Good evening, ladies and gentlemen. Welcome to Shui On Land's 25th Annual Results Analyst Briefing. Thank you for joining us online this evening. We are pleased to have five members of the senior management team with us today. Mr. Vincent LO, Chairman, Ms. Stephanie LO, Vice Chairman of Shui On Land, Mr. Douglas SUNG, Chief Financial Officer and Chief Investment Officer of Shui On Land, Ms. Jessica WANG, Chief Executive Officer of Shui On Land, and Mr. Allan ZHANG, Chief Executive Officer of Shui On Xintiandi. We will start with a presentation by the management, followed by a Q&A session. During the course of the webcast, you may submit your questions via the webcast portal, and they will be conveyed to our management during the Q&A session. Without further ado, may I invite Mr. LO to start with some opening remarks. Mr. LO, please.
Good evening, and thank you for attending our briefing. Last year hasn't been easy for any developers on the mainland due to the persistent geopolitical uncertainties, regional wars and trade tensions, and then the muted consumer confidence because of the uncertainty around. The funding market was very difficult, liquidity concerns and constraints of the developers, and then the prolonged adjustment and correction of the property sector. But for the high quality assets, there's still resilient demand, and the national focus on urban regeneration actually is providing good opportunities for the appropriate developers. I'll just stop there and let my colleagues give you all the details.
Thank you, Chairman. Good evening, everyone. Thanks for joining our analyst briefing. Let me start by giving some highlights of our 2025 results. As you all know, the operating environment for China's property sector remains or remained extremely challenging last year. Despite the market volatility though, our group recorded core earnings of RMB 397 million for the year, demonstrating resilience in our operations. However, primarily due to non-cash fair value adjustments on our investment properties and inventory impairment, we reported a loss attributable to shareholders of RMB 1.78 billion. We continue with our prudent capital management. This remains our top priority.
As at the end of 2025, our net gearing ratios stood at 52%, supported by cash and bank deposits of RMB 6.5 billion. During the year, we've fulfilled all of our financial obligations on time, including the repayment of the $ 490 million senior note due in March 2025. Since 2021, we have repaid a total of RMB 48.6 billion offshore debts, significantly reducing the portion of foreign currency funding from 77% to 19% and lowering our overall cost of debt. Earlier this year, we actually raised a $300 million bond and re-tendered for the senior note that's due in June.
I think that basically took care of almost all of our U.S. dollar offerings offshore. On a more positive note, we have seen sustained rental growth for the third consecutive year. Total rental and related income grew 2% to RMB 3.6 billion. Our retail portfolio in particular showed strong growth with retail sales and shopper traffic growing at 15% and 12% respectively. We also expanded our number of asset light projects. Yongxin Li, which is a high-end residential project within Shanghai Greater Xintiandi community. This is essentially Lakeville VII. We acquired the site together with a local government partner as well as other financial investors, pushing our asset light model forward on a new track.
Secondly, we also acquired another urban village renewal project called Sanlin in the Pudong new district in Shanghai. This further strengthens our future Shanghai land bank. A quick few words on our sustainability. Despite the very challenging operating environment, we continue to maintain our commitment in sustainability, whether it's in decarbonization, increasing our climate resilience across our portfolio, as well as increasing our tenant engagement along the sustainability journey. Just a quick few words on our sustainability. We've reduced our Scope 1 and 2 emissions by 57% against the 2019 base year. We've also reduced our Scope 3 tenant emissions by 32%. We got a GRESB 5-Star and HKQAA ESG AA Rating. Panlong Xintiandi in Shanghai won the ULI Asia Pacific Awards for Excellence.
We're very pleased to share some of these important milestones and hope that this continues to prove our commitment within this sector and further embed sustainability within our operations. In terms of our Xintiandi brand, last year we made a very important milestone announcement. We unveiled a new Xintiandi community brand in September of 2025. The purpose of this actually is to elevate Xintiandi from a retail brand to a community brand. The future urban cities in China we believe needs different urban solutions. Something that is more mixed use, that is live, work, play, learn, that integrates retail, residential, office, culture, as well as green space to create inclusive and sustainable urban solutions for cities of the future.
The future Xintiandi brand has four different community models under it. We have the Greater Xintiandi neighborhood, as well as urban retreat, as well as knowledge communities. These four different community models, we feel give us a lot of room for growth in different Chinese cities in the future. This also leverages our strength in heritage preservation, as well as integrated development and long-term operations across our platforms. Just a few words on the China property market. It obviously remains a very challenging operating environment. It's a very prolonged adjustment and correction. Last year, nationwide sales volume and value has further declined by 8.7% and 12.6% year-on-year, respectively.
The consumer sentiment remains quite subdued, with very, you know, subdued market activity. However, on a relative basis, the high-end segment, in particular in Shanghai and other first-tier cities, demonstrated more resilience. This is supported by demand for high quality products and services and long-term value retention of these assets. I think from a retail point of view, while the occupancy was improving in Shanghai, we did see Shanghai's prime and decentralized rents decline by 4.3% and 6.4%, respectively last year. As a result of this increased competition, because of, you know, increasing supply as well, landlords are starting to prioritize footfall and tenant quality in this very competitive environment.
What we have been seeing is that experiential offerings and cultural-driven spending have really emerged as driver of retail demand. This is a new consumption pattern, I think, that will be here to stay. Another bright spot that we can share is that in Shanghai last year, international inbound tourism grew by about 40%. This 40% surge in international travelers actually brought new consumption to a market where consumption has been very challenged. What a lot of these new travelers are looking for are these integrated, more social and/or cultural-led destinations. Actually, our properties like Xintiandi, as Panlong Xintiandi, have been able to benefit from that, and Allan can share more later.
From an office segment, this continues to be the perfect storm, with an increase in supply and a dampening of demand. With the macro environment being as it is, there is a dampened business sentiment, and so a lot of corporate occupiers remain very, very cost-conscious. You know, Shanghai citywide rents were down by about 11% year-on-year. This supply overhang, I think, will not be resolved in the short term, but what we're doing to adjust is that we want to make sure that our occupancy stays at a very high level, that we can ride through the volatility of this storm. Few words about strategy going forward. Liquidity management and financial safety obviously remain as our very top priority.
We are going to leverage on our new community brand, or the upgraded Xintiandi brand, as well as our luxury residential living brand, Lakeville, continue to use these brands to expand our land bank through an asset-light strategy. In the longer term, we do believe that this will lead to a better balance in profit between property development, asset management, as well as fee income. With that, I'll hand over to Douglas.
Thank you, Stephanie. Good afternoon, everyone. Let me give a quick summary of our 2025 annual results. On this page, you can see the high level summary. We record a revenue of just about RMB 4.1 billion. Gross profit is RMB 2.1 billion. Core earnings was approximately RMB 400 million. Property sales revenue of approximately RMB 500 million, and total rental income of RMB 3.6 billion. Just a couple of points to note. We saw a relatively large decline in revenue in 2025. That's mainly because of residential sales. We basically don't have new completion or handover in 2025. All the sales are from inventory, so that was the main reason behind the drop in revenue.
Total rental income of RMB 3.6 billion represents a 2% increase in overall rental income. We thought that was actually a pretty remarkable performance under a very difficult commercial market in 2025. In terms of the income statement on the next page, just a few highlights. We talked about revenue of RMB 4.1 billion, property sales. You can see that rental income recorded a 21% year-on-year decline. This is primarily due to the restructuring of KIC, which we completed at the end of 2024 and beginning of 2025. The KIC project is no longer consolidated, and it is now a JV and associate project. That's affected the top line. Gross profit was RMB 2.1 billion, as mentioned earlier.
Other income is primarily coming from interest income. The expenses item are pretty regular, but you can see that we did manage to have cost savings in 2025 compared to 2024. I'll talk a little bit more about the IP valuation. The RMB 643 million decline in fair value is on the consolidated basis. Other gains and losses of RMB 924 million losses, this is mainly coming from impairment loss on some of our inventory and unsold stock. You can see also finance costs of just over RMB 1.5 billion, representing a 23% decline from a year ago.
This is a result of one we have basically repaid most of our offshore more expensive offshore debts and b benefiting from a decline in interest rate in PRC onshore PRC. Overall, we have a loss before tax of just over RMB 2 billion. On the next page, attributable to shareholders for the year is a loss of RMB 1.78 billion. On the next page, you can see the calculation on core earnings. Here is the breakdown on the share of decline in fair value of IP between consolidated basis net of tax net of non-controlling interest, so RMB 562 million. The impairment loss of unsold inventory, as I mentioned earlier, just over RMB 900 million.
Our share of the impairment loss and also decline in fair value in IP on a joint venture and associate basis. All together, the net effect of this is about RMB 2.1 billion. If we put this back into our last year's operating performance, the core earnings would have been just under RMB 400 million, about 12% decline from a year ago. This 12% decline is really mainly coming from slowdown in residential sales and bookings in 2025 because we don't have any major new completion last year. Next page is the, on the balance sheet, the key metrics. We can see total assets is just over RMB 82 billion, total debt just over RMB 26 billion. Shareholders' equity per share is RMB 4.54 .
We had cash balance of just over RMB 6.4 billion and net debt of RMB 19.8 billion. Gearing ratio was stable at 52% compared to 2024. You can see that total debt and net debt continue to be reduced by 12% and 11% respectively from a year ago. Next page. The movement in asset and debt. You can see net asset at the end of last year was just over RMB 38 billion. The decline from 2024 was mainly because of the reduction in fair values and impairment provisions. Net debt, you can see that just under RMB 20 billion was actually one of the lowest level in the last four years.
We continue to work to maintain a very stable and acceptable gearing ratio and debt-leverage ratio in the last few years. Next page. Here is the breakdown on IP portfolio. I won't go through it building by building. Overall, our carrying value of the total portfolio was RMB 97.7 billion at the end of 2025. We took about RMB 2 billion provision, a decrease in fair value. That represents about 2% of the overall value, overall carrying value. The decline is primarily coming from the office assets. If you look through the different assets, you will see that those properties with higher office exposure would have seen a much larger fair value decline compared to the other assets. Overall, it's a 2% markdown.
Some of the assets, you can see that is, we have seen a fair value decline of up to 5%. Next page. On gearing and net debt movement over the past 10 years or so, this is just for your reference. Overall, you can see that we have worked very hard in the past eight to 10 years to keep our gearing ratio at about 50% level. That will continue to be one of our priority going forward to maintain a healthy balance sheet. Next page. Here, on the maturity profile, you can see that since 2023, we have worked our way down to a much lower maturity amount coming going forward.
From about RMB 14 billion down to this year, we have just under RMB 7 billion of debt maturity. In the coming two years, actually, that ratio, that amount will be dropped significantly further. It's fair, I think, to say that the biggest pressure on our refinancing and our debt maturity have passed, and hopefully, we can continue to remain a pretty decent maturity profile going forward. For this year, in the first half on the right-hand side chart, you can see that we have about RMB 5 billion of maturity, including RMB 2.8 billion of our $400 million bond maturing in June. As you know, we have already refinanced RMB 300 million out of the RMB 400 million.
We have about RMB 2.5 billion or so of maturity left for first half of this year. A majority of that is onshore relating to our projects. Next page. On the capital management, a couple of things to note. One is our debt profile. We have basically completed pivoting our financing from offshore to onshore, so you can see that now we have less than 20% offshore exposure. As a result, our average cost of debt has come down substantially as well to approximately 4.2% at the end of last year, excluding fees and one-off charges. The other thing to note is our overall rental income has continued to increase last few years, and our total interest costs have come down.
As a result, you can see that on the first chart, the rental income and interest cost ratio has continued to improve. This give us a much better credit profile, and hopefully can help us withstand the current pressure in the capital market much better. Next page. Near-term priority, and I'll close here. Providing sufficient and maintaining sufficient liquidity will continue to be our top priority. This hasn't changed. We will continue to strive to keep our debt low and continue to keep our balance sheet healthy. In terms of our income and our cash flow, Jessica and Alan will talk a lot more about the businesses, but we still have a sizable residential inventory for sale in Shanghai and Wuhan coming up in the next couple of years.
We expect our rental income will continue to grow, and also we are growing our fee income as well. Hopefully this give us stable income in the next couple of years and continue to work towards a healthy financial condition. On that, I'll pass over to Jessica.
Yeah. Thank you, Douglas. Let me take you through our property sales in 2025. For the full year, our contract sales is RMB 7.9 billion. This includes residential sales of RMB 7.2 billion and commercial property sales of RMB 670 million. In addition, we recorded CNY 639 million in subscribed sales, which will convert to contract sales in the coming months. I'd like to highlight two projects in particular. The first one is the heritage-inspired villas and townhouses at Lakeville VI. Following the record-breaking sales of the super high-rise units, the villas and the townhouses are also generated a strong interest from high net worth buyers. All units with pre-sale permits have been sold at an average pricing of RMB 311,000 per sq m.
The remaining units will proceed to contract signing once pre-sale permits are obtained. The second one is La Ville, the final residential phase of Wuhan Xintiandi. After two decades of development, Wuhan Xintiandi has become a true landmark in the city, and its residential projects have always been well-received by those high net worth customers in Wuhan. Since its launch in November 2025, sales momentum has been strong. By end of 2025, 72% of total units were sold and subscribed, significantly outperforming other high-end residential projects in the Erqi Riverfront area. The project is now approaching sell-out. As of end of 2025, our lock-in sales stood at RMB 17.2 billion, which will be delivered to customers and recognized in our financial results in 2026 and beyond. Next. Now, let's look at what we have lined up for 2026.
We have approximately 133,000 sq m of residential GFA available for sale and pre-sale in 2026 across six projects in Shanghai and Wuhan. This includes the remaining heritage-inspired villas and townhouses at Lakeville VI, pending pre-sale permits at approximately 4,100 sq m with structural completion target for Q2 2027 and a handover in Q4 2027. It also includes the remaining units at La Ville, the final residential phase of Wuhan Xintiandi at approximately 14,300 sq m, which structural completion target for Q3 2027 and a handover in Q4 2027. Next. Now, I'd like to share some of our observations on the market and the industry.
First, on the policy front, the 2026 Two Sessions set a new tone for the property market, shifting from last year's stabilizing decline to focusing on stability. This signals that the most difficult phase might be behind us, and the policy is shifting from arresting decline to achieving more sustained market stabilization. At the same time, the government continue to push urban regeneration and the quality homes initiative with coordinated physical, tax, and financial measures, providing meaningful support for a gradual market recovery and towards a new model of real estate development. On the market side, 2025 saw a clear K-shaped divergence. High-tier cities and the luxury segment held up relatively well, underpinned by strong demand for quality living. The broader market remained under pressure.
Sales and prices in primary housing market continued to adjust, though the rate of decline narrowed versus that of 2024, with early signs of stabilization emerging. The secondary market was largely driven by price-for-volume dynamic. Now, let me further share some observations on Shanghai. Last year, Shanghai also continued to show this K-shaped pattern. In the primary housing market, sales volume dipped slightly, but average selling price actually rose, driven by high quality projects. In the secondary housing market, transactions were mainly driven by those units with lower total price. One notable development is the recent Seven Policies in Shanghai. These measures target three key areas, easing purchase restrictions, raising provident fund loan limits, and the property tax relief.
The market response has been positive, with buyers' confidence picking up, especially for those first home buyers and upgrade demands. We'll be watching transaction data closely over the coming months to see whether this can be sustained, a more steady recovery. Against this backdrop, here are our three core business strategies. Firstly, we will continue to focus on top-tier cities with priority in Shanghai. In the current market environment, we will remain disciplined and only consider new investment opportunities on the basis of maintaining financial prudence. Secondly, we will continue to advance our best-in-class product strategy echoed by the Lakeville brand. By leveraging the Xintiandi community brand and our differentiated competitive advantages, we will seize opportunities in the middle to high-end market segment, driven by the quality homes initiative, and continuously strengthen our brand influence in core markets.
Thirdly, until the market correction runs its course, we will continue to develop with the SLI model and further expand our strategic partnerships and collaborations with investors to grow our business and drive the company's steady and sustainable development. Now, let me walk you through our SLI strategy in more details. In simple terms, our SLI strategy has three key components. Firstly, we progressively introduce financial investors to participate in our mature commercial assets, recycling capital strategically. Secondly, we would further broaden our capital source by expanding and diversifying our partnerships. We aim to cultivate a broad base of external capital sources and a robust investment ecosystem to support the next phase growth of the business.
Thirdly, by leveraging Shui On's brand strengths and core competencies, we will partner with strategically aligned investors and bring complementary strengths to pursue new development opportunities through minority stakes. This approach will enable healthy business expansion with a lighter capital footprint. This strategy delivers three key benefits. Firstly, unlocking value. It could unlock a hidden value of existing asset base and better capitalize on Shui On's brand strengths and core competence going forward. Secondly, managing risk. In a highly volatile market, we could expand prudently while keeping capital outlay to a minimum in the short run. SLI strategy is the best way to balance growth with risk. Thirdly, expanding a recurrent income source. We are actively developing new recurring fee-based income streams to support the company's long-term growth with stable cash flow. But SLI is a means, not an end.
Our goal is sustainable growth. Our market position, we aim to lead in selective markets with Shanghai as our home base and a further expansion into the Greater Bay Area. Our business model, we are finding the right balance between property development and asset management. On group strategic positioning in the changing market, we are evolving from a commercial-focused developer into a developer, investor, and asset management. Moving to our four SLI projects currently in progress. Together, they represent approximately 1.22 million sq m of residential GFA and 291,000 sq m of commercial GFA. Starting from Yongxin Li, we provide a management service to Yongye Group in this project while without any equity stake. The project comprises approximate 105,000 sq m of residential, 50,000 sq m of commercial and office space.
Construction will commence in the second half of this year, with completion target for 2032. Nanqiao Xintiandi is a village renewal project in Fengxian District. In partnership with the district government, we hold a 5% stake and provide a full management services across development, sales, marketing, asset management, and operations. The project comprises approximately 326,000 sq m of residential, 95,000 sq m of commercial space and other facilities. The project development was commenced in 2025, with completion target for 2031. Yongxin Li is a three-way partnership between Shui On, Yongye, and the Tian An Group, where we will hold an equity stake of 15%. The project comprises approximately 156,000 sq m of residential, 55,000 sq m of commercial space. Both Yongxin Li and Yongnian Li will be developed under the Lakeville brand.
Relocation is completed, with construction starting in the first half of this year and a completion target for 2031. Finally, Shanghai Sanlin is a large-scale urban village renewal project in Pudong, where we hold 13.26% interest. It's centered on the renewal of Sanlin Old Town, preserving the historical character of the ancient town while creating a larger scale mixed-use community that integrates tradition and modern commerce, quality living, and a strong ecological environment. This project comprises approximately 633,000 sq m of residential, 91,000 sq m of commercial space. It will be a new landmark for Pudong New Area. Completion is targeted for 2035. Now, I'd like to highlight another project we are actively advancing, Zhaojialou Xintiandi.
We hold a 60% stake in this one, which is higher than the SLI projects I just walked you through. Zhaojialou Xintiandi is our second urban retreat project following the success of Panlong Xintiandi. Building on the model, it draws on the nearly 1,000-year history of Zhaojialou ancient town and the distinctive Jiangnan water town heritage to create a Xintiandi community that brings together history, natural, and modern living. The project includes approximate 150,000 sq m of residential and approximate 73,000 sq m of commercial and cultural facilities. It covers three key zones. A leisure and a nature retreat centered on an ecological park and the Xiaoyan Lake. A Xintiandi cultural and a commercial district showcasing the area's historical character and a high-quality international residential area.
We believe it will be another landmark community for Shanghai. Development is progressing steadily. Public facilities and supporting infrastructure works commenced in July 2025, and we successfully acquired the first residential plot in January 2026. The overall project is targeting an opening as early as 2032. Turning to our residential development land bank and the sellable resources. As of end of 2025, our total sellable resources stand at RMB 36.2 billion with an attributable value of RMB 17.3 billion. By city, RMB 9.3 billion of these are in Shanghai, with the remaining RMB 26.9 billion primarily in Wuhan. Next. Beyond the residential, we also have a sizable commercial development pipeline that will drive further growth in rental and recurring income.
The total GFA across this portfolio stands at 1.638 million sq m, with 57% in office and 43% in retail. That's all from me, and I will now hand over to Allan. Thank you.
Thank you, Jessica. Good evening, everyone. In this section, I would like to give an overview of our commercial assets management. Let's start with our rental performances, which has delivered sustained growth for the third consecutive year. As you can see from this chart, our total rental and the related income has demonstrated a very strong growth trajectory because of the quality of our assets and also the proactive assets management approach. Between 2022 and 2025, the compounded growth rate reached 9%, growing from RMB 2.8 billion- RMB 3.6 billion. On the retail side, our average occupancy rate remained stable at 94%. More importantly, we observed a very robust operational momentum. Retail sales grew by 15% year-on-year, while shopper traffic increased by 12% year-on-year.
These figures basically reflect the strong appeal of our lifestyle destinations. Additionally, our new opened projects, Xintiandi Dongtai Li in Shanghai and also the KIC PARK in Wuhan, have already started to contribute into our rental income. On the office side, our mature Shanghai office portfolio continued to improve the performance, achieving a very high average occupancy rate of 93% despite a subdued office market environment. Our office resilience has been firmly supported by a refined leasing strategy, strong talent relationships, and our differentiated community services. In the past years, we successfully attracted leading global talents to our portfolio. For example, we have seen encouraging leasing progress at the CPIC Xintiandi Commercial Center, welcoming international renowned brands such as Publicis Groupe, Victoria's Secret, HSBC, and Frasers Property. Let's turn to our commercial portfolio, which is firmly anchored by the prime assets in Shanghai.
As of end of 2025, our completed commercial assets in the city totaled an impressive RMB 79 billion. These prime Shanghai assets includes our flagship developments such as the Xintiandi, Panlong Xintiandi, Hongshoufang, et cetera, as well as our newly opened the CPIC Xintiandi. There is another noteworthy figure here. In 2025, the total rental and the related income from our Shanghai portfolio already reached RMB 2.8 billion, accounting for 78% of our total rental and the related income. This portfolio in Shanghai also represent a 3% year-on-year increase in terms of the rental. Later on, let's introduce a little bit about our two newly opened project. The first one, it's the Xintiandi Dongtai Li, which is opened in December 2025.
As part of the CPIC Xintiandi commercial center, Dongtai Li basically spans around 84,000 sq m of retail GFA. It is designed as an open street style or weather protected destination for shopping, leisure, entertainment, and culture. It aims to become a vibrant new hub that enrich the Xintiandi ecosystem and reinforce our position as a leader in creating destination people want to go. Dongtai Li is organized around 3 core experience pillars. The first one is the wellness fulfillment, featuring sports brands, gym, spa, and wellness offerings. The second is the city pulse component, which brings together al fresco dining, nightlife entertainment, alongside international and trendy fashion and lifestyle concepts. The last one is culture immersion, including theater, galleries, culture spaces, and other heritage elements. The tenant mix reflects our commitment to creating a distinctive experience.
We are proud to see that we have already attracted a number of renowned international and local brands to this project. Next, it's a little bit introduction about the Wuhan KIC Park. This is also a very exciting new opening last year and in September last year. With a retail GFA of 48,000 sq m, KIC PARK is positioned as Wuhan's first-ever park integrated commercial destination, and also the Optics Valley area's first pet-friendly spaces. The project is designed as a social and entertainment destination that offers a lifestyle and nature experience, bringing retail, dining, and leisure into a green and open environment. Overall, we have 40% of our tenants are first entry into Wuhan, either in Wuhan or Optics Valley areas. This speaks directly to KIC PARK' s appeal as a destination for flagship and concept stores.
The market response has been overwhelmingly positive. In the first week of opening, we welcomed over 985,000 visitors. This is a remarkable beginning that demonstrate the strong consumer demand for this kind of retail experience. As of end of last year, the project has already achieved a 90% occupancy rate, reflecting strong leasing momentum and tenant confidence. Well, my last slide is about our key strategic initiative and the near-term focus. Our overarching goal remains very clear and straightforward: to strengthen our three growth engines in order to achieve sustainable and profitable growth. These three engines are, first, driving steady organic growth in our AUMs. Second, ensuring successful opening in every new project we undertake. And third, executing a refined asset-light strategy to optimize our capital deployment and the partnership model.
Turning to the operational focus for 2026, we have clear priorities across our two core segments. On the retail side, our focus is sustaining momentum in both the shopper traffic and our tenant sales. To achieve this, we are taking a multi-pronged approach. First, we are capitalizing on the emerging customer segment, particularly the inbound tourism. At the same time, we are rolling out innovative marketing events and community contents, including our renowned brand IPs like Heritage Now together to keep our space vibrant and drive repeated visits. We're also doubling down on what makes us very unique, strengthening the customer's perception of Xintiandi style services and experiences.
Finally, we continuously upgrade our tenant mix to make sure that we stay relevant and compelling by bringing in fresh brand and also the concept that resonate with today's customer. On the office side, it is very clear that we will maintain high occupancy rate as our top priority, especially in such a challenging market. It's very important to maintain the top priority as the occupancy rate. To get there, we are focused on a few key areas, including the strengthening of our tenant, you know, retention by offering a very flexible leasing strategies, and also innovate our offerings, including high quality spaces plus add value services. Finally, we're enhancing our tenant engagement platform through differentiating differentiated community services.
We hopefully, with all these measures, we can maintain our both the retail and office at a very healthy operation level. That concludes my part. Thank you.