Dear investors and dear friends from the media, good morning. I'd like to welcome you to join us for Vanke 2022 interim results announcement. The announcement will still be conducted in the online conference. Please access our official website and also BXF, the app, and also quanjing.com to watch our live streaming of this event. Before the announcement is being made, please allow me to introduce the management team with us here today. They are our chairman, Mr. Yu Liang. Executive and also chair, Mr. Zhu Jiusheng. CFO, Madam Han Huihua. Our VP, Mr. Liu Xiao. I'm the board secretary. My name is Zhu Xu. Ladies and gentlemen, for this announcement, it's going to be divided into two parts. First of all, I'm going to, on behalf of the management team, to give you the presentation regarding our interim result. Then we're going to have the management team to join us for the QA. Ladies and gentlemen, please allow me to walk you through the financials. I have four points to cover, the results overview, financial overview, business overview, and the future prospects. Please allow me to go to the first part. That is results overview. Please go to Page 4. Ladies and gentlemen, in 2022 H1, we have a very stable revenue. Also our operation business continued to grow. Our revenue stood at CNY 206.92 billion, grew by 23.8%. The net profit attributable to the equity shareholder of the company amounted to CNY 12.22 billion, YOY increase 10.6%. We meet the green bar of the three red lines, and the net gearing ratio was 35.5%. We still maintain the industrial leading weighting, and the cash on hand was CNY 141.07 billion, covering 2.3 times of the interest bearing liability due within one year, accounting for RMB 62.64 billion. The net cash inflow from the operation amounted to CNY 8.29 billion. The structure of the interest bearing liability continued to be optimized. Short-term borrowing accounted for 22.4% and 9% YOY decrease. The comprehensive average financing cost of the existing financing is 0.84%. The average financing cost of the incremental financing was 3.59% in H1 of this year. For the property development business, the total sales accounted for CNY 250.29 billion, ranking top three in 41 cities. Operation service business revenue accounted for CNY 24.11 billion, grew by 30.6%. Rental housing revenue grew by 12.3%. We have 170 million units in operation, ranking number one in China. For property service, and Onewo reached a revenue of CNY 40.35 billion, YOY growth of 38.2%. Its spin-off has already been approved by CSRC. Logistics and warehousing revenue grew by 39.1%, especially the cold storage business grew by 94.7%. The GFA of the cold storage leasable accounted for 1.62 billion square meters, ranking number one in China. Retail property revenue grew by 10.4%. SCPG, asset-light management provision projects, reached 35, and around 63.5% are the third-party projects. Coming next. Please go to Slide 5. I'm going to walk you through the financials. On Slide 6, we show you a table. In this table, we walk you through the revenue, which has already been introduced. You can see that our GP margin before tax is already 20.5%, down by 2.5 pips. Operating profit margin 60.4%, down by 1.8%. Regarding the interest bearing liability, it already stood at CNY 2,802 million and grew by 5.4%. Please go to Slide 7. You can see regarding their credit rating, we'll still be able to maintain our industry-leading credit rating. We stay with a green category or green bar within the three red lines. You can see that the net cash flow of operation reached CNY 8.29 billion. The cash in our hands is CNY 141.07 billion, covering 2.3 times of the interest-bearing liability due within one year and 6.1 times of the interest-bearing liability due in H2 of this year. You can see we'll still be able to maintain a very healthy growth. The short-term debt ratio is 1.5% and continues to be less than 40% for 21 consecutive years for the net gearing ratio of 35.5%. In the tables at the bottom, you can see we have still maintained the industry-leading credit rating performance. Please go to Slide 8. On Slide 8, I'm going to walk you through the interest-bearing liabilities. You know that even if we have a small increase on the interest-bearing liability, but the structure's been greatly improved. With the due within one year only accounted for 24.4%, down by 9% with a healthy mix. From the borrowing perspective, bank loan accounted for 58.9%. Bonds accounted for 24.5%. Other borrowings accounted for 16.6%. Other borrowings are actually the long-term bonds for the property management business. Domestic liability accounted for 76.8%, and overseas liability accounted for 23.2%. Please go to Slide 9. Regarding the liability, we'll still be able to maintain diversified financing channel with the low- level financing cost in the industry. We leverage debt and the bills and also further improve our liability cost in order to further reduce the financing cost. You can see that altogether we have already launched 90.4 domestic credit bond, of which the comprehensive cost of the three-year bond, including three + two years, is only 3.02%. As we're further reducing the financing cost, you can see that by the end of the reporting period, the comprehensive average financing cost of the existing financing is only 4.08%, with average financing cost of increments accounted for 3.59% of the first half of this year, and around 96.2% of the existing interest-bearing liabilities on the loan without pledge. You can see that, for the bank loans, actually it was also being greatly improved. Well, for other borrowings, it also be demonstrated on the slide. Other borrowings accounted to CNY 466 million. Please allow me to walk you through the business overview of H1 of this year. We're on Slide 11. This is the property development business overview. The total sales reached CNY 250.29 billion, down by 39.3%. The GFA of the newly started projects accounted for 10.688 million, down by 38.9%, completing 55.7% of the target. Completed GFA accounted for 40.437 million square meters, increased by 17.8%, with a 37% completion ratio. Even if we face a complex and challenging external COVID-19 environment, but we're still able to deliver 150,000 residential units. Among which 35% of those projects deliver at the same time with a property ownership certificate. On the right side of the bottom table, you can see we rank top three in 41 cities, ranking 1 in 60 cities, ranking 2 in 17 cities, and ranking 3 in eight cities. Coming next, let's also take a look at the Slide 12. This is actually showing you the financials of the development business. The total booked area is accounted for 30.102 million sq m. The booked revenue is around RMB 178.88 billion. The average settlement price is around 30,652 RMB per sq m. The booked GP margin is around 21.9%, down by 3.1%. With the consolidated statement of the group, you can see that there were 49.268 million sq m of the sold but not booked area, down by 4.74%. The contracted amount sold but not yet booked was approximately CNY 667 billion, down by 6.1%. Now, let me also share with you the investment. We adopt a strict, stringent investment standard to guarantee the quality. We carefully select the best projects which has stable regional markets and high profitability. The total land premium is CNY 38.68 billion. The land premium attributable to the company's equity holding is CNY 24.83 billion. The plot ratio based on GFA is around 8.078 million sq m. The plot ratio based GFA attributable to the company's equity holding is around 3.131 million square meters. The total plot ratio based GFA of the projects under construction and planned reached approximately 177.228 million. We also have planned projects around 37.154 million square meters. On the right side, we show you the top 10 cities with newly added land reserve, including Shenzhen, Hangzhou, Fuzhou, Changzhou, Lanzhou, Nantong, Hefei, Zhuhai, Zhongshan, and Ningbo. Also in the pie chart, you can see that the proportion of the GFA under construction and planning by different regions. On Slide 14, we also would like to walk you through the property development business with the strengthening project management by classification and categorization, and stabilized project output. In some key area, we also select some good projects to further iterate our residential projects. In H1 of this year, we have already improved 56 key projects. 50 seed projects we selected for product line alignment, where at the same time, for some complex projects with classification and categorization, and we also took a very strong strategy. We established a product center to make sure we have a product capacity center to optimize project based on investment amount. 193 key and complex projects has already undergone collective efforts for assessment, and we're going to consider the product team and the urgency of the stage to maintain project milestone and keep the projects on right track. In the bottom part, I show you the two cases from the development business. On the left side, that is Hangzhou Vanke Riyao City. That is the first batch of the future-oriented community in Hangzhou. It is also a TOD project during the Asian Games. It is going to be taken as a rehabilitation and catering center for the athletes. Right after the Asian Games, it's going to be converted into the office building plus residential plots. The settlement rate is 100% for this project, and it's going to be delivered right after the Asian Games. On the right side, that is Hefei Guanshan Yinxiu. It is also a complex approach with a residential kindergarten and it was referring to the traditional Chinese garden style, which is very popular in the market. The selling rate is already 83% when we first launched in April of this year. Please go to Slide 15. On Slide 15, we show you the delivery with the ownership certificate has been made. We continue to have the site opening events. We welcome our property owners to participate in the construction quality inspection and also to conduct a face-to-face exchange. Our customer satisfaction rate has been improved by 3%. We delivered 150,000 residential units. Around 70% of the property owner visited the site at least once before the formal delivery. Among 94 projects from the group's 30 regional branches achieved the synchronized delivery of the property and the property ownership certificate. This is also the first action in our industry, accounted for around 35% of the delivered projects with a 10% increase compared with 2021 during the pandemic. In order to further improve the contract assigning to the consumer, we also started to have online contract assigning. Around 27,000 residential housing units being signed online. It also started to have the building beautiful community with customers. In H1 of this year, 92 projects in 80 cities jointly constructed and built by the mode of self-governance by property owner and the governments. Let's go to Slide 16. On Slide 16, we show you the rental housing business. You can see that we're now managing 210,000 long-term rental apartments, which has already become the first choice in the era of renting and purchasing. First of all, we have the industry-leading performance in H1 of this year and for Port Apartment. The total revenue achieved CNY 1.48 billion, grow by 12.3%. 210,000 residential housing under management increased by 170,000 units on build. Even if occupancy rate has been impacted by pandemic, but in Shenzhen, Beijing, Tianjin, Chengdu, Wuhan, Xi'an, Hefei, the occupancy rate is more than 95%. Especially in Shenzhen, we have around 40% of the total rental housing, the occupancy rate is more than 96%. We acquired 10 new projects in 7 cities, including Shenzhen, Guangzhou, and altogether 9,674 units. It will also be able to have the leading customer acquisition and operational efficiency. Our customer acquisition for the self-owned channel is already 79.9%. We also have 2.34 million people registered online. The marketing expense ratio was 1%, down 0.4 percentage points year-on-year. We also provide full service and quality home. We serve more than 600,000 customers, and more than 95% customers were satisfied with our service and led 56% renewal rates. Now let's go to Page 17. About the rental housing businesses. We serve hard-working residents with heart and continue to deepen the connection with corporate customers. We strengthen the thousand service capability for B-end customers and implemented account manager system for corporate customers. We acquired 160 new corporate customers. Customized rental services have been provided to more than 1,100 companies' employees, which contributed 16.6% rent, and that was an increase compared with last year. On this graph beneath, we also show some of the corporate customers, some of the logos and names and some cases. We can see that for Tencent, we have 1,206 rooms on leasing city. For DJI, we rented 967. For SPDB, we rented 604 rooms. For Huawei, we total of 905 Huawei employees in Shenzhen were covered. ZTE, 533 corporate customers are now living in our rooms. PCL in 2022, employees with doctoral degrees were moved in. Shenzhen Port Department, Yongchun program provide customers extra services. Number of residents totaled 314. Now let's go to next Page 18. For the rental housing business, we follow national policies and actively join subsidized housing programs. In response to national policy on subsidized rental housing, company played an active role in construction and operation of local subsidized rental housing programs by joining hands with governments and enterprises in institutions across China. There's a graph that shows China subsidized rental housing programs and also another case in Tianjin. Now let's go to Page 19. Now we will talk about the Onewo businesses and its performance. For the H1, revenue reached CNY 14.35 billion, and we showed solid revenue growth. Year-on-year grew 38.2%, of which, 8.08 billion was generated from community space living consumption services, representing an increase of 34.8%. Revenue from commercial and urban space integrated services was CNY 5.11 billion, representing an increase of 39.7%. Revenue from AIOT and BPaaS solution services was CNY 1.16 billion, representing an increase of 59%. Along with high growth, we also provide high quality business expansion. In the first half, The Vanke property service covered over 120 big and middle-sized cities in China, including Hong Kong, serving 4,096 projects. For Cushman & Wakefield Vanke services, we focus on internet, high-end manufacturing, finance, and strategic industries, serving 1,929 projects. For CityUp, we served more than 25 cities, managing like 59 projects. Then in July 18, 2022, Onewo overseas listing application was approved by CSRC. Next page, we can see that for Onewo, we dived deep into existing markets, consolidated residential consumption basis, and launched Butterfly City strategy, and provided our management capability. Butterfly City is a core strategy for Onewo for the next decade. We were centralized in the streets and cover like 20-30 minutes stop reach as a service diameter with projects under management on street level. Breaking down the barriers among communities, business, enterprise, and urban space services, providing a comprehensive solution to all spaces in one sub-district through team sharing and fast response. By strategically selecting communities, integrating the property management service facilities, pro-residents project business, enterprise, and urban spaces synergetic operation and economies of scale, taking new opportunities to establish long-term operation between citizen providers and customers. We will also introduce a case in Shenzhen, Bantian sub-district. In this district, Onewo will manage 11 residential projects and 7 property and facilities management projects, and serving 22,727 households, accounted for 36.1% of the total households. We have covered an integration of supply chains, resources of the Bantian streets, and also we utilize this technological techniques. In the first half, the gross profit margin registered a year-on-year growth of 9.6 percentage points in this district. Onewo will continuously explore home decoration and home improvement services. Newly contracted sales per month grew from CNY 1.1 million in Q1 to CNY 3.1 million in Q2 at Bantian streets and achieved 180% growth. That shows that serving good quality customers, services can stimulate consumption. Now let's go to Page 21, and we would introduce our Cushman & Wakefield Vanke Service. In the first half, despite the complicated and challenging external environment, Cushman & Wakefield Vanke Service continued business expansion against the trend with more than 200 new projects. The customers come from high-end manufacturing, TMT, finance, new infrastructure, retail consumption, and we have 6 new Fortune 500 clients, 5 new unicorn clients. More than 70% of the tendering gain rates for new ultra-high rise projects in 2021 first half. For example, Shenzhen Nanshan Cloud Technology Building, Shanghai Riviera City, Guangdong GF Securities building, etc. Now let's go to Page 22. Here we will talk about our urban space operation and efficiency enhancement. In terms of the urban management, we provide the whole area intelligent operation and provide the stable quality and enhanced efficiency. We integrated multiple systems such as combine and schedule into unified working dashboard, and also include something like RM combined. To utilize this platform, we covered the whole procedural scenarios, including schedule making, operation monitoring, quality evaluation, supply and report analysis. Here, there's a graph that shows some of the intelligent operation dashboard of the other assets company. In terms of the long-term efficiency, efficient operation practice, we also made our exploration. We have a three initiative. For example, three streams of funds from residents, society, and government fiscal budgets to provide stable capital support to effective operation of old communities. For example, Wuhan Jiang'an District improved the ranking from 90 to 50 after taking these services. Now let's go to the next page. We're talking about logistics and warehousing. We showed high growth of cold chain business, and we won customers' praises through operation services. The revenue of logistics businesses and warehousing reached CNY 1.86 billion, with year-on-year growth of 39.1%, and revenue of cold chain totaled CNY 820 million, and manage and operate 157 projects in 47 cities with a leasable floor area of 11.64 million sq m. Among them, high standard warehousing covered a leasable floor area of 10.02 million sq m, and cold chain logistics park 1.62 million sq m. Actively response to churn of customers, occupancy rate of stable state of high standard warehouse was 91%, and we established competitive advantage by operation and success of core. We continue to improve the quality and efficiency of operation service, established competitive advantage with operation service at the core, and revenue for operating sites of the storage and delivery service increased 138% year-on-year. We established cooperation with Walmart, Tyson, Meituan, and many other, like, leading companies across the industrial park. Now let's go to Page 24. For logistics and warehouses, we seek to win over customers, increase cooperation to share with quality services. For example, in Baoshan, China. In China, VX was recognized for its quality and safety control and professional operation ability. VX tops Ring's supplier system in terms of KPI services and with Ningbo campus ranking number one for two consecutive years. For Walmart, we won over customers with good services. VX Logistics is deeply involved in Walmart improvements of supply chain efficiency and has rolled out six service models, namely fresh warehousing distribution, room temperature warehousing and distribution, imported beef, large warehouses, and fruit picking in place of origin, perishable e-commerce distribution, and warehousing processing. Cooperation share increases about 121% YoY. We also solved customs problems, we ensured resilience of supply chain. This branch with high responsive to customer needs. VX, we helped customers to solve problems and ensure the resilience of the supply chain. Facing lockdown in Shanghai in April, we then the team decided to move operation from Shanghai to Ningbo. Thanks to its professional operation ability, VX Logistics responded quickly and set up a special team. We shipped 78,000 boards and packaged about 227,000 boxes. Now next page. For the retail property development and operation, we focus on value enhancement and reinforce competitive advantage in the Yangtze River Delta region. We showed robust growth. The revenue was CNY 4.01 billion and Y on Y increase of 10.4%. Occupancy rate of the projects, which has been in operation for over one year, was 91.6%. Revenue of the commercial projects managed by SCPG totaled CNY 2.75 billion and Y on Y increase of 12.2%. New projects brought handsome returns for the first year NOI of Shanghai Nanxiang InCity MEGA, which operated the year before Wenzhou InCity MEGA and Hangzhou Olympic INCITY operated in the last year, all exceeded 6%. Reinforced competitive edge in the YRD region. In the Yangtze River Delta. This region has contributed 45% revenue with an annual revenue growth of 12.2% on average in the past year. Sales in this region recovered rapidly after the lockdown was lifted. Now let's go to Page 26. In terms of this, we provide differentiated products, and so this is tap into local culture and customer characteristics. In Shanghai, Caohejing InCity, the GFA of this project is 56,000 square meters. It was not big, but we built a young and trendy hub with small size, but we provided a big buzz unveiled on May 20. We catered customers' needs of the property owners in opening 252 days from signing to operating, to opening. The operating rate was 92%, ranked top one in the listed CBD of Dianping on opening day. On this graph on the right-hand side, it shows Hangzhou Olympic Sports Center Impression City. The GFA was over 240,000 sq m, was a shopping mall with the strongest holiday vibe unveiled on September thirtieth, 2021. Created five never seen before customers commercial space in Hangzhou to upgrade the product strength. 97% of the shops were in operation. In the first month, sales reached RMB 353 million, and that was the top one by popularity on Dianping app. Sales efficiency of the whole site exceeded 2,600 sq m per month. During this pandemic period, we stick to our social responsibility. In Shenzhen, Shanghai and Guangzhou, we responded to the needs from the governments and communities. We rallied a lot of our, like, services as volunteers. For example, in Shenzhen, we rallied 800 warriors to join this anti-pandemic effort in Shantou. From February 15, 2021, with CDOP as the provider of the urban operation services, we gave full play to the horizontal collaboration and vertical connection. With an 800-strong team, assigned 700 people each shift based on positions to provide flexible operational response to fatigue and emergency. In Shanghai, we rallied 45 volunteers to take over the paralyzed old communities. We'll also be able to take care of the waste disposal and then that can help to provide the temporary property management service. In April of this year, when Baiyun District is being hit by pandemic, we also organized 300 people to go there to make sure that we have the supplies being delivered to each household during the quarantine period at the time. Well, during the pandemic time, other businesses were also developing very well. For example, like VX Logistics will be able to leverage the flexible supply chain to guarantee the continuous delivery of the business. We have more than 700 employees stationed in the parks to ensure the supply despite the health risks. Regarding rental housing, we also meticulously implement the prevention control measures, proactively assist the community to prevent transmission. In Xiamen and in Foshan, we also have international health station operated by port department, providing quarantine service to more than 10,000 inbound travelers in H1 of 2022. Please go to Slide 29. I would like to report to you on the ESG achievements made by Vanke. Regarding the green development, we still be able to have the industry-leading green building practice pursuing sustainable development. In H1 of this year, 2022 accumulated GFA of Vanke's property meet the green building standard exceeds 297 million. We have 6 projects with LEED Platinum certification, 2 projects with LEED Gold certification, and 21 projects with three-star green warehouse certificate. In H1 of this year, we have 60 projects awarded with a three-star green warehouse certification. For example, VX Logistics Hangzhou, Qiantang New District, the cold chain logistics industrial parks being certified with the LEED Platinum certification with international highest record. In Fengxian Lingang Industrial Park, we have already obtained the BREEAM certification of zero carbon. It is also the first logistics park that is certified with zero carbon program in China. Well, regarding SCPG, we have one project with LEED Platinum certification, two projects with a LEED Gold certification, and nine projects with one star or two star certification. Coming next. Let's go to Slide 30. We continue to improve our ESG practice. We take initiative to set up a multidimensional sustainable development goal, and we included 50 sustainable development goals, including emission reduction, waste reduction, energy use, climate change, customer and employee suppliers, and other aspects, setting goals and charting the course of the sustainable development in the near future. We also conducted the climate change risk analysis. Based upon the information disclosure, we will be able to characterize the task force on climate related financial disclosure, which will form a climate risk mix, integrate the climate change counter measures into the entire life cycle of product design, material procurement, and project construction and operation. We also support green finance. We issued two batches of the three-year midterm green notes with issue size of CNY 3 billion and CNY 2 million. The coupon rate is 3% and 2.9% respectively. We still maintain BBB MSCI rating and also rated low risk in sustainable ESG rating. We will also continuously be included into HSCASUS and HSMHSUS. We also be included into Hang Seng ESG 50 Index. We also win the New Fortune Award, it is New Fortune Gold Board Secretary Selection Best ESG Disclosure Award, and also be included into the Forbes China 2022 China ESG Top 50. Please go to Slide 31. Regarding the social responsibility, we consolidate and expand the poverty alleviation and the rural revitalization. In July of this year, we joined the 603 development plan for rural revitalization. In Shantou and in Shaoguan, we also help to promote the rural revitalization demonstration pilot project with the kindergarten projects being taken care of by us. In the first part, I'm going to walk you through the future prospects. On Slide 33, we show you the business strategies. In H2 of this year, we're going to co-focus on rebound to stable then to enhancement. First of all, we will maintain healthy financial positions through stable operation, continue to strengthen the cash flow management, optimize the debt structure and financial cost to maintain our industry-leading credit rating. Secondly, for the development business, we will give full play to the coordination and management role of the headquarters of development and operation headquarters, building capacity sharing, unifying standard, and refine our management mechanism to enhance overall operation, ensure the smooth delivery of the projects, and maintain good customer service. Thirdly, the operation efficiency and competitiveness will continue to be improved by the operation and service business. To be specific, regarding property management development, we have four parts. Promote sales, pay close attention to the local competition landscape and the rapid change in the market. Adopt a proactive sales strategy, allocate marketing resources in pre-sale approach and settle down the commission payment on time. People in charge at all levels need to be engaged in the action to accelerate the development of the key projects with corresponding solution. Secondly, committed to project delivery and improve customer service. Applying the mechanism that features capacity sharing, unified standards and lean management in resources allocation, product planning to improve our competitiveness. Fourthly, improve the accuracy of investment decisions to enhance the quality of the investment, strengthen post-investment management to secure future performance from the source. Regarding rental housing, there are two actions. Continue to expand the management scale by leveraging the strengths brought about by the integration of industrial policy, construction and operation. Secondly, maintain a leading position in the industry in terms of the operational efficiency. Make the growth rate of the operating profit higher than the revenue growth. Achieve profit under the cost method in 2023. While regarding Vanke, we have three major actions. The residential property business continue to improve the world-class service to uncover opportunities in the existing market and lay the foundation for long-term competitiveness by focusing on regional network. Promote the integration of the Cushman & Wakefield Vanke Service to meet the diverse needs of the corporate customer. Then the City UP model will continue to expand and expected to launch 100 urban service projects by the end of this year. Regarding logistics and warehousing, we have three actions to go. Keep the warehouse network of the high-standard warehouses and cold storage in cities that are crucial nodes in logistics. Consolidate the leading position of the cold chain business and shift from warehouse operation service to comprehensive supply chain management solution in the field of chain restaurant, shopping malls, and supermarkets. Deep dive in high-standard warehouse consumer mix. Continue to engage manufacturing customer to provide the comprehensive warehousing and logistics supply chain solution to industrial entities. Regarding retail property development and operation, we have two major actions. Strengthen the competitive edge of the new generation projects. Maintain the leading competitiveness of the ultra-large experience center based on Nansha InCity MEGA and the Wenzhou InCity MEGA to maintain our top league. Pursue a balanced mix of the asset-heavy and asset-light structure, and keep expanding the management skill and brand influence in key cities. Ladies and gentlemen, that's all for our report regarding the H1 performance. Thank you very much. Okay. Ladies and gentlemen, coming next, let's get into the second part of this meeting. Now we're going to have the QA. Please, meeting secretary, to give the instructions to the investors. Ladies and gentlemen, if you'd like to raise a question, please press star and one to queue for the question. Please press star and then press one to queue for the question. Thank you. We have 29 people in the line waiting for the question. For each speaker, you're only allowed to raise two questions maximally. Let's welcome Le Jiadu from GF Securities, please. Thank you very much, and thanks for Vanke management team. Thanks for giving me the chance to raise a question. My name is Le Jiadu from GF Securities. I do have a question, because in the shareholder meeting, and Mr. Yu has already mentioned, and I think the bottom stage for the property market is already being hit, and also the June sales started to be recovered. In July and August, even if some local government started to launch the stimulus policy, but actually from the sales perspective, I don't think the market is performing very well, and the consumer confidence somewhat is being compromised. Mr. Yu, how are you going to comment on the property landscape, I mean, the industry, what would be the future for this market? Is there any policy that can support the property market to go out of this difficult period of time? Thank you very much. That's all for me. Thank you. Thanks, Le Jiadu from GF Securities. You have a question regarding the comment on the property market and policy, how Vanke is going to comment on the landscape we have now and what will be the outlook. Is there any policy that can support the industry to be recovered, right? Thank you. Let me just answer this question. Yes, indeed. Around 2 months ago, on 28th June, on our shareholder meeting, I have already mentioned. In short run, the market is already hitting the bottom, but it really takes time for the market to be recovered. Till today, I'd like to stick to this judgment. Why should it be? Indeed, statistically, there's a gap, and the June sales started to go up, but in July and August, the sales started to reduce. In June, you know that the quarantine policy had been lifted, and due to some seasonality reason, each company would like to hit a good sales. That's the reason in June you see that the sales started to go up. Another point is that since July, we started to see the mortgage boycott. There are some troublemaker, real estate developer who can't complete the projects on time, which truly compromised the confidence of the consumer. You can also see that the rigid demand in the market is still there. I think that the property market is still gonna to be a big addressable market. I always repeatedly tell people, the more projects you deliver to the market, the more consumer you're going to attract for the rigid demand consumer. In other words, I believe that people need to improve their housing and living quality by moving from one flat to another. In our existing market, according to the natural iteration rules, every year around 1 to 1.1 billion square meters of the projects need to be retrofitted. According to the project commencement in the market, I believe that for this year, for the expected construction GFA still cannot meet the natural iteration of the housing product in the market to improve the quality of life for the residents. We should also consider the needs for the urbanization along with the quality improvement. I think, for the market. When it's already gone through the gloomy period at the time, the market is going to start the self-recovery. I have every confidence that people are still pursuing a high quality of their life to improve their living environment. The rigid demand consumer are still there in the market, and it's still a big addressable market for us. We're talking about the property market. Stabilizing housing price, stabilizing the property land price, and stabilizing the expectation are the principles. The housing price and land price has already been stabilized, but the expectation has not yet been stabilized yet. We have multiple ways to resume the confidence for the consumer in the market. For example, compared with a short-term policy for Vanke, we really would like to pay attention to the policy for the long-term sustainable growth of this industry. For example, we have already entered into the new stage of the development. The supporting facilities provided to the open space started to be diversified. You know that for Vanke, we did provide a lot of urban lifestyle and facility service. Those emerging industry can also support our revenue to further grow. All those services are the long-term one with limited margin, and that need the policy be supported from the government. For example, we need to make sure the land price is not gonna go high, interest rate, and should not go up a lot. For example, like the rental housing business at the very beginning, and when right before the renting and living policies being integrated. At the very beginning, probably tax accounted for around 20% of the rental income from the rental housing business. That was a few years ago. It is irrational. That practice has already been adjusted by having new policies from the central government. The inflow and outflow of the cash should also be matched. You know that rental housing is a business with limited margins. Can we pay for the land price phase by phase to the government? How about the rent collection cycle? For example, if it is 10-20 years, do we have any financing cycles be prolonged or being further extended to work for those projects? Can we have some rates related to capital to make sure we do have some exit mechanism for those assets in making sure we can diversify the business. We also hope that everyone along with us can explore this new initiatives and innovation to further help this this real estate with industries develop and also explore new initiatives that will be helpful. We remain hopeful for those initiatives and policies to be launched. Okay. Thanks for Mr. Yu's answer. I hope that I have already answered your question, Mr. Lo. Now let's get in the next question. Now, let's welcome Mr. Zhou Yu from Wall Street news. Good morning, management. My question is that Mr. Yu also mentioned about these markets, and I wondered from the Vanke's point of view, you know, you've seen the sales has been down, and as we can see from the numbers. For the sales of Vanke, what's your view, Mr. Yu? Also for the sales over a year, what's your assessment and prediction? If the market continue to be at a low level, what are your corresponding actions? Also, you can see in terms of the gross profit margin has also been pressured. Your gross profit margin will also be pressured and influenced. When do you think your gross profit margin will stabilize and improve? Okay, thank you. Thanks for Mr. Zhou Yu's question. Your questions covered the sales of the company and the gross profit margin, and you want to know our prediction of our sales over a year, and you want to know when our gross profit margin will improve. I will give the floor to Mr. Zhu to answer your question. Thank you for your question. From the first half of this year, the sales year-on-year has decreased, and we still remained in the tier one group in the industry. We believe in the second half, the performance of the sales will be better in the first half. There are two reasons. First of all, we believe that after the market, you know, has bottoms out and recover, it will be the trend. We would take actions, and we will make arrangements in terms of the responsive actions. We also initiate this as a sales team task this year. We will improve the commission settlement speed, and we will also adjust the sales policies, and we will consolidate sales capability, and we'll improve short-term training in terms of sales capabilities. We are destocking. We've taken some actions, and we achieved results and improvements. During this process, we think that there are different branches and different cities. They have shown actions that are quite accommodative to the market changes. For example, the construction site opening. We did this launch previous year, but this year we enhanced our efforts. For example, in Wuxi Vanke, we also called on an action that people to buy our houses. We provide quality houses. For these customers, we take the customers no matter online or offline, when they have the willing, when they show interest, we take them to the construction site to let them see the progress of the construction site. So, that improved the conversion ratio of the potential customers. In the construction site, we see the conversion rate is about 30%. If for regular customers, the conversion rate of the potential customer is about 10% to 15%. We think that the construction site opening program was quite helpful. That boosted the confidence of customers and let customers see the quality of construction and improved the conversion ratio. Mr. Yu mentioned that there are solid need from customers. There are, you know, improvement needs. For those people have this improvement need, they need to sell their own houses to buy another one. We are thinking, how can we, you know, speed up the process, so they can sell their own houses quickly, so they can buy our Vanke's houses quicker. In this process, we need to give full play to the capabilities and expertise of our staff to help customers. For example, in Dongguan this year, and there's customers for a project in Dongguan, there are a lot of our customers with improvement needs, and then we will help them to coordinate the buyer and seller, and we will facilitate the deal process to help the loan making from the bank side, to make sure that the loans will be paid in time, issued in time. When the customers already sold their own houses, they got their money at hand, so they can buy our houses and make our, their own decisions quickly. This is Dongguan's cases. For this kind of customer, they're about 20% of customers, representative of the total. We made our, you know, our own actions to help them. Previously, we've taken actions. We've taken actions, but not this, you know, intensively in the regular markets. The sales process started when the customers started to visit us, and then ended when the contract was signed. When, you know, this time, things are pretty difficult. Sales is becoming more challenging. We need to coordinate and connect different things to facilitate and smoothen things. We need to do more. We need to do more in the beginning, for example, that's what we call preparation of sales. Previously, we didn't. We wasn't that worried about customers. You know, there will always be customers visit us. When customers visit us, we will just do our own work. You know, at this time, we need to think, where are the customers? How can we make them to visit us? This is what we call the preparation of sales, and we need to do more in this difficult time. This year, we did a lot of the such things. Preparation, that's what we call it. We improved our capability. We accumulated more in no matter online or offline. We merged different capabilities. That's what we call O+O. We established an internet, like, based operation company. Afterwards, every day, every week, every month, we need to review our work. In the past, like and we would do our review, like, what we did is right and what were not so, you know, good and what can be further improved. We need to continuously review every day and we will write journals, like reports, daily reports, weekly reports, monthly reports. During this process, we accumulated our capability. In a nutshell, in this difficult time, we've definitely faced more challenge in terms of our sales capability. We think we are growing continuously in terms of this sales capability. For this real estate market, we are not dealing with overall market, but rather we need to find the right customers. Recently, we heard that, you know that gross profit margin is being pressured for a while. You know, the market was not quite promising. The gross profit margin was pressured and influenced. For Vanke, the priority is to ensure the safety of operations. That's our priority. In terms of the gross profit margin, we think it's a short-run phenomenon. In the long run, the gross profit margin needs to reverse to the average mean gross profit margin level in the industry. For the real estate industry, the gross profit margin will revert to the mean level. Under the circumstances, whether we can provide good services or low-cost products, that will decide whether a company can outperform and whether a real estate developer can achieve higher return than normal. We are making our efforts continuously. Thank you, Mr. Georgie, for your question. Now let's get to another one, the next question. Now let's give the floor to Mr. Zhang Yu from CICC. Good morning, management. I'm Eric from CICC. I'm glad to see that Vanke has shown a stabilized and improved performance under, you know, not so good market circumstances. My question is about bond and debt. Vanke was a top player in this market, and you have previously always paid much attention to the overseas bond issuance. In this market, we've seen that overseas bond has been pressured, especially like your overseas bond prices being down, is going downwards. My question is then what is Vanke's assessment of this market? What's the influence gonna be on Vanke, for example, like, in, like, a month later when if the overseas bond market can't stabilize, and what's your action in terms of the payments of U.S. bonds and arrangements of the bond issuance? Thank you for your question. Your question is about our overseas bond, and you are concerned that the market and the prices of the overseas bond is going down, and that will influence Vanke. Your question is what is that? What if the market cannot stabilize in time, what is gonna be Vanke's action? I'll let Mr. Han Huihua answer your question. Thank you for your question. I think for the U.S. bond prices, volatility is more, like, due to the market reason. It's not due to the fundamentals of Vanke itself. It's not, you know, because of Vanke's financial things or anything like that. We maintain the healthy financial situation. We are still, I think, confident in terms of the market to stabilize. That is the core factor that influencing the prices of the bond. We will stick to the healthy financial policies. We'll make pre-arrangements and to make sure that each, like, bonds and debt issued in the overseas market will be paid in time. We also believe that for the bond investors, we will be, you know, we'll fulfill our obligations. We will make them to be, you know, rest assured. We will also do more to let them to know our financial conditions, to get more knowledge, to know full knowledge of our financial situation. When the market cannot stabilize in time, what we're gonna do? I think in the overseas market, we will have, like, a rolling over of a payment of a bonds, like, ranging between one year to 18 months, we will roll over our funds so that we will have more time to make funds arrangements to counter the bad influence of the market. In the second half of the year, we won't have any bond due in our bond market because since last year to the first half of this year, we started to pay our bonds earlier, like prepayment of the bond. You know, we also know that the overseas market has been an important financing channel for us, but it's not the only channel. We have a lot of bank borrowing channels, and they are all quite working well. We gain support from financial institutions. From December last year and from the first half of this year, we finished about RMB 28 billion of refinancing in this market. Actually, we optimized the duration and the structure of our bond and optimized and improved the debt structure. The overseas bond financing channel is still smooth. We will do our work. For example, we know that in April, May next year, we will make arrangements beforehand, and we now have ample funds at hand. Besides that, we will have the dividend payments of our projects that are invested on the offshore market. This will also help the cash flow and also be very helpful for the payment of the bond. Thank you. Okay. Thanks, Miss, for your question. Now let's get to the next question. Coming next, let's welcome the 21st Century Economy Report. Mr. Wu Xingyu, to raise a question. Ladies and gentlemen, I come from the 21st Century Business Herald. I have a question to Mr. Yu. You see that industry is seeing the mortgage boycott and the sales difficulty and many of the enterprises, you know that, for example, like Longfor, and they actually see the bond and the debt decrease. The confidence in this market is being stabilized. Do you have every confidence you will be able to stabilize your performance for better improvement? You can see that for the whole industry, that the stock price has been somewhat severely reduced a lot, and people have less confidence over this industry. Well, for Vanke, do we have the confidence to stabilize the business for a good rebound? Thank you. Let me just answer the question. When I was answering the first question, I told all of you, we have three stability works to do, stabilizing land price, housing price, and also expectation. Housing price and land price have all been stabilized, but we should also stabilize the consumer expectation. In other words, to build the confidence for the consumer. The industry is undoubtedly in the winter time. What we need to do is to gather the warmth or harness the warmth from the surrounding environment. In the winter, if you don't be able to harness the power from the surrounding environment, it's not easy for you to live through the difficult period of time. For Vanke, we attach great importance to financial stability and the cash position, always making sure we have a safe operation. That's our priority, and the bottom line we have. Regarding business size and the debt, we have a very prudent attitude. You know that even if we are in the green bar, we will not be the leading company in this industry, people were wondering whether you can resume your champion in the near future. Well, for Vanke, we always have a very prudent attitude over the business size. From the operational perspective, we do have our safe margin. You see that since last year until now, we also took multiple measures to further improve our performance consolidation. We have a very good collection rate. Our debt structure, liability structure, and the cost structure has been further improved, which has been introduced by my colleagues in the presentation. Even if that in each one of this year, there are more volatilities, much more than what we expected. You see that our operating cash flow still have around CNY 8 billion net inflow. I also would like to reassure all the consumers we'll be able to guarantee the project quality and deliver them on time. From July to August to now, I visited 35 cities in China and personally inspected more than 100 projects. I was there to take a look at the project completion, project delivery, and whether everything could be done on time. You know that according to the presentation we made, well, for Vanke, we invited our residents to co-build the community to allow our property owner to see the construction progress of our projects. Around 70% of those property owner, they at least visit once of the site construction before the project's been delivered. We are also working with the local government, delivering the project on the same day with the ownership certificates being made. That can reassure our consumer with the project completion and the delivery. We have around 60% of the projects already realized the project delivery on the same day of ownership certificates being made. We have already guaranteed 150,000 units of the projects being delivered. It's not only about the project delivery. I personally visited many the old projects. One thing leaves me a very deep impression is a project around 20 years being operated named Golden Home in Nanjing City. You know that the property management office told me, "Many of our residents, they have already bought a new house, but they don't want to just sell the flats in the Golden Home." The playground for the children has been operated for two decades, but it's still being well maintained. Even the rubber patches has already been greatly maintained. That is Vanke's stickiness for the long-termism, and we will be able to always maintain and improve the project operation quality. I guarantee you, we guarantee the product quality and on-time delivery and the project completion. Safety is our bottom line. In the shareholder congress, I have already reported to all the shareholders, we have eight words, stabilizing our performance will enhance our performance in H2. H1 performed good, as Madame Ju has already introduced. Can we sustain our momentum for further growth? That truly depends on our capacity building, whether we have the skeleton and the flesh in ready to welcome the market rebounds. If I take a look at my trip to different cities of China, let me just give you two typical cases. The first one is I went to Harbin in the northern part of China, and I also went to Urumqi and in the western part of China. Harbin and Urumqi, these are two remote cities, and they are not being taken as the core tier one cities in China. I went there, I did a personal visit. I find out good projects and good service, surely speaking, going to make you survive in this market, no matter how difficult the macro environment may look like. I went to Harbin. At that time, it was one day before the project's been delivered to the owner. I take a look at that project. I believe we will be able to guarantee high quality delivery to the owners 'cause I see the project's quality, the façade, the landscape's been well done over there for that Harbin project. Well, you see that for the local Harbin government also support us. The day before the project's been delivered, and they have an on-site working hour there to make sure that the ownership certificate could also be printed out and licensed on the same day for the projects being delivered. We also have a live streaming event for the projects. We do the live streaming of selling the product. In the live streaming platform, people were talking about how the future may look like. To know that now, we all organize a live streaming event to provide immersive shopping experience to the residents. You can see that project performed very well regarding the sales. Its sales is around 2.3 times in H1 of average of this year, and 1.5 times of the H1 average. Our Harbin branch is also being ranked as the number one regarding the contracted sales. This year is also a big year for our project delivery. We will demonstrate our capacity by delivering high quality projects to our consumer. While in Urumqi, in the western part of China, the market is impacted. The shopping mall business and the street property is not easy to be sold. You find out, I go there to take a look at our project, that project is being already established. Our sales officer over there is trying very hard to build that project as a very popular community, and by having more tenant resources to help to further improve the sales. You know that repeated buyer accounted for 50% of the total owners of that project, who are also ranking number one in Urumqi, the western part of China city. Just now, I was just showing you two typical cases. Another case I'd like to say is that the Zhejiang Province market with fierce competition because the local environment is very mature, and the clients are very picky. If you can deep-root your business in Zhejiang Province, that is gonna to be a very good challenge of our business. I was talking about the Guanshan Yinxiu, that project. That project is a project being visited by many of our industrial peers. You can say that, generally speaking, when we do landscape, and we do it with aesthetic value, we're working with Hangzhou Botanical Garden and the Botanical Museum. We work together to have dedicated area to have the eight treasure plantation, the TCM herbs, including the hangju, as well as other typical local plantation of the TCM to allow the local community kids to know what are those typical TCM plantation in the local area, and which is being highly recognized by our consumers. This is not only for beautiful landscape making, but also for the improvement of the project's quality. If, for example, in Hangzhou, and we also have another typical project for the Asian Games. When during the Asian Games, we have commercial center, athlete dormitories, property management, engineering maintenance, and cleaning service being provided there. Right after the Asian Games, we are going to have the residential plus office building, plus the educational resources being built into a complex. It is also a TOD project connected with the rail transit. You can see that such a large TOD project with complex business mix, also taking a very special mission. That project is being delivered by Vanke. I believe this probably also show our world-class project development capacity. We have Wenzhou InCity MEGA and the Hangzhou Asian Games Impression City. You can see the return rate is already 6%, especially for Wenzhou InCity MEGA. It's just opposite to the Wenzhou local government building. We made that project with very high quality. It's also become a very must-to-go place for people to visit if they go to Wenzhou City. Another example is Port Apartment. We altogether have 7,500 units for the rental housing units in Zhejiang with occupancy rate of more than 95%. Our VX Logistics in Ningbo can actually provide the VX Logistics service, a cold chain storage for Zespri kiwi fruit. Due to COVID-19 reason, we'll be able to help them to transport those kiwi fruits to Ningbo port for sales. Making sure that our business is not being impacted by the COVID-19, we help the customer in solving their troubles, also be able to deep dive into new business with them. You know that around 35% of the imported food resources are being kept by VX Logistics warehousing. You can say that for Vanke, we provide a diversified business coverage in Zhejiang Province. Overall speaking, in such a market with fierce competition, we'll still be greatly polished. We have operation plus the service. That is going to be a very important advantage for Vanke to survive in this market. Our typical projects in Vanke informed us that we're going to have a development plus operation business to be our prioritized strategy. I visited many cities in China. After that trip, I'm still very confident in hitting our target this year. We're talking about the future, the outlook. You know that we are truly distressed, and we still need to further improve our financial performance. Just like a sick people, if you go for the physical examination, if you take a look at the result, it seems that your health's been compromised. For us, we still need to balance the microenvironment and our performance to find solutions to any of the challenges we're facing. You need to further improve your immune system and also be able to offset the shortcomings you have to have a balanced development. We're never going to slack off. We'll always be standing up to run with the industry, and I believe we'll be able to embrace a promising future. For this year, we believe that we're going to stop the downtrend business development, but also for stabilizing and enhancing our business. Thank you. Thanks for the question from 21st Century Economic Report. Coming next, let's welcome the next question. Next question coming from Zhongtai Securities. Let's welcome Ken. Thank you. Thanks for the management team. I'm Ken from Zhongtai Securities. I do see the efforts made by the management team. In H1 of this year, you can see that even if the market is full of difficulties, but still your GP margin and the net profit are on the improvement track, just as Mr. Yu mentioned. We also hope that we're going to see more improvement in the near future. I have a question regarding the operations. That is operation the service business. You can say that by the beginning of this year, you mentioned some of the target and goals to further improve the operation, the service, business efficiency and the competitiveness. At that time, it was in March, but now it's already August. You know that there are a lot of market changes, for example, like COVID-19 and the economic growth being further slowed down. I'd like to ask you whether those market uncertainties or the market change is going to impact the future growth of your recurring revenue of the business, I mean, for long-term rental housing, logistics and warehousing. Thank you for your question. Your question mainly covers like our operation services business, whether that will be impacted by the slowdown of the economy and the pandemic, and whether can we meet our target, which is set at the beginning of this year, which is improving the efficiency and competitiveness of operation service business. Thank you for your question. Actually, the pandemic and the slowdown of the economy has brought us many challenges for our operation and service business. We accept those challenges, and we face them. As we said, the revenue is about CNY 24 billion and year-on-year increase of 36% growth. So, that showed us our growth robustness under these difficult circumstances. For this operation services business, we. I think we talked about this previously, like good students like challenging tests. If we want to be a good students or high achievers in the class, we need to challenge ourselves constantly. We need to choose the difficult ones. We need to do those difficult but right, the things that are right. For these recent years, we actually reflected quite a lot on that, especially the first half of this year, we were pressured quite a lot. How can we shoulder the test, shoulder the pressure, and then provide a good, satisfactory answer sheet to our customers and investors? In terms of the operation and service business, and actually, Zhu Xu has already covered the performance in every aspect. For the first half of this year, I was like delegated to, you know, to do, to manage the Port long-term rental business. I think, I've got, you know, my hands dirty in this business, so, I know quite a lot than before. For do our business, the key thing is to find the right customers, and finding the right customer is becoming very important, the very important thing. In the past, we rely a lot on the agency, and now we've changed quite a lot. We're trying to reduce our reliance or cut our reliance on our agency but rely on ourselves. How to do that? We need to provide good product to customers, and we need to let everyone has the ability to be a good sale to connect with customers. For Port, it's like a long-term business, it's just. Although it's just, you know, shown in recent years, it's still a business young people or youngsters. That we need to let the young people to do their work to connect with the Z, and for like the store owner, the store manager, they're very familiar with this new trendy social media platform like Red Book, et cetera. In Wuhan, they acquired a lot of customers without spending a penny. How did they do that? To that, they introduced our houses online through the online platforms like Xiaohongshu, the Little Red Book, Douyin, the Chinese TikTok, et cetera. We achieved a full occupancy rate when the project was commenced. We are very satisfied with that. Those stories also happen in Shenzhen, for example, the Vanke Yongchun Port Apartment. That was also. We were also commissioned by a big SOE to manage this apartment. We used the same method, and within 3 months, we reached, like, more than 99% occupancy rate. For this kind of, you know, helpful. You know, for this kind of C-end customers, we will rely on every employee of a port unit. Because we covered, we served more than 600,000 customers. Now today, we have more than, like, 160,000 customers living in our rooms. We need to utilize the majority of this C-end, and every employee of the port needs to be engaged. For the second initiative, for the important minority, that which is the B-end, like we said, now this year we have incremental 160 B-end customers. One B-end can bring us 100 C customers. That means 160,000 C-end, like, customers, individual customers. Those important minorities to B2C business model for that, we think we can't fully rely on youngsters, but rather we need to rely on more senior people who have richer experiences. Once we've tested the benefits of acquiring B-end customers, and previously, we were only good at serving the C-end, but not really. Today, we need to think how can we serve the B-end better. We need to improve our capability in that end. We need to connect with them better. In a nutshell, we are entering the market of serving enterprises. How can we do a better job than that? We need to think about that. That's another challenge we will face or initiative we're gonna take. For the third initiative is to visit customers more and hear our customers' voices better. We have a Pengcheng Lab that was a Shenzhen lab. That's a national lab. We have a lot of customers living in the Port. When we talking with them, we found out they are quite educated people, so they brought us a lot of new ideas. We also found the channels and opportunities to bring in high quality talents in the future as well. We also need to think about for customers who want to stop the contract with us, how can we solve their problems? How can we make our tenants more satisfied? We are continuously exploring new methods and, for example, utilize data analysis. We found some new interesting things. For example, under the pandemic, the Port store that has a better location will have a you know slower recovery. It's a strange thing. Because that shows that in the past, if the Port Apartment has a very good location, that means its occupancy rate was pretty much reliant on this location, but rather on our sales capability. That's when hearing our customers' voices, we gaining more insights of the market, of customers, and we're getting better sense as well. In terms of the BU, long-term rental BU, people you know our staff are traveling across country. They don't live in hotels anymore, but rather they live in the Port Apartments. They now stand in the shoes as a tenant, so they can get a better feel, a sense of our port services. As we also often said, we need to sleep on the bed that our tenant will sleep. We need to live in the unit, the room that our tenant will live. The fourth initiative is more innovative. When we are communicating with our B-end customers, some of the admin offices would often say that they need to cover a certain contract of more than 1,000 nights. A lot of the tenants will live in the port for, like, a short term, like one or two nights, but in total, it's long, that's many nights or it's a long-term period of time. When this market is changing, how can we maintain our occupancy rate? We think that we need to dare to do the short-term rental market. When we are managing our customers, we see we've gained more insights and opportunities. These are, you know, quite segmented insights we gain. In a nutshell, we improved and growth. For example, the cost of a customer acquisition has been reduced quite a lot. For example, 76% of our customers are acquired by ourself. That means our marketing expense has been lowered from 1.4% to 1%. That boosted our confidence as a whole. Overall speaking, these are the right things that needs to be done, needs to be sticked to. For B-end customer, C-end customers, as what we call the useful majority and the important minority. These are the two important ends that we need to cover. By doing those, both things, we think we will provide a good performance in the future. As we can see from our financial reports, we can see good momentum for our operation as of this business. Our positioning as serving the rural and urban life cycle, life space, has been recognized by the customers. We've made our deployment in different scenarios in Shenzhen. For example, August last year, May this year, we signed the strategic agreement with the Shanghai government and Guangzhou government, municipal government. What the government values is also our capability to provide comprehensive services to a city as a whole, to the urban as a whole, to be an urban service provider. By utilizing this capability, we can integrate in that city better. Internally speaking, how can we connect or create more synergy within our company, within our employees. After signing a strategic cooperation agreement with Shanghai and Guangzhou, there are some new projects being rolled out, being launched smoothly and be delivered as well. We also gained good comment by the customers. The good momentum of this operation service business has increased our confidence for our transformation of the strategy. Because we can see the efficiency in the result already, and we will be more dedicated and confirmed in this road. Thank you. Thanks for Ken's question. Now let's welcome the next question. Now let's welcome Huang Yu from Jiemian News. Good morning, management. So my question is about your strategy of land acquisition. This year, in the first half of this year, what's your adjustment of strategy in terms of land acquisition? What's the quality of the land you acquired? And the gross profit margin of Vanke, whether the gross profit margin will improve in the future. Thank you for your question. Your question covered like things like the adjustment of land acquisition policy and the quality of the land. Okay, I will let Liu Shao to answer your question. Thank you for your question. You mentioned their adjustment. Actually, the investment strategy has been stable in the long run, and we stick to quite a prudential investment strategy. In terms of the first half of this year, we actually value more, that is, the safety of operation. As Mr. Yu Liang mentioned, we are quite prudent and controlled in terms of the scale expansion. One thing more, we need to put more focus on really good quality projects. For example, for a prudential investment. As we can see from these reports, we have CNY 8 billion operating cash flow, which is a positive number, more than the same period of last year. You can say that, our project that under construction and also with the associated not yet booked one, is altogether around 130 million GFA. Altogether, that can help to support the next three-year business growth. We'll still be very comfortable with this investment we made. Where besides a healthy cash position, we are also focused on acquiring high-quality projects in the market. After several rounds of the discussion, we find out for those high-quality projects, and we need to make sure they are located in the promising region. If we take a look at the local market, we not only take a look at a single city, but also a city cluster. You see that there are some city with a premier location, and even in some very popular cities, not every district performs well for the sales. As Mr. Yu mentioned, for example, like, Harbin and Urumqi, and the premier location of the projects can accumulate and consolidate our customer base with good contracted sales. Another point is that we'll be able to provide high-quality project and service to the consumer, and making sure we fulfill our honor to the consumer. For each one of this year, if I take a look at the projects being invested, we have more being invested on the mature projects with mature service. You know that when we discuss those projects one by one, we need to make some in advance preparation and assessment. Another point is regarding operational indicator and financial indicator, especially the net profit and the IRRs being performed very well. I believe these are actually the three major criteria we're going to use to select the high quality projects. Along with Madam Zhu Xu, you can see that from January to July altogether, we have acquired 21 projects. The total investment is around CNY 42.5 billion. For that 21 projects altogether, they comply with the three criteria we have in project selection. The day before yesterday, you can see, Xinyu Bangyanfu, the project is being launched in Hangzhou. I know that region pretty well. Around one decade ago, in the year of 2012, at that time, it is the first property project being acquired there with 100% selling rate, I mean, ten years ago. You know that for Hangzhou Vanke, they continue to dive deep into the local market and have a lot of repeated consumer to come back to our upcoming project. The day before yesterday, we make 392 units being available for sales. The selling rate for that project, the day before yesterday, is already 100%. For that 21 new projects being acquired in H1 of this year, if they have a primary location, good teams, and a high-quality project, you will surely be able to guarantee the returns for such investment. You were also talking about the GP margin. The good investment will help you to guarantee the good GP margin. I think the question has already been mentioned by Mr. Zhu. There's no typical margin hikes in our industry. I think the margin will be normalized as this industry further recover. Thank you. Thank you. Thanks for Duxiao. Thanks for your question. Coming next, let's welcome the next question, please. Coming next, let's welcome Tu Lilei from Haitong Securities. Okay. Thank you very much. Thanks for the management team for offering me the chance to raise a question. Just now, we heard a lot of question regarding the industrial development and the development business. I also see that you have diversified business being further developed, especially your property management business is growing very fast, faster than the industrial average. For the company, you have already got the approval from CSRC of listing Onewo for Hong Kong IPO in September. I do see there's a lot of volatilities in this market, a big difference for this year compared with 2021. How are you going to comment on Onewo's IPO at the timing of this year? Do you believe the rational evaluation of such business is going to be different from your expectation? What would be the best timing for Onewo to be listed, and what's your consideration or your comment? Thank you. Thank you. Thanks for Tu Lilei from Haitong Securities. You would like to ask about the timeline of Onewo's IPO and whether valuation is going to be different from our expectation. Let me just ask Madam Zhu Xu to respond to this question. Yes. Thank you. Thanks for Mr. Tu Lilei. A lot of investors ask us the same question. Last year, in 2021, the valuation of the property management business is higher than that in this year. For Vanke, when we do spin off, we are not considering only the valuation of the business. I still remember on the temporary shareholder meeting last year, Mr. Yu also responded to the same question. The timing of the Onewo's IPO is the strategic business development of that company. It's not a property management company only. It's more like urban service provider in the market. When we are ready, then we're going to go for IPO. Because of this reason, we started the IPO by the end of last year. You know that for Onewo is provide urban space, operation. It's a good business. I mentioned Butterfly City. It's going to be a key strategy for the next one decade. Through the action, the Butterfly City will be able to make sure the property management for residential building, office buildings, urban service operation could be well integrated, therefore, to further identify the opportunities and, to improve our stickiness with the consumer. This is a business philosophy and a confirmed business direction. We hope it could be recognized by the capital market and also be invested by multiple investors. Therefore, Onewo's IPO, no matter when the IPO is being made, is going to be a new starting point for Onewo. We're not there to list the spin-off of Onewo at the peak valuation. We hope that we can get a rational valuation of Onewo, making sure that investors can also share the dividends for Onewo's market value improvement. Well, regarding the spin-off of Onewo, we're going to report to the investors when time comes. Thank you. A few points from me. For Vanke, when we spin off Onewo for Hong Kong IPO, we're not there to sell our business at the peak valuation price. We hope that Onewo can get more business development opportunities after IPO. Short term valuation is not going to be our concern. We hope that Wanwu can get more strengths and the support from the capital market to support its future growth and business development. It's going to be a very important part for development of price operation business. I hope or I also believe that Wanwu and they can choose the best timing for IPO and taking IPO as a new starting point to further improve their business operation. Thank you. Thank you. Thanks for question from Tuli Day. Coming next. Due to the time reason, it's already 11:10 A.M. Due to time constraints, we allow another two questions. Meeting secretary, please. Coming next, let's welcome China Entrepreneur Magazine, Di Yanyan, to raise the next question. Okay. Thank you. Thanks for the management team. My name is Di Yanyan from China Entrepreneur Magazine. Mr. Zhu, you know that many of the developers, they are under distressed liquidity. What's your comment on this? And to what extent such distress is showing up in the market? Whereas for Vanke, it seems that you have more onshore debts being issued compared with the same period of last year. What's the reason and what would be your debt issuance plan for the next few years? Thank you. Thanks to Di Yanyan for your question. You'd like to know that we have more onshore bonds being issued and what would be the bonds issuance plan. Let me welcome Madam Han Huihua to respond to this question. Thank you. Well, regarding the onshore bonds issuance, as Madam Zhu was giving you the presentation, we have clearly mentioned, we hope that we can leverage the corporate debt in the open market to help us to further optimize our debt structure to reduce the financing cost. To be more specific, you know that for the company, the onshore bonds accounted for a very small part of our interest-bearing liabilities. If you take a look at the data by the end of last year, our corporate debt altogether is around CNY 27 billion, accounted for 10% of the interest-bearing liabilities. This is a very low ratio because generally speaking, for the corporate bonds, and we're just borrowing the new to pay back the old debt or the liabilities. Whereas for this year, the central government has started to provide extra quota to allow us to issue more onshore bonds. We take this opportunity to further build up the issuance of the credit bonds in the market. By so doing, we'll be able to help to pay back some bank loans and other liabilities and also pay some of the debts which is going to be due in the next one year in advance. In this way, we'll be able to further improve our liability structure and the debt structure and reducing the financing cost. According to our disclosed information from January to August of this year, and for the onshore bonds altogether, it's going to be RMB 90 billion together, and the comprehensive financing cost is only 3.02%. 5-year duration, the cost is around 3.6%, which is maintained as a relatively low level compared with other peers. You can also say that we have another CNY 2 billion registered, yet not unissued quota, and we have a small PE in the registration process once being approved. Altogether, we're going to have a CNY 10 billion issuance-debt issuance quota being available. We're going to keep an eye on the market situation and also be further improving our liability structure to continue with the bonds issuance. Thank you. Thanks for Di Yanyan for the question, and thanks for Weihua for the answer. Due to the time constraint, we only allow the final question for this Q&A session. Meeting secretary, please. Coming next, let's welcome Zhong Kai from Guandian.cn. Ladies and gentlemen, can you hear me? I'm Zhong Kai from Guandian.cn. I have a question regarding logistics. Because for H1 of this year, I see that your revenue for the cold storage warehousing was growing very fast. How are you going to comment on the outlook, and do you have any specific business plan? And for VX Logistics and, cold chain storage, is it also be a part of the bond issuance? And, do you also have any financing needs in supporting your logistics and warehousing business? Thank you. Thanks for Zhong Kai for your question. You'd like to ask that in our logistics business, what about the cold storage or cold warehousing development plan? Let's welcome Liu Xiao to respond to the question. Ladies and gentlemen, for our logistics service, for cold chain storage and also for the high-standard warehousing, we are very positive on its future growth. We are also very positive on the cold chain storage business. It's going to be a very important part within our logistics business. A few days ago, we were also making the strategic analysis. We found out, compared with our counterparts in the U.S., in China, the cold storage warehouse per capita is only one in six of the same level in the U.S. You can say that when people are having a more pursuit over the quality of their life and the food storage through the cold chains also be greatly emphasized on the market. Right after COVID-19, the public health event started to persuade the regulators to pay more attention to the food safety and the cold storage and the cold chain logistics is going to be a very promising market. Well nowadays, you can say that in our logistics business, we are maintaining our leadership. We have 42 cold storage warehouses with very huge GFAs being available. More importantly, regarding the cold storage warehouse operation, we'll be able to provide the supply chain solution to the consumer and the transportation warehousing interface and connections being all taken care of by us. In that, we will be able to further extend our service scope to serve more consumers in the near future. Mr. Chu and Madam Chu all mentioned, we've spared every effort of transporting the kiwi fruits from Shanghai to Ningbo. I visited that logistics site and truly want to provide an extended service to the consumer. You can say that for Zespri, that kiwi fruit brand started from 2016, and the kiwi fruits being transported from Singapore Port to Shanghai Yangshan Port and being stored within our cold storage warehouse. In 2016, we only served one warehouse. That warehouse is regarding the storage, move-in and move-out operations. That's probably the basic service we provide. For the past few years, as we further extend our business service scope, we expanded our management from one warehouse to seven warehouses. Right after that, you can see that the local distribution and the dispatching warehouse is therefore being established. I visited Japi's Wuhan distribution and dispatching center, and the whole transportation from the local warehouse to the, for example, Sam's Club, of the transportation is also being done by us. That 70% growth is just a snapshot of H1 of this year, and we further expanded our management warehouse from one to seven. We are responsible for sorting, quality management, quality guarantee, and also temperature monitoring. You can see that the temperature monitoring is throughout the whole journey. The size, the quality are better controlled. We enhanced our ability for this logistics services. That, in a nutshell, is called the width and the depth. In width, that was called, like, how many customer you acquired among this top player companies. For the depth is that means except for the logistics customer service, what else services value can you provide for your customers? Previously, this behind this growth, actually is not just a number, but rather is the service that has been improved. No matter if high standard warehousing or cold chain storage and other services, they are all topics and strategies that we stick to in the long run. Also, for example, rates in the future, we will actively participate as well. That will be helpful for us to serve our customers to better develop our strategy. Thank you. Thanks, Mr. Chung, for your question, and thanks, Liu Xiao, for your answer. All, I believe that you may have a lot of questions to ask, but actually, I think we already gathered a lot of questions before this meeting started, and we covered most of the questions that we gathered. If you have other questions, you can send your question to our IR email. That was ir@vanke.com. Thank you again for your attention and care for Vanke. Let's see you next time at next results release.