Ladies and gentlemen, good afternoon. I am from China Overseas Land & Investment, Wu Yi. Welcome to China Overseas Land & Investment Limited's 2022 Interim Results Investor Presentation. In this presentation, our management is both in Shenzhen and online, communicating with you here. In attendance today are in Shenzhen, we have Chairman, Mr. Yan Jianguo. Deputy Chairman, Executive Vice President, Chief Architect, COO, Mr. Luo Liang. CEO, Mr. Zhang Zhichao. Vice President, Mr. Guo Guanghui. In Hong Kong, we have CFO, Mr. Liu Zhijie. This presentation is divided into three parts. First, Mr. Guo will go through the 2022 interim results report. After that, Mr. Yan will communicate briefly with you, followed by a Q&A session. You may ask questions over the phone or online by leaving message. We will first invite Mr. Guo to go through the 2022 interim results report. Mr. Guo, please. Analysts, investors, good afternoon. Now let me begin to present to you the 2022 Interim Results of China Overseas Land & Investment Limited, robust foundation forging ahead. The presentation comes in three parts. First, we review our interim results highlights, and next, move on to the business and management review. Then we'll walk through the group's outlook and strategy in the second half of 2022. Finally, we'll have a session to exchange ideas. First of all, we present to you a summary of the group's 2022 interim results highlights. In the first half, the global economy has been impacted by factors including COVID-19, the raising of the U.S. dollar interest rates and Russian-Ukrainian war. Mainland China's economy is thus facing increasing pressure. With the weakening of growth expectations for the domestic economy and personal income, coupled with further debt defaults by property enterprises, real estate market remains depressed. With the hard work and collective efforts of all colleagues of the group, every business performed well against headwinds and boosted quality development of the group. The result highlights include the following aspects. First, the contracted sales and cash collection performed well, and our position in the industry was further consolidated. In the first half of 2022, contracted sales of the group series of companies reached CNY 138.5 billion, with ranking rising to top four in the industry. Sales quality was further improved, with cash collection remaining at a high level of 88%. Second, the group maintained a leading position in land premium amounts to drive sustainable development. The group strategically acquired quality land bank. In the first half of 2022, the group series of companies' total land premium reached CNY 53.1 billion, with CNY 48 billion of the company's land premium, maintaining leading position in land premium amounts. The group actively sought M&A opportunities and invested more than CNY 10.7 billion in three major cities, Shanghai, Guangzhou and Chengdu. The new saleable resources in first-tier cities of the group accounted for 47.4%. Third, the group exhibited a remarkable financial stability, with 58.95% of liability to asset ratio, 40.96% of net gearing, and 3.44% of average borrowing cost, and CNY 125.3 billion of cash on hand. Among the volatile fluctuations in the real estate industry, the advantage and stability of the group's financial resources are more outstanding. Fourth, the industry's profit margin keeps dropping. The group bolstered and improved the cost and advantages and refined management. SG&A as percentage of revenue further down, further fell. In first half, we realized EBT of CNY 25.2 billion. Net profit, CNY 17.6 billion. Core net profit attributable to shareholders, CNY 17.35 billion, with profit margin among the highest range in the industry. The second part reviews the business and operations in interim 2022. In terms of contracted sales, facing a declining market, the group looked shrewdly at the market and operated prudently and steadily. The contracted sales performed well against market headwinds and cash collection rate remained high. In first half, group series of companies contracted sales reached CNY 138.5 billion. The group expanded its comparative advantages and grew market share through strategic investment in major cities and mainstream area. Regarding cash collection, the group focuses on cash flow management to strengthen cash collection. Group series of companies realized cash collection of CNY 121.9 billion, with cash collection rates of 88%, up 1.3 percentage points year-on-year. Of which domestic market realized a cash collection of CNY 121.2 billion. Cash collection rate was 95.1%, up 8.8% year-on-year. The group focused on major cities to maintain quality operations. In first half 2022, the group further focused on major cities and furthered market penetration, with contribution from major cities continuously increasing. Sales proportion of first-tier cities, including Hong Kong and Macau, increased 10.1 percentage point to 36.8%. 4 cities achieved contracted sales of over CNY 10 billion. They are Beijing, Tianjin, Hong Kong and Guangzhou. 29 cities ranked top three in terms of market share. In terms of land investment in a significantly declining land transaction market, the Group continued to invest and its land premium amount is at leading industry level. The Group adheres to Blue Ocean Strategy to acquire quality lands through multiple channels. Total land premium of Group series of companies was CNY 53.1 billion, corresponding saleable resources of CNY 108.2 billion. Adding the CNY 3.7 billion for equity acquisition of Guangzhou Asian Games City and one billion for equity acquisition of Xuzhou and Jinhua projects, land premium was CNY 57.8 billion, corresponding saleable resources of CNY 121.9 billion. Newly added and sold saleable resources were almost equal, of which land premium of the Group was CNY 48 billion, with newly added saleable resources of CNY 94.9 billion. Adding investment amount in Guangzhou Asian Games City, total land premium of the Group was CNY 51.7 billion, corresponding saleable resources of CNY 106.1 billion. The Group adheres to Blue Ocean Strategy to acquire quality land bank through multiple channels. The Group leveraged the advantages of financial stability and ample cash to focus on the quality assets in high-tier cities with investment of HKD 12.5 billion in non-public projects, accounting for 24% of the total investment amount, of which more than HKD 10 billion was invested in M&A projects in three major cities, Shanghai, Guangzhou and Chengdu. The Group adopted innovative investment models to acquire two quality projects in Qingdao West Coast New Area and strategically cooperated with quality large asset owners in major cities to acquire Chengdu Tianfu New Area project. The Group adhered to the investment strategy of major cities, mainstream areas and mainstream products, and strategically and proactively acquired quality land bank. Group series of companies excluding Grand Oceans acquired 18 land parcels in the first tier and major second-tier cities, with total new land premium of CNY 45.1 billion, corresponding total saleable resources of CNY 89.1 billion accounted for 94%. The Group maintained a sizable and quality land bank. As at the end of June 2022, Group series of companies' total land bank was 74.39 million sqm, of which Group series of companies' land bank excluding Grand Oceans was 47.05 million sqm and attributable land bank was 40.95 million sqm. The Group had a quality land bank with a focus on major cities. Group series of companies' saleable resources excluding Grand Oceans in first tier cities, including Hong Kong and major second-tier cities, was 29.65 million sqm, accounting for 63%. Hong Kong, where the company was founded, is an important and significant international market. In the first half, Group series of companies' sales reached HKD 13 billion, hitting a record high. Of which, Kam Sheung Road MTR station project, Grand Mayfair, reached sales of over CNY 10 billion. Grand Mayfair phase one and two, which was launched in the second quarter, had been well received. As at 8 August, 1,367 units were sold, accounting for 90% of the total units, and total sales reached HKD 12.5 billion. This year marks the 25th anniversary of Hong Kong's reunification with mainland China and 30th anniversary of the Group's listing in Hong Kong. The Group is confident of a brighter future for Hong Kong and will continue to increase its investment in Hong Kong to maintain sustainable developments in Hong Kong. The Group continued to refine operation and accelerate the project development, maintaining its operational efficiency at industry-leading position. New projects were launched quickly through early stage cross-departmental discussions. Over 70% new projects acquired in the first half will be able to launch sales within 2022, maintaining its operational efficiency at industry-leading position. In terms of products, the Group adheres to customer orientation to create excellent products and provide quality services. In the first half, the Group realized 100% on-time delivery and early delivery in terms of number of households was about 33%. Customer satisfaction level remained top three among the top 20 developers. While the industry's profit margin keeps decreasing, the Group succeeded in strengthening the cost advantage and refining professional management, maintaining leading position in value creation. In the first half of 2022, the Group's SG&A, as percentage of revenue, dropped 0.1 percentage point to 3.2%. Average borrowing cost decreased to 3.44%, among the lowest in the industry. The shareholders' core net profit margin was 16.7%, maintaining a leading position in the industry. The Group continued to generate stable returns for investors. Interim dividend per share was HKD 0.40, and accumulative cash dividend exceeded HKD 100 billion for 30 years of listing. In terms of financial position, the Group upheld robust financial position, maintained low liability to asset level and optimal debt structure, and had no off-balance sheet financing and perpetual bonds, so as to support momentum as well as stable and enduring growth. As at the end of June 2022, excluding pre-sales proceeds, the Liability to Asset Ratio was 54.58%. Net Gearing was 38.96%. After subtracting the return from regulated pre-sales proceeds of properties, Cash to Short-Term Debt Ratio was 2.41x, remaining as a quality green category developer compliance with Three Red Lines. Moreover, every metric maintained excellent performance. At the end of the period, cash on hand was CNY 125.3 billion, well-capitalized to capture market opportunities. Among interest-bearing debts with less than one year of maturity accounted for 15.6%, demonstrating a low pressure of debt repayments and reasonable debt structure. In the meantime, the group maintained highest credit ratings among the industry and leading onshore and offshore financing advantages. Under the circumstances of frequent occurrence of credit risk in the industry and intense financing environment, the group had smooth onshore, offshore financing channels and continued to exert stable and prudent financial advantages, rationally arranged various financing portfolios, and actively carried out innovative financing. In the first half, the group issued various kinds of bonds, recording lowest interest rate for comparable products at issuance. In addition, the group successfully issued first Green Interbank Notes of CNY 1 billion, the largest-ever Carbon Neutrality CMBS of CNY 5 billion in the domestic market at issuance of the first M&A Loan supported by central bank. For unbooked pre-sales, as at the end of June 2022, group series of companies unbooked pre-sales was CNY 243.1 billion. Group series of companies excluding Grand Oceans attributable unbooked pre-sales was CNY 158.6 billion. Unbooked pre-sales remained stable and will be booked gradually, bringing positive impact to secure the revenue and profits of the group. In the first half, despite the impact of COVID-19, revenue from commercial properties achieved growth against market headwinds, a growth of 6.2% year-on-year to CNY 2.65 billion. New projects pipeline sustained growth. The group launched seven new projects in the first half, with GFA of 380,000 sqm, and plans to launch 10 projects in the second half with GFA of 710,000 sqm, of which five shopping mall projects will be launched, accounting 78% of the total GFA to be launched in the second half. Both office and shopping mall businesses stay on growth trajectory. Revenue of office reached CNY 1.75 billion, with 85.6% occupancy rates and higher proportion income from first-tier cities. Mature projects performed excellent with 88% occupancy rates, driving growth trajectory of revenue from office. Revenue from shopping mall reached CNY 0.64 billion with 92.6% occupancy. Same-store rental income in first half 2022 increased against market headwinds. Coupled with the overall sales increase and excellent operating performance from mature projects, rental income from shopping malls significantly increased 23%. The group continued to invest in office and malls to drive sustainable growth in revenue from commercial properties. As of the end of June 2022, the owned commercial properties has reached 11.05 million sqm, with first and second-tier cities pipeline project GFA accounting for 92%. In the meantime, the group maintains balanced development of office and shopping malls with increased efforts in shopping malls. Shopping malls GFA contribution will increase to 37% after all pipeline projects are launched. The asset structure will become more balanced, facilitating to realize revenue growth, resilience, and long-term sustainability through a dual-focused asset portfolio. The group adheres to the sustainability strategy of a Company of Four Excellences and keeps improving the sustainable development's performance. As at the end of June 2022, there are 513 green certified projects in total, with 93.03 million sqm certified GFA. During the period, breakthroughs have been made in green buildings and a number of green building benchmark projects have been successfully established, of which Beijing China Overseas Fortune Center has obtained WELL v2 Core Platinum certification. Its performance was recognized as two-star by Global Real Estate Sustainability Benchmark, rated BB by MSCI ESG Ratings, received lowest risk rating of ESG performance, and the highest green rating of issuer by Lianhe Equator Environmental Impact Assessment, the first receiver green issuer rating. The group's sustainable rating maintained an industry-leading position. The group was admitted into Hang Seng Corporate Sustainability Index for 12 consecutive years and was admitted into the newly launched Hang Seng Climate Change 1.5°C Target Index. Meanwhile, the group promoted green finance during the period, including climate change risk and ESG risk into risk database, conducted climate change scenario analysis, and compiled COLI's carbon neutrality plans in line with national targets. The third part is outlook and strategy. Domestic property sales declined rapidly since July 2021, and property industry is officially entering into the second half. In the second half of the property industry, market volume will decrease, yet remain huge. There are three segmentations of the property industry in the second half: market segmentation, industry segmentation, and company segmentation. The group will actively respond to market changes. The group is in the first echelon with 43 years of long-distance competition experience. Our goal is to achieve success. This year marks 30th listing anniversary of the group. In the past 30 years, the group has adhered to long-termism and developed steadily with substantial increase of operating and financial metrics and created stable and long-term value for shareholders. Market capitalization of the group rose nearly 80 x since IPO and substantially outperformed Hang Seng Index increase of 4x during the same period, maintaining an industry-leading position. Dividend rose steadily for 20 consecutive years, and the accumulated cash dividend per share was HKD 10.27. The group will continue to generate long-term sustainable returns for clients, shareholders, and society. That is all for my presentation. Thank you. Thank you, Mr. Guo, for your presentation. Now, before Q&A session, I'll invite Mr. Yan to do a very brief interaction with you. Mr. Yan, please. Analysts, investors, ladies and gentlemen, good afternoon. Welcome to our company's interim results announcement presentation. In the first half, the market declined, and our results was under pressure. For top 10 property companies, we're the first to disclose results. For the other peers, well, they have not announced their results yet. However, for our main operating metrics, we have confidence that we'll be in leading position. We are in a turning point of the property sector. Our profit margin, our profits are still leading the industry. Our financials are stable, and our product structure is good. Now the market is weak, but we still have the capability to maintain strong investment strength, and we can maintain our sustainable development to reinforce our competitive advantages. Before we communicate with analysts, I will talk about our current trends as well as our strategies. You may have questions about the market trend and also our company strategy. I will first talk about these before answering your questions. If we talk about market trends, our view is that in the long run, we are optimistic, but there is pressure in the short run. In the long run, we are optimistic because we have confidence in two areas. First, concerning the overall market room in the second half, we have confidence. In March this year, when we announced results of the last year, we said that in July last year, that was the downturn in the property sector. We are now in the second half of this adjustment. The total volume is coming down and, well, the overall sector has a large scale. Demand comes from different areas. There is increase in urbanization, and then there are new residents housing demand. There is also upgrading demand from people, and there is depreciation of housing, and there is demand for new construction, so there is effective demand. The market still has a big room, big potential. In the long run, we still have confidence in the property sector. That's one reason. Secondly, we have confidence in ourselves. Well, in the second part of this property sector adjustment, we think that the situation is favorable to us. We have confidence in our high quality development. In the second half, there will be three segmentations. Market segmentation in Tier 1, 2 cities and strong Tier 3 cities, they will be the main battlefields. There is industry segmentation. The industry is going through big shuffling, reshuffling. Number of property companies will come down. Market concentration will increase. Number three, there will be company segmentation. It is important to have precise and refined management capability for these quality companies. They will win in the competition. With these three segmentations, well, they are both challenges as well as opportunities. More are opportunities. We are looking at the long term. In the industry, there are opportunities, and our company has strengths, so we have confidence in the future. For the short term, well, looking at the market at present, the property market is now in a period where there may be shocks and pains. In the short run, there will be pressure in the market. For the short term trend, there are two main points. First, we have to look at the overall trend of the macro economy. Second, we have to see the pace of resolving difficulties by the property sector. If you look at the macro economy, we are of the view that the Chinese economy is very resilient. We believe that macro economy will recover, and this will drive healthy development of the property industry. Secondly, when property companies face difficulties, well, we have to look at how fast they can resolve difficulties. Well, from central level to district government levels, companies are striving for solutions. In recent period, more cities have introduced stronger policy measures to encourage consumption and to stimulate recovery. Even though there is pressure in the short run, we still have confidence in the market. In the first half, land acquisition and newly acquired product value is leading in the market. This shows our confidence in the future. That is one point of view about the market. The second point is about our company strategies. In the second half, in this property sector adjustment, well, at present and in the coming few years, there is still a lot of uncertainty in the global situation. We have three main strategies. First of all, we have to make sure that we will not lose out in our core cities. When there is uncertainty, first of all, we have to stabilize our own development so that we will be in a position that we won't lose. We would adhere to stable development strategy. This will be very beneficial to our development. This is the right strategy. Before the introduction of the Three Red Lines, our financial indicators have been always below the Three Red Lines. In the first half, our gearing ratio is only 59%, and we adhered to stable development. This is our long-term strategy. No matter what, we will make sure that we can continue our stable and steady development. Secondly, amid stability, we hope that we can still make progress. We can seize opportunities amidst the crisis. In fact, in this market adjustment process, there are both opportunities and threats, and we will strive for progress amidst stability and seize opportunities. We have to seize opportunities in the land market. When there is less competition, we will invest more resources in order to enhance our competitive advantage in core cities. We will increase our market share in our mainstream cities. In the first half, we spent CNY 53.1 billion to acquire land. I think we seized the opportunities from a market reshuffling and M&A opportunities. In the first half in Guangzhou, Shanghai, Chengdu, we did M&A of a number of projects. We invested more than CNY 10 billion into this exercise. For medium to long term, still stability is the core. We want to make sure that we can strengthen our competitive advantages. We want to strengthen our traditional strengths, so we will strengthen our strength. All along, we have financial stability and adequate cash or capital. We have low financing costs, and our cost control ability is strong. Our operating capability is also strong. These are our strengths. When we face the second half of this adjustment process, there may be new consumer demands. We'll focus on the market, our business, and our management. From strategies, organization, talents, mechanisms, and culture, in these five areas, we will strengthen our core competitive advantages. Ladies and gentlemen, this is the 30th anniversary of our listing. We have gone through a number of cycles of the economy and the property sector. Still, we have been operating very sound and stably. We would adhere to long-termism and go for stability with progress. These are the points that I would like to share with you. Thank you, analysts, for your interest and support for our company. Thank you. Thank you, Mr. Yan. Now we will proceed to Q&A. Can each one of you please limit the number of questions to two. Now, meeting secretary, can you take the first question, please? Thank you. Thank you. Our first question is from Eric, CICC. Please go ahead. Thank you. Mr. Yan, management, greetings. I'm happy to see your operating performance. Your results are very encouraging. Mr. Yan, while you have been stressing that your development is good and fast, and I think we can see for ourselves this point. Just now, Mr. Yan, in your remarks, you have already given answer to some of my questions, but I would like to follow up. First, regarding the short term in the market and your observations and views. Recently, we saw that in many cities there's relaxation of some strong policies and measures. What are the outcomes? When you sell your products, what do you think? How is your feeling? And then in relation to regulation of presale proceeds, has there been any change? On this point, management, can you focus on this point? For example, in the few months before the end of the year, what do you think will be the trend in the market? That's my first question. Second, you said that you will seize opportunities in the crisis. I believe that opportunities will be biggest for your company. In relation to M&A, I would like to know your views. At present, regarding M&A market, what is the actual condition that you are facing? Secondly, regarding strategies, are you going to adjust your strategies in this area? There may be some active M&A, but then when the market displays certain difficulties, then will you be a bit passive? So what will you have to do in this regard? Can you give more specific guidance to us? Thank you. Thank you, Eric. First question, I will give a brief answer. Regarding M&A, Mr. Wu can take your question. So I will ask our CEO, Mr. Zhang, to comment. I will also add a few points. First, regarding the market in the short term, I shared with you just now, we are of the view that there is pressure in the short term in the market. Looking at our projects and sales in June, the situation was quite good. In June, well, we achieved the best sales record. In July and August, there were different factors. There was suspension in the market, so market demand was affected. Of course, there was also impact from COVID-19 and seasonal factors. In July and August, relatively speaking, sales was lower, transaction was under pressure. Right now we are in this phase. That's about the short term. In different cities for different projects, there may be some highlights. Overall speaking, as I said, there are two main determinants. First, China's macro economy change. In Q2, there was quite big pressure in the macro economy, and in Q3, I think, the state is developing the economy with full force. These are some relevant factors. Second, property companies have to solve many problems, and the pace of solving problem is the determinant. Now, the scale of some companies is expanding. Well, consumers have much clearer expectations, in the short run, we have to look at these two points, short-term changes in the macro economy and also problems that need to be solved for the problematic companies. I think, these are my views about the market. The second question is about M&A opportunities. For us, investment is investment. No matter whether we talk about the public or non-public markets, they're the same. It all depends on different channels. Good prime projects are the only standard. Regarding choice of cities, choice of district in a city, investment return, these are things that we must insist on. At present, in the first half, land reserve, land bank, and investment work is to have bigger percentage in the public market. Competition is weakening, and there is not much change in land supply, so there are more opportunities as a result. In the process, for non-public market, there are also some opportunities. Some other peers are selling their assets and equity. We are also considering these opportunities. In the process, people have different views about the market trend and also asset price. In terms of transaction, I think transaction ratio is rather low. We saw many M&A cases, but then as said in our presentation, we spent more than HKD 10 billion in M&A, so we'll continue to do this work in the coming few months. No matter whether in the public or non-public market, we will be proactive. We will try our best to seize the good projects. Of course, it all depends on the overall development trend in the market because our investment and our production will be determined by possible sales or revenue. We will pay attention to various metrics in the market and we will try to seize opportunities with our greatest ability. I'll see whether there is supplement from my colleague. Yes. Thank you for the company. Overall speaking, in terms of strategies, we focus on three mainstream and core strategies. In the M&A markets up till now, this year, we had picked some projects, and once every two weeks we have meetings on projects. There are not many projects. There are few projects which can meet all our three core requirements. While some peers have stronger monetization, and then they will be fast in conversion. In the process, we adhere to finding opportunities, and in the process, we have to consider commercialization. With financial institutions and market management companies, we are liaising, and in the process, we want to select good quality projects. There are some projects that have been realized already. If you look at the two parties to a deal, well, we think that there may be opportunity to achieve breakthrough. Besides, because of the competitive relationship, now many peers are now in a difficult position. The local governments, local platform companies have some good land and good projects on hand, so they will approach, top good quality companies like us to cooperate. So this is also our opportunity. Thank you. Thank you. Thank you very much. Thank you, Mr. Yan and Mr. Zhang. Meeting secretary, can you now take the second question, please? Thank you. If you want to ask question, please press star one on the keypad. Thank you. Second question is from Ken of Citi. Please go ahead. Thank you. Mr. Yan, management, I am Ken of Citi. I have two questions. First, regarding the whole industry. Mr. Yan always said that, you still have confidence, but then in the market, we have heard that the overall confidence is weak. You are talking about the second half of this property market gain, so how long will it be? Is it true that it will be very long? You said that the total volume will come down in the second half of this overall exercise. How much will it fall? When it comes to the total volume next year, it's CNY 8 trillion. If it falls, then in this second half, to what extent, to which level will there be opportunities to see the trough? In your chairman's report, you said that you are prudently optimistic. In the second half of this year, there may be the opportunity to see the trough. When will the trough be seen? I think many investors would like to know when to get into the market. That's my first question. Secondly, in the first half, it seems that the half-yearly sales was very bad. Can you tell us the product value in the first half? What is the total product value? The sales was HKD 100-odd billion. In the second half, how much is product value? In the second half, there may be some positive policies. If there is increase in product value, so we can be more optimistic in the sales trend. Thank you, Mr. Yan and management. Thank you, Ken. First question, regarding a precise definition of this second half of the game, well, it is difficult. I will let you know later concerning total product value. I will ask our CEO, Mr. Zhang, to answer. First question, second half of the game in the industry. Okay, how long will it be? How much will the total volume fall further? It is difficult to give you all these, information. Well, there are many research reports talking about the total volume. Last year, CNY 6 trillion. People are of the view that the Chinese market can go to CNY 10 trillion, and there is also new increments. In the cities, there is redevelopment. Many of our properties have reached the age for redevelopment. Overall speaking, in China, there is like a 2% replacement ratio. There is the calculation corresponding to the total volume. Perhaps later on, we can communicate further on the numbers. Overall speaking, I think the point is, no matter whether it is CNY 10 trillion or CNY 12 trillion, it is a huge market in the industry. If the total capacity is CNY 10 trillion, it is really, really enormous. For us, the industry is still a big, big one, and we can adhere to this industry in the long run. If you look at history, you can know that after reaching the peak, then it will come down at a certain time, but then the pace of decline may not be very big. The market, overall market size will still be huge. I think we can take reference from that. The total volume will be a bit lower, but how much lower is difficult to tell. Overall speaking, it won't be too low. How much time will the second half of the game take before the market stabilizes? From our point of view, I think we are now in a transitional period, and it will take some time. Now it's a transition between the first and second half. Some companies will be phased out, so the process is very complicated, and I think the situation will be rather tough and cruel. It will take some time for this process to take place and for this kind of restructuring to take place. If you look at competition, also profit margin of the industry, well, after stabilization, things will become steady. The overall competitive landscape will be different. We will see another new equilibrium. Now the market is in an adjustment stage and also a conversion or transitional stage. That is our overall judgment. How long will this be? It all depends on the macro economy. These are some of our not very mature thoughts. For the long run, we have confidence. After the transitional period, I think the Chinese macro economy is resilient. Our population and urbanization rates will continue to go up. I think the factors of production will continue to have its full play, so we are confident. Second question is about our saleable resources. I will ask our CEO to take the question. Yes. In the first half of the year and also in the second half, I will let you know the saleable resources. In first half, objectively speaking, January to April was the most difficult period. I think the year-on-year decline was quite big. In June, the decline contracted or narrowed down. Under these circumstances, our sales was down 28%. If you look at cities where we're in, we looked at the data. The decline was 42% in the cities where we're in, so we are above them by 14 percentage points. For the other peers, they came down 40%, so we surpassed our peers by about 10% because our decline was smaller. In terms of cities and comparison with our peers, we are still in a superior position. Besides, our scale and value are balanced. We did not lower price to stimulate sales, to increase sales. We think that we have to adhere to long-term quality development. We have to ensure that. We have take that into consideration. Besides, there are still a few good projects. In Beijing, the total saleable areas was CNY 9 billion. The price is at a good one. In the second half, the project will be sold. For some projects, they are still rather hot in sales. In some cases, sales was normal. The pace of sales was slower than expected. In the second half, when we are able to sell our properties in a normal way, we still have confidence. In the second half, saleable resources amounted to CNY 420 billion. New increment, CNY 31.3 billion. Comparing with the first half, we are more by CNY 10 billion. On the whole, we can have like 500 odd billion. In the second half, 550 billion saleable resources in total. Our chairman just said that right now there is obvious market segmentation. With CNY 55 billion or CNY 550 billion saleable resources, 40% in Tier 1 cities and 30% in strong Tier 2 cities. Those are the best cities among Tier 2 cities. We have picked those cities. In the second half, the structure of our saleable resources is good. In the second half, if you look at the certainty of sale, certainty of return, I think these would be stronger. In second half of last year, our land acquisition was not big. In the first half, land acquisition was at the highest in the industry. We have done some survey. In the first half in Tier 1 and strong Tier 2 cities, they account for 94% of total saleable resources, and 70% of them could be launched for sales this year. I think we will be active in the second half of this year in sales. Thank you. Thank you, Mr. Yan and Mr. Zhang, and thank you, Ken. Let's take the next question, please. Thank you. Next question is from Karl of JPMorgan. Greetings. I'm Karl from JPMorgan. I have two questions. First, regarding gross profit. This year in the first half, your gross profit came down slightly at around 23%-24%, but comparing with your peers, it is still relatively high. For unbooked sales, what is the average gross profit? And for first half this year, for land acquired, what is the gross margin? Is there a range? How high can it reach and how low would it be? That's my first question about gross profit. Second question is about commercial properties. For commercial, there are many SOEs, and because of COVID-19, they had to reduce rent this year. For your company, how is the situation like? Has that been reflected in the rental income in the first half? In the coming few years, there are some new offices and shopping malls that will be opened. Can you give a guidance on total rental income in the coming few years? How much will be total rental income? These are my two questions. Thank you. Thank you, Karl. First question, about gross profit margin. I will ask Mr. Guo to answer. Then regarding rental remission and future revenue target for commercial, I will ask Mr. Wang to answer. Okay. Thank you for your questions. Regarding gross margin, in first half this year, 23.5% gross margin, and it is still a relatively good level and high level in the industry. In the process, as you said, in the first half, our gross margin of sales comparing with now, based on our calculation, is more or less the same. Just now, our president said that in first half last year, we invested CNY 86 billion to acquire land, and this year in August, they were gradually launched. For these land plots, the overall return rate has reached expectation. All along, we attach more importance to net profit margin. Net profit margin can better reflect the overall management capability of a company. For example, whether investment is precise and cost control capability, our financing cost is low, management and marketing expenses are low. Last year in the first half, we acquired land and we achieved 3-5 percentage points on top of our net profit margin. This year in the first half, we acquired land, so it is still on top of our investment benchmark. In the future, this lays a very good foundation for our future development. If you look at the overall market environment, in the coming one-two years, gross profit margin and net profit margin will be under pressure. We believe that with our hard work and efforts, and with our precise and refined management, we will be able to maintain a leading position in the industry. Thank you. Thank you for your interest in our commercial properties. The situation is rather exceptional. We are still under the pandemic. We have to make sure that we can have sustainable development and growth and long-term operation of our properties. This year, we will focus on the long term to look at our operation of commercial properties to ensure sustainability. Our tenants are very important long-term operating resources for us, so we have to ensure that we can grow in the long run together with our tenants. In the first half, there was uncertainty in the external environment, so we adopted a number of measures to relieve pressure for our tenants. We wanted to ensure operating stability for our tenants. As of interim period of 2022, we already took the initiative to reduce rent for our tenants. In the first half, based on the cities where our rental properties are in, we looked at the overall situation, and we offered some assistance and rental reduction to some tenants in a focused way. We are trying to discharge our social responsibility. Right now for SMBs and also, sole proprietorships, we offered rent reduction for three to six months. That is our standard. Looking at present, total amount of rent reduction only accounted for a small percentage of our revenue. There may be some impact on the overall results, on our interim results. However, we still have very good product structure in terms of our offices and, shopping malls. This year- Actually, in the first half, there was a lot of challenge, but we are still able to achieve increase or growth in our results for our offices. There is sustainable growth in our overall revenue for the half-yearly period, and there is launch of new projects. We have confidence in improvement in our rental income. You just asked about the next stage. Under the overall strategic framework of our company, we will adhere to our original strategies for our commercial properties. In the process, we will remain vigilant, and we will try our best to embrace opportunities. We hope that we can achieve our targets. Thank you very much. Thank you, Mr. Guo and Mr. Wang. Please take the next question. Thank you. Next question is from Haitong, Zhou Li, please. Thank you, Mr. Yan and management. I am Zhou Li from Haitong. I have two questions. First question, I think in the industry now, there is one important piece of work about security housing. What will be the impact on your overall operation, and also in terms of confidence of people to buy properties, and what are your strategies in relation to this kind of social security housing? Second question, I would like to take a look at new development model of the property sector. Today, the downturn in the market is even stronger than expected. Concerning future new model and also the related requirements, what are your thoughts? Can you share with us? Thank you. Thank you for your questions. First question, the assurance of delivering properties. I will ask our CEO to answer. For the new development model, this is a broad question, so I will answer you. Okay. We have to ensure people's livelihood and social stability, so it is important to ensure product delivery. Of course, there have been some problems, but this is still not an overall problem. I think it only happened to some cities and some projects. Right now, the central government asked the local governments to be responsible, to make sure that product delivery or property delivery can be ensured. Well, for cities and projects that we are in, I think we are only talking about individual property enterprises. In this process, of course, there is the regulation, the regulation fund and also the government's measures to solve the problem, especially when you look at Zhengzhou and other cities. In cities that we are in, I think the government is managing and controlling the regulation fund. I don't think there is a very big dilemma. When it comes to impact of this measure, of course, there are discussions among consumers. At the same time, people will then opt for quality, credible enterprises. When consumers buy properties, I think this trend is quite obvious. We're able to deliver properties with high quality in 100% of the cases, so we are able to get good word-of-mouth and reputation among consumers. As Mr. Guo said, in the first half, in 100% of the cases, we ensured high quality delivery. In one-third of the cases, we actually delivered earlier than expected. I think this process is actually favorable to us. Okay. Regarding your second question, development model of the industry. The industry is now in a transitional period between the first half and second half. In this process, we have to wait for clearer signals. There are three trends that are apparent. First, if you look at enterprises' strategy, where the degree of professionalism will be higher and higher, and in terms of transformation, we have to be diversified. Our company and our peers have been making a lot of exploration about diversification, so not only about residential. Some companies are moving into other industries. In the future, I think professionalism will be more important. Secondly, if you look at strategies, I think companies will be more focused. We'll be more focused in particular cities. Nationwide, property companies will decrease in number, and there will be more and more regional property companies being born. I think, of course, different companies' focus will be different. We will have different positioning. In terms of operation management, if you look at financial management, we'll be more prudent and sound, and we will control leveraging. Recently, you can see that in some cases, leveraging might be too high, and so there would be a lot of pressure. If you refer to the new development model, I'm sure a reasonable gearing ratio is a must. Secondly, internal management and refined management capability. This is very important. Overall speaking, profit margin of the industry will be coming down, but then at some point of time, it will stabilize. We believe that the industry's profit margin will be such that we will be at a relatively high point. For property companies, they are capital-intensive, so risk is relatively high, so profit margin is relatively higher in this industry than other industries. Well, if you look at our own internal management capability, management of cost and expenses, I think this is an important capability. For operation capability and management, I think management has to be, or financial management has to be done well. This is particularly necessary. In terms of, strategies and our own, management measures, I think, there would be a lot of new, initiatives. Thank you. Thank you. Because of time, we will now take the last question. meeting secretary, can you take the last question, please? Thank you. Last question is from John of UBS. Please go ahead. Thank you. Thank you. Mr. Yan, management, greetings. I have one question. For your company's cash flow, it is stronger than many other peers. This is because you are mainly focusing on high-tier cities, and your financials are very sound. Given this background, my question is about your company's strategies. Apart from traditional development, business, for the other battlefields, can you share with us, for example, commercial property, leasing property, logistics property, data center? Are you going to consider these verticals as well? Thank you. Okay, thank you. Every year in the past, we shared with you our strategic ideas, today's industries, tomorrow's businesses, and so on. Now, we allocate 90% or above resources in residential development. 7%-8% resources will be allocated to commercial property development, so commercial is tomorrow's business. Besides, elderly care, that will be, like 1%-2% of our resources. That is business for the day after tomorrow. We are making plans for business, today, tomorrow, and the day after tomorrow. We are making plans. Overall speaking, residential is still accounting for a big share. For tomorrow's business, commercial property, we are increasing investment these two years. Of course, you can see from our report, overall speaking, this year, under the pandemic, with rental remission, we still achieved revenue growth in commercial properties, up 6.2%. For the whole year, we believe there will be new projects that will be launched, and our revenue will go up. We will be able to complete our commercial property goals, for the 14th Five-Year Plan, we are confident. Then we are also nurturing other properties. We also have logistics, and senior care and so on, so they account for a small share right now. On the operating side, we are accumulating our energy, our resources, and experience. In these two years, there was impact from the pandemic, so operating properties are being greatly affected. We invest less resources in that part, and we are still in the learning curve. Elderly care in the future Chinese society, after our society is aged, there will be more development opportunities. We think that this business is for the day after tomorrow. Because today, if you look at business models and price and also fee structure and so on, it still takes time. In the future, there would be a huge market when conditions are more mature, when this concept of elderly care is more mature, and when the payment model is more mature, when people's affordability is higher, then I think a market-oriented elderly care business model will see an explosion. Today, 90% and above of our resources are in residential development. At present in the industry, I think this business is still quite sound. Our profit margin is still higher. For commercial, we still need to nurture. We have old and new businesses. While commercial property is tomorrow's business, for some other industries, there's the need for incubation for longer time. Those will be businesses for the day after tomorrow. That's our definition and our execution. At present, if you talk about the turning points between the first half and second half of the property sector game, while the impact on us is not very big, but in the process, we will see adjustments. Right now, we are operating safely, and stability is the most important, and we strive for progress amidst stability. We'll be more focused in investment. In the long run, that is the path that we will take. Regarding diversified mix of industries, we talked about industries for the day after tomorrow. We are working on them, but we are not investing a lot of resources. We are learning and accumulating experience. In the future, we will wait for opportunities. But right now, we will not invest too much resources into those industries. We need to strike a balance, so that we can be stable and sound today, and tomorrow, we can be faster, and the day after tomorrow, we can be both fast and stable and steady. Thank you. Thank you for joining China Overseas Land & Investment Limited's 2022 Interim Results Announcement. Thank you, analysts and investors for your interest and support.