Friends from the investment sector, good afternoon. Welcome to New World Development Company Limited's FY 2023 annual results presentation analyst briefing. I am the Head of Investor Relations, Patrick Chong. I'm the emcee for this session. First of all, let me introduce the management in attendance. They are New World Development's Executive Vice Chairman and CEO, Dr. Adrian Cheng. New World Development's CFO, Mr. Fu Keung, Edward Lau. If you have any questions, please type your questions in the chat box of the webcast. We will pick your questions to answer later on. Now, let's invite Adrian to start. Ladies and gentlemen, first of all, I would like to clarify that right now, the market is in a very sensitive condition, and there are many untrue rumors outside, bringing about a lot of shocks. Some time ago, regarding the financial position of New World, there are many untrue remarks being spread in the market, and I suspect that there are people who took the opportunity to manipulate in the market. Because we have a three-month blackout period, during which we cannot take any corresponding actions in the market. So that's why these people made untrue remarks against us, but we immediately made clarification. We have also reported to the police, so that now the case is being handled by law enforcement agency. I'd like to take this opportunity to give explanation at one go. Besides, I would like to tell you that in the future, we are going to take some strategies. My first point is, New World's financial position is very sound. Our cash reserve is strong. We have cash on hand, together with available capital resources amounting to HKD 94 billion. In the first half, our group had already obtained HKD 30 billion low-interest bank loans. Interest rate is high, about +1.1%. Our overall interest rate, loan interest rate is 4%. So you can see that our financing capability is very strong. There are many rumors outside saying that the banks have cut our credit line and so on. I can tell you that all along, we are doing business with 60 banks in the long run for almost 50 years already. Our relationship with those 60 banks is very good. At this moment, and also in the coming 50 years, there is not one bank telling us that they will cut our credit line, so I really don't understand how this rumor came out. In the future, there won't be this possibility. In the future, we will make very strong commitment to deleverage. First, we will expedite our deleveraging pace. We are prepared to buy back bonds, including perpetuals. Now, given this high interest environment, we can buy at a discount. This can enhance our profitability, lower our gearing, and give support to the secondary market. Besides, in relation to CapEx and OpEx optimization, we have been doing a good job to reduce cost. 3, for FY 2023, it is a difficult year. Interest rate is high. There are many external challenges. Our gearing is relatively high. However, the good news is, for our group, large-scale investment projects have entered the final stage. For example, 11skies, Shenzhen K11. So in FY 2024, our CapEx will decrease significantly. Our goal is that... Well, because in the past few years we invested in a lot of recurring income, so now we are at the end of tunnel. We are gradually entering the harvesting phase to harvest on recurring income. Our goal is by 2026, our group's recurring income will account for 50% of the total. In the future, our company will continue to take different corporate actions to release our value and enhance shareholders' return. Let me remind you, this year, when we announced interim results at the end of February, I said that there would be a series of corporate actions to unlock our shareholders' value. The sale of NWS shares is the first term of such corporate actions. Okay, my fifth point is, let me repeat, our company has no need for fundraising, and there won't be rights issue, there won't be equity issuance. Number six, we will continue to sell our non-core assets in an appropriate way and to improve our financial management, interest rate hedging, RMB loan increase and so on, we will continue to do a good job with treasury management, non-core disposal, so this will be done in an adequate and appropriate way. Thank you, Adrian. Now, let me talk about our company's FY 2023 financial performance. As we all know, the global economy still faces a lot of challenge. For example, interest hike, RMB depreciation. So as a result, some of our businesses' performance was affected. For financial performance, our revenue and core profit were up 40% and 21% year-on-year. This is mainly because for Pavilia Farm One and Two, there is HKD 15 billion being booked, and K11 performed very strongly. However, because of interest hike and RMB depreciation this year, profits came down 5% year-on-year. And our mainland business has a large scale, so we were affected by the accounting FX translation impact. As a result, Net Gearing Ratio went up and profits decreased. And then, for our financial position, as Adrian said just now, we are very sound. As of this FY, capital resources available amounted to HKD 94 billion, and HKD 55 billion was cash. And our final dividend is HKD 0.30 per share. Interim dividend was HKD 0.46 per share, together with NWS special dividend of HKD 1.59 per share. For the whole year, dividend will amount to HKD 2.35 per share. In FY 2023, despite all the challenges in the overall environment, we have some businesses which achieved good growth. First, property development. In Hong Kong, this year, Pavilia Farm One and Two, there is HKD 15.6 billion being recognized as a result. For Hong Kong property development revenue, it was up around 2 times. For Mainland China in recent years, we focused on Tier One core cities. That's our strategy. And together with our brand effect, contracted sales reached 15 billion RMB yearly target. For property investment, K11 performed very strongly, and this is the result of our unique business model of a cultural business circle. For CapEx, all along, we have been strictly controlling CapEx. Every time, it is below our budgeted level. In FY 2023, CapEx was less than budgeted amounts by HKD 12 billion. We only spent HKD 24 billion. At the beginning of the year, the budget, the estimate was HKD 36 billion. In other words, there is a one-third reduction. In FY 2024, we'll continue to greatly reduce our CapEx to below HKD 15 billion. When large-scale investment projects are in the final construction stage in the future, we will greatly reduce construction expenses. Now let me talk about property investment. Overall income was up 4%. For Hong Kong, property investment revenue, it's up 10% year-on-year. This is mainly because the overall border reopening and relaxation of all anti-pandemic measures, the retail environment and office rental markets have improved. In Mainland China, in the first half of the year, there was a lockdown because of COVID-19, and RMB depreciated. As a result, our group's revenue decreased. For K11, it performed strongly. Revenue and segment income or segment results were up 12% and 16% respectively. In mainland K11, well, we benefited from the overall resumption and recovery. And so Shanghai K11, in the second half of FY 2023, for revenue and footfall, they increased more than 100% year-on-year. In FY 2023, Shanghai K11 shopping mall and office occupancy were maintained at 90% and above. Our financial position was sound. Our financing capability is very strong. With 60 banks, we have built long-term working relationship. All of them supported us, so we have adequate liquidity, and we can enjoy very low financing cost. Let me give an example. In Hong Kong financing, in March to June 2023, we obtained HKD 30 billion low interest loan. Within this HKD 30 billion, HKD 22 billion was refinancing. More than HKD 8 billion was newly approved loan. Interest rate is HIBOR plus around 1.1%, same as before. For onshore financing, in the past, we said we would increase onshore financing. Why? Because borrowing in RMB is lower in cost than offshore, so we have successfully made use of the low interest environment to lower our financing cost, and we have reduced our risk exposure in RMB to guard against risk from depreciation of RMB. Recently, we have obtained a number of low interest onshore loan. Interest rate is as low as 2.8%-3.2%.... And we have issued onshore RMB bonds, including CMBS and Panda Bond. The issuance cost was only 3%-odd, and we have successfully lowered our overall financing cost for the group. As of the end of June, as such as now, available capital resources amounted to HKD 94 billion, of which HKD 55 billion was cash, and then there is undrawn bank facility of HKD 39 billion. So given the above factors, even if HIBOR went up significantly during the period, our average financing cost in FY 2023 decreased from the originally estimated 4.9% to the actual level of 4%. Basically, more or less the same as the average financing cost in first half 2023. Comparing with recurring income of our peers, well, they mainly account for 70%-80% in their cases. And in the past, we focused more on property development. So five years ago, our recurring income only accounted for 20% of total. That means we would be affected by the cyclical movement of the property market easily. In the past 5 years, we actively transformed ourselves to increase our recurring income. We ramped up our investment property portfolio. In the past few years, we successfully increased our recurring income. However, in the process, we encountered many unforeseeable challenges. For example, in the past few years, there was the impact from COVID-19, continuous interest hike, significant RMB depreciation, and geopolitics, so our plan has been slowed down. But don't worry, when our large-scale investment projects enter the final stage gradually, including 11skies, Shenzhen K11 ECOAST. In the future, CapEx will significantly come down, and for these large-scale investment properties, they will be completed in phases next year, so they will generate large and sustainable rental income for the group. We have confidence that in 2026, the share of recurring income will be about 50% of the total. And then in the results announcement, we made three undertakings to investors. First, to speed up deleveraging to increase investors' confidence. Deleveraging has been our main work focus. In the past one year, according to the plan, we are doing that orderly. So in the coming slides, we will give more details. In the future, we will continue to execute deleveraging plan. Besides, in the past few years, our rental property investment, recurring income's share will continue to rise, so we have confidence that we can accelerate deleveraging. Number two, we said already that the management will not do rights issue or any equity issuance to raise funds. As Adrian said, for 2023, we have already fulfilled our promise. In the future, we'll continue to work on this point. Number three, we said already that we will take corporate actions to release different businesses' value in order to enhance shareholders' return, and we can also take the opportunity to deleverage. As Adrian said, for the subsidiaries, for NWS, we have already received a voluntary general offer. If it is successful, then we can focus on our strategic focus and release value, and our cash liquidity can also improve. At different times, we will continue to take corporate actions in phases to further enhance shareholders' return. For acceleration of deleveraging, there are three main measures. First, we will optimize our CapEx and OpEx. In terms of CapEx, in 2023, I said already that our CapEx is reduced by HKD 12 billion. We only spent HKD 24 billion. Comparing with the guidance given at the beginning of the year at HKD 36 billion, we are lower by one-third. When our large-scale investment properties are moving into the final construction stage, for example, 11skies, every year, there is HKD 5 billion CapEx, and K11 ECOAST is almost completed, so construction expenses can be greatly reduced. Besides, for replenishment of land bank, we have adequate land bank, especially agricultural land, so we can benefit from standard premium, low standard premium mechanism. We don't need to buy land from the market at high price. This can help us reduce CapEx significantly. As you can see in the slide, in the past three fiscal years, the final CapEx is always less than expected at the beginning. For FY 2024, CapEx estimates, comparing with FY 2023, is significantly down to below HKD 15 billion. So, back to OpEx. Now for CapEx, in FY 2023, CapEx was HKD 24 billion being spent. As of now, large-scale infrastructural projects are almost done. We are at the end of the tunnel. We are moving into harvesting phase in the coming 1-2 years, so this will increase recurring income. And if we look at OpEx reduction, if you refer to the right-hand side chart, you can see that our milestone since 2019 till now, OpEx reduction is a savings of HKD 3.5 billion. This is OpEx. So recurring expenditure. Now, if we refer to G&A as a percentage of revenue, in 2022, we are at 10.1% G&A expense over revenue. In FY 2023, that is this fiscal year, we're at 7.2%. What does that mean? That means that from strong, or heavy CapEx point of view to OpEx reduction, we are doing a very good job. And if you look at the past years, every year, our G&A expenses came down by 4%-5% every year. For OpEx, G&A, as a percentage of revenue this year, 7.2%, it is lower than our peers. Most of our peers are at above 10%. We are the only one at below 8%. Then for non-core asset sale, well, this is another important tool for deleveraging. At the same time, we can also enhance our organizational structure to improve our operating efficiency. As said just now, we have received from Chow Tai Fook, the, general voluntary offer of NWS. If it is successful, then we'll have more financial flexibility. We can focus our capital in our main property business, and by selling non-core assets, we'll have bigger flexibility to choose better timing for sale, including the potential sale of NWS for FY 2023. Asset sales will amount to HKD 27.7 billion. In the future, we'll continue to sell non-core assets at appropriate times in order to recover our capital. The third major measure of deleveraging is to reset our dividend and buy back our bonds to achieve better capital allocation. We believe that prudent capital management can help us better face up to a high interest environment. The saved capital can offer better financial flexibility. For interim dividend, we have distributed 46 Hong Kong cents per share, and the full year dividend, 30 cents per share. For NWS, with successful approval, then there'll be special dividend of HKD 1.59 per share. For the whole year, dividend will reach HKD 2.3 per share, including the special dividend for FY 2023, growth exceeded 14% in dividend, more than the distributed 2.06 HKD per share for FY 2022. The saved capital will be used to repay existing bank loans to buy back bonds, including perpetuals, because such buyback can help our cash flow and profitability. There will be many benefits of doing these. What are the benefits? Right now, the market environment is not good. Our bond price is lower than face value, so as a result, we can have the opportunity to buy back bond and perpetuals at lower price to improve leveraging and profitability. After buying back the bonds, lower gearing can help us save interest expenses so that we can have more cash, and we can lower further Net Gearing. For the saved interest expenses, this can enhance our profit and further increase our equity. As you may remember, last year in December, we took the opportunity of price discounts in the bond market at that time, and we bought back bonds and perpetuals for HKD 480 million. This buyback has generated a gain of HKD 280 million. Because of the three major measures just explained, our Net Gearing Ratio will be at a stable level. In December 2022, Net Gearing was 46.9%. This year, in June, at the end of June, Net Gearing Ratio was 48.7%. Assuming we complete the NWS project and pay out the special dividend, after that, our gearing ratio will come down to around 47%, more or less the same as last year. In the past six years, increase in net gearing ratio is because of the following reasons. One, RMB depreciation, so our equity, accounting, non-cash value came down. Now, if RMB exchange rate stays at the same level as December 2022, Net Gearing Ratio will be around 47%, more or less the same as that in December 2022. The management will continue to make use of the three measures mentioned just now to accelerate deleveraging. Large-scale projects, for example, 11skies and K11 MUSEA, construction will be completed, so our recurring income will increase. The management has confidence that in FY 2026-2027, Net Gearing Ratio can come down to around 30-odd%. Last time, during interim results announcement, we promised that we won't consider rights issue or equity issuance. We'll continue to keep this promise. Please pay attention to the following. Even though there is no offer from Chow Tai Fook, the management in the future will not and does not need to consider rights issue or equity issuance... We'll continue to take corporate actions to release the value of different business lines, to further enhance shareholder return, and to take the opportunity to deleverage. As Adrian said just now, in February, we already said that this year there will be a series of corporate actions, and in June, we announced the first deal. Our group will continue to conduct strategic review of various business lines to see how to optimize the strategic focus of each company within the group and to release value. And in phases, at different times, we will take corporate actions to further improve shareholder return. So there will be more and more corporate actions coming out. The NWS project can bring about $21.8 billion cash, and after deducting $4 billion of special dividend, net cash inflow will reach $17.8 billion. So this can improve our financial position so that we can enjoy higher financial flexibility. The strategy focus of New World Group can be strengthened, and by means of cash dividend, we can release shareholder value for our shareholders. That will be immediate benefit for shareholders. Now, this page is about K11 Hong Kong. Let me comment on K11. After border reopening, in FY 2023, second half, K11 MUSEA occupancy reached 98%, Art Mall, 99%. So in the industry, we're the highest. In the second half of the fiscal year 2023, you can see footfall increased 67%. For art mall, 56%. Mall sales for MUSEA in the second half of FY 2023 increased 84%, Art Mall, 82%. So we can see a few things. First, Tsim Sha Tsui is really busy in terms of footfall. Many tourists, especially those from the Mainland, will go to Tsim Sha Tsui and to take selfies at K11 MUSEA. So the whole Tsim Sha Tsui will see a big market consolidation. Secondly, for our VIP sales in K11 MUSEA, it accounted for more than 70 odd% of total sales. What does this mean? Our K Dollar, our CRM system, controls 70 odd% of our sales already. For our Black Card, it accounts for 30 odd%, and for Black Card, the spending is more than HKD 1 million a year. So you can see here that the stickiness is very strong. Apart from increase in footfall, stickiness is very good. Secondly, for our operating margin, right now, it has reached a level that is on par with our peers. We have already been opened for almost four years. Most big shopping malls and offices needed 17 years, 18 years, or 20 years. For our operating margin, we're already higher than theirs. So we are number 2, really, in terms of comparables. And then for our rental, comparing with some malls that have been open for 17, 18 years, our rental is more or less the same as theirs. So we have only been open for three to four years, but then we are faster than our competitors to increase our gross profit margin, and our profits also increased fast. So many people are of the view that K11 MUSEA is doing a very good job. It, it is so magnificent. Can we achieve a payback? In fact, we are faster than others. They took 17, 18 years. We only took three to four years to reach their level after 17, 18 years. Recently, we also responded to the appeal of Night Vibes. We organized night market by the sea, waterfront market, and so on. These are cultural events that are better than our expectation. Footfall increased 30% comparing with the previous weekend, and 15,000 people went to the night market. So there are many patrons to the night market, and today, I think there would be the need for crowd control. Many people asked what is happening on the Mainland. Now, please do not read news outside, and please don't think that New World is the same as other Chinese property developers. Well, those companies defaulted, that is not related to us, because our financial position is sound, and we have brand, and thirdly, we sell premium products. Number four, we work on Tier One and Tier One point five cities, especially Tier One. 90-odd% of our contracted sales come from Yangtze River Delta, Shanghai, Hangzhou, Guangzhou, Shenzhen, and Greater Bay Area. So we target at first-tier locations, and our products are for upgraders and those who are wealthy, those with good financial strength. So in the pyramid, we cater for the tip of the pyramid. We cater for those customers. You often talk about the mainland property developers, and those are in the center and the bottom of the pyramid, so they are not our competitors. We should not be compared with them. We are not in the same league, so I must clarify this point. Because of this, well, we are less sensitive to all these happenings. We have brand, we have quality, we are selling high quality, premium products, and also a bit more expensive, high ASP products. There is nobody else in this segment, so in July, August, and September, we sold RMB 5 billion of products. So for example, Guangzhou Park Paradise, we work together with China Merchants, and we have projects in Shanghai. We already sold RMB 5.3 billion, and the ASP exceeded 100,000 RMB in Shanghai. This happened within this fiscal year. So I hope you understand that we focus on Tier One cities. And we have very strong brand effect as a result. This is really a very unique way out for us. There is no competitor at the tip of this pyramid. Second point, recently, in July to September, apart from our brand, our mainland residential sales increased despite the negative market trend. Now, in mainland cities, what they did not say for a large scale, but then in GBA, in Shenyang, in Shanghai, many policies about only assessing the property, not the loan history, was put in place. Purchase restriction was abolished and, the, down payment requirement, was also reduced. These are relaxations. If you ask about the mainland property market, actually, they have different policies for different cities. So I think, there are precise policies for, specific cities, and as actually, the, magnitude is big in GBA and Yangtze River Delta Tier One cities. They offer many very favorable policies. For example, in Guangzhou, Guangzhou, introduced policies with, big force. Last week, once the, purchase restriction was abolished, there is, an increase by 241% in, home buyer visits number. Many people, bought properties. Well, we have already sold, like, RMB 3-4 billion already this month. That is in Guangzhou, Hangzhou. For Shenyang, once the purchase restriction was lifted, we sold RMB 1 billion already, and more than 100 units were completed in settlement. So, in the past few three months, we already sold that much. Now, our FY 2023, we sold contracted sales of RMB 5 billion. We sold RMB 5 billion in July-September already. So for the whole year, RMB 15 billion contracted sales for mainland China is definitely achievable. We may even be able to achieve more, and collected cash will be even more. Besides, in the future, on the mainland, there will be gradual relaxation month after month in all cities. In Guangzhou, Shenzhen, Panyu, Shanghai, there will be gradual relaxation and more and more relaxation. So after relaxation in Shenyang and Panyu, let's take a look. At the tip of the pyramid, well, these customers, many of them are upgraders. Why? They may have sold their company, they have a lot of bank deposits. There are huge amount of bank deposits now, so they like to take the opportunity to buy a property for themselves... so they can live happily. A lot of the funds are on the mainland, and they just place the money in deposits. After relaxation, they don't know whether there will be further relaxation in the future, so they'd rather take the opportunity to buy now. So there are many upgraders, many, first-time buyers. So in the tip of the pyramid and also the middle level, there would be big demand, very big demand, especially in Tier One, Tier One point five cities. In Hong Kong, our property development performed well. Segment results was up 42% year-on-year, mainly because of revenue recognition of Pavilia Farm one and two. So for border reopening, for NCB Innovation Centre, contracted sales reached HKD 6.5 billion. Since the launch of the project, already more than 80% of the GFA, and in September last year, we sold 51% share of Cheung Sha Wan commercial building at HKD 3.1 billion. We sold it to SSG Capital of Singapore. Now, this project was rated by Euromoney as best workspace developer. Now, there are more people buying office buildings, especially at 8888 Cheung Sha Wan Road. Many Chinese companies would like to buy three to six stories as their head office. And also they'd like to be able to name the properties in their company name. Now, next year, we plan to... Or actually after March next year, in Wong Chuk Hang, State Theatre and so on, there would be many big projects to be launched. So for contracted sales after March next year, there'll be a lot of contracted sales coming back. Next year, after March and April, we will launch around 3,000 units, so there is still time now. We still have half a year to monitor the market and determine our strategies. For the medium to long term, in terms of replenishing land bank, as you know, we have 15 million sq ft of agricultural land, mainly in Yuen Long and Fanling North. We believe that the Northern Metropolis will be the future engine of Hong Kong, and most of our land, most of our 15 million sq ft is in Northern Metropolis. Now, we have seven plots in the process of land exchange. Our goal is, within three to four years, we can successfully exchange the land and include it into our land bank. Altogether, we can develop GFA of up to 3 million sq ft. Now, we said successful exchange in three to four years. Well, we are not only including the area into the land bank in the fourth year. Actually, for these seven plots, 3 million sq ft of GFA will be gradually included in our land bank. This is for the short term. For medium to long- term, we have around 10 million sq ft of GFA, which we will do land exchange. This is for the medium to long- term, after three to four years, around 10 million sq ft of GFA. So in total, for short, medium, long- term together, we have 13 million sq ft of GFA to be included in our land bank. Recently, in Fanling North, we have a plot with GFA 1 million sq ft, and we took the lead to accept the standard premium mechanism. Firstly, the price is reasonable. If you compare announcement exchange price in the periphery, we are the lowest in price. And number two, plot ratio, comparing with the beginning, rose 18 times. Number three, all the infrastructural facilities and supporting facilities are such that we can start development very soon. Okay, we'll continue land exchange. At present, we hope to do exchange of agricultural land over a large scale to release more value. Let me give some examples. Now, we are working on Wing Ning Tsuen, Tong Yan San Tsuen, and also Lung Tin Tsuen Phase Five. You can see the plot ratio is quite good. The plot ratio will increase from 3.6x to 6x, so 4 million sq ft of GFA can be released, providing more than 7,000 units. So recently, the plot ratio increased significantly. So from 0-6—from zero to 3.6 and from 0-6 in these three cases, so plot ratio is getting more and more generous. As such, as now, in these few years, we invested a lot in larger scale rental properties, so these are recurring income for us, so we are gradually moving into harvesting phase. For 11skies, it is huge, so it will be opened in phases. GFA is 3.8 million sq ft, and in the coming one to two years, it will be gradually opened in phases. Number two, Kai Tak.... There is a 700,000 sq ft infrastructural project. It will become a shopping landmark, which overseas visitors must come. 700,000 sq ft will become a high-tech sportainment retail complex. So next year, it will be opened in the second half of next year. In the second half of the next calendar year, 700,000 sq ft, and then there's also K11 in Shenzhen next year. At the end of 2024, it will be opened in phases. GFA is around 230,000 square meters. It will be like Victoria Dockside. It is in Shenzhen. With all these opened, our recurring income in the coming 1-2 years will increase a lot. Thank you, Adrian. Now it's time for Q&A. So through the webcast live streaming platform, please input your questions in writing. I will relay your questions to the management to answer. First question, about recent rumors. In the market, there are many rumors about New World's financial position. They're worried that we will encounter problems. What is your response? As Adrian said just now, the market is very weak now, so the market is very sensitive. Any rumor can lead to big shocks. We state again that concerning the untrue remarks in the market, they are actually rumors in the market. So there are people who may take the opportunity to manipulate the market. They are taking advantage of our three-month blackout period. At the end of June, there was the NWS project. During the three-month blackout period, we cannot take any actions in the market, we cannot contact investors to talk, and we cannot buy back stocks or bonds. So today, we'd like to take this opportunity to explain things clearly. First of all, New World's financial position is very sound. Our financing capability is also strong. Secondly, we will accelerate deleveraging. We will be prepared to buy back bonds, perpetuals, because now it is a high interest environment. This is the best time for buyback for the sake of our profitability, and there is also positive help to the lowering of gearing. The third point is, there is no doubt that this year is difficult, interest rate is high, there are many external challenges, but the worst time was over. We're at the end of the tunnel, so things will only improve. Next year, we will enter the harvesting phase. Our goal is, by 2026, our recurring income and property development income will be 50/50 in ratio. An investor asked for recurring income: does that include NWS? Now, we assume that the NWS project will be completed, so that means NWS's recurring income will not be included. As Adrian said, in the past five years, we invested a lot in investment properties, so now we are in harvesting phase. Our recurring income can increase. So that's why, by 2026, we are confident that without counting NWS's recurring income, we will still exceed 50%. Let me explain again. As I said at the beginning, do it. If you look at our CapEx, we don't need so much CapEx already. This year, CapEx was one point... was HKD 15 billion. In FY 2023, HKD 24 billion, so it is a big reduction already. So for OpEx, we are the lowest in the industry. If we divide that with our total revenue, every year, we are reducing it by 4-5%. Deleveraging is our commitment. Number two, our net gearing is high, but that doesn't mean that we have funding problem. Many people use that point to attack us and to spread untrue rumors. There are even unexplainable terms in the market. We don't know what those are. We have not seen them, and we have not agreed to them. We have not asked people to do it. So that's why we reported to the police, and we asked law enforcement agencies to follow up, because we suspect that it is a move of manipulating the market. 3, well, there is a blackout period for 3 months for us, while there has not been such long blackout period for the others, so that is the best timing for them to do all these. So we need to give complete clarification today. We are strong financially. We have very good strength. Besides, we will accelerate deleveraging. We are getting ready to buy back our bonds, including perpetuals. As you can see, on the mainland, cash flow is much faster than expected. For built properties at K11, revenue is increasing fast. Next year, in Hong Kong, I said March, well, there will be a lot of contracted sales coming back. Even if you discount it, the cash flow won't be small. Right, next question is about NWS, sale of NWS. Some time ago, the group announced to sell NWS shares. What is the progress so far? Without this cash cow, are you worried that your future results will be affected, and how can you offset that or compensate for that? As said just now, when we announced interim results, we would take a series of corporate actions to release value. So sale of NWS is the first step of our planned corporate action. There'll be a lot of merits to our group. At attractive premium, we will be selling NWS shares, which have been at a discount for a long time, and then we can get back a lot of cash. People asked, "Without this cash cow, what are we going to do in the future?" Now, we receive dividend of HKD 1.4 billion every year from NWS. If the deal is approved by independent shareholders, then at one go, we can get back HKD 21 billion from the sale of NWS. That means we are receiving 16 years of dividend at one go. Now, we are in a high interest environment. We can make use of HKD 17.8 billion of cash to buy back bonds and to lower financial expenses, and it can also support our properties and related business long-term development. Of course, we have to create value for shareholders. If shareholders approve this deal, then HKD 4 billion will be used to distribute a special dividend to pay back to shareholders. They can get HKD 1.59 per share. Because of regulatory rules, at this point in time, we cannot disclose more. Please pay attention to future announcements. During COVID-19, the company has not reduced interest, but now the economy is recovering, and you are reducing interest at a faster pace than other developers. Concerning future prospect, is it true that you do not have much confidence in future prospect and future economy? So this question is about the reduction in dividend. Okay. Well, for dividend level, it reflects the overall economic situation and the company's profitability. When the market is challenged, just now, I said that interest rate now is high, we have to reserve our cash and capability. Investor asked: Are you going to reduce dividend further, and will you change your dividend policy? Well, this year's dividend decision is one-off. This time, we reduce dividend. It is a one-off exercise. With this reduction, we can use the money to buy back bonds. At the same time, we can buy back bonds and PERPS, and this can be done fast. This is our commitment to the whole world, that apart from buyback, we have commitment to deleverage, and this dividend reduction is only one-off. When our profitability goes up, we will resume our dividend level, so please don't worry. My third point is, now we need to reset because the world has changed, the cycle has changed. We must reset and then transform. Our commitment to reset and transform and move on is very important. So please don't worry, this is just a one-off, dividend move. Next question, about our gearing. For future net gearing ratio, does the group have any guidance, as such as now? This year, we control CapEx stringently, and gearing ratio is maintained at a stable level. Investors would ask for our guidance for FY 2024, 2025, 2026. As such, now, given the high interest environment, we will continue to control cost and CapEx, so we have confidence to keep it at 40% or even lower. In FY 2026, when our recurring income continues to increase, then, it may fall to below 40% at 30-odd%. Right. In 2024, 2025, we will be at around 40-odd%, and we will come down gradually, but it will still be at around 40-odd%. It will not fall sharply. But when recurring income increases, we'll continue to reduce CapEx. We don't need so much money. Then by FY 2026... Can you show the slide about dividend? Dividend, this one. The previous slide on dividend, not this one. The one showing up to 2026 gearing. You can see that gearing will fall, and then in fiscal 2026 and fiscal 2027, it will be at mid- to high 38%. We have commitment to deleverage and to reset, and our commitment to transform will be implemented in these coming years, but it doesn't mean that we won't be profitable. Right, next question. About paying land premiums. Some time ago, it is said that in Fanling, you accepted the standard agricultural land premium. So are you going to take the opportunity of low price to expedite exchange of agricultural land? Are you going to bid for more land and also resume old properties to increase your land bank? We will definitely go for capital preservation. We think that the standard premium is the lowest, so we did it. Actually, there is time limit for premium payment. We cannot delay too long, so that's why we accepted the standard premium. In the future, do we need to deploy the money? Well, we mainly focus on capital preservation, but right now, we have a lot of inventory in Hong Kong on, and the Mainland. We have many products to sell, so in 2024, 2025, there will be profit to be booked. And in FY 2023, if you look at our core profit, if we exclude some legacy projects, core profit should have risen 30%. What does that mean? If we disregard the interest hike, and if we exclude fair value, loss and gain, all the financial entries, for alpha of our operation, our operating capability is rising. Core profit rose 30-odd%. So I hope that you will pay attention to that point. Our operating team is strong, but there are some accounting treatments and also macro uncontrollable factors so that our profit decreased 5%. Next question, contracted sales. Just now, Adrian said that in Mainland China, you will do sales of around RMB 15 billion. For FY 2024, Hong Kong's contracted sales target, what is it? How much is it? For Hong Kong, targeted contracted sales, HKD 15 billion. For Hong Kong and China contracted sales, it doesn't include corporate actions. Next question is about our shopping malls business. Border reopening does not generate expected effect, and recently, Hong Kong people like to shop overseas. So does that cause any impact to your K11 business? In July to September, K11 MUSEA and K11 ATELIER mall sales, comparing with last year, was still up 50%-60%. In the first half to June, 84%. In July to September, we're up 50%-60% and above. As I said just now, many Hong Kong people like to go to the Mainland, but at the same time, there are many Mainland wealthy people coming to Hong Kong. When they come to Hong Kong, they all go to Tsim Sha Tsui, so we are consolidating the market. I cannot say that the other districts are not good, but based on data I have, Tsim Sha Tsui did the best. You can ask various international brands, K11 MUSEA ground floor. For the international brands, their productivity is number one, number two in Hong Kong, but we are only open for three odd years. For FY 2024, we believe that sales will be very strong, and for rental escalation, it will be faster than I expect. Why? There are things that I can't share now, I can only tell you later, but it will be faster than my expected rental escalation. Next question is about our buyback ideas or plans. So how much are we going to buy and when? So more details, please. Just now, we said that our cash and capital is very adequate, HKD 94 billion, so we have enough bullets to do buyback after the result announcement. So we won't disclose the time, timing and size now, but then based on market situation and our business development, we will do buyback. Last year, you can see that our tender at the beginning was $820 million. We received, $480 million of face value. So if we do buyback, we are confident that it will be welcomed by the market. There is investors' question asking whether we will buy seniors or perps, because perps may affect equity treatment. So in fact, we are open to all opportunities. Next question is about Mainland properties. Mainland property companies, recently, many of them have defaulted, and New World on the Mainland has a lot of inventory and products. The Mainland property market is weak, so will that affect your group's sale of properties on the Mainland and your overall revenue? Just now, we spent 20 minutes to talk about this. In fact, I've answered this question already. If you have watched the video just now, in July to September, we sold HKD 5 billion. We have explained the reason already. We cannot be compared to Mainland property companies. Please do not compare my company with some other Mainland developers and Mainland stocks. First, we have brand. Number 2, for mainlanders, we are regarded as foreign company. Number 3, we have been rooted in the mainland for 40 years already. Number 4, we work on tier one cities in the mainland, Shanghai, Hangzhou, GBA, and we have some products in Shenyang. And then fifth, our ASP is at the tip of the pyramid, so our customers are different. For the other mainland property companies, those problematic ones, they are working at the bottom of the pyramid, or they are in sinking cities, tier two, tier three sinking cities. So in terms of products, company background, history, capital, we are all very different. So even though they have defaulted, that is not... That has nothing to do with us. We did a good job in July to September sales, and if policies are further relaxed in Shenzhen, Guangzhou, then we will grab huge market share at the tip of the pyramid, because within that tip of the pyramid, we have no competitor, so we are working on upper, high, and high end. You can do a search. No other mainland property companies are doing the same thing with my background, with my product quality, and also in those cities that we're in. Let me give an example. In Hangzhou, within one week, last year, within one week, we sold $1 billion, RMB 7 billion, in other words, and in these few months, we sold RMB 11 billion of Hangzhou New World residential units in Wangjiang New City. When did we sell it? It is during the pandemic on the mainland. Who bought it? All wealthy second generation. Many of them are members of the wealthy second generation in Hangzhou. They are very young. Why? Because they want to buy K11 brand. They want to buy, Rosewood's brand. In Hangzhou, we have K11, Rosewood, Artus, New World residential. They want these brands. So what does this mean? You have heard so much news, but please read very carefully, and please look very carefully the products we are selling. We are in a different blue ocean. For the other so-called mainland stocks, they are inside a red ocean. Please differentiate more clearly, and please do not pull New World into those default cases of mainland property companies. They have nothing to do with us, okay? Because of time, we will now take the last question. This question is about Hong Kong property market. Large banks in Hong Kong are increasing mortgage interest rates, and there are property developers lowering price to achieve fast sales. What do you think of the future property market prospect? What is your plan about property sales, and do you expect relaxation of stringent measures in the Policy Adress, in the coming Policy Address? Well, let me talk about relaxation of stringent measures. Well, I said to the media just now that there are many voices hoping the government to relax those measures. Actually, the government should relax those stringent measures based on market circumstances. There are many ways to do it. The government can relax those stringent measures in phases, gradually, so this can reduce financial burden for members of the public. There are some first-time buyers. There may be also small families who are upgraders. And then the third type of people are those from the Admission of Talent Scheme. They have to achieve the seven-year residence rule in order to get refunds of the Special Stamp duty paid. So can the government enhance these policies to attract more people, talents to Hong Kong? This is beneficial to Hong Kong in the long run. So these are my views about relaxation of stringent measures. Now, among these crowds or these groups, if the government can consider market changes and relax those stringent measures in phases, then I think a lot of public purchasing power can be released. Just now, you also asked about our property sales. Now, for our contracted sales and presale, well, it will only happen in March and April next year. There is still six months' time to go. Secondly, for our property projects, we have State Theatre and also Wong Chuk Hang. They are of high quality. They are on top of MTR station. They have different unique characteristics. They are well-differentiated products. Why am I saying so? If I tell you I am selling mass products now, then I may have to reduce price. But when you are selling unique products, exceptional products, with shopping mall on top of MTR station, or there are some unique characteristics, well, we have some very, special, unique units. Now, for those wealthier customers, they are less sensitive to, price in the property market because they want to collect or buy some very special, unique units. So you may have heard that all of a sudden, some units are bought, some land is bought at a very high price of a few billion HKD, because some people are transacting some expensive and, exceptional products. So we are also selling this category. So we are not quite worried about 6 months later. Number 3, we have strong confidence in the government. They will, change policies according to the market. Okay, finally, once again, thank you very much for coming to New World Development's FY 2023 annual results presentation and session. If you have questions, please contact the Investor Relations Department of New World. I wish you happy Mid-Autumn Festival. Goodbye.