WHARF REIC (01997) Chairman Ng Tian Hoi stated today (May 12) following the annual general meeting that the performance of its major shopping malls in the first quarter was strong, outperforming the broader Hong Kong market, with the Harbour City mall in Tsim Sha Tsui performing particularly well. Based on preliminary data from the "May Day holiday," the Hong Kong retail market may be beginning to turn a corner. He revealed that during the holiday, business growth for some tenants was "exaggerated," primarily involving high-end consumption sectors such as jewelry. Although market uncertainties persist, including ongoing conflicts in the Middle East, the market has been weak for several years. Coupled with recent positive retail performance trends, if the meeting between the leaders of China and the U.S. this week yields good news, it is believed that some tenants' attitudes will become more positive. He said the retail market has been weak for years; once positive news emerges, tenants may rush to sign leases or accept rent increases. Regarding the more competitive Causeway Bay area, Ng Tian Hoi pointed out that the group's Times Square is the central hub of Causeway Bay. "Regardless, the most congested area in Causeway Bay is Times Square, the most used parking lot in Causeway Bay is Times Square, and the only cross-border bus station in Causeway Bay is at Times Square." Tenants need to attract consumers to spend, and the group will continue to collaborate with them. The May Day holiday also boosted the hotel business. He mentioned that during the holiday, hotels under the group in Central and Tsim Sha Tsui recorded high occupancy rates, with room rates showing single-digit year-on-year growth, and there is believed to be further room for increase. Regarding the redevelopment plan for the Marco Polo Hongkong Hotel, there is no information to disclose at this time. Concerning office space, Ng Tian Hoi candidly stated that Hong Kong's office market remains oversupplied, particularly in Eastern Hong Kong Island, Kowloon East, and Kowloon West. However, it has been noted that financial institution leasing activity is becoming more active; for instance, the establishment of a foreign bank in Central has made office leasing demand in the area more substantial. Additionally, Tsim Sha Tsui is a hotspot for mainland tourists visiting Hong Kong. Over the past two years, tenants from insurance, finance, and private banking sectors have increased their leased space in Harbour City's office towers.