Afternoon. This is the 2020 annual results announcement by China Resources Land Limited. Thank you for taking your time out of your busy schedule to participate. First of all, allow me to introduce to you members of the management today. They are sending their regards from Shenzhen. We have Mr. Li Xin, the President. Good afternoon. VP and COO, Mr. Zhang Dawei. Good afternoon. Executive Director and Chief Strategy Officer, Mr. Xie. Mr. Guo Shiqing, CFO. There are two parts to our presentation. We'll hear the management talk about the performance of the year, followed by Q&A session. I would like to remind you that you can raise questions, and if you are calling in through a telephone line, you can press star one and wait for further instructions. For those online investors, please input your questions in the chat box. We'll provide our responses altogether at the end. Mr. Guo will present the whole year performance. Mr. Guo, please. Dear investors and analysts, good afternoon. I am going to take you through the performance of CR Land in 2020. In 2020, we achieved solid results and enhanced shareholder return amid very challenging environment. If you look at all the indicators, we are way beyond expectations level. Revenue, RMB 179.6 billion. Rental income, RMB 12.8 billion, up 14.5%. Attributable net profit, RMB 29.8 billion. Core net profit, RMB 24.1 billion. EPS, RMB 4.18, and DPS up by 26.5% to HK$1.48. 2020, we saw growth in terms of key businesses. Shareholders' return dividend payout ratio also increased. DP revenue increased by 23.5%. IP rental income up 4.5%. Core net profit up 11.6%. Dividend payout ratio increased to 37%. DPS increased 26.5% year-over-year. If you take aside the inventory depreciation factor, the GP margin is 30.8%. Because of such pressure, our company has adopted a number of measures to enhance efficiency, lower our cost, and enhance overall quality. We're talking about RMB 2.6 billion impact on our core profit. In a way, it actually affected the bookable profit level. Because of the effectiveness in our various policies and measures, we were able to lower the levels of various cost factors and also fees to ensure double-digit growth for shareholders' return. Whole year dividend ratio increased to 37%, earnings per share CNY 1.48 or HK$1.48. We have realized DP revenue RMB 157.1 billion, up by 23.5%. Booked GFA increased 38.5%. Booking ASP RMB 15,063. Tier 1 city revenue contribution decreased by 7 percentage points, 35% revenue contribution from top five cities. We saw a strong rebound on shopping mall business, driving up our annual rental income. IP revenue up 4.5% to RMB 12.79 billion, with shopping malls being our core assets, accounted for 73% of fair value and 79% of rental income, up by three percentage points. Rental from shopping malls reached RMB 7.09 billion, up 7.9%. If we exclude rental concession impact, rental growth could have been 16.2%. Rental income dividend interest ratio reached 0.84. Within two years, CRL is going to be the one developer whose interest and dividend can be fully covered by our rental income, demonstrating strong resilience of our business and asset ratio. Beginning from the year 2000, we have seen very good growth of our rental income level. By 2022, we'll be able to become this strong leader in the market. We are going to really stand out in the market among our peers. We are going to have very strong support for our business development in the future. We have a strong balance sheet, green zone on the three red lines policy, and also sufficient financial resources. By the end of the year, cash and cash equivalents up by 38.3% to RMB 89.5 billion. Total debt up by 22.6%, while net interest-bearing debt to equity ratio stayed low at 29.5%. As a green zone company under the three red lines policy, there is still ample room to further improve our performance during the year, Standard & Poor's, Moody's, Fitch Ratings maintained as previous credit ratings. We further optimized our debt structure in 2020 and funding costs reached new low, sector low funding costs at 4.08%, 0.37 percentage point lower, the lowest in the company's history in the past five years. Now let's look at our business review. First of all, contracted sales. GFA and ASP -driven contracted sales growth exceeding annual target and maintained top 10. Our contracted sales went up 18% to RMB 285 billion. Attributable contracted sales went up 14% to RMB 186 billion. Seven cities contracted sales over RMB 10 billion. Contribution from Tier 1 and Tier 2 cities accounted for 85%. Contracted ASP exceeded RMB 20,000 / sq m, up 9.8%. Shopping mall performance went above expectation with higher efficiency in yield. Rental income, 45 core shopping malls exceeded RMB 10 billion for the first time, an increase of 7.2% year-on-year. Occupancy rate remained high at 94.7%. Retail sales up by 14.3% to RMB 3.8 billion. Gross profit margin maintained stable at 72%. EBITDA yield improved to 8.8% with higher floor efficiency. Rental income and retail sales rebound strongly since the second half, thanks to supreme locations and operations. Rental income and retail sales from shopping mall increased by 26% and 34% year-on-year, and recorded same-store rental and sales growth of 15% and 19% respectively in the second half. Retail sales from luxury shopping malls accounted for 46% of the total and increased by 52% year-on-year in the second half. The growth momentum continued in the first two months in 2021, with average increase in rental income and retail sales exceeding 41% and 63% respectively. The retail sales from luxury shopping malls increased by 78% year-on-year in the second half. Our rental and retail level for February this year is based on the same level of growth compared to same period in 2019. It is because of the pandemic, so it is for reference only. The big moat in shopping mall business, we have comprehensive strength ranking number one among. For our 19 shopping malls out of 45 and 36 out of 45 shopping malls, they ranked number one and top three in retail sales in their respective cities. We have leading position in scale with a total of more than 100 malls in operation, plus pipeline with total GFA over 11 million sq m. We have three differentiated product lines, MIXC, MixC World, and MIXC Zone. Leading position in mid to high-end mall operation with biggest number of luxury shopping malls and luxury brand stores in China. We're cooperating with more than 5,000 brands or more than 80 luxury brands. With close to 15 million VIP members and the member consumption increased 8.2 percentage points to 53.7%. Our rental income from malls with different maturity recorded steady growth even after the pandemic and rental concession impacts. Then we have improved efficiency and profitability, increased rental income and occupancy rates for offices. Rental from office business increased 15.5% to RMB 1.6 billion. Occupancy rate increased by 6 percentage points to 82%. Gross margin remained high at 72%. This is very difficult to achieve against the pandemic, and this is also closely related to the office strategies of our company. We focus on core cities, locations, ensuring high quality and performance. By the end of the year, we have 22 offices in operation with GFA approximately 1.3 million sq m, 100% in Tier 1 and Tier 2 cities. For hotel business after the pandemic hit, we currently have more than 30 hotels, 13 of which are in operation. Each hotel in operation stands leading position in their respective cities. In 2020, rental income from hotel business reached RMB 1.09 billion with a gross profit margin of 8.4%. Other than our hotels under operation and management, which cover 30 -odd, we already have 13 hotels in operation. We have strong growth and our CR Mixc Lifestyle delivered satisfactory results in the first year of listing, exceeding market expectation. They went listing successfully and being the year's third largest IPO on The Stock Exchange of Hong Kong. After listing, P/E ratio is leading in the industry and market cap exceeded RMB 100 billion after one month of listing. It's included as a constituent stock of Hang Seng Composite Index and a constituent stock of Hang Seng Stock Connect Greater Bay Area Composite Index. In 2020, revenue increased 16% to RMB 6.78 billion. Core net profit increased 148% to RMB 0.82 billion. Gross profit increased 94% to CNY 1.83 billion. Proportion of area under management for the group and third parties increased to 23.7%. We synergize with key businesses for future growth and land acquisition foster new growth drivers. Turnover in a year was RMB 15.36 billion, excluding business within the group, with urban construction and operation business revenue accounting for 97%. The next five years, ecosystem elementary business will join as three key business to build a comprehensive capabilities of urban investment development and operation for the group to support the growth of our main business and to develop with self-sufficiency while contributing to the brand influence of the company. We also have sufficient total land bank with optimized structure to support the company's sustainable growth. 58.1 million sq m DPU land bank by the end of the year. The proportion of land bank in Tier 1 cities increased by 3 percentage points to 11% year-on-year in better quality. During the year, the newly added land bank GFA reached 14.92 million square meters, and the newly added attributable land bank GFA was 11.48 million square meters with the GFA attributable ratio at 77%. The land bank GFA of investment properties reached 9.88 million square meters, with shopping malls accounting for 59%. We focus on strategic cities. Shopping mall business focus on 30 core cities including Beijing, Shanghai, Shenzhen, Guangzhou, Hangzhou, Nanjing, Chengdu, and others. GFA in high-tier cities accounted for 77%. By the end of the year, the IP business had exposure in 60 cities, basically completed our nationwide core city expansion. Now, let's look at the 14th Five-Year Plan outlook. We will focus on developing the comprehensive capacity of urban investment development and operation with 3+1 integrated business model. The three refer to our development property business, investment property business, and asset light business. The one represent our ecosystem. For the development segment, we cover residents and public area, and they are main contributor to our revenue. Our target is to be top 10 developer in contracted sales. For investment side, we cover shopping mall, offices, and hotels. They are main contributor to revenue and cash flow. We want to be number one in comprehensive strength of shopping mall. Our shopping mall capability is already number one. For asset light business, we are talking about China Resources Mixc Lifestyle Services Limited, and we want to be the most influential and number one brand name. We will synergize with our key businesses for future growth, we will synergize with key businesses for land acquisition and cultivate new growth pool. Our ecosystem include urban development operation, leasing apartment, industrial properties, union housing, cinema, theater, education, et cetera. During the five-year, we will reshape CRL and sustain high quality growth. We expect to double the attributable contract sales and rental income by the end of 2025. This is the initial target. At the moment, we have RMB 12.8 billion. The whole year target is RMB 25.6 billion. By 2025, we believe that the rental income will reach RMB 30 billion or even higher. We have abundant and high-quality sellable resources supporting full year target. Sellable resources, RMB 505 billion, 81% is from Tier 1 and Tier 2 cities, 69% from residential product, 62% from new launches. We have abundant sellable resources supporting our sales target in the year 2021. We also have high visibility for sustainable growth. RMB 272.8 billion already unbooked contracted sales by the end of the year, RMB 157.6 billion to be booked in 2021. Bookable area will remain high for the next three years, ensuring steady growth of the company. During the five-year period or by the end of 2025, number of shopping mall will be doubled, focusing on key cities for penetration. Number of shopping malls in operation should be over 100 by the end of 2025, with a total GFA over 11 million sq m, 77% malls in Tier 1 and Tier 2 cities, over 50% in the four city clusters and complete penetration in 20 cities. Towards the end of the five year, number of office buildings operation will be doubled with focus in core cities. There will be more than 40 office buildings in operation with total GFA over 2.9 million sq m, close to 100% in prime areas of Tier 1 and 2 cities, covering 70% in four city clusters. Now, let's look at corporate responsibility. We have long-term commitment to shareholders. Share price has significantly outperformed the HSI over the past decade. DPS growth driven by stable EPS growth and increasing dividend payout ratio. 2020 was an unusual year. We have conquered the challenges and fight against the pandemic. We have taken initiatives to protect operations of 600,000 clients during the pandemic and offered RMB 940 million rental concession benefiting 13,000 tenants nationwide. We fully utilize the internet, big data, intelligence technology, and other means to launch CRL sales office, which have program develop new function of our MIXC app, and launch digital sales and distribution intelligence to quickly resume work and production. If you look at our ESG indicators, it improved. Electricity consumption and comprehensive energy consumption decreased by 1%, while total green building certified area increased by 24%. We sustained GRESB rating at 4-Star level, and we maintain very good performance and rating for other indicators. Finally, you can refer to some major data and appendix for your easy reference. I won't cover those details. This is the end of my presentation. Thank you. Thank you, Mr. Guo. Now we are going to enter the Q&A session. If you are calling in on the telephone line, please press star one. Please tell us who you represent and your name. Because of time constraints, please do not ask more than two questions. Let's bring in the first question. We have Eric. Thank you. I'm Eric from Zhongxin. First of all, congratulations for very outstanding performance. I have two questions. Mr. Guo talked about Five-Year Plan targets. I can see sales and asset level also doubled, so it seems synergized. What is the logic behind it? It may not be totally consistent. If you look at sales, based on our business model every year, we are keeping the leverage ratio with our further expansion. We have 50%-55% of the cash returned to the business to acquire land. We're talking about very healthy and reasonable level of growth. Rental income 15%, so it seems that the rental target is lower. Logically speaking, the rental enhancement should also include factors like inflation, so it should be even higher. If you look at annualized growth, it is standing already at 20% last year, and that is after rental concessions, so it's been affected by the pandemic. If your target is only 15%, but your growth is to have the size doubled, what is the logic behind this? Can you please provide some further guidance? Second question, concerning land acquisition. How are you going to protect gross profit margin? Last year, in terms of land acquisition compared to the previous year, you were more focused and deeply rooted for these cities that you want to acquire land from. They have fierce competition, how can you more effectively protect your GP margin? What about the profit margin in the future? Can you provide some guidance? Thank you. For the first question, I will ask Mr. Guo to respond, and the second question, I will take it, and Mr. Xie will supplement. Right. Concerning the five-year plan, RMB 12.8 billion is the target, rental level has to be doubled. Last year we already mentioned it should be more than doubled, because if you calculate the CAGR level, it's between 20%-30%. Initial assessment is that we can reach RMB 30 billion, and the growth level is more than 20%. If there are even more positive developments, we may even exceed that level. At the moment, for shopping malls, we may see 30% growth. That is growth in terms of volume, and that's been growing for many years. In terms of volume growth, we will continue to expand by 50 shopping malls in the next five years. To be conservative, the CAGR growth is more than 20%. If we do well, we can go up to 30%. For offices and hotels, we are also talking about the same growth momentum. Volume will be doubled. For offices and hotels, the growth momentum will not be as high or as quick as the shopping malls. Combining all three, we are talking about 20%-30% range of growth. By 2025, at least, we should have RMB 30 billion rental income. This level of cash flow is more than RMB 20 billion. Rental income will cover the EBITDA and also interest rate and dividend. In terms of our cash flow, there is a security in terms of its growth. I will talk about our plan and future acquisition of resources and how that relates to interest rate level. Under macro control measures, more developers are investing in Tier 1, Tier 2 and core cities. We understand this direction. The GP margin for two-tier cities, it is going to be reducing over time. If you look at CR Land, in terms of resource acquisition, we have core strategies to do the preparation. Beginning from 2020, in terms of land acquisition, we have been insisting on our core strategies. We'll continue to adjust our structure. That is during the 12th Five-Year Plan in terms of resource acquisition. Those were the arrangements we made. Also, we focused on our deepening strategies, and we focused on four strategic areas, Guangdong area, including Macau and Hong Kong, Yangtze River Delta, major city clusters. As to make strategic investment arrangements. Secondly, in terms of land acquisition, it was more diversified in terms of our channels. Last year, we got substantial breakthroughs and progress. For example, urban renewal, we have done some speeding up. Last year, we covered Chaiyuan project, Shenzhen project, also another project in Sichuan and a new hotel. We turned such renewed resources to sellable GFA, achieving very positive GP margin. Similar projects in the future, we have also done some preparation work. If you look at our land bank, we are talking about RMB 210 billion in the next five years. We can convert another RMB 150 billion-RMB 200 billion. GP margin for such projects will be higher in general. For the group to obtain land, beginning from last year, we have been promoting group level synergy. In this regard, we have also achieved some breakthroughs. For example, in Shenyang last year, we have this thermal plant, and the sellable level more than RMB 60 billion. Shahe project in Shenzhen for Bao'an area. It is also the city center. Net profit, 12%-15%. There are other business units that have been modularized. Thirdly, using our redevelopment and reoperation model and capability, we obtain further resources. We got Chengdu Dong'an Lake project, and also in Chengdu we have Shiling project and Xi'an Xi xian project. All these were obtained for redevelopment purposes. They have been well coordinated at a group level. Total value, RMB 7 billion. GP margin also on the higher side. At the same time last year, we achieved breakthroughs in terms of M&A in. We set up city center residential project. GP margin almost 40% or even higher. We will continue to follow marketization. We'll continue to look into development of complexes. We'll focus on our competitive edge. We have obtained seven projects. The return level is on the higher side. It is about acquisition in a diversified manner. In terms of GP margin enhancement, I believe CR Land will continue to follow our long-term strategy, which is to build our core competency. In terms of core competency, we are focusing on three areas. We are fairly capable in terms of coordinating among different projects in different cities. We have done such large-scale coordination for urban renewal, covering eight to nine projects. In South China regions, we cover the greatest volume. We are well-aligned with new development needs for different cities, and we have been grasping different opportunities. This is CR Land's unique capability. Secondly, in terms of industry competition, CR Land has been relying on our development and experience in the past decade. We have low cost and high quality, and we also have high level of turnaround capability. We obtain land, and within 10 months, we are able to deliver the property within 13 months. The turnaround speed is very high. Our development capability is also outstanding. We also deliver high-quality products. I think we are doing quite well. Thirdly, low capital cost. In our future development, residential segment, GP margin can be enhanced. Our capability to obtain new assets is also very high, and they will be major drivers for our future business. Thank you. Thank you. Let's invite the next question. Griffin from Citibank. Good afternoon. I'm Griffin Chan from Citibank. According to Mr. Li's response, for city operation, you have gone to Jiangsu and Hainan. In the future, are you confident that you can copy and paste the model in Shenzhen? What should we expect because other enterprises are competing with you? From Eric's questions concerning growth in your profit, most investors are concerned about development profit ratio, because of the situation in the overall industry, it may be lower. Do you have confidence that you can maintain double-digit growth or even go beyond that? Sellable or already sold GFA but not yet booked. Is there room for further improvement in the future? Where is the support for GP margin? Thank you for your question. I will take the first question and then ask Mr. Guo to take the second question. Concerning city operation, this is our core competency. Actually, recently, I have visited various cities. CR Land, after developing for two decades, we have already successfully turned ourselves from traditional property developer into development plus operation in 2005. The first Shenzhen MixC was commissioned. It was residential plus investment model. After a number of years of development in 2015- 2016, in Shenzhen Dachong and construction of another Shenzhen property, we obtained commercial success. We became a comprehensive developer, and we also make investments and operate different cities. This is regional coordination. We have high level of capability of construction and operation of our properties. In Shenzhen Bay, we obtained success, and we have accumulated useful experience, and afterwards in Chengdu, Xi'an, and also in Yangtze River Delta, we also accumulated further success. You can see that we have done quite a number of iconic and representative projects, receiving a lot of recognition from the local governments. In Shenzhen, Dachong Project plus Shenzhen Bay Project, together with urban renewal work, all three factors combined created the standard Nanshan model city investment and development model. This model in the past 13th Five-Year Plan, together with various local governments, we have done a lot of communication exchanges, realizing what they demand will be what we can provide. CR Land is capable, and we are the market leader in terms of coordination. We have accumulated a lot of experience and capability. We have high level of cooperation with local governments. We do regional coordination and planning. This is our outstanding core competency. We'll continue to insist on city investment, development and operations. Other than Shenzhen, we'll focus on other core cities and regions. We will propel forward, sparing no effort. There are different types of cities. Some projects will cover large-scale superstructure complexes. Some will focus on the cities themselves. For the rest, we can also do some regional development. We can also do a lot of redevelopment work and urban renewal work. We cover key cities. We can also remodel or do some urban facelift. I trust that in the future, CR Land is going to continue to rely on this major channel for our future business developments. Our future profit performance will receive a lot of contribution from this side. The second question. During the 14th Five-Year Plan, we're going to do some weeding, rationalization, focus on quality growth. We'll look into sales. During this Five-Year Plan, we are going to maintain low double-digit growth in terms of our competency level. There should be no problem. We have talked about the 3+1 business model. Perhaps I can explain more. I won't cover the same details. We have shopping mall, hotels, and offices. We're talking about 20% odd growth. It should be well achievable unless there is some serious adverse events. In a light asset, CR MixC, it will also be a very important growth driver towards the end of the five-year. The contribution coming from CR MixC will be quite substantial. Another part. For example, we have certain subleasing during this five-year. Basically, there will be good return. For example, for the development side, annual contracts will continue to grow. We'll continue to do restructuring, including newly added land acquisition in 2020. The profit level will be quite positive. For 2021, we have seen some low profit margin for land acquired back in 2016, 2017 and 2018. From 2022 and beyond, the pressure will be alleviated. By adding all the factors, our core competency will continue to grow. Double-digit growth, we feel very confident about that. Allow me to supplement. 2016, 2017, 2018, that was the scenario or the situation in the industry in general. Concerning assets obtained, they were quite pricey. Afterwards, there was comprehensive adjustment and control measures. From our angle, we are still rather strong in terms of asset management to ensure our performance will continue to grow. We have a lot of confidence in terms of management. Thank you. All right. Thank you, Mr. Guo and Mr. Xin. Let's take the next question. John from UBS. Thank you. I'm John Lam from UBS. First of all, I would like to congratulate for a stunning performance. I have two questions. Incentive scheme for 1109, because we can see that from the IPO last year, 200 odd employees and then directors joined this incentive package. Do you have anything similar implemented this year? It was mentioned about recurrent income. Basically, it can cover the dividend payout and interest rate payout. Next year and the year following, do you think there's room for further enhancing the payout ratio? Thank you, John. I will take the first question. Mr. Guo will take the second one. Concerning 1109 incentive scheme. Indeed, our analysts and investor friends are very concerned about this, and we want to thank you from considering this from the management angle. Of course, we hope that we will continue to implement this for obvious reasons. As SOEs, you would understand that we have certain regulatory constraints, but indeed, during the 14th Five-Year Plan, it is going to be an amazing opportunity for SOEs. There will be certain reform policies for SOEs, and CR Land will grasp this opportunity to promote incentive scheme for 1109. It has been commenced already, and during the year, we hope to realize it. Thank you. I will take the second question. You talked about rental income. Can that support higher payout ratio next year, 2021? It is possible. In terms of payout policy, we need to balance long-term stable development of the company and also shorter term return for our shareholders. In the future, in terms of shareholder return, we are very concerned about that, our payout policy. Next year or the year after, we will try to strike a good balance before we make further adjustments. All right. Thank you. Let's invite the next question. Thank you. From JP Morgan, Ryan. Please go ahead. I am Ryan from JP Morgan. I have two questions. First, about development. There are two levels of philosophy. First, on the sales end, sellable resources grew by 20%-odd this year. What about sales target this year? Is it going to grow by the same margin? Another issue, if GP margin outside Shenzhen is 22%, if you look at light asset investment outside of Shenzhen, what is the GP margin for delivery projects or sold but not booked assets? For 2021, GP margin may rebound. Where is it going to happen? Second question, if we look at investment property this year, there should be a major rebound because last year we were hit by the pandemic. Four to five years ago, we talked about this plan to spin off investment business. Later on, you stopped talking about that. In terms of investment business, are you going to spin it off? Or major assets will be spinned off? Do you have any follow-up or guidance? Okay. Thank you. I will take the second question first. GP margin question will be taken by Mr. Guo. Investment property. Ongoing during the 14th Five-Year Plan, we have done strategic rationalization and positioning. In terms of business structure, we have 3+1 consolidated business model. Three refers to development segment, light asset business, also investment property business. For development segment, it is simple. It covers residence and public area. Then investment property will be shopping mall, et cetera. Asset-light business will be CR MixC. For investment segment, in the future during the five-year plan, China Resources Land will continue to focus on this business segment. Its development, we have high expectation. For the shorter term, any spin-off for investment segment or other such arrangements, the likelihood is basically zero. I have another question about GP margin. Beginning from 2019 to 2020, newly signed GFA, we are talking about 22%-25% GP margin. Looking into the future, the GP margin should remain at more or less the same level. We're also talking about land acquisition, and no GP margin from that side. 2020- 2021 delivery will cover land parcels acquired in 2016, 2017 and 2018. By 2022, we should be able to reach 25% level. Thank you. Thank you. Let's invite the next question. From DBS, Wang Shan. Good afternoon. I'm Wang Shan from DBS. I have two questions. About the leverage ratio. Beginning from 2016, the NDRC has implemented a number of requirements in terms of leverage ratio for SOEs. 2020 was the final year, right? After 2021, lowering the leverage ratio in terms of project spin-off, do you need to continue to show any such mission? If the mission is already gone in terms of your leverage ratio, do you think there is room for further enhancement considering the current land -supply policies, and also in terms of adding to your land reserve? That is about leverage ratio. About your reserve. This year, we have done quite a big reserve. Such impairment has been completed. Is that true? Do you think we will do further actions within the year? If it is the latter case, what is the level of impairment? Thank you, Wang Shan, for your questions. I will take the first question, then the second question will be taken by Mr. Guo. It is true that the State Council has proposed a number of requirements for SOEs, China Resources Land has gone through 20 years of development. We have been reliant on very solid and reliable financial policies. This is the outcome of both. Whether there will be further requirements coming from the central authority, it is not totally clear. We will not go beyond BBB+ rating, we will not fall beyond our financial baseline. We will continue to be very strict in terms of realizing the leverage ratio put forth by the SASAC. When it comes to flexibility in actual use, of course, we will combine land supply situation and see how controllable things are, then perhaps obtain certain good opportunities in terms of land resources. Solid and reliable financial policy, BBB+ rating, all combined together will drive us to continue to achieve low level of growth. This kind of growth is very solid and healthy. Thank you. Well, allow me to respond. According to our previous announcement, between 2016 and 2018, indeed, we got land resources that were quite pricey. The government implemented certain policies leading to certain losses. For 2020, basically, we have already covered such issues. Beyond 2020, this is no longer an issue. Thank you. Thank you, members of the management. Let's invite the next question. Thank you. Next question is coming from Merrill Lynch, Mr. Gao. Yeah. One question. Does that mean the contract growth target of this year will be higher than 15%? That is our target. The national authority is promoting the rental income, the rental market, therefore, we want to have an idea on the service apartment development and the rental market development plan. The first question is to Mr. Guo, and I will take the second question. We have three major policies in place. We have to take them comprehensively. They are the two red lines. The three red lines, two of them are related to the supply of land. From the market perspective, I think that has an influence to the market resources and the target of sales. What is the influence of our sales because of the three red lines? What is your target of growth of sales? We are aiming RMB 3 billion-RMB 5 billion. Last year, we realized RMB 285 billion, so RMB 3 billion-RMB 5 billion is the target for this year. The rental market. This is your second question, I take it. I have to mention, what is the role of the real estate in the 14th Five-Year Plan? We have 3+1 business model. Long-term rental service department is the plus one part of this policy. That means we have to integrate ourselves as the ecosystem builder of the city. The long-term rental apartment is one of our focus of development of CR Land. In the 14th Five-Year Plan, in this regard, we will have some key fundamental developments and positioning. In the last five-year plan, the 13th Five-Year Plan, we made some advances in this regard that yield very favorable results. So far we don't encounter any major difficulties, and we have some scalable resources by leveraging our leverages and boost the development of the long-term rental apartments. Through the past several years, we penetrated into Tier 1 and 2 cities, and we have a considerable amount of the reservations. By last year, 7,400 rooms are open to the market. That yield around RMB 200 million, RMB 100 million margin is generated as well. We made our reputation, and we made the good quality of development. In the future, in terms of the reservation of resources, the growth rate will be 1,000 rooms per year. That I mean 1,000 new rooms will be added to our reservation. The growth rate of the performance will be over 40% per year. For the incremental growth, that is the major driver of our financial performance in the long-term rental apartments. We will consider to invest a considerable amount of the money each year, mainly focusing on Tier 1 and 2 cities. By using the collective utilize the land and the rental lands, we will develop this market through a light -capital way. I hope by the ending year of the 14th year, we want to be the top 10 player of the rental apartment market. Next question. I invite our operator to invite the next question. Next question is coming from CITIC, Chen Cong. Good afternoon. I'm Chen Cong with CITIC. Two questions. First is the office market. Office market has been influenced tremendously by COVID-19. The occupancy rate dropped. What is your strategy in coping with that? Are you going to take less land in this area, or what's your strategies to cope with the situation? Second, other competitors is restructuring the management structures. Some of them cut their regions and reintegrated the regions, and some give more autonomy to the lower levels, some take up the decision-making to higher levels. What's your takes and ideas in restructuring of your administration? How do you maximize the talent and make the best use of the talent pool? I have those two questions for you guys. Thanks very much. I'd like to take both of those two questions. For the office market, as you're aware, the industry is apparently showing the very weak and difficult time. It's oversupplied. For CR Land, the office market has two situations. The one office is a sales-driven market. That means when we build it, we won't sell it. The other is an integrated one. They are being integrated into a large comprehensive mass, so mainly located in Tier 1 and Tier 2 cities. We will operate them after completing them. When we are setting our principle of acquiring the resources, we made some plans. We do some restructuring. We want to consume the existing stock. We have a specialized plan in this regard. Starting from last year, we are dealing with those headache issues, like the selling of the office. We made very good results. Far, that project yields very positive results through various means, through various channels. By six months, they achieved a sales performance over RMB 30 billion. Looking at the location of the cities of those offices, they are mainly located in prime cities at the prime locations. Therefore, that formed our competitive edge, and it is within our expectation. For the rental office, so far, CR Land, by the end of 2020, we are holding 44. Among them, 22 are operating. For those under operating, the quality are quite good. There are two features of those offices. Those rental offices are located in Tier 1 or 2 cities at the prime location, playing as an integral part of a bigger environment. When they complete it is the landmark of that city. Those lands were acquired quite a long time ago, we have the advantages of the low cost. Through the performances so far, we can have very positive results. The general rental income is RMB 1.6 billion. The margin is 72%. The EBITDA is 7.6%. This is the basic figures. You can see the very positive trend. The tenants of our office are quite high-end. Among them, a good number of those tenants are top 500 Fortune companies. I think 112 tenants are among the top 500 list. In the future, I hope these kind of resources will form a very good influences and will form a very good profit source for CR Land. This is my answer for office. For the restructuring of our company, thanks very much for your observant question. Yes, I'm from CITIC, Chen. Thanks very much for your question. When they are doing the reviewing of performance during the full 13th Five-Year Plan, one of the conclusions is that the 20-year development of CR Land gives us a quite new perspective in reviewing our company. We are no longer a very specific developer. We are quite comprehensive. When we're doing the management, we have to restructure ourselves. What's the major direction of restructuring? First, the frontline should be consolidated, should be strengthened, and should be enhanced. They should be able to drive the development by themselves. Second, we need a strong headquarters. As a company valued over RMB 1 trillion and operating at various channels and markets, the headquarters is playing the role as the central operator or the manager of the whole company. Therefore, we do some due restructuring and adjustments. Generally speaking, we want to strengthen and enhance our whole company, our frontline, and our headquarters. For the major regions, they are the performer of the duties assigned by the headquarters. They are the major transition player between the cities and the headquarters. They are playing a key coordination role in between. Through those adjustments. The human resources are really directing to the headquarters, and the financial resources, the talent resources, are all directing and channeling to those regional and city companies. The realization of performance, the realization of budgeting, and the KPI evaluation are really integrated with each other. By doing this, we are enhancing the self-driving capacity of the frontline workers. Our core administration team will be channeled to the headquarters in order to enhance our controlling capacity. A couple of the Directors, high-level VPs, are relocated to the headquarters in recent years. This is the major change of our restructuring. Now we have five CEOs plus one President. This is a very strong leadership. With the demand of our development, we have COO, CHO, and CTO, and CIO, and CFO. Through those five plus one leadership, we hope we can form a well-managed and well-organized headquarters. We will set a very strong line in the management of responsibility as of those regional companies. Those regional subsidiaries is the major responsibility on realizing the budget, the target, and the duties assigned by the headquarters at the local level. Secondly, we initiated the talent cultivation program to those young managers, and we are brave enough to use and to give the major management role to those people of post-1980s or post-1985. We evaluate the performance of those young managers with their KPI performances in order to incentivize their performance. We are also doing a lot of trainings on the organization capacity. We have Huarun Academy or Huarun University. We want to leverage those resources to do the best training to our management staff. In the training, they will do the very practice-driven training model. Therefore, they can make a very good result, and that university will play a key role in cultivation of talents. Okay. Thanks very much. Operator, please get us the next question. Andy. I have a couple of questions. Only one minor issue. Last year, I think you acquired quite a big number of lands. You spent RMB 140 billion. That accounted only 18% of the total sales. Do you think that percentage of 48%, I think this 48% is the highest among all the peers. After the three red lines, do you think you are going to use less percentage of the sales revenue to do the acquisition of land? I'd like to pose this question to CSO. Yes. You just mentioned RMB 140 billion. I don't think that is the correct one. I think the total equity value is RMB 195 billion. This figure shows the legacy and the tradition of CR Land. The market is quite competitive, we are very prudential, and we are doing the restructuring, repositioning by ourselves amid of these competitions. We are using various channels and means to acquire the land. Now we see the very good payoff. We have good quality and good returns. We have two concentrations policies, as you know. This policy is quite favorable to company like CR Land because we are classified as green. For our company, we benefit from the market movements. We take very scientific view in making the decision and take the right timing to make the right financing decision. On top of that, I believe in 2021, the acquisition land, we won't miss the good opportunity. In the interest of time, I'd like to take the last question. Operator, please. This is the last question from Xingye, Ms. Fu or Fujian. I'm Xingye analyst, Fujian. I just read the news that the SASAC require all the listed company to do the performance, to do the results release to make the better communication with the market. You set a good example in this regard. I think in the next stage, SASAC, do you think they will make some changes in assessment of those listed company before they set some threshold on the gearing ratio, on the margin rate, and on a lot of other figures and requirements? Now, given the current situation, do you think China SASAC will make more assessment requirements in order to reflect the changes of the market? It's a good question. It's a deep question. I will give my humble answers. In the 12th Five-Year Plan, the 13th Five-Year Plan, SASAC did not make very direct administration influences to CR Land. They just set some requirements, and we revise up to their requirements. I think the most obvious feeling of our CR Land is that the leveraging ratio requirements, I think this is the very fixed requirements, and the SASAC set these requirements and our company carry on these requirements. The SASAC sets the requirements on the losses reduction and the reduction of the capacity. I don't have very strong and obvious feeling on the other respects, so we just carry on our performances in accordance to the Hong Kong Exchange and other administrative authorities. I don't have the very good knowledge to answer your question further, but I think the general trend is to manage flexibly. Thanks, Ms. Xing. Before the final conclusion of today's annual results, I would like to pass the floor for the wrap-up. Mr. Li. Thanks very much for your continuous support and attention to CR Land, as well as your trust. Through the 13th Five-Year Plan, CR Land realized the very high-quality growth, thanks to the excellent direction set by the Five-Year Plan. In the next Five-Year Plan, we will still position ourselves on the three major businesses, development, operation, and the light asset management. We want to make the high-quality development and growth. Moreover, we will be proactively to develop the new ecosystem like the long-term rental apartment service. We will insist on offering good quality and good products and build up our weaknesses. We will take a long-term view and keep a prudential financial requirements. We will set the strategically important viewpoints in making decision. We will use technology and science to enable and empower our performance. In this Five-Year Plan, we believe we will make the good performance in transitioning, in the high-quality development, and in the long-term development. I think in this new Five-Year Plan, we will continue our legacy and continue our braveness and continue our pursuit of excellence practice to the top level of our industry. Therefore, we can pave the way of high-quality development and be the model of this industry. Thanks very much again for all the analysts and investors. Thank you. Thanks, Mr. Li. I can feel your confidence, and I can feel your vision through your conclusion remarks. This is the final end of today's session. If you have further questions, please never hesitate to contact the IR department of our company. Wish you very good health. Wish the virus is behind. Wish we can see each other soon.