Welcome to the 2020 whole year result conference for the institutions and investors. We will have the presentation first and then Q&A. Dear investors, analysts, good afternoon, and welcome everyone to the 2020 annual result announcement of Shimao Group. I hope that we have an enjoyable and meaningful afternoon. Please allow me to introduce the management team. We have President and Vice Chairman of Shimao Group and Executive Director, Mr. Jason Hui, and Mr. Tang Fei, Executive Director and Head of Finance. Assistant President and Head of Sales, Mr. Shao Liang. We also have with us through telephone in Hong Kong, Mr. Ringo Chiu. Good afternoon, everyone. I am Andy Li from Investors Relations. We have three agendas. The first is the business result, and the second is conclusion by Mr. Chiu, and the last one is the Q&A. First, let's welcome Ms. Tam. Ms. Tam.
Good afternoon, dear investors. Because of the pandemic, we have to release these annual results through the telephone and the video con call. I'm honored to share with you the business review and achievements, as well as the government governance. Let's look at page three of the slides. This is about the business review. We have been actively pursuing the stringent financial controls and business operation, and enhance the quality of the service and to have research and improvement of our product to resist the risk. In the consecutive four years, we have got a very high-quality development. In 2020, we have got a joint work, and we have realized CNY 303 billion of our sales revenue in 2020, with year-on-year growth of 15.5%, ranked as top eight of the industry, with the increase rate of 109%.
The average selling price is CNY 17,500 per sq m , which is a very high ranking among the top 10. This is also recognizing the preference from the market. The revenue from the group reached CNY 135.35 billion, with an increase of 14.1%. The core net profit is CNY 19.14 billion with a year-on-year growth of 24.9%. We also can see the distributable profit, core profit for the shareholders. It is increased to CNY 15.22 billion with year-on-year growth of 45.2%. We also have reached the benchmark requirement of the government, which make us to be one of the three camps, and with the comprehensive financing cost for 5.6%.
The distributable dividend per share is HKD 1.8 with year-on-year growth of 24.1%. The end of 2020 proposed annual dividend is CNY 1.1 per share. We look at the revenue of the group in the three years from 2017 to 2019. We have a consecutive annual growth of 20%. In 2020, we also have got 21.4% growth, which is CNY 135.35 billion. The gross profit is CNY 5.5 billion increase, and the operating number is CNY 39.67 billion. The gross profit margin is 30%. In 2020, it is 29.3%, and the core profit attributable to the shareholders have an annual growth of 20% in the past 3 years, and in 2020, it is 17.2%.
If we look at the property equity disposable, the growth of the IPO-based service, which is again, from the disposal of the equity, is CNY 15.22 billion. Dividend per share is HKD 1.8. It also includes a special dividend of HKD 3.1 per share. The payout ratio is over 44%. Since 2016, in the past 15 years, we have got consecutive dividend. The accumulated dividend payout is HKD 35.19 billion, and the per share dividend is accumulated HKD 10.94 billion in the past four years. The payout rate is over 40% for consecutive four years leading the industry.
Dividend yield according to the 24-year dividend, which is 7.29%, is far higher than the average of the industry, which shows the profound value for the investors. Also, we have the ample cash flow with the continuous growth in the cash collection. Since 2017, we have four years of high quality development with very good cash collection. The stable cash collection in 2020 is CNY 225.2 billion. This has given us ample cash flow. At the end of last year, the cash bank deposit is CNY 6.84 billion, and we have a year-on-year growth of six, which is having the deposit of CNY 68 billion, which has year-on-year growth of CNY 8.85 billion, year-on-year growth of 14.8%, and we also have six months rigid payment. The safety of the financial cash flow is already guaranteed.
The total borrowing of last year is CNY 145.15 billion, and the total equity is CNY 152.49 billion. We also have consecutive nine years net gearing ratio under 16% and decreased to 50.3%. If you look at the requirements of the three red lines with the rating upgrade, we respect the regulations and the control proposal from the responsible authorities. We have the leverage controlling and secure revenue, and try to reach the requirements. We have already achieved these requirements of the three red lines, and we are now in the green camp. The liabilities to asset ratio, excluding the receipts in advance, is 68.1%, and the net gearing ratio is 50.3%. The rating from home and abroad institutions is quite favorable. Moody's and Standard & Poor's have changed the forward to positive, and Fitch is stable.
The domestic also have given us AAA, which is the highest rating in the domestic. Page 9. For the cautious financing, we have got the prudent financing to maintain the financing edge. We keep the rational debt structure in 2020 for the one year. That's due, it is only 25%, and bond issued in the public market is 43%. This is quite a balanced, stable, and comprehensive cost of the financing, is 5.6%, which ranks number one in the industry. The borrowing of 63% is the fixed rate ones, and this has given us advantage of the financing cost. With this, we pay great attention and make use of the long-term funds from home and abroad, and we have a corporate bond, which is CNY 4.5 billion and CNY 3.1 billion with an annual coupon rate of 3.2%.
The US dollars 10-year bond is $872 million, and the coupon rate is 3.45%. We also have a very stable cooperation with the institutions from home and abroad. We also have the undrawn financing quota, which is CNY 70 billion, and we have a diversified development and innovative financing structures. We look at the controlling. We see the risk resistance improvement. The market is unexpectable in the last year, so we try to keep the stable and robust policy and the financial policy control, and also have the prudent financial austerity policies. This is quite valuable in the long-term development. We pay great attention to the cash flow management. In the capital management, we have great experiences.
On the one hand, we require the positive cash flow and try to control the payment based on the revenues and the cash collection, and also pay attention to control the land acquisition, have efficient acquisition, and utilization of the capital. Also, we have the ample mortgage quota. Last year, we have strengthened the cooperation with the headquarters of different banks, and we also have the pre-planning for the mortgage quota last year. This is allocated to the different quarters and broken down to the different areas. We also have the centralized financial risk resistance. We have stable and declining leverage level and pay great attention to the home and abroad risk detection, and also try to keep the stability of the profit-making and revenue, as well as operation. We also have digitized and systematic management.
We are the first developer in China to fully adopt SAP. We have 8 years culmination of it, and have a comprehensive digitized and systematic financial management. We also have a stable and standardized intelligence. Now we have the shared center for the finance. Now we have the robot to help with the financial management, and with standardized and intelligent operation keeps the efficiency of us. Now we are strengthening the working actively with the market. We have the IR services are continuously improved and provide value to them. The average share price is HKD 29.4, which is the record high in the market. We also have the close exchanges with the market. Last year, we have the roadshow and the concall with our investors despite the pandemic. This kind of interaction is very important for us to exchange more with the capital market.
We also have got the preference from the capital market. The market value is increased further. In April, Capital, the long-term investor, has a subscription of the shares of the company. In May, Sequoia and Tencent also had an investment of altogether $244 million. We also have the Hong Kong Gold Stocks Best Real Estate Company and the Golden Kirin Hong Kong Stocks Value List and Best Investor Relations Case, and also 2020 Brand Value List in Chinese-listed companies with the best brand in IPO.
Next, about ESG performance. We attach great importance to the ESG, especially as we are realizing the development of business, but also show our social responsibility. Last year, we have been successfully included into the HSI ESG Index, and also MSCI has adopted from B to BB in MSCI ESG rating. Also, we are ranking as the leading position out of the domestic land developers. Page 13. We are also implementing ourselves to go in green, establish the green environment, build excellent the environment as well. We are adopting the high-tech and also environmental saving into the R&D and the construction, as well as operational projects as a part of the lifecycle management.
We have 348 green building as a category with the total GFA of green buildings reaching 64.63 million sq m, year-on-year increase of 28%, in which eight buildings has been certified either the LEED Gold and Silver certificates. Also, we have successfully established a green financing framework. We have obtained the green certificates and secondary opinion from the independent third-party institutes, ready for the issuance of green bond in the future. Next, about CSR. We honor CSR to help building a better society. When it comes to the CSR, have been working very hard to fight the COVID-19. At the very first time, we have donated the suppliers the facial masks, PPE, and also we have witnessed the Hilton Hotel in Wuhan, undertaken their work.
We have reached out to 22 million for our cumulative beneficiaries, with the cumulative donation of more than 1.7 billion CNY. Apart from that, we have shown, especially the cultural commitment, especially we have built the CSR, the museum. We have also focused on the further inheritance and the promotion of our culture. Next page. We are working very hard also on the building the good results in terms of the anti-corruption. We have successfully launched our alliance and also on property, and also in 2020, have won the award. Internally speaking, we have worked out our other staff professional ethics standards 2.0, clearly define regulation reliance. We have also promote the property and secure also all of our stockholders and with a very good report mechanism. That is the end of the performance. We are going to invite Jason to have the business review.
Thank you. I am Tang. Good afternoon, everyone. It is me to give you the business review, especially also about future outlook. 4.1 first. The group's contracted sales amounted to CNY 300.3 billion in 2010, a 15% year-on-year growth, ranking number eight in the industry, with very high quality, stable growth. The average ASP was CNY 17,500 per sq m, the same as that of 2019, and ranking number two, benchmarking the top eight players. The amount of cash collection was reached to 225.2 billion, a 15% year-on-year growth, in sync with the growth of our contracted sales. We plan to have CNY 500 billion saleable resources at the beginning of last year with a target of sell-through rate at 60%.
Based on our market assessment and to secure the premium space advantages saleable resources and the strategic adjustment of supply, the final and actual saleable resources amounted to CNY 480 billion. We have reached 63% sell-through rate, and even the total resources are declining, but we increased the sell-through rate to secure the robust development. In the Q1, we witnessed a slight decline of contracted sales accounting for 12% out of the total performance, which was 4% year-on-year decline than the same period of last year. We started to bounce back and recover. In Q2, we have caught up with the same performance of the first half of last year. In Q3 and Q4, we have made great momentum to reach the sales volume of CNY 100 billion respectively, secure the annual result of CNY 300 billion. Next page.
We have the top three, especially the main strategic city clusters, recorded CNY 170 billion contribution with very strong capacity growth, especially for GBA. We have made a very good presence in advance with sales of CNY 45 billion, doubling our performance. The Jing-Jin-Ji benchmarking products are growing with the total output of CNY 33 billion for Yangtze River Delta, and making a very deep presence with the output performance of more than CNY 90 billion. Totally, compared to 2019, the three above-mentioned areas have also increased by more than CNY 10 billion, while the first-tier, second-tier, and advanced third and fourth-tier business contributed to 90%, 3% ticking up compared to the same period of 2019, high capacity city contributing a lot. Out of the top 10 core cities, the capacity contribution has reached CNY 150 billion. Next page.
At the same time, in 2020, Shimao Group continues its dedication commitment on high quality products, and we have been ranked among the landmarks out of the other lists of different cities. In terms of the urban landmarks, Shimao Shenzhen-Hong Kong International Center topped all apartment projects in Shenzhen, and it was among top three apartment projects. For Nanjing Shimao, out of China, ranked number 1 in income of units sold, and the value for apartments was over CNY 4 million in Nanjing. In terms of premium projects, we have Shimao Xishan LongYin, and thanks to its high quality projects, we have reached a record annual sales of over CNY 5 billion, ranking number one in Haidian district.
In terms of the villa sales, for Shenzhen, we have Shimao Tianyue SwanBay and Beyond the Sky ranked number one in terms of the luxury property with CNY 10 billion in Guangzhou, and ranked number one in terms of the sales of properties was worth over CNY 25 million in Shimao Guangzhou Riverside. In terms of the benchmark we have, including the Zhuhai Port City, Zhuhai Marco City, it ranked in the Q4 CNY 3.6 billion, which becomes top one. In terms of transactional commercial office buildings, Jiangmen The Blue Bay ranked number one in terms of sales amount and units sold of culture tourism projects in the second half of last year in GBA. Next page. At the end of 2020, we have already reached over CNY 1.38 trillion in terms of land bank, covering more than 100 cities in China.
It has offered a very strong support to our rapid development. At the same time, we give full play to our influence as a developer, providing a sort of guarantee for the sustainable development. We also leverage our product power and the capitals. We have access to high quality land resources in the first half of last year and avoid a very highly competitive fluctuations of land market. In the second half of last year, we have maintained a very steady pace of land acquisition and also to have very good advantage in terms of the reserve of the land and the cost. We still focus a lot, especially, not only the coastal economically advanced region, but also the key inner areas make deep presence, deep dive into the core cities. 72% of our projects are in GBA, YRD.
These are Northern China as well as Fujian, where you have tier one, tier two cities. Those economic advanced region with very strong risk mitigation as well as product premium capacity. We have diversified ourselves in terms of land acquisition to have the cost of land under control and a lower operational cost offer great space for further premium for our products. The group acquired a land bank of 81.75 million sq m . The average land cost was CNY 5,000 per sq m, accounting for 30% of the ASP. Next page. in 2020, we have very strict control on pace of land acquisition. We give full play to the advantage of word of mouth, collaboration, maneuvering, have access continuously to high quality land.
By the end of last year, the property management portfolio to cover 100 properties with the total land price of CNY 90.8 billion, with the GFA of 15.35 million square meters. The newly acquired land witnessed 60% from tier one and tier two cities, and we include advanced third and fourth tier city for 86% contribution. Next page, please. In 2020, in terms of the management fee and the selling marketing costs arising from property sales accounted for 3.27% of contracted sales in last year, which was still very competitive in the market, regardless of 0.56% tick up. The market is under a very high competition with ever-rising commission costs, which may have some impact on the fluctuations of these costs and expenses.
Into this year, we will further strengthen more online sales to attract the traffic and also try to lower the administrative and also the channel expenses by digitalizing ourselves on the operation, increasing productivity, and also have higher administrative accuracy, and lower both the cost and expenses. Next page. We have been successfully facing up the COVID-19's impact with the successful IPO of Shimao Services. The commercial and tenant business has been more and more comprehensive and with very high growth in terms of our rentals. We have give full play to the Shimao Hotels, who have not only got a very successful business for the asset heavy business, but also to strengthen the asset light based on operation with 90% completion rate. The three business hopefully to reach CNY 15 billion as our target of annual business and to maintain the rapid growth in the next few years.
Next page. In terms of the total sellable resources of this year is 30.96 million sq m. Excluding the sellable part of the newly acquired resources, based on the ASP of 18,000 CNY per sq m , it is expected to have the total sellable resources of 550 billion, with abundant sellable resources. Based on 60% of the sell-through rate, it is expected to reach the contracted sales of more than 330 billion in 2020 from the portfolio of our products. We can see that for the residential property accounts for 75%, which is 2% tick-up compared to last year. For the urban complex at our core cities will be launched from the breakdown by city tiers. Development of sellable resources within one year accounted for 70%. 87% are located in this first, second tier and a strong third and fourth tier with abundant sellable resources.
This year, we have maintained a very well-balanced pace of supply, which can support the hyper-growth of our performance and to realize the business growth of our performance this year. Next page. We will accelerate, especially the land dividend with preferential rock at GBA, YRD, the Western Taiwan Straits Economic Zone, Jing-Jin-Ji, with the layout of more than 390 billion. Out of these core city clusters, we will have over 60 halo of star projects to be launched into the market, which facilitates realizing the annual target fulfillment. Next page. This year, we are adhering to the quality development direction, and the group will press on our very lean management with digital marketing, a shrewd and a pragmatic approach, enhance our productivity, consolidated its core competitiveness. We are focused on digital transformation.
Especially, we have already used a group of tools for online and also digital analysis system assessment and decision making, and especially to cover the whole process of customer for track and trace and to do analysis across the whole life cycle of transaction, especially to offer support from the group to region to project specific management and to further offer justification rationale for the frontier marketing flexible adjustment of our strategy, give full play to the advantage of digitalized management tool and increase our management efficiency as a whole. Next page. Especially from the Chinese New Year, we have successfully working very hard. Even our Vice Chairman has taken all of our management team to have very deep dive into the market to identify the direction and try to address the pains.
During the eight-day Chinese New Year holiday, we have successfully reached the sales of over 800 million, which is leading across the whole property market. We are scrambling for the performance from the very beginning of Chinese New Year to be across into the whole year. In Q1, the overall completion of Q1 this year witnessed a great tick-up in Beijing, including Shimao On the Air, Fangshan, Sunshine Wuhan, Zuoling, Wuhan Shimao Splendid River in Q1 has reached a quite good business performance. Let's say till today, that's from the overarching business performance of March exceeded 30 billion. We still have one day to go to make the overall plan and performance fulfilled. In terms of the completion of Q1, we reached 20% year-on-year, 8% increase compared to that of 2020.
This is a very high quality and a robust beginning. We are sprinting for the high growth, especially high quality growth for consecutively five years. Also for our business successfully has been buck the trend and outperformed the market, realizing double-digit growth. First of all, Chengdu Shimao Festival City and the one in Xiamen and also in Hangzhou. These are the 300 Shimao Tower will be launched into the market as the iconic and land market, which justify the further improvement on commercial operation. Chengdu Shimao Festival City is expected to witness the start of commercial operation at the end of April. The mall, including the overall area, will be close to 180,000 sq m and 100% completion rate of this selling.
In the Binjiang Core District, Hangzhou Shimao Tower, it is predicted to be opened in December this year. The total area is 240,000 sq m, including the commercial and office. This will be an icon in Hangzhou. Next page, please. For the hotel part in Changsha, the Hilton Changsha Riverside and the Yuluxe Changchun Lotus Mountain will be launched. We also will see the light asset management going more and more. For the Shimao Services, last year, it successfully got the IPO, and it has got double the revenue and profit. The quality of growth is very high. The revenue has a year-on-year growth of 102%, with the structure optimized. The community added value service is improving, and non-owner value-added service is developing in a robust way.
The parent company has given very diversified and model and channel expansion to extend the support given to the development of Shimao Services. By the end of last year, the GFA has an increase of 99%. Looking at the development of the business operation, we have a very robust development, and the service ecosystem is quite stable. We have diversified management business units and non-residential share is increasing every year. Now it is 40.5%. The light asset ability is increasing and the market expansion is developing very fast. Now the third-party fitting area is about 23 million sq m. The core competence is improved.
The development of the property service is also getting increased comprehensively. We have the pre-investment accurate research result and integrated management after the investment. For Hailiang and Sanyuan Management and also Yuetai, have a very good performance in the return and profitability. Can I dismiss my report? Now, let's welcome our Vice Chairman Hui.
Last year, we have suffered from the pandemic impact. We have seen the difficulties in the business in the beginning of last year. Since the second quarter, with the government support and with our own reaction, we have seen the rebound of this market. For the firsthand market in the real estate, we have seen a record high last year. We also can see the liquidity in 2020 is still rich in the real estate. In the second half of last year, we have seen the three red lines. After that we still can see the land price is rising. For the competition among the real estate companies, it is quite fierce. Last year, Q4, we have finished a revenue of about CNY 100 billion.
As mentioned by Mr. Tam, our revenue and the attributable net profit, the gross margin and the gross margin ratio are increasing very fast and the performance is very good. For the dividend and the dividend per share and the payout, all this and also the non-invested revenues are constantly rising. The advantage of the company, including the good and robust management. We have seen that in the past nine years, we have kept it below 60% and now it is at about 50.3%. Also for the domestic and overseas, we have got a very good headquarter to headquarter back writing for us. For the cash collection, we also have a very good result. For the operation, the net profit is very important.
The attributable net profit should be our major indicators and all the expenses like the land acquisition and the operations, these are also related to the cash collection. We also try to pay more attention on the light asset development. We also see the strong capital control. Also in the mid and long-term development, we will have a good incentive and try to have the enhancement of the continuous cohesion of our incentives. For the product, we will have the industry-leading customer satisfaction and product quality continued. We also have a lot of iconic architectures and buildings in different major cities in China. In 2021, since we are facing the control demand, the contracting and the cash collection and also the profit-making improvement and the refined management, these are very important for our development.
From the group level, we also need to have the management standard downward. Every month, we will go for the on-site visit to solve the hands-on issues. We also have the monitoring and controlling for the financing and all the others and try to fulfill the quota and outperform the target we have set. Now we have completed a revenue of CNY 30 billion. In the first quarter of this year, we checked the number in the market. Because of the pandemic, we have seen an increase in the real estate performance. Compared with the last year, we also have seen an 82% year-on-year growth, which ranks the mid and higher part of the industry. For the land reserve, we have CNY 1.4 trillion and that is the biggest share is in the Greater Bay Area, and that is CNY 400 billion.
In Yangtze River Delta, that is CNY 300 billion. These are the hottest areas in the land acquisition. The land price is very high. You cannot get a good profit and maybe negative profit in the land acquisition. In 2020, we have seen the newly added ones, but we have not done the specific calculation. But mostly, they are in the tier one and tier two cities, and we also have a very rich in the non-residential. For the non-property development, we have got a very good result despite the hospitality and hotel operation because of the pandemic, as you all know. But compared with the budget, we have completed 99% of the total. For the hotel, it is about 90%, and that is also good and up from the average in the market.
Altogether, we have a revenue of CNY 8.63 billion, and the completion rate is 99%. This year, the target is CNY 15 billion with a year-on-year growth of 74%. We hope that the non-property development should be around close to 10%, and maybe in the future, 15% or even 20%. Look at the development of the different companies, like Shimao Services. In the past two weeks, we have got the annual result announcement. In the past years, we have got consecutive fivefold development. In the future years, we also will continue this rate. For Shanghai Shimao, we have seen a stable and robust development for the commercial and also for the target of the revenue. It has a long-term goal of 30%. This year, the contract sales will be over 40%. That is also a very big increase.
It is very active. For the long-term value, the first is we will keep the stable and robust development, and the net gearing ratio should be below 60%. Now we have got the green camp record in the three red lines checking. For the gross profit, we also will keep it stable. For the growth, we hope it to be stable and sustainable. For the non-property development, it should develop in a high growth rate, and the dividend will continue to rise. This is the enhancement task, like the product, the operation, and the service. For the organization, we will continue group and strong regional corporations, and we will have the extended management downward, internal promotion, and the demotion. For the responsibility, we will look at the green and sustainability and share development results with investors and also leverage the overseas talent to promote the country's development.
The vision is industry leader and change users' lifestyle and the smart creator of the better life to use technology to change people's way of living. We will continue to achieve this. Thank you.
Thank you, Vice Chairman Hui. Now let's go into the Q&A session. You are welcome to raise your questions. Please listen to the telephone assistant and raise your question when you get the signal. If you need to raise a question, please press star, and after that, press one. To close the streaming when you raise the question. Also please keep the speed of your question and maximally two questions each. First, let's welcome our first question raised from Citigroup.
Hi, Jason. Hi, Jason and our colleagues in the management team. I have 2 questions. First is about the sales. For sales last year, a lot of things happened and also impacted by the three red lines. In the beginning, the mid of last year, the long-term and the mid-term goal is also having the impact. We also have got the concall for the updated goal.
Now if you look at the current operation for the sales, if I look into that, for the 10% as you mentioned in the sales, do you think it is a comprehensive one? Is it a conservative goal or do you have a higher expectation? Second is that maybe for a longer term, like the midterm, maybe from 2021 and forward. If there are some chances to do the changes on the expectation and goal after November or December, that is the goal for the revenue. Another is for the land acquisition.
In last year, the fierce competition is unprecedented. Maybe we have not reached the expectation we set for ourselves. For the three red lines and the other influences we have got, will that have an influence on this year's land acquisition? Can we have a higher land acquisition result for this year? Do you have a goal for that? For the gross profit, can we have a better situation in 2021?
The questions first are for the sales. Mr. Shao is supposed to answer this question, but since the investor is paying attention to two aspects, one is that in the fourth quarter of last year, I have set a sales goal that is over 10%, and the market reaction is quite fierce at that time. That at that time was a reflection of the three red lines and the government control intention on the real estate market. In last year, after the three red lines in the fourth quarter in the Bay Area and in the Yangtze River Delta, we have seen the land price is increasing very fast.
After the land acquisition, you will find that there is no profit or negative profit. This goes to the second question, that is the land supply for the 22 cities. This is also for the stabilization of the land price. For the 10% offset last year, it is a rational goal because we said minimum 10%. You mentioned maybe it is conservative, but we have to look at two aspects. The first is that the government policy, will there be new changes or new policies influencing this market? The second is that we can look at the 22 cities with the concentrated supply to see whether or not the land price can be rationalized. If we look at the first quarter, yes, we think this goal is conservative.
Yeah. For Q1, we all complete 15% out of our total performance, but that was conservative. This year it is expected to reach over 20%, which means it's a year-on-year 82% growth, which is higher than our expectation. Our expectation for the first half of this year in terms of the overall sales volume of the property market will reach over 8 trillion CNY, which is much more than that in last year. If you can maintain the level in the whole year, you may even reach maybe 17 trillion CNY, which means it will not be less than that of the whole performance last year. It will be dependent upon especially the economic landscape as well as any new regulatory policies on that. It's about a centralized supply of these residential lands. Overall speaking, actually, the concentration will going higher among the developers.
But in terms of the total growth rate, based on the scenario of 17 trillion, will not go that fast. We can see in terms of the total sales area will decrease. Nowadays, the ASP is just 10,000 CNY out of 1.7 billion square meter scenario. In the next five, two years, in terms of the area, will decline maybe by even 30% -4 0% to be aggressive, but turn back to 1 billion to 1.2, 1.3 billion. The ASP will be 13,000 - 14,000. So it is still from like 1.5 billion - 1.7 billion, but the competitiveness will going more and more fierce. I think the leading developers will have the advantage. And if you can maintain double digits of more than 10% growth, it will already be a very good result.
The 10%, I mean, above 10% is based on my personal judgment. Even for the top 10, it is less than 10% this year. So we are on the path to ensure that in terms of the target we have set up. It's a quite rational, quite justifiable arrangement. Question number two, for land, the 22 cities under centralized supply of this residential land is what we are looking forward to seeing. In the first wave, it will start from after April or May. It will be divided into maybe three phases. Maybe the first is from the April and also the May. The second is from the summer, the July, and also the August, and maybe the third one will be end of this year. We have prepared sufficient and ample the capitals. Maybe on the same day, there will be tens of the parcels under centralized supply.
Hopefully, the land market will be more rationalized. Yeah, that means in the future, our expectation or assumption will not have such a huge surge of price. In Yangtze River Delta, some people haven't accessed to a land with even the rate of minus figure, even below -10%, below. Yeah. So it is not a healthy and a sustainable result. So Beijing central government want to stabilize the land price by the centralized supply of residential land to stabilize the expectation, then stabilize the ASP of the house. I think as a big player in the field, it's a good opportunity to secure a very robust and a healthy financial performance. We are waiting and seeing for these opportunities so that we can participate more into these opportunities. We may have more chances of having access to the quality land.
In terms of our target, as we reiterated in the past few years, land acquisition targets will be less than 50% of our sales volume and 40% in terms of our cash collection, which aligns very well with the national government backed policies, especially under the three red lines management of developers. You must control the 40% in terms of your cash collection level, in terms of your cap of land acquisition. And we will control that and manage that accordingly. Thank you for both the questions and answers. Yeah. Next question, please.
We're very glad to have Chen Song.
Yeah, good afternoon. Congratulations again for this amazing performance from CITIC Securities. I'm the analyst for property markets. Two questions goes to you guys. First, well, for the current, especially the management organizational structure are a little bit different to last year. In some regions, there are some streamlined or even merged. What is your arrangement of the regional management and also your headquarter where you have witnessed some appearance of new regions? The second is more about the policy piece. We are talking about the three red lines and also the concentration management of the loans, mortgages. It will also pose a lot of challenges for the cash flow management. What is your outlook on the overall competitive landscape in the market and this year in terms of your financing? Were you prepared or have some readiness aligning with these new policies?
I may try to answer the first question. For the second question about the three red lines, 2021 financing centralized management will be answered by Ms. Tam. Indeed, last year, we are especially streamlined management. Especially we are having a strong ranking.
We call it a strong ranking competition to have promotion and demotion. For Middle China region, maybe partially thanks to COVID-19 and the Shandong District witnessed the reorg. We have the newly appointed and young vice chair or vice president under the leadership of a veteran in Middle China. It will be led by Zhejiang, and Shandong will be led by Jiangsu and Shanghai. That is the organization. We are checking the Q1 performance. It has realized a doubling performance year-on-year growth. Across the group, our average growth rate was above 82%. We will keep our tuned on this internal promotion and demotion. For actually demotion, underperformers will be merged. If you are going very well, it will be promoted into a new region. These two underperforming regions nowadays, maybe will also be spin into two independent one after we have finished this coaching part.
The second, in terms of headquarter and the region. Hopefully, headquarter is not only sitting in Shanghai. In the Chinese New Year, we visited across the country. We want to deep dive into the frontier, address the pains. We will go on site to especially learn about the challenges. From the headquarter, we encourage people to deep dive into lower tiered regions, increase the productivity, address the regional bodies issue. We want to have strong regional companies management, extending our management downwards. If they have done a great job and outperforming, we will delegate more authorities. Hopefully, they will know more about deep dive into cities and know about the future development of cities. That is my answer to your first question.
Thank you. Good. For three red lines, as well as concentration of the mortgages. We can say, for Shimao Group, we dedicate ourselves to very robust financial policy and quality growth. For the three red lines, in terms of our special KPIs, it is regarded as internal finance management. We manage very well our total size of the debt. We continuously speaking, the gearing ratio has been maintained below 60% for consecutive nine years. We are green camp now. We want to maintain green camp. This year, 2021, we would like to strengthen our management over the following aspects. Number one, as what Shao has mentioned, especially talking about the cash collection, strengthen the special monitoring on the cash collection and claw back the capitals to reach a positive operational cash flow.
The next is also to strengthen our capital structure and mix to balance a very steady increase of profitability, especially to implement the big aircraft strategy and to diversify our business development based on the platforms and increase the equities. We want to optimize the debt structure and lower the financing cost and increase the overall management, and especially for the mortgage concentration loan. The concentration, it will be really an upgraded part of a long-term debt management. Also for the three red lines, the three red lines is to have the constraints over the loan growth. While for concentrated management of the loans, starting from the supply side, for quota management. So for the property management is developing based on a logic shifting from high leverage for scale, but more robust and comprehensive management. While for the concentrated management of the loan, we focus on the mortgage quota.
Starting from last year, we already work with different banks headquarters to headquarters strategic management, and we are ready already to have a good connection to have sufficient mortgage quota for this year. In terms of the allocation or distribution of the mortgage quotes, we divide it by breakdown to quarterly by regions, by key projects to secure the successful release of the mortgage quota. While for three red lines policy, we will manage the capital demand in a very continuous manner, especially to have more refined and lean management of property firms. It is not only about lower level of loans, but monitor on quality growth. We believe that under the three red lines strike, the property firms with very high operational productivity will have more opportunities.
As our Vice Chairman Hui has mentioned, we will have strong capital management, strong operation, strong brand management to give full play to our own advantage, and especially to secure the balanced growth of all the KPIs and also make progress while maintaining stability. Thank you for the questions and answers. Let us move on to the next.
Next, Chloe from Morgan Stanley.
Thank you management. My name is Chloe from Morgan Stanley. Also, two questions goes to the management. The first is that we are talking about we have multiple platforms in the market now, especially Shimao Services in the future, and a potential commercial management to be maybe a potential spin-off in the future. How do you balance the resource allocation priority of growth among different platforms you have? You have the development, self-owned, and property manager. What is your mid to long-term growth target?
The next is about gross margin. Here we find from the peers, and actually all the pinch of downward pressure, but our gross margin remains very high. So I am just wondering about the future trend of the gross margin, and especially for the sales and outstanding ones, and especially how you will maintain such an upward, very high level of the gross margin. Thank you. Two questions.
First, we have three platforms. The mother company went public in Hong Kong. Shimao Services went public also in The Stock Exchange of Hong Kong Limited. Then Shanghai Shimao Co., Ltd. went public in Asia. It is very good to have three players go online and go public, and to have a very good partnership and to have mutual enablement.
For example, for our main business for residential properties, including hotels, and also Shanghai Shimao is more for office building, the commercial buildings, et cetera, and Shimao Services focusing on property management. We have a lot of M&A, we have a lot of other projects enable the service offering from Shimao Services, which may expand their management scope and their management coverage. While working with Shimao Services, we may have access at a low and very good cost of some of the urban complex. Even Q1, the price was skyrocketing. We had access to much less land, but we have access to land at a bottom price, very good price in Hangzhou. Especially at the intersections of two metro lines in Hangzhou, we have access to these land parcels at a very great price. In terms of the profits.
Net profit, as we already said, is above 15% net margin, while gross margin is also above 30%. Very good quality product. We may work with each other in mid to long run with our different platforms. All of the three, the players are working with each other in a collaborative manner, in a mutual beneficial manner. In the future, we will have more than that. We have asset light in commercials, in the hotel. We hope actually to spin them off to go IPOs respectively, but it still takes some time. Nowadays the volume is not that big enough. In terms of the non-property development income, it grows very fast. It is expected to reach above 74% in terms of the growth. The next question for mid to long run target.
Mid to long run, we mentioned about Shimao Services in the past three years reaching a fivefold growth. In the next three years, it is expected to also reach five-folds. While for the other, including Shanghai Shimao, their sales revenue increased by 40%, rental increased by 30%. For hotel business, it is expected to reach above 30% CAGR. This year, 2021 may reach maybe 50%-60%, thanks to COVID-19's impact. The figure in 2020, the baseline was low. This year, as everything is recovering and we have a quite big growth, it varies from city to city. Domestic speaking, it will be better than that in Hong Kong. For mid to long run target objective, we hope, especially for the non-property development business, especially for asset light business, will outperform that of our property business. Hopefully, the ratio contribution will be higher. Last year, it was only 6.8%.
This year, it is back to be close to 10%. In the future, maybe even reaching 15% to close to 20%. In terms of the gross margin, as we already said, we are at a high level in the market. In the past few years, it is at around 30%. Last year, it is more than 29%. What about the future? We are looking forward to the same level, maybe 1% or ±2% . If the market is good, and if there is no such a very constraint on the land and liquidity would be better, maybe even in the future, 29.3% will be able even grow by 1% or 2%.
If the market is more stringent and when there is a closer control, there will be a downward about 1%. But it will be within the range of 29%-30%, so this is a foreseeable future. The explanation of that is that we have CNY 1.4 trillion land reserve. They are mostly in the Greater Bay Area and Yangtze River Delta. These are the hottest places in China for the land acquisition and the land price. In these 2 areas, the expectation for the future is very high. The government is also paying great attention to that. We also have got our own control on the land reserve there, like we have to control the sales and also the price control. We are paying great attention and try to find a countermeasure on this.
It is foreseeable that the following up strategy, the advantages in these 2 areas is quite great. The large land reservation in these areas, mostly in the residential and the 1-year period. The sell-through will be very good. The efficiency is also quite important. We have the leading in the industry. Last year, we have got higher expenses, like the channels, the distribution, as Shao Liang has mentioned. This is a slight increase, but still, we keep a leading advantage in the industry. We also have got a very good gross profit margin, and we are confident that we can keep the leadership in this industry. Okay. Thank you. Our investor from Morgan Stanley. Next speaker, please. Next question, please. Let's welcome the guest.
Thank you very much, Westfield Chu. I am from real estate of the Guangdong Development Bank Security.
I will ask about the sales strategy and the land acquisition investment and the capital expenses. What's the percentage of it in the total capital expansion, capital expenses? What's the focus on the new project acquisition? Second is about the investment. The concentrated land supply for the, like you mentioned, the 22 cities, the overlap of our land acquisition is in accordance with the government incentive. But if we don't have the good acquisition, maybe the impact on the project in the market will be very great. With the Shanghai Shimao planning, you also mentioned that the investment on TOD is to be strengthened. How about this Shimao Group planning?
I think the question is based on the sales increase in 2021. We already have a clear goal. In the first quarter, we have outperformed the performance of last year, and the year-on-year growth is 82%. Of course, last year was impacted by the pandemic, but if we continue this growth rate in the second half of the year, we think it is very good. For 17 trillion CNY, this will be highest level in the industry. About the land acquisition investment, last year and the beginning of this year, we have seen the hot cities, the land price is capped at the highest level. As I have mentioned, the Bay Area and the Yangtze River Delta. We see that two sources of investors. One is a major SOE, and the smaller enterprises in the industry, they are more active.
For the investment plan, we will closely look at the guidance provided by the government, and it will be controlled within 50% of the sales revenue and 40% of the cash collection. For the opening and the completion of the projects, we have seen a balanced growth, double-digit increase in the past years. Maybe years ago, that was between 40%-50%, and now it is accepted at 10%-20%. The sales is a little bit slowed down. Maybe for some year, we will see the commercial projects opened in Chengdu, in Xiamen, and in Hangzhou. This year, we will have delivery for these projects. The rate is higher. Next year, we have a big project in Nanjing to be delivered. In 2023 and 2024, the concentration might be in Zhuhai and Shenzhen.
We can give you the specific number after this press conference. For the concentrated supply of the land, it is only expectable in maybe Hangzhou this year. in April, we will see the concentrated supply in Hangzhou for 40 projects, for 40 pieces of land, and maybe next will be in the other region. The government hope that this can help to stabilize the land price, but we are not sure about the result of it. We are paying close attention to this and actively participate in this. We may not necessarily acquire the land, but we will participate in the meetings and try to see the opportunities. But it is not possible for us to acquire the land with a very high price. Last year, the goal that I have given to the investors was seen as conservative. But this year, I will keep this prediction.
For example, our plan for this year is to get 100 pieces of land. Maybe it is lower than expected, 120 pieces of land. But now we are more cautious. Our pieces of land number is much smaller than expected, but the profitability for the land we acquired are good. We can keep the gross profit margin of 30% and net profit 15%. It is kind of difficult. You need the long negotiation, and you also need to have the long-term investment on the project, like the commercials and the supporting facilities. Also, we will pay attention to the TOD development. This year, currently, we have over 10 TOD projects, and we hope to increase several every year. Like the other ways of land acquisition in the Greater Bay area, the retrofitting and upgrading of the urban area is a way out.
We have got some of the lands, but not yet acquired now, because it will take five years or even 10 years. We invest together with other enterprises. They may be early investors, and we follow up with them. We will maybe need four, five or two years at least to have the monetization of this investment. In the second half of this year, we will have the land reserve in this area, and this will make the contribution on the profit next year or the year after next year. This is a long-term process. The upgrading of the downtown area, it is not included in the management. Maybe we can do something in the financing market.
And also for the routine, like the bidding, we will work together with other enterprises to see whether or not there are opportunities and whether or not there are investment opportunities for the land. Now it is 18:24, but there are a lot of investors. Now we have two more calls for the question with us. It is appreciated that each one of you raise one question.
Now let's welcome Yolanda from the United Securities.
Jason, can you hear me?
Yes, yes, I can hear you.
I looked at the Shimao Group share price. It is a correction of 40%. Maybe on the one hand, it is a policy impact, and investors are also concerned about the future. Since last year, the profit has got a change from double digits. For the double-digit growth, can you elaborate on that?
For example, this year or next year, is there a specific number of the double-digit growth, 20% or closer to 10%? A second quick question. For the cycle, the general cycle from the future 2 years, there will be like if I look at from 2010 to 2012, we have seen a growth quite strong. 2016 is different, and the development rate is different. In these years, will we repeat the situation from 2013 to 2016?
It took three or four years to deal with the internal issues and then go back to the strong growth. First about the correction of the share price. As you have mentioned, last year, I have adjusted the goal of our revenue increase that is about 10%, above 10%. We predict that in this year, the top 10 have an average about 10%.
In this year, it is approved that this prediction is right. If we want to keep ourselves at the top 10, it is about 10%. The top 10 has about 300 million. If we want to have a higher expectation, maybe it is not realistic. The peak number in this year is CNY 17 trillion, and that is based on the 170 million sq m , and each has about 10,000. Averagely, I feel that it is between CNY 15 trillion -CNY 17 trillion altogether. In this year, we have an increase of 82%, and the average in the industry is from 50% - 100%. The first half of the year is CNY 8 trillion. If it is trapped for the whole year, we will see over CNY 17 trillion. We're not sure about the second half of this year.
If we look at the number based on the first quarter, it is quite conservative. If you look at last quarter of last year and the first quarter of this year for the Bay Area and the Yangtze River Delta, the land price is getting a surge. This is a negative impact on the expectation. Now the house price will be rising. We also have the price rising as well. The government is having control on it, like the stabilization of the land price and the house price. We're also having close attention put on this. For the profit, you still see double-digit growth? As I've mentioned, if the sales growth rate is over 10%, our net profit will be over 10%. It will surpass that of the sales revenue, because in the future, the non-development increase will be higher.
In this year, it is over 72%, like the property, 80% growth. The commercial operation and hotel from 60% - 30%. So with this strong growth, the gross profit and net profit will be increased as well. So this will be a bigger contribution. You also mentioned the cyclical part. You have been watching us for many years, and thank you for that. For this year, maybe this cyclical change is different from that of the corrections in the years ago.
At that time, that was based on the fact that we reached out to many cities we are not familiar with, and our inventory level was high. Also, our product was not that well-received. Even the quality of that was at just the middle or even lower than that. Nowadays, especially the quality ranked the top three, our product has been very well-received by the market. Especially our inventory level has proved to be at a very good level, reasonable level. Even our growth rate target was declined because the base figure in 2017, 2018, 2019 was very high. The growth rate was very stably at around 50%. This year, we witnessed a first year after COVID-19, and if it is back to reach above 40%, will be very stable, sound, and justifiable.
Especially if Q1 proves to be that good, maybe if you have the 22 city and a centralized land supply, if we can get more land at more reasonable price, we will have a better figure. So even CNY 330 billion excludes the contribution from newly acquired land last year.
Okay, thank you.
Last question. From, we invite Ren, right?
Hello, everyone. I am from JPMorgan. My name is Ren. Hello, Jason. I actually have two quick questions for you. The first for Shimao, especially, in terms of the contribution from the top 10 cities from 2019 - 2020, the contribution seems to be lower. Especially in 2019, the contribution from top 10 cities was 53%. Last year, the figure was at just around 50%.
We also found that for Shimao Group in our growth and development, I found that for some of the regions, in terms of the level of deep dive, is not that deep than our expectation. Yeah, we can also see that for Fujian, especially, it is on the path in 2020 compared to the year before. From sales perspective, what kind of findings do we have? What are our current pains, and especially how shall we address these pains? Yeah, that is Q1, question one. The second question is that, well, especially for the non-public market and the centralized land supply for land acquisition, what is your takes and stance on that?
Two to three years ago, especially for Shimao, you have entered the GBA with a prioritized land acquisition for your very strategic land acquisition. But last year, it looks like it is not that easily available. Yeah, so in terms of the land acquisition, what are your takes, what are your views on that? This year, especially in terms of dividend per share, can you share with us about the total figure compared to that of 2020? Will that be the same?
So three questions, right? Maybe Shao Liang will answer the question about the sales contribution to the top 10.
The total contribution is still very high. Maybe the ratio compared to a year ago was declining slightly, thanks to the difficulty for land access, land acquisition. For Fujian, we have very deepest dive in Fujian covering tier 1, 2, 3, 4 cities, which means it is difficult to grow. But we already account for over 10% across Fujian in terms of the total penetration.
Yeah, in terms of the land acquisition strategy, apart from the bidding and auction, we have some strategic land in Rongcheng, in Zhuhai. But after that, we still have not stopped. In Ningbo, we have got a successful TOD program, and we have access to that in Hangzhou at bottom price. In a very urban area of Changsha City, we have very good land acquisition. But whether we can continue is to have those TOD products. We are still waiting and seeing opportunities, and the first is to get land from the industries. Industries is very high on the radar of the players, especially for new infrastructure, high tech related sectors.
We have been working with some of the partners who are specialized in these high-tech industries, infrastructure-related land, to enabling us to have access more land, and also especially for the trade-off of the old residents in GBA region. It takes maybe three to five years, if not 5-10, more three to five, for the first batch will be available this year, and we can start the sales from next year and one year later. These are about the renovation. We have the so-called the high-tech sector, the commanding height, as well as the renovation of the existing ones. Last not least, about the dividend, we realized dividend, it has exceeded over 40% in the past few years. We have stabilized above over 40% this year.
We will still depend on our core net profit, based on which will we work out our dividends plan. We are very glad to reach at least 10% in terms of the top line growth. For the bottom line, will grow more than 10% as the non-profit development business are growing rapidly. Our baseline was just more than CNY 2 billion, CNY 3 billion at beginning, then CNY 5 billion, CNY 6 billion. This year, it is expected to exceed 15 billion CNY, accounts for a much higher ratio. So the profit generating from that will be quite good. Big. Last but not least, get back to Jason. It is about the top 10 contribution, right? From the sales perspective. I think Xie Kun has made a very valid point.
If let's gonna talk about the ratio from the top 10 cities on total sales, thanks to the following reasons, including GBA and Yangtze River Delta, in terms of the overall market growth, was quite significant, including the first half, if not Q1 of this year, in these regions. Especially as we are adjusting to the big picture of the land bank from over CNY 550 billion and to even around like CNY 300 billion. We have witnessed the dividend cities, especially with the constraint of the price, limitation on the price. We slow down a little bit of pace of development in those regions. Number two, we successfully expanded from the 10 cities on your radar. But in fact, our threshold, of which is CNY 7 billion per city. Last year, we even reached out and into, you can see, top 20 cities.
Even for the cities ranking number 11 to number 20, their contribution is going higher and higher. Even cities like Shaoxing, Ningbo and Foshan hasn't been ranking top 10 cities, but their contribution per single city is quite significant as well. Which means we are not only focusing on the top 10 contribution because we have limited space for the deck, for the table, but in terms of the average contribution per city out of them are growing. We try our best to especially lower our dependency on the core performance of the, especially, the tier 1, tier 2 core cities of the core dividend contribution. Thank you for your special participation. If you have any follow-up questions, you may talk to our IR team. Wish you a healthy and a very fruitful day. Thank you very much.