Welcome to the 2011 annual results presentation by Shimao Property Holdings Limited. Allow me to introduce to you our management. In the middle we have Mr. Hui Wing, our Chairman, and then Mr. Jason Hui, our Vice Chairman, our CFO, Mr. Lawrence Hui, Mr. Liao Lujiang, our COO, and from Shanghai Shimao Company Limited, the CFO, Mr. Shen Lusha. Today, our management will present the result highlights, financial highlights, as well as some future outlook information. Then we will take questions from you. Lawrence?
Dear analysts and investors, good afternoon. Please turn to page four, which is the summary of our highlights. Our revenue increased by 19.5% to CNY 26 billion. As at today, accumulated and recognized contracted sales, approximately CNY 23 billion. Gross profit recorded an increase of 25.4% to CNY 10 billion. Gross profit margin also improved from 36.6% in 2010 to 38.4% in 2011.
Profit attributable to shareholders increased by 22.5% to CNY 5.72 billion. Stripping out after-tax major non-cash items and one-off gain, net profit from core business attributable to shareholders was CNY 4.56 billion. Year-on-year increase of 20.6%. Core profit margin also improved from 18.8% in 2010 to 19% in 2011. We generated revenue and profit attributable to shareholders of CNY 5.7 billion and CNY 1.2 billion respectively, representing 25% and 35% growth respectively. The company has a 64.21% interest in Shanghai Shimao basic earning per share, CNY 1.62, an increase of 23.1%. The board proposed a final dividend of HKD 0.18 per share. That is Hong Kong cents. Together with the interim dividend of HKD 0.22, the total dividend declared was HKD 0.40, which is the same as the previous year. Contracted sales, CNY 30.7 billion.
Average selling price increased to CNY 12,845 per sq m from CNY 12,054 per sq m . Contracted sold area was 290,000 sq m . At the end of last year, our attributable land bank reserve was 39.5 million square meters. From 2012, all project regions in the group will only consider new land acquisitions if contracted sales meets target in advance and achieve a positive cash flow. That is the receivables deducting the payments. When there is a positive figure, we will consider new land acquisition. This is going to be our new mechanism to help us decide if we want to purchase new land. Revenue from hotels and investment properties increased by 8% to CNY 1.44 billion, driven by our new hotels and investment properties. Financial highlights.
As at the end of 2011, funding amounted to CNY 23.8 billion, including cash on hand of CNY 14 billion and unutilized banking facilities of about CNY 9.8 billion, which attests the group's healthy and sufficient financial resources. By the end of last year, net gearing ratio was 81.7%. And it was 75.3% in the middle of the year. The reason being, towards the second half, especially Q4, there were stronger control measures affecting our sales direction. Because of this reason, our deleveraging plan was postponed slightly, but they will come back onto stream in 2012. Towards the end of this year, our total loan level will be reduced to less than CNY 40 billion. That is around 6% reduction of debt. We are going to support that by enhancing our assets on sales. According to some recent development, we sold CNY 900 million in value and then CNY 2 billion in February.
So far this month, CNY 4 billion . Together with May and June and the launch of some new projects, we believe that we should be cautiously optimistic that we can achieve a total sales volume that is at least as much as the level of 2011. 65% of our bank loans are long-term debt and 35% short-term debts. We maintain very good relationships with PRC banks and also some international banks. Professional market valuation of all investment properties and major hotels was around CNY 34.3 billion. Total market cap of Shanghai Shimao was CNY 13.1 billion as at the end of March. Now let's look at some results highlights. Revenue CNY 26 billion, gross profit CNY 10 billion, up 25.4%, GP margin 38.4%, up 1.8 percentage point. Operating profit CNY 11 billion, up 18.5%. Profit for the year, CNY 6.4 billion, up 17.4%. Profit attributable to equity holders, CNY 5.7 billion, up 22.5%.
Profit from core business attributable to equity holders, CNY 4.5 billion, up 20%. Core profit margin, up from 18.8% - 19%. Dividend. Interim dividend paid CNY 649 million. Proposed final dividend, CNY 506 million. Together, CNY 1.155 billion , compared to CNY 1.218 billion in 2010. A slight reduction of 5%, mainly because in 2011 we purchased back more than 84 million shares with HKD 500 million . So for 2011 compared to 2010, the total number of shares of stocks is actually smaller. We are still paying HKD 0.40, which is the same as 2010, for a full year. The final DPS paid HKD 0.18 compared to HKD 0.25 in 2010. Concerning our core profit, 19% core profit margin, and that is taking CNY 4.56 billion of profit from core business attributable to equity holders. Then we deduct CNY 23.9 billion attributable to minority shareholders.
In order to show the genuine profit level, we wanted to take away the minority shareholders' shares. That was CNY 23.9 billion. You can find all the details at the bottom of page seven. Let's turn to page eight. This is our balance sheet summary. Total asset, more than CNY 100 billion for the first time, CNY 117 billion, up 22.6%. Fixed assets surged by 56% to CNY 28 billion. Shareholders' equity increased by 16% to CNY 35 billion. Cash increased by almost 2% to CNY 13.99 billion. Total borrowings increased by almost 25% and reached CNY 42.5 billion. As I have said, according to this year's major plan, which is to reduce our debt level, by the end of the year, we want to reduce it to less than CNY 40 billion, which is about 6%-7%. Net debt to equity, 81.7%, which was 75.3% at the middle of the year.
Why do we feel that is on the high side? There are a number of reasons. We have some hotels which are very valuable. Towards the end of 2011, adding up all the hotels after tax, our value added was CNY 8 billion. So when we calculate the debt ratio, such added value would not be booked. So that will not appear in the denominator. But the hotels are very valuable in the mainland, and some of them have been collateralized to the banks. We're talking about CNY 4.5 billion in value. So such debt would appear on our balance sheet while the value of the assets are not totally reflected in our books. That is why the net debt to equity ratio may be slightly higher than usual. If the net additional value is added to the denominator, adjusted net debt to equity is only 66.7%.
You can see our performance in the past four years. Every year, we have seen very positive growth. Page 10, gross profit margin and average selling price analysis. GP margin increased from 36.6% in 2010 to 37.5% in 2011. Our sales strategy for this year is going to be staying close to market price. For this reason, the group believes that in the coming few years, our GP margin should be maintained from 35%-40% in the future. When it comes to our expenses, the SG&A was about 8.9% for 2011. In the coming few years, we also hope to keep it at around 8%. Shanghai Shimao 2011 annual results overview. Revenue, almost CNY 5.7 billion. Operating profit, CNY 1.6 billion, up 16%. Profit attributable to equity holders, CNY 1.1 billion, up 35%. Total assets, CNY 33 billion, up 27%. Shareholders' equity, CNY 12.9 billion, up 27%. Cash, CNY 5 billion, up 23%.
Available-for-sale financial assets. We own Haitong Securities Company Limited, which is a listed company in Shanghai, and the value is CNY 267 million in 2011, a reduction of 23% compared to 2010. But if you calculate Haitong Securities' value, we are talking about CNY 330 million. Total borrowings, CNY 10.24 billion, up 46%. Now, I will hand over to Mr. Liao, our COO.
Thank you, Lawrence. We will take a look back at 2011 concerning our business performance. Please turn to page 13. We are talking about CNY 26 billion of revenue, and you can see the breakdown in the chart. 94.5% would be sales of properties, and the rest would be rental income and hotels. On the right, this is analysis by cities. They mainly focus on Beijing, Hangzhou, Ningbo, and Kunshan, more than 10% each. Page 14. The sales of properties, recognized sales by project. There are 32 items here.
Seven of them exceed CNY 1 billion. That would include Ningbo, Hangzhou, Beijing, Kunshan, Xiamen, Wuhan, and another project in Kunshan, the top seven items. The total here is CNY 24.5 billion recognized sales, and ASP 11,786. Compared to 2010, the level was 10,025. Page 15, operational highlights. You can see the contracted sales performance. In recent years, you can see the CAGR growth is 59%. Contracted sales, CNY 30.7 billion. ASP, you can see in 2010, CNY 12,054, and then in 2011, CNY 12,845 per sq m . You can also see the major projects contributing to the contracted sales. Seven items exceeded CNY 1 billion, in Jinjiang, Xiamen, Changshu, Beijing, so on and so forth. The GFA was 2.39 million square meters. We still feel that there will be many challenges ahead of us in 2012, but we feel fully confident.
We will be cautiously optimistic, mainly because of the sales situation in Q1. We will continue to be cautiously optimistic. We will step up on our sales efforts, and in 2012, the total sales level would not be lower than that in 2011. You will see some more details about the details. On page 15, you can see revenue from hotels and investment properties. Total is CNY 1.442 billion, an increase of 8% compared to 2010. Hotel revenue, a slight decrease. In 2010, it was CNY 974 million. In 2011, CNY 892 million. On page 17, you will see some details about hotel performance, mainly because of the post Shanghai Expo period, where occupancy rate in our hotels dropped. It is quite similar to the situation after the Beijing Olympics, but there will be a recovery. The performance of our Shanghai hotels are actually taking the lead in the industry.
Tianjin, Shaoxing, Wuhu Fuzhou Hotel projects will be launched gradually in the near future, so we still feel very confident. Right now, we are talking about total number of rooms of 2,689. And profit before tax, CNY 350 million. Investment properties performance on page 18. We are talking about rental revenue and other income. The growth is 51%, very prominent, reaching a total of CNY 515 million. Total GFA, 730,000 sq m, including six Shimao Plazas, five Shimao department stores, 10 Shimao Cineplex, and 11 Shimao iKids. And our investment properties are 100% let. So these are some basic figures. I would like to also talk about our land bank, and that is beginning from page 19. You can see our nationwide footprint covering 35 cities. The total land bank is 39.5 million square meters. To the right, you can see projects in different districts.
Last year, towards the second half, we have made some regional adjustments. We have now seven districts and tourism property projects. The headquarters have been removed or relocated to Beijing, Shenyang, and then Chengdu, and then Shanghai for Suzhou, Hangzhou, and then Ningbo. For central southern district, it went to Wuhan. And our headquarter for tourism property projects in Shanghai. So that is the overall situation for our land reserve. Page 20, you can see our new purchased land reserve in 2011. We will focus on places such as second to 30th cities with good growth potential, ranging from commercial property to residential property. In 2012, we have to realize our targets before we can purchase new land. But in 2011, after we made announcements in the middle of the year, we acquired new land in Qingdao. We have not purchased any new land afterwards.
For 2012, we are going to be more cautious in land acquisition. This is also the quality of our land bank on page 21. You see very even distribution, and it is compatible with our sales efforts. You can see the pie chart at the bottom left. In Suzhou area, and also tourism properties segments are bigger. Properties under development, 7.36 million square meters, and future developments, 30.8 million square meters. That is also the average cost, CNY 1,548 per sq m. Land cost as percentage of recognized ASP, 13%, back to the 2009 level. Now let us have a look at our future outlook. Page 23. There are uncertainties in 2012 and also some control measures in the market. We have a basket of strategies to make sure there will be sustainable development. First of all, concerning our organization and development, we want to nurture the right talent.
We want to enhance efficiency by reorganization of our structure. On our products and quality, we would like to stay closer to the actual need concerning our products. And we would like to enhance quality control so as to deliver the best products to our customers. In terms of risk control, we will focus on effective control of our gearing ratio, reduce capital risk, expand financial channels, and reduce inventory and increase cash. Hopefully, through these measures and concerted efforts of our staff, in 2012, we can achieve all the business goals for our properties for sale, investment properties, and hotel operations. Now, let us talk about the talent development details on page 24. We feel that for the property sector, there will be more competition for good quality products and talented people. We need high growth team to support our future development.
In 2011, and also all the way until now, we have been launching a number of measures to enhance the capability of our team. It is divided into three projects. First, new generation projects. We have identified 55 new members from a number of universities, and we would like to recruit 100 outstanding fresh graduates this year. Secondly, we have the professional workforce project. From well-known enterprises, people who have accumulated experience of 5 to 10 years, we would like to bring them into our company. There will also be internal training. In the coming 6 to 12 months, we would like to identify management staff for our mid-level positions. These will be the benchwarmers of 50 high caliber employees. Finally, the elite recruitment project that is to bring in talent in the community.
We would like to, on top of the 48 employees hired to assume positions of department heads, recruit another 24 new members according to vacancies and internal needs so to support future growth of our company. We also want to erect a correct platform. That is page 25. On the left-hand side, that would be the original structure of our company, three districts. We talked about our land bank allocation, 69 projects in seven different districts. According to the original structure, there were a number of weaknesses in terms of management. Because of the location of our district management center, there was a lack of independent management. That is why towards the end of last year and the beginning of this year, we have made some reorganization. We have now divided our properties into seven districts. The purpose is very simple, is to promote localized management.
We have set up district headquarters to enhance efficiency of management, and we can go deeper and focus on more details. Secondly, we will have district-centered management so that our talented people can flow around within the same district. This structure establishes a strong districts with excellent projects management model to support stability and enhance overall efficiency level. This is the ultimate goal of such reorganization.
Thank you, Mr. Liao. Now we are going to look at our products. Actually, towards Q3 last year, we optimized the design of more than 30 projects. We have introduced more low-density products to projects with equivalent or higher plot ratio. Previously, 200 - 300 units for every project has been reduced to 90 units, and Q1 results have been very positive. Here, we have introduced a number of optimization measures for product design. First, product design innovation.
When a project begins, together with the local team, there was a lack of communication. Now there will be a preparation meeting before the land is obtained, and also meetings afterwards. There will be different meetings at different stages of the project so that we can calculate the cash flow, how to do quality control, and cost analysis. This will help us to have better management of our projects. For example, landscaping, greening, how they are done. We will be able to take our teams to the new demonstration sites. We will organize the tour, and I hope you can sign up for it as well. We have also created special products for the post-80s and post-90s. For example, smaller unit, tailor-made for our target clients. Also a luxury project in Wuhan. A project will be launched in September on top of the metro system.
If you have time, please do visit us. We have also included complementary area. The sellable area for apartment units increased from 70% - 100%. We introduced new products like sky villas in the second quarter. That is adding one level of 100 sq m. So CNY 1 million for one villa, if the ASP is CNY 10,000. We are talking about higher level of client satisfaction and higher productivity. In the past, our advantage was on land. I have talked to the senior management recently. Actually, if there are conducive policies launched by the government, it is good news for all the property developers in China, and vice versa. We have seen some tightening measures, and it is exactly during such difficult time that we are able to identify the truly competitive players in the market. We have been telling investors that we purchase very cheap land.
What about our products? The quality may not be at the very top, so certain targets have not been met in the past. In the future, we want investors to feel pleasantly surprised. All three districts covering dozens of projects. In the past, all the headquarters were in Shanghai. How can we understand the local situation and enhance efficiency? Now, there will be eight departments according to different districts. We have improved our management model, and we trust that our competitive level will be enhanced, and client satisfaction can also be enhanced. Our strength will no longer be cheap land. We will provide outstanding product of top quality. Some developers, they have good products, but then they purchase expensive land or vice versa. Our strategy is to do well in both areas. What is the impact of such changes?
In January, the sales was CNY 900 million because of spring break. It was doubled to CNY 2.07 billion in February, and March, the sales up till now, more than CNY 4 billion, close to CNY 4 billion yesterday, and today already exceeded CNY 4 billion, and we have two days left. Also our orders, CNY 6 billion, a historical high. It is not just a positive trend for March. Another CNY 2 billion to be signed in April. No newly launched projects in Q1, only projects from our inventory. Actually, 1/3 have been sold with discounts, and then the rest have been readjusted units. Sometimes for a larger unit, we cannot reduce the price level by a very large extent. We have been doing remodeling. Larger units have become smaller units, and the result has been reflected in our results. Let us wait and see what will happen in May and June.
I believe the figure will even be higher. Now we can focus on two projects, one in Nanjing. This is 1.5 million square meters total floor area. Original design was very high-rise buildings. Plot ratio was only four. Now we have low-density villas, and the turnover rate will be faster. Our leaders all support this plan. This one, we have already done the piling. I think it is the previous one. This building. Some discounts have been offered, and this one in the front, we have done piling. Then we took them out towards the end of last year because they were all for 200 sq m flats. We have changed them into around 140 sq m. Larger units have been remodeled into smaller flats. There will continue to be strong demand for such rigid demand units.
Here, people can purchase this building, then his friend can purchase the next one. In Q3, the small shops or commercial buildings can be sold, and the rest can be sold in December. This is in the center of the city, and there is great demand for such properties. We want to sell CNY 2 billion this year. Last year, it was only CNY 200 million, so how can we achieve a 10x target? I can tell you, Nanjing sales was over CNY 700 million. So CNY 2 billion is definitely possible. Remodeling our products and restructuring our teams have brought very positive results. There is this building at the back, more than 200 sq m. Why not change it to a smaller one? We have already erected the first two floors. The price was set as 15,000, and this year reduced to 12,000.
That is a 20% drop, very rare in Nanjing. The land cost is very low, so you can see profit after tax still standing at 12%. This year we are going to launch commercial project, 28,000, that is the price. Sometimes we offer discount, sometimes there will be price increases for other projects. This is super high rise, we may be taking out the piles, but it takes a while to do the remodeling. Perhaps later on, the selling price will increase from 12,000 - 15,000 again. The profit level will increase to about 23%. As you can see, if it is 100 sq m, and the selling price per sq m is 15,000, that is CNY 1.5 million already. That is one case study. At the back, there is another project in Jinjiang.
It was the most popular, CNY 1.8 billion, but it doesn't mean that we won't change. The new indicator will be CNY 2.7 billion, an increase of 50%. Our team has been working on the local situation, and they realized that low-density villas, very popular. Originally, they would only be located by the water, about 15% of the total development. Now, all low density, 46% of the project. These are connected. These are sky villas, quite popular as a new product in Shanghai. We have introduced them to Jinjiang as well. Over here, some 30-odd storey buildings with some sky villas inside and some commercial developments at the back. We have made some changes here. We want 50% increase, although we have already achieved such great results last year. This will be launched in May or June.
In Q2, we will also launch sky villas of 100 sq m. We have not changed the originally very successful units and designs. In Jinjiang, there are many Chinese people coming to stay here around Chinese New Year, so everything is very localized. Commercial segment, we have reduced the number. They will be launched in July. We are standing at CNY 950 million for Q1. For many projects, the completion rate is very high. Next, our products. Basically, we have been controlling different indicators. We wanted to do prevention of possible problems by having more meetings. More importantly, every month there will be inspections, sudden inspections every month. If the score is less than 60, there will be a penalty, and there will be a reward if the score is more than 85 points. There will be a five-party inspection policy.
If the score is less than 60, the head of the project will be fired right away. You see, this is very stringent arrangement. In the coming two pages, you can see the differences concerning some strengthening work. You can see some lobby areas, landscape design, and then the financial page. Maybe you are more interested in that, page 35. Our debt ratio or gearing ratio increased in 2011 because of the very tight measures launched by the government. We have worked very hard, but last year's result was not totally satisfactory. But in Q1, we have outperformed last year. The net gearing ratio will be kept at below 70%. Our stock price has been under a lot of pressure recently, but with enhanced sales effort, we will continue to strive to lower our net gearing ratio. Secondly, we want to boost sales and reduce gearing ratio.
There are eight districts with stringent control measures. How much you earn means how much you can spend. How much you can spend this month is 60% of the receivables from last month. Let's say in March, my income is CNY 3 billion. Then 60% of that CNY 3 billion will be payout for construction. 60% is gone and 40% is left to ensure a healthy flow of cash. If this month I want CNY 300 million, but at the end I only get CNY 200 million, then the expenses will have to be cut back. We want to maintain a net positive cash flow. An analyst told me that he said that one of the biggest developers, Poly Group, their cash flow was still negative in the best of times. We will strengthen our cash flow. There will be a KPI for all districts.
Individual districts will have to maintain positive cash flow before any new land can be acquired. We will step up collaboration with banks and mortgage loans, reduce the number of short-term loans as far as possible, and increase the percentage of low-interest loans and long-term loans. We are talking about a one-year maturity loan of CNY 15 billion. 1/3 of that is short-term and 2/3 are long-term. We still have a high ratio of long-term loans. We also have approximately CNY 23.8 billion disposable capital, including cash in hand of CNY 14 billion and unused bank loans of CNY 9.8 billion. In the past, we would have collateralized hotels, but such collaterals can continue to be used. Due loans of CNY 15 billion secured with hotel and commercial property mortgages, deposit collaterals, and warranties representing 67% of total loans. Such collaterals and warranties can be used to secure new loans.
Many banks will come to us, would talk to our CFO. We don't have much trust loans. It is only about 10% of our total debt, and many of them are actually collaborations, and they can be easily paid off. The debt situation is not a problem at all for our company. Some investors may think that it is quite risky. We actually don't believe so. Many rating agencies don't really understand how we operate. This is a summary of 2012 cash flow. There are some collaborations with Link Real Estate Investment Trust. Contracted sales, CNY 26.7 billion. Cash on hand at the beginning of the year, CNY 8.8 billion. Cash collection, CNY 24 billion, which is quite a high level. 10% of this is actually outstanding payment from 2011 from our clients. We have to collect the money. Land premium, CNY 4.5 billion. Construction cost, CNY 9.5 billion. Other expenses, CNY 6 billion.
You can see the net operating cash flow, CNY 4 billion. Mainly that will be for debt repayment to reduce the level of debt to below CNY 40 billion. Some people may ask, "Will we have less cash at hand while the sales amount is reducing?" Well, actually, at the end, there will be a net positive cash flow. If the teams are performing below par, they will be replaced. We are talking about 70% of our turnaround rate. They have to reach our targets, otherwise people will all be laid off. There is no need to worry because our teams are very capable, and every month there will be a ranking system. We are completing 50% in Q1 and then over 30% for the first half. Every district will want to be number one. No one wants to be at the very end of the list.
Otherwise, people will ask them, "Why are you lagging behind all the time?" That is a lot of pressure. I trust that in the first half, we can complete more than 50%, and that will be a historical high. Our CFO will talk about the operating targets for 2012.
Contracted sales, CNY 7 billion. That is for Shanghai Shimao cash collection, CNY 6.3 billion. Part of that was brought forward from last year. The total would be CNY 9 billion. Actually, if we calculate the total CNY 11 billion, because we acquired quite a number of land parcels. Land premium to be paid in 2012, CNY 1.4 billion only. Then we can also pay off some debt. We are talking about mature loan of over CNY 3 billion. We can also use collaterals, including some of our assets can be collateralized. CapEx, net operating cash flow, CNY 300 million.
For many newly launched projects in Q2 - Q4, we can begin the development loans. CNY 11 billion and deduct CNY 100 million, and the final figure will be CNY 7 billion -CNY 8 billion. Towards the end of the year, we will be able to achieve another breakthrough. Thank you.
The total figures for 813 and 823, contracted sales, CNY 33 billion. Cash on hand, CNY 13 billion. Cash collection, CNY 30 billion. Land premium, CNY 5.9 billion. You may think we are paying a lot in land premium, but actually, we are talking about CNY 1.8 billion for the Asian Games City. The government has agreed that we can pay that two years later. So we actually are paying only about CNY 7 billion this year, and a lot of that is relocation. If we stop land acquisition, we are talking about CNY 3 billion expenses on land premium, and then it will be completed.
The same for 2013. So you will understand that it is a very low level. We have to wait for different districts to reach their district targets. Construction cost, CNY 12.5 billion. Other expenses, CNY 7.6 billion. Net operating cash flow, CNY 4.3 billion. At the back, JV projects, Nanjing, Haixia, and Huidong. That is the Haixia Future City, CNY 1.18 billion. Asian Games City, CNY 418 million. Internally, for Asian Games, we are talking about CNY 400 million. In Huidong, CNY 300 million. Tianjin, Jinan, CNY 300 million. Their target was CNY 200 million. So we are looking at a 40% discount. All the land premium has been paid. For JV projects, all net cash at hand, with only CNY 900 million to be paid for Asian Games Cities, and that can be easily resolved through borrowing. Projects available for sale in 2012. In central southern district, we have Wuhan, Xiamen, Nanchang.
Western district, Chengdu projects. Jiangsu district, Wuxi, Nanjing, Suzhou, Kunshan. Ningbo district, we have the Shaoxing project, tourism project in Dalian, Shanghai, Wuhan, Fujian, Fuzhou. Also in Northeastern District, Bohai Rim District, and Hangzhou District. Total GFA, 4.3 million square meters. For projects not yet sold, 1.2 million. Projects held by 823. The subtotal GFA is 768,000 sq m, and the total here is 1.19 million. We are talking about CNY 60 billion in total, if we use CNY 10,000 per sq m as the average selling price. Hopefully, we can go beyond that this year, and we will have to supplement the land available. Here, you can see the product mix, 30% go into commercial. Low-density villas, only 15%. They are smaller sizes. Shimao product mix is focusing on the rigid demand. This is analysis by region. Shanghai Shimao Tourism, property, Jiangsu. You can see all the figures.
As for the type of products, 10% for comfort products, 10% luxury products, 48% small-sized products, 32% for house upgraded. You can see this is a very positive situation. Page 43. Our CFO will talk about the investment properties targets.
We are talking about total GFA of 737,000 sq m. 660,000 already being operated. Another 1.1 million under construction. Gradually launched in the market in the coming two, three years. in Q3, 130,000 to be completed. We have done some reconstruction or restructuring, and we have been able to establish a stable and professional operational team. I would like to emphasize that when it comes to our commercial properties, we have more than 50% of our team members who have accumulated very good experience.
Other than shopping mall operations, there are also commercial properties sold. We are concerned about this segment, and we have set up a special team to manage this segment. Normally, we are talking about investors purchasing these commercial properties. We will provide leasing services, rent collection, standardized sales. We have shopping malls and also individual shops that will be standardized operation. In Shaoxing and Suzhou and Beijing, they are all very successful. We will continue to use the same model for other projects. This is one model for commercial buildings. As for other property types in 2011, cinema, department stores, and also iKids stores, they were all very popular. The total revenue for non-property sales, it has taken more than 7% in 2011. It was more than 5% in 2010. In 2012, we believe the ratio will go beyond 10%.
Once that is achieved, our revenue will grow by 83%. We also plan that there should be more than 50% in 2012 compared to 2011. We will expand the quantity. For example, we have 10 cinemas, and we would like to expand the number to 20. Right now, there are 84 screens showing movies, which is 1% of the total supply. By 2012, it will exceed 1%, so there will be box office income on the rise as well. As for Shimao iKids, according to the current situation, we have a lot to expect, especially in Tier 1 cities. The revenue will grow very substantially. We have also reorganized some other segments. By 2013, we will be able to launch them into the market. We can raise the rental level substantially. The major income for 2011, for office buildings, mainly from Beijing area.
The leases are coming to the expiration date this year. New contracts and new leases will be signed. We believe there will be sustainable growth for this segment. Because of time constraints, on page 45, hotel operations, 2,689 rooms, seven hotels. Turnover, CNY 1.18 billion. If you turn over the page, you will see our hotel operation strategies. Estimated total revenue of these six hotels, CNY 1.18 billion for 2012, representing a growth of 32% when compared to 2011. Earnings before interest, taxes, depreciation, and amortization, CNY 437 million, representing year-on-year growth of 28%. These are very positive figures. You can look at the appendix if you have time. Thank you.