Good afternoon. I am Wu Yiying from China Overseas, from the Corporate Communications Department. Welcome to China Overseas Land & Investment 2023 results announcement. In attendance, we have from the management, Mr. Yan Jianguo, Chairman of China Overseas, Deputy Chairman and Chief Architect Mr. Luo Liang, CEO Mr. Yan Jianguo, and Deputy CEO Mr. Guo Guanghui. In this announcement session, there will be three parts. First of all, Mr. Guo will present the 2023 result highlights. After that, Mr. Yan will have a brief exchange and sharing with you, followed by Q&A. You can ask questions and leave messages on the phone or online. Now let's invite Mr. Guo to present the 2023 results. Analysts, investors, and those of you who have been supporting China Overseas development, good afternoon. Welcome to today's results announcement.
Now let me present to you a summary of the group's 2023 annual results highlights. The presentation comes in three parts. First, we review annual results highlights and next move on to the business and management review. Then we will walk through the 2024 targets. Finally, we will have a session to exchange ideas. First of all, we present to you a summary of the group's 2023 annual results highlights. In 2023, China's economy faced new difficulties and challenges. Domestic demand is insufficient. Supply and demand relationship has undergone significant changes in the real estate market. Market is still adjusting after a brief recovery. Despite the challenging market conditions, the group made steady progress and executed lean management to expand comparative advantages and achieve high-quality development and long-term success against market headwinds.
In terms of sales, the sales market share of the company continued to increase, further enhanced our industry position. In 2023, sales volume of the industry continued to decline, while contracted sales of the group series companies increased 5.1% to CNY 309.8 billion, ranking 3 and 2 in the industry in terms of gross sales and attributable sales, respectively. Market share increased 0.29 percentage point to 2.66%. In terms of land acquisition, the group maintained investment discipline with focus on projects in core cities and core districts with higher investment certainty. Leveraging on comprehensive comparative advantages, the group maintained a leading position in land premium amounts to drive sustainable development. In 2023, total land premium of group series of companies reached CNY 144 billion, among which the total land premium of the group was CNY 134.21 billion, with attributable land premium of CNY 122.7 billion, up 42%.
Net available resources in Tier One cities accounting for 60.3% of the total. As the divergence of market aggravates, advantages of available resources composition become more prominent. In terms of profit, the group exhibited financial stability against market headwinds and continued to create value and returns for shareholders. In 2023, revenue was CNY 202.5 billion, up 12.3%. Profit before tax of CNY 41.12 billion, up 14.2%. Net profit attributable to shareholders, CNY 25.61 billion, up 10.1%. Net profit attributable to shareholders excluding revaluation gains of CNY 22.58 billion, up 12.1%. Core net profit attributable to shareholders, CNY 23.65 billion. Although the industry's profit margin is under pressure, the group bolsters and improves cost and advantages, refined management, and digitalized operation with prominent competitiveness. In 2023, SG&A and average borrowing costs as percent of revenue was 3.4% and 3.55%, respectively, both of which remained low in the industry.
The group strengthened cost advantage of supply chain with procurement price down 13% year-on-year, consolidating our industry-leading value creation ability. In terms of financial performance, the group exhibited financial stability with 57.5% of liability-to-asset ratio, 38.7% net debt-to-equity ratio, down 4.2 percentage points, and CNY 105.6 billion of cash on hand. The group still achieved operating net cash inflow of CNY 35.28 billion, even with a large increase in investment amounts. The advantages of the group's financial resources are more outstanding. The second part reveals the business and management in 2023. In terms of contracted sales, facing a weak demand and declining markets, the group looked shrewdly at the market and operated prudently and steadily. Leveraging its quality city layout and ample saleable resources, the group realized a growth in market share and industry position was strengthened against market headwinds.
In 2023, contracted sales of group series of companies increased 5.1% year-on-year, ranked third and second in the industry in terms of gross sales and attributable sales, respectively, while contracted sales of the top 100 developers decreased 16.5% year-on-year. Overall market share of the group increased 0.29 percentage points to 2.66%, and average selling price was up 9.1% year-on-year. In terms of cash collection, the group focused on cash flow management to strengthen cash collection. Overall cash collection rates of the group series of companies increased 6 percentage points to 99%, of which cash collection in seven cities exceeded CNY 10 billion, maintaining a leading position in sales quality. In a declining market, different cities and sectors continued to diverge. The group focused on key cities and locations, driving sales and market share to increase. Its competitive advantages were prominent.
During the period, the group's contracted sales from first-tier cities and major second-tier cities amounting to CNY 197.3 billion, 74% of the group series of companies excluding COGO, among which first-tier cities' contracted sales remained over CNY 100 billion. Group series of companies further penetrated the market with 31 cities ranking top three and 11 cities ranked top one in terms of market share locally. Sales contribution from key cities and key projects remains stable. The group achieved contracted sales over CNY 10 billion in seven cities. Beijing's contracted sales reached CNY 61.4 billion, among which China Mansion, Beijing, reached contracted sales over CNY 10 billion. In terms of land investment, supply and transaction of the land market continued to be at a low level in 2023, and there was a significant divergence between cities and sectors. Competition in the land market in major cities was fierce.
The group maintained its disciplined investment and leveraged comprehensive competitive advantage to rank number 1, top 1 in terms of new investment amounts. The advantages of the composition and quality of the newly added saleable resources are prominent. During the year, total new premium of the group series of companies reached CNY 144 billion in 2023, corresponding saleable resources CNY 264 billion. Total new land premium of the group reached CNY 134.2 billion, adding equity acquisition projects and urban renewal projects in Shanghai, Jianguo East Road. Total land premium reached CNY 140.7 billion, corresponding saleable resources of CNY 259.1 billion, among which the land premium and newly added saleable resources in first-tier cities accounting for over 60%. 35 land parcels were acquired in Tier One and major Tier Two cities, accounting for 92% of total land premium and saleable resources.
The group has quality saleable resources with high certainty and strong resilience against risk. As of the end of 2023, group series of companies' total gross area of land bank was 54.03 million square meters, indicating strong momentum for sustainable growth. During this market transition period, the group's industry position continues to improve. Competitive advantages are expanding, contributing to land acquisition. We have the lowest debt ratio in the industry and maintain a robust financial condition with ample cash on hand, showcasing our financial strength. With industry-leading development and operational efficiency, we have prominent advantages in cost management. We adhere to Blue Ocean Strategy to acquire quality land bank through business synergy and multiple channels. During the year, the group successfully obtained several large-scale integrated projects in four first-tier cities: Beijing, Shanghai, Guangzhou, and Shenzhen.
We acquired 8 projects in reserve prices, accounting for 19% of total number of newly acquired projects in the year. We acquired the remaining equity of Guangzhou Asian Games City project, equity in Suzhou Huanxiu Lake Garden project, and the prime land parcel in Chengdu Tianfu New Area through M&A and capital injection. We'll continue to attentively pursue opportunities in urban renewal and M&A. Despite the downturn in the real estate market and the sustained pressure on industry profitability, we maintained industry-leading value creation capability by precise investments, refined operations, and cost reduction measures. In 2023, the group achieved double-digit growth in profit before tax, net profit attributable to shareholders, and net profit attributable to shareholders excluding revaluation against market headwinds and maintained industry-leading profit margin. The group has continuously strengthened refined and specialized management with outstanding competitive advantage in cost management.
During the period, our SG&A as percent of revenue and average borrowing costs maintained at the lowest level, and advantages of procurement at its Lingchao supply chain platform are prominent. The group is dedicated to creating long-term and stable return to shareholders. The group proposed final dividend of HKD 45 per share. Total dividend for the year was HKD 80 per share, representing dividend payout ratio of 33.1% based on the core net profit attributable to owners of RMB 23.65 billion. This is a gesture of appreciation to shareholders who have accompanied the group's growth and supported our development for a long term. For financial position, we remained stable and sound financial position and continued to optimize financing structure, achieving four reductions in interest-bearing debt, foreign currency debt proportion, of foreign currency, and foreign exchange exposure.
The group has always adhered to prudent financial management practices and does not engage in off-balance sheet financing or perpetual bonds for development business. As at the end of 2023, our liability-to-asset ratio excluding pre-sale proceeds stood at 51.8%, net debt-to-equity ratio 38.7%, cash short-term debt ratio excluding property income regulated by authorities was 2.1 times. The group continued to be at green category with excellent performance of all indicators. We actively controlled interest-bearing debt with reduction in interest-bearing debt of CNY 12.72 billion year-on-year at the end of 2023. Meanwhile, we held cash on hand, CNY 105.6 billion, accounting for 11.4% of total asset, well positioned to seize market opportunities. We're committed to high-quality development, generating cash profits, and implementing irrational planning and allocation of cash flows. In 2023, we have operating net cash flow inflow of CNY 35.28 billion.
Under the circumstances of frequent occurrence of credit risk in the industry, we still had the highest credit rating and smooth onshore and offshore financing channels. In the context of high interest rates on overseas financing, we have taken multiple measures. We have made an early repayment of a club loan of HKD 30 billion to reduce financing costs and optimize financing structure. At the end of 2023, proportion of interest-bearing debt dominated in RMB has increased 7.7 percentage points to 70.3% compared with the end of 2022. Debt due over three years accounted for 51%, up 10.8 percentage points compared with the end of 2022, further optimizing debt structure. In terms of unbooked pre-sales, overall scale continues to maintain a high level. As at the end of 2023, group series of companies' unbooked pre-sales was RMB 237.3 billion.
Among them, group series of companies excluding COGO's unbooked pre-sales was CNY 185.9 billion, up 7.6% compared with the end of 2022. Unbooked pre-sale remained stable and will be booked gradually, bringing positive impact to secure the revenue and profits of the group. Under the new model of the real estate industry, the group continuously strengthened its product competitiveness to enhance brand influence through quality and enhancement, technological empowerment, green and low-carbon practices, and high-quality services. During the year, we built a series of benchmark products in core cities to meet differentiated customer demands in different cities and enhance brand influence. Meanwhile, we are committed to green development and adhere to the national decarbonization targets, striving to be a pioneer in green building research and practice. All newly built fully fitted projects of our company meet the green building standards.
Among them, China Overseas Building in Shenzhen is included in the first batch of zero-carbon building technology benchmark projects by the MOHURD of China. China Overseas Finance Center, Beijing, is the first zero-carbon office in Beijing. We adhere to technology-empowered products. We construct a low-carbon and healthy future living experience, integrating the functions of sensing, knowing, and controlling by cutting-edge technologies of intelligent monitoring, automatic control, and omnidirectional perception. We also promote rapid development of representative projects with AI, BIM, energy conservation and environmental protection, and intelligent construction. Enhancement of product competitiveness contributes to the group's brand influence. During the year, China Overseas Property Group ranked number one in the China real estate brand value for 20 consecutive years, with a brand value of CNY 140 billion, and obtained 2023 China Real Estate Excellent Brand, 2023 China Real Estate Brand Leader in Customer Satisfaction Awards.
The current industry is under a transitional period. As a significant business unit of the group, the commercial sector continues to consolidate its strategic positioning in urban operational platforms and adhere to high-quality development to support rapid growth of commercial properties. The group accelerated new commercial project launches with rapid-scale expansion in 2023. During the year, the group added 12 new projects into operations, including five shopping malls, four offices, and three long-term leased apartments, with a gross area of approximately 1.05 million square meters, injecting new growth momentum into commercial operation. The group focused on core assets to boost rapid revenue growth. Revenue from commercial properties increased 20.9% year-on-year to CNY 6.36 billion. If including joint venture projects, revenue would be CNY 7 billion. The group continued to focus on key cities with strategic locations of core assets.
As of the end of 2023, group series of companies excluding COGO held a total of 10.14 million square meters, 98% of which is located in core districts of first- and second-tier cities. At the same time, the group accelerated expansion of asset-light business with outstanding asset management capability. As of the end of 2023, light asset management scale was 1.5 million square meters, 93% of which was located in core districts of first- and second-tier cities. The group has excellent urban operations with lean asset management focusing on improving operational efficiency and returns. Office business remained stable, and operation outperformed the industry. The newly signed area reached 930,000 square meters. Occupancy rate of projects over one year was 86.9%. Occupancy rate of projects in operation over three years reached 90.2%, with gross profit margin of 70.5%.
Shopping mall business scale continued to grow at a high rate, with revenue increasing 40% year on year and a five-year CAGR of 27%. The occupancy rate of projects over one year reached 97%. The occupancy rate of projects in operation over three years reached 98.4%. Long-term leased apartment business performed steadily, with occupancy rate of projects over one year of 94.5%. Hotel business recovered strongly, with occupancy rates jumped 23 percentage points and revenue doubled. The group further penetrated the markets in high-tier cities, focused on high-quality core assets, continuously optimized the mix of commercial assets. Area of pipeline projects in first-tier and second-tier cities accounted for 97%. In the 14th five-year plan period, the group has planned to introduce 17 new self-owned commercial projects to the market.
After the 14th five-year plan, 21 new commercial projects will be put into operation, which will strongly support continuous growth of commercial income. The group firmly adheres to a sustainability strategy of four excellences, with high recognition from international authoritative institutions and capital markets for the group's ESG achievements. The group has been a constituent stock of the FTSE 4 Good Index and the Hang Seng ESG 50 Index for 7 and 4 consecutive years, respectively. The group is ranked number one in the real estate industry in the world in the LSEG ESG scores, with Morningstar Sustainalytics and Wind ESG scores both elevated to number one in the industry.
In terms of the environment, the group proactively responded to the 3060 Decarbonization Targets set by China and set out co-leased decarbonization targets of reducing at least 30% Scope 1 and 2 carbon emissions intensity per unit area by 2030 and striving to achieve carbon neutrality by 2060. Taking significant strides towards the dual carbon goals, the group issued Carbon Neutrality White Paper and set out Carbon Peak Implementation Plan. In terms of green building, the group had accumulated 636 green building projects with an accumulative area around 110 million square meters. In terms of social responsibility, the group valued stakeholders, including employees, customers, partners, and society, and kept corporate social responsibility in mind. Overall, customer satisfaction score for the year was 90.
Ranking top three among the top 20 property developers, the group attached great importance to occupational health and safety of employees and obtained ISO 45001:2018 Occupational Health and Safety Management System. The remuneration of the safety responsible persons is linked to OHS performance. For corporate governance, the group has established ESG working leadership and decarbonization working leadership to facilitate the decarbonization and other sustainable development work of the group. This year's ESG report obtained third-party verification for another consecutive year, and we appointed a new female independent non-executive director maintaining thought diversity. Part Three: 2024 Targets. The real estate market is still in between the transitional period with strong uncertainties, but the favorable factors contributing to stabilization in the real estate sector have strengthened. The group responded proactively to various challenges, pursued steady and progressive operations, and continued to create value for shareholders.
In 2024, the saleable resources of the group series of companies are approximately CNY 702.4 billion. With abundant and quality composition saleable resources, we will strive to make steady progress in contracted sales. This year, the commercial sector will accelerate new project launches, enhance operational efficiency, increase efforts in expanding light asset businesses, and strive to achieve a rapid growth of 25% in commercial revenue. In terms of land investment, the group will adhere to the positioning in core cities and core districts, focusing on customers with improving house needs and striving to find projects with higher certainty in segmented markets. Investment scale will maintain stable, consolidating sustainable development momentum. That is all for my presentation. Thank you. Thank you, Mr. Guo. Now, may I invite Mr. Yan to do a brief sharing with you. Analysts, friends from investment institutions, good afternoon.
Welcome to China Overseas Land & Investment's 2023 annual resales announcement. In 2023, the real estate market continued to decline, and China Overseas' sales, revenue, profits, and investments all achieved growth against the trend. Just now, Mr. Guo Guanghui just made a detailed briefing. I believe that this report card is of high value and hard won. These achievements have been achieved thanks to strong support from all walks of life, including analysts who are here, and we need to thank investors for their support as well, and shareholders. Thanks to the hard work and effort of all China Overseas colleagues. Thanks to our consistent insistence on high performance under financial stability, quality development strategy, long-term business strategy focusing on mainstream cities, mainstream locations, and mainstream products.
In 2023, on the basis of a 42% increase in attributable land purchase amount, a net operating cash flow of CNY 35.28 billion was achieved, and a large amount of early repayment was made. We continue to maintain the industry's most stable financial position and the most adequate cash. The current overall market situation is weak, but we are in very good shape, and we have strong development momentum. The real estate market is still in the transitional period between the first and second half of the year. The transition period takes a certain amount of time and will inevitably experience fluctuations and adjustments. It will also take some time to adapt to the development trend of new urbanization and changes in supply and demand relationship in the real estate market and build a new model of real estate development. All these take time.
Now, there are still many challenges and difficulties in the current market, but challenges and opportunities are the unity of opposites and are constantly transforming. We view opportunities in crises with a positive attitude, and we are confident in the company's competitive advantages amidst major changes in the industry. This confidence comes from the fact that good factors on macro, medium term, and micro levels, they are all strengthening and increasing. On macro level, the long-term positive trend of the economy has not changed, and the factors for recovery have strengthened. China's GDP growth target of 5% in 2024 is still at the forefront of the world. Central government's work report clarifies that the proactive fiscal policy must be moderately strengthened and steady.
Monetary policy must be flexible and appropriate, focusing on expanding domestic demand, promoting stable growth of consumption, actively expanding effective investment, and other overall policy orientations for economic and social development. All these can provide support for stabilization and improvement of the real estate market. And then, on a medium level, there are increasing positive factors for stabilization and improvement of the real estate industry. Industry regulation policies have been gradually withdrawn, and financial support has continued to increase. Cities have introduced a series of policies to support rigid housing demand and diversified improvement housing demand, and have intensified efforts to promote construction of Three Major Projects, including affordable housing, urban village renovation, and stimulate market demand and boost market confidence. On micro level, after this round of industry reshuffling, the company's comparative advantages have been significantly enhanced. After more than two years of reshuffling, industry concentration has further increased.
Market share of leading real estate companies with sound operations has continued to increase. Various resources have further converged towards leading real estate companies. We have always adhered to a high-quality development strategy based on sound financial performance and maintained the highest credit rating in the industry. All along, we have always maintained industry-leading product strength and profit level in the residential development business, and we have a comparative advantage during market downturn. Last year, our company's land purchase or land acquisition amount was industry-leading, and this year, saleable value is industry-leading. Volume structure is excellent, and residential sales are expected to achieve steady growth. At the same time, in the past two years, our commercial projects have accelerated its entrance into the market. Income from held properties has grown rapidly.
Based on the 21% growth last year, this year's commercial income is expected to continue to achieve 25% growth targets. Our company strives for progress amongst stability, and we have more resources to promote stability through advancement. Our sustainable development capability is leading the industry, and our development is more determined. We are confident that we will repay the trust of shareholders and investors with stable and excellent operating performance. In 2024, we will continue to make progress amidst stability, and we will remain resilient. Thank you. Thank you, Mr. Yan. Now, we will start Q&A session. Let me remind you, you can leave a message on the phone or online to ask questions. Please limit the number of questions to two each time. Operator, can you take the first question?
Okay. Thank you.
Ladies and gentlemen, if you want to ask questions, please press star one on the keypad to register. Thank you. First question is from Jiang c of CICC. Please.
Thank you, Mr. Yan. Management, I'm Eric from CICC. I'm happy to learn that you have super high quality in your operations and results. And Mr. Yan said that you want to be good and fast, and speed must be on a good foundation. So now we have a better understanding of your point. So first of all, congratulations. I have two questions. First. Management, this year, in relation to your judgment of the market and also your refined operations, starting March this year in the market for sales volume, it seems that it started to stabilize. And recently, after the state made some points about office properties, it seems that the company has made some moves in Tier 1 cities.
So when it comes to sustainability, what do you think? I would like to listen to your views. How do you see this year's market trend in the coming period? Last year, your sales were very good. Land acquisition was of high quality. Land Bank, in terms of quantity and structure, is very competitive. So just now, we talked about the market condition. Can you also share with us about your planned product launch and market acquisition for this year? Do you have any concrete plan? That's my first question. My second question is about profit margin. Last year, profit margin was very good. So all along, your profit margin is very competitive among your competitors. So in the future, regarding profit margin, what will be your guidance on this trend? Thank you. Thank you, Eric.
First of all, thank you very much for your comments and recognition of our results. Thank you for your two questions. First question about our judgment of the market and this year's considerations in relation to product launch and investment. Later on, I will ask Mr. Jiang, our CEO, to answer. Second question is about profit margin. We will ask Mr. Guo to answer. Okay. First question. Just now, our chairman, in his speech, already said that overall, our judgment is that this is still a downturn adjustment period. Overall speaking, we saw some positive factors in the market. They start to emerge. Last year, there was a small recovery. Last year, the peak was in February to April. And in June, we saw a lower trend, a lower position. Looking at China's macroeconomic policies, well, GDP guidance is 5% growth. That's the target.
And then for fiscal and monetary policies, there will be positive policy for the industry-related policies. Well, some important policies and speeches of the leaders, well, they indicated clear support for the real estate market. So we should guard against further risk in the industry, and there should be more financial support. And the state authorities asked the local governments to monitor the situation in various regions so that there will be policies for different cities, and policies and support should be made according to local circumstances. Recently, we had much contact with local governments, and in the process, they tried to understand the market situation. At the same time, they also consulted some companies on good policies. So we have actively communicated with them. Overall speaking, in the future, in terms of policies, I think there would be more relaxation.
In the recent period from Tier One and some Tier Two cities, some policy adjustments and concessions have been introduced. Overall speaking, the market is trying to restore confidence, and actually, the direction is market stabilization. In the future, with market-favorable supporting policies, I think the situation will be more favorable. And then the third point is about market demand and supply. Well, our country is promoting the building of Three Major Projects, especially the redevelopment of chengzhongcun, villages within cities. So they focus on the number of cities in the mainland. So for the old city centers, their functions and their outlook should be enhanced. At the same time, for major projects, they can effectively facilitate government's investment. And when it comes to boosting housing demand, it will be helpful.
Comparing the 2023 land transaction situation, if you look at land transaction completion and new construction, from the peak in 2020 to 2021, there was a decline by around 60%. So if you talk about the same period, housing transaction completion, if you look at 2021, comparing with that, there is a decline by 30-odd% in terms of area. So in the future, total demand and supply in the market will gradually be restored, and this will mean that confidence of the market can be restored. And then number four, recently, given our sales in January and February, comparing with the same period last year when there was a short recovery, the downturn was bigger. But then starting March, there is clear recovery. So when it comes to property visits and also transactions, well, there is a significant increase.
So for property viewing, up 13%, and then the transaction volume up 7% at the end of March in the recent one week. In some Tier One and strong Tier Two cities, we have 11 projects that will be launched and sold. So our direct sales and also our project launch for 688, well, we can exceed CNY 35 billion sales. For our JV companies and also associates together this month, we may have the opportunity to see CNY 40 billion contracted value. So this is our judgment about market confidence. Overall, we think that this year, in the market, with these factors' impact, in the adjustment period, I think gradually things will begin to stabilize. In this period, I think there will be more focus on core cities, core locations, and also good quality upgrading projects. Those will be of higher certainty.
Recently, in Shanghai Jianguo East Road, well, it will be launched sometime later this year. Product will amount to CNY 20 billion, and the sales rule may reach 90% in Beijing and Guangzhou. We expect to see quite good sales. This year, let me talk about our sales plan. Mr. Guo just presented our whole year supply, and including COGO for the whole group, our total supply is CNY 702.4 billion. For our own company, CNY 607 billion. Then for our product structure, it is very good this year. We broke the record for Tier One cities. Product amounted to CNY 277.4 billion in terms of absolute amount and also its share. It is highest. Its share is 46%. Strong Tier Two cities, almost CNY 270 billion. The two together, 79% in total.
These are of high certainty, so I think they will give a lot of help to our sales this year. Last year, if you look at investment, we are leading in the industry. For these projects, 33% will be launched within this year in March. So we will be able to achieve a return and also sell through. I think the situation will be quite good. Then looking at our 2023 Land Bank and also product project launch, from return and also the turnover, it is both satisfactory. Given this market situation, we took the initiative to acquire land, and we're the first to acquire projects. If you look at opportunistic cities and core locations acquisition, well, they give a lot of help to our product structure. Last year, for products launched, our average profit margin reached 16%.
So in recent years, I think this is a rather satisfactory return level. Okay. Thank you for the question. Well, for China Overseas, all along, in relation to net profit margin, we attach much importance. And in the process, we consider this for our investment and appraisal. This is an important factor. So in terms of net profit in 2023, we achieved net profit margin 13.4%, net profit margin. So for this level, based on what we have disclosed, I think we are number one, we are top in the industry. So I think this is because of our past insistence. There are three main points about our future plan. First, we will insist on our investment philosophy and investment and operation strategy and work. In 2021 and 2022, the market was at a downturn. That was a transition period. We insisted on our investment, and we acquired land.
In 2023, as you can see, our recognized gross profit margin and net profit margin were leading in the industry. On the investment end, we put in effort, and the help from investment would enable our development to see a leading position in terms of net profit margin. In 2023, we acquired land. Average gross margin was 22%, just now Mr. Jiang said. This is in line with our plan, and operating profit margin is also high. Besides, we put in much effort to improve our product capability to make products that are suitable to consumers. Now, on this, with policy change for Tier One cities, the price limit was relaxed. So when we can enhance product capability and when we can increase price, then in the latter part of the competition, when it comes to product development, product capability, there will be new room for us.
For return of our company and also value creation, there will be more room. Number three, we will focus more on our strengths. We have cost advantage. This is further reinforced. In 2023, through supply chain centralized procurement, our cost came down 13%. Our administrative and selling expenses ratio was 3.4%, which is leading in the industry. Financing cost 3.55%, and this is under interest hike overseas. In the future, in terms of control of costs and expenses, operating efficiency and refined management will continue to put in effort. All these three together will mean that we have very good core comparative advantages. When the real estate market and industry continue stable development, our company's development will deliver good returns to shareholders. Besides, we will continue to have leading net profit margin. Thank you. Thank you, Eric. Thank you, Mr. Guo. Let's take the next question. Thank you.
Next question is from J.P. Morgan.
Please. Management, I'm Carl of J.P. Morgan. Two questions from me. First, about cash flow. Just now, from your presentation, I heard that in March, sales had recovered significantly. We are happy, but the market is still worried. In the future, if sales are not good, then what will you do to face up to the situation if whole year sales came down 50%, let's say, then management, how are you going to respond to that? Do you have any plan B or plan C that you can share with us? That's my first question. Second question regarding Hong Kong. Well, China Overseas is one of the biggest developers in Hong Kong, and recently, the government had abolished some strict measures, and some projects are selling quite well. So in Hong Kong, what would be your future strategy?
And in terms of price, what would be your strategy in the future? Do you have some sales targets in Hong Kong? That's my second question. Thank you.
Thank you, Carl. First question is about cash flow. I will ask Mr. Guo to answer. Regarding the Hong Kong market and our judgment, I will ask Mr. Luo to answer later. Okay. Thank you for your question. For 688, we insist on high-quality development, and there must be revenue and profit with cash. So cash flow management is our most important consideration. First of all, we start from the source in terms of cash flow management. Mr. Jiang just said that in land investment, we will be in mainstream cities, mainstream location, and we will do mainstream products. These are our operation philosophies.
With our insistence, in 2023, we're able to achieve 5.1% historical growth level, and sales achieved CNY 309.8 billion. So that is our most important consideration. We sped up cash collection and sales at the same time. In 2023, our cash collection rate was 99%. This level is such that operating cash revenue achieved record high. And then on control, we exercised informatized management of costs and expenses. So we achieved new high in terms of our cash flow. So as you can see, of course, there are both pessimistic and optimistic attitudes. At present, we undergo a deep adjustment in the real estate market. So cash flow management is put on top priority. Safe operation and also planned development are on parallel. We often do stress tests. For example, you assume 50% decline to our company. We have no problem.
As I said, on the investment end and product end and structure end, we are very good in quality. So at present, given this market environment, our sales are still quite good. Secondly, in this process, regarding expense control and cost control, we will follow our revenue in cash. So that means expenses will be determined by revenue. So we have the confidence. Number three, we have onshore, offshore, dual financing platforms. Last year, given the financing environment, interest-bearing debts decreased HKD 11.72 billion. So our free cash flow financing, our borrowings have a very good arrangement as a result. So looking at this, we have no problem at all with our cash flow in 2024, as such as now, with our high-quality land bank and also high-quality product launch in 2024. Given the market condition, we have confidence that we can achieve growth in our sales.
For our cash flow, there will be more adequate development momentum. Thank you. In 2023, in Hong Kong, the property market was in an adjustment stage, as you said. Last year, starting from the mid last year, the government made adjustment policies. This year, in February, at the end of February, all the strict measures were removed. Of course, the market was hot after that. Before the relaxation, every week, there were 9 first-hand properties transactions. After relaxation, 140. So 140-odd is the new number. For Tier 1 within one month, we sold 200-odd units, transaction value more than HKD 3 billion. So price stayed at a good level, HKD 25,000. Overall speaking, performance of this market is such that we have confidence. At present, we have seven projects in development, and gradually, they will be launched.
Pricing strategy, in principle, will be in agreement with the markets, but we will not give too much consideration to price decrease. We have confidence. So overall speaking, the Hong Kong property market is one of the hottest property markets in the world. So last year, there was some adjustment. Despite that, we actively acquired the Song Wong Toi Station Site. So our company has long-term and sustainable confidence in the Hong Kong market. Thank you, Carl. Thank you, Carl. Thank you, Mr. Luo. And now let's take the next question, please. Thank you. Next question is from John of UBS, please.
Thank you, Mr. Yan, Mr. Guo. I am Liang Zhenghong, John from UBS. I have two questions. First, regarding the use of funds, congratulations. Last year, in the land market, you acquired a lot of land. So regarding land acquisition and share buyback, what is your thought?
Recently, Saasek mentioned market cap management, and your PB is around 0.3x, ROE around 6.9%. If you buy back shares, then is it true that it will be a better deal than land acquisition in enhancing ROE and PB? That's my first question. Second question is about market share judgment today. You are number two in the industry in terms of sales. So for the whole industry, perhaps CNY 8-9 trillion scale in scale, in the future, how much would be the room for your sales scale? Thank you. Thank you, John, for the question. First question about use of funds. You asked an interesting question. That is a question about share buyback and land bank. Mr. Guo will take the question. For market share judgment, I will defer to Mr. Jiang, our CEO. Okay. Thank you for your question. Now, we are a company.
We are an enterprise. Market cap is affected by internal value of the company, market cycle, market considerations, demand for funds, and also investors' risk appetite. There are many factors affecting it. Saasek talked about market cap management. The goal is to make sure that companies' internal value can be realized, and that should be better interfaced with the capital market so as to boost market confidence. Now, for our company, 688, our internal value is very good. Our fundamentals are strong. We have enough development momentum, and we have strong ability to withstand market cycles. Right now, valuation is unreasonable. It is low. But when it comes to valuation, it depends on both our company and investors' further cultivation and excavation. But there are many factors affecting market cap from our company's point of view. We have strong confidence. Our internal value is not problematic.
Besides, we will be resilient. Concerning relationship with investors, we will communicate with investors and disclose information and identify value points. We will also take on bought investors' comments so that we will be long-term in our views. We will be friends in time. This is something we want, and we want to see. In the process, we have also given feedback and paid back to our investors. Share buyback is one thing. Since listing, our CAGR was more than 10%. In recent five years, dividend was HKD 54.9 billion in total. In 2023, HKD 80. Overall dividend yield 7.8%. All along, we have been insisting on returns to shareholders, paying back to shareholders. Now, you talked about a comparison from capital management point of view. Well, opportunity cost and also whether or not something is our core business.
As a professional property developer, at present, our net profit margin is 13.4%. When we acquire land, that is for long-term stable development. We have the money to develop land. If we buy back shares to enhance ROE and so on to a certain extent, this is just one short-term move in terms of capital management and operation. It cannot be our long-term strategy. It is not easy for us to buy back shares over the long run and do not develop our core business. Right now, our core business return rate and our share buyback ROE present huge investment opportunity. We can better pay back to shareholders. But in the process, we need to emphasize that share buyback is a normal move in the capital market.
In the process, if we come across a stable situation in the market and if there is no change to our shares and if there is decline, we will have no doubt to buy back shares. Besides, I believe that as our majority shareholder during this situation, they will also increase their shareholding. So together with our investors, we will defend our market together so that we can see better internal value, and it will be more consistent with external value. Thank you. Yes, a question about market share. Thank you for the question on market share. We have done our studies, and we have our own judgment. For development and sales of fixed assets, well, it is in a process from the peak CNY 18 trillion, and in the future, it will stabilize to CNY 9 trillion-CNY 10 trillion level.
But at the same time, we have to closely monitor the divergence in the market and industry. Based on 688's plan in the past few years, our investment and sales are focused on 4+14 core cities. That is the most important cities. The sales scale in these cities will stabilize at around CNY 5 trillion, CNY 5 trillion. So in this regard, I think it is more stable in terms of divergence in the cities. From 2022 to 2023, Tier 1 cities and strong Tier 2 cities, market capacity changed only very little. And there are 10-odd opportunistic cities, and the total market capacity will be stable at around CNY 1 trillion. So we have CNY 5.5 trillion-CNY 6 trillion overall market capacity. And when it comes to divergence in the market, those companies taking part in market competition will be fewer and fewer.
Top property companies will become more concentrated. So we are in mature developed cities. If you look at U.K. and U.S., top three companies' market share is 22%-23%. In China, we are moving towards that trend. In China, in major markets, if you look at top three companies' market share, it is around 20-odd%. So in the future, for top property companies' market share in China, it will go up. For top three companies, total market share now is still not reaching 10%. So room for market share expansion in China is still huge. In the future, for the whole market and also for good quality resources, they will converge more in top high-quality property companies gradually. So we will seize the market adjustment opportunities to expand our market share. In the process, we will not simply look at scale as the first metric.
We pursue high-quality development. We strive for profit. So profit margin, profit scale will be placed on top priority. In the process, we may achieve reasonable growth in volume and also effective improvement in value, in quality. So these are opportunities that we will seize in this round. Thank you, John. Thank you for the answers. Because of time, now we will take the last question. Okay. Thank you. Last question is from Stephen of Morgan Stanley. Please go ahead. Management greetings. I'm Stephen from Morgan Stanley. Thank you for giving me the last chance to ask a question. I have two questions. First, about profit margin. In 2023, in property impairments, you did not do anything. In 2022, it is CNY 2.8 billion. So there is a big decline in this regard. So this year, you have not made impairment provisions.
So, for 2025, profit margin, especially gross profit, what will be the impact? And then the second question, commercial properties. This year, you said that for commercial, there is a 25% growth in operating profit is a target.
So, I would like to ask, for China Overseas Group, in the future, for commercial and also development properties, what will be their split or the breakdown in their share? If you look at other peers, many companies give more share to the segment that contributes more to core profit. So, do you have the same goal when it comes to operating revenue? So, the share is rising. So, are you going to increase dividend payouts? In 2023, there is a slight increase in dividend payout ratio. So, these are my two questions.
Thank you, Stephen. Your first question is the impact of provision on profit margin. Mr. Guo will take it.
The next question is about commercial properties, commercial strategy, and our sales strategy. We will ask Mr. Wang to take the question.
Okay. Thank you for your questions. First, about our provision and profit margin. Just now, I answered a question on net profit margin. An investor asked that question. I had given a clear answer. We want to be industry-leading in net profit margin. As regards impairment, first, 688 focuses on 30-odd cities. Especially in this round of decline and adjustment, we focus more on Tier One and strong Tier Two cities, around 18 cities altogether. For these cities, we will select core locations to produce core products. And then our investment will be very rational and cautious. Investment return is also very satisfactory. When our products are launched in the market, customers also like them. So overall risk is controllable.
Impairment is because of our past investment plan, investment strategy, and precise investment and the results thereafter. So in 2023, there was no inventory impairment. My second point is the management in relation to impairment is very cautious. Now, I said just now, if we keep on making impairments in a big amount, then we need to do management at source, especially during downturn. So we have to be cautious on the investment end and also operations end, how to produce our products and make precise investment. That is more important. Of course, in the process, our auditor has audited our accounts, and we have done tests in different units. So we are very prudent in making impairment provision. Number three, in 2024, market condition is such that it is bottoming out gradually. There are more and more positive factors.
In 2025, for the real estate market, there will be stable and healthy development. And these are things that we are happy to see for the whole industry, including China Overseas, future sales, our future return level. So that will be help to them, to these. We hope to see a healthier and more vibrant real estate market so that our return rate, our products, and also issues in relation to impairment, all these will not exist anymore. Thank you. Right. So you asked a question about our commercial properties. Thank you for your interest. Let me introduce our situation. At present, the economic environment still sees much uncertainty. The industry is in the middle between the old and new development. It is in the transition. Now, the market gives more options and opportunities to those strong companies. We have been in the industry for 45 years.
We have been developing in a sound way. We are quite firm in our commercial strategy. We want to deepen our core assets layout. We will raise our development capability. We will inject more momentum into our development. In 2023, there are 30 new operating projects. Overall operation and management scale, 8.81 million sq m, 70%+ of the area is in Tier 1 and core Tier 2 cities. For these assets last year, they correspond to CNY 7 billion of revenue, and they contributed to our company in long-term and stable rental income. For our operating strategy, we focus more on overall layout to enhance our operating capability. In 2023, for office business, we signed contract for 930,000 sq m. Occupancy rate is above 90%. Gross profit margin, 70%+. Operation is sound. For shopping malls, sales was up 66% year-on-year.
Same store, up 22% year-over-year. This led to a big revenue growth of 40%. Occupancy rate, 98%+. As a result, our area efficiency was up 16%. For MAX in Shanghai, it was launched successfully. For long-term lease apartment, well, we focus on high potential areas. We have 13,000 rooms. Occupancy rate over one year is 94.5% for hotels last year. We seized market opportunities firmly. Occupancy rate went up 23 percentage points to 63%. As a result, our revenue grew significantly. In the process, we also continued investment and precise investment. We kept on enhancing our asset structure to improve asset quality. Last year, with sound operation and commercial strategies, new investments in Shanghai, Shihui, and Shenzhen, we incorporated some core assets. Asset quality kept rising, and Land Bank in Tier One accounted for more than 80%.
So to answer your question, in the future, for total and incremental volume, they will both support our commercial revenue, and profit will continue to rise. In 2023, for our light asset scale, it accounts for 17% of the total. In the future, we'll continue to give full play to our strengths, and we will use our overall asset management capabilities and supply chain. So we will make use of our management and technology resources. We will cultivate deeply. We will expand our export of management service. This year is the 45th anniversary of our company. And given the uncertainty right now, we will have to be able to react to changes fast. And that is our DNA. In 2024, for commercial business, we will strive for progress and stability.
We will focus on our 14 five-year plan targets to achieve 25% growth in 2024 in revenue so that we can create more return for shareholders. Thank you. Thank you, Stephen, for the question.
Thank you, Mr. Guo and Mr. Wang's answer. Thank you for joining the 2023 annual results announcement of China Overseas Land & Investment. Thank you for your interest and support all along. During the announcement roadshows, we'll have more in-depth communication. We'll conclude the announcement events here. Thank you.