Good afternoon, ladies and gentlemen. Welcome to Sun Hung Kai Properties Analysts' Briefing for FY 2022 Annual Result. As usual, I'll give you an overview of the results and the performance of major business segments in this section. Then we will have a Q&A session with our senior management. Let me start off the presentation with financial highlights of the result. Please note that all figures are in Hong Kong dollars unless stated otherwise. For the year-end at 30th June 2022, the group's underlying profits amounted to HKD 28.7 billion, down 4% year-over-year. The decrease in underlying profits primarily due to the reduction of property development profit from the mainland. The reported profits decreased by 4% to HKD 25.6 billion, after taking into account the revaluation loss of investment properties of HKD 2.9 billion. The underlying earnings per share and reported earnings per share were HKD 9.91 and HKD 8.82 respectively. On dividend, the Board of Directors has recommended a final dividend of HKD 3.70 per share. Together with the interim dividend of HKD 1.25 per share, the total dividend for the full year will be HKD 4.95 per share, the same as last year. Our dividend payout over the past few years is shown on this slide. For the profit breakdown by segment. The group's property development profits declined 25% year-on-year to HKD 15.8 billion. The decline is mainly due to the lower development profit from mainland. On the other hand, property development profits from Hong Kong record a mild increase of 2% year-on-year to HKD 14.8 billion. The group's rental business was affected by the latest wave of pandemic outbreak in Hong Kong and on the mainland. Nevertheless, the group's total rent, net rental income amounted to HKD 19.3 billion, up 1% year-on-year. Net rental income of the mainland portfolio was up 8% year-on-year in Hong Kong dollars terms, or 5% in RMB terms, offset by 3% decline in net rental income from Hong Kong portfolio. The group's hotel business in Hong Kong continued to be affected by the lingering pandemic and lack of tourists, resulting in HKD 429 million operating loss during the year. However, the loss was narrowed as compared to that in last year. Profit from other business was down 4% year-on-year, largely due to the impact of government subsidies received in previous financial year. The total operating profit was down 12% year-on-year to HKD 39 billion. During the year, the group continued to maintain strong financial position. The net gearing ratio as of June 2022 was 17.4%, while interest coverage ratio during the period was 12.8x. Net book value per share rose to around HKD 207. With a strong financial position, the group maintains A1 and A+ credit ratings from Moody's and S&P respectively, both with stable outlook. As always, we shall continue to adhere to our prudent financial management discipline with ample liquidity, diversified funding sources, and well-balanced debt maturity profile. Now let me talk about our property business and start with the land bank in Hong Kong. As at the end of June 2022, the group's total land bank in Hong Kong stood at 57.1 million sq ft of attributable GFA, comprising 34.7 million sq ft of completed properties and 22.4 million sq ft of properties under development. Shopping malls together with offices account for 65% of the completed properties. Residential projects for sale account for the majority of the properties under development, representing 73% of the total. During the year, the group added a combined GFA of about 1.1 million sq ft to its land bank through two lease modifications. The group completed the lease modification for the large scale residential project in Tsui Ping, increasing the project's total GFA by around 1 million sq ft to about 5.8 million sq ft. The project was initially converted from farmland with a total GFA of about 4.8 million sq ft. It will be developed to a sizable green cross-generation living community with comprehensive facilities. In March 2022, a site near Fairview Park in Yuen Long was converted from farmland with the premium paid. We're now seeking further approval for revision of the development parameters. Moving on to the property development business in Hong Kong. For the year under review, the group recognized HKD 32.9 billion property sales in Hong Kong, down around 6%. Development profit increased by 2% to HKD 14.8 billion due to higher sales of high-margin residential units. Major contributions include [Wellington] Park Phase 2 and Phase 3, [Wellington] Bay Phase 1 and Phase 2, as well as Regency Bay and Regency Bay II. As at the end of June 2022, about HKD 20.5 billion of contract sales were yet to be recognized. This table shows the group's upcoming completions in the next three financial year. We expect to complete about 3.2 million sq ft of eligible GFA on average in each financial year, of which 2.4 million sq ft will be residential projects for sale. Apart from these new completions, around 550,000 sq ft of sold completed properties will be booked in the coming years. Amid an impact of fifth wave of pandemic outbreak, we managed to achieve contract sales of HKD 29.6 billion in Hong Kong. Since July 2022, we have already recorded contract sales of over HKD 10.5 billion, mainly from NOVO LAND Phase 1A and 1 B in Tuen Mun. We plan to launch five new residential projects in the next 10 months, amounting to 1.6 million sq ft with over 2,800 units. We also continue to sell remaining units of newly launched projects such as The YOHO Home Hub Phase 1, St. Michel Phase 1 and 2, and Prince Central, as well as unsold completed units. Now, let's move on to the performance of our Hong Kong rental portfolio. The group's diversified rental portfolio in Hong Kong continued to generate sizable recurring rental income, despite the negative impact from the Omicron outbreak in the first quarter in 2022. Overall, gross rental income during the year amounted to HKD 17.6 billion, down around 3% year-on-year. The overall average occupancy stayed at a relatively stable level of around 92%. The magnitude of retail gross rental income decline has narrowed to 3% as compared to the decrease of 8% in last financial year. The gross rental income of office portfolio decreased by 4% to HKD 6.3 billion, mainly due to the negative rental reversion. The group's retail portfolio has been on a recovery trajectory since April this year, amid the gradual relaxation of social distancing measures. Tenant sales have seen rebound since the second quarter this year, outperforming the market. Overall footfall has resumed to the pre-fifth wave level. Leasing inquiries for the group's mall have been increasing with more existing tenants looking for lease renewals with longer lease terms. During the year, the retail portfolio achieved a healthy overall average occupancies of about 95%. The group has proactively launched initiatives to better meet shoppers' changing needs and appetite. The trade and tenant mix was reshuffled, bringing new retailers such as popular restaurants, young fashion brands. Recently, we introduced a renowned Japanese pharmacy chain and popular skincare brands to our shopping malls. The group continue enliven both indoor and outdoor spaces at its malls with fun elements and smart technology to bring further delights to shoppers. To seize business opportunities, particularly those arising from the new round of consumption voucher scheme, the group has worked closely with tenants and business partners to roll out extensive promotional and marketing campaigns to boost footfall and tenant sales. We also leverage our online platform and loyalty program for our malls. A recent launch of new function allow the points members to convert bonus points into point dollar, which can be used directly as cash for purchase at over 2,000 merchants in the group's 25 major malls. Despite challenging market condition, the group's office portfolio was able to record an overall average occupancy of about 92%. As a preferred choice and a prestigious address of renowned corporations, Two IFC and Core Central were almost fully let during the year. Multinational and mainland financial institutions took up new space at IFC for business expansion or upgrade, while existing major tenants renewed their leases. Hong Kong ICC recorded a reasonable occupancy, and both Two IFC and ICC recently attained Leadership in Energy and Environmental Design, i.e. LEED, platinum certifications, showing the group's strong commitment in ESG. In the near term, the two Grade A office towers of the joint venture development at 98 How Ming Street in Kowloon East will be completed in late this year. Pre-leasing has begun, with major quality tenants already committed at satisfactory rental levels. Its 500,000 sq ft retail podium, positioned as a one-stop more than lifestyle mall, is scheduled for opening in 2024. The whole project is targeted to obtain platinum ratings for LEED, BEAM Plus, and WELL. Superstructure work of the mega landmark project atop the high-speed rail West Kowloon Terminus has commenced. This project enjoys excellent transport connectivity to different district in Hong Kong and major mainland city through various railway lines. Designed to attain platinum ratings for LEED, BEAM Plus, and WELL, the integrated development features green and wellness element, including an outdoor viewing deck, a part of the 1.5 km long West Kowloon Parkway, and other amenities spreading over some 100,000 sq ft of open space. The landmark projects together with adjacent ICC Complex and West Kowloon Cultural District will form an ultimate business hub for the GBA. The group is expanding its presence in the planned Northern Metropolis with new addition. The YOHO MIX extension, comprising 107,000 sq ft of retail space next to MTR Yuen Long Station, is scheduled for opening by the first quarter of 2024. Close to MTR Tin Shui Wai Station, the mixed use project in Kwu Tung, will offer a shopping mall of close to 500,000 sq ft of GFA, and quality office space of about 360,000 sq ft to fulfill the needs of the people in the district. Complemented by a large residential project, the 132,000 sq ft retail space adjacent to the committed MTR Kwu Tung Station is expected to meet the demand from the growing population in the district. This concludes my discussion on the property business in Hong Kong. I will now discuss our property business on the mainland. As at the end of June 2022, the group had a total land bank of 70.6 million sq ft of attributable GFA on the mainland. About 53 million sq ft were properties under development, and around 17.6 million sq ft were completed properties. During the year, the group recognized HKD 2.5 billion property sales on the mainland, down 77% year-on-year, due to sales volume and handover of residential units significantly lower than that of the previous year. Hence, development profits was down 84% year-on-year to around HKD 1 billion. As at the end of June 2022, about HKD 6.1 billion contract sales were yet to be recognized. For the year, the group's contract sales were affected by general market conditions on the mainland, and amounted to RMB 3.3 billion. The table here shows the breakdown of the contribution from individual projects. Since July 1, 2022, the contract sales of about RMB 1.5 billion has achieved. The table in this slide shows the major upcoming launches on the mainland in the next ten months, including brand new phases of Oriental Bund in Foshan and Hangzhou IFC, as well as the initial launch of residential portion of Guangzhou South Station ICC. Turning to the performance of our mainland rental portfolio. During the year, the group's mainland rental portfolio generated gross rental income of around HKD 6.6 billion, up 7% year-on-year in Hong Kong dollar terms or 4% in RMB terms, accounting for 27% of the group's total gross rental income. The group's gross rental income on the mainland shows healthy growth in the first half of the financial year. But the performance in the second half was significantly impacted by the pandemic. For the retail portfolio, the gross rental income grew around 10% year-on-year to HKD 4.3 billion. The gross rental income of office portfolio increased by 3% to close to HKD 2 billion. The group's retail portfolio achieved robust rental performance in the first half of this financial year, which was negatively affected by the stringent containment measures introduced in the second half of the financial year, particularly in Shanghai. With the gradual recovery of business operations in Shanghai since early June, footfall at the group's malls have improved, while tenant sales, especially luxury items, show a rebound. Occupancy of the group's premium shopping malls in other top-tier cities such as Beijing APM, Parc Central, and IGC in Guangzhou sustains high levels despite intermittent outbreaks of the pandemic. On the office front, the occupancy of the group's Grade A offices in Shanghai remains healthy during the year. Both Shanghai IFC and Shanghai ICC continue to have strong appeal to quality tenants, thanks to their premium building quality, LEED Platinum certifications, and professional property management services. The group has proactively assisted tenants to restore their operation. Daily necessities and service support were provided to tenants who need to carry out essential business operations when strict anti-pandemic measures were in place. The group's portfolio for property investments on the mainland will further expand with the gradual completion of integrated projects under development in major cities. The remaining phase of ITC in Shanghai with 6.7 million sq ft of GFA includes two grade A office towers, a 2.5 million sq ft mega mall, and the Shanghai ITC Hotel. The construction work has already resumed. The 220-meter tall office tower was completed in July this year and has been handed over to tenant. Another grade A office tower, the 370-meter tall skyscraper, and a mega mall are expected to be completed by 2024. As part of the Nanjing IFC complex, the 1 million sq ft Nanjing IFC Mall will house top-notch international luxury brands and popular restaurants, with more, it's scheduled for opening in phases from early 2023 onwards. More than 10 million sq ft of attributable GFA are expected to be completed between FY 2023 and FY 2025, serving as a growth driver for the group's rental income. That's all for the group's mainland rental business. Now I will go through the hotel business performance. During the year, both occupancy and room rates of the group's hotel business in Hong Kong improved, following the management team's efforts to refine the business model to fulfill new demands, such as extended stay customers and quarantine requirements for inbound travelers. The Go Royal by SHKP loyalty program was launched in April this year, covering the five Royal brands hotels and their 20 restaurants to draw additional customers and encourage spending. On the mainland, the performance of East Garden Shanghai Pudong was significantly affected by the latest wave of pandemic outbreak. Due to the lingering disruption from the pandemic, the Andaz Nanjing at Nanjing IFC and Four Seasons Hotel Suzhou have been rescheduled to open in phases in 2023. Moving on to the ESG. The group's ESG strategy aim to create sustainable value to different stakeholders. During the fifth wave of pandemic outbreak, the group went all out to support the Hong Kong government to fight against it. For example, we provide a land site to the government to build community isolation facilities. In June this year, the group initiated transitional housing. United Court was officially opened, providing 1,800 units to long-awaiting applicants of public housing. SHKP has been incorporating ESG elements into our operations. The group is committed to attaining LEED Gold or Platinum ratings for all its new core commercial projects, while we are actively upgrading the existing properties to meet more stringent environmental standard. On residential fronts, we try to strike a good balance between development and environmental conservation. For example, several measures were introduced when we are developing Wetland Seasons Park and Bay to protect the environment and the neighborhood and allow residents to live in harmony with wildlife. To help combat climate change and support Hong Kong to achieve carbon neutrality by 2050, the group has been installing solar panels for solar energy generation at different types of properties managed or owned by the group in the city. The group has also tapped into the sustainable financing and signed two sustainability-linked loans during the year. That covers the group's business updates. I'll now talk about the markets and business prospects. In Hong Kong, the mass residential market is likely to be relatively active, backed by solid end-user demand, while demand for the high-end segment will be constrained by travel restrictions with the mainland. Leasing momentum of the retail market is likely to see a gradual pickup. However, worsened global economic outlook will continue to weigh on demand for office space. In Qixing on the mainland, the recently eased policy to help revive buyers' confidence and support reasonable housing demand. Government initiative to boost local spending are likely to support domestic consumption. On the other hand, demand for office space is likely to be constrained by various external headwinds. Turning to our business prospects. In the short term, we have seen signs of bottoming in Hong Kong retail market. Of course, further improvement is subject to local social distancing measures and the timing of border reopening. Recurring income of the group will be further underpinned by the new additions, including the office cum retail JV project at 98 How Ming Street in Kowloon East. The group has ample sellable resources to support the property sales with expected satisfactory margin. We'll continue to launch development process for sales once ready. On the mainland, the operating environment of the property investment business is likely to improve gradually. The group's property investment portfolio will be further strengthened with new additions such as 220-meter-tall office tower at Shanghai ITC and Nanjing IFC Mall. Given we have full confidence in the future of the country, we will continue to invest in Hong Kong and major mainland cities. Meanwhile, we will continue to adhere to strict financial discipline as always, in particular at a time of uncertain global market outlook and interest rate cycles. The group will move to a new level through the developments of new landmark integrated projects, both in Hong Kong and on the mainland, such as landmark projects atop the High Speed Rail West Kowloon Terminus and our Shanghai ITC. Finally, I would like to wrap up my presentation with a message extracted from the chairman's statement as follows. The year 2022 is not only the 25th anniversary of HKSAR's establishment, but also the 50th anniversary of the group's public listing in Hong Kong. Having the strong support of the motherland and seeing Hong Kong as its home, the group, as always, has a strong belief in building homes with heart and making contributions to the development of the city and the country through the last half- century. In the times ahead, the group, as in the past, will continue to strike ahead, rain or shine, in solidarity with various sectors of the community. The group also firmly believes that with the sustained status and advantages, Hong Kong, as a pearl of the Orient, will become a more charming international city than ever before. This concludes my presentation. Thank you. Ladies and gentlemen, welcome back for joining our Q&A session. Now, let me introduce the panel to you. From your left, Mr. Brian Sum, whom you've just met. [Mr. Hugh Silvercroft], Executive Director. Mr. Allen Fung, Executive Director. Mr. Victor Lui, Deputy Managing Director. The center is Mr. Raymond Kwok, Chairman and Managing Director. Mr. Mike Wong, Deputy Managing Director. Mr. Adam Kwok, Executive Director. Mr. Eric Tung, Executive Director, and Mr. Frederick Li, Group Chief Accountant. Before we start, I would like to invite our Chairman and Managing Director, Mr. Raymond Kwok, to share with us some key messages. Mr. Kwok, please. Good afternoon. During the year under review, the group's business in Hong Kong and on the mainland continued to be affected by a fluctuating pandemic situation. Nevertheless, we have dealt with difficulties and challenges with proactive actions and effective strategies. The operating environment for the group will still face various headwinds, such as rising interest rates, increased geopolitical risks, and cross-border travel restrictions. To tackle the challenges, we will speed up the sales of our projects to increase cash inflow. Since July 2022, we have achieved contracted sales of over HKD 12 billion. Besides, the group has sizable recurring rental income with HKD 24.8 billion recorded in the year under review. We always adhere to prudent financial management discipline with low gearing and ample liquidity. Listed in Hong Kong five decades ago, the group has gone through many ups and downs and accumulated a wealth of knowledge and experience. In the face of growing headwinds, our management team will remain humble, work harder, and stay alert to market fluctuations and changes. We are confident that we will overcome the challenges. As always, we will put up projects for sale once they are ready. Besides, a number of properties for investment purpose will be completed in the next two years, including joint venture development in How Ming Street, Kowloon East, the office towers in Shanghai IFC's remaining phase, and Nanjing IFC Mall. These projects will further strengthen the group's cash flow over time. We have commenced the superstructure work of our landmark high-speed rail West Kowloon Terminus development during the year. The project will feature a 1.5-kilometer pathway to connect old districts with the new waterfront in West Kowloon, bringing old and new communities together. This project, together with the adjacent Hong Kong ICC and the West Kowloon Cultural District, will form a major business, retail, cultural, and transport hub for the Greater Bay Area. It will also synergize with the group's other projects along the high-speed railway, including Guangzhou South Station ICC. To help build a better Hong Kong, the group strives to develop its large-scale residential projects and integrated complexes into comfortable, green, and sustainable communities for cross-generational living, work, and enjoyment. We are committed to obtaining LEED Gold or Platinum rating for core commercial projects under development and upgrading existing properties to meet more stringent environmental requirements. Recently, both Hong Kong ICC and Two IFC have attained LEED Platinum certifications. When Hong Kong was hard hit by the 5th wave of pandemic early this year, we went all out to support the Hong Kong government to fight against this pandemic. For example, we provided land for building community isolation facilities and build out 5G network coverage for many such facilities. The group initiated transitional housing project, United Court, with 1,800 units, came into operation in June this year as the largest of its kind and a showcase of transitional housing. This year marks the 25th anniversary of Hong Kong's return to the mainland and the 50th anniversary of the group's public listing in Hong Kong. The group is confident about the future of Hong Kong and the mainland. As in the past, with our strong financial position, well-trusted brand, time-tested business strategy, and seasoned management team, the group will continue to develop premium projects in Hong Kong and major mainland cities. Having the support of the mainland and seeing Hong Kong as our home, we will continue to adhere to our strong belief in building homes with heart and contribute to economic development of Hong Kong and the mainland. Thank you. Thank you, Mr. Kwok. We will now open the floor for questions. If you wish to ask a question, please press star one on your phone keypad. Our first question is from Ken Yeung with Citi. Hi, it's Ken from Citi. I have questions, mainly on the property sales. Given Victor and Raymond is here, I would like to chat with you about your latest view on Hong Kong residential outlook as we are now. You just mentioned that we have a lot of factors, negative factors like interest rate hike and borders still kept closed. How long or how deep is this correction? What kind do you expect it will be? That will be followed by my second part, which is on your sales strategy, given that NOVO LAND is very successful. The pricing strategy is very attractive. Should we be on the upcoming launches or likely to be launched more attractive pricing in order to boost sales? Lastly, can you update us your FY 23 Hong Kong and China contractor sales target respectively? Thank you. Yes, in the past two months, the gradual relaxation of the quarantine period for foreign countries is leading to a better economic prospect. We can see that new projects are well received. In last month, we have launched our local land project in Tuen Mun. Within a month, we have sold over 1,500 units, fetching a total sales of HKD 9 billion, proving that basic demand is still very strong, especially on small to medium-sized units. We are expecting that the market will continue to be quite active in the coming months and on possible border reopening with some mainland cities in next year. We are expecting the market will also activate in the high-end sector as well. The interest rate hike is within market expectation. When you are looking at the mortgage history in Hong Kong, over the years, for most of the time, home buyers are enjoying a low interest rate on their mortgage payment. Furthermore, we know that most of the banks are really keen to gain their market share in the mortgage business. On our sales strategy, we are always sticking to the prevailing market condition. We will try to strike a balance between volume and margin. For mass project like Wetland project and also local land project, we are aiming for a quicker asset turnover. As for the luxury project, we usually dispose the units at our pace. For the local land project, I think we have a correct pricing to achieve such an overwhelming sales. As you know, this is a huge project of over 4,500 units. Now we have established a solid pricing for the whole project and also the remaining 3,000 units to be launched. You know our costs here, obtain a reasonable and satisfactory profit margin for this project. For this financial year, we have a sales target of HKD 35 billion. This is quite a conservative projection as Brian have just presented. Our revenues is mainly based on our, the mass project. Actually, we are predicting the market will activate in next year. We may sell more units in the luxury project as well. Thank you. The sales target in mainland, you will realize that we've last year we've achieved close to HKD 4 billion, around RMB 33.3 billion. This year, because we have more projects to come and that you will notice a lot of those projects actually are in still good one and two-tier cities where the fundamental demand is still strong. We want to aim to get HKD 5 billion. In mainland, HKD 5 billion. In fact, if you look at from July first onwards to now, we have already achieved HKD 1.8 billion, mostly from sales in Hangzhou. On top, as we speak right now this week, we are selling Jovo Town in Chengdu, and in fact, it's already oversubscribed. The process as the city finish lockdown will be completed. We expect with the Jovo Town sales, we will achieve more than 50% already of our HKD 5 billion target. Next question comes from Mark Leung with UBS. Thank you management for taking my question. Yes. Sure. I got about a few questions. I think number one is about on the dividend policy. I think our dividend payout ratio in this fiscal year is actually up to 49.9%. It is on the upper range of our previous dividend policy guidance. I think going forward, what will be our dividend policy look like? I think that's the first question. Second question is also about Hong Kong development properties. I saw our upcoming launches. We don't put any Kai Tak project into our sales pipeline in next year. Just want to check when do you think that would be the best timing for launching the Kai Tak project, and what is the expected margin generated from this project? My last question is, if the mainland border reopen, how should we gauge the home- buying demand from the mainland Chinese? Thank you very much. Okay, answer the first question, then Victor will answer the second and the third question. On the dividend payout ratio, we have always tried to maintain the absolute dividend per share. Of course, we appreciate that there's a range of 40%-50% payout ratio, but in a way, well, ±5% is still very flexible. As long as we can maintain our strong financial position, I think, as far as we are concerned, we are very conscientious of continuing to secure good rating from S&P and Moody's. Yeah. The answer is the 40%-50%, I think, well, we can be flexible ±5%, yeah. But of course, the financial discipline is very important for us. Thank you. Victor. Yes. On the Kai Tak project, you heard about the Park Peninsula. We are just one of the nine developers among the consortium. As I know, the consortium is now trying to enhance the traffic connectivity. Our two projects in Kai Tak won't be launched until second half of next year. Our One Way project is actually situated at the best location with panoramic view over the harbor. Whereas, the other project in the Concourse project, it is directly connected to the MTR station and also the shopping malls. Also with super building heights over the 12 projects in the neighborhood. We are very confident that this project these two projects will be very appealing to local buyers and also mainlanders. For sure, we can also achieve a satisfactory profit. Actually, we are expecting that there will be possible border reopening in next year, and that will activate the high-end sector as well. I think our two projects in Kai Tak will be very appealing to the mainlanders, and for sure they can also give us a very satisfactory profit margin for our two projects in Kai Tak. Thank you. The next one is from Karl Choi with Bank of America. Hi, thanks. I have a couple of questions. I just wanna focus on Hong Kong rental a bit. First, on the retail side, can you discuss the amount of rent relief that was given in either the half- year or the full year, and the occupancy costs in the last year? Any comment on the retail sales trends recently? Moving on to office. Sounds like the outlook is a bit weak, but can you elaborate a little bit the outlook for rental reversion and also occupancy, given some of the upcoming completions in both Central and also outside Central? Thanks. Are you asking only about the retail side, right? Also on office, the outlook for Hong Kong office rental, given the fact that some big supply is coming, including in Central and also outside Central. On the retail side, I think, thanks to the latest round of consumption vouchers and the and our extensive promotional campaigns, traffic at our malls have rebounded to the pre-fifth wave level. Similarly, tenant sales have also exceeded the pre-fifth wave level. We've also achieved a good year-on-year growth. In terms of rental concessions, during the fifth wave, we offered them on a case-by-case basis, including the shops that were required to close under the Cap. 599F. Nevertheless, the amount of concessions is minimal compared to our total rental income. In line with the increase in the rebound in sales and traffic, the latest occupancy of our malls has also improved from the last financial year. Overall, I think we see signs of bottoming out in the Hong Kong retail market. Obviously further improvement will be subject to continued lessening of social distancing measures and the timing of the border opening with the mainland. We have already seen increased leasing inquiries. Some of existing tenants have requested for longer lease extensions and investments into their shops. Thanks. On the office side? Yes. For our office portfolio, we can still achieve a stable rental reversion with only a mild decline of low- single- digit. We have already renewed over 80% of leases expiring in this year, and also over 60% of those leases expiring in next year. It is true that the increasing supply in decentralized locations is creating some challenges, especially for areas in Kowloon East. As we know, most of the tenants are trade-related sectors and their business is a bit affected by the macroeconomic uncertainties. We have seen some of the new buildings. The landlords of the new buildings are offering more flexible terms on rental negotiation and renewals. Our buildings in our Millennium City portfolio is not affected, as most of our tenants are belonging to reliable and sizable tenants. They have a high demand on building quality and also on single ownership. Most of the buildings in Kowloon East are enjoying a high occupancy. The same as our building in V Point in Causeway Bay, they are also enjoying a high occupancy as well. Thank you. Thank you. Our next question is coming from Cusson Leung with JP Morgan. Hi, management. Couple of questions. One, I think, is more on the Hong Kong land banking side. We have seen like, in the presentation and announcement, you have concluded two lease modifications. Just wonder, given the government focus on the farmland source as a future, have you actually noticed the speed up of the whole farmland conversion process? That's number one. For second, in terms of China land banking, given the reduced competition in the land market, are there any chance the company further step up the exposure in China commercial property land bank? The third one is regarding the global rising inflationary trend, have you start to feel that through into your construction cost? Thank you. On the Hong Kong land bank, you have rightly pointed out that we have two cases of modification. Those three relatively small religious sites are in one small, relatively small plot next to Fairview Park in the NT. We actually have a few cases coming up in the next couple of months, say six- nine months, where we hope to conclude. We have four cases having more than 2 million sq ft GFA close to completion or close to the final stage of negotiation. That means we are in the active process of negotiating the land premium with the government. As you rightly point out, government is very anxious to increase the housing supply. Probably you would look at. We're all looking forward to hearing CE's address in October, and we hope the pace of increasing land and housing will be executed pretty well. We hope in the next financial year, we will be able to conclude a few cases, as I mentioned earlier on. On the other hand, we are, as you see from the public arena, we have been pressing for all the other plan applications, mostly in the NT, for plan application and then convert our other plots of land into buildable housing sites. On the third one, the inflation in Hong Kong, how does it affect the construction cost? I think it's not just the inflation. I think there are a couple of issues which will affect the construction cost. Namely, the recent logistic disruption is very much affecting the supply chain, and we will induce construction cost increase. Apart from that is the relatively insufficient supply of labor and skilled management staff, professional staff, will also increase the overall construction cost. All in all, I can see this trend will go on, and there's no sign of going back. How to quantify it depends on the trade. Mostly, the rates of inflation or the construction cost increase will be more heavily affected by the civil engineering work more than the building works. Long as the logistic disruption is, I mean, better off because of the border restriction is, I mean, loosened off, the trade like the finishing trade will be less affected. Overall, there will be at least high- single-digit figure in construction cost inflation in the coming year, I guess. Okay. Regarding mainland, we always get asked this question, and every time is always the same answer, is that we'll remain very selective with opportunities. These opportunities have to fit into our overall strategy of being part of the strategic integrated projects at very prime locations. The opportunities could come from distressed developers, they could come from government sales, they could come from good government negotiation, but we will remain very selective. The reason we say that is because you have to look at our pipeline, and we are very much in execution mode now, executing the large land bank we've acquired through the past few years. You know, in the next three fiscal years, we will have. We'll go from 60 million sq ft of investment property to 26 million sq ft. We'll have an increase of HKD 10 million, mostly from Chengdu, Nanjing IFC, and parts of Shanghai IFC. To be able to execute it well, build it on time, on costs, deliver, and lease it up is gonna be a lot of our main focus. After the next three fiscal years, we have Hangzhou and Guangzhou South Station as well. While we remain selective, we'll never say no. We'll focus more on execution. Due to the time constraint, we will invite two final questions. Next question is from Wei Mun Liu with HSBC. Hi, Manson. Thank you for taking my questions. I got two questions. The first one is about the land sharing pilot scheme, and the second is about the capital management action, like buyback campaigns. On the first one, there are growing land applications in the land sharing pilot schemes, right? The government seems to be very supportive and try to increase the housing and land supply here. Will farmland or brownfield sites become the mainstream of a land bank with partnership for the major companies like us in the coming years? This is the first question. The second question is, like if you look at the entire sectors or even across the world, so many companies now announce a share buyback campaign, given the attractive valuation of the companies. So will we or the family trust consider to do something similar? Thank you. Okay. On the question on land sharing scheme. Right. In fact, there were actually five applications received or submitted to government, and we have one among the five. We understand that government has set up a special team to push ahead these five schemes altogether. On our part, in our case, we have been very actively discussing and negotiating with the team from the government side. We hear some positive news that they are also very eager to push ahead of these schemes to come to fruition. But whether or not, because frankly, I don't know the other four, but our case is well-received, I can describe. The situation is the proposal has been modified according to the various government departments, and I was told they will be likely the case they will submit to government. They have a special task force and then to the ExCo for approval and then for the final stage of come to execution of these cases. I believe it will be happened in the next couple of months. Whether or not this sort of land sharing scheme will be a main theme for public housing, public or private housing source of supply, I think we wait and see. Because as you said as we said earlier on, this new the CEO will announce his 100 days report. One of those major issues is to increase land for housing and supply. That I think we're looking forward to hearing the CEO's report in only about a few weeks' time. On the share buyback side, I think, at the moment now, I think, we care a lot about our financial credit rating, and also, there are plenty of opportunities ahead for us to make acquisitions. The company would not consider buying back shares in the foreseeable future. At the same time though, I think the family, the Kwok family, will continue to buy shares at the right price because we see the dividend yield is very good. Yeah. The family trust side would continue to acquire more shares in the market. Thank you. We will have the last questions from Jeffrey Mak with Morgan Stanley. Thank you. I have a couple of questions. The first question is on Hong Kong retail. Just wondering, will you change your upcoming leasing strategies, given the borders are gradually opening up? Also, can you comment also on the retail reversion outlook for FY 2023? My second question is on Hong Kong residential. There's been some talks about policy loosening. Just wondering if management is expecting any kind of loosening in measures, given that the home price may remain under pressure in the near term. Thank you. For the retail leasing market, in terms of reversion, as I said, we had a tough fifth wave, but I think we've bottomed out. The market has bottomed out. While we continue to have short-term lease extensions with certain tenants, we are seeing that reversions have improved, particularly in the past three months. In terms of changing our leasing strategy, I think, for the border opening, right, we'll plan to focus more on tourist-oriented trade mixes, for example, jewelry and watches, if the border reopens. The short-term focus for now will still be on the local market, where we'll take advantage of the government consumption vouchers, and also our own leasing promotions, both online and offline, to drive sales and drive repeat traffic to our shopping malls. Yes. Earlier this year, the relaxation of loan-to-value ratio of HKD 10 million-HKD 12 million is activating the mass and also the upgraders market, and helping a lot of young people and also upgrading families to become home buyers and also to improve their living environment. I think this is good for the stability of our society. We all know that the new administration is also working hard to increase the housing supply. For further relaxation, I think they will impose appropriate measure at the correct timing. Thank you. On the retail side, I think we are optimistic because I think we feel that the worst of the COVID pandemic would be quite near the end now. Also, I think for our malls, we benefit from our very successful loyalty point programme. Also, we are doing a lot of renovation of our malls, especially in the outdoor area of our malls. We are confident that when the market recovers, our market share, our total market share of the market, will improve. Yeah. Thank you. Thank you, Mr. Kwok. As this is the final question, the briefing is coming to a close. Ladies and gentlemen, thank you very much for joining us today. We appreciate your time and look forward to speaking to you soon. Thank you.