition philosophy. We also further improved the criteria for the land acquisition investment. For example, the profitability criteria for the project and the team competency evaluation and also our investment management. We can say that those sellable resources is going to become the concrete profit to sustain our future growth story. The third supporting point is that we have enough land bank. Currently, in our hand, we already have 100 million GFA under construction and also 450 million of the planned GFA with enough land bank resources. Altogether, it can actually support our next two to three years business development. For Vanke, we'll not rush for the land acquisition. Whereas at the same time, we also have CNY 710 billion of the sold yet unbooked contracted sales, which is 1.6 x of the settlement revenue we made in 2021. Whereas in the near future, this could also be translated into the concrete profit that can sustain our development story. The second internal foundation is that we have a faster growth regarding the operation and service business. NOI rate has been gaining great momentum and which can become a new profit pool for us. Well, you can say that nowadays, our logistics service in the industry has already become a leader. For the past 10 years, the logistics business revenue CAGR was already more than 30% averagely. At the same time, in the high-standard warehousing, we're the leader and we're also ranking number one for the cold warehousing, and the CAGR is already 52% for the past three years. For the long-term rental housing, we are undoubtedly the leader in the industry, and its CAGR in the past 43 years is already 40%. At the same time, for our commercial brand, SCPG, and also its CAGR in the past five years is already 20%. So you can say that those diversified business in the past one year, jointly speaking, contribute CNY 40 billion to our total revenue. At the same time, you can see they still maintain a very promising growth. For those diversified business, they performed well regarding NOI rate. For example, logistics, the NOI rate is already more than 6.5%. The cold chain logistics is already more than 7%. The long-term rental housing right after 2019, the NOI rate is already more than 6%. Where for SCPG, the project for the past two years, the NOI rate is already more than 6% for the full year. You can say that all those diversified business will help to further improve our growth in the near future. Another point I'd like to mention is that the tuition fees we paid in exploring this business, I mean, the heavy investment has already been made. For Vanke, we always stick to the cash flow management. We always deliver the so-called cost accounting principles, and the depreciation will always be listed into the cost item. You can say that for last year and altogether, we have around CNY 8 billion such cost. To some extent, it was hurting our balance sheet, but now those heavy investment has already been made. Even if still following the cost accounting principle, where for the non-developed business altogether for this year started gonna to make some positive contribution for the balance sheet of the whole company. The third point I'd like to mention is that the operational and the service business are now started to form a new profit pool. You can say that in the society and a very stable cash flow is still the key. There are some investors who are here for those projects with a very stable cash flow. In the society, there are less asset that can meet such criteria. To some extent, we do have the so-called asset shortage in the market. Especially those qualified assets is not in good supply in the market. At the same time, we also have REITs starting to show up in the market. It can actually help us to further improve the value of those long-holding assets. In this way, you see that it's a good news for assets management. It's just like the personal mortgage. Without the personal mortgage policy, we won't be able to improve the housing environment for the Chinese people or with the support from REITs. I think probably the long-term holding asset is going to embrace a new spring. I'd like to give you two cases. For example, in Shanghai, we have the Qibao Vanke Plaza. For this product, the initial investment is CNY 2.4 billion. A few years ago, when we sold it to the 50% of the shares to the party that we're working with, we made a profit of more than CNY 1 billion. Last year, when they transferred the equity to other parties, actually the value is being greatly improved. If we didn't withdraw a few years ago, actually, we can have another CNY 1.5 billion profit. This is how the property business can actually help to contribute to the revenue. At the same time, for VX Logistics, actually, last year, we have a 30% impairment for our assets. It's already been built into our balance sheet. You can say that as we further improve our operation and management, and we're also going to have a more qualified assets in building to our asset pool. In the near future, it will be able to lay a solid foundation for our profitability growth. The third point I'd like to mention, and also the most consolidated foundation we have, is the stable operation and a very good credit rating performance. Our net gearing ratio has always been kept at a very low level, and we are on the green bar for the three red lines policy, and we also have a very good credit rating performance. That makes us more opportunities for investment and more opportunities for future development. I mentioned about two external foundations and the three internal foundations. These are actually the reason why we are still confident in stop slumping, stabilizing our performance for future growth. Surely I know for any program and any target, we need a good team to achieve it, 'cause ultimately, the execution is being done by people. In the last year, we have already canceled the so-called corporate partner, or we call them senior managers of the company. Every senior manager is being asked to go to the business front line to do the concrete work. The same as me and the president. The president is now the chief partner of our long rental housing business. He's actually need to be responsible for the operational management of the long-term rental housing business. While me myself is actually the chief customer officer of the group. I was working with my peers, truly trying to find a solution for some of the issues being complained by the consumer. Some of the consumers said it actually a very lengthy period for them to get the housing permit to be done. Generally speaking, it takes six months or even sometimes two years. For that, we launched a new action. When we deliver the project to the consumer, we also need to be prepared with the housing license and the permits. That's the reason we have to do some internal communication with the government organs in advance. Last year, we have 170 projects successfully comply with this policy, accounted for 25% of the total products being delivered, and our customer satisfaction also being improved to 95%. In this way, by hearing the voice from our customer, I'll always be able to get a true picture of our business and then to find the corresponding solutions by coordinating with resources within Vanke. We believe only by successfully implementing our programs to be practical, and then we will have a good growth. In our 38 years development history, we're not always on the growth momentum, and we also encountered three rounds of the net profit down in 1995, 2008, and 2021. Actually, the net profit going down for every time will actually remind us some of the shortcomings we may have within our operation. Especially when the external environment started to become challenging, those shortcomings and problems are going to remind us with the ever-dropping net profit. It is also a ringing bell to let us know we need to respect the market. We need to find the root cause of the problems, take fast actions. In 1995 and in 2008, we encountered two rounds of the net profit down. Later, our performance rebounded successfully. We also hope that in 2021, our net profit went down, can also provide us enough. Actually, support for us to deliver a well-performed scorecard to the investors in 2022. Thank you. Thank you. Thanks for Mr. Yu. Coming next, let's get into the Q&A session. Let's welcome the meeting secretary to welcome the investors to raise the question. Ladies and gentlemen, and, please press one and star on the keyboard of your telephone, and please wait for your name to be announced. Thank you. We now have 34 audience who are ready for the question. For each audience, you are only allowed with two questions. Let's welcome Le Jiadong from GF Securities to raise the first question. Okay, thank you. Thanks for the host. Actually, I have one question. Why in Q3, our performance being down by 16%, but why for the whole year, our net profit was going down by 45.7%? I would like to hear the explanation from the company. Another question I may have is that, for 2021, we see a big drop for the net profit rate, where in the near future, what would be your GP margin of the property development business guidance to the market? Mr. Yu said, and you have every confidence to improve the performance. What would be your guidance for the next two years regarding the contracted sales, net profit, and revenue? Thank you. Thank you very much. Thanks for Le Jiadong from GF Securities. I think you have three questions here. The first question, because our net profit being down by 45%, but only 60% in Q3. What's the reason? The second thing is about the GP margin guidance for property development business in the near future. The third question is that, what would be the operational indicator guidance, for example, sales, net profit, and also revenue? Mr. Yu, please help to answer the question. Let's now welcome Mr. Zhu to answer the question. Okay. Thank you. Thank you for your question. I totally understand how you feel when faced with this market drop or performance drop. We are also very pressured. In Q4, why the drop is like bigger than the previous three quarters? There are three factors. The first is that the settlement. The time of settlement is like 40% of a project is settled in Q4. By equity percentage, and that percentage is down by 5%. Combined with these two factors, net profit attributable is down a lot, by 45%. The second is the return from investment about in Q4. In Q4 most of the work of the settlement is done in Q4. Like we are settling the investment projects. In 2020, the investment return in Q4 is like CNY 40 billion in 2021, and the return for investment is down in Q4. The performance of Vanke is actually changing together with the market changes. Net profits went down by CNY 2.7 billion in Q4. The second reason is about accounting. In the last year, the market is down a lot in Q4. The product is changing together with the market, so we record some of the provisions, for example, from the investment. Some of when the projects are bearing losses, then we will record losses and impairment of investment in our balance sheet. There are the two factors. Together, combining these two factors, we can see the changes that will impact our net profits coming from these above three factors. You asked whether we are, you know, performance bathing ourselves. No, I think I would just answer your question with, you know, a daily metaphor. Like when you are showering in a public bath, you have this experience. We are listed company, we will disclose the performance to the public market, to the market every. When we are showering in the public shower, you know, the ticket could not be too expensive. You know, if the ticket is too expensive, then we're not showering in the public. You can see the Chairman of the BOD, Mr. Yu Liang, already mentioned the revenues is down a lot. Then if we, I'm at a. If we then share that with every employee, every employee is actually shouldered a lot of the cost, and they double the cost. The expenses, cost of bathing is too high. It's not necessary for us to do this, to do so-called kind of a showering or bathing of performances. Vanke is located in Shenzhen. You know, Shenzhen have the habit to shower in cold water. If we have to take a metaphor, we'd like to use the more local metaphor in Shenzhen to shower in cold water. You know, we shower ourselves in cold water to wake ourselves up, to make us more sober, to stimulate, you know, healthy growth of the body. We need to be sober. A sober mind is more important than a healthy body. We have to deeply realize our shortcomings and weaknesses when compared with our peers. We need to cultivate land well. We need to work hard and create value to narrow the gap between our action and knowledge. Sometimes we see the gap, we see the shortcomings, but we are not just decisive in actions. Later, we have to shorten the gap, and then to keep a sober mind. This is my answer to your first question. Second, you mentioned about the gross profit margin. In the future two years development business, the gross profit margin is about 20% could be kept at that level. There are three factors to secure that. First of all, we have about CNY 10 billion of resources that's not sold but not booked. We will utilize that well. The second is that since the second half of last year, the mechanism of investment has been adjusted and changed. For like project, we will form a new criteria. For new investment, we will improve the quality and raise the criteria. That will also ensure the gross profit margin in the future from another aspect. The third is that the Development BU Headquarters since the establishment, we actually reflected good experiences of this business from the market and summarized and concluded. Improved our capability to operate projects. We are managing our projects well by different categories, different levels. From this, all this above measures, we are more confident to ensure the future target we reached. Also, we are improving our capability to operate large and make complex projects like old town renovation and also for sales side. They will be better motivated, driven to do their job well. In the future, the gross profit margin will be kept at 20% of the development business, and we're confident for that. That will need a lot of input and devotion to realize and achieve that, not just saying it. For this year, this is our five-year target, we summarize it as stop the decline, stabilize and grow steadily. In terms of revenue and net profit, especially from the net profit side, we... Actually, the shortcomings will be reviewed at the net profit level. We will focus more on this side, net profit. In terms of the development business, the usual businesses, we will have the foundation and then stable, and it's quite stable. In terms of operational services business, as mentioned by Mr. Yu Liang, they are showing good momentum. There will be a new, you know, profit reservoir. Combining these two factors, we think revenue, especially net profit, they are ensured and secured with a good base foundation. Last year, we did some of the we record impairments provision, and there are changes in investment return. Those factors happened in last year. In this year, those things is less likely to happen. We are more confident with the profit, net profit guidance this year. In development businesses, the foundation has already been built very solid. Mr. Zhang will introduce about that more in more details. For me, I would focus more on the operational service businesses. Why did I say that? Because operation and services business has become a new profit reservoir for us. For these two businesses, we spent eight years. It's more like a competition for comprehensive capability. We chose, like, this business to explore and to devote, and we have already accumulated capability in the past eight years. We formulate the knowledge, mechanism, capability system. Also, they have been recognized by some of the external investors. That gave us good space for the future improvement. Another side, another aspect is that we already find mature commercial mechanism for these new businesses. That provide a good foundational base for the quality of development in the future. We introduce more external investments that will provide us with more resources. In terms of the speed of development, we have more resources to support now. Thirdly, in terms of how to control the quality of the assets to turn non-efficient assets into efficient assets, we have already accumulated experience in that regard. Those things will be turned into profit later in the future. The capabilities of keeping control, improve efficient assets, so that the development operation businesses will be developed in a more sustainable way, and efficient will be kept ensured. For the above mentioned three factors, they will help us in different ways. They will form a synergy, a virtuous circle. Of course, a lot of things are, you know, easier said than done, but when you really put into action, you face the challenges. But when we form efficient assets, we will, that will take different mindsets, like a builder, like a designer. Different perspective are all needed. In terms of, mindset, in terms of investment, in terms of the positioning of the product, design of products, production, operation, content provider, service provider, and space layout design, competitiveness accumulation, we have all accumulate our knowledge base. also, we believe that we have already paid the majority of the tuition, and we have won recognition from some of the external investors, and those external investors will help, will support us with resources for the system and our sustainable development. They will be more like a whistleblower in the future, help us, you know, remind us when things are different. Of course, the process is long, but it's a good thing that we're on the right track. It's just a matter of time when we see with good results be presented. We formed our capability, our system of knowledge. This is our base. Of course, there are different challenges, like Mr. Yu Liang mentioned, like commercial business, development business. Also in rental apartments, there are losses. These things, these challenges will be. Once we solve it, then we will accumulate knowledge. That will be turned into a basis for the future growth. In the long term, we are confident for our performance. In the future, our management team are, you know, constantly reflect and brainstorming together. We are confident. Just like Mr. Yu mentioned, like we have a foundation from the internal side and external side. From the internal and external, we have good, ample resources for strategic development. We are, you know, sober-minded. We already realize our shortcomings, and we are taking actions to address those issues to form more efficient assets, qualified assets to improve the overall capability of management operation. We're not just saying that, we'll put them into action and address the issue. We are welcoming more suggestions from investors. Thank you for your care. Thank you. Thanks for Le Jiadong. Thanks for your question, and hope that the response can also be working for other audience who may have the same question. Let's continue with the next question. Coming next, let's welcome Zhang Liang from Shanghai Securities News to raise the next question. Mr. Yu, good morning. Just now, you mentioned the operation and the service and business was doing well, and it started to become a new reservoir of the profit. But from the traditional revenue perspective, it seems that your operation and the service business won't be able to on par with your property development business. So how Vanke is gonna leverage different metrics to assess whether the operation and service business is still gonna to work well? Do you have any spin-off plan for this business, and how it's gonna contribute back to the shareholders in the longer run? Thank you. Thanks for Mr. Zhang Liang. You are actually asking a question regarding operation service business and how its revenue and profit can be on par with the property management, property development business. How about the future spin-off plan and what would be the value to the shareholders? Okay, let me respond to the question. As far as I can see, there are four small questions in one big question. You are talking about operation and the service business. Even if its revenue contribution cannot be on par with the property development, how we're going to assess whether the business successful or not? When would be the spin-off program being ready? Do you have the spin-off kind of a plan? Whether the spin-off probably gonna to work for the value enhancement of the group. I truly know those are some of the concerns for the investors. Let me just share with you some of my understanding. Where you can see Vanke is actually carrying the same weight for property development to operation and also for service. We are no longer only in the property development service, and we are a comprehensive solution provider. This is a big shift we made. It doesn't mean we don't believe the development business is still not able to identify new opportunity. Development business still have a lot of future opportunity to grow, but without service and operation business, it's very hard for us to seek for the future high-quality growth. Because the property development market still gonna to see the ceiling or the lid. Last year, actually, our total sales, 80% has already become a new ceiling for the property development market, so we need to be prepared. When the upper limit or the upper limit of the market is coming, how should we be prepared to diversify our business? For the past eight years, we have already been prepared for the so-called upper limit day to come, 'cause we already started to develop the operation and the service business. You can say that now, if we have less so-called incremental opportunities, and we're going to have more opportunities for the sellable resources. That's the reason we believe the service and operation business can actually bring us new opportunities. It's now very important. It's going to be very important too, and also have a huge addressable market to grow in the near future. How can we leverage financial indicators to assess the business? Yes, indeed. Financially speaking, operation and service business won't be able to on par with the development business. In the near future, majority of the revenue still come from the property development business. The profit still being hugely generated by the development business. From the profit contribution perspective, I think in the near future, the service and operation business is still going to be a big contributor to the profit. They have different size in terms of the financial part. For example, the development business is a huge market. If we don't take a look at the market size, let's also take a look at the revenue per square meter, where for Vanke, actually, the sales price for each square meter is CNY 60,000-70,000. Whereas for the long-term rental housing, the price is probably going to less than CNY 100 per sq m. While for property service, actually, it's around a few CNY per square meters per month. For logistics, actually, it's like, also CNY 1 or CNY 2 per square meter. From the revenue generated by each sq m of the property, actually, those business cannot actually be compared with each other. This is actually something I would like to share with the institutional investors so that it can have a new evaluation over this business segment. It can actually have a new model being set for this business. I was talking about the Haitian sauces, seasoning. I like Haitian Group a lot, and especially their seasoning product. Haitian, actually, their profit is only 30% of our profit in 2021, but actually, its market value is 80% higher than ours. It seems that CNY 1 of the corporate value of Haitian seasoning is different from Vanke's value. I found out many property management company, their profit is already higher than their parent company who dealing with the development business. Actually, if you take the same unit of the value in different business segments, it's very hard for you to compare which one is better or which one is not. In U.S., some developer and their PE can be 35 x, where their home builder, the PE is only 10 x. In Japan, for the comprehensive solution provider in property market and their PE is 18 x, where for the property developers, this is only 8 x. You can say, actually, the unit price in different business segments is already been quite different, and the market has already provided such a pricing mechanism. Why should we say that the same unit price in different market going to show different value? I think there are a few reasons. The first reason, because different business segment has different potentials in the near future. The market actually would like to give more pricing to those big addressable market. For property development, I think the market is going to slow down in the near future because of the few, the operator is already coming. For operation and service business, it is still a big addressable market with good growth potential in the near future. Just like Onewo. Actually, it was not only covering the property management, but also from the residential project to the community to the urban solution provider. Therefore, each segment will be able to generate great business development opportunity. Well, for sure, for long-term rental housing, it is more like from a zero to one story with big addressable market. The same as logistics business. As the city started to further expand and, customer may have the need for faster logistics delivery, and especially during the pandemic season. Actually, our logistics warehouse has been taken as a well-being, supporting supplier. So there will be more demand being generated by the society to support our business growth. That's the reason the value of each business segment are so different. Also, the growth story in each business segment are also quite different. Property development is a quite challenging market 'cause you sold a lot of property projects with a huge value, but at the end of the final day of each year and that year's performance already done. While for service and management service, it's more like a rotation process, 'cause you are going to always keep your existing customer base with more new customers to come. These are two different growth story in different business. The risk appetite is also different. Development business, with a huge fluctuation, be heavily impacted by the external market, where operation and the service business being less impacted by the external environment, with less fluctuations being done because it is a business with full certainty. Especially when internal and external environment changes in the capital market, we believe with those business, with less fluctuation, with much stable cash flow, would be highly appreciated by the capital market. I also notice a very interesting point that is about REITs. In the past, for developers, they dare not to actually have the heavy asset project too much. Otherwise, they're going to be heavily burdened, 'cause if you sell your development projects, you can only have some incremental business on your balance sheet. It's going to occupy a lot of cash flow in this way. When we are actually working on the heavy projects, we're going to be quite prudent. Well, nowadays, we have the opportunity of translating from heavy asset project into light asset project. Everything could be done through REITs. Besides that, REITs can only allow us to be more profitable. For example, the Qibao Vanke Plaza. From the initial investment to now, actually, we have a profit for a single project of more than CNY 3.5 billion. Actually, it's CNY 7 billion generated from one single shopping plaza business. We are more confident in leveraging REITs to well manage those projects to generate more profits. For operation and service business, even if now from a revenue and also from profit perspective, it won't be able to borrow with the property development business. I think shortly speaking, in terms of the profit and operation service business shortly gonna to be the big contributor. As time goes on, I think its revenue contribution is also gonna be pretty promising. That's the reason I would like to respond to your question in this way. That's how you're going to treat the different business segments we're dealing with. Especially, I hope our institutional analysts and also investors, we are more like a comprehensive solution provider. Hope that you can give us a rational evaluation. Sometimes we're growing our business, how can you also find a good mechanism to help evaluate the value of our company? This is also something quite interesting to discuss in the near future. How can we evaluate whether the operation and service business is going to be successful? First of all, IPO would be a very important milestone, 'cause if the business is mature enough, we'll be able to bring that business to the market. It's more like a grown-up process. When you grow up, you actually get into the job market to find a job to actually organize your family. IPO would be taken as one milestone event, and to evaluate whether one business success or not. After being IPO'd, as we believe the business grow up, we'll be able to seek for independent opportunities for that business. That is IPO. How the spin-off plan is going to work with our A- share market shareholders and H- share market shareholders? Why should we plan for the independent IPO or the spin-off? Because if a business started to grow mature enough, and we have multiple such kind of children as a different business within our umbrella, if a business grow up enough, you won't be able to take care of all the children within your family, you need to allow the children to go out for further development. Actually, we're in the property market. If we always keep those business within one key umbrella, and they probably don't have the further opportunity for financing, that's the reason we would like to find spin-off opportunities for those business, to encourage them to further develop in the market. Actually, regarding the value, we have two comments. First of all, we can actually feed the kid like a pig. You actually sell the pig according to the weight. If the business is getting mature, and you sell it out, and all the profits will come back to you. It can also nurture the business just like your son. Imagine one day, your son could become the Nobel laureate or scientist, not actually selling your son for the body weight. Your son's value could be evaluated by the know-how and competency he or she is. For us, we would like to treat all of our sub-business more like the sons and daughters of our family. It's very hard for us to evaluate our business. Just like one whole, you know that for Vanke, our brand. Actually, is it only contributed by the development business? Is it only for the property service business? It's yes, but not 100%. Where for Vanke brand, actually, is a combined brand and co-polished by our property development business and property management business. It's very hard for us to tell which one is more important than the other. Well, for example, the residential projects we manage actually now, half of them are actually not our own projects. It's from the third party. You know that, for Vanke, we have a pooling. Our property management company can leverage pooling as a very important way for us to acquire the customer. That can contribute more third-party projects to us. 'Cause currently, for the residential property we manage, around 50% of them are coming from the third party rather than from the Vanke parent company. We are also talking about Cushman & Wakefield Vanke Service. For the super high-rise buildings, half of them is being managed by the Cushman & Wakefield Vanke Service. We truly understand how to operate those ultra-high-rise buildings, and it's going to support our property management in the office building, where should we find the customer and where should we grow our business? Actually, the different business segment are actually forming a synergy. Talking about as urban service, we are now serving the city more, and our property development business are working with the local government. In this way, we'll be able to deliver a comprehensive solution to the city. We think that when sons tries to tell me that, or like each one of the son is very competent, we believe this family is gonna be more prosperous, richer. We think that for the contribution side, we hope that they are become the son like that. Okay, thank you. Thank you for Mr. Yu Liang's answer and Zhang Liang's question. Okay, let's welcome another question. Let's welcome Ken Yeung's question from Citibank. Good morning, I'm Ken from Citi. I just heard that from operational service business, you mentioned that the capital markets is undervalue its self-value. My second question is, for this business, can you introduce more about the way you make investment, your criteria of a return on investment, so that you can have a better value from the investor side. My question is specifically, you mentioned this business will need future investment. We'd like to know your criteria or standard for those investment for operational services businesses. What kind of underlying or projects that will satisfy your criteria? How will you improve your capability of investment? The second question is, like, how did you allocate your investment allocation, and if your... Thank you for your question. The first question is about the criteria of investment for the development operation business and how we allocate resources between development and operation businesses. Let's give the floor to Mr. Xiao Liu. Okay. Thank you. Thanks, Ken, for your question. Just like you mentioned, operational services business' investment is different than the usual investment in development business. The group takes that as important capability, also an important task. Also, the differences lies in, you know, in criteria standard, the style, but overall speaking, it all, you know, boil down to what is the value to the group. Overall speaking, we can, you know, look at three aspects. First of all is whether this underlying or project is compliant with the strategy of the BU or the group. Of course, the strategy has different stages, and we are asking ourselves do we have good, you know, product, good business models? For example, in logistics business, we prefer the cold chain storage warehouse in Tier 1 or Tier 2 cities. Also, for city delivery businesses, we like those businesses as well because we accumulate our client resources, and we are familiar with the model. We are familiar with that as well. We accumulate institutional client resources in that side as well. We will make investments if there's more population in that region. For products, we will focus on projects that have different... that satisfy different criteria. This issue will also be discussed at the investment committee. We will ask ourselves, will we, you know, devote more resources to support it. The second is the financial criteria. For financial criteria, what's more important is the external perspective. You know, different industries have different perspectives or criteria. You know, shopping mall, the net profits. The first criteria or what's more important is the NOI of the year plus one, the first year or year plus one. For shopping mall, there are a lot of investments for renovation. We will look at NOI, whether that can go back, you know, be higher than 12%. I mean, without leverage, 12%. This is about shopping mall. Then when we are discussing in the investment committee, the standard we will discuss is the reason behind the standard. For example, long-term rental, we invested, like, 48 projects and thirty, or thirty-something is light assets. For light assets, we discuss a lot of things like whether can we or what value can we create for the owners? Can we, you know, achieve win-win together with the assets owner? These are not just as criteria, but also we have to ensure that those criteria can be implemented. Operational and financial criteria are very important. In the past two years, we have made a reflection that the investment will need to have a good operation capability or management ability. That means the management style or management mindset needs to be very clear and needs to be leading. For example, logistics. You know, for operation, there's a mistake tolerance is quite low. There's a business model. Like logistic business, when you're building a high-end warehousing, can we build it rapidly? You know, one storage, six months, and two storage, nine months. Apartment, 90% of the occupancy ratio. Occupancy is 95%. Whether can we achieve it that, achieve those goal in six months? What are the actions to drive those goal to be achieved? It's also, we're going to discuss the things that we're going to discuss. In summary, the operational task from the industry's perspective, the leading operational task, and also financial perspective or financial target from the external market or marketed perspective. For Vanke the BU's capability is important itself. Vanke is a server for CD and rural development. The group has a lot of resource and capability to enable different BUs. For example, in Shanghai, Vanke signed a lot of strategic assignment with partners that help us or provided us with more opportunities in different cities like Shanghai. Development teams helped us, provided us with driving forces for, like, a CD service team. We also need, like, resources with strong sales team in different regions. Group also enabled us and helped provided us with a lot of opportunities. When we are serving the urban cities, when we are doing our job well, then we can provide more opportunities for good quality investment and eventually, that will create more value for the group. Thank you for your question. Now let's welcome the next question. Now let's welcome Mr. Huang Wanling from the Daily Economic News. You mentioned the return on investment and in the future, like, what. How can you control the investment pace and precise investment? Let's give the floor to Mr. Yu Liang, and then I will let Mr. Zhang Hai answer your question. In 2021, in the sales of our rental residential houses or investment in the residential housing, in the first half, our market was really hot, but the situation dropped significantly in the second half. In this situation, it's hard for us to control the investment pace. First of all, it's about the restriction from the external environment. Second, it means, you know, perspective or assessment for the future. We made reflection on our work. Some of our investment is good, some is not so good, some of them match the criteria, some didn't. We need more in-depth know-how, needs to be more rational when facing investment choices. We have some considerations. Actually, since last year, we made some preparation deployment for that as well. Investment quota was dedicated in the past to different regions. In this process, as Mr. Yu Liang mentioned, and people, you know, the regions staff could, you know, overvalue its opportunity. In last year, we stopped. We canceled this mechanism. We centralized this management. We centralized the investment quota opportunity for regions or areas that have more resources and opportunity or more potential. We made some tools. Like an investment map, those little toolkits to help make decisions. In this map, we can see that each city, we can see how it's like these housing prices is performing, how is its rental fees is performing, and that help us to make observation in the longer run to see the changes in the market trends, and that help us to make the decision as an important input. The second, also, that will be a more solid base when we are making measurement calculation for investment opportunities or returns. That provides a more secure guarantee for the calculation. For the cities within the map, usually there are central cities like or in the urban areas. For the discussion and evaluation of the investment opportunities, we make better control in terms of the investment analysis and evaluation. We will raise our criteria in terms like a financial model, business model return. We will calculate this return from sales. For example, in the past, the product will be sold after launch, but in this situation the market changes. We will make more accurate assessment and calculation. The return from the calculation is important. Personally, I also think a stable return assessment is also very important. Product model is important too. The product model, if the product model is not stable, then the calculation itself is not solid. If the solution or product design is, or if some of the indicators is not steady, then the financial calculation is, you know, related, is not stable either. For a big and complex projects, those problems will be, you know, reviewed in a bigger scale. These we will choose to raise more criteria requirements of the capability of project management. Do they have, you know, experts? Do they have this know-how or investments? After investment, we also raise our criteria as well. We will enhance the post-investment management. Besides the new projects or the new commenced project, actually, when we acquired a piece of the land, we started to work for the program to make sure that, if there's any problems being identified, we will do evaluation or correction plan in advance. That's all for my response to the question. Thank you. Okay. Thank you. Thanks for Daily Economic News. Let's welcome the next question. Coming next, let's welcome Lilei Tu from Haitong Securities, please. I'd like to thank the management team for giving me the chance to raise a question. Actually, I was listening to your feedback and, which actually, shows your confidence over the future business growth for the company. I also heard that, you're probably going to downsize balance sheet, or the asset disposal and how should we comprehend this point? Is it means that, how the asset disposal is gonna go down? And do you have any kind of a financing plan for this year? Well, for the capital market, the property market is on the downtrend. Did the company ever consider of further extending your asset scale and also to seek for opportunities for further investment? Thank you. Thanks for Lilei Tu from Haitong Securities. You were asking, how can we downsize the balance sheet to dispose some of the assets? What would be the financing plan we have for this year? Thank you. Let's welcome Mr. Zhu to respond to the question. Thank you. While talking about the downsizing balance sheet and also asset disposal, I think this is a term that many people may generate some misunderstanding. It's more like an expression only made internally within Vanke. Actually, we hope that our performance will be on the green bar of the three red lines policy. More importantly, let me just share with you what do we mean by the downsizing the balance sheet and the asset disposal. It's more like a financial term, but also an operational term. Purely from the financial perspective, there will be some misunderstanding being generated when you're comprehending this term. The term contains two parts, downsizing balance sheet and asset disposal. So how it's going to work in the operational environment? Financially speaking, we only talk about the statistics. Operationally speaking, we need to manage the variables well, so that we will be able to maintain our performance always within the green bar of the three red lines. It is also a combined term with different focuses. From the financial perspective, let me tell you what we mean by downsizing the balance sheet and also asset disposal. Actually, we are taking care of the balance sheet, especially we would like to further improve and identify the new source of the capital. The key I'd like to mention is to make sure that for business segment, we need to find the right source of the capital to support the business growth at different development stage. That's on the right side of the balance sheet, identifying a good source of the capital. Actually, for myself, I'm also in charge of the long rental housing business. I was so prudent on each of the streams of the capital. If I have a very high financing cost for some projects, it's not going to be cost-effective for our business, also not going to be profitable for our business. You need to find the right money to support the business growth, while at the same time making sure the streams of the capital could actually support the business in different development stage. It's better for the streams of the capital not to be in a big sum and also making sure the cost could be well-balanced. That's what I mean by talking about the balance sheet improvement or optimization strategy from the financial perspective. That was targeting the right part of the balance sheet. While asset disposal is more like on the left side. If you have a balanced supply and demand, that would be the ideal situation. More importantly, we are more like up to the criteria. Up to the criteria is the key for us to take care of the asset quality. We need to make sure in the process of production and management, we need to acquire the new projects and doing the right projects and also making sure we have sufficient resources conversion, making sure that our assets would actually be translated from a disqualified one into a qualified one and being converted from a low efficient one into a high efficient one. Only in this way we'll be able to make sure our assets up to the criteria or up to the standard. As long as you make sure the asset structure, asset size, and the criteria for the asset quality being well-managed, then your balance sheet will become more robust. You have a good source of the capital and high-quality asset, then all together, right off the balance sheet, you will be able to generate good profit. If you do good operation, good management, and good philosophy, then you can see that the profit settled and the profit growth will also be greatly improved. Ultimately, we hope that our cash flow would be abundant and with a rational level being achieved. That's the work we were doing from the past to now, and we also try to summarize what would be our advantage compared with other peers of making sure that we will always be able to outperform ourselves. Ultimately, we'll be able to make sure we have a healthy balance sheet to be made. It's more like a dynamic process. You need to make sure that you do good business, then you have a good balance sheet. You need to be well-prepared for the business. You need to deep dive into business to well manage the business and to work better on the left side of the balance sheet as a metaphor. Finally speaking, I always made a metaphor here. It's more like the seesaw or the teeter board we play in our daily life. The more competent you are and the better you can perform yourself on the teeter board. If you can improve your asset quality by complying to the standard of the quality criteria, while on the other side, right side, you should also have the good source or the stream of the capital to make sure that you have a good financing cost and by further reducing the financing cost. In the ideal situation, we have a good supporting point, high quality of the assets, and also we have a good financing cost being achieved. In this way, there will be a balance on the left and the right side of the balance sheet. If you have such a healthy cycle being achieved, then it will help you to further improve the revenue and the profit. The second part of your question, talking about financing cost, it was going down. Are we going to further change our financing strategy? Well, for sure. Ultimately, what we're trying to do is to develop the business, find a good stream of finance to support our business. For the operational business, we need to find the so-called long-term investment, first-hand investment, and patient investor, where it's different compared with the development business. Making sure that we have a good investment being done with high quality and by making sure our performance always rest with the green bar of the three red lines. As long as we grow our business, we will surely probably have more financing be done in the near future. But we should also well manage the structures for the duration and also the short and the long-term debt. In this way, it can help us to find the right matching between the streams of the funds and the corresponding product. Chairman Yu reminded me again and again, if you do good business, money will come to you naturally. All kinds of the capital will actually chase after you to support your business. Ultimately, what we need to do is to improve our business operation, so that in the near future, no matter for the equity-based funds or kind of debt-based funds. I think more opportunities will be there for us to work with financial institutions. We or our company is more like a comprehensive solution provider in the real estate market. We always would like to make sure we are the tier one supplier in this market. More importantly, we hope that we can construct, provide, and form qualified assets to the society. For our investors, we should also provide you actually the qualified transaction targeted project. This is what we can do to support the city growth, while at the same time to take care of our investors. These are the two engines we have in order to make sure we optimize our balance sheet and also improving the asset quality to make sure our investors and, our financial friends could actually be, served with the right target projects. Okay. Thank you. Thanks for Mr. Zhu for your answer. Let's welcome the next question. Let's welcome Qi Jimin from The Paper, please. Hello, management team. I have a question regarding Onewo. Actually, Onewo, even if the real estate market and the market is going down and also the internet industry is also not performing well, but, why do you still have the spin-off plan for Onewo? And, what about the progress for the spin-off plan? Okay. Thank you. Thanks for the question from The Paper. You are asking about the spin-off timeline and the progress for the Onewo. Let's welcome Mr. Zhu to respond to the question. Thank you. Thanks to the journalist from The Paper. Well, regarding the progress of Onewo's spin-off plan, actually, yesterday on the official website of CSRC, there's already made announcement. The CSRC has already give us the green light for this IPO program. That's the date of this IPO program for Onewo. Actually, last year, right after the shareholder meeting, we successfully passed the spin-off plan for Onewo. At that time, there were also some friends who approached us for certain question. I still remember when Mr. Yu corresponding to those questions, and he stated, "we are going to be spin-offed, as long as we become a urban service provider." Wherefore Onewo now is already a well-recognized urban service provider in the market. In 2018, we only have one project in Hengqin, in Zhuhai City. Now we have 40 projects successfully being established with very good momentum of growth in 2021. The business for Onewo is already mature. Well, you can say that Onewo is our property management company, and even if it's a highlight in the market, but I think the industrial nature has not yet been changed, even if there's some downward pressure. Onewo spin-off or it won't impact the rural kind of service industry that much. If there's a player who is going to position himself as a rural service player, that spin-off program is going to be more important to the market. Talking about evaluation, actually, now for the timeline of the spin-off, I think, 2022 kind of works better in a rational market. We'll be able to actually provide a rational pricing to a well-performed company just like Onewo. That's a response made by Mr. Yu last year. Well, for me personally, as Mr. Yu has already stated, whether we nurture our sub-businesses as soundly as possible, we hope we can take the so-called family thinking to nurture all of the sub-businesses we have as the family members. When your son grows up, you encourage your son to go outside to experience society. I think the external weather won't be that important. Only you need to believe your son is growing up a lot. Because we believe Onewo is capable now, and we can introduce in our side institutional investors to further consolidate its leadership in the market, to attract and retain the talents. Well, for our competition strategy, we are not there to grasp the window opportunities from the capital market. We only do this spin-off plan because our Onewo business is mature enough, ready to embrace the market. Well, IPO for one company is probably one milestone event in its development history, where it's more like of being translated from an internal BU to a well-established and listed company. Once Onewo's been successfully IPO'd, I think, in 2021, and it can actually support Vanke's strategy for Hundred Cities, Thousand Streets being covered strategy. On one side, we need to make sure that Hundred Cities, Thousand Streets strategy can allow Vanke to be further focused in 100 core cities in China with 1,000 streets to actually have the good development. While at the same time, we also would like to leverage Onewo's remote operation service to improve our service quality and efficiency. We are leveraging our own capacity to redefine the dimensions of the service we can provide. We are more like of drawing a virtual city upon the physical city. That virtual city will be called as Diechun. You can say that Onewo business, as well as its spin-off program, actually works with the urban development plan and the Hundred Cities, Thousand Streets strategy. When the market become more rational, you'll be able to provide a good pricing to a well-performed company. Also, we believe that this doing this at this time will provide a better opportunity for strategic investors. Okay, thank you for your question. Now let's welcome the next question. Now let's hear from Mr. Chen Xianping from Western Securities. I have a question from the accounting policy. Mr. Yu Liang just mentioned that under the cost method, the operating businesses have amortization of about CNY 8 billion. The financial statement is not fairly reflecting the investment on the operation business. In the leading companies in H-share, seldom does people use the cost method. In the future, will Vanke consider to use a fair value method instead of a cost method? You asked whether will we use fair value method. Let's give the floor to Miss Han Huihua. Thank you for your question. Actually, about the cost method, it's an accounting choice, whether no matter what choice you choose, it needs to have rational reasons. A lot of H-share company has used fair value method, but some of their peers choose cost method. Why does Vanke stick to this cost method? I think Mr. Yu Liang mentioned. This is also compliant with our strategy with, you know, focusing on cash flow. In one of Vanke's strategies that we focus on, what we are seeking profit with cash flow. While in terms of a cost method, I think we think that if the value goes up and without cash flow, then we'll be concerned, especially when the market is changing or market prices is changing. Of course, the fair value method will cause volatility to the financial statements. We will prefer those more prudent method of a cost method. Also, you mentioned actually cost method. Under the cost method, the depreciation and amortization of cost and expenses will cause changes to net profit or gross profit margin. Even though under this situation from the long term, in the long run, we think if we do our job well, if we create value, create good return and cash flow in the longer run, we think this value, this business is worthy to do. I would think that will be proven to be worthy by the markets. In the future, we will still stick to the cost method. Thank you. Thank you for your question and answer. Now let's welcome next one. Now let's welcome Mr. Yang Yi from Phoenix Weekly. Okay. I have two questions. First of all, how do you view these changes in the land acquisition markets? And will you think the land acquisition more focused on SOEs, and what role will Vanke play? And second, right now a lot of real estate market is showing difficulties in operation. There are a lot of rumors going in the market. And will Vanke, you know, be more active in terms of acquisition since the loan policy is getting tightened. Thank you for your question. You asked about the land acquisition market changes and whether will Vanke do acquisition. I will answer this question. I think a lot of the people are assuming that SOE is getting more aggressive, while private companies are kind of like withdrawing from land acquisition. I think there is one principle, is that the fundamental principle is that who can develop itself with a new model, new mindset or new growth model. In the past, the growth model is focused on rapid and using leverage, while anyone who stick to this old model will withdraw itself. In the future, if we are not blindly seeking speed or growth speed, and we are getting less aggressive with leverage, then we are transferring to a more prudential model, a newer model. I think those companies will have a role to play. You know, for the real estate market, there's more localized. The market is localized itself, so I think the concentration will be higher, concentration rate will be higher. In the market, there will still be a small and medium player in the market, because market itself, you know, is localized. For Vanke itself, what role will Vanke play in the market? Like I said, I think Vanke hopes that we can maintain our leading position in this market, maintain our position in tier one cities. Second, will we use the, you know, the time to acquisition, to do acquisition? For Vanke, there are two principles that we stick to. First of all, we need to guarantee the safety of our own self. We will not bring trouble to the market. Second, on top of the principle one, we will do our best to create more value for the market's healthy development. We'll pay attention to the relevant opportunity. That's my answer. Thank you. Okay, thank you for your question, and thanks for the answer as well. Now let's get into the next question. Although the meeting has been postponed, but there's a lot of questions. I think we will extend the meeting for a little bit. Welcome Mr. Chen from China Life. Good morning. I have two questions. The first question is, we can see that the dividend payout ratio has been raised to 50%. I would like to ask, will this ratio be kept at this rate in the future? The second is that you mentioned that, there's a repo plan and the price is about eighteen yuan, and that's lower than the market price. I wanna know whether you think this price is rational. Thank you for your question. You're asking about the dividend payout ratio, will that be kept at 50% in the future? Also you asked about the repo price is 18.727. It's lower than market price, and what's the reason for it? Okay. Let Zhu Xu answer this question. For this year, actually, BOD raised the dividend payout ratio to 50%. In the past, it's about 35%. The main reason is because the net profit attributable is down by 45%, and the group hope that this raise of a dividend payout ratio... If the dividend payout ratio can be passed by the shareholder meeting, we think the dividend payout will be like more than CNY 11 billion. In the past, we stick to our stable payout rate. The average is about 33% accumulated, is about CNY 49 billion. In the future, the rate will be kept between 35%-40%. In terms of a repo plan, I think a lot of our shareholders is asking the amount, time and price. For this time of a repo, we've been planning this for a long time. In the past, we've been considering the repo plan in March this year, within the nine months, the prices is going down a lot. I think the decline of the share prices is irrational, so company decided to keep up the repo plan. You know, March is the window of an annual report. There's a rule that before the 30 days before this annual report, we can't do this. We can't do this based on the requirement from the Hong Kong Exchange. We submitted the repo plan together with the annual results to the BOD report. We made the price based on the requirements. Let's welcome the next question. Ms. Li at China Entrepreneur. I have a question for Mr. Yu Liang. You mentioned that the reason for net profit going down, one of that is. Can you talk about the development of business at BU h eadquarters? What's the requirement for this BU? And I'm gonna ask Mr. Zhang Hai, what action they're going to take to improve the capability. There is still a lot of a big and major project that hasn't been revealed or unveiled, and in the future, what actions will you take to address that? Thank you for your question. You asked about how can the Development and Operation BU Headquarters improve its capability of management? The first question, my criteria for Mr. Zhang Hai actually is quite simple, is stop declining, grow steadily, stabilize. For the rest, I will let Mr. Zhang Hai answer your question. Thank you for your question. Let me answer your question. Normally, I think simpler the words is, heavier the task is. You know, September last year, the BU was established. One year before this, we have a similar organization. It's called like a task force or something. Then June, it is established a operation and development center. Then September, this BU headquarters was established formally. Actually, this process shows the market trend itself, you know, until the changes happen even more rapidly. On the other hand side, we actually one year earlier, we've noted that the group have also realized some of the shortcomings, weaknesses of the development operation businesses. I've been appointed as the Chief Partner. For me, this role it's quite challenging and I bear a lot of pressure. I'll just briefly talk about some of my designs or plan for the future. First of all, we will centralize this management, and it will be done in two aspects. First of all, product standards and criteria will be implemented and unified. Recently we've gathered customers' feedback, and we made them into product design. We made all plans for those surrounding these topics. For a good way is to unify all the standard of products. The advantage of one singular product will be replicated at a more larger scale to other products. For example, one sales office, singular sales office is done as a model based on model. Then we are advocating with this different model to present our capability better to serve our customer on-site better. For example, on lunch, we will provide noodle, and in the afternoon, we will provide like a high tea for customers, even if they're not buy anything, they can just sit with us here, having a coffee here and, talk with their friends. Then take a look at our products. This will attract more foot traffic. Under this situation, a lot of actions in the standard will be unified across the group, 'cause we hope to doing this, unifying this. We have teams covering multiple cities. We trying our best to unify the standard, unifying the way they're doing their businesses. Minimize the losses, improve the profit. Also, we spent nine months the past year, we initiated a plan called training plan. This training plan we are doing is centered around product positioning, product designing, operation and management. There were 7,400 people registered for the training attended the training. This year we iterated our product line, and that covers product design, payments, and how we discover customers value better. By doing this, we hope we can formulate like stable, unified standard doing all these things. For example, we have also initiated or improved. For those customer who actually have a strong demand, we are able to build the product to take care of their needs. We still hope that in the new product, they can have a sense of belonging to the brand, the customer, and also allow the customer to build their loyalty over us. If you unpack each of the project, you should also have a very good management efficiency. For our 1,430 projects, according to the difficulties and the complications, we have started to have the so-called cascading management. Each project has its own representatives and multiple control points. The code is actually generated by the system according to the property types as well as the financials. For example, for our 1,430 projects, the first name is P 1430. The longer the code is, the more complicated that project would be because it deals with so many observations in the plan as the control point. If one project is not up to the standard, then it will not be able to proceed to the next part. We'd like to manage well the project quality. Well, for my department, every month, we have 520 projects. We do the review and a scorecard ranking, and they make sure that for the contracted sales and the fee collection analysis to truly make sure that we are capable of finishing all the goals we have in our mind. We actually would like to say internally always, it's better to take actions rather than to talk about some big words. Just now, we have a journalist talking about a major yet complicated project. There are always a benchmark of our city operation capacity, but also a key for our management. For those major and complicated projects, we have 86 control points, and 80 of them are being managed by my BU headquarters from 2020 to 2024. We're also going to have 60 complex projects ready to be put into operation. The total GFA is 2.3 million. For those projects, they're going to make sure the operation content and spatial utilization are authorized. We will leverage resources internally and also with our ecosystem partners. We're going to form a synergy to make sure we can hit the milestone on the timeline of each project. For example, product design and positioning. Ultimately, we can build a very good benchmark project with good operations and high quality. First of all, the project need of high quality, good spatial utilization, and also good content need to be injected into each of those major projects. Only in this way we can do good operation, and only by having good operation we'll be able to be the so-called qualified asset within the portfolio. Well, for sure, a sense of the trust is also very important. Trust cannot be done verbally. Trust is being gained according to your actual practice. I feel pressure, and I feel challenges, but, I would like to, along with my team, to translate the pressure and the challenges into motivation. We have to be well prepared for those complicated and major projects. We have every confidence to believe our development business would stop from slumping down and be stabilized and start to rebound. First of all, the property development business still going to keep a GP margin of around 20%. We should also invest and acquire some new projects to make sure we truly translate the investment into the revenue and the profit to fundamentally safeguard our performance. The third point is that for the TOD, actually, we did a long-term efforts there. For this year, for example, and we also started to have the real complex being delivered and maintaining our presence and capacity in the TOD project operation and management. Fourthly, we are going to leverage the synergy from a different business segment, translating from a single project development into a regional development plan. Let me just explain that to you one by one. In the past, we have a single project that only be developed by one to seek for high quality development. I think we need to transform ourselves from a single project to urban operation. Especially, we need to have the whole journey and the comprehensive development in one region rather than just for a single project. We also would like to have a better spatial utilization, low carbon construction of the project to build an ideal module for the city for its future operation. We made a research and study for around four years, and we hope that in 2022 such a project would be landed, and which can also seek for the sustainable growth. Thank you very much. Okay, thank you. Thanks for the China Entrepreneur magazine for the question. You can see our meeting is being extended for another 20 minutes. Should we have the final question? Sure. Please. Now let's welcome the final question from Li Weihang from Asset Management of CMB Securities. The company was talking about the property management. Onewo is probably a comprehensive solution provider for commercial, residential, and the service area, but its GP margin is lower than the peers. How are you going to comment on that? Thanks for long-run [audio distortion]. M aturity, t he GP margin for Onewo is lower than the peers, so how are you going to respond to that? Mr. Zhu Jiusheng, would you mind to respond to the question? Thank you. Thanks for the question from Li Weihang. Regarding GP margin or talking about GP margin, actually, our financial report, we believe GP margin is something that every investor care about. As for Onewo, which is a ready to be listed company, I think there are two business sides. One is 15% and another one 60%. For other peer companies, because we have different shareholding structure and different customer base, but then there will be some GP margin difference. As for analysts, if the property management company become a more market-oriented and the business become a more mature, 15% of the GP margin would be taken as a rational level for property management. Onewo is actually within such a ballpark. The second point I'd like to mention is that from Onewo's perspective, especially from the residential project perspective, residential project is more taking care of the well-being of the residents. By having a good service and build high customer loyalty, I think it's more important than GP margin. Example, since 2020, when the COVID-19 first outbreak. Because of our high quality property management service, many residents started to donate for us. We don't take any penny of the donation from the customer we're serving from the residential projects, because in our property management fees, we have already included the high-quality service we need to deliver in period. Another point I'd like to mention is that around two years ago, for Onewo in property management industry, we started to actually disclose all the revenues we made for the special in the elevator in residential building. This is probably the first action we made in our industry. It's a new trend in our industry for investors and for our customers. We're going to be more transparent. Regarding commercial business, there's furious competition in commercial industry, especially ultimately, our contract renewal would be based upon the GP margin that the owner of the commercial projects would be happy to take. Actually, we are transitioning from the project-centric approach to customer-centric approach for commercial service, and hope that we can diversify our offerings to the client. In this way, we can improve the customer loyalty and also stabilize our GP margin in the longer run. Another point I'd like to mention is that for Onewo, a traditional property management service company, whereby stabilizing our service quality and having good customer reputation and satisfaction, I think not high, but stabilized GP margin would be something we need to face. For Onewo, actually it's now ready with the so-called three factors and also remote operation capacity. Nowadays, I think, what we would like to truly take care of is the service-centric strategy. We hope that we can build a 20-minute working distance hybrid service cluster by improving the density of the service by renewing our capacity. We'll be able to identify a new cost-saving strategy. Hope that we can improve our service efficiency in that regard. That can also help to stabilize our performance in the long run for Onewo. Thank you. Okay, thank you. I'd like to thank our investors and the journalists for your question. Hope the feedback we offer to you can actually help to take care of your questions. Well, right before the meeting starts, we also collected some question from investors and the media friends. The question we have for the QA session covered majority of the question list. If you have any further question, please send those questions to us. Thank you very much. Thanks for all the audience for this meeting. I would like to see you next time. Bye-bye.