哎，来了不少人嘛，没上那边去啊？不是我听说撞期了吗？你们应该往那边分点嘛，我也没这么大压力了。
没压力。
[Foreign language] Good morning, analysts. Good afternoon, investors, and also these listening into the conference room. Welcome you all to the 2016 interim results investor presentation. Today, we have our Chairman and CEO, Mr. Hao Jianmin. [Foreign language] Deputy CEO, Mr. Xiao Xiao. [Foreign language] Chief Engineering Officer, Mr. Luo Liang, and CFO, Mr. [audio distortion] . First of all, we invite Mr. Hao to report on the interim results of China Overseas Land & Investment Ltd.
Good afternoon, everyone. Those who are present in the conference and those who are listening in to the online result announcement.
I am very happy to have this chance to communicate with you today after the first six months of our results. Today, there are five parts of my presentation. It can be said that what we call in Chinese is the five-year plan. This also coincides with the first phase of the 13th five-year plan in China. For our group, whilst expanding, we have been able to maintain a very healthy financial position, and it is for over a decade and the first time we have realized the net cash. We have also communicated with the market about the deal with CITIC. After that, after the deal completes, we will have further updates with the investors. Five parts of my presentation today. First, on the interim results. Second, on the business review.
Thirdly, I would like to briefly talk to you about the acquisition of property portfolio from CITIC. Fourthly, market outlook, and finally, guidance and outlook of the company. First of all, on the interim results. We've only just issued this around lunchtime. Perhaps some of you had a chance to look at it already or maybe not. Just a brief introduction. For the first six months, we had very good opportunities in the real estate sector, but the competition is getting more fierce. For the group, we actively promoted our business. We have realized revenue of HKD 78.15 billion, an increase of 20.5%. Net profit HKD 19.67 billion, an increase of 20.6%, and we believe our net profit is still at the leading position among our peers.
The board recommended dividend payout of HKD 0.35 and a mega increase of 75% compared to last year's same period. In the future, we will continue to increase the payout ratio in a stable fashion. In this chart, you can see the ROE of the group is still 20%. We have maintained for the past five years the very high level of quality. In the fluctuation of the market, we have been able to maintain our ability to create a value for our shareholders. By end of June, cash on hand, we have HKD 117.97 billion. It is the first time for the past decade that we have realized net cash position and to maintain a very flexible finance of the company. By end of June, we have cash on hand CNY 91% and foreign currency 9%. If you add the unused credit from the banks, that is HKD 9.8 billion.
The total financial resources available is HKD 127.8 billion. If you look at it from the loans, we have corporate bonds, HKD 66.2 billion. Bank loans, HKD 43.2 billion, weighted average borrowing cost 4%. The long-term debt is 87.6%, the debt structure as well as debt repayment is very healthy. In the past year, we have used different strategies and to fully utilize our double platform and multicurrency financing methods. We believe that after acquiring the portfolio from CITIC, the foreign loan percentage will continue to go down, and we will maintain loans denominated in Hong Kong dollars and US dollars for lower than 50%. In this chart, I believe everyone is very concerned about this, and I will briefly talk to you through this chart. Those two charts, it reflects the important financial indicators.
You can see in terms of cost control, profit growth, and shareholder value creation, we have always been at the leading position of our peers. In 2015, the gross margin decreased slightly. In the annual report, annual announcement results, that was also mentioned, and we still try our best to pursue the goal of gross margin at 30%. To be frank, since this is the goal, you can see that the six months gross margin is at 28.2%. A few areas I'd like to elaborate. First, everyone is very concerned about our business, the fundamentals of our business in mainland China, real estate sector. It hasn't changed, and I'm fully confident that we'll be able to maintain 30% gross margin. There are factors contributing to this, and I will talk to you about that later.
In our annual sales, we already have HKD 73 billion pre-sale that has not been included yet, and the unit sale price has already reached RMB 21,000 per square meters. This amount will also be booked into our books, and this is one of the main reasons that I'm fully confident that our business in mainland China will continue to maintain at a high level. Of course, these figures that you're seeing today, I believe you all are experts. Due to certain effects from different regions, that has caused the gross margin to slow down in the first six months of this year. In this chart, you can see this is our financial structure. Our group will continue to be prudent whilst growing our scale, improving profit, and financial gearing.
We will strike a balance between these three factors, and I believe this is also the expectation from the market. Currently, with the healthy financial structure as well as the liquidity, I believe this has laid a solid foundation for the further expansion of the business of the group. Second, I'd like to talk to you through the business review. First six months of 2016, contracted sales realized HKD 95.3 billion, an increase of 11.5%. Corresponding GFA sold, 6 million square meters by end of June. We still have HKD 5.2 billion subscribed property sales, which will be turned into contracted sales later. During this period, excluding the JV projects, we have realized cash collection of HKD 72 billion, which is a record high for the past few years and maintaining a very high cash collection ratio.
On this chart, these are some projects that have been completed in the first half of 2016. We have 48 projects completed, total GFA is around 7.13 million sq m. I'm not going to read out all the projects, but you can see the cities, they are spread out evenly in different parts of China. By end of June, according to available for sale, we already sold out 77.5%, we have achieved good results in inventory reduction. On this chart, again, these are some introductions. Our own projects as well as JV projects, the revenue is HKD 84.5 billion. By end of June, including JV products, we still have 33.55 million sq m pre-sale. Here, the unit price has already exceeded CNY 21,000 per sq m. For 2016, in terms of land bank, this chart, we took into consideration of two factors.
Just now, we had a media briefing conference, a journalist asked, "Every time you always go to the auctions, but it's rare to see you guys actually go for a bid, and why is that?" Of course, my answer to them and to you guys is different. I told them, we're being prudent, but here I can tell you there are two factors. The first is that, one, we do think that the land market is too expensive. Second, considering the delivery of the CITIC portfolio acquisition, the group believes that this acquisition will bring plenty of resources available for sale for us. In the first half of this year, we have only obtained four pieces of land, one including in Hong Kong. This one in Tai Po. Our Tai Po project is HKD 18 million when we acquired, now it's already HKD 50 million.
Of course, the housing price and the land price is not closely connected, but at least we can answer our shareholders. In domestic China, we have Jinan. We obtained this piece of land in beginning of this year. In the next two pieces of land, one is in Nanchang, we have already done the planting of trees of this district, and we are waiting to start construction. By end of June, the land bank in China, in total, is 36.45 million sq m. This is including 32 cities in domestic China and Hong Kong, Macao. On this chart, you can see this is the distribution of the land that we own. This is excluding the property portfolio from CITIC. In the first half of the year, the invested property projects has reached 1.9 million sq m. Total IP value, HKD 66.1 billion.
Total rental revenue is HKD 1.06 billion, an increase of 15.9%. Thirdly, on the acquisition of the CITIC portfolio. At end of June, we'd already issued out a circular, we have also communicated with the market. Today, I'm not going to go into details, there hasn't been any change according to the chart that is included in this PPT. I'd like to talk to you about some updates of this progress. At the moment, the delivery is almost about to finish. I believe that very quickly, you will hear results from us. Because it involves certain regulatory bodies, so I cannot predict a time to you guys, but I believe it will be very soon.
Relevant work related, those that are very concerned to you all, for example, in terms of our projects and restructuring and the people repositioning, all of those has been completed. Out of the 25 cities, we have already successfully and smoothly completed the process. In terms of the projects, organization, and sales, et cetera, that is all completed. If you have been paying attention, there are some new projects we are already setting. For the concerns that people had, whether there will be some problems in terms of people positioning or changing their post, et cetera, will that affect the running of the projects? Now I can assure you don't have to worry about this. We are simply waiting for the approval to come through. In terms of this property portfolio, I'm not going to talk into details.
We still have a Q&A session after this presentation, you can put forward any questions you may have. Finally, on the market outlook. If you look at the first 6 months of China, Chinese economy has been affected by the global economy. As the first year of the 13th five-year plan, the central government has issued many stable growth policies, including continued QE and continues to reform the supply side. For the first half of this year, we have realized GDP growth of 6.7%, which meets the requirement of the world on Chinese economy, it also meets the target that was set for the whole year. Looking at various figures for Chinese annual growth staying at 6.7%, I believe that the confidence has increased.
Of course, China's economy is very large, we are also seeing the resistance to risk is increasing, we are highly confident of the stable growth of China going forward. I believe that this will continue to bring more opportunities to the real estate market. I'm not going to talk through these details. I believe that you all are very familiar with these macro figures. Overall speaking, the market is improving. Inventory is reducing, in some major cities, especially those first and second-tier cities, the inventory has been reduced to below 6 months. To be frank, we should also see that in some regions, the real estate market is extremely hot, that might cause certain issues, especially in terms of the policies. Overall speaking, all the cities, they need to adjust their policies accordingly to maintain the stability of the market.
The company will continue to focus on first and second-tier cities, even if there are some uncertainties with the policies. Due to the support of the real economy and the QE going on, we believe that, for the first and second-tier cities, they will continue to grow on the same trajectory, we are still very prudent and positive on the market. On the outlook of the market, in the new normal, the market is restructuring, there is more demand for the real estate developers, which will, again, help to propel companies like us to go forward. I remember communicating with the market end of last year and beginning of this year. For 2016, this will be a year for the real estate market to continue to speed up its integration. Perhaps you were not very familiar with that, but now you should see.
I believe that this trend or this theme will continue. Looking back for the past five years, our total sales exceeding HKD 100 billion, gross margin, net margin, and the equity return ratio, we have always maintained the leading position among those HKD 100 billion clubs. Whilst continuing to expand our land resources, our net gearing ratio continues to be below 40%. Financial resistance to risks is improving. In terms of credit rating, last year, we have become the first one globally for residential real developers to become A-minus. We continue to run effectively on this double platform of financing, and our borrowing cost maintains around 4%, which is the lowest among our peers. In the past two years, we have continued to optimize the managing structure of our company. Actually, in the past two to three years, we have been doing this optimization continuously.
The professionalism of the company, we believe that this will continue to help the growth of the company. In the current situation, we believe that cash is king. It is more than land is king. Whilst we are expanding, our group will continue to make sure we'll have plenty of cash liquidity. Going forward, our growth model will remain the same. We will be pursuing the scale as well as profitability. During the next five years, we believe that our sales will exceed HKD 400 billion, and our net profit will continue to improve in a stable fashion. Our profit margin will continue to be in the leading team of our peers, while our ROE will continue to maintain above 20%, and we will improve the payout ratio stably. This is a brief summary of the past five years.
Of course, including the outlook of the next five years. It is difficult to really spell out our exact plans for the next five years, if any of you are interested, we can find another opportunity to talk about the future plans. It can be summarized by H341. Maybe some of you are not very familiar with this, but those from Mainland China, you will know what this H341 means. Finally, on the guidance of 2016. Within this year, we'll continue to promote the completion of the acquisition deal with CITIC. We believe that this will continue to improve the competitiveness and scale of the company to lay a solid foundation for the 13th five-year plan. We believe that this will provide stable growth for our company in this new normal.
Our resources available for sale will reach HKD 300 billion, we plan to improve our contracted sales target to HKD 210 billion, and we will maintain dividend payout ratio at 20% or above. In the second half of the year, we'll speed up the integration of the CITIC project. I have actually told you, we are simply waiting for the final approval at this stage. In the meantime, we believe that this integration of this project will bring us many opportunities to grow. We will continue to actively seek new growth points as well as opportunities to continue to provide driving force for the growth in the near future. This is a brief introduction from me, and I'll leave more time for Q&A session. Thank you, Mr. Hao. Now we move on to the Q&A session.
If you have any questions, please raise your hand and let us know who you are and where you're from. Thank you. Good afternoon, Mr. Hao. I'm Carol from DBS. I have two questions. The first one is on the improved target of sales. Which is a 17% increase compared to last year and compared with other real estate developers, this is not a major increase, especially considering the acquisition of CITIC, so this increase is not as big as we imagined. Could we please ask why is this? Is this because Mr. Hao and the management team think that for the CITIC project, they are not quite ready to be launched yet, or any other reasons? Second question is on your growth margin. 28% growth margin. This is the lowest of the group, actually.
Mr. Hao mentioned there are many different factors which has caused this. Could you please tell us more about what are the factors involved? Which areas actually has the lowest growth margin and has already reached the worst? Will we be able to see improvement in the second half of this year and next year? I'd like to ask if 28%, is this the bottom? For CITIC, the sales of CITIC, after them being included, will that further drag down the growth margin? Well, thank you. Those are questions that everyone is very concerned about. For us, we have always said that we are pursuing scale as well as efficiency. I remember a long time ago, I told everyone it's easy to look for scale. China has a huge property market in each city and each region. They have a huge amount of demand.
If you're simply doing scale, it is very easy, but we do not wish to grow like this. First, we believe that it takes up too much resource. In addition, it cannot make sure a stable growth of the company. This kind of growth is not something that I am pursuing, nor do I deem as ideal. In the past, I've always been called conservative, and I have left you with this conservative image. But being conservative, I make the most money. Isn't that good? If I'm very aggressive, but I can't make this much money, will you still ask me the same question? Of course not. For me, I like to see stable growth. Another reason is on the management of the company.
If you don't have a good management system, a good management team, when you are growing your scale, that will put pressure on your efficiency, which will in turn be a failed attempt at scaling. That is why I've talked to you about the changes in our management and all of this is to prepare whilst we are expanding, we are not affecting the profit of the company. You can see, it seems that our scale is not that big, but we are still making good money, so you should be happy. Second, on the growth margin. I've already talked to you about this. In recent two years, it's been quite tough. When CITIC is incorporated into our balance sheet, there will be some more difficulties.
Sometimes, when they enter into your balance sheet, you don't quite know what to do in terms of accounting. Some of their business is not connected with our traditional business. That is why I have mentioned, for the real estate market in China at the moment, the fundamentals have not been affected. The fundamentals are the same. We continue to grow at 30% gross margin. I am fully confident. If you're not confident, then we'll see you next year. If you believe me, well then, you believe me. Yes, it is 28% at the moment, but if you ask me, for the domestic China real estate market, it hasn't been affected so much. All these changes, it's difficult for me to explain. Well, all I can say is that time will tell. Please wait. Please be patient. Okay, next question. In the middle.
Mr. Hao, I have three questions. For the CITIC acquisition, actually, it has a big impact on our company. Mr. Hao has also spent a lot of effort on this deal. Compared to six months ago, now, Mr. Hao, for CITIC, in terms of the land quality and the project progress, are you satisfied or you think there are things that yet to be improved? Second, with the 31 million sq m of land, for the next few years, what is the theme of the group? Thirdly, relating to the Hong Kong real estate, we're seeing that you are about to launch your new project of Hong Kong People Hong Kong Land, we also have another project in Hong Kong Ap Lei Chau that's about to be launched. What is the profit level in your opinion?
For example, some Hong Kong local real estate developers, will you follow what they do? Well, actually, the third question you really want to ask Mr. Xiao. I will leave that to him, he'll have some news and updates for those two projects. Well, in Hong Kong, we would like to continue to participate in the market. We don't wish to be number one in Hong Kong. Our main theme is still just to participate, the exact details of the two projects, Mr. Xiao will elaborate. I'll answer your first two questions. For the CITIC project, Oscar, I remember you asked me, am I happy? Am I satisfied? Well, to be honest, if I'm not happy, will I do it? I think for so many years, you should know a bit about me.
I will not do anything that will not make me money, I will not do anything that's simply a waste of time. If I'm doing it, I make sure that this will have good return for everyone. Between me and CITIC, we are strategic partners. If I say, I'm very happy, perhaps they're not happy. To be honest, the best thing is a win-win situation. What does that mean? That means for the recognition that we have accumulated for the past so many years, our image, our brand, and our pricing, et cetera, we need to create this extra value to exert influence. In the past few years, we have also been working towards this goal. We are redesigning these projects, I believe in the future, these projects will be launched into the market. Perhaps next year, most of the projects will come out, will be launched.
This is a consensus between us and CITIC. We hope that we have our professional teams could create more value for this high-quality land. They have been an important shareholder for me. This is a win-win situation for us. With the piece of land from CITIC, what is our plan going forward? I'd already answered this earlier. We will be looking for opportunities. If the land market continues to rise, I don't think this is possible. It will not continue to rise nonstop. For us, when we buy land, I believe you should be a bit confident in our ability. Please be patient. When we have other further updates, we will let you know. Mr. Xiao? Well, a few questions. You're seeing that a lot of companies are purchasing land, and what do we think of this?
Well, in the past decade, in the Hong Kong market, Mr. Hao has mentioned that we will participate relatively. We will not change our principle, because in Hong Kong, what we understand is that there are a few characteristics. First is that it's slow. What do I mean by slow? After you purchase land, you can only sell the property in 3-4 years. Nobody can be quick. This is the government's control. It's very detailed. This is one. Second, it's relatively stable. The land price is very stable. Thirdly, there has been some restrictions in the policy. You can see sometimes, either they won't do it, or they do it, but it's very difficult to change. I think those are difficult to change. For example, buying a second property, et cetera, perhaps those will change.
For the Hong Kong People Hong Kong Land Project, we believe the value is very stable because it has no difference compared to other projects. Those are some of our views on the market. We will continue to participate in a stable fashion. We will not be grabbing land out of the blue and to compete blindly with others because the other people are doing it. Thank you. Next question. Good afternoon, Mr. Hao. I'm Eric from CICC. I have three questions. The first one, we have seen that in your PPT, you've summarized on the development of the past years. We have also seen the growth of the net profit, every year you have maintained at 20% and the core maintaining at 15%. In the meantime, we're also seeing if you're looking at EPS, actually, the growth of EPS is not very high.
I'd like to ask for the management team going forward, including the CITIC program, there will be diluted EPS. Do you have any guidance on the EPS? Or do you have any views on EPS? This is first question. Second question. In 2020, you have mentioned in the next five years, you will increase your sales revenue to HKD 400 billion. Should we understand that as the equity will maintain the same or the equity proportion will change? For the shareholders of China Overseas, once it reaches HKD 400 billion, what's the equity attributable to shareholders? Thirdly, on the gross margin. I'd like to have a follow-up question. If you could give us a breakdown of the revenue, could you please tell us the gross margin from China State Construction Engineering and the difference between that versus the gross margin of China Overseas?
Everyone is very concerned about diluted EPS. Actually, with the CITIC portfolio, whilst I was communicating with you all, I had mentioned this. What is the background of this transaction? You know that CITIC is not a company that is short of money, and they are not there grabbing money. What do they want? They want shares. I know that all of you and our shareholders are concerned about this dilution issue. Actually, for EPS, at the moment, it's not diluted yet. Perhaps we will issue it end of the year. Will that be diluted? I don't think so. This is not a promise. What should I do? I'll see you guys in six months. Why don't you look at it yourself? A lot of things that I have said repeatedly, but nobody believes me.
If I cannot continue to grow the benefits for the shareholders, why would I do this? I know that at a certain time point, you will be very concerned about this, and no worries, you can look at it in the next six months, but I'm confident that it will not be that diluted. Second, on the HKD 400 billion and our plan in the next five years. Actually, you can see for COLI, in our overall business, the JV projects are actually very few, and most of the projects are independent projects belonging to ourselves. These, I believe the HKD 400 billion will be mainly for the equity of the company. This is the same as what I've said earlier. In order to pursue scale whilst wasting resources, is this worth it? This is also a question that we continue to review and study ourselves.
For me, I believe everything should be on the same page. If you have scale, you should have profit. If scale and profit do not match each other, this is not the direction that we go for. I believe the HKD 400 billion, a lot of the equity belongs to COLI. In terms of the gross margin, I've said this many times, and I don't want to repeat this. I think what you are concerned is about the projects of China Construction. Actually, these projects, the percentage is very low, only about 10%. It will not have a material impact on our gross margin. For domestic China, the fundamentals haven't changed. Thank you for your question. Next question, please. Second row over here. Good afternoon, Mr. Hao and management team. Can you hear me? I'd like to ask about your cash on hand.
Last time, Mr. Hao said that having too much money is also a headache. Now you have more cash on your hand, do you have any ways to spend the cash? Is it not a good thing to have cash? Is better to have less cash? If we have more cash, we can give you more dividend, and that means more opportunities. Of course, I know what you mean. Even if I'm doing it, I can't tell you. I can't tell you what I'm doing. This is very sensitive information. Yes, I am doing things. Cash will not always sit on the book. We will make sure that cash will bring benefits, bring values. Same as beginning of the year, we have already made plans.
If this acquisition with CITIC, had it not been shares or cash, our financial statement will not be what it is at today. By then, I think you probably would not say, "Oh, you have too much money." We are fighting a battle under the best preparation. We are looking for more opportunities to prepare for a better future for our shareholders and for the future of the company. Thank you. Next question, please. Here, second row. Thank you, Mr. Hao. I am David from Macquarie. A few more questions on the land purchasing. From this year, to HKD 400 billion in five years in your PPT. This comment, you said the restocking when the land price is going up, the sales will be needed. Restocking, does that mean the land price will not come down in a short period.
For COLI, if you want to maintain a good gross margin, that will mean you will need to have other methods, for example, M&A with CITIC and some small deals of M&A, and thirdly, by some restructuring of the shanty towns in other cities. In the next two years, could you please tell us if you have some other good surprises, such as the CITIC project? Or will it be at one point you have to come back to the land market and fight with your peers? This is question one. Second, Mr. Hao has mentioned about this, about the HKD 400 billion. It is mainly in equity in your PPT. It has also said that you will consider more JV. This has not been mentioned in the past PPTs.
Could you please talk to us more about this, when you say you will consider more JV, and what is the thinking behind that? Okay, thank you for your question. For the land market, actually, I believe you all have been very concerned about this, and I could also understand how you feel. For example, how long it is going to take. What if the land market continues to be heated? Will the company change its thinking? Well, from two areas, I would like to look at this. First, after completing the deal with CITIC, actually, it can provide us with a value worthy of HKD 450 billion. This, I hope in the next three years, we will be launching it to the market gradually. In this backdrop, actually, our pressure for land bank has been reduced greatly.
It is not that we are against land purchasing, but we will continue to keep an eye out on land opportunities. In terms of what you are saying about the possibilities with other companies, you are always trying to get secrets out of me. But I have also said this, earlier this year, I have given a signal. In the past, we have always talked about natural growth and acquisition. In the beginning of this year, I said it seems that M&A growth will also be one of the main growth models of the company. M&A growth could also be considered as one way to grow of the company. What you talked about the upgrading of shanty towns, et cetera. We have been doing this continuously, especially in first-tier cities in Beijing and Shanghai. I have always been doing this.
The upgrading of shanty towns in those two cities, it has been able to provide the company with good support. If you are interested, you could look at some of the shanty town projects that we are doing. To be frank, the future is worthy to be waiting for. In terms of JV, well, just roughly talking about this. In the past, we talked about these three things, but we cannot not say anything about this. For me, personally, financial resources available, if we have the good management team, it is not necessary to have JV. We can do it ourselves. When I was answering your question, I mentioned I will run the business mainly on our own. JV is a model that we are not against, but it is not a main direction of the company. Thank you for your question. Next question, please.
No more question? Well, this will be the end of today's meeting. Well, it really seems like there is no more question. Mr. Hao, I am Ling Fong from [audio distortion]. I have two questions I would like to ask. Just now, you mentioned about the 1st-tier and 2nd-tier city, the policies will become stricter. Could you please color more on this? For example, there has been some policies in the past. Investors thought they were just so-so. Second, when we look at COLI, we think we like COLI because the management team is very strong. For Mr. Hao, last year you mentioned, if this year we could still see you, we can ask you questions, right? Did I say this? I do not remember. What do you mean? You said I said if I would still be here, we could ask you questions?
I would like to ask you, will we continue to see you in the next few years? Now I understand what you are trying to say. In the past, in the 1st-tier, 2nd-tier cities, yes, indeed, there has been some controlling policies and restrictive policies, some of the policies are quite gentle, actually, those are policies that hoping to guide the market to grow into a very healthy state. It is not for exerting pressure. Whether they are stable or whether they are effective, I think that would still take some time. For some cities, we can see that there has been some results, has been some good cooling results. Perhaps you think controlling is about hitting or being very restrictive, but it is not the case. In China at the moment, various local government, actually, they are becoming more and more mature.
The relevant policies, there is still room to maneuver. I am very positive, I feel good. In terms of what you said about what I said last year, I cannot seem to remember. I would not know how to respond to this. I am still sitting here, we still get on with each other. How long can I continue to sit on this panel? I cannot answer you. Did you hear anything? You are too anxious. We get on very well, I like everyone. I would not want to leave. There is for Qide, number 1, this is a project that we had a media briefing this afternoon, tomorrow we will be opening it in Kowloon Bay. I know some of you here, you are limited, with your ability to buy. Perhaps you have some restrictions.
If there is no restriction on you or your family, you should totally go and check it out. There hasn't been any of the upgrading of the shantytown in the world as big as this. Another project on Zuoan, we have already obtained the approval. This, again, this is a good project. It is next to the sea, and it has MTR, and the units have a good space. Those are two good projects, and you should check out. One is good for you to live in, another is good for you to invest. They are both very worthy of your attention. Please go check out. For the Kai Tak number one, this is a good plan. You'll be able to get a sea view. For Zuoan, I think you could also live in there. It's about 2,000 square feet.
It's a great place to live. Thank you. Please don't ask me questions about what that gentleman has just asked. Good afternoon, management team. First of all, I'd like to thank Mr. Hao for making money for the shareholders for the CITIC project. That's what I should be doing. I have one question. It's a long-term question. For COLI, as such a good company compared with China Mobile. China Mobile, their revenue is HKD 700 billion. They are the biggest among the communications companies, and they have done so well in their own field. In our industry, every year we'll have HKD 7 trillion-HKD 8 trillion of sales. For Mr. Hao, in the next 5 to 10 years, for the leading companies, do you think you can take 10%-15% of the market share? Because at the moment, the market is still very segmented.
It is very difficult to have a long-term and healthy development. Mr. Hao, what is your thinking on this? Are you a shareholder? You're a very difficult shareholder, I have to say. 10% of the market share. If we are not growing, our residential is about 900 million sq m. Adding the commercial, that's about HKD 1.2 billion. Based on our average cost per unit, per sq m is HKD 20,000. That will be HKD 1.8 trillion revenue operating income. Out of the top 500 company, anyone can reach this? It's difficult. Chinese companies, they cover the Chinese cities. They cover all areas of China from 1st tier to 5th tier cities. We have about 600 cities in China. How many management team would you need for the 600 cities? I believe 3%-5% of market share, that is possible.
Going forward, I also believe the main developers in China, it is possible to reach 3%-5%. If you're talking about 10%, that's quite difficult. At least in the short term, it would be difficult to realize this goal. I cannot say whatever I want to the shareholders. I think we'll work hard towards the goal of 2%-3%, and perhaps then we could revisit the issue of 10%. Thank you for your question. No more questions? This is the end of our analyst meeting today. Thank you very much for coming to the interim result.