Welcome, ladies and gentlemen, to New World Group's FY 2019 group results announcement analyst meeting. You all know me, I am Aldous, General Manager of Strategy and Investor Relations. We have Mr. Adrian Cheng, Executive Vice-chairman and General Manager. Next to me we have Mr. T.C. Au, Executive Director and CFO. And Mr. Jim Lam, Director of Finance and Accounts. Then we also have Mr. Kwan Tam, General Manager of Strategic Planning and Capital Markets. Now I will pass the floor to Adrian to go through our annual results.
Welcome, ladies and gentlemen. Perhaps let's jump to the figures. This year, you know that our revenue was HKD 76.8 billion, up 26%. This benefits from the excellent performance of our property operation segment results, HKD 20 billion, up 26%. This is because of an increase in contribution from property development. For investment properties, the change in fair value benefited from the completion of Victoria Dockside and EPS. Our basic underlying profit, HKD 8.8 billion, up 10%. Core profit per share, HKD 0.86, up 8%.
Net gearing ratio 32.1%, up 2.8 percentage points. We are going to distribute HKD 0.37 of dividend for the year end up 8.8% year-on-year, together with interim dividend of HKD 0.14 . For the whole year, dividend is HKD 0.51 per share, up 6.3%. We concentrated on enhancing our efficiency. We focus on property investment and property development. These are our two core business engines, together with our subsidiaries in roads, aircraft leasing, and construction. These are our core businesses, so we are able to achieve sustainable development.
As regards regional layouts, we are in Hong Kong and Greater Bay Area, especially Guangzhou and Shenzhen are our main hubs for our business development. We are a leading player in GBA. Besides, in terms of IPDP, they are our twin engines for driving our growth. These are our future development directions. Besides, we have got an ecosystem. We always talk about that and that is we combine both hardware and software. For software, we have Humansa. Then we have healthcare, like we have insurance as well.
These are software. Of course, we have many brands, K11, and we have also education brands. Investment highlights. This time I want to tell you the reason why we are investing in New World, or we should invest in New World. There are seven highlights. First, proven underlying profit track record, delivering consistent DPS growth. Number two, we have more and more investment properties in Hong Kong and China, and our asset quality keeps on improving.
In the future, we have more and more investment properties and income deriving from that. Property development and property investment will achieve a balance. In 2024, 2025, we still have enough land bank and enough investment properties to support our dual engine growth. Besides, we have abundant saleable resources. In relation to property development, these are resources for us, and we have significant sales revenue to be recognized.
Number four, we have a unique position and development strategy in the GBA and also cross-industry synergy. Of course, our ecosystem is focusing on GBA Hong Kong plus Guangzhou and Shenzhen and so on. This is very unique and it is our big advantage. It is also a good point of balance. We just said that we have double growth engines. That's a balance. In terms of regional layouts, we also have a balance.
Hong Kong together with the whole GBA, mean that we will be bigger. In other words, we are not radiating towards 7 million people, but 77 million people. In other words, our whole market is bigger and broader. Number five, we have a history of 50 years already. Of course, during these 50 years, we need to evolve and there are some non-core businesses that are not appropriate to be included in our core business.
That is why they have to be disposed of. This year, we just made an announcement about Changsha subsidiaries or New World Development or New World China for the whole group. We are disposing of non-core properties. That is a big direction for us. Number six, prudent and proactive financial management with strong execution and we have good management team. In the past few years, there was strong improvement and enhancement. There are new people joining us, so we are in a better financial position. Number seven, recurring contribution from NWS with growth potential. They are contribution from our subsidiaries. Okay, I have spoken too much. Over to you, please.
Okay. Underlying profits. In the past few years, we have been reforming ourselves, so underlying profit is rising. In the past, we relied on property sale in China and Hong Kong. With completion of new investment properties, our recurrent cash flow, and that is our rental income, will grow steadily. Together with our property sale, these are two growth engines driving our performance. Dividend. We attach importance to return to shareholders and we understand shareholders' expectations. In relation to dividend, when our business is good, we will, of course, pay back to shareholders accordingly.
When there is an increase in operating profit for our investment properties, we can then distribute better dividend to shareholders. For FY 2019, our final dividend is HKD 0.37, up 8.8% year-on-year, together with HKD 0.14 of interim dividend. For the whole year, our dividend is HKD 0.51. Looking at the current share price, the dividend ratio is already in excess of 5%. Just now, we talked about our recurring profits and rental income. They will rise quite a lot. From this chart, you can see very clearly that in the coming five to six years, there are some new investment properties that will be completed.
We exceed 2 million square feet of GFA in investment properties. In the coming few years, this will increase by more than three times to almost 10 million square feet. For our new investment properties, they are mainly Victoria Dockside, which will be in full use, and then on King's Road, that is the office in North Point. West Kowloon, King Lam Street, and then Kai Tak, 600,000 sq ft, that is the retail portion. Then Sky City, which is huge.
The flagship GFA for core investment properties in Hong Kong will increase more than three times. Our asset is very good in quality. Our asset value will also see upside from now. In relation to Mainland China, in terms of K11, under the K11 brand, the leasable GFA will increase a lot. Right now, we are less than 200,000 sq m in GFA. In the coming five years, this number will increase by more than six times. As you know, K11 is a development core in Mainland China in terms of investment properties.
With our very unique operating philosophy, we can attract business and also customer segments, especially the millennials. In 2025, we expect that there will be more than 1.3 million square meters of GFA of leasable area in China. At that time, there will be more than 20 projects under K11 that will be in operation. For Hong Kong and China, if you look at our income from investment properties, we have planned all the way to 2026. That is, we are looking at a five-year plan.
For recurrent income and return from investment properties, we are not looking at the coming one to two years. We want to look further ahead. That will also tie in with our property development business to strike a balance. We will continue to do this. Saleable resources. As of September 15th, there are altogether 365 units to be sold, and attributable value amounted to HKD 6 billion. In 2020, that is next year, we will launch the residential project in Tai Wai Station, and there are more than 3,000 units that will be launched in phases.
Besides, in West Kowloon, Cheung Shun Street, there is an office with GFA of 520,000 sq ft, which will be launched in 2020. You can see that sale is quite fast. So right now, when it comes to vacancy tax, that only causes very minimal impact on our group. China. In FY 2019, completion, GFA completed was 660,000 sq m. 85% was residential, mainly in Guangzhou and Shenyang. In FY 2020, we expect that this number will increase 38%. So GFA completed will reach 910,000 sq m. The main area of completion will be Ningbo and Shenyang.
Unrecognized sales revenue, that is, the property units are sold. But in FY 2019, the revenue is still not recognized yet. For that part, in Hong Kong, HKD 11.2 billion, and there is HKD 4 billion that will be recognized in FY 2020, and HKD 6 billion will be recognized in FY 2021. China. Unrecognized revenue in China amounted to HKD 3.6 billion, and most of it, around HKD 3.2 billion, will be recognized in FY 2020. The remaining HKD 340 million will be recognized in FY 2021. We attach a lot of importance to our plan in GBA.
As we all know, GBA is the fourth bay area in the world, and the population is not only 7 million, but it is 77 million. So the service sector only has a smaller share, relatively. So in the coming few years, GDP from service sector will increase significantly in GBA. We are going to use the New World ecosystem to capture these opportunities. People may not know the full potential of GBA. For population of GBA accounts for 5% of China's. GDP accounts for 12%-13% of China's total GBA, while this is really significant.
For the service sector, it only accounts for 60% of the total. For Tokyo and San Francisco Bay Area, they have 80% of GDP in service area. In other words, there is still a lot of upside. When it comes to real estate with value and also service industries, they can develop gradually in GBA. Besides, there are 1 million high net worth individuals. 1 million is a big number. So in terms of the service sector, they will buy properties. Property prices rose a lot in Shenzhen and Guangzhou. Why? Because demand is really huge.
Besides, there is a lot of outside population, 70% are young, 25- 45 years old. The post-80s population is very big, 60%, 70%. These young people need to buy properties or upgrade their properties. In some areas, their per capita disposable income is already higher than that in Shanghai. We are concentrating more on Shenzhen and Guangzhou. Later on, I will elaborate more on Guangzhou. If you look at our strategy, starting from 2016, we had bought 1.5 million square meters of land, and we have got nine city complexes and the development right of nine old city redevelopment projects.
If you look at these circles, there will be completion in 2021, 2022, 2023, 2024. We acquired land in 2016 when the land price was the lowest. In 2021, 2022, 2023, 2024, there would be a lot of completion. In the future, how are we going to acquire land? You can see here, old city redevelopment. In Guangzhou, this is very important. We have already got three village approvals. In other words, the villagers had already voted, and we can work with them, and we have got three such sites. In the future, there will be two to three more sites.
These sites will be included in the land bank in FY 2022, FY 2023 because it takes time for villagers to vote and for reprovisioning, resettlement and so on. In 2018, together with Luohu government, we signed a Man Kam To Strategic Cooperation Agreement. At the boundary along Man Kam To, there would be a large scale development, but there is not a timetable yet. Here you can see some timetables for some of the projects. In 2021, 2022, 2023, 2024, profits can be booked.
In 2022, 2023, there will be new land bank coming in because there would be size coming up from old city redevelopment. From the point when profit is booked, in 2022, 2023, there would be additional land reserve. In 2023, 2024, 2025, there would be contracted sale. After that, you can book the profit. From now, in the coming five to six years, every year there are properties to sell and every year there is profit to be booked. Okay. I have given you this timetable for the coming five to six years so you can see when units can be completed, when profits can be booked, and when land can be acquired and so on. You can see the whole picture. Non-core assets.
As Adrian said earlier, we have a history of 50 years and of course, there are a lot of areas where we can restructure or reorganize. For FY 2019, we had already dealt with or disposed of HKD 3.6 billion of non-core assets. They include property projects and also business under NWS. In the past three months, we had disposed of HKD 3 billion non-core assets, which include the Changsha La Ville New World Project and also the remaining equity in the Beijing Capital International Airport, altogether HKD 3 billion. In the coming few years, we have identified some non-core assets that we are going to sell.
The total amounts will exceed HKD 20 billion. This year, as such as now, while we have already disposed of HKD 3 billion, for the whole year, we hope to dispose of HKD 7 billion-HKD 8 billion. Financial condition. As of the end of FY 2019, we have cash of HKD 63.7 billion. Our net liabilities is HKD 88.3 billion, and the leveraging ratio is 32.1%. Fixed interest rates debt, 38%, variable interest rates debt, 62%. Most of our debts are in Hong Kong dollar and U.S. dollar.
Our policy is that in the foreseeable future, around 30%-40% of our liabilities would be fixed interest rate debts. In the foreseeable future, we will not issue new shares. There is not the need. Our leveraging ratio target is 40%, roughly. This has not changed. Average interest rate last year, 3.65%. Apart from New World Development, New World China, actually, there are also some of the core businesses under NWS. They include roads, aircraft leasing, and construction. For these three businesses, they account for 75% of AOP of NWS, so they are strategically very important.
In order to increase contribution from core business, NWS is going to be innovative and use its own ability and financing capability to acquire some projects. One project that is going to be acquired is Fubon Insurance. We are waiting for approval from Hong Kong regulator. Okay. That's all for now. Perhaps we can take questions.