MTR Corporation (00066) Property and International Business Director Eddie Tang stated that due to the sluggish Hong Kong retail market and changing consumption patterns, tenants need to face reality and actively adapt to the new normal. MTR will focus on consolidating its food and beverage sector in the future, with all shopping malls currently achieving 100% occupancy rates. Additionally, the group will prioritize the launch of the Tuen Mun A16 site project, followed by the Tung Chung project as the second development.

In recent years, Hong Kong's overall retail sales have continued to decline, and MTR's shopping mall rental income has also recorded single-digit declines. Tang pointed out that under the new consumption normal, entertainment, general retail, and local attraction consumption have all been affected to varying degrees. This new consumption pattern may become a long-term trend, requiring tenants to actively respond and adapt to changes.

To adapt to the new normal, MTR is actively adjusting its strategy by regularly eliminating unpopular merchants and introducing new brands to enrich customer choices and meet consumption demands. With seamless connections to the railway system and stable customer flow from residential developments above the shopping centers, MTR shopping malls maintain steady foot traffic, with all malls achieving 100% occupancy rates.

Tang emphasized that food and beverage is an important pillar of MTR shopping malls, as Hong Kong people dine out frequently, making the F&B sector performance robust. The group will further defend its food and beverage business in the future. The proportion of F&B in its shopping malls has increased from approximately 20% in the past to 30%, with the ratio expected to continue rising.

Regarding the property market, he noted that recent property market transactions and sales volumes have increased, reflecting a recovery trend in the market. MTR will actively study market demand and launch two new projects in the future. He indicated that the group will prioritize the launch of the Tuen Mun A16 site project, covering an area of 4 million square feet. He also revealed that the first phase of land put up for tender covers several hundred thousand square feet with over a thousand units. The land covers only residential development and will not involve shopping mall components. The second project to be launched will be the Tung Chung project.

However, he emphasized that market conditions are constantly changing, so the group is also continuously adjusting its sales deployment, and future plans may also change accordingly.