First of all, welcome to Sino-Ocean Group Holding Limited's 2018 interim results announcement. Let me introduce to you members of the management in attendance today. We have Chairman and CEO, Mr. Ming Li. To the right of Mr. Li, we have Mr. Hu Li, Executive President. On his right, Mr. Haicheng Wen, Executive Director and Executive President. On Mr. Li's left, we have Mr. Adrian Sum, Executive Director and Chief Financial Officer. Let me introduce myself. I am Victor Zhu, General Manager of Corporate Executive Center. Now, I will invite Mr. Ming Li to start the presentation.
Ladies and gentlemen, welcome to Sino-Ocean Group's 2018 interim results announcement. Now, I will briefly go through our first half results. Overall speaking, in the first half of this year, there are two major characteristics in our main business. First, regarding development of residential properties, we did quite a good job.
In terms of investment and investment capability enhancement, we did a lot of work. Besides concerning investment properties, their operation was stable. At the same time, we started the urbanization process. Now let's take a look at our development business. In the first half, contracted sales was CNY 45.1 billion, up 48% year-on-year. Cash recovery, CNY 31.9 billion, up 30% year-on-year. GFA sold was up 41% year-on-year. ASP was CNY 20,600, up 1%. Then if you look at regional distribution in the first half, our sales mainly came from five major city clusters, of which Beijing-Tianjin-Hebei accounted for 36%, Yangtze River Delta, 10%, Yangtze Midstream, and Chengdu, Chongqing, 24%. Pearl River Delta, 20%, Other Regions, 10%. In the second half of this year, sellable resources would be CNY 130 billion, up 60% year-on-year.
This means that sell-through rates will have to exceed 40%, then we will be able to complete our sales target of CNY 100 billion. In the first half of the year, the main thing that we did was that in the past one year or so, adjustment, the structure of our supply had changed significantly. For new resources, they accounted for quite a high share. Light assets, CNY 100 billion, almost 80% of the total. Then concerning our inventory, there is an increase in inventory by 20%, so there are mainly residential products accounting for 90% of the total. Originally, for high-end villas and apartments in Tier 1 core cities, they accounted for quite a big share. Now, let's take a look at our land bank and investment capability. First of all, investment capability in residential properties was enhanced.
In the past one to two years, we focused on enhancing our capability. Now for our investment capability in residential asset, it was greatly enhanced. If you look at regional distribution, there are some Tier 1 cities and Beijing-Tianjin-Hebei area where restrictions or macro control measures were more stringent, and our strategy changed from this area to Yangtze River Delta and Pearl River Delta. In the past, we focused on single cities, and then now we are moving towards regions, and there are many quick turnover projects. In the first half, we acquired 39 projects in 20 cities. For these 39 projects, they were selected from more than 1,000 projects. Of course, these were shortlisted from a few hundred projects, and new land bank was 6 million square meters, with value over CNY 130 billion. The principle of acquiring these projects was quick turnover.
They are mainly small- to mid-sized projects. One third of them were 200,000 sq m. 200,000 sq m- 300,000 sq m, 20%. For a single development project, over 300,000 sq m, there is only 5% in the new acquisition. For overall layout, it is now more reasonable than in the past. For the new projects acquired, basically, they can reach the investment standards after enhancement. For these projects, they are for sale, they are saleable properties, and then we have got a 368 standard. Within six months, we have to make sure that commencement can start and launch in six months, and after eight months, whether we can achieve sell-through of 50%. When we do calculation, we very strictly adhere to the existing prevailing price and gross margin, and IRR must exceed 25%.
After our hard work in the past one to two years, our total land bank was almost 50 million square meters. For the coming few years, this land bank can lay a strong foundation for our sustainable development. Land cost on average is CNY 7,000 per square meter. For regional distribution, there is 40 million square meters, 80%. Around our five major clusters, Beijing, Tianjin, Hebei accounted for 30% odd. The cities in Hebei saw faster growth. That is about our land bank. For quality of our land bank, first, for equity ratio. For every half a year, there is an increase of 2 - 3 percentage points in our equity attributable. Last year, it is around 50%, 51%. In the second half, 53%, 54%. Now it is around 56%, 57%.
With increase in our land bank, equity will continue to increase, and when we enhance scale of development, we will also buy back and acquire from our working partners. That part will also increase. In some core cities, we start to dig deeper. For example, in many core cities, land reserve exceeds 1 million square meters in some cities. Financing. We maintain the investment grade rating with Moody's and Fitch Ratings in the first half. Interest-bearing liability cost was slightly up from last year, but it is very small increase. Now, the cost is 5.26%. This is the average finance cost. We issued U.S. dollars bonds offshore and onshore, and they performed quite well last month. We issued Chinese yuan bond, five-year term. Interest rate is 4% odd. It is quite good, and we issued a three-year U.S. dollar interest-bearing bond with quite good interest rate.
Concerning financing channels and credit facilities, they are adequate. For credit facilities approved, the total amount is almost CNY 200 billion and net gearing ratio is 76%, up from same period of last year. The reason for the increase is that we increased investment at the same time. We do not want to increase equity by rights issue or issuing new shares. We put in place some control at this level to enhance our investment capability. Repayment capability, no problem. Interest coverage ratio all along has been above 3x . Next slide, please. Regarding debt and debt structure, I think our debt structure is quite even. Repayment pressure all along has been small. For onshore and offshore debts, on one hand, we maintain control of the share of offshore debt, which is now at 35%.
In the second half of last year, we did foreign exchange hedging. The impact of foreign exchange risk is limited. Concerning our debt structure and financing methods, they are diversified. Over 50% were corporate bonds publicly issued, 15% bank loans and syndicated loans, 30% development loans and IP loans, project loans. These are all about development. Let me move on to investment properties. Investment properties in operation, they are mainly offices, urban complexes and retail business. They are mainly in Tier 1 and Tier 2 cities. GLA, gross leasable area, reached 1.16 million square meters. Total rental income, CNY 1.66 billion. Attributable rental income, CNY 1.1 billion, up 20% odd year-on-year. Total EBITDA, CNY 1.05 billion. Attributable EBITDA, CNY 0.68 billion, up 20%. Investment properties under construction. Total GFA is about 2 million square meters.
75% of it is in Beijing and Shanghai. The investment properties are mainly offices and some retail spaces. Altogether, overall speaking, the total scale is 3.6 million square meters . Two-third are in Beijing and Shanghai. Offices account for 56%, retail 37%, hotels, long-term rental apartments together, 7%. Apart from self-operation, our main working partners are Swire Properties and WeWork. The scale of partnership with these partners and the closeness of cooperation has been strengthened. Attributable book value is CNY 46 billion. Projects in operation, CNY 29.7 billion. Rental yield for offices, 6.5%. For complexes, 8.2%. For retail space, 5%. For investment properties under construction, CNY 16.4 billion in valuation. From land acquisition, completion, launch, and operation, that's the progress. There will be increase in the overall layout.
Regarding our investment properties and commercial properties, we have started securitization of assets and we also set up funds and C-REITs to build the light-asset model. This is underway. If things are fast, then at the end of the year or if it is slow, then early next year, we will basically complete the building of the light-asset model. In this way, every year, there'll be 800,000 - 900,000 investment properties being added to the fund, and then there will be 800,000- 900,000 new investment properties which will start operation, and then we will be able to realize turnover. That will be our operation model. Apart from offices and retail spaces, we also have other businesses. First, Ocean Home plus. GFA under management exceeded 50 million square meters. In the first half of this year, we deliberately stopped the development of external properties.
We focused on enhancing service quality internally, and we also started some value-added service. The GFA under management is 50 million square meters, so there is big growth from last year. We are in 28 cities. Revenue is around CNY 800 million, net profit around CNY 100 million. In the first half this year, in operating communities, we started integration. Revenue increased almost 2x . Then we have Senior Living L'amore. There are nine projects, 2,000- odd beds in operation. We are preparing to operate 110,000- odd more beds. We hope that at that time, we can reach a revenue scale of CNY 1 billion. Besides, for our main shareholder, China Life, and another shareholder, we are promoting the cooperation model of insurance plus senior living. Shareholders collaboration. With our two big shareholders, mainly China Life and Anbang Insurance Group. The structure is very clear.
The efficiency of our governance is getting higher and higher, and we have better and better cooperation relationship with shareholders. In order to further improve efficiency, we have reduced the number of members in the board. Well, because we have worked together for quite some time, the working relationship is good and now we can improve efficiency. In March this year, with China Life, our majority shareholder, we signed a cooperation agreement for long-term care insurance business. This is a cooperation in relation to product research. China Life, all along, has been giving high degree of support to Sino-Ocean. The total has reached CNY 7 billion with China Life. Concerning our other shareholder, Anbang, that's our cooperation with CIRC and CBIRC in May this year.
With Anbang, we set up a 50/50 JV to take over the fixed assets, manpower, and companies under Anbang. This work is progressing smoothly. Regarding our business in the first half, that's basically it. Now I will pass the floor to our CFO, Adrian, to talk about financial data.
Thank you, Chairman Li.
Now let me introduce to you our financial highlight for the first half of 2018. Revenue for the first half of 2018 decreased by 11% to CNY 15.4 billion as compared to the first half of 2017. The revenue from property development decreased by 15% to CNY 15 billion, primarily because of the timing of revenue recognition. Project being delivered in the first half of the year decreased. The gross profit decreased by 5% to CNY 3.6 billion. Gross profit margin increased 2 percentage points to 24% for the first half of 2018. Core net profit slightly increased by 1% to CNY 1.5 billion for the first half of 2018. Core net profit margin increased by 1 percentage point to 10%. Profit attributable to owners of the company show a decrease of 13% to CNY 2.3 billion. Net profit ratio remained at 15%.
Basic earning per share decreased by 13% to CNY 0.31 as compared to the first half of 2017. Dividend per share in the first half of 2018 decreased by 16% to HKD 0.14. Dividend payout ratio remained at 40%. We remained sufficient cash resources on hand of CNY 25.8 billion and a healthy net gearing ratio at 76%. The total revenue amount to CNY 15.4 billion, with a decrease of 11% as compared to the first half of 2017, mainly due to the lower delivery in the first half of the year and some revenue generated by the projects held by joint venture and associate, which are not recognized in the top line. The property development segment contribute 84% of the total revenue.
In geographical distribution, five major city clusters accounted for 81%, with Beijing-Tianjin-Hebei region contribute 30%, Yangtze River Delta region contribute 15%, Pearl River Delta region contribute 30%, Yangtze Mid-Stream region and Chengdu-Chongqing region contribute 6%, and Other Region contribute to 19%. Unbooked revenue amount to CNY 17.8 billion. 45% will be delivered in the second half of 2018. Another 45% will be delivered in 2019, and the remaining 10% will be delivered in 2020. Gross profit margin increased by 2 percentage points to 24%. Excluding one-off item, core profit margin increased by 1 percentage point to 10%. Core net profit amount to CNY 1.54 billion. Despite the revenue decrease due to the timing of the recognition, core net profit absolute amount increased slightly due to the moderate increase in the profit margin of our core business.
Profit attributable to owner of the company show a decrease of 30% to CNY 2.33 billion, mainly due to more one-off item in the first half of 2017. Dividend per share for the first half of 2018 is HKD 0.14. Total interim dividend amount accounted for 40% of the net profit attributable to the owners of the company and 61% of the core net profit. Our company is capable to maintain a high dividend payout ratio. Now, this is the end of our presentation, and thank you. We now pass the time back to Mr. Li.