Far East Consortium International Limited (35) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to Far East Consortium International Limited 2024-25 Interim Results Investor Presentation. Before we begin, let me introduce the management with us today. Winnie Chiu, BBS JP, Joint Managing Director and Executive Director; and Mr. Boswell Cheung, Chief Finance and Company Secretary. Ms. Wendy Chiu, Joint Managing Director and Executive Director is now in another engagement, and she has recorded her presentation. Now may I invite Boswell to start the presentation. Boswell, please.

Thank you. Thank you very much, and thank you all joining our interim results presentation. Our interim result was published last night. So today, we are going through the -- some important points by the presentation we have prepared yesterday as well. So the main theme of this first half financial year 2025, we noted cash profit positive. Although we've got a lot of a few various factor affecting our results as well as our equity. So our adjusted cash flow -- our adjusted cash profit is $139 million. Revenue dropped about 18.7% to approximately HKD 5.2 billion. The main reason is that we're less residential property development was completed, et cetera, in the first half versus last interim period. The net loss attributable to shareholders approximately HKD 770 million. Well, like I said, there are a few factors affecting these profits. First, I think all of us -- a lot of companies facing the same questions, the finance costs. During the first half, we noted HKD 497 million of the finance cost versus last year, actually -- versus last interim period. Last year, actually, we dropped a little bit because we've got some development completed during the first half. And hopefully, in the second half, I think we'll be having other side talking about the second half as well. So hopefully, by way of this, the construction order will be reduced in the second half as well. So it will be helping in the second half and as well as for the next financial year. And also the impairment loss on the QWB project, which is talking about HKD 204 million. Another share of the impairment loss recognized by the JV property development, which is talking about HKD 217 million. Decrease in fair value of the investment property, talking about $133 million and also the increase of the net foreign exchange loss amounted to approximately $167 million. We have committed to drive forward our property development projects. During the first, we noted the revenue from the sales of property, which is about $3.5 billion, mainly, we've got the handover of our project in Canary London. We started to hand over in May. And also, we've got another project on Holland in Singapore, which is handed over in June as well. So well, that helped a lot on the -- I mean contribute a lot on the sales of property in the first half. Also, we've got some sales of completed inventory Mount Arcadia in Hong Kong and also the Manor Parc in Hong Kong as well. We a place Stage 1 and 2 also contribute part of the revenue to the first half as well. Other than the recorded sales, we also have the presale recorded HKD 3.8 billion for the first half, mainly from the Pavilia Forest, Hong Kong and also the Riverband -- Riverside, which is called the Kingfisher. Kingfisher is talking about 322 rooms, I mean, the apartments. We launched in mid of August. Up to now, we almost sold out, I mean, presold or exchanged about 1/3 already. This is not small than HKD 1.2 billion. Well, this is part of our presale. The cumulative attributable presale and book contracted sales talking about HKD 11.8 billion. Compared with half a year ago, end of March, it's increased -- slightly increased. And hopefully, this 11.8%, most of them actually completed within the coming 12 months. That means the cash flow visibility is foreseeable. Also, we have the existing inventory on hand, which is talking about HKD 4.8 billion as at end of September, in which -- I mean, of which we have almost HKD 900 million presale. So that means we're looking forward to completing this $900 million within -- well, 2, 3 months when the buyer range the document financing in order, right? So it's, again, this part of the expected cash flow or the sales of property in the second half as well. Other than that, well, other than the property development, we noted the recurring income business or having a growth, recurring business means the hotel, car park and gaming. Recurring revenue increased by 2.2% and to approximately HKD 1.6 billion, in which you can see hotel is always our prime contribution. Revenue increased to almost HKD 1 billion, up about 1.1% compared with last interim period. Kai Tak, well, as you can right here, which is our flagship in Hong Kong, soft opening last -- 26th of September. Car park in terms of revenue grow about 6.7% to approximately HKD 380 million. Gaming policy, revenue grew about 1% to about HKD 200 million as well compared with the last financial -- last interim period. Balance sheet, I think we are staying healthily. The adjusted total equity, talking about HKD 33 billion. The net gearing ratio at the end of September talking 68.6 -- 68.8% versus end of March, which is also 68%. So we maintain on this -- on that level. We'll talk about that more details later on in some slides as well. But also on the other hand, we have the offsetting effect of some favorable impact on the foreign exchange translation of our foreign operations. That means term investment in other. So it contributes some positive to our reserve as well. During the first half, we repaid $1.2 billion on the unsecured loan and also we settled construction facility about HKD 1.4 billion, which is mainly on the Henan, like I said, well, we recorded the sales completed as well and also spent in January reward in London. Well, we manage our cash flow and the cash planning progressively. We obtained the content solid station to allow us -- to allow FEC to have the parcel redemption for the perpetual notes. Yes. So in September, we got the flexibility, we've got the consent so that we can -- we are allowed to pay, I mean, core monthly USD 20 million -- yes, that's just a core option for us. So in order that we -- hopefully, we can reduce the debt level, including the perpetual notes as well. But how? We are trying to unlock the value through the asset monetization and strategic long-term planning. Well, in September, we disposed car park in Manchester in U.K. for a consideration of 17 billion -- GBP 17 million. That is one of the example that we are divest our assets -- some of our noncore assets. Also, we've got some other noncore asset or on the core business to sell. We are considering to dispose the long term -- the long lease residential blocks in Baoshan, [indiscernible]. Also, we are considering to unlock a hotel revaluation surplus of about HKD 19 billion. Strategically, we are considering to have some options to raise -- to get back some cash on our investment in BC invest as well. Next page. This is an extract of the financial statement. I'm not going through line by line, but one point I want to highlight is that, well, the revenue drop, 18.7% to $5.1 billion. Hopefully -- well, on the next page, we will demonstrate -- that -- while we show that, well, we've got some project coming up in the second half as well as the next year as well. So it will help our sales recorded in the second half. So hopefully, we can achieve on track as well. So that's giving us the visibility of the cash flow as well as the sales of property. And the finance costs, like I said just now, we dropped about what compared with last interim period, it dropped by about 3.5%. And hopefully, it's like I said, well, as on a way when we are completing the projects, we're reducing the construction loan. So hopefully, the construction -- I mean, the finance part will be reduced as well. Impairment loss, well, some IP loss, this is a noncash item. And dividend per share for the interim period talking about HKD 0.01. So this is drop a little bit, but we are considering sustainability -- sustainable dividend -- the raise as well. On Page 8, I think that is one of the important slides to show that our strong property development pipeline in the coming years. As at end of September, we've got the HKD 65.9 billion development pipeline. This is big enough for MDC to develop further like, well, 6, 8 or even 10 years without land replenishment. So I think for the CapEx for the acquisition of land, we are not in a rush. So well, in our portfolio, I think is good enough. Also, we've got the presell unbooked contracted sales to about HKD 11.8 billion. In the second half, you can see on the left hand side of the box, you can see the total GDV of the project like Malaysia, U.K. and Australia talking about HKD 6.8 billion to GDV. As at end of September, we have presold $4.1 billion as well. Hopefully, we can complete this on track within this second half, so that will be a big contribution to our P&L as well as the balance sheet as well. The profit margin, as you can see, the broad margin of the property development dropped from last year, $1.4 billion to -- I mean, last interim period, $1.4 billion to the current interim period, $943 million drop out of about $500 million. This is not a small amount. That's the main contribution to the drop of the overall gross profit margin, as you can see 2.1%. And then this first half of 1.6%. I think in the first half, we got the -- some of the projects, in particular, in Singapore in U.K., the product margin is slower than the Australian project. The Australian project looked last year mainly -- well, it's quite a lot better in terms of the profit margin. So hopefully, in the second half, as you can see, from the previous page, Page 8. U.K., Australia, that is a relatively high product margin fee in the second half will be bring up the product margin as a whole for the whole year as well. So for Page 10, well, that is also one of the important page. I'll talk about the gearing. The gearing -- well, the total bank loan and notes, we have -- as of end of September, we noted $27.6 billion. It dropped a little bit. To be frank, well, some of the -- well, part of the reason is that we paid down some bank loan and secure or even the construction loan and also we withdraw some bank loan as well. But part of the reason is for the exchange difference, which is talking about $500 million. So because of that, well, the revenue translates to Hong Kong dollar, as we noted this reached to this $77.6 billion. But in fact, it's dropped in particular, if you have a look at the original currency. The net debt resulting well the net gearing ratio talking about 68.8%, almost the same level of end of March as well. For the net leverage ratio, 35.2% half year ago, well, 35% around -- on Page 11, well, this is also one of the very important page, a lot of -- in particular commercial bank asking this. For the current liability, which means we have to pay within a year, both period end, year-end at a similar level, $12 billion. As in detail, we can see the secured loan talking about $3.6 billion. The project loan, which is $3.2 billion. I think that's $3.2 billion when you complete the project will be, in particular, the project loan, the construction will be -- will go away, will reduce. For the unsecured loan, that means the other corporate loans, we particularly roll over refinancing. And last year -- I mean, in the first half, we paid down a little bit. So that's on a downturn. Loans on the repayment schedule, I think that's the payment schedule as per our repayment schedule, yes. So the demand cost, this is academic, $1.9 billion. So as a whole, I think in particular, when we complete our major project and also disposal of our noncore asset offices, hopefully, this current liability will be reduced as well. Next page, we're talking about the liquidity. The available existing liquidity to about $8.8 billion, including the cash position as well as the undrawn facility. CapEx, talking about $1.2 billion, $1.2 billion. And when you have a look at the bottom part of this slide, hotel investment property, they are all under control, and they're mainly on some hotels, which opening soon as well. So -- and to be partially covered by the construction loan as well. So in fact, really -- the net amount of the CapEx is not that big a monthly. If you have a look at our CapEx requirement in the past few years, it's actually dropped quite significant because a lot of our projects are coming into the final stage of our construction. So it's actually opening very soon. Also, we got the assets, hotel assets as well as the unsold inventory, talk about $5.3 billion. That is something that we can sell and then we can get back some cash immediately as well. So for the next part, property development, I would like to show the -- Wendy's recorded video.

Thank you, Boswell. Good morning, everyone. Apologies I can't make it here physically. I will now take you through our property development updates. In this challenging environment, we continue to have 3 strategies. We aim to drive property development, accelerate project completion to enable early revenue recognition, optimize cash flow and strategically reduced debt levels and gearing ratio with robust development pipeline of around HKD 66 billion to support sustainable growth in the next 6 to 8 years. In this half year, property development revenue has recorded HKD 3.5 billion, mainly contributed by Aspen in London, in Consort Place, West Side Place in Melbourne, Manor Parc and Mount Arcadia in Hong Kong and Hyll on Holland in Singapore. Despite a tough market, we managed to record approximately HKD 3.5 billion in new presales and contracted sales during the first half financial year 2025. As of September 30, 2024, we have secured approximately HKD 11.8 billion in presales and contracted sales as our future revenue stream. One of our key revenue contributor is Aspen and Consort Place for this half year. This project is situated in the heart of Canary Wharf and offers a breathtaking and magnificent views of Greenwich and the city landscape of Canary Wharf, a highly experienced project planning team, we were able to secure and build the third tallest residential building in the U.K. and Europe of 65 levels. The development features of 500 apartments with a total expected GDV of HKD 4.4 billion. It has already commenced completion and faces and started the handover process this year in May. A total of 210 units with approximately $1 billion have already been settled in first half financial year 2025. Another HKD 1.3 billion worth of units were secured as presales and are expected to be settled in the second half financial year 2025. To date, approximately $1.5 billion has been settled. The development also includes a 237-room stores hotels expected to open early next year. Another key revenue contributor in Melbourne's West Side Place, we continue with our existing strategy by at least selling our completed inventory. Australia is another key property development revenue contributor. West Side place consists of 4 towers with approximately 3,000 units located within the Ritz-Carlton and Dorsett Melbourne [indiscernible]. The whole development was completed last year and features a total GDP of approximately $10 billion. We have already recorded HKD 8.3 billion cumulative revenue from this project included HKD 800 million revenue in this half year. As of 30th September 2024, there are HKD 2.2 billion remaining inventory, of which we have already secured $522 million as contracted sales and expected to contribute to our revenue in second half financial year 2024. Another example of our execution is actively selling our completed inventory in Hong Kong. Despite the challenging market conditions, our sales and marketing team has pushed through and able to achieve and recognize over USD 800 million for 2 Hong Kong projects, namely Mount Arcadian and Shatin Heights at [indiscernible]. Hyll on Holland in Singapore is another revenue contributor, which we have completed and initiated the handover process in June. With the total attributable GDV of HKD 13.1 billion, we own 80% in this project, 100% units settled. As the project were being recognized over time, we recorded the remaining revenue of approximately HKD 500 million from this project during first half financial year 2025. Now let me update you on our upcoming project completion. In Perth Australia, our development per hub is nearing completion with 314 apartments. All units have presold and the development will be completed starting from December this year in phases, with a total expected GDV of HKD 848 million. This is actually also the first project built by FEC Construction Australia and by utilizing our in-house construction capability, we maintain quality and control costs. We're very proud of our team for delivering this magnificent project on time and under budget. With this significant achievement, we will roll out similar projects across Australia nationally. In fact, this is highly recognized by the government being one of the first affordable housing units within Perth. In Gold Coast Australia, following the completion of Tower One under the Star Residences in financial year 2023, Tower 2 is expected to be completed in February 2025. The development features 5 towers in the heart of Gold Coast world-class integrated resort in which we hold the third stake. The tower 2 consists of 437 units of a total attributable GDV of approximately HKD 567 million, 100% presold. In Brisbane, Australia, Queen's Wharf residence, Halo, which is strategically located on top of our integrated resorts under the $3.4 billion Queen's Wharf project in Brisbane. We hold a 50% stake in the residential component. It comprises 667 apartments with an attributable GDV of HKD 1.6 billion. The apartments are 100% presold and expected to be completed in April 2025. Besides that, we have also soft opened the Queen's Wharf integrated resort in Brisbane on August 29, 2024, this year, in which we own 25% stake. The responses are very positive and well received. We opened our hotel and gaming facilities with premium gaming rooms in field. During the day, I was there in August and September, I touch for few days, I saw a huge line and at one point, people actually had to wait 2 hours to go into a casino, was very tight and there were long lines for slot machines. With the opening of the full-fledge F&B outlets expected by December, Christmas, we would expect to be -- to increase -- and increase and enhance our revenue by driving a lot of more foot traffic within the precinct of the casino. In Manchester, U.K. adding traffic to our pipeline will be delivering over 20,000 new homes. Together with our track record, we are able to complete over 1,000 units cumulatively within the next year. With the change of government in July this year, the Deputy Prime Minister and the Secretary of State for housing communities and local government, Angela Rena, visited our development in Manchester. We shared our ambitious plan for the area and importance of embedding the existing community within that. This is another great testimony to our Manchester team for their dedication. Next is of the term aside situated within Red Bank, also in Manchester, neighborhood to Victoria North development. It features 3 towers comprising approximately 596 units at 38 townhouses. The town houses and Tower B and C are expected to be completed in December 2024, over expected GDV of approximately HKD 2 billion. Tower B comprises 128 affordable housing units and Tower C comprises 193 residential units, together with the town houses, approximately 92% was presold. Tower A is expected to be completed in summer time next year. It cost us of 275 residential units with HKD 1 billion. Again, already presold approximately [ 97% ]. Coming back to Hong Kong and our recent launch, Pavilia Forest in Kai Tak in July, this development situated on top of -- the kind of runway offers beautiful sea views at the Hong Kong landscape. The sites in front of our developments actually under a process of EOI for proposed smart and green transit system in Kai Tak. It is expected that the vertical alignment will be no more than 20 minutes, meaning hence, our development above the time flow will be able to enjoy the beautiful Victoria Harbour sea view for a period of time. Our development costs of 1,300 apartments with a total GDV of approximately HKD 12 billion, in which we own a 50% stake. We have presold 60% units launched as of 30 September 2024, GDV of HKD 2.3 billion and have already presold 65% of unit launch to date with a GDV of HD 3.4 billion. The development is expected to be completed in first half financial year 2026. Another recent launch in Manchester Red Ban Riverside is another development within the Red Bank neighborhood and adjacent to Victoria Riverside, the development consists of 7 buildings. We launched one of the towers, Falcon in March with 189 units with a GDV of HKD 689 million has been well received. Great response, 159 units presold are reserved within the first 3 months. The remaining units will be launched upon on completion of a higher price. In August 2024, we launched the Tower Kingfisher with 322 units at the GDV of 102 billion. We've already presold and reserved over 60% of units launched to date. In Melbourne, we are expected to launch mixed-use development projects, 640 Bourke Street in January 2025. 640 Bourke Street is actually located in the CBD of Melbourne, which is right adjacent to our West Side Place, Ritz-Carlton, Dorsett and also, of course, our [indiscernible] development. They will consist of 17 levels with 608 apartment units. The total expected GDV for these projects is around HKD 4.3 billion, is expected to be completed in financial year 2029. Overall, we are very confident that our strategic focus will continue to drive sustainable growth and sustain -- and stability for FEC in the years to come with over HKD 65.9 billion in development pipeline. As we continue to drive early project completion, it is expected to significantly aid in debt reduction. Thank you all for your time and attention. We look forward to sharing more success with you in the near future. Now I'll pass the hotel operations review to Winnie. Thank you.

Thank you. Sorry, just want to do some housekeeping is -- how many -- I just wanted to get a gauge how many of you all joining us on the hotel tour as well as the Kai Tak stadium tour. Oh, wow. Great. That's excellent. Okay, great. So I just want to -- I wanted to see -- because I know that we're a little bit overrun already, and I do want you guys to see the amazing project. And so I'll keep it brief. But feel free to ask any questions at any time. I came -- actually thank you for coming because I see a few of you have actually been coming since like 2010, and just really full of gratitude when I look at this. So back to the hotel performance. I think the hotel performance, we're doing despite the interest rate, I think we're doing quite okay. In terms of the growth, we have cycle of 1.1%. Hong Kong is the main part of our hotel. And we are aligned with the market. The market is around just under 80%. So I think that's -- at the end we also part of a macro. So I think this year, 2 countries came up quite strong, and I remain to see that they will continue to contribute more. One is Malaysia and one is -- in terms of the growth, one is Malaysia and one is Australia. And in terms of the occupancy growth, you can see and as well as the rate. I do remain very bullish about Malaysia because it's really -- if you do have family, I highly recommend you go there for holidays. I mean, it's very good value with -- in case just good value, good food, everything. And with the opening up of China took aside, I foresee that a lot of people will go there because you can see a lot -- as a company, so many people -- like they're more and more of our colleagues like to work from home. So you will have to have more off-sites. So imagine if you have more off sites, we will also look at costs, right, given such interest rate environment. So Malaysia is a great choice. And I can already see some of -- some outbound from China going to Malaysia. I will not go into details of the numbers because it's self-explanatory, but feel free to ask me whenever. In terms of the revenue, the first half is $980 million. And I was just joking with one of the colleagues -- one of the bankers here when we just started, we were at $800 million for full year. So in the last decade, we really grew from -- like it's really -- I want to thank my team. And as to Boswell's point about the growth of our hotel renovation, we also grew from $11 billion just about a decade ago to now $29.8 billion. What I also -- what I want to highlight here is that yes, we've been a good contributor for recurring income for FEC. But aside from that, the valuation is also quite monetizable. In the past -- since I think I'm in a position, we've sold about -- we've sold 5 hotels. And it's actually -- and every time almost, we doubled the one in algae that we've sold most recently, we sold during COVID, we almost kind of -- if you look at it. So I think in total, we've generated the sales proceed of $13.3 billion in terms -- when it comes to when we dispose our hotel assets. So that's really something I want to share with you all. Does anyone want me to go through more in terms of geographical location because I'm happy to. I just don't -- any questions? All right. So I'm excited -- I'm so happy to be receiving all of you here. It's been the most exciting journey for the group. I don't know how we got so lucky. We're the only hotel in the host proximity. And with co play with the announce, we almost have not enough rooms to sell. So what I want to highlight is that Hotel is a real -- like a property as an asset in is a hard asset. But I'd like to also think ancillary income because as you cannot sell your room twice one night, right? But there are packages that you can do that can actually increase the ancillary income. And I've seen that from our group in the co-play to package everything. So look, I will -- so we will talk more when we walk around. This is what I love most and because in the hotel industry, honestly, it's not easy to find people right now. And actually, and where we are, it's a kind of [indiscernible] It's like a -- there are about 20,000 subdivided house -- houses. People who live in subdivided houses around this area. So before we open, I was so happy, I actually went to visit them, and we managed to do a recruitment day, and we hired 70 of them to join us with no experience, but we are now doing a joint program together with BTC because I believe Dorsett is invested in positive impact. And that means that even if you were met for a short time, I want to add value. I want you to have a -- but if could you tens how much -- Yes, I want you to be certified. So you can actually move, go to work somewhere else to other hotels. I want to be part of that. So I'm happy to announce it's not here yet that we're doing a joint program with BTC. So it will be on the job training and they will be certified. Park -- Oh, yes. This, I think, will be music to the ears of investors. With such interest rate environment, I just think that every company has to be resilient and to be resilient. The most important is to keep on pivoting. I'm happy to announce that we have -- I think an AGM, I already gave a sneak preview that we are looking for partners. And we've managed to do our first project with TPG Angelo Gordon. We bought a hotel in Singapore, as you call it Changi Airport Hotel, and it subsequently now be rebranded as Dorsett hotel. What's interesting about this deal is that we're only putting in 10% equity. And we then -- then -- it's our first step into an asset-light model. So we're putting 10% equity. We also -- then we also charge fee for project management and we get management fee. But also most importantly, we also managed to negotiate ourselves share on upside when they exit because all funds look for exit as well. And I do believe -- and I'm very confident with our track record that we do add value when we exit. For this hotel itself, we will be adding 80 rooms and a lot of you may know that hotels are valued by how much per key. So that's already something. So again, feel free to talk to me more, share with me your thoughts when we're walking around later. Yes, the pipeline is self-explanatory. We have a few hotels coming up, namely in London. I mean, in U.K. as well as in Australia. Australia, most of our projects are really -- we're like owners wrap because most of our projects are joint venture together with the [ Brisbane ] -- like with the gaming company. So it's more like owners retro, but yes, there will be a few hotels coming up there. Yes. I think that's, again, also quite self explanatory. With on this, I will pass it to Boswell to talk more about our...

I need to accelerate the timing because of the, [indiscernible]. Car park, we noted well, again, while the revenue growth, 6.7% and during the first half, we saw that -- we sold one of the car park in Manchester talking about GBP 17 million. And for the whole portfolio, I think, again, this is also the one of our asset-light business model for car park. We're managing about 116,000 car park base, in which about 90% actually mainly for the third-party asset. So this is quite a management company. So for the gaming policy, we spend it up end of March this year. And now we evil hold about 72% after the overall allotment option in April. And this business, we actually are looking at quite recurring income as well. Soft opening of the casino in the Queen's Wharf, Brisbane, we actually investor. We are not the operator. So we own 25% and the beauty of this casino or the joint venture is that we have the 99 years, the gaming license. And also, we've got 3 hotels. Star Grand has been open on 29th of August. And hopefully, another dote including tons that we'll be owning soon as well. So for the PC, I think this is obviously one of our noncore business. We own 53% shares of this company and the AUM reached about AUD 6.1 billion. Outlook, I think when we go through our presentation just now, I think we -- well, most of them actually we touched on already. The balance sheet management, we continue to reduce the debt level as well as the GAAP finance cost. And hopefully, the interest rate is coming down as well. So focus on the monetizing and completing or accelerating the completion of our existing property development, that's have a lot on the cash flow as well as the mine as well. Other than the core business, of course, noncore asset and noncore business, like I said, we are targeting to sell as well. And hopefully, we can pay down the debt level as well as the perpetual notes. So for the property development business, again, well, we have got the unbooked presale, talking about $11.8 billion as -- at end of September, in which -- I mean -- and also we've got the $65 billion property development pipeline, which is picking up for us. I don't see any urgent to raise for the land replenishment, hopefully, because of that and because of the diversified portfolio, we are focusing on reducing the debt level as well as saving a lot of the finance books. Launch -- like what Wendy just mentioned, but we are launching hopefully in the first Q next year. This is not a small amount. I mean this is not a small project, 600-plus units talking about HKD 4.3 billion in terms of the GDV. Also next phase, we talk real North master plan in Manchester as well as selling some existing stock as well. Hotel, I think [indiscernible] talked about that very detailed as well. Car park and gaming, I think we touched on already as well. So for the ESG, I think you can look at the pages. So that's all the details you can find. And Page 44 is talking about the awards that we have so that's demonstrated in the market that will DCs from the ESG from the different -- for example, the corporate governance perspective, we are recognized in the market. And that's just the presentation.

[Operator Instructions]

I think we skipped through the ESG bit, but I do believe -- is believing. Actually, today, I've been -- the tea that all we have got is a project that we're doing with BTC, we've donated a piece of land from my grandfather Day in Sicone to BTC to do research for Chinese medicine and really invested in positive impact, means we start, although we look at our own budget, maybe it's small. By the way, we donated the right of the land not that land itself for 5 years and get the money fund from government. But -- so that tea is actually Chinese hub. So on the land itself already have 20 types of Chinese herbs. So that's why I call D20D, being my grandfather's name Deacon. The one that you guys are having actually is from Citi super. So it hasn't got the -- the name is actually called [indiscernible], which is my grandfather's name. But what is interesting is that not just now we're doing research, all Hong Kong company, by the way, we're producing it. And quite a lot of -- oh, yes, quite a lot of corporates do get it for their gifts. A few banks has ordered. All proceeds go to BTC. And it's not bad. Actually, my sustainability colleagues has pushed it even further to make it sparkling tea because youngsters like sparkling tea now.

I like it as well.

But all made in Hong Kong. Oh, sure. Yes. Any questions from the phone? Sorry, sustainability -- and also, I'm talking to the investors, too. So -- and also when we go out, you'll see another project that is also very close to my heart is -- again, another project with BTC. We have built a co-creation lab within the BTC because in my other titles, I do sit on a lease fund as well as Lenovo as GP -- or investment committee or whatnot. So we built a lab there. But lab is a hardware, but we also have seed funding, we're talking about HKD 50,000 do seed funding. And the young people to actually entrepreneurship because I truly believe in tech app. And it's really so humbling the experience as I had when I was there to be a judge because BTC, 80% of our students. First, BTC is in university combined, the number of students. And second, 80% of our students need financial funding and their average salary of their parent is HKD 20,000. So household income. So we must help. And I'm so happy that it's been testing correction maybe 4 years, 4, 5 years ago, we launched this. And a few of our company has actually gone to science part and got a few millions. And I'm so proud of them. And there Really what you see, a few of the projects is really designed for Hong Kong as in there are social public that we do not know and the tire. There's -- one time, there was one of our students. I didn't even know. So because we have such high longevity, in Hong Kong for both men and women, now we're #1 in the world. We also have the issues that come with it. So that means that a lot of Hong Kong sitting in the bus stop, they missed the bus taking up time in terms of the cans clearly here. So it's simply by designing something that will pace our #10 buses coming something like that. But it's -- these are problems that I would love to know about alternatively and I want talk about the whole top and that's why I'm not this initiative. And I do urge feel free to join me in any capacity on scene [indiscernible] if you're all I have become and mentor these kids or you're all very successful people or even be the judge for us every -- would make me so happy. Sorry, I got overwhelmed.

Any questions from the floor, please. And any questions from the online.

[Foreign Language]

[Foreign Language]

Boswell, you brought up a very good point. I think it's a commitment we have with our investors. [Foreign Language] That for me is as well. Okay. On this note, let's do more exciting things. Let's walk around and...

Thank you. This is the end of our investor presentation. Thanks again for joining.

Thank you.

Thank you.