Investors, welcome to the 2019 Shimao Property Holdings Limited result announcement. Before we start, I will introduce our chairman, we have [uncertain] . With us, the vice president, we have Ms. Tang Fei, our executive, and Mr. Shao Liang, Assistant to CEO. We have Mr. Yau Kwan Shan , our CFO. In today's presentation, we have a few different parts. First is the highlights, financials, business review, and future outlook. First o f all, we have Ms. Tang.
Thank you. Good afternoon, everyone. We welcome our new friends and old friends. Even if the hotel is a bit quiet, our conference room is still full of vitality and energy. I thank you for your continuous attention to Shimao. First of all, I will talk to you about our 2019 business, as well as our financial highlights. For first half of this year, with the government policy, with the housings are for living rather than for opportunist investment, we focus on our business, and we continue to look for stable growth. I will now direct you to the material that you have, and let's go over the PowerPoints together. You all have our PowerPoints, right? Okay. We may continue. Please turn to page four. For the first half of this year, we mainly have these following highlights for Shimao Property.
First of all, in terms of the contracted sales, we have enjoyed outstanding growth, sustainable earnings growth. Second, we still have the industry-leading profitability and steady increase in dividend to reward shareholders. Thirdly, we have high quality and sufficient land reserve and multiple channels and precise land investment. Please turn to page five. First of all, in terms of our contracted sales, we continue to enjoy outstanding growth. For the first half of 2019, we have enjoyed RMB 100 billion contracted sales, a year-on-year growth of 38.7%, and contracted sales ranked 12th, growth in events attributable in 2019. We have already completed 47.8% of the full year sales target in terms of our contracted GFA, reached 5.56 million sq m, year-on-year growth 23.3%.
Page six, we continue to enjoy steady increase in revenue and gross profit. Since first half of 2018, since the growth of 18.8%, for this year, we have enjoyed a growth of 32.9% to RMB 56.56 billion. In the meantime, our gross profit and GPM have increased by 28.9%, and GPM maintained steady at above 30% in first half of 2019. In terms of our revenue for first half of this year is RMB 56.56 billion, and accounts for 94.1%, which is the property sales, and non-property sales account for 5.9%. Our revenue mainly comes from first and second-tier cities, and the top three are Fuzhou, Beijing, and Suzhou, accounting for 15.4%, 10%, and 8.8% respectively.
Next page. First half of this year, core net profit continued to grow dramatically, and our operating profit continued to grow. Core net profit RMB 7.58 billion, year-on-year growth 23.8%. Core profit attributable to shareholders, RMB 5.31 billion, year-on-year growth 20.6%. Core net profit margin is 13.7%, year-on-year drop of 0.6%. Operating profit RMB 14.18 billion, year-on-year growth of 18.8%. Profit attributable to shareholders RMB 5 billion, year-on-year growth 19.5%. Earnings per share RMB 1.55, year-on-year growth 22.5%. Page nine, Shimao, we continue to thank our shareholders for their unwavering support. This year, we continue to give out dividend of HKD 0.60 per share and year-on-year growth of 20%. We continue to issue good dividend for three years consecutively.
On page 10, replenish land reserves via multiple channels, sufficient saleable resources for a profitable future. First half of 2019, GFA of new land was 14.12 million sq m. Saleable value from new land growth was approximately RMB 250 billion. Second, GFA of new land from M&A was 9 million sq m, translating to a saleable value of approximately RMB 180 billion. In first half of this year, the land market was quite heated, so we have used acquisitions to replenish our land at a lower cost. By end of June 2019, land reserve was 64.07 million sq m, translating to a saleable value exceeding RMB 1,050 billion. Our group continue to enhance our land reserve in the policy regions of the government.
This year we have obtained and focused on Greater Bay Area. We have obtained land in Shenzhen, and we are also working in Hong Kong. For first half of this year, we have also continued to have deeper development in Yangtze River. In addition, we also have projects from Hangzhou and Nanjing. We actively complement and replenish good quality land reserves in Yangtze River Delta. In addition, we also focus on Beijing, Tianjin and Hebei, and we developed a presence in Zhangjiakou, Huailai. With respect to our other aspects, please take a look at page 11. First half of 2019 contracted sales reached 41% of the annual target, RMB 12.2 billion first half of this year. Revenue grew by 5.5% year-on-year to RMB 12.82 billion.
Profit attributable to Shanghai Shimao shareholders increased by 9.8% year-on-year to RMB 1.59 billion. Let's take a look at the financial highlights on page 14. First half of this year, we have enhanced on our cash collection. We have seen good results. We also have ample capital reserves. Through our cash collection management and various ways of looking into this, we have worked hard to realize good results. For first half of this year, cash collection reached RMB 81.3 billion, with a year-on-year growth of 47.8%. This is up by 5% compared to same period last year and up by 3% compared to full year of 2018. By June, we have ample capital reserve, cash on hand, RMB 52.2 billion. We still have RMB 40 billion unutilized credit facility of banks and onshore financial institutions and exchanges for the solid development of the group in the future.
On page 15, we have sound debt structure with strong short-term liquidity. By end of June, our total debt is RMB 109 billion, balance of borrowing 5.8%. 70% of the loan would expire in two years, and in the short term, we would not be affected by the RMB exchange rate changes in the long term and midterm. We also have derivative tools. In the meantime, we also have various projects in Hong Kong. With the Hong Kong projects being launched and put into business, this will help us with the hedging, and which can lower our exposure to foreign exchange risks. In the meantime, we also have a very healthy borrowing structure. Our long-term borrowing, RMB 83 billion, accounting for 72%. Short-term borrowings, RMB 32 billion, accounting for 28% of total borrowings.
By end of June, we have total cash ratio 1.6x , so we have good liquidity and strong short-term debt repayment capabilities. Next page. We pay attention to extending our strategic cooperation with financial institutions. For first half of this year, we see tightening in the industry and we continue to see new policies. We are very stable, and we understand the policy very well. In the meantime, we work with financial institutions, continue to extend and expand our financial channels. Having a low-cost financing channel is one of our advantages. In the meantime, we also have ample reserve in the market. With our onshore subsidiaries, by end of May, we have been able to receive the rating of AAA, and we were granted different loans.
So far, we have a total of RMB 40 billion unutilized credit facilities of banks and financial institutions and exchanges. Shimao's ABS, ABN unaffected by the tough financing environment. Since July, we have seen CBIRC's window guidance on trust institutions. For us, we did not get involved. We were not affected by the window guidance, so our projects are well underway. In terms of building our own capability, our company continues to work with other banks, having strategic cooperation. In addition, we also have very clear advantages in offshore financing. For first half of this year, we have $2 billion bond quota from NDRC, and we issued at coupon rates of 6.125% and 5.6%, which were considered relatively low. Through the blended funding cost, it has always been controlled at a low level.
Our funding cost of first half of this year controlled at 5.6% against 5.8% in 2018, down by 0.2 percentage points. Next page. Our net gearing ratio compared with 2018, even if it has increased slightly by 0.2%, it has reached 56.6%, but it has been well controlled below 60%. If you consider about the adjusted gearing ratio, it should be 50.9%, and international and domestic agencies, they continue to hold the positive rating of the company. The next page. For end of June this year, our total asset has reached RMB 415 billion, fixed asset RMB 62.41 billion. We also have the market value of major investment properties and hotels reached RMB 79.7 billion.
This is the financial highlights of the first half of this year. Now I pass the floor to Mr. Shao for the business review of the first half of this year, as well as our operations.
Thank you everyone, and I am going to talk to you about the next two parts, which is business review first. In terms of land reserve, we have land reserve in 101 cities. We have increased 14 new cities and a total of 301 projects. By June 30th , 2019, we have 64 million sq m for land reserve. We have sufficient saleable resources in hot regions in the country, valued over RMB 1,050 billion to meet the continuously growing demand in the future. Next page 21. For land acquisition in first half of 2019, total land parcels 16. Total GFV, 14.12 million sq m. Average cost, RMB 5,581 sq m.
Our newly acquired land are located in first and second tier cities. Proportions increased to 80% if strong third and fourth tier cities are included. Next page, you can see that we have a very flexible and multiple channels for land acquisition, and proportion of M&A notably increased. We have followed the policies closely. Not only that, we focus on the different cities, and we also have various other ways through cooperation and to lower the cost and to have good opportunities in terms of M&A from the land cost. It accounts for 60%. This is up by 37% compared to 2018. The proportion of GFA from M&A is 64%, up by 33% compared to last year. In terms of land reserve, we cover the whole nation.
We currently have 346 billion sq m under construction, and this is more than enough to meet the demand of our current need. We also work with the countries closely, and especially for those areas with good economic situation, as well as a lot of demand from the enterprises. In Yangtze River Delta, Greater Bay Area, over 200 billion. In northern China, over 150 billion. Next page, please. Second half of 2019, for saleable resources, including the newly acquired land in 2015, we have about 22 million, and we believe that our sales should be able to reach RMB 400 billion. Based on conservative sell-through rate of 53%, it is very likely that we will reach our target of a setting of beyond RMB 100 billion. I would also like to talk to you about some of our new products.
The first one is Shimao Shenzhen, and this is in Longgang District in Shenzhen, and this is a mega product, mega complex. The total GFA is 1.36 million sq m. Total investment, RMB 50 billion. We have top hotels, dimensional commercial, international schools. In terms of our business, we will introduce flagship shops of various international brands and to present this as a good window for showcasing to the world. We are also building a complete commercial experience and to become a center for library, art galleries, activities, and fashions. We also hope that we can build the future way of living. Next page. In terms of our property management business, so it has officially become a property business. We continue to work, and we also have acquired certain good quality companies. We work with other industries, for example, with SenseTime, with Unisound, et cetera.
We work with them to look for new experiences of the future way of living. We also focus on diversity and coexistence, for example, community elderly care, community education, et cetera. We hope to become a comprehensive service provider to our Shimao users and to provide the high-quality services to our clients. Next page. On future outlook. For first half of 2019, we have contracted sales of RMB 100 billion, rose by nearly 40%, reaching 48% of full-year target of RMB 210 billion. For second half of this year, we will continue to maintain the strong growth momentum. Contracted sales are expected to grow by more than 40% year-on-year. In the meantime, whilst we grow with such a high percentage rate, we are able to maintain a sell-through rate of 50%, and residential products accounted for 68%.
Inventories aged below one year accounted for 70% of saleable value as end of June 2019. Next page. In terms of cash collection, first half of 2019, cash collection RMB 81 billion, representing year-on-year growth of 48%. Cash collection ratio 81%, up by 5% year-on-year. Cash collected from receivables increased by nearly 50% year-on-year. Cash collection from new sales was maintained at 45%, and the collection efficiency continued to rise. Next page. Plan for second half of this year. With over RMB 400 billion of saleable resources for 2019, if we work on the basis of a 37% of sell-through rate, we would be able to reach our target. In the second half of this year, we will continue to improve our sell-through rate if we improve it from 37%- 50%.
If we can also continue to have a stable, steady rise of our selling price, the group is confident of reaching a higher target. In terms of our development in key cities, we have a very good supply and demand in those first and second-tier cities and strong third and fourth-tier cities. We have around 80% saleable resources in core cities will exceed RMB 180 billion, accounting for 60% of total. Resources are focused on beneficial regions and supported by the government national strategic policies. Finally, I would also like to tell our investors, by today, August, at this time, our group for August, it has already reached over RMB 20 billion, and we believe that we still have a few days left in August.
We believe that the contracted sales for August should be over RMB 140 billion. By Q3, our sales progress should reach about 80% of the whole year. We believe that in 2019, our group will bring more surprises and more happiness for everyone. Thank you, dear investors.
We have seen a lot of familiar faces here and thank you for supporting us at such a late time. First, talk about the market. The market first half of this year is actually better than what we had imagined, and it had grown by 5.6%. I remember that I said that it might be falling by a few percentage points, but actually it grew, so it is hard to predict. For March and April, we have seen a lot of land kings, and there has been a lot of demand in the market.
There are some disadvantages here, and you might think that developers want the markets to be hot, but actually when March and April were heated, we had a lot of policies coming out in Suzhou. In one month, they would have three to four policies. They need to have a lucky draw, and the housing price cannot go up, et cetera. So, it is very strict, it is very tough. Our current forecast for the whole year is the same as last year, so this year should be about RMB 15 trillion. It is possible that we might exceed it, and if we go to RMB 15 trillion, that would be a historical high. Looking at the Chinese market, I do not think that it can be less than RMB 13 trillion, nor can it exceed RMB 15 trillion.
Last year it sold about 1.7 million sq m and about 2,000 flats. The trajectory is that it will gradually come down to RMB 1.6 billion, RMB 1.5 billion, but the unit price will increase. Top 20 for the first half of this year, they grew by 12% and we grew by 39%. Again, we are above the national industry average, and I believe in the next few years we will continue to be ahead of our peers. In Xi'an, in Chengdu, in Suzhou, they have very strict measures, and we also have seen some relaxed rules, for example, in Shanghai, in Lingang et cetera. Looking at the central government, this is already one city, one policy, and in the central government, they are tightening in every city.
In the newspapers we have seen in People's Daily, they have said that property market have taken up too much resources, and I do think that is true. The government is promoting more loans to SMEs or to tech companies, et cetera. We need to wait and see how this could be resolved or solved. For the first half of this year, we have newly added saleable RMB 250 billion, and by today, it is already at RMB 300 billion. Actually 60%-70% comes from M&A. Our target is that for the RMB 250 billion, 1/3 of this could be supplied to the market this year, and we hope that we can have a sell-through rate of 50%, which is about RMB 40 billion. This is our sales and adding another RMB 40 billion on top.
I think at least if we have a lot of land and we do not sell the apartments, people might ask, "What are you doing?" For the whole year, a lot of people are very nervous and they are saying, "You have already bought so much." For the whole year, if we have half of our money invested in obtaining land, that would also exceed RMB 100 billion. We have already used 70%. For the second half of this year, we will be slightly pickier, and we will be looking for something with a better return, better profitability. Mr. Shao had mentioned this, and he had mentioned that it had already exceeded RMB 170 billion and in the traditional low season, we did feel some of the coming down, but September is our biggest month, and we hope that the sales can be over RMB 30 billion.
We may not be able to reach last year's level. Last year was RMB 176 billion, but we believe that Q4 will exceed Q3. A lot of our acquisitions happen in Q1 and Q2. A lot of the sales will happen in Q4. In terms of our cash collection, we have seen an increase of 48%, and first half of this year, we sold RMB 100 billion. For the remaining of the second half, we are going to exceed RMB 300 billion. Based on our conservative sales through rate of 37%, we will exceed our sales target. I believe that sales through rate will not stay at 37%. Of course, we are going to surpass the sales target, and I can tell you more about this when the year finishes next March.
In terms of recognized sales, first half of this year, RMB 56.56 billion, up by 32.9%. Gross profit, RMB 17.02 billion, up by 28.9%. GPM 30.1%. Some investors might think that this is slightly different. We will talk about the futures gross profit and the core profit attributable to shareholders. We are predicting that the annual core profit attributable to shareholders will be above 25%. Some investors are asking this question. The 25% is before the equity is taken out. I think that above 25%- 30%, I think that is very good. Our stock price hasn't moved much, so that means that it's even cheaper. In terms of our dividend payout, it has increased by 20% to HKD 0.60 per share. Annual DPS up by 25% year-on-year.
For the whole year, if our core profit goes up by 25%, our DPS also be up by 25%. When we got listed, our price is HKD 0.65. If you will have held this till today, you will have made HKD 0.80 per share in our share. If you look at our land reserves, we have a lot of land in Yangtze River Delta, Central and Western China, and Greater Bay Area. In terms of our land acquisition, actually two-thirds of our land acquisitions are in the top first and second tier of the cities. The remaining are from the strong third and fourth tier cities. So, 80% of our stock is located in good cities, quality cities. You can see our price in first half of 2018 is RMB 16,596.
In first half of this year, again, the ASP is RMB 18,000 . Our land cost is RMB 5,581. So actually, our return is going up. Remember what I said, this year is about 31.5%. If it's slightly lower, it will be 30.5%. Next year, I think that the gross profit margin might be 32%. It might drop slightly. Why so? This is related to national policy. As I said, in good first and second-tier cities, we have about 80% of our resources, which means that we have about RMB 800 billion in those cities. For those portion, actually, a lot of it is affected by the price cap, which is 30%, is about RMB 200 billion. Actually, for the RMB 200 billion , those will also be sold. Mr. Shao can sell this in one day.
Now we're looking at whether we can add some car parks and add some renovation to increase our profit. Shanghai, Suzhou, Nanjing, Hangzhou, those are the cities which are very strict, and you cannot increase your price. Greater Bay Area is slightly cheaper, slightly more flexible. So, Guangdong people are very smart. In Fujian, in Fuzhou, it's very strict. Xiamen is decreasing, the price is dropping. Some of the third and fourth tier cities, they're also very strict. In Quanzhou, also very strict. I don't know how much they have grown. You might think that Quanzhou is small, but actually it's very big. In Chengdu, in Chongqing, a lot of tightening measures, and those are issues that a lot of developers face. For us, if it's 5%, 10%, we'll sell it. We hope that next year, the year after will be better.
In Q1, actually, we have seen some loosening, and in some places we can add 5%- 7%. In April and March, it got heated, and the government said that the price cannot go up anymore. When the market is too hot, it is not good for us either. We have a price difference about 10%- 20%, and actually, I do not really want to sell those. For the RMB 40 billion, we will sell about 10 billion every year and then sell it for four years. Those would be sold very easily. A lot of people have waited for a long time, and we hope that with the tightening measures maybe loosening, we can adjust our price slightly up. If you are having a difference of 10% every year, then overall speaking, that we are talking about billions, and those would be your gross profit.
Your net profit will not be this high because net profit, you still need to pay tax. In terms of gross profit, we are sacrificing 1%. Actually, we wanted to make money in third and fourth tier cities and make more back from first and second tier cities. Now the situation is that what you have lost, you have lost, and the government is tightening the measures, and they do not allow you to put up your price. I want to tell the investors, the third and fourth cities are not as bad as we had forecast. The price has dropped by 10%-15%; however, the volume has dropped slightly. Indeed, in some third to fourth tier cities, we do not make money anymore. The first and second tier cities, basically, they have had the price capped. Those are not excuses.
Those are the real situations. For the second half of this year, we have seen 16% growth. I am not very happy. This is for the hotel business. In Shanghai, we have three major hotels which are under renovation. If you have about RMB 400 million revenue without renovation, you would be able to enjoy a 30%. In Shanghai, we have a great hotel, which is underground, and that is a great hotel. The price in this hotel is on average, double the price of the concession area. For other five-star hotels, it would be about RMB 1,000-RMB 2,000, and our price would be RMB 3,000-RMB 4,000. Second would be our commercial and entertainment, and I believe that a lot of our commercial and entertainment buildings will be put into use. Actually, we are slightly different from other companies.
They might have a larger volume, and I have seen the model based on their location. For example, next to a subway. If you can establish one for RMB 1 billion and you build 50, you have RMB 50 billion. For Shimao Group, we are slightly different. We want to build something like IFC in Hong Kong. For example, in Shanghai, our renovated business only have 50,000 sq m, and at the moment the largest ones are generally 100,000 sq m. For us in Nanjing, in 2020, we will have a commercial business with office buildings that would be RMB 800 million-RMB 900 million. In Longgang, in Shenzhen, that will be more than RMB 2 billion. That will take about eight to nine years to develop. In terms of properties management business, we have acquired a lot of property management companies.
In the past, we acquired about RMB 400 million-RMB 500 million, 40,000 sq m to 50,000 sq m under management, but now it is over 400 sq m to 500 million square meters. For our living services, for example, with SenseTime, we have bought only a very small equity. We also have New Frontier, and they have just acquired United Family Healthcare, is the best one in China. I believe that this will continue to grow, and we have only invested in $100 million . We will have a lot of cooperation with other companies in culture or education. Do not worry, we are not going to spend hundreds of billions to make cars. These are very meaningful because they are related to the aging population, and this will help us to discuss with the government.
Now we go to the government, and they usually give us a long face, and they think that, oh, you are in the property management business. I think I have paid a lot of tax. Perhaps in the future, we can look into elderly care and healthcare. I believe that for the next year, we have already celebrated our 30th anniversary. I think I am very happy. We have seen good growth of development. For the past few years, we have seen good growth, over 50%. Second, our quality, our quality, again, top three. In the past, we were not able to develop so fast. You have seen that when other companies try to develop fast, they will suffer in quality. So, Mr. Shao can really focus on selling apartments, and he does not have to worry about complaints.
In addition, for our property management business, we are going to list this business in 2021. We are working with investment banks at the moment, and our contracted areas will move from 100 million to 300 million. So, we are called Shimao Services, and that means we are going to serve 10 million people. We hope that next year we can have about RMB 4 billion-RMB 5 billion in growth, and by the time we list, it will be about RMB 8 billion. This is how we do the math. Even if our cheapest properties actually have a lot of good value, and I hope that you can work with our bankers and speak with them actively. For Shanghai, we also hope that in terms of hotels, we hope that we can reach RMB 4 billion next year.
This year, we have RMB 2 billion, and our growth margin is above 30%, and our EBITDA is about RMB 700 million. I have asked, actually, a good friend of my father, and of course, he is also my friend, but he is a lot older than me. He had acquired a hotel, which had about 60 hotel chains. Last year, he had about RMB 700 million. It is RMB 7 billion, and he made about RMB 700 million. I am thinking, I have a lot smaller hotels, but my profit is the same as you, and we hope that our profit com es first. What [uncertain] mentioned about our values, et cetera, but it is different in the balance sheet. If you go to Shanghai, and there is one called Hyatt on the Bund, and last year, their gross profit is 50%, and we invested about RMB 1.6 billion.
When we bought, it was only RMB 4,000 per square meters. After a decade, I asked them. On our balance sheet, it is about less than RMB 1 billion, so RMB 2 billion EBITDA, and that means the business is above [20x]. I think that for Bund, you have this great return that is amazing. In our PowerPoint, we also have a chart for your review. We also have a hotel called Mini Hotel. We have worked with Starwood Capital, and we have signed 80 hotels, and we hope next year we can sign 200 hotels, and we hope that 2021, we can sign 300 hotels, and we also hope to launch business in 100 hotels. I have seen that they have one hotel. It is very beautiful in Zhangjiajie. It is built in the mountains, and this hotel is about RMB 1,000.
If you go there, I can give you a discount, but this is not ours. We are just helping them to manage. It is very beautiful. In addition, for our commerce and office buildings, that is also part of our business. In terms of culture, in terms of elderly care and education, those are all areas that we want to get into. This is our basic infrastructure.
Thank you, Jason. We now move into the Q&A session. We welcome you to put forward your name, and please let us know who you are, where you come from.
Thank you. I am Wang Weijing from [uncertain], and I congratulate the company for your great achievements for the first half of this year. I have two simple questions. The first one is on scale and the profit and your balance of those two. We have heard that after a few years of a fast development, and you are in a safe ranking in the top 10, and in addition, your finance is also relatively healthy. Looking forward in the next three to five years, we want to see where would your strategic importance areas would be. Would you consider that you slow down your speed and to have a better profitability? This is my first question.
My second question, the management team have also talked about your stock price is relatively attractive. After this, would the company buy back some more shares?
Well, actually, two questions. The first one is on sales and profit balance. I think that in China, it is very hard to pursue high profit, because even if you have high profit, this will be broken up in the end anyway. Also, even if I want this, and they would not give it to me. I have also seen a lot of the experts in China say that this is not realistic. When we buy land, you buy something that is cheap, you can make a lot of money, but they do not want you to make the money. We have heard ridiculous stories, for example, developers, and they auction it, for example. I am not telling you which one. They auction it for RMB 13,000 per sq m. For me, I will spit blood. There is no money to be made out of this.
I have heard that they are going to bring this out and sell it next year. But again, this is really unreasonable, and I think that in China, it is unreasonable to pursue very high profit. I think 30% is good. I had a meal with an investor, a friend, and he said that the property business is just the way it is. It is stable. Hong Kong is different. There is no NACS, so Hong Kong property companies, they prefer to hold on the land, which is why it has caused such a whole social unrest in Hong Kong. I think that China is still good. Don't think about making so much money.
An investor asked me a very strange question, and he asked me, "I saw one developer, the tax is very small." I said, "How do I know? The tax is very high in China. We all pay tax." [uncertain] told me a story about how much tax it is paid. I was shocked, but we need to pay tax. I think that this is also why in China, you can't make a lot of profit. The policy would not allow it, and the tax would not allow it. 30%, I think, is good. But the volume, the larger, the better. Again, you need to control your risk, and cash collection of 50% accounting for 40% of your money used to buy land, because you also need to pay for tax and your cost, and basically, you might also have some negative cash flow.
So, you might be able to control your gearing ratio. How do they buy land? A few years ago, they would literally buy RMB 50 billion worth of land, and they buy buildings worth of RMB 10 billion. They also buy land worth of RMB 10 billion. But now, a lot of them, they are discussing with us to cooperate. Well, I would like to thank them. In terms of share price, it is at a low point.
Recently, perhaps we have a lot of international investors, and I have been speaking with some of the larger fund managers in China, and they say, "You are growing fast and you have low gearing ratio. How come your share price is so low?" I also said, "I don't know. Well, why don't you buy it? When you buy it, then it will go up." But of course, this is just joking, and I believe if I continue to deliver growth of 50% and 20% of profit, I don't think my stock price will fall. This year, we have already spent a lot of money on land and to repurchase, and I think that it will not look good for our gearing ratio.
I think that you guys are all very smart, so a lot of investors are also very smart. I remember a few years ago, our stock price did not move because we do not have growth speed. But now, we are actually the fastest-growing company among the top 20, and we are actually top two now, and the number one is facing a lot of problems. But actually, we have worked with a lot of people, and I think that we need to sell. If I just buy land and I don't sell apartments, that would be tough for me. So, for the third and fourth quarters, we will sell. People used to think that we are strong in Yangtze River Delta, but actually, in Fujian, we are very big.
In Fujian, last year, we sold about RMB 50 billion, and the whole Fujian province is RMB 500 billion. The Fujian boss told me that he wants to go into fifth and sixth city, I told them, "Oh, no, that's not going to work." This year, in Greater Bay Area, we have increased land of almost RMB 100 billion in Taihe, in Guangzhou, and in Foshan, this is all in Guangzhou, I'm very bullish in Yuetai, I think that this is great, I think that over 100,000 sq m, I was told that this is going to be approved, I'm very excited about this. I remember last year, for two land in Hangzhou, they were at the bottom price, they said that you will get good price. But actually, they're still telling me that it cannot be approved for a good price.
I don't think that the government is not doing or backing its promise, but it's because the central government is watching it very closely. We have acquired a very large residential, you can see that Shenzhen is a great city, we're very bullish on Shenzhen as of this point.
I'm Ken from Citi. I have three simple questions. The first one is on your purchasing of land. I would like to congratulate you that you have been able to obtain very cheap land. Earlier this year, we have seen great gross profit, at the moment, you're more likely to exceed RMB 100 billion. So, this M&A, is it possible that you have any other opportunities to purchase land of this quality at this price? Second question, I can see page 38 with your calculation for your land price and your ASP. I can see your gross profit is very good. Just now, you said it's only increasing slightly.
So, if you look at this, if the land cost is not rising and the ASP continue to rise, is it because what you have predicted is very conservative, only 1% increase? Thirdly, on page 41, you have said specifically for 30th anniversary. Is there any special meaning? You have special dividend payout arrangement? Thank you.
Great questions. Actually, for M&A, I have already mentioned this. First half of this year, we already have purchased RMB 78 billion, this is pre-equity. Pre-equity for the whole year would be RMB 100 billion. This is with the cash collection. I can tell you that it can be slightly more, but it depends on the market. So roughly speaking, we already used 70%. For the second half of the year, we only have 30%. If you ask me, do we have any of such opportunities? I can tell you that even more, because in China, the property market is a market with very high gearing ratio.
So, in certain areas, for example, Beijing, Shanghai, Nanjing, Hangzhou, Suzhou, they are under a lot of pressure. But in third and first-tier cities, if there's not much pressure and they can loosen them, they can not be under a tight watch. A lot of Developers, they have borrowed a lot of money, this is why we can have so much M&A. This is because there's no premium, there's no pricing power with these people that we acquired the business, because they need to pay back billions of RMB next month. They cannot bargain with us.
You cannot say that top 100 or top 20 is safe, but you are wrong. Now the banks, they are looking at your cash flow, looking at your balance sheet. For the first half of the year, we have actually acquired top 20 firms, and in the past two months, we also have strategic corporations with top 10 companies. They may not be small property companies. The small companies are the majority, but we also work with big companies as well. I think that there are more opportunities, and we will have higher requirement. In the first half of the year, maybe net profit of 10%-11%, we will obtain it. The net profit for second half of the year, maybe we are looking at 12%-15%, because now uncertainties are increasing. The financing environment is quite bad.
Of course, we are in a good position. We have gone in early, and we have also issued billions, over $1 billion debt. Some of the banks have been calling me, "When are you issuing bond? When are you issuing bond?" I used to find that quite annoying, but actually, thanks to them, I was able to issue some more U.S. dollar bond. In July, we have 4.3% of syndicated loan. Again, very good. Now with the current environment, the bad environment, I think that to have syndicated loan, it would be very difficult in Hong Kong. I believe that some of the assets are actually coming down, and this is the Hong Kong situation. I think that financing-wise, we have grasped good opportunities, and for land and housing price, it means that they cannot book.
Perhaps they can only book in one year or two. But I remember some people have said that, "Oh, you said this, but now you cannot deliver." I think that we need to consider all areas. For example, force majeure, some unreasonable policies. These are all things that we need to consider. But if I can predict all this, I would not be sitting here. I can work as a fortune teller. The 30th anniversary is of nothing special significance. Perhaps we will have some celebration. I can invite you, but now maybe you will not be able to attend our celebrations. This is quite a pity. Actually, this is a great time for us to celebrate 70th anniversary of China's establishment. But due to the bad external environment, it will affect our mood. But in Hong Kong, we have three projects. One is a hotel in Tung Chung.
It is very cheap. I remember the land is 3,000 per sq ft. In Q3 next year, we will launch it. Actually, in Q2 we were planning, but I think we are going to slow down. But long-term speaking, I think Hong Kong is good, and I believe that our country is still loving the child. Right now, this child is not behaving, and more beneficial policies have been given to the child next door in Shenzhen. But in Hong Kong, actually, we have two more projects, and investors always ask, "Shimao has something that is not great. Do you have a lot of debt?" Yes, perhaps we issue a lot of debt, but for debt and syndicated loans, we have 57%. 57%, yes, indeed, highest in the industry average is 40%.
But our three projects in Hong Kong, two residential, actually, you can sell for RMB 50 billion, and our equity, one is RMB 10 billion. And what we collect would be Hong Kong dollars, and for our hotel, it's also Hong Kong dollars. So, I have 60% that I can hedge, and I only have about 40% of 57%, which is 20%- something . Do you think that I have a lot of foreign currency? And a lot of these three projects, if you account this, then we are actually the lowest of foreign exchange risk, and we are going to sell end of next year. And thank God we're not selling at the moment. Again, this is a good thing. The bad thing has become a good thing.
Good afternoon. I'm Sun Yang from [uncertain]. I have three questions. First, I want to ask your financing plan, financing structure for second half of this year. Second, for those unbooked, what is the level? And thirdly, I want to ask, you mentioned about the company's equity. And what is your guarantee and what is your off-balance sheet ratio?
Well, for financing, I think we can talk about this after the meeting, we have a colleague sitting here. For financing, actually, it's quite random, and some of which is loanings from projects. You can speak to our finance person, and he is more up to date about this. I have another event to attend, so maybe we hurry it up and have about one to two questions. A lot of these people, I know them very well.
Well, I can see Jason today. I'm very happy when I see you. Overall speaking, your overall sales is very fast. A lot of the things will come out in the future. This actually reminds me of 2013 and 2014. It was a similar period, Shimao, at that time. First, your big cycle grew very fast. In 2014 and 2016, we had some problems. Now, looking back, for Shimao, compared to the past, what is different now for your growth? In terms of growth, do you have a better growth, more stable growth at that time?
We have also been through some pain, right? So, Jason, I wonder if you could share with us, share with the investors, how come you're talking about 25% growth and we have RMB 1 trillion to sell, et cetera, and what is your view on this, and especially on risk? You have learned quite a lot from the past and what are the risks?
Well, I think that this is a great question. Yes, indeed, in 2012 and 2013, after 50% of growth, we stopped for two to three years. Again, we entered top 10. Perhaps it's dangerous to go into top 10. Just joking. Well, I remember a lot of investors saying that it's hard for a property company to realize RMB 100 billion, but now, a lot of them are, and perhaps possibly over 40 property companies this year. At that time, I think that our scale, our team, were not ready, but now I'm very happy with my team and with a lot of our regional managers, regional CEOs. They have incentives. We also have a reward pool, and we are incubating a lot of vice presidents.
In the past, in terms of our quality and satisfaction of our customers, we were mid-range. Perhaps industry average was 60%, and we were 60%-something. I spent three years actually working hard on this, going to Shaolin Temple to practice, and now our quality and our satisfaction of customers were top three. For national policy, again, your houses are there for people to live in. To live in, you need to have good quality. You cannot have leaking issues, et cetera. Again, quality is very important and we also have very good land reserve this year. We have worked with our partners, and we are also seeing good quality of land reserve, a lot of which is allocated and distributed in Greater Bay Area.
A lot of people ask me, "How much more land will you buy?" For first half of this year, we have already obtained 70%, and this year, over 80%, and top 20, top 50, and top 100. In Q3, we also work with top 10 companies. Through all of this, we have also spent our money. I have a bottom line, which is the 50% of cash collection. [uncertain] is always telling me, "You should stop. You should stop. You cannot buy." But he also encourages me to buy. He is a great CFO. I think that this is a good balance. The counterparty is also short of money, and sometimes when they hear this, they will have a long face, but that is tough. I am giving him RMB 2 billion, RMB 3 billion, et cetera. Again, very important thing is to control your risk.
Last two questions, okay? Last two questions. Very sorry. I am from JP Morgan. Jason, you talked about your core profit, 20%-25% this year, and your sales grew by 50%. Do you think that the 25%, can you predict that this will last to 2021? Second question for saleable resources, it is very clear this year. I want to ask about next year. I can see that this year you have been quite aggressive in terms of land acquisition. Next year you have about RMB 500 billion-RMB 550 billion salable resources. Next year, to go to [uncertain] billion is not a problem. Am I too positive or too pessimistic?
Well, this is a great question. If our sales this year is growing so fast, I think that this year compared to 2025, that is not a problem. For 2021, can we last to that? Well, this really depends on the next few months. Will Trump have another fit? Will he go crazy again? You never know. I think that 2019, 2020 should be stable. In 2021, I cannot look that far into it. For the second half of this year, if it is similar to at the moment, I think that we will probably have about 20%-25% growth rate. I am quite confident. Next year, saleable resources should be a lot more than this year. We did acquire quite a bit, and I think over RMB 500 billion.
But again, that depends on your sell-through rate. If it is 60%, that would be RMB 300 billion. This would depend on Mr. Shao and how can he improve the sell-through rate. Again, this has your supply issue. Are you going to supply more in first and second-tier city or are you going to supply more in the third and fourth-tier cities? I think that next year, I don't think there will be a lot of changes, and things should roughly be what you have mentioned. Thank you again for your attention, and this is the end of today's result announcement. Thank you very much.