Dear friends from the investment field, welcome. Welcome to the 2018 Shimao Property Holdings Limited interim results announcement. Before we start, we would like to introduce our management team. We have Mr. Xu Rongmao, Chairman and Executive Director. Vice Chairman and Executive Director, Mr. Hui Sai Tan. Executive Director, Ms. Fei Tang . Assistant President and Head of Marketing Management Center, Mr. Shao Liang . CFO, Mr. Jun Shen Cho]. Today's announcement is divided into a few parts. First, we have results highlights, financial highlights, business review, future outlook, and conclusions. First of all, we welcome Ms. Tang.
Welcome, everyone, our old friends and new friends, to our result announcement. I would like to, first of all, thank you for your support. Please allow me to walk you through the result highlights of the first half of 2018. For 2018, in the first half, we continue to see regulations together with the deleveraging in the financial market. There is less and less liquidity in the market. We are also faced with higher risks. For Shimao Property Holdings last year, we have already entered into the fast development period. In the first half of this year, we have realized our surge in sales, and we have created great value for the investors. Let's walk through the results of Shimao. Turn to page four. For the first six months of this year, 60% surge in sales in first half of 2018. Robust growth in business performance. I am going to walk you through this one by one. Please turn to page five. First of all, strong growth of contracted sales.
For 2018 first half, we have realized contracted sales of CNY 72.32 billion, a year-on-year growth of 60.3%, achieving 51.7% of the full year. Our contracted sales ranking improved by two places. Contracted GFA has reached 4.5 million square meters, an increase year-on-year of 66.5%. In terms of revenue, gross margin, and GPM have all grown steadily. In the first half of this year, we have realized revenue of CNY 42.57 billion, a year-on-year increase of 18.8%, among which income from hotels, rental, and investment properties reached CNY 1.9 billion, an increase of 14.7%. Gross profit margin has increased by 24.7%, reaching CNY 13.21 billion. We again have become the leader in the core profit attributable to shareholders without extending profit margin. Core profit attributable to shareholders have reached to 14.3%, a year-on-year growth of 0.9 percentage. Operating profit reached CNY 11.94 billion and growth of 36.3%.
Profit attributable to shareholders, CNY 4.27 billion, year-on-year growth 10.1%. We have been affected by the CNY fluctuation. EPS, CNY 1.266, year-on-year growth 10.2%. Steady increase in dividend on page eight. Please turn to this page. The board has decided to issue dividend of HKD 0.50 per share. A year-on-year growth of 25%. On page nine, we continue to deepen regional development with sufficient and ample reserve of saleable resources. By end of June, total land bank was approximately 51.62 million square meters, with average land cost of CNY 5,325 sq m. First half of 2018, attributable new land acquisitions amounted to CNY 29.6 billion. In addition, Shimao had actively participated in the development of Guangdong-Hong Kong-Macao Greater Bay Area , Hangzhou Bay Area, Taiwan Straits Economic Zone, and the Belt and Road Initiative. Page 10. Steady growth in revenue of Shanghai Shimao.
In first half of 2018, contracted sales of Shimao grew by 60% year-on-year to CNY 16 billion. First half of 2018, revenue of Shanghai Shimao grew sharply by 20% year-on-year to CNY 12.15 billion. Profit attributable to Shanghai Shimao shareholders increased by 3% year-on-year to CNY 1.44 billion. In the first half of 2018, in the backdrop of Chinese property market, which is with tightened liquidity and regulation. In the company, we have made sure that we are very prudent with our financial management. Please turn to page 13. In order to actively respond to the changes of the environment, the Board has increased in our management of cash collection. We continue to develop more cash collection resources. For the first half of this year, we have realized cash collection reaching CNY 55 billion. An increase of cash collection up by 52.8% year-on-year.
Contracted sales in June was CNY 20.74 billion, hitting single month historical high. This will be reflected in the second half of 2018. Cash on hand, CNY 36 billion. Unutilized bank credit facility, CNY 20 billion. This has laid a solid foundation for the group's further development in the future. In page 14, solid debt structure. End of June 2018, CNY 98.5 billion balance of borrowings, up by 12.5%, and this is for the strategic development of the group. We have long-term borrowing of 70% of total CNY 69.3 billion, CNY 29.2 billion for short-term borrowings, accounting for 30% of total. This is a very healthy balance. Stable net gearing ratio. The company has entered into a fast-growing period. The net gearing ratio was slightly up by 3.8%- 62.7%, but still at a very healthy level.
In terms of our work in balancing our borrowing structures, it has given us more development opportunities, and if you include the reevaluation of increment of hotels, the net gearing ratio should be 54.2%. Increased scale of asset, total asset, CNY 333.6 billion, fixed asset, CNY 36.8 billion, out of which property, equipment, land use, and investment opportunities total CNY 71.6 billion, and total equity, CNY 103.6 billion. Responding to the changing environment via multiple financing channels. In the first half of this year, we are seeing more regulation and tightened liquidity in the market, and we are also responding to this actively. In January, before the market fluctuated, we have grasped the opportunity to issue $500 million senior notes before market fluctuation, coupon rate 5.2%, and in March, we have issued CNY 950 million dim sum bond. In June, again, we issued CNY 1.2 billion dim sum bond.
In terms of July, we have issued the China's first ABS backed by Renhe, and this is CNY 1 billion. First issue, CNY 500 million, maturity 20 years, coupon rate 5.6%. Relying on multiple financing channels, our interest rate financing cost maintains at 5.6% in first half of 2018. Based on all this, we continue to see stable credit ratings. If you look at the international and domestic rating agencies, they have maintained our rating standard. In addition, we have received AA A highest rating from United Ratings and Golden Credit Rating International from Shimao Jianshe Onshore. This is the results of first half of 2018, as well as the financial highlights. Thank you again for your long time support. Now I invite Mr. Shao to talk to us about the business review.
Thank you, Ms. Tang, for your introduction. Now I'm going to talk to you about business. First, let us take a look at our revenue. For the first half of this year, the revenue has realized at 42.57%, an increase of 18.8%. We have seen 19% increase of the saleable resources. For the turnover from hotel operations and investment, reached CNY 1.8 billion. Due to the renovation going on at Shanghai Shimao International Plaza, that was suspended. Therefore, the rental income from Shanghai Shimao International Plaza and the adjacent hotel had show a slight decrease. If this is excluded, income from hotel operation rentals will have risen by 20.7% year-on-year. The increased turnover mainly comes from the newly opened hotels. Again, due to the renovation going on at Shimao Plaza, the hotel has seen a decrease in terms of its revenue. However, excluding this, we will have seen an increase by 14.9% year-on-year in first half of 2018.
EBITDA of the hotel operation amounted to CNY 270 million, representing year-on-year increase 5.1% from CNY 257 million. Rental income from investment property merely increased by 2.4% to CNY 386 million, mainly due to the suspension and renovation of Shanghai International Plaza since 2017, causing a temporary rental decline of CNY 31 million year-on-year. Excluding the impact, rental income increased by 11.7% year-on-year. EBITDA of the commercial and office premises amounted to CNY 212 million, representing a year-on-year increase of 7.6%. EBITDA margin was 35%. In terms of land reserve, at the moment, we have land reserve in 84 cities, 213 projects. By end of June 2018, covers a gross GFA of 50.62 million square meters. The group has sufficient reserves of saleable resources in hot regions nationwide, valued over CNY 880 billion to meet the continually growing demand in the future.
In the next four pages, you will find the new land acquisitions of the group in the first half of 2018. You may take a look. If we turn to page 28. For the first half of this year, we have new plots of land, 48 lots, and the total GFA amounting to 7.7 million square meters and mainly in first-tier and second-tier cities, as well as those third and fourth-tier cities which have performed very well. Saleable value of reserve in the company, our total GFA has reached 51.6 million and in Fujian and Yangtze River Delta, they have all exceeded 200 sq m. For the second half of 2018, saleable resources, the group achieved contracted sales GFA of 4.5 million square meters.
If we assume conservative ASP of CNY 17,000 sq m, the total value of saleable resources would be CNY 261.6 billion based on an expected sell-through rate of 55%. Group is likely to exceed the annual sales target of 2018. Next page. I am going to talk to you about some of the important commercial projects. First one is Shanghai Shimao Plaza. We have started modification to this property since last year, and we plan this will be opened in September 2018. This plaza is situated on Nanjing East Road, a prime location in Shanghai. We are determined to develop this into a trendy hub in Shanghai. The project targets consumers aged between 20 and 35, who keep up with the latest trends and style. Next page. In the meantime, you can see we also have the first largest indoor Hello Kitty themed pavilion in China.
We have worked with Sanrio together with the time travel as a theme. The project showcases Shanghai in three different eras. In addition, we also have a gathering of flagship stores of internationally renowned brands, for example, Nike, Sephora, The LEGO, Starbucks Reserve Roastery, et cetera. Next page. We have the luxurious hotel, which is called the InterContinental Shanghai Wonderland, which will be opened in October 2018. This is the bottom-up negative building concept. It has great design concept. From next page, you can see our guest rooms facing the waterfall. Guests in underwater guest rooms can watch different sea views from their glass window. In addition, this hotel will also become the most exciting hotel in Shanghai. Guests can participate in various entertainment programs. There is also the Smurf theme park, as well as the Max Wonder Zone and Secret Wonderland Zone.
These are all worth expecting. We also welcome all the friends to come and live in our hotel and experience firsthand. Future outlook for first half of 2018. Contracted sales surged by 60% year-on-year, reaching to CNY 72.3 billion. Monthly contracted sales exceeded CNY 10 billion in four single months. Contracted sales in first half of 2018 reached 52% of full year target. As of now, Group has reached the full year contracted sales of 2017, and sales have exceeded CNY 100 billion. Next page. The group put more efforts into implement the de-stocking and accelerated new supply strategy in early 2018. Overall sell-through rate rose 2%- 62% year-on-year in first half of 2018. Inventory aged over one year decreased by 22%. Structure of inventory continued to improve.
In terms of cash collection, first half of 2018, amidst banks' tighter mortgage policies and restrictions on contracted filings in more cities, the group's cash collection rose by 53% year-on-year to CNY 55 billion, of which the percentage of cash payment increased by 14%- 65%. To have realized this cash collection, we have basically realized the cash collection of some of the other competitors for the whole year. For our supply and target of operations with around CNY 190 billion saleable resources in the second half of 2018, the group is on course to reach its annual sales target with just a sell-through rate of 36%. Only by reaching 36%, we would be able to realize the target.
If we calculate it with 55% sell-through rate, with the increased average selling price, we believe that it is very likely that we can even challenge a higher target. Next page. Taking into consideration of the first half and second half of year, the group plans its contracted sales across the board. The majority of our product will be focused on the first and second-tier cities with healthy supply and demand dynamics, as well as third and fourth-tier cities with better sell-through rates in first half of 2018. For our nine core cities, we will expect to realize over CNY 60 billion contracted sales, ensuring both sales and profit targets. For 2018, the standard product lines have increased to 117 projects, covering 81% of the projects. We have also launched our luxury product lines, Glory and Royal.
We believe that with such brand awareness in the market, we will definitely reduce our cycles in the market and to further increase our product price premiums and improved competitiveness. This is in July. You can see Beijing Shimao Royal Series press conference as well as Hangzhou. This was held in Diaoyutai Hotel in Beijing. We have also invited Mr. Zhang Guoli as our spokesperson to host this press conference. We also have some of our Royal Garden pictures of the Beijing Royal Series. These are very grand projects. If you have the opportunities, please go and take a look.
For 2018 sales strategy, we will continue to utilize our big brand strategy. We will also have our other brand called Tianyu, which will also be launched in the second half of this year. We will continue to focus on hotels, commercials, theme parks, and we will try our best to realize all-rounded development and to realize our big brand strategy. This is a rough introduction of the business, and we will have Mr. Xu to talk to you about the conclusions.
Dear investors, good afternoon. I will talk to you quickly through our result highlights. We have sales increased by 60%, cash collection increased 53%, cash on hand increase of 64%, core profit attributable to shareholders increased by 20% to CNY 4.4 billion. Dividend up by 25%, HKD 0.50 per share. Income from hotel operation and investment properties up by 15% to CNY 1.9 billion. Our net gearing ratio has gone up by 3.8%- 62.7%.
For Shimao, we have been keeping our net gearing ratio below 60% for three years consecutively. This is because we have purchased a new land in Longgang in Shenzhen, at the price of CNY 20 billion. This will actually bring us revenue of CNY 50 billion-CNY 60 billion in total. This project needs a lot of time to develop. In the future, from Liantang Port, you will reach there in less than 20 minutes. For the Greater Bay concept, this is our biggest project and our largest product. Besides Longgang, we have also obtained land from Pingshan. This will have increased our net gearing ratio and for the whole year, it will be within 70%. If we are able to carry out some asset disposal, we will be able to lower it. In terms of investment, we have also seen the International Plaza.
If you have time, you are welcome to go to Shanghai on Nanjing East Road. In the past, we had rental from this of CNY 100 million. After modification, we will be able to achieve rental of CNY 300 million. This will open in 2019. In addition, in the headquarter in Shanghai, in this page, in the previous page actually, our headquarter has also moved to an office building in Lujiazui, which will also bring another CNY 100 million in rental. In Shanghai, the highest building has already completed the external renovations, and this will be launched into the rental market next year. In addition, we have office buildings in Nanjing and Shenzhen. These will all be launched in the next three-five years. We will have three hotels launching this year. One in Chengdu already opened, one in Hangzhou facing Xihu directly, and one in Qiandaojiang will be opened in September.
In October, the Shanghai InterContinental Wonderland will also be open, and we believe that we will realize income of CNY 300 million. Our largest hotel is in Hong Kong. This hotel will bring us revenue of CNY 600 million, which will be opened by end of 2019. For this year, hotel still grows at 20%, but in 2019, we will be able to see the hotel grow at 30%. For the first half of this year, we have purchased 48 land parcels, total GFA of 7.73 million square meters, total land bank 51.62 million. Our financing cost has gone up slightly by 0.3- 5.6%. I believe that all the developers have seen an increase in terms of their funding cost, and we still believe that we would be able to control this within 6%. For 2018, second half outlook.
For July and August, looks very good, but the baseline is very small. For July and August, compared with last year, we have seen 100% increase year-on-year. Our annual sales target have already reached CNY 100 billion, which has already reached the total sales of last year, of the whole year. From January to August, sales surged by 70%. Overall cumulative ASP in July and August continue to go up, CNY 19,750 per sq m. This is a very important figure. The annual ASP target would be at around CNY 17,000 per sq m. Saleable resources for the whole year, CNY 260 billion, and for the second half of this year will be CNY 180 billion. If we can realize a sell-through rate of 36%, we will be able to reach our target. Of course, it will not simply be 36%, we will definitely exceed this indicator.
We believe that this will continue to develop and in September, October, November, I believe that we will create new high records. In our latest figure, I believe actually with Mr. Shao, we will be able to create record in September for land banking strategy. The whole year land acquired in 2018 will be more than double of last year, but the total figure is actually the same amount as last year. We were talking about it being slightly more than last year or slightly less than last year. However, how come the GFA is actually more than double? It is because the land is being sold at a cheaper price.
What is more important is that this year we do not have a strategic piece of land, and last year we have acquired it for CNY 17,000 for our strategic land, which was a lot more expensive than our usual land price at CNY 5,000-CNY 6,000. We have already acquired the opportunity with the price decline in some of the first and second-tier cities. We have grasped some good opportunities, and we believe that in the end of this year, we will have more opportunities with even lower price. What we will be focusing on in the next few months is to look at cash collection. Looking at it now, I think that we have about half of the money for land acquisition, and we have already realized 70% of the sales, but we have only purchased land of 50%.
For the second half of this year, we have already set aside enough cash for land acquisition. For sales strategies, I am quite confident for first and second-tier cities, because first and second-tier cities were restricted quite a lot last year. Recently, in Shanghai and Beijing, they have been approved. For example, in Shangzhuang, if you have time, you can go and take a look, and its sales price has already exceeded six figures. In July, we have received our sales permit, and in August, we have already sold 12 villas at CNY 50 million in third and first-tier cities. We think that we will face more pressure. We hope to sell more quickly in third and fourth-tier cities to reduce our pressure. The conclusion for the last page. Everyone is more concerned about the Sino-U.S. trade war and the risk of CNY depreciation.
How do we respond to this? Actually, we feel that the overall market sales are expected to reach CNY 13 trillion in 2018, slightly lower compared to last year, but not a big difference. The allocation might be slightly different because for the first and second-tier cities, the market will be relatively loosened, and we hope to control the relatively loosened opportunity. In the past, if the government was giving us 30%, we would not want to take it, but now, maybe at 15% discount, we will sell it. For third and first-tier cities with shanty town regeneration, in the past, they were offered money, but going forward, they may be offered housing instead. That will affect those markets. For the whole year, I believe that the investors are very concerned about gross profit and core profit.
If you look at the first half of this year in the appendix, we have CNY 1.27 trillion excluding tax, and including tax it is CNY 1.6 trillion. For the second half of this year, we will definitely have more money coming into our account than the first half of this year. For the first half of this year, we have recorded the cheaper ones from the third and fourth-tier cities. We are confident that our gross profit will be over 30%. I now think that it will be over 32%, and core profit will continue to increase. For the first half of this year because of the record into the account, the gross profit margin and core profit will be lower than the second half of this year. We think that we will see better results for the second half of this year.
These are good pieces of news. Our sales are going well. The bad news is the depreciation of CNY. We are a developer with more foreign currencies. We used to have 50%, then came down to 30%, and now we have come back to 50%. A lot of investors did not think about this. We are quite a few of the developers which actually have Hong Kong and overseas properties to hedge for us. In Hong Kong, we have a project in Kowloon near Beacon Hill, and this property project can be sold in 2020. It will be sold for the price of HKD 30 billion, and we are also working with Sino Land at Cheung Sha Wan. You can see post equity, we will have HKD 30 billion, and together with our hotels asset in Hong Kong, the total asset will reach HKD 40 billion.
Of course, we will not dispose everything, but if we do, that means, we have 90% of foreign debt, which means that it's a natural hedging of the Forex exposure. At the moment, recently we are seeing a slightly stronger CNY. We will definitely pay attention to the monitoring. At an appropriate time, we will continue to buy back. We have purchased back some of the shares in the first half of this year. For the increase of this year and for the growth of this year, we're very confident, and we believe that for the second half of this year, it will be even better than the first half.
Thank you, Jason. We'll move on to the Q&A session. Please let us know who you are and where you come from before you put forward your questions.
Good afternoon. I'm Carol from DBS. I have three questions to ask the management. The first one is regarding sales. This year's sales speed is actually a lot quicker than expectation. I'd like to ask the management, will you consider to slow down your sales to increase your profit margin? Second question, suitable resources out of the CNY 190 billion, how much of that can be phased out in third quarter, and how much for the fourth quarter? Number three, for the land bank in Fujian, for Shimao in recent years, you seem to have been quite aggressive in land acquisition in Fujian province. In the past few years, we have seen fast increase of property prices, and the government is clamping down on the high property price in this area. For your strategy in this region, what is your consideration going forward? Thank you.
A few questions. First one, for sales. Actually, this year we have a lot of exceeding indicators, and you have asked whether we will slow down to improve our profit margin. Actually, we think we already have a quite a high profit margin. We are now looking at the unbooked revenue of hundreds of billions. For example, I said I only had 12,000 being recorded pre-tax. In the current market, I don't think the market will slow down. I think it's that you need to be even faster. You need to collect your cash and to grasp the opportunities. Actually, in August, we have already had very good opportunities to obtain quite a few low-priced lands already. In Hangzhou, I feel it's very strange. In Hangzhou, we have purchased 3 slots of land, and one plot is in Binjiang District, the last very good one.
I thought prior to the control, it was selling at 30,000, and we got it for 25,000 at a 15% discount. Again, for a piece of land in Tiantong, 25,000, we obtained it for 17,000. Xuhui, we have seen another piece of land for 13,000 when it was at 20,000 at the highest point. Again, 30% discount. So we are analyzing at the moment how come the market is going well, but the land is being sold so cheaply. It's because the developers are worried that they will not be approved to sell. Recently, the expensive land that you have bought last year, you will not be able to get permit. So developers are very concerned that if they buy at a high price, then they won't get the permit, or, if you get the selling permit, you still have to register.
If your price is very high, they will not register it for you, which will affect mortgages and cash collections. Developers will not only look at the market, but also other factors. Of course, only within this room that we are talking about this. When we purchased this land, we have communicated with the local government. Perhaps for some special project, we will have some loosened measures, but that will not be a lot. For example, with some local government, when they approve the price, they might give us a slightly markup because they also want to introduce investment. But it cannot be too high because they need to balance the market. If other people at 30,000 and they will give us for 32,000, they will not give us for 35,000 or 36,000 because that will be difficult for us to sell as well.
We are not that brave to grasp the biggest opportunities. We have so far only completed 50% of land acquisition. If by end of this year I still have good sales and good cash collection, I can buy even cheaper land. If the market is really not good, I will not buy any land anymore. Actually, we have saved a lot of room. If the market is not good and I would reduce my net gearings next year. Here you can see we have a lot of room, and I think most important is safety. At the moment, safety is more important than development. We hope to sell fast and collect cash fast, and whether the profit margin is up by 1% or down by 1%, that is not important to me.
I do not want the profit margin to be too high or too low like some of our competitors. I do not think this is good for the investors. Actually, your second question about the third and fourth quarters, we will have more launches for the second half of this year. About 40% of the 190 billion will happen in the third quarter, and in fourth quarter we will have 60% of the 190 billion. For third quarter, if we sell everything, I believe that we will have already exceeded our target. The last question for Fujian province. Yes, indeed. Fujian is the one that has developed the fastest out of our nine regions. This year, finally, they are number one. In the past, our number one had used to be Quanzhou. But this year we have seen Quanzhou, Xiamen, et cetera.
We are in a lot of cities in Fujian, we are number one. In Fujian province, we have seen growth of 100%, but of course it is affected by the controlling measures, and the biggest control or impact comes from Xiamen and Xiamen surrounding areas. For example, in Quanzhou, it is actually very good. In our 26 billion sales, Quanzhou accounted for 40%, and in Quanzhou, for example, this year, we have sold 10 billion. The boss of Quanzhou, he has already been promoted because he has already met the indicator, and for Quanzhou has sold and offset the impact from Xiamen. For Fuzhou, again, it is also selling well. They also have some third and fourth tier cities which are selling well, some of which are slowing down. If they are slowing down, we are trying to sell fast. Overall speaking, these controlling measures are not very balanced.
Some of the cities are not affected. For example, in the central China or the western China part, they are not quite affected in Wuhan, Chengdu. For Chengdu, we had 600 units for sale and there were 6,000 people coming to queue up. In Yangtze River Delta, some of the cities have been affected. But overall speaking, I think that we would be able to balance. We have 90 cities with 220 projects. By end of the year, we will have 300 projects. We have enough room for us to strike a balance.
Good afternoon. I am [Wen Zheng from Ying Hou Securities]. Your results are very good for Shimao. We are seeing good results in the past few years. Looking into the future, we are seeing good growth margin going forward this year. You can achieve CNY 140 billion. But next year, can you reach CNY 200 billion, and the year after that, CNY 300 billion? Will you have such opportunities every year, growing at 20%-30%? In addition, we also have heard that in the past, your gross margin is 31%-32%. If you are able to maintain this, does this mean that your profit margin can grow at 30% annually? Is this something that investors can expect? We are seeing Shimao in recent years. Is this some expectation that you would give the investors?
Actually, for sales, as you have said, it will be higher than what you mentioned, CNY 140 billion. This is for the sell-through rate at 36%, and the first half of this year is 62% sell-through rate. On average, we think that the sell-through rate will be 55%. So Mr. Shao already told you it is CNY 140 billion plus how much.
You can read about that CNY 140 billion plus another figure. Adding on top the increase of the unit average selling price. As I said, it will be higher than our figure from January to July, because January to June, we have increased 60%, and I believe that this will not be lower than this. This is a very likely event that we will go up compared with last year. Last year is 50%, and the next year and the year after, we do not know, because we still need to look at the overall trend. But what we need t o tell the investor is that we are fully confident that we will definitely be exceeding the average speed of the top 20. In the past few years, we have actually been dragging down the top 20 speed.
First half of this year, we have climbed up the places, the ranking by two places, and we believe that we will continue to climb up the ranking. For top 20, I believe that we will continue to have 40%, and this year may be 35%-40%, and we will definitely be higher than this. For next year, if the market is very good, perhaps the top 20 is still 35%-40%, I will definitely be higher than that. If the market is not good next year, if top 20 is 20%, then I might be at 30% growth rate. We are quite confident. Overall speaking, we still need to look at the market for next year and the year after next. I do not think anyone can make a judgment of what is going to happen next year or the year after that.
What we can predict is only the next three months, and it is something that we are sure about, and we will start very quickly. If you ask him to predict next year, I think it is a bit too early to do so. We have already completed 70% of sales, but our land acquisition only at 50%. We are very prudent, and we have left enough room for ourselves. Taking everything into consideration, I do not think that every year we need to grow at 40%-50%. As long as we are exceeding our competitors' average of the industry. I am not saying that I have to grow at 100%. If I have 100% growth, but they cannot have the cash collection, then that is also meaningless. We need to be down to earth with our business.
As I said, we have over hundreds of millions which have not been booked. Our unit sale is higher compared to previous years. We are confident that we will exceed the target this year, but going forward, I am not sure. Looking at the current sales, I think next year it is possible that we will further increase, for example, to 33%. I do not think we need to go even further up in the future. If you go further up, you will have higher risks. For example, an investor asks, "Are you always after profit?" But I think that profit is also something that you need to consider about a balance of your risks and cash collection. I think 32%-33% profit margin is something that is quite good. If you are talking about something even further away in the future, I do not know.
This year, we have locked in about 80% of the profit. For next year, we will have already locked 70%-80% of next year profit already. But the year after next year, I do not know. What I can tell you is that it will not be too bad. For this year, it is bad. People think it is CNY 13 trillion. For the year after next year, I think it will be CNY 12 trillion. But it will have very little room for small developers. From CNY 13 trillion- CNY 12 trillion, down by 10%. That means for small developers, they will have had a negative growth. I think that this is very good, and we will have some opportunities to carry out M&A. Again, we will have more opportunities by end of this year.
For profit margin, as I already said, this year, we should be able to reach 32% or slightly higher, which means that it is already a lot higher compared to first half of this year. Next year, if the market does not slow down, I believe that it will continue to go up, but after that, I do not know. Well, apologies. I would like to ask for five minutes, because I need to take a flight shortly to participate in an event. I would like to thank, first of all, the investors for your support. Actually, for Shimao's development in recent years, we have talked about this. In the past two years, we have been modifying ourselves, and now we have come back to the running track. 30%, 40%, 50%, these are something that we can expect. What we are actually pursuing is stable growth.
In our meeting this morning, I said we are putting stable growth at the forefront. We are developing without any risks. Risk control is always number one, and speed is something that we consider as a secondary target. It is not something that we want to grow at 100% rate. We recently have seen a lot of land in the market, and a lot of land actually have failed to be auctioned. What we need to be careful is that we need to control our cash flow, our revenue, our cash collection. But overall speaking, we are developing very healthily in terms of our development progress, including our rankings in the market, our profit margin. These are all happening according to our expectation. This is just part of it. What is even bigger or what we are working on, perhaps investors do not know much about this.
We have many different voices internally as well. For example, end of last year, we have obtained a land in Shenzhen for almost 24 billion CNY. If I am going to buy a piece of land of 5 billion, I would be able to buy 50 plots of land. But because this land is a strategic piece of land, and in the future, we will be able to obtain great benefit and revenues from it nonstop. In addition, we also have a highest building in plan for 700 m in Longgang. Is Longgang very far from Yantian Port? After Yantian Port, it only takes 20 minutes to get there. It is the center of the middle. Going forward, it will become the core area of Greater Bay Area. Shengang International Center, what will it do in the future?
It will become a hub for the young people to have their startups and to have their enterprises for the young people in Hong Kong and in mainland China. So what is working there is actually contributing to our business in silence, but it is not reflected quite yet in our balance sheet. For Tianhai Hub, after our hard work, we have already seen good results. It will be launched next year. Every year, we will see income of hundreds of millions. In addition, in Nanjing, again, we have also paid quite a lot for pieces of land in Nanjing. We have these sort of large-scale investment. For example, we have seen that our commercial is not doing well this year, and for Shimao Plaza in Nanjing East Road, have been closed for 18 months. Prior to the modification renovation, we were taking in rental of 100 million.
Going forward, we will be able to receive 300 million in rental. For our main business, we will try our best to not to lose to other competitors, but we also have a lot of other businesses which will create opportunities for us. In addition, we also have hotels. We have almost 20+ five-star hotels. In addition, we have also established a management company, and we have already achieved 150 of such. This is close to the airport. So going forward, this is also something we have planned for our tourism and business. We also hope that it can be listed independently. At the moment, we still shoulder development of 200 million. If we are not talking about this, only looking at our main business, it is no different from other companies. But with this 200 million, it has benefits, and this benefit is continuous.
We are using short-term benefits to shoulder the mid-term benefits, and when all three are working together, the results will be amazing. I believe that Shimao is something that is worth expecting. Thank you very much. I have to leave now.
Thank you. We can continue to invite questions.
Good afternoon. I am Ken from Citibank. I have three simple questions. Just now, the management team said that the sales are growing very fast, 40%. In terms of land acquisition, you have been conservative. I would like to ask about these opportunities. What kind of opportunities do you think is the opportunity at the bottom that you are looking at, that you think, "This is the right time for me to go in?" The second question is for what you talked about for light asset, for your rental properties and hotel properties.
We have seen that you have invested quite a lot, and in the next two to three years, we will see a lot of growth in rental in Longgang and in Hong Kong. When would you consider listing for these parts of business? Number three, for repurchase. A lot of shareholders are very happy to see the share repurchasing. After this, the blackout is already completed. What sort of repurchasing scale are you looking at?
A few questions. The first one is about land. By now, this month, actually, we have realized CNY 150 billion. Last year, around this time, we have only realized CNY 70 billion. We still have a few days left for this month, so to realize CNY 15 billion is not a problem. Last year, this time, we had CNY 7 billion. Again, we still have plenty of money to purchase land.
How come we do not want to buy land anymore? It is because first, we have already bought some at the bottom. If we continue to buy, we are worried that it will continue to drop. We hope that perhaps we should sell our properties first. What is the judgment of at the bottom? We need to consider the government direction, the direction of the market going. For example, in the past, when people are buying, they think it is 5% or sometimes 10%, and they are predicting it to be growing at 10%. At the moment, it is zero, and it has not gone to negative yet. Whether it will go to negative, I need to look at the next few months. What is important is how much do I think it can be sold for? Why am I saying that we are not at the bottom yet?
Because I think in Q4 and in springtime next year, there will be some small developers in even worse situations. By end of the year, perhaps their contractors will need payment and the government will need payment, so they will face a lot of pressure. For example, now they want CNY 1 billion from me, and perhaps by then, they only want CNY 700 million or CNY 600 million. First of all, we need to predict how much they can sell me and how much they can sell this to me, and whether I have the money to buy. We will need to use the cash that we have collected to buy. In addition, I also have quite a lot of inventory myself, so why do I need to go and further buy more land?
In addition, you mentioned about the 200 million, when would I spin it off for the hotels, the light asset? At the moment, I think this is very easy. It is a very small amount. It is light asset, and for the heavy asset, at the moment for the hotel, we have CNY 2 billion, and we are confident that starting from next year, it will grow at 30%, and by the time it reaches CNY 4 billion or CNY 5 billion, then we will look at spinning it off and listing. For commercial, I believe that going forward next year, we will see growth of 40%. If a hotel needs three to five years, commercial might need another four to six years. We are not in a hurry. I think that we need to wait for the mature opportunity.
If you do not have a high margin, then you cannot spin off for a good price, which is our purpose. We would like to spin it off for a good price. At the moment, we have some investors who are discussing with us about purchasing our current running properties. We are doing a good job, and we are in negotiation with them. For the heavy assets, we will have some disposal going forward or spinning off possibly. For repurchase for the first half of this year, our sales grew by 60%, and in July, the stock price was not good, so we have purchased more shares back, and in July and August, we have sold quite well. We need to see how the stock happens tomorrow.
If it reduces, perhaps we need to buy more, but if it is being pushed up, it may not be something we want either because our key is still want to sell properties. That is our key. So the repurchase will not be less than what we have repurchased than the first half of this year. But if you look at the PBT, it is depending on the appropriate circumstances. Thank you.