Earnings Call: H1 2016

Aug 22, 2016

Yeah? Go ahead. Thank you Good morning. Good morning. Ananist. Afternoon investors and also these listening into the conference room, welcome you all to the 2016 interim results investor presentation. Today, we have our Chairman and CEO, Mr. Hojianming. CEO, Mr. Xiaochiam, chief engineering officer, Mr. Dualiam, and CFO, Mr. Yeeveryong, First of all, we remind Mr. How to report on the interim results of China Overseas Land And Investment Ltd. Good afternoon, everyone. Those who are present in the conference and those who are listening into the online result announcement. I am very happy to have this chance to communicate with you today after the 1st 6 months of our results. And today. There are five parts of my presentation. It can be said that, you know, what we call in Chinese is the 5 year plan. There's also coincides with the 1st phase of the 13th 5 year plan in China. For our group, whilst expanding, we have been able to maintain a very healthy financial and it is for over a decade and the first time we have realized the net cash we have also communicated with the market about we will have further updates with the investors. So five parts of my presentation today. First, on the interim results. 2nd, on the business review, I would like to briefly talk to you about the acquisition of property portfolio from Citi. For the market outlook, and finally, guidance and outlook of the company. So first of all, on the interim results. We've only just issued this around lunchtime and perhaps some of you had a chance to look at it already or maybe not. So just a brief, in production. For the 1st 6 months, we had very good opportunities in the real estate, sector, but the competition is getting more fierce. For the group, we actively promoted our business. We have realized revenue of 7 8.15000000000 Hong Kong dollars, an increase of 20.5percentnetprofit19.67000000000 an increase of 20.6 percent and we believe our net profit is still at the leading position among our peers. The board recommended, payout, dividend payout of $0.35 and a mega increase of 70 5% compared to last year same period. In the future, we will continue to increase the payout ratio. In the fashion. And in this chart, you can see the ROE of the group is still 20%. We have maintained for the past 5 years, the very high level of quality in the fluctuation of the market. You know, we have been able to maintain our ability to create 0.9797. It is the first time I've seen for the past decade that we have realized net cash position and to maintain a very flexible, finance of the company. By endofJune, we have cash on hand, RMB 91% and foreign currency 9% if you add the unused credit from the bank wait, that is 9,800,000,000. The total financial resources available is 127 point 8,000,000,000 Hong Kong dollars. If you look at it from the loans, we have a corporate bond 66,200,000,000 bank loans 43,200,000,000 Hong Kong dollars weighted average borrowing cost 4%. The long term debt, is 87.6 percent and the debt structure as well as, that repayment is very healthy. In the past year, we have used different strategies and to fully utilize our double platform and multi currency finance methods. And we believe that after acquiring the portfolio from Citi, the foreign loan, percentage will continue to go down and we will maintain, loans denominated in Hong Kong dollars and US dollars for lower than 50%. In this chart, I believe everyone is very concerned about and I will briefly talk to you through this chart. Actually, those two charts, it reflects the important financial indicators, you can see in terms of cost control, profit growth, and Shareholder value creation, we have always been at the leading position of our peers. And in early in 2015, the gross margin decreased slightly, in the annual report, annual announcement results that was also mentioned, and we still try our best to pursue the goal of margin at gross margin at 30%. To be frank, since this is the goal, you can see that the 6 months gross margin is at 28.2 percent, Actually, a few areas I'd like to elaborate. 1st, everyone is very concerned about our business, the fundamentals of our business in mainland China, real estate sector. It hasn't changed. And I for confident that we'll be able to maintain 30% gross margin. Factors contributing to this, and I will talk to you about that later. In our annual sales, we already have 73, uh,000,000,000 presale that has not been included yet. And the unit sale price has already reached RMB 21,000 per square meters. And this amount will also be booked into our books. And this is one of the main reasons that I'm confident that our business in mainland China will continue to maintain at a high level. And of course, these figures that you're today. I believe you all are experts due to certain effects from different regions that has caused the gross margin to slow down in the 1st 6 months of this year. In this chart, you can see this is our financial structure. Our group will continue to be prudent whilst growing our sale, improving profit, and financial gearing, we will strike a between these three factors. And I believe this is also the expectation from the market. And currently, you know, with the healthy financial structure as well as the liquidity, I believe this has laid a solid foundation for the further expansion of the business of the group. And second, I'd like to talk to you through the business review. 1st 6 months of 2016, Contracted sales realized JPY 95,300,000,000, an increase of 11.5%. Responding GFA sold 6,000,000 square meters by end of June, we still have 50, 5.2000000000 subscribe property sales, which will be turned into contracted sales later. During this period, excluding the JV projects, we have realized cash collection of $72,000,000,000, we have which is a record high for the past few years and maintaining a very high cash collection rate On this chart, these are some projects that have been completed in the first half of twenty sixteen. We have 48 projects completed, and total GFA is around 7.13000000 Square Meters. I'm not going to read out all the projects, but you can see, you know, the cities, they are spread out evenly in different parts of China. By endofJune, according to available for sale, 27.5%. And, we have achieved, good results in inventory reduction. So on this chart, again, these are some introduction our own projects as well as JV projects. The revenue is, 84,500,000,000, and by endofJune, including JV products, we still have 30 3.55000000 Square Meters presale and here, the unit has already exceeded 21,000 per square meters. For 2016 in terms of land bank, this chart, we took into consideration of 2 factors. Just now, we had a media briefing conference and journalists ask, you know, every time you always go to the auctions, but it's rare to see you guys actually go for a bit. And why is that? And of course, you know, my own to them and to you guys is different. You know, I told them, you know, we're being prudent. But here, I can tell you there are 2 factors. The first is that 1, we do think that the land market is too expensive. 2nd, considering the delivery of the group believes that this acquisition will bring of resources available pieces of land, one including in Hong Kong, you know, this one in Taipo, our typo project is 18,000,000 when we required, and now it's already 50,000,000. And of course, you know, the housing price and the land price is not closely connected, but at least, you know, we get on our shareholders. And in domestic China, we have Jinan. We obtained this piece of land in of this year. In the next two piece of land, one is in Nanchang And we have already done the, planting of trees of this district and we are to, start construction. By endofJune. The land bank in China, in total is 36.45000000 Square Meters. This is including 32 Cities in domestic China and Hong Kong And on this chart, you can see this is the distribution of the land that we own. This is ruling the property portfolio from Citiq in the first half of the year, the invested property projects has reached 1.9000000 Square Meters, total IP value, 66 point 1,000,000,000 Hong Kong dollars, total rental revenue is 1,060,000,000,000, an increase of 15 point percent, 30 on the acquisition of the city, portfolio. And, At end of June, we'd already issued out a circular, and we have also communicated with the market and today. I'm not going to go into details, and there hasn't been any change according to the charge that is included in this PPT. And I'd like to talk to you about some updates of this us. At the moment, you know, the delivery is almost about to finish. I believe that very quickly, you know, you will hear results from us because it involves certain regulatory bodies. So I cannot predict a time to you guys, but I believe it will be very soon. Relevant work related, those that are very concerned to you all, for example, in terms of our projects and restructuring and the people repositioning. All of those has been completed and out of the 25 cities, we have already successfully and smoothly completed the process. And in terms of the projects organization and sales, etcetera, that is all completed. And if you have been paying attention, you know, there are some new projects we are already setting, So for the concerns that people had, you know, whether there will be some problems in terms of you know, people positioning or changing their post, etcetera, will that affect the running of the projects? And now I can assure you, you know, you don't have to worry about this. We are simply waiting for I'm not going to talk into details. We still have a Q and A session after this presentation. So you can put forward any questions you may have. And finally, on the market outlook, if you look at the 1st 6 months of China, Chinese economy has been affected by the global economy. And as the first of the 13th 5 year plan. The central government has issued many stable growth policies, including continued QE and continues to, reform the supply side. And for the first half of this year, we have as GDP growth of 6.7% and which meets the requirement of the world on Chinese economy, and it also meets the targets that were set for the whole year. Looking at various figures for Chinese annual growth staying at percent. I believe sense to risk is increasing and we are highly confident of the stable growth of China going forward. And I believe that this will continue estate market. I'm not going to talk through these details. I believe that you all very familiar with these macro figures. Over inventory is reducing and in some major cities, especially those 1st and second tier city, their inventory has been reduced to below 6 months. To be frank. We should also see that in some regions, you know, the real estate market is extremely hot and that might cause certain, issues, and especially in terms of the policies. Overall speaking, all the cities they need to adjust their policies accordingly to maintain the stability of the market. And the company will continue to focus on First And Second Tier Cities even if there are some uncertainties with the policies, but due to the support of the real economy, ends the QE going on, we believe that, you know, for the First And Second Tier Cities, they will continue to grow. On, according on the same trajectory, and we are still very prudent as well as positive on the market. On the outlook of the market, In the new normal, the market is restructuring, and there is more demand for the, real real estate developers and which will, again, help to propel companies like us to go forward. I remember, you know, communicating with the market end of last year beginning of this year. For 2016, this will be a year for the real estate market to continue and perhaps you were not very, familiar with that, you know, but now you should see So I believe that this trend or this, theme will continue. Looking back for the past 5 years, our total sales exceeding 1 100,000,000,000 gross margin, net margin, and the, equity return ratio we have always maintained the leading position among those 100,000,000,000 clubs And whilst continuing to expand our land resources, our net gearing ratio continues to be below 40% financial resistance to risks is, improving. And in terms of credit rating, last year, we have become the first one, globally, for residential show real developers financing and our borrowing cost maintains around 4%, which is the lowest among our peers. In the past 2 years, we have continued to optimize the managing structure of our company. And actually in the past 2 to 3 years. We have been doing this optimization continuously. The professionalism of the company, we believe that this will continue, to help the growth of the company and in the current situation, we believe that cash is king. It is more than land is king. So, whilst we are expanding, our group will continue to make sure we'll have plenty of cash liquidity. Going forward, our growth model will remain the same. We will be pursuing the scale as well as profitable During the 100,000,000,000, and our net profit will continue to improve in a stable fashion. Our profit and will continue to be in the leading team of our peers while our ROE will continue to maintain above 20% and we will, improve the payout ratio, stably. And this is A brief summary of the past 5 years, of course, including the outlook of the next 5 years, It is difficult to really spell out you know, our exact, plans for the next 5 years. And if any of you is interested, we can find another opportunity to talk about future plans, and we have it can be summarized by 8341. Maybe some of you are not very familiar with this, but those from China in China, you will know what this 8341 means. And finally, on the guidance of, 26 within this year, we'll continue to promote the completion of the acquisition deal with cetic, and we believe that this will continue to improve the competitiveness and scale of the company to lay a and we believe that this will provide stable growth for our company this new normal. Our resources available for sale will reach RMB300 1,000,000,000, and we plan to improve our contracted sales target to 210,000,000,000 Hong Kong dollars, and we will maintain dividend payout ratio at 20% or above. In the second half of the year, we'll speed up the integration of the Citi project. And I have actually told you, you know, we are waiting for the final approval at this stage. And, in the meantime, you know, we believe that this integration of this project will bring us many opportunities to grow we will continue to actively seek new growth points as well as opportunities to continue to provide driving force for the growth in the near future. So this is a brief introduction. From me, and I'll leave more time for Q and A session. Thank you, Mister Hau. And now we move on to the Q and A session. If you have any questions, please raise your hand and, let us know who you are and where you're from. Thank you. Good afternoon, Mr. Howe. I'm Carol from DPS. I have two questions. The first one, is on the improved to last year and compared with other real estate developers. And this is not a main increase and especially considering the, acquisition of Citi. So this increase is as big as we imagine. And could we please ask why is this? Is this because mister Hau and, the management team think that for the CITIC project, you know, they are not quite ready to be launched yet or any other reasons. Second question is on your gross margin and, 28% gross margin. This is the lowest of the group, actually. So Mr. Hal mentioned, you know, there are many different factors which has caused this. Could you please tell us more about what are the factors involved and which areas actually has the lowest gross margin and has it already reached the worst? And will we be able to see improvement in the second half of this year and next year. So I'd like to ask if 28% is this the bottom? And for CITIC, you know, the sales of CITIC after their profit comes after them being in concluded, you know, will that further drag down the gross margin? Well, thank you. You know, those are questions that everyone is very concerned about. For us, you know, we have always said that we are pursuing scale as well as efficiency. I remember a long time ago, you know, it is I told everyone it's easy to look scale. China has a huge property market in each city, in each region. They have a huge amount of demand. If you're simply doing scale, it is very easy, but we do not wish to grow like this. 1st, we believe that it takes up too much resource. In addition, it cannot make sure a stable growth of the company. So this kind of growth is not something that I am pursuing nor do I deem as ideal. And in the past, I've always been called conservative and, you know, I have left you with this conservative image. But being conservative, but I make the most money isn't that good, you know, if I'm very aggressive, but I can't make this much money. Will you still ask me the same question? Of course, not. And for me, I like to see stable growth. Another reason is on the management of the company. If you don't have good management system, a good management team. When you're growing your scale, that will Put pressure on your efficiency and which will, in turn, be a failed attempt at stating So that is why I've talked to you about the changes in our management and all of this is to prepare. Once we are expanding, we are not affecting the profit of the company. So you can see, it seems that, you know, our fail is not that big, but we are still making good money, so you should be happy. So second, on the gross margin, I've already talked to you about the in the first in recent 2 years, you know, it's been quite tough and, since City and one city of one city, you know, is incorporated into our balance sheet. There will be some more difficulties. And sometimes, you know, when they enter into your balance sheet, you don't quite know what to do in terms of accounting. You know, some of their business is not connected with our traditional business. That is why I have mentioned you for the real estate market in China at the moment, the fundamentals have not been affected. Are the same. We continue to grow at 30% gross mark you know, I am fully confident. If you're not confident, then we'll see you next year, you know, if you Believe me, well, then you believe me. You know, yes, it is 28% at the moment, but if you ask me for the domestic China, real estate market, it hasn't been affected so much. But all these changes, you know, it's difficult for me to explain. Well, all I can say is that time will tell. Please wait. Please be patient. Okay. Next question in the middle. Mr. Howe I have three questions for the CILIT acquisition. Actually, it has a big impact on our company. Mister Hau has also spent a lot of effort on this deal. So compared to 6 months ago, now, Mr. Howe, for a city in terms of the land quality and the project progress. Are you satisfied or you think, you know, there are things that yet to be improved? 2nd, you know, with the 31,000,000 square meters of land. So for the next few years, what is the theme of the group, 30 relating to the Hong Kong real estate, you know, we're seeing that you are about to launch your new project of, Hong Kong people, Hong Kong land. And we also have another, project in, that's about to be launched. So what is a profit level in your opinion. For some Hong Kong local real estate developers, you know, will you follow what they do? Well, actually the second, the third question you really want to ask Mr. Xiaoyo, you know, I will, leave that to him, and he'll have some news and updates for those 2, projects. Well, in Hong Kong, you know, we would like to part continue to participate in the market. We don't wish to be number 1 in Hong Kong. You know, our main theme is still is to participate in the exact details of the two projects, Mr. Xiao will elaborate. I'll answer your first two questions. So the city project, you know, Oscar, I remember you asked me, you know, are Am I happy? Am I satisfied? Well, to be honest, if I'm not happy, will I do it? I think for so many years, you should know a bit about me. I will not do anything that is that will not make me money, and I will not do anything that's simply a waste of time. If I'm doing it, I make sure that, you know, this will have good return for everyone. The team me and, sit, we are strategic partners. If I say, you know, I'm very happy. Perhaps they're not happy, you know, To be honest, the best thing is a win win situation. What does that mean? That means for the recognition that we have accumulated for the past so many years, you know, our, image, our brand, and our pricing, etcetera. We need to create 3rd influence. And in the past few years, we have also been working towards this we are redesigning these projects, and I believe in the future, these projects will be launched into the market. Perhaps next year. Most of the projects will come out will be launched. This is a consensus between us and Citiq. We hope that we have our professional teams could create more value for this high quality land. They have been an important, shareholder for me. So this is a situation for us. And with a piece of land from sit what is our plan going forward? I'd already answered us earlier, we will be looking for opportunities. If the land market continues to rise, I don't think this is possible, it will not continue to rise, nonstop. For us, when we buy land, I believe you should be a bit confident in our ability. Please be patient. When we have other further updates, we will let you and Mr. Well, a few questions, you know, you're seeing that a lot of companies, you know, are purchasing land and what do we think of this? Well, in the past decade, in the Hong Kong market, you know, Mr. Haw has mentioned that we will participate relatively, you know, we will not change our, principle because in Hong Kong, what we understand is that you know, there are a few characteristics. First is that it's slow. What do I mean by slow? After you purchase land, you can only the, property in 3 to 4 years. Nobody can be quick. You know, this is the government control is very detailed. So this is 1. 2nd, you know, it's relatively stable. The Land price is very stable. And, thirdly, there has been some restrictions in the policy. You can see sometimes, you know, either they won't do it or they do it, but it's very difficult to change. So I think those are difficult to change. And, for example, buying, 2nd property, etcetera, Perhaps those will change. For the Hong Kong people, Hong Kong land project, we believe the value is very stable. Because, you know, it has no difference compared to other projects So those are some of our views on the market will continue to participate in a stable fashion. We will not be having land, out of the blue and to compete blindly with others because the other people are doing it. Thank you. Next question. Good afternoon, Mr. Howe. I'm Eric from CIC see. I have three questions. The first one, we have seen that in your PPT, you've summarized on the development of the past years. We have also seen the growth of the net profit. And, every year, you have maintained that 20% and the core maintaining at 15%. And in the meantime, we're also seeing if you're looking at EPS, actually, the growth of the EPS is not very high. So I like to ask for the management team going forward, you know, including the CITIC program, there will be diluted EPS. And, do you have any guidance on the EPS, you know, on 4. Do you have any views on EPS? So this is first question. Second question. In 2020, you have mentioned in the in the next 5 years, you will, increase your sales revenue to 400,000,000,000. And, should we understand that as the equity will maintain the same or the equity proportion will change. So for the, shareholders of China overseas, you know, once it reaches 400 in, you know, what's the, equity attributable to shareholders and, 30 on the gross margin. You know, I'd like to have a follow-up question. So if you could give us a breakdown of the revenue, could you please tell us the gross margin, from China State Construction engineering and the difference between that versus the gross margin of China overseas. Well, everyone is very concerned about diluted EPS, actually with the CITIC. Portfolio. Whilst I was communicating with you all, I have mentioned this. What is the background of this transaction? You know, you know that Citic is not a company that is short of money, and they are not grabbing money, what do they want they want shares? And I know that all of you and our shares holders are concerned about this dilution issue, actually, for EPS. At the moment, you know, it's not diluted yet. Perhaps we will issue it end of the year. Will that be diluted? I don't think so. But this is not a promise. So what should I do? Well, I'll see you guys in 6 months. And why don't you look at it yourself? A lot of things that I have said, you know, repeatedly, but nobody believes me You know, if I cannot continue to grow the benefits for the shareholders, why would I do this? I know that, you know, at a certain time point, you will be very concerned about this, and no worries. You know, you can look at in the next 6 months, but I'm confident that it will not be diluted. And, second, on the 400,000,000,000 and our plan in the next 5 years. Well, actually, you can see for Cody in our overall, business, you know, the JV projects are actually very few. And, most of the are independent projects belonging to ourselves and you these, I believe the 400,000,000,000 will be mainly for the equity of the company. This is the same as what I've said earlier. In order to pursue scale, what is to wasting resources. Is this worth it? This is also a question that we continue to review and study ourselves. So for me, you know, I believe everything should be on the same page. If you have scale, you should have profit. If scale and profit do not match each other. This is not the direction that we go for. So I believe the 400,000,000,000, a lot of the equity belongs to Cody. In terms of the gross margin, I've said this many times, and don't want to repeat this. I think what your concern is about, you know, the projects of China construction. And actually, you know, these projects, the percentage is very low, only about 10%. So it will have a a material impact on our gross margin. So for domestic China, the fundamentals haven't changed. Thank you for your question. Next question, please. 2nd row over here. Good afternoon, Mr. Howe. And management team. Can you hear me? I like to ask about your cash on hand. Last time, you know, Mr. Howe said that having too much money is also a headache. So, now you have more cash on your hand. You know, do you have any, ways to spend the cash? Is it not a good thing to have cash? It's better to have less cash. If we have more cash, we can give you more and, that means more opportunities, but, of course, I know what you mean. You know, even if I'm doing it, I can't tell you. I can't tell you what I'm doing. This is very sensitive information. Yes, I am doing things. Not always sit on the book. You know, we will make sure that cash will bring benefits, bring values. So same beginning of the year, we have already made plans. If this acquisition with CITIG, had it not been shares or cash, you know, our financial statement will not be what it is at today, you know, by I think you probably would not say, oh, you have too much money. So we are fighting a battle, you know, and the best preparation, you know, air for a better future for our shareholders and for the future of the him, please. Yeah. Here. 2nd row. Thank you, Mister Howe. I'm it from Macquarie. A few more questions on the land purchasing. So from this year, you know, to JPY 400,000,000,000 in 5 years in your PPD This comment, you said the restocking when the land price is going up, the sale was will be needed. So restocking, does that mean means the land price will not come down in a short period. So for Cody, if you want to maintain a good gross margin, that will mean, you know, you will need to have other methods, for example, M and A with, CITIC and some small, deals of M and A and, thirdly, by some, you know, restructuring of the, Shanty towns in other cities. So in the next two years, could you please tell us, you know, if you have some other good surprises such as the city project, or will it be, you know, at one point, you know, you have to come back to the market and fight with your peers. So this is question 1. 2nd, Mr. Ho has mentioned about this, about the 400,000,000,000, you know, it is mainly in equity in your PPD. It has also said that you will consider more JV This has not been mentioned in the past PPTs. Could you please talk to us more about this? When you say, you'll consider more JV and what is the thinking behind that. Okay. Thank you for your question. For the land market, actually, I believe you have been very concerned about this. And I could also understand how you feel. For example, you know, how long it's going to take what if the land market continues to be heated, you know, will the company change its, thinking what from two areas, I'd like to look at this. So first, you know, after completing the deal with Citic, actually, it can provide us with a value worthy of 450,000,000,000. And this, I hope, in the next 3 years, we'll be launching it to the market gradually. And in this backdrop, actually, our pressure for land bank has been reduced, you know, greatly. It is not that we are against land purchasing, but, you know, we we continue to keep an eye out on land opportunities. And in terms of what you are saying, out the possibilities with other companies, you are always trying to get, secrets out of me. But I have also said this, you know, in a year this year. I've given a signal, you know, in the past, we have always talked about natural growth and, acquisition and in the beginning of this year, I said it's seems that M and A growth will also be one of the main growth models of the company. So, M and A growth could also be considered as 1 ways to grow of the company and what you talked about the, you know, upgrading of Shanty towns, etcetera. We have been doing this continuously, especially in 1st tier cities in Beijing and Shanghai, I have always been doing this. And the upgrading of Shantytowns in those two cities, it has been able to provide the company with good support. So if you're interested, you could look at some of the Shanty town projects that we are doing. And to be frank, you know, the future is worthy to be waiting for. In terms of JV, well, just roughly talking about this in the you know, we talked about these 3 things. But we cannot not say anything about this. For me personally, financial resources available, And if we have the good management team, it's not necessary to have JV, we can do it ourselves. So, when I was answering your question, I mentioned, I will run the business mainly on our own. So JV is a model that we are not against, but it is not a main direction of the company. Thank you for your question. Next question, please. No more question. Okay. Well, this will be the end of today's meeting. What really seems like there's no more question? Mr. Hau, I'm Ding Phong from Motors. I have two questions I'd like to ask. Just now, you mentioned about the 1st and second tier city, the policies. Will become stricter. Could you please color more on this? For example, has been some policies in the past, you know, investors thought they were just so so. And second when we look at Cody, we think We like Holly because the management team is very strong. And for mister Hal, last year, you mentioned, you know, if this year we could still see you, we can ask you questions, right? Did I say this? Did I say this? I don't remember. What do you mean? You said I said if I would still be here, you we could ask you questions. So I'd like to ask you, will we continue to see you in the next few just okay. Now I understand what you're trying to say. Actually, in the past, you know, in the 1st, 2nd tier cities, yes, indeed there has been some, policies, controlling policies, and restricted policies. And, some of the policies are quite gentle, actually. And, those are policies that, you know, hoping to guide the market to grow, into a very healthy state, you know, is not for exerting pressure. And whether they are stable or whether they're effective, I think think that would still take some time. And for some cities, you know, we can see that there has been some results, you know, has been some good cooling results. Perhaps you think controlling is about, you know, hitting or con or being very restrictive, but it is not the case. In China, at the moment, you know, various local government, actually, they are becoming more and more mature. So the relevant policies you know, there is still room to maneuver. So I I'm very positive, and I I feel good. In terms of what you said about what I said last year, you know, I can't seem to remember. I wouldn't know how to respond to this in I'm still sitting here, and we still get on with each other. How long can I continue to sit on this panel? I I I don't I can't un I can't answer you. Did you hear anything? You you're too anxious. You know, we get very well. And, I like everyone. I wouldn't want to leave. And that's for CDO number 1. And, this is a project that we had a media briefing this afternoon, and, tomorrow we'll be opening it in, Kowloon Bay And I know some of you here, you know, you are limited, you know, with your ability to buy, perhaps you have some restrictions. But if there is a no restriction, you know, on you or your family, you should totally go and check it out. And, there hasn't been any of the upgrading of the Shanty town in the world as big as this and another project on and we have already obtained the approval. And, this again, this is a good project. It is next to the, C and it has MTR, and the units have a good space. So those are 2 good projects. And you should check out. 1 is good for you to live in. Another is good for you to invest. They are both very thirty of your attention, please go check out and for the number 1. And, this is a good plan. You know, you'll you'll be able to get a, CV. And for to An, I think you could also live in you know, it's about 2000 square feet. It's a great place to live. Thank you. Please don't ask me questions about what that gentleman has just asked. Good afternoon management team. First of all, I'd like to thank Mr. Howe for making money for the shareholders. For the CITIC project. That's what I should be doing, and I have one question. It's a long term question. So are Cody, you know, as such a good company compared with China Mobile. China Mobile, they're revenue is 700,000,000,000. Communications companies and, they have done so well in their own field and in our industry, you know, every year, we'll have 7 to 8,000,000,000,000 of sales and for Mr. Halve, you know, in the next 5 to 10 years, for the lead companies, you know, do you think you can take 10% to 15% of the market share? Because at the moment, the market is still very segmented, it is very difficult to have a long term and healthy development. So, Mr. Hal, what is your thinking on this? Are you a shareholder? You're a very difficult shareholder, I have to say. 10% of the market share. You know, if we are not growing, our residential is about 900,000,000 square meters and, adding the commercial. So that's a out, 1,200,000,000. So based on our average cost per per square meter is 20,000, so that will be 1,800,000,000,000 revenue operating income So out of the top 500 company, anyone can reach this. It's difficult. And Chinese companies they cover, the Chinese cities they cover, you know, all areas of China from 1st tier to 5th tier cities, we have about 600 cities in China. So how many management team would you need for the 600 cities? But I believe 3% to 5% of market share that is possible go forward. I also believe the main developers in China you know, it is possible to reach 3 to 5%. But if you're talking about 10%, that's quite difficult. At least in the term, it would be difficult to realize this goal. So I cannot say whatever I you know, to the shareholders, I think we'll work hard towards the goal of 2 to 3% and perhaps then we could revisit the you of 10%. Thank you for your question. No more questions. Okay. Okay. This is the end of our analyst meeting today. Thank you very much.