Hysan Development Co Stock

Good afternoon. Thank you all for coming to Hysan Development's 2026 Interim Results Announcement Analyst Briefing Session. Let me introduce our panel for this afternoon. Our Chairman, Ms. Irene Lee; our Executive Director and COO, Mr. Ricky Lui; and our CFO, Mr. Andy Choi. We will start with the presentation from Irene, Ricky and Andy, and we will open the floor to take questions.

Now I will invite Irene to start first. Irene, please.

Thank you. Welcome to the analyst briefing on Hysan's 2026 Interim Results. Hysan delivered solid results in the first half of the year. Turnover was broadly stable under a dynamic market with structural changes.

Recurring underlying profit was up by 1.7% year-on-year, driven by disciplined cost control measures and reduced finance costs following capital recycling and debt reduction. Underlying profit grew by 7.4%, contributed by the realized gain on the sale of residential units in 2 blocks within Bamboo Grove.

Turnover for our retail, office and residential portfolio all registered positive growth. If we normalize Bamboo Grove unit sales, our turnover increased by 2.3% on a like-for-like basis, while residential revenue recorded an increase of 34%.

Let me turn to the Lee Gardens rejuvenation, the vision we set out and what it has delivered. Back in 2022, the market was going through structural changes. We chose to invest in our core portfolio and embarked on a Lee Gardens area-wide rejuvenation during COVID. Since 2023, investments in our community through URBANPARK and URBANHOOD have given the already trendy and youth-centric Hysan Place new energy and lifted traffic across the entire Lee Gardens area.

New and expanded flagship Maisons have made Lee Gardens a home of luxury, and we have captured strong luxury sales growth since 2024. And there is more to come. By the end of this year, a transformative second street level will redefine how you move through Lee Gardens, bringing seamless convenience to our community.

The results speak for themselves. This is a very, very good diagram. We should look at that carefully. Since the first half of 2023, retail revenue is up 15% and prime rent per square foot is up by 22%. As of June this year, both tenant sales and prime rent have made a full recovery to pre-COVID levels. This is what we targeted.

We began with a clear vision. We moved into inception, then transformation and this year, connection. As our vision unfolds and comes to life, we will continue to unlock more value as Lee Gardens evolves. We will and must stay dynamic, energetic and maintain momentum.

We must anticipate and stay ahead of what our customers want. Built on our century-long approach to thoughtful curation and our community business model, Lee Gardens is one of a kind, and this unique positioning has enabled us to deliver solid results. In the first half of 2026, our retail portfolio recorded 17% growth in tenant sales and 8% growth in foot traffic, leading retail sales recovery in Hong Kong -- in the Hong Kong retail market.

Behind these numbers is a deeper shift. Consumers are responding to retail environments that feel relevant, authentic and culturally alive. What makes Lee Gardens distinctive is its rare combination of luxury and trendsetting elements together with authentic culture and original experiences.

This allows us to connect with different generations, meeting the evolving needs and aspirations of both our long-standing customers and a younger audience. Our positioning as the home of luxury continue to gain depth, supported by phased completion of the renovated and expanded flagship Maisons.

These renovations represent a reflection of the confidence that leading global brands have in the long-term appeal of Lee Gardens. We will show you a video now, and I'll talk with -- as it evolves. Along Hysan Avenue and Yun Ping Road, luxury flagship Maisons have made Lee Gardens the home of luxury.

Next are our pedestrian foot bridges and further ahead, the nearly completed covered walkway from Lee Gardens to Hysan Place and to the MTR. And at our trendsetter Hysan Place, we have installed a mega screen at one of the busiest and most visible frontages, street frontages.

What you are seeing is the large-scale harvest phase of Lee Gardens' rejuvenation. It's a whole precinct working as one. Our approach is asset enhancement plus content curation. We curate experiences that people cannot find anywhere else. We also bring in unique experiences with unique appeal.

Just 2 examples, there are many, many. For instance, the Louis Vuitton and the 2025 world #1 bar, Bar Leone have revived the glory of our Yum Sing bar from the Lee Gardens Hotel. Tiffany's iconic Blue Box cafe has been so well received by customers. These are some of the special features that bring people back.

Retail today is increasingly about memories, purpose and meaning. Customers are drawn to places that are engaging and resonate with their aspirations, tell stories they can relate to and want to be part of and create moments worth sharing.

We continue to showcase the unique character of Hong Kong's art and culture through our street campaigns to engage and resonate with different generations. Hong Kong's office market remained competitive during the period as companies continue to be cautious when evaluating their space requirements. I'm sure you're experiencing that in your offices.

Our full range office portfolio, combining traditional office space with flexible co-working solutions provides both stability and agility, positioning us as a compelling office destination for the new economy. Lee Garden Eight marks a key component of the rejuvenated Lee Gardens as a vibrant melting pot of work, play and life.

Due to open in the fourth quarter of this year, Lee Garden Eight will expand our Lee Gardens leasable portfolio by approximately 30% with quality tenants secured for both retail and office segments.

Lee Garden Eight is equipped with advanced green building technologies. It has been recognized by a number of prestigious industry awards and top-tier green building accreditations, setting a new benchmark for sustainable development.

You've seen this before, but you will see it in real life soon. This is the integrated pedestrian walkway system scheduled for completion by the end of this year. It will connect the Lee Gardens precinct to the Causeway Bay MTR station. This will make the neighborhood more accessible and pedestrian-friendly in all weather conditions.

The elevated walkway will create a second street level, connecting and extending our retail space for customers and commuters. It will help shape Lee Gardens into an even more human-centric and walkable neighborhood. The foot bridge connecting Lee Gardens Three and Lee Gardens Five has been completed. I recommend you try it. The rest are expected to come into operation by the end of the year.

Our strategic pillars contribute to both business and geographic diversification. Lee Gardens Shanghai is an extension of the Lee Gardens brand into the Mainland. It brings together high-quality office tenants, retail offerings and lifestyle elements to create a rich business and social scene.

Our flex office business venture in partnership with the world's leading flex operator, IWG, continues to grow steadily with 54 centers across the Greater Bay Area. Our health care investment through New Frontier Group supports our exposure to a sector aligned with long-term demographic and wellness trends. These strategic pillars are broadening our growth base while maintaining disciplined capital allocation.

Let me close on what matters most to you, the value we created and how we created it. Over the past 3 years, Hysan has delivered a total shareholder return of 28.7%. That compares with 13.4% for the sector over the same period. This is a testament to our differentiated strategy, our proven execution and our financial prudence.

The extensive rejuvenation of Lee Gardens along Hysan Avenue and Yun Ping Road was timely and strategic, which successfully captured the strong luxury sales growth since 2024. We also took action when the luxury residential market picked up in 2025 and launched unit sales at Bamboo Grove.

That decision generated a net asset value uplift of HKD 3.7 billion. That is 44% above prelaunch book value. It validated the real worth of our prime residential portfolio. We have recycled HKD 4.5 billion since 2025, 50% -- 56% of our 2030 target. This disciplined capital recycling program supports meaningful deleveraging and a stronger balance sheet, ensuring we keep a sustainable capital structure through future market cycles.

I'll now pass the floor to Ricky, who will share more about Hysan's business operations in the first half.

Thank you, Irene. Let me share with you Hysan's business review for the first half of 2026. Our group turnover was broadly stable year-on-year. Turnover of our Hong Kong retail portfolio was up by 1.2% to HKD 861 million. Occupancy increased to 96%.

Expanded luxury flagship and curated tenant mix continue to enhance rental income. Overall rental reversion rate on renewal, rent review and new letting remain positive. Office turnover and occupancy remained stable under a competitive market. Negative rental reversions continue, but is showing early signs of improvement.

Hong Kong residential market has strengthened, which drives stronger leasing and sales momentum. Strong residential sales also support our capital recycling. Our residential leasing portfolio turnover was HKD 100 million. Occupancy increased to 90%. Lee Garden Shanghai's ramp-up continued to increase our office revenue.

Retail. The tenant sales of our Hong Kong retail portfolio increased by 17% during the first half. Occupancy increased to 96%. In addition to the improvement in base rent, turnover rent increased by 8% year-on-year. This reflects the strong sales momentum of our tenants and shows that Lee Gardens continues to attract quality footfall and consumer spending.

Sales across all retail trade categories record growth with particularly strong performance in watches and jewelry. As shown in the chart at the bottom right, Hysan's retail portfolio revenue has continued to grow over the past 2 years, consistently outperforming the Hong Kong retail market.

These have demonstrated our strong customer base, which is well positioned to attract high-quality local customer and overseas tourists. We have been receiving long-term support from our loyal customers. Member spending at Lee Gardens was up by 25%.

Number of Club Avenue members increased by 23%, while number of single transactions over HKD 100,000 saw a 33% increase. During the period, Club Avenue continued to strengthen collaboration with tenants to create exclusive experiences that appeal to high net worth members.

High membership program serve as our engagement and sales engine. It helps identify members with strong potential and encourage them to join Club Avenue. By bringing the 2 programs together, we are further advancing our dual engine CRM strategy with data-driven analytics to drive overall sales performance.

We launched more than 120 promotional campaigns in the first half to engage the community. We collaborated with more than 50 strategic partners in a series of high-profile pop-ups and immersive experiences to deepen customer engagement.

We completed the facility enhancement work at Hysan Place and introduced a new mega screen at one of the busy streets. This helped raise market visibility and business for our campaign and pop-ups. Many overseas brands recognize Hysan Place positioning as a trendsetter and have chosen it as the location for their first store in Hong Kong.

At what we have mentioned, Hong Kong office market remained competitive during the first half with an ongoing flight to quality trend. Our Hong Kong office portfolio was proven resilient with its prime locations and curated tenant mix. Tenants retention exceeds 70%. Occupancy was defended at 93% under challenging market conditions.

Lee Gardens offer a compelling option for companies seeking a workplace that supports brand presence and talent attraction. The wealth management sector continue to occupy the largest shares of almost 21% of our floor area. Co-work sectors and professional and consulting sector occupy the second and third largest shares.

We initiated a $8 billion capital recycling program last year through strategic sales of noncore assets over a 5-year period. They are aligned with our disciplined capital allocation strategy and strengthen our financial position to deliver sustainable shareholder return.

The target assets comprise of 2 blocks within Bamboo Grove and the build-to-sell units from VILLA LUCA and One Victoria Cove residential projects. Taking advantage of improving market sentiment in the residential sector, we have made good progress towards this target and are ahead of schedule.

We have collected HKD 4.5 billion in the first half of this year, representing 56% of our HKD 8 billion target. It helps strengthen our balance sheet and drive deleveraging. A further HKD 0.6 billion in sales proceeds have been contracted and is expected to complete by end of this year.

I now pass the floor to Andy, who will share more about Hysan financial performance. Andy?

Thank you, Ricky. Just a quick recap on the financial KPIs. As of 30th June, our shareholders' fund was HKD 65.3 billion. NAV per share was HKD 63.6 and we maintained our interim dividend at HKD 0.27. And for the -- as Ricky mentioned earlier, the capital recycling program is progressing very well. So -- and that provides a very good means of deleveraging. And you can see that our net debt ratio has improved by 1.5 percentage point compared to the year-end.

And now we stood at 30.9% for the gearing ratio. And also, as you can see in the chart, one of the major debt maturity we will have is the refinancing of Lee Garden Lake project loan, which amount to around HKD 10 billion and is still in the first half of 2027.

And since the commercial property market has seen some improvement in the first half, and I would say the funding environment improved quite a lot recently. So we have been in talks with the bank to refinance this loan, and there's very good progress in the recent negotiation. So we are confident that we will complete the refinancing early in the first -- in the second half of 2026.

And apart from that, the group continued to maintain ample liquidity. Adding together the undrawn committed facility and the cash we have on hand, we have HKD 14.5 billion available facility and cash to basically meet all the financial needs in the coming 3 years. And we also have a very active dialogue with the credit rating agency.

So far, the credit rating has been stable and the rating agency has issued stable outlook. And we also saw some improvement in terms of effective interest rate. It has been down 20 bps in the past half year. So I think that's -- that help us to save finance costs by 16% year-on-year.

So the group will continue to maintain a prudent financial management and to create sustainable return for the shareholder. And that concludes my update.

I will conclude by saying that the market is expected to remain dynamic with changing consumer behavior in the second half of 2026. Our management team continues to demonstrate disciplined approach through effective and efficient execution as well as prudent time and cost control. With Lee Garden's rejuvenation nearly finished, we are at full realization.

And with Lee Garden Eight approaching completion, we are looking ahead to the next phase of growth with confidence and focus. We will remain agile, disciplined and purpose-driven to shape the future of Lee Gardens and contribute to Hong Kong's ongoing development as a global city. Thank you.

[Operator Instructions] DBS Percy, please.

This is Percy from DBS. I've got 3 questions maybe. First of all, is on the retail portfolio. Congratulations on the good tenant sales. But as we are moving towards the second half of this year that we are seeing a higher comparison base, what is your outlook in terms of the tenant sales growth for second half? And what are you seeing on the ground in the recent months?

And also on the occupancy cost ratio, what are we seeing at the level right now? Secondly is on the office portfolio. Just wondering, could you share some more color on the latest leasing demand, particularly from the wealth management as well as insurance firm as we have seen news regarding the Chinese government implementing tax on related products.

And you mentioned that reversions are improving. Is it -- does it mean that reversion are turning less negative? And do you have a guidance for the second half of this year? And thirdly will be on the Lee Garden Eight. I'm sure everyone of us are very excited about the project. We also heard that [ Set ] Bank committed a few floors at the project already.

So just wondering what's your target tenant type as well as is there any pre-commitment rate that management could share with us?

So many questions. The test is whether we remember them. On the retail looking forward, the next half, we remain quietly confident. I mean it's very, very volatile. And I have always said it's quite fragile. So the key is whether you have done a good job in curating what you have and whether the destination is attractive.

It is really positioning, positioning, positioning, right, in terms of location and in terms of what you have and how you run your malls, how you have activities. It's pretty incredible 150 events in half a year we have done. So [Foreign Language] it has to be very exciting.

Every day, we have to think about something new, be it community, be it high end, middle end, trendy end. So it's a very dynamic thing. So we're really good at what we do. And we are very, very purpose-driven and very thoughtful about it.

So I think we just have to keep doing better and keep doing what we do more and better. So that's on the retail. On office, it continues to be challenging. I think we're seeing good bottoming out would be a good word, particularly for Central, right?

But Central doesn't have a lot of new stuff. So once the new stuff is filled, then it will have some lead-on effects. I mean some of our peers have already said they're looking forward to some positive reversions. We hope so, too. But I think the market remains tight because everyone is focused on cost.

Everyone wants to see how much less space they can rent. But what we have great confidence is what we offer is premier. And because we have the flex offering. This is exactly what we thought about many years ago, 7, 8, 9 years ago. We thought people want flexibility. People may not want to commit to 10 floors, right? They commit to 8.5 and they can flex in and out.

I think -- so we feel very confident that, that is a very good combination in the office portfolio. No one has that. No one has the size of flex. And of course, we have a JV with the world's biggest and the best IWG. So we feel very confident how we can manage the fluidity within portfolios.

Having said that, the rents are under pressure. So if our peers continue to flash their rents, then the pressure is on. Maybe that's not a very political thing to say. But I think we really have to look at what the value is. It's about value. It's about what you can offer and people have to appreciate that.

So on office. Now on Lee Garden Eight, as you know, we don't disclose on any of our properties. We don't disclose individual tenants nor do we talk about -- until the asset is more mature, then we can say 93% of our core portfolio is occupied. We will talk about that.

Lee Garden Eight is absolutely in the midst of the launch of our pre-leasing. By year-end, October is when we have -- we achieved OP. That's also towards the end, maybe November is when all the bridges are done. You will see it. I think people really is seeing is believing.

I only walked the Lee Garden Six to Lee Garden Eight bridge a few days ago, very hot. But I can tell you, it is very short, very approachable, very spectacular. And when the bridges are fully connected, which is not that far away, less than half a year, walking from Lee Garden Eight which sounds far away, doesn't it, all the way to Hyson Place MTR is 5 minutes for your age group and maybe 7 for me.

And that is if I don't stop and do anything, right? But we have -- and we're very excited to talk about the second street level. Who talks about that? Who even thinks about that? I do because street level, we all know, right? And street level, we all know command exceptional rents.

How do you replicate that? I think we have. Because we own the buildings, it comes in and out of our own buildings. We can thoughtfully find what is good at this end of Lee Garden Three, what is good at that part of Lee Garden Five and make the whole journey with all the retail F&B lineup as though you are walking on another street, but air conditioned and you can see the sky too.

So I think that is another value creator. So I hope I have answered most of your questions. It really you can feel the color is nothing is easy, right? So you just have to think about what the market needs, think about what changes, what structural changes have happened and you just can't stop.

You just have to keep going, keep yourself dynamic, keep making the changes. So no one is allowed to have a rest. You've asked all the questions you see.

So we have a question from the online platform. It is [ Hui Yan ] from Bloomberg. She hopes the management to share the plan given their upcoming 2027 debt maturity.

Andy?

As we mentioned before, in 2027, the main of the maturity will come from the $10 billion project financing for Lee Garden 8, and we are already in talks with these lenders, and we are confident that the deal will be concluded in the second half of 2026 ahead of its maturity.

And maybe to supplement a bit on Percy's question earlier on those numbers. And as you asked about sales, right? So yes, we -- as Chairman mentioned earlier, our sales recovery began in 2024. So yes, the base is higher and higher for us but we are still seeing very solid improvement going into June and July. And we also see our tenant sales is back at 2018 level, that's pre-COVID level.

And of course, there are some changes in terms of sales mix, watch and jewelry is getting better, and we have very good growth in food and beverages. Some trade are maybe weaker than before, like cosmetics. But overall, in terms of occupancy cost ratio, it has been -- it has improved a lot compared to COVID time, and it's around mid- to high teens percentage for the first half.

And I think it's also important to point out that we -- our turnover rent actually improved in the first half. Despite -- we have set a higher base rent because we record positive rental reversion for retail portfolio in the past few years. But the tenants -- their business is even better than before. That's why they can pay turnover rent.

And I think that sets a very good backdrop for us going into the next rental cycle.

Yes. That's why the Slide 3 was very, very meaningful because if you look at our retail revenue growth, I said to the team, gee, why is it so low? Because we have already captured most of the growth. So you have to look at it as a continuum. We launched our rejuvenation and then we started to capture the rental reversion and the revenue growth.

And what is very interesting is what Andy has said, on a high base rent, normally, you move your base rent to meet -- so people have been doing well, so they pay turnover rent and you look at the 2 numbers and you move your base rent higher again to basically push your tenants to work even harder.

Now at a higher base rent, usually, there's a lead and a lag. You won't get much turnover rent because then they are already meeting what they were doing. So the fact that we are deriving good turnover rent on a high base is very, very impressive. So you really have to look at the journey.

We started our journey, I would say, looking back quite courageously, but I felt -- we all felt high conviction that it had to be done. No one should stay still, right? It was COVID, and it was tough. It was very tough to see through the rainfall. There was a huge rainfall, right? We don't know what is going to happen, the structural changes.

So we decided that we had to consolidate. We had to strengthen, we had to make our core really, really drive the engine. And so we started from 2022. It's actually not that long ago, but you can call it lucky, you can call it good planning. We captured the very, very strong growth from '24 onwards. It all got captured.

So I hope that we will continue to see this curve up. We have very, very ambitious targets because one of my very first target was, I don't want to hear year-on-year. I want us to look back at when we were at the peak before COVID. So 2018 was our number. And every time we do a number, we look at that, how come and how can we go back to that. So it's only going back. So we need to surpass again, right?

So it's not easy, but this is how we look at the business is to continue to build, continue to sweat what we have invested.

Chairman, while you talk about full realizations, may I add a little bit color of the full realizations. When we talk about full realization, LG2 now have the corner that under renovation that over 10,000 square feet is coming up. At the same time, the Lee Garden Eight will add another 100,000 square feet.

And to give a little bit color, retail is very positive. Basically, most of the spaces has been like people in the negotiation or committed. So we are very positive about Lee Garden Eight retail performance as well.

So we -- I'm sure you will see it when it happens. We are really looking forward to it. I think Lee Garden Eight will be will really be very, very special. And it really has to be part of our -- we don't look at it as Lee Garden Eight nor do we look at any of our individual buildings as it.

It has to be a holistic approach. It has to move the entire traffic, the entire attraction of people who comes. It has to be moved within the ecosystem. And we try to look at number of hours, number of days spent because I'm sure all banks, you look at share of wallet. This is how we have share of wallet and to make sure we have our wallet of grandparents, parents and children.

And that is why it's so important to see our offering, not just luxury, not everyone has to buy watches and jewelry, but we have the entire span to the affordables to the trendy. And we were one of the very first to recognize Street flight -- Street wear. Right? Street culture.

No one never heard of skateboarding, right? So you just have to keep looking at what people want. And now with Lee Garden Eight we can offer even more. I'm very excited about the greens, the grounds that we will have. Because we've never had enough grounds for events and for gatherings.

I think for them, probably you already observed from Lee Garden Three, you have Tiffany, right? So -- and you have Mastermind, you have off-white and then Camil, all this is moving -- connecting our main portfolio with the Lee Garden 8. So that's why I said the picture is very nice. Lee Garden Six has just finished the works and you see the beauty of facade, the beautiful space.

So I think the expand the Lee Garden retail portfolio will really bring us to another level, much richer and much more quality offering will attract more people. The spend will be much wider than before. And even tourists. Honestly, we see a lot of tourists coming to our place.

It's different from maybe different TST, but we do attract appealing to a lot of new tourists coming to Hong Kong who really want to know about Hong Kong to the [indiscernible] Hong Kong. Lee Garden is the place to go.

And just to give a little bit about even the office, we don't want to comment on any single protect news. But to give you some colors, we do have multiple committed tenants now, which give us -- particularly when the building is almost complete, we see the traction gain a lot.

As Irene said, once we bring these people to the site to the bridges, they know they can figure out how good Lee Garden Eight is. So we are confident we will be able to attract more tenants from now on.

And we think the pie has to be bigger. Now if you just look at it, the pie doesn't seem to be growing. But with new economy with the Mainland business coming to Hong Kong, it has to grow. And not everybody should be hunting for the same fish, right, in the ocean. You have to -- so our offering is we've been always been many years, we have been very high appeal to the new economy, to the technology companies. And I think that's great.

And they also need a location like Lee Gardens, which is community-based, which has a lot of nonstop F&B offerings because they need to attract people who want to go to work. No one wants to go to work, which is one, not convenient, transportation- wise; two, nowhere to have lunch, nowhere to do anything, right? So I think that is really important for today's generation as well.

You're all young, you're all working hard. You want to be able to skip out when you are working late, right? And then still come back and skip out, have a bit of a release. You can have anything from wonton to pizza to -- or whatever, right? And you can come back. I know there's a lot of provision of food in your office as well.

But people actually want to get out, right? So to us, it's very important. And we're also very committed. The government wants to have a thriving culture, a thriving night, yes, fun, right? Well, so how do we get people to stay out and that is by not being boring.

You have to offer things for people to do. So no one needs to prep dinner early and go home by 7:45, and that is so bad, so boring. And you've got to motivate people. So we have built -- increasingly, we've built more and more so people have the option of having dinner, listening to music, going for a drink, having a coffee later. But it's just meet friends. So that -- to us, that is a good life.

And when we talk about our office, one thing we -- I have to remind the team that Lee Garden are offering the full range of office because we don't just come to say, super grade A HKD 100 square foot or bad things. We all are well managed under our team from the 50 OCS building to the newest building with different specifications.

And with the IWG, we actually extend it to the other end to accommodate people who don't want -- we don't want flexibilities and the business still changing -- developing. So to give you a number, which was interesting that don't think -- never think about we have our IWG build own space.

The IWG all the centers have the occupancy over 85% which is a very good number. That means this is a place that really fit the co-working tenants, they think this is a place to go. So I believe that we are more concentrated in the highest occupancy rate in Hong Kong about co-working, which actually equip our whole ecosystem in a very nice way.

And we always see co-working space as helping us diversify our demographic as well, right? Because people go to -- we see them coming in and out of our lift. I mean you can come in shorts and slippers, you can -- because there's a lot of people who are either transient, they are building a new company.

But we have -- so you add actually more interesting demographic to a portfolio. Otherwise, you always have bankers, fund managers, lawyers, accountants, right? Right? So it's more interesting. And then they will demand different types of food. And so we just want to make sure that it's a good mix of community.

Thank you, management. We can conclude the session today. We sincerely invite everyone to come and experience our new second street level [ ponder ] completions of the connectivity. Thank you.

Thank you very, very much. Thank you.

Good afternoon. Thank you all for coming to Hysan Development's 2025 Annual Results Announcement Analyst Briefing Session. Let me introduce our panel for this afternoon: our Chairman, Ms. Irene Lee; our Executive Director and COO, Mr. Ricky Lui; our CFO, Mr. Andy Choi.

We will start with the management presentation, and we will follow that to take questions. Now I will invite Irene to start first. Irene, please.

Thank you. Welcome. May the year of the horse bring everyone good health, happiness, big prosperity and of course, happiness to your family. Welcome to the analyst briefing on Hysan's 2025 Annual Results. Hyson's journey is rooted in a legacy that spans more than 1 century. From our founding in the early 20th century, you can see the map to our present day transformation of the Lee Gardens precinct, we have continuously evolved to meet the needs of a dynamically changing city.

As we adapt to generational shifts and societal changes, we continue to focus on creating a sustainable community, generating long-term value for our stakeholders and the city. Hyson delivered solid results that outperformed the market in 2025. Turnover and underlying profit grew by 1.6% and 28.3% year-on-year, respectively. Turnover for our retail, office and residential portfolio all registered positive growth. Recurring underlying profit was down by 1.9%, reflecting increased interest cost and loan drawdowns related to asset enhancement projects.

From vision to results, our journey of transformation continued to bear fruit. The renovated and expanded flagship Maisons of Chanel, Louis Vuitton and Tiffany have opened. And of course, previous year, we opened Dior and Hermes. Now we have 10 flagship Maisons of luxury brands spanning our Lee Gardens hub. This has led to double-digit year-on-year growth in tenant sales for the second half of 2025. At the same time, our office occupancy rate was up by 4% during the year. Lee Gardens Precinct will be fully connected in the second half of this year, including a second street level, which I'll talk a little bit more about, shopping experience brought on by the elevated walkway system. Just imagine having one street and another street above.

The soon to be completed Lee Garden Eight will expand our Lee Gardens Leasable portfolio by about 30%, boosting the precinct's daily captive traffic by 20%. From our strategic pillars, Lee Gardens Shanghai achieved a strong ramp-up with office and retail committed occupancy at over 80% and 70%, respectively. With occupancy at 85%, our Greater Bay Area flex office, IWG has been delivering good profits. For our HKD 8 billion capital recycling program to be achieved by 2030, we have collected HKD 2.1 billion. In other words, 26% of our target.

And additional HKD 1.6 billion sales proceeds has been contracted. So you have to add the 2 together. Sales of Villa Lucca maintained solid momentum. Based on our century-old curation and community business model, Lee Gardens is one of its kind, allowing us to achieve such solid results. The unique essence of Lee Gardens is the coexistence of luxury and trendsetting elements as well as authentic culture and original experiences that meet the needs of both the older and the younger generation. Traffic at Lee Gardens area saw an 11% year-on-year increase. Tenant sales grew by 8% year-on-year with double-digit growth in the second half of last year, demonstrating our strength to outperform the market.

We have now entered my favorite words, the harvest phase of our ongoing transformation journey. The unveiling of the new Lee Gardens marked a significant milestone in this journey with more than 10 newly renovated and expanded flagship maison for luxury brands, all opened for new in-store experiences. Our strategy for Lee Gardens rejuvenation was proven to be timely as financial contributions have been materializing. These are very good pictures. Now this is an interesting and more overall picture. Lee Gardens has been endorsed by luxury brands. With the opening of more than 10 flagship maisons, as mentioned, the Lee Gardens precinct has further solidified its reputation as the city's home of luxury. Now individual brands, Hermes. Hermes celebrated its grand opening with an outdoor party, in fact, a sculpture, held exclusively for Lee Garden VIPs, offering a spectacular evening with performances by artists from Paris.

Dior. Dior created an exquisite luxury art space by presenting a first in Hong Kong Tellure Bar Sculpture display at Lee Garden One Atrium, apparently never been done before. Cartier's grand opening was even better. It was absolutely unforgettable with this festive light show, fireworks, spectacular fireworks and performances with the Hyson Avenue closed, can you believe closing an entire road for them? Chanel. Chanel's expansion and reopening offered one-on-one boutique tours and tailored experiences for VIPs. I recommend to all of you, you must go because you will end up buying things.

Tiffany. Tiffany just opened in December. So their flagship maison was opened in -- at the end of December with -- you see upstairs, it's still not open with this Tiffany Blue Box Cafe, 1 of 5 in the world, we have them committed to that. Nothing further Hong Kong, Macau or China to be open in -- they promised beginning of April. So that will be quite an experience. Louis Vuitton launched thematic displays and a pop-up bar. If you have not been, you must. It's Bar Leone, the #1 ranked bar in the world in 2025. It's still downstairs, not for long, and they opened that bar, paying tribute to our Lee Gardens Hotel. I think you're all too young to remember that. Yum Sing Bar. They pay trip with the traditional old drinks from Yum Sing Bar and theme and look. And in store, they have created 2 VIP rooms, one to reflect Yum Sing Bar for the men and for the ladies, VIP room with the theme of Lee Theater. So this is a very, very wonderful paying tribute to Lee Gardens. As for the retail experience, we showcased the unique character of Hong Kong's culture alongside global trends.

Our campaigns engage and resonate with different generations. Our full range office offerings, which combine traditional office space with flexible co-working solutions offer both stability and agility, ensuring we remain responsive to the changing needs of businesses and tenants. I think all of you know we have a joint venture with IWG in the Greater Bay Area, including Hong Kong. Designed as a model for the next-generation business community in partnership with world-renowned architectural firm, Foster & Partners, Lee Garden Eight sets new benchmarks for building quality, sustainability and connectivity and, of course, class and style.

Amongst these are its advanced green features, a 60,000, can you imagine 60,000 square foot lifestyle park and dedicated spaces for the performing arts and cultural experiences, we will have a black box theater. More than 600 parking spaces at Lee Garden Eight, all equipped with EV chargers. This will further reinforce Lee Gardens as a commercial destination and even extend its appeal to travelers from the Greater Bay Area, particularly now with the southbound traffic. Lee Gardens 8 is equipped with the most advanced green building technologies in Hong Kong. It has been recognized by a number of prestigious international awards and most of the highest green building accreditations, setting a new benchmark for sustainable development.

I think some of you have seen snippets of this, but it's difficult to imagine, isn't it? Without looking at the video. And soon, in August, September, it will be unveiled. And we have a marvelous show suite, which talks about our history and about this and the connectivity. So I'm sure all your banks, all of you, would like to move here, won't you? That's a best community. So the integrated pedestrian walkway system scheduled to be completed in tandem with Lee Garden Eight will seamlessly connect the Lee Gardens Precinct to the Causeway Bay MTR station, making the neighborhood pedestrian-friendly in all weather conditions.

So it's very, very much the walkable community. The elevated walkway will add a second street level. You can see the elevated walk some of it, which connects and extends the retail space to customers and commuters, which creates a vibrant human-centric walkable neighborhood that integrates everything, work, leisure, community, 3 generations. It just integrates life, and you feel you're amongst it all. Next is our strategic pillars. We -- our strategic pillars have contributed to both business and geographic diversification. At Lee Gardens Shanghai, we created a high-quality tenant mix of reputable financial institutions, multinational corporations and retailers, supported by a lifestyle high street podium that creates a rich business social scene. Lee Garden Shanghai is an extension of our Lee Gardens brand into China.

We were encouraged by the performance of our flex office business in our joint venture with the world's leading flex operator, IWG, which continued to grow across the GWA. Along with the growth momentum of New Frontier Group, our health care investment, we are making steady progress scaling up our business across regions and sectors.

Ricky, now I'll pass the floor to you so you can share more about Hysan's business operations in 2025.

Thanks, Irene. Let me share with you more about Hysan business review for 2025. Our group turnover grew by 1.6% year-on-year, supported by solid performance across core business segments. Turnover of our Hong Kong retail portfolio was up by 1.5% to HKD 1.7 billion. Occupancy rate increased to 95%. Rental reversion rate on renewal, rent review and new lettings was predominantly positive. For our Hong Kong office portfolio, turnover declined by 2.3% to HKD 1.44 billion. Average rental reversion rate on renewal rent review and new letting remained negative.

Despite market headwinds, occupancy rate increased to 94% with over 85% retention rate. Our full range office offering, combining traditional office space with flexible co-working solutions provide choices and create balanced tenant mix. Hong Kong luxury residential leasing market showed steady growth in 2025. Our residential leasing portfolio saw a 5% increase in turnover to HKD 229 million. Occupancy rate increased to 87%. Average rental reversion was positive for renewal, rent review and new lettings. The Lee Garden Shanghai continued to benefit from strong occupancy ramp-up and diversified tenant mix, delivering a new stream of recurring earnings for our group.

We talked about the rejuvenation and the pedestrian link system. Significant purpose were made, and we expect all will be done by -- in the second half of this year. About retail, tenant sales of our Hong Kong retail portfolio increased by 8% in 2025. Occupancy increased to 95%. We have been meeting the evolving expectation of customer by elevating our retail portfolio with expanded flagship maison our luxury brands to offer more distinctive customer experience. And continue our iteration to bring unique vibes and offering to the area. We achieved better sales across all trades with particularly strong growth in watches and jewelries.

The turnover of our Hong Kong retail portfolio consistently outperformed Hong Kong retail market sales with our attractive marketing initiatives and effective loyalty programs. We sustained our retail revenue growth throughout the 2020 to 2025. Come to about our loyalty members. We have been receiving long-term support from our loyal members. Member spending at Lee Garden increased by 23%. The number of single transactions over 100,000 saw a 22% increase. The average annual spending of our top TM members surpassed HKD 1.4 million per member.

We achieved a significant breakthrough in our engagement strategy with valued customers by forming strategic partnerships with banks and wealth management firms and attract potential high spender by targeting premier banking clients and prequalifying them for our Club Avenue tiers. As a result of this member acquisition program, we converted over 1,500 individuals into our Club Avenue, expanding our high potential member base and showcasing the effectiveness of our outreach model.

One of the major achievements during 2025 was our introduction of over 15 new brands to the Lee Garden Precinct, which complements our existing portfolio and cater to a wider range of customer preferences. With an even greater variety of well-renowned brands and innovative lifestyle concepts, the Lee Garden Precinct has further strengthened its destination appeal for locals and visitors. This year, we hold more than 180 events to engage the community, also collaborated with more than 100 strategic partners in a series of high-profile pop-ups and immersive marketing campaigns, offering novel and compelling attraction to customers. We keep introducing new fine dining restaurant and trended F&B concept to the area. Now we have over 110 F&B outlets in Lee Garden areas, broadening the culinary options available to our visitors.

In the latest phase of revitalization, Hysan Place introduced new retail and F&B offering along with exciting pop-ups and events that appeal to the younger generation and global audience. This curated approach to our tenant mix and experiential engagement continue to drive robust growth in footfall and tenant sales, reinforcing Hysan Place reputation as a trendsetting destination in Hong Kong. For our office portfolio, tenant retention exceeded 85%.

Occupancy increased to 94%, supported by our ongoing effort to diversify tenant mix by leveraging our unique positioning and offering. Leasing activity in the market was driven by continuous shift in preference towards prime location and well-equipped office building in Lee Gardens. At the same time, we offer flexible rental package that our support early renewal and highlighted our enhanced offering of fully furnished office space for immediate use and sustainable amenities to attract and retain quality tenants. Coming to the capital recycling. As a prudent financial discipline, we have initiated an $8 billion capital recycling program over a 5 year period. Riding on the improving sentiment in luxury residential market, the strategic divestment of noncore assets will allow us to unlock value from mature residential assets, optimize our capital structure through deleveraging and provide capital for strategic needs. 74% of the tour blocks of Bamboo Grove and 63% of Villa Lucca unit have been contracted. Preparation for the presale of Top 12.1 residential project is underway.

We have collected HKD 2.1 billion or 36% of our capital recycling target and additional HKD 1.6 billion has been contracted. We will prioritize deleveraging and be deploying capital towards strategic priorities.

Now I pass it to Andy, who will share with you more about Hysan financial performance.

Thank you, Ricky. So first of all, I think we will go through a few key numbers for shareholders' returns and values. Shareholders' fund was HKD 65.5 billion as of the end of 2025, down 0.8% from last year. And NAV per share was HKD 63.7, down 0.9% from the previous year. This basically reflects the change in recurring underlying profit and also the change in fair value of investment property during the year. And for dividend, we have kept our full year dividend at HKD 1.08. Okay. Next is on our financial and capital management. The company continued to uphold prudent financial management while maximizing our capital productivity.

As you can see, the first key metric is our net gearing ratio. As of the end of 2025, our net gearing ratio was 32.4% improved by 0.5 percentage points from the interim period end, reflecting the results of our capital recycling program. And for effective interest rate, it was 3.7% average for 2025, improved from 4.3% of the previous year, thanks to the decline in HIBOR. And we also maintained a healthy mix of fixed rate debt and floating rate debt. Our fixed rate debt comprised of 54% of our total debt as of the end of 2025. And our average debt maturity was 2.8 years at the moment.

And I think as you noticed from the debt maturity profile, a majority of it will be in 2027. We don't have any significant debt in 2026 maturing. For 2027, that's mainly attributable to the project financing of Lee Gardens Eight. And we are in talk with our friends in banks. And I think so far, we have received very positive response from the banks, and we are confident that such project financing will be refinanced into an operational. And the company also maintained strong liquidity and cash position. We have an undrawn committed facility and cash totaled HKD 14.3 billion as of the end of the year. And that's adequate to cover Hysan's debt maturing over the next 2 years. And also sustainable finance, we have set out a very clear target for it. We are going to maintain 40% or above green that in our profile. And so far, we continue to improve this ratio. And as of the end of 2025, it stands at 44%. So that's the update on the finance side.

I will pass the time back to Irene.

So I'll conclude. Looking ahead, 2026 will continue to face challenges. We are, however, battle proven and ready. We are confident in our ability to navigate changes and seize opportunities and that our shared expertise and spirit will carry us forward. Our rich heritage and commitment to bringing unique experience, innovation and sustainability to the community will position us well for continued growth.

As always, we adhere to our prudent financial management. While carrying out our capital recycling program, we will remain agile, disciplined and purpose-driven to shape the future of Lee Gardens and contribute to Hong Kong's ongoing development as a global city. Thank you.

Thank you, management. It is the Q&A session now. [Operator Instructions]. Yes, the gentleman on the first row from UBS.

This is Ben from UBS. So I actually have two questions here. The first one is on the capital recycling program. So given a good contracted sell-through on Bamboo Grove so far, do you plan to add more blocks from Bamboo Grove for disposal? That's my first question. And the second one is on LG8. Can you give us some updates on the pre-leasing at LG8? And are you seeing more inquiries? Or is there better sentiment in the office market? And if there is more inquiries, mainly which sector are these inquiries from?

I'll start. On Bamboo Grove, it has gone very well and a lot more quickly than we had assumed. So we would like to finish Bamboo Grove Block 74 and 82 first. And hopefully, we'll see that done by middle of this year. Now as far as the other blocks are concerned, we will continue to look at the situation. If the market warrants it and if we see that it does provide the purpose and the needs for us, we will consider.

And we are ready to -- legally, it is ready. For Lee Garden Eight, we still have 2 and a bit quarters, so about 7 months, 8 months before completion. So we are in discussion, very, very active discussion. The market continues to be difficult. However, we feel very, very confident. And we -- in terms of our pipeline, it is good, it's strong. So we will give you more news when the time comes. There is still time.

So [ Ben Choi ] from the first row from BoA.

First of all, happy Chinese New Year. So my first question is the -- our tenant sales during the Chinese New Year or the first 2 months. I know it's still early, but are we seeing an acceleration in terms of growth, say, versus fourth quarter last year? Any color will help. Secondly is on our existing office portfolio, glad to see that the occupancy rate continue to climb.

So can you give us more color whether it is expansion demand from your existing tenants or it is a relocation from same district or other districts? And if you can give us a guidance on the rental reversion outlook, how much spot rent will be lower compared to last year, that would be great.

I'll start and then Andy and Ricky can supplement. For the first 2 months of the year, as you know, we are very, very data-driven and our numbers are very real time. So I'm going to adjust their budget already. So that is the good news. So it's very good news. We're seeing very, very strong tenant sales in the first 2 months. We always blend the 2 months because Chinese New Year can fall into either month. So we always put it together. So we can talk more about that.

But then in terms of our office portfolio, number one, our retention rate is strong. 85% is pretty damn good. And number two, big demand, I'm not seeing big demand, but we're seeing fresh demand. So how do we get a 4% increase, right? So it's retention and filling up with new tenants. So no, we are pretty pleased. I mean, I'd like it to be 100%, but at 94% and be able to have a 4% increase, that momentum. And I do think that the office is the last to be -- to revive. I mean residential has -- residential rent then sales, retail, and I think office, we really -- I want to say I've seen the bottom. Ricky and Andy?

I think just for -- other than the good sales result. We all know that during the Chinese New Year, people said a lot of Hong Kong people outbound stress from. While we -- even during the very few CNY days, we do see very good traffic here, and we're happy to see more tourists than before during those days. So we find the Lee Gardens area become more attractive visit us, those who really want to know about culture, Hong Kong rather than just shopping. So this is quite encouraging about our curation, trying to attract the right kind of high spender or even tourists to our place.

Actually, that is a very interesting point because we map the graph of these few days of Chinese New Year against the previous Chinese New Year. Given the negative migration, if I may call that, you would have expected a bit of a dip, right? We didn't. We were exactly the same, which tells us 2 things. One is the inbound have chosen to come to us and also the locals, even though they are going out, have chosen to spend and be with us.

So that is something that we want to happen and it's very reassuring to see it happen. So we actually mapped and it's absolutely spot on despite the negative delta -- it should have been a negative delta.

And in terms of office demand, just back to your question, I think we are seeing strong demand from wealth management business and also health care. I think that echo what's point. The traffic has been improving quite a lot for the Lee Gardens. And we have seen a lot of Mainland frequent Lee Gardens during the period. And so I think that helped the business for wealth management and health care as well. So we do see a strong demand from those operators.

Those of you with your banks without a wealth office with us, you should. I mean we see tremendous business in the several banks who have the -- apart from HQ wealth office, the other wealth office, which is big is with us. So it's a very, very interesting and popular destination for -- particularly for mainlanders.

And a little kind of observation that I would like to share. At the same time, our occupancy of retail is high. At the same time, retail rent are normal much higher than the office. We still see a lot of our service trade, particular beauty or even hair, spa, blah, blah, blah. They're moving upward to our office from our retail portfolio, and they are doing super good.

And that becomes kind of another attraction for those service trade or semi-retail trade to take up the office space as well. I think that's quite unique for Lee Garden as a place that for the office, the catchment, you always said our catchment is small. Why? And we are much more balanced. So from corporate to this kind of service, I think we can cater all of them.

And for the service trade, there is really no need to be at in the middle of your retail mall on the street. I mean for me, the last thing I want to do is a bumpiness someone out facial, right? So going upstairs, enjoying better rent. I mean the office is always cheaper than being in the prime. All you need is 1 or 2 to start the trend and people then realize it's actually a very good solution for them because it's a very private thing. Hair spa, facial, it's private, right, massage. So going upstairs and some of the very high brands are there, enjoy sea view, completely different experience.

Strong sales, strong sales.

Yes. And we can turn over rent.

Yes.

[indiscernible]

This is Percy from DBS. Happy Lunar New Year as well.

And congratulations on the good results from the retail portfolio. I have a follow-up question on retail. Just wondering what's the current occupancy cost ratio for the retail? And how do you see the reversionary outlook going forward? And secondly, I have a question on the financial capital management side.

I understand we've got a quite decent amount of cash back from the sales of Bamboo Grove. Just wondering what's your priority to use that capital? Will it be mainly on debt reduction or forgoing CapEx needs? Or -- because I saw that you also redeemed a bit of your perks. Just wondering what -- what's the thinking behind? And what's your strategy going forward?

It sounds like Andy question.

First of all, for occupancy cost ratio, of course, we mentioned about tenant sales improving 8% year-on-year. So you could expect occupancy cost ratio is better than last year. So it's still around high teens percentage, but certainly improving. And we are happy to work together with our tenants to further improve it, of course. And for the rental reversion, I think it's kind of related to that tenant sales and occupancy cost ratio as well. We are happy to see base rent go up.

But as we mentioned, a lot of these positive rental reversion are drive by luxury flagships and mean expansions. And apart from that, of course, for the mass -- more mass-oriented retail portfolio, we do see positive rental reversion as well. But for them, I think it's more important for us to curate the right tenant mix to work with them to drive sales.

And at the end, it will turn out to be the turnover rent, and we will start another virtuous cycle again. And so -- and on the capital recycling program, of course, we are happy to see cash coming in fast. And we have mentioned before, we -- certain deleveraging is on our mind. So we have already seen our net gearing ratio coming down half-on-half. So I think that's our priority. And of course, we do have our strategic plan in execution. So we will allocate the right amount of resources for different strategic initiatives as well to support the company's long-term growth.

An interesting point on rental reversion for retail as we move the base rent up, which I think is important because that's where the quality of earnings, that's just stable earning. There's always a lag between that and the turnover rent. So we usually are informed by the turnover rent. Turnover rent is quite healthy, significant, then we'll go to the tenants start to edge up the base. And then it will take a little bit of time for them to try harder again to produce a turnover rent.

So I think the key factor is we work very closely with our tenants. We can see who is struggling, who needs it and who just won't make it. So you just have to be very close to them. And that's something that we're constantly improving with our staff to stay close. We call it tenant operations. You really have to know what are the pain points? What are they worried about? What are they suffering? Are they getting enough merchandise? Have they lost their top sales team to. So we are very, very -- you have to stay close. It's like running your own business.

Due to the time constraint, we will take one question from the online platform. It is from the C Capital. Can the management share more about the performance of the high luxury and retails and also the mass market product in your portfolio, how they behave differently?

Ricky or Andy? Yes.

I think for the luxury market, you see we talked about the strong growth in watch and jewelry. I think that's outstanding. And the Maison, most of them also performed very well. We see very good results over the last 12 months from Christmas to New Year's. And we also see the performance has quite related to the collaboration with Hysan itself.

Our revenue become a very important engine for them to drive the sales as well. So I would say we see the strong partnership now to drive the performance, I can say, particularly for -- within our portfolio. And for the non-luxe market, we emphasize on one thing, curation, okay? It's all very important to find the right tenant. You can see some people not have business, but some people have kill outside the shops.

So it's very important to find the right tenant. And that, as Irene just mentioned, it's also sometimes it's about your competence or about your -- how you spot on that tenant to give them a good package, attract them and trying to harvest through the turnover rent. I think that we -- over the last 10 years, the company has done a lot of work on that part. Now we are more confident about choosing the right tenant to enhance our tenant mix.

Yes. So just on the luxury side, we look at productivity per square foot. Now it's quite a few of our Luxe tenants have doubled their space. And that's very big. So what are the key issues? The key issues are, number one, consolidation. They have to understand that they cannot have 7 stores around Hong Kong anymore. And that's usually in the discussion. When I discuss a renovation or an expansion with them, we always talk about closures. They have to. So that's number one.

So on productivity per square foot, the mode is expanding into private rooms, salon Prive, right? And those are empty rooms. So do you kidnap a client and put them in and pump them until they buy 4 handbags, right? But that is the experience that is required. They really require the high luxury rooms. And that is why for Louis Vuitton to have -- it's wonderful to have a theater room and to have a Lee Theater room and have a Yum Sing Bar room is special.

So how do you actually squeeze productivity out of that square footage. Now I'm very concerned about that, and I always interrogate our tenants. Why do we need 4 of these rooms? What is your occupancy? How much productivity do you get out of it? So that is where they feel we are constantly on their back. So productivity per square foot is really important. Don't just occupy space. For us, we look at our space as a very, very valuable asset.

So if you occupy space, you must produce. So it's not a linear. Actually, it has to be better. It's not 2xyour old productivity, it has to be better, a premium because you get the better experience. So on luxury is -- so we stay very close, and that's a very, very big number. Now we have our data, which shows for Club Avenue members. Am I allowed to say that? 70% to 80% of those people shop at those brands. 70% to 80% of Club Avenue. So how do you nurture, grow and recruit? So I mean, I must also do another explanation on how we recruit. We don't just have Club Avenue. We have hy! Platform.

Hy! membership.

And that is our general public. But within the general public, because of our data, we spot potentials and then they get nurtured and grown into our Club Avenue, which is by invitation only. So we just have a massive recruitment platform, which nobody else has.

Hy! Membership is over 0.5 million in -- and even active is almost 150,000.

And we constantly activate them, dehibernate them. So -- but having that access and also visibility to behavior is really important. So that's something which I think is actually quite special.

Yes, I think that's very important. As you can see in the numbers, of course, we know that Hong Kong retail sales also rebound, and there's a very good improvement in watch and jewelry that's where we spot in the wider Hong Kong market as well. But for Hysan, as you look at Page 24, which is we showed earlier, we have sales improvement across all trades. And also even for F&B, and we are seeing productivity going up in 2025. So I think that's very important. And that's what Club Avenue member and also what high member contribute to help our business and our tenant as well.

F&B is really important because you always hear the negative side on TV. Everyone is closing all the traditional. It's all these sad and sorry stories, right? Our F&B is very, very -- the big performers. But we really curate them. And of course, there are some struggling ones.

The struggling ones really try to help, if not edge out. But again, it's the curation. So you can't just have -- you can't buy handbags or watch. You need to eat, you need to enjoy events. We have nearly 200 events a year. I can imagine playing in the area, so crazy, right? So we have very, very good events. So the whole experience is complete.

Next time we can invite you to enjoy the busking within the herbal tea shop. We just done one in [indiscernible]. We go first in the...

For the most traditional herbal tea -- [indiscernible]. We try to use every bit of our imagination and step into other people's shoes, what would they enjoy. So -- and it's very tiring. It's nonstop. So thank you.

Thank you.

Thank you, management. We can conclude the session today. Wish everyone a happy Chinese New Year and good health.