Good morning, one and all. W elcome to EZTEC presentation for the first quarter of 2022. Please note that this call is being recorded and that all participants are in listen-only mode. By the end of this presentation, we will begin a Q&A session when further instructions will be given. In case any of you may need any assistance over the call, please let us know through the chat box. In case you have any connection issues, you may reuse the same web link or ID to return to the presentation. You may find that link and ID as well as the slides for this presentation at our website ir.eztec.com.br. Before we start, we'd like to mention that any statements during this call pertaining to EZTEC business projections, operational and financial targets are based on management's beliefs and premises as well as on currently available information.
Forward-looking statements do not constitute an assurance of performance. They involve risks, uncertainties and assumptions. Investors may take into account that general economic conditions, industry and operational circumstances may ultimately affect EZTEC future performance. They may cause the company's results to differ materially from those expressing those forward statements. I would like to introduce myself. I am Pedro Tadeu, investor relations coordinator, and here with me I have Emílio Fugazza, our CFO and IR Officer of EZTEC. Let's start going to the slide number 3, where we talk about the launches of the first quarter of 2022. The total amount of PSV that we launched is exposed in the screen, something close to BRL 500 million.
That's because we launched two big projects, that is Exalt, Expression, both of them located in Vila Clementino neighborhood, and they are very well sold. The first one, Exalt, that you can see in the left of the screen is already 43% sold, and on the other hand Expression is 51% sold. Both of them were launched in February. Along with those launches, we acquired a stake acquisition of Vila Nova Fazendinha. That is a low-end kind of product that we are attached with BP8. A casual partner from EZTEC that we have other previous launches that we have made together. Moving to the slide number 4, then we'll be able to see our operational performance.
Starting on the left where we can see a chart that is pointing to our launches and sales and how those launches are being performed. As you can see, we were able to sell BRL 86 million from our launches of 2020-2022. The majority of our main launches here are the ones that we have made in 2020-2021 that you can see we are only BRL 442 million sold. That's why you have been able to see in our release from 2021 an increment in our inventory and we're gonna talk then further in this presentation. Gross sales for this quarter ended at BRL 351 million.
I would like to highlight the performance of our ready units sales of units that are performing because they increased significantly when compared to the amount that we had sold in the fourth quarter of 2021. Still in the right part of the slide, we're going to show cancellations. You will see it's easy to see that our cancellations are now at BRL 480 million, and it sounds that's incremented significantly when we compare to the 33 million BRL that is in average present in our previous year.
Despite this increment, I would like to highlight that the majority of these cancellations are indeed downgrades or separations of units for large units or smaller units or other products inside the company. That's why you don't see any effects directly on our financial results attached for this BRL 48 million in that cancellation. There is a result of net sales that we reached at BRL 303 million in this first quarter. Moving to the next slide, I would like to present to you our next and future launches. Those three launches that you can see on the screen are those launches that we are indeed able to see a feasibility to launch in the next months of this year. To begin, we will start Unique Green Tourmaline phase.
This is the second part of the first phase that we launched in the last quarter of 2021. Moving to Heart Brooklyn and House Brooklyn, you can see that they are in the same land bank. Let's call it Silva Horto, so they will be at the same PSV, and the same launches. The same effect that you can see in our House and Expression launches that we have made in the first quarter of this year. Those are towers of small living standard units and high-end units that are 100% EZTEC, and which you can see with our next launches, we are aiming to achieve something close to BRL 800 million in terms of future PSV.
Going forward to the slide number 6, I would like to show you the composition of the land bank of the company. We do not acquire any huge land plot during this quarter. The variation that you can see coming from BRL 11 billion to almost BRL 11 billion in this first quarter is mainly attributed by the launches that we have made and changes in projects in our land bank. With this almost BRL 1 billion, we have some projects that are already with deals and contracts signed with escalation clauses, and we put all this together, it's almost BRL 13.5 billion land bank for the company.
This land bank in the bottom on the left, you'll be able to see how it's being distributed across the standards inside the company. 7.2 billion reais is accounted for projects in standards that we are branded with EZTEC label. 2.7 attached to Fit Casa, our low-end economic brand, and 3.6 attached to EZ Inc, our commercial vehicle for the company. This land is well located and spread across São Paulo City, but it is mainly focused on the south zone of São Paulo. Moving to the slide number 7, you'll be able to see the composition and variation inside of inventory map. You'll be able to see that now we are carrying BRL 2.4 million.
At the beginning, I would like to draw your attention to the chart that is in the corner at your right, inventory evolution. You'll be able to see that we reported BRL 2.8 billion in the fourth quarter of 2021. Now with the launches that increment this amount and the sales that we have done, the consolidation. Here is the thing that I would like to point it to you that is the suspension of the sales from our previous product, EZ Infinity. The EZ Infinity is that high-end tower that we launched in the last year in Paraíso neighborhood.
We are suspending those units from our inventory, and then further, maybe this year or the next year, we'll be relaunching or repositioning those sales again to be able to be pushed for our clients. Though, you'll be able to see that this changing of maybe our BRL 2.8 billion now arrive at BRL 2.4 billion in this first quarter. This BRL 2.4 billion you can see in the inventory regional distribution, and this is like, it's well distributed. The majority of it is in the south zone of São Paulo. This is a very huge and attractive part of São Paulo neighborhood. Only 15% of this inventory is attached to residential-ready units.
You can see in this chart above, below it, that the residential units is only 579 of it is ready in terms of residential units that we carry in our inventory. Now, I would like to pass to Mr. Emílio Fugazza, then he will be able to talk more about the financial performance of the company.
Thank you very much, Pedro. Financial performance is slide number 8, net revenues. Let's start with the information that we got BRL 287 million in 1Q 2022. An increment of 63% over 1Q 2021. Mainly because of much more completion of construction this quarter. Something around 25% more comparing to the previous quarters. Apart from this fact, using information of the launches and a very good performance of Exalt and Expression in Vila Clementino, south zone of São Paulo, we have already recognized this project in our results in this 1Q. That's important.
Apart from this fact, let me just remind you that all the impacts mentioned by Pedro regarding the suspension of sales of EZ Infinity are fully impacted this first Q results. Talking about gross profit, the gross profit now, the cost of implementing that revenues was BRL 130 million compared to a gross margin of 39.3%. There was an oscillation about the gross margin dropping from 44% in the fourth quarter in the last quarter, mainly because we got in this result the cancellation of the four units sold of EZ Infinity and much more than that the incremental cost above the INCC regularly in the last six quarters.
It's important to bear in mind that if I were talking about an average increment over INCC, it would be something around 50% in the last six quarters or 18 months. Apart from the fact that the company is trying to protect itself buying materials, buying equipment in advance upon the use of those in our construction in order to keep the budgets under control. Regularly increasing above INCC is the kind of thing that is a huge effort to manage and to keep the margins in a very healthy and steady level.
Talking about selling and G&A expenses, as you can see, more net revenues means that the dilution of those over net revenues are very good this quarter. 4% over gross sales in terms of selling expenses, meaning that the volume of expenses are pretty much the same compared to the average four quarters of the last year. For G&A expenses, BRL 29 million is pretty much the same we have been carrying in those quarters. Only to bear in mind, if you go deeply in our earnings release, you're gonna see all the expenses related to payrolls. You're gonna see an increment less than the IPCA, the regular index to provide incremental salaries here in Brazil.
Talking about again financial performance and financial results on slide 9. I would like to start talking about those BRL 41 million of financial results, which means that two-thirds of these amounts is regarding the provided by our receivables that we are financing to our clients. This is actually part of its business model. The idea of providing financing to our clients over 20 years, charging something around 10%-12%, plus IGP, plus IPCA, which are regular indexes for inflation here in Brazil. In the last 2 months, we started a campaign, a huge campaign in order to try to attract new clients to buy or to hold in our portfolio.
We have attracted so far 50 clients offering something around 8%-10% plus IGP and plus IPCA. One third of these financial results is provided by the increment of the base interest rate in Brazil as we are carrying something around BRL 800 million of cash. This is majoritarily compensated by 100% of this base interest rate, meaning that with an increment of 12.75% yearly as we have been living now, in fact, a lot providing more than BRL 100 million in a full year of financial results regarding our cash position. Equity income on top, right, you can see the projects that we are providing.
We are doing the construction or we are launching the projects in partnerships. One very interesting example is the project Reserva Botafogo. Reserva Botafogo is a project under construction in the city of São Francisco, metropolitan region of São Paulo. It's a project of over BRL 700 million of our units, and it's a project going further in the right scheduling, the right budgets, and the right quality. This is one example. Another example is Pinheirinhos. Pinheirinhos is a low-end project, over 1,400 units, to be delivered by the end of this year. First phase by the end of this year, on the right schedule, on the right budget. That's important to mention.
The third project is Signature by Zaffari, a high-end project in the south of São Paulo, Aclimação neighborhood. All in all, providing BRL 21 million of results coming from equity income from these projects. Finally, net income. Net income is about 105%, BRL 105 million. An increment of more than 30% for a net margin of 36%. Let me remind you that, regarding financial results and net equity income, we can offset the SG&A expenses for the company, providing a net margin very close to the gross margin for this company. Let me mention, after all, the results to be recognized, BRL 328 million for a backlog margin of 40%.
40% is a proxy of the backlog for EZTEC. Let me remind you that this drop of 2% from the fourth quarter or 5% from the first Q, 2021, is mainly the impact of these adjustments in costs or these regular adjustments of costs coming over the INCC quarter-over-quarter. Page 10. Portfolio of the receivables provided by which EZTEC is providing the financing to our clients. We ended the first quarter pretty much the same as we started the quarter of about BRL 382 million.
Let me make sure that this means that we are providing financing to a little bit more than 1,000 people. For this quarter, the origination was something around 20 new contracts and the foreclosure was something about 11 units. The whole year of 2021 was 40 units of foreclosure, which means that we are pretty much in the same path of the last year, despite the fact that the IGP increased much more than 50%, 15% last year.
Meaning that the whole amount of the receivables only in the full year of 2021 increased by something around 25%, and only in the first quarter 2022, something around 5%. Going to slide 11. Slide 11 is the big picture of the shareholders' equity of this company. Which means that the total amount we got up to 2021 was BRL 4.3 billion. Adding the results of the first quarter was another BRL 100 million, meaning all in all, very close to BRL 4.5 billion. The breakdown is, you can see on the right side.
The right side means that the assets of our company is mainly cash. Cash means that the cash and equivalent and the finished units receivables all in it's about BRL 1.3 billion, pretty much one third of the total amount of shareholders equity of this company. Land bank. When Pedro mentioned that the land bank of this company is about BRL 11 billion, the cost booking in our shareholders equity is about BRL 1.2 billion or BRL 1.1 billion, meaning something around 26% of our equity. Let me remind you that this, on average, the amount of land bank we bought we bought between 2015, 2019, even 2020.
Taking into consideration all the inflation we got here in Brazil in the last 24 months, it's important to bear in mind that the value of this land bank is following suit the inflation here in Brazil. Which means that we can take from this land bank above 50% of value over the costs, all of the costs we have already paid for it. Units ready to live meaning BRL 255 million, which means that the total amount of potential sales value, something around BRL 500 million, meaning that the gross margin provided by this line is about 50%.
Finally, inventory under construction means that even EZ Towers is within this number. Something around BRL 400 million-BRL 500 million we have already spent for EZ Towers. EZ Towers is the triple A project of over 80,000 sq m of leasable area. It's a project under construction that we are doing in order to rent and selling it with a better cap rate in a better economy moment of this country. It's a kind of asset that we are doing for a whole cost of around BRL 9,000-BRL 10,000 per square meter expecting to be sold for over BRL 20,000 per sq m, which means a gross margin of pretty much 50%.
Only, let me remind you that the equity per share is about BRL 20 per share because we have already bought 6 million shares of this company. Meaning that when you see the market cap of this company, which is about BRL 16 per share, we are discounted by 20% at least, the value of this company is 0.8% or 80% of the shareholders' equity of EZTEC. Finally, talking about subsequent events, all of those three events are very important to our company and very good decisions for our shareholders.
First of all, interim dividends, which means that all the dividends regarding the 2021 results we have already paid by the end of March, by the end of the first quarter 2021. The board of directors took the decision of this year of paying the dividends like using the same metric of the obliged dividends every single quarter we provide the results. This quarter, the first quarter 2022, we got something around BRL 105 million of net income, which means that we are gonna pay pretty much 25% of this, meaning pretty much BRL 25 million, BRL 0.11 per share. The payment date is gonna be May 5.
I'm sorry, by the end of May, the company shares will be traded ex right to dividends of and including eighteenth of May next to it. Secondly, the share buyback program. So far we bought 6 million shares, and the board of directors yesterday has approved the cancellation of those 6 million shares, meaning that we are making room to buy another 9.5 million shares in this third program of this new phase. Which means to spend something around in the current price, pretty much BRL 150 million of the EZTEC cash, in order to add value to our shareholders. We are gonna start now. Finally, the ventures.
We took the decision to raise money through the debentures, through this debt, the fourth emission of this debt, which means BRL 300 million, in order to protect ourselves, protect the company from this, I would say, awkward environment we have been passing through. This administration has never passed through a moment that there is a pandemic with COVID, the effects after the pandemic. There is a war and the effects after war. There is a huge inflation, an inflation that the IPCA is about 10%, the INCC is over 10%, the IGP is over 15%, and the basic interest rate in Brazil is coming to very close to 13%. We don't know for sure what is gonna happen, and we don't know for sure what is coming.
That's why we took the decision to, I would say, increase liquidity for our company. Given the fact that this company is a company that is paying all in cash, paying all in advance, we are doing our share buyback program, we are paying interim dividends. Doing all of this in order to bring back to our shareholders a very good results means that we have to put ourselves in a position that if something wrong or happens or a good opportunity happens, we have cash enough to take this advantage or to avoid any kind of a struggle for this administration. Saying this, saying that, I would like to open for further questions to our shareholders. Thank you very much, guys.
Thank you, Emilio Fugazza. Now we open the Q&A session.
For those who wish to manifest themselves, we'll request that you use the functionality raise hand. As long as time allows, we will also answer the questions that arrive via chat. If it's not possible to answer them within the time allocated, we request that the follow-up questions be sent in by email to our contact at EZTEC IR. For those who want to manifest, please let us know. Since there are no raised hands appearing for us, I would like to close this conference call. Thank you all for your time. We appreciate you to be here with us in this confirmation results for the first quarter of 2022. Thank you all. Have a nice day. Have a nice weekend.