Mr. Lin Xingang, Director of Greentown China, and together with Mr. Fung Ching, CFO of Greentown China. In the performance, the management will first introduce you on the performance and the overview, and there will be a Q&A session. Mr. Fung, please.
Thank you very much. I am very happy today to see so many of the friends from the investment sector. I estimate that in the past few months, I picked a lot of the phones, and I cannot tell you, but today, eventually, I am very relaxed today, with the CCCG's trade transaction has been completed, and the equity change has been finalized. CCC has become also major shareholders. Leaders from China Communications Construction also participate as a colleague for this result announcement. My presentation will try to be brief.
CNYI understand there should be a lot of questions that, from the new leaders, we have to exchange with you. I will brief you on the PowerPoints we have divided into four. The overview, together with the operation review, financial highlights, and then the prospects. In some of the details, one can see also from the appendix on the project pre-sales in 2014, sales recognized in 2014, newly at the land bank in 2014, projects to be completed in 2015, together with the key projects to be launched in 2015. In slide three, the revenue was approximately 10% up to CNY 3.2 billion. They also almost like 9.7% recognized from the CNY 3.110 million. Profit-wise, it was CNY 3.210 million, with a drop of 46%. The core profit was CNY 3.250 million, representing a drop of 38.4%.
The bottom, the attributed to owners for the profit was CNY 2.072 million, representing 57.6%. We will explain to you why the profit is like. For the financial position as of now, we have approximately CNY 9.084 million, with a net gearing ratio at 76%. Last year it was 60%, a little bit up. Last year, we have also had two offshore finance. One is the beginning of 2014, with CNY 500 million. Capital Securities was for the Wharf's sustainable bonds, but it was a kind of a transfer function. At that time, the note rate was 9%, but when the repo, it was 3.5% premium. So the actual interest rate was 12.5% with 9% to issue the new bonds. It was quite worthwhile because of the new bonds. There wasn't any kind of transfer, so there will be no directives influence.
For February this year, we have also have the coupon rate with 8%. The notes sold together was CNY 20 million. To finance proved that in Greentown on the investments credibility. As the sustainable bond has never been an easy issuance, but the market is quite recognized. So the real oversubscription was actually 5x . At the beginning of this year, it was also a very bad situation in the market, but we still had some property market in China. I can see the amount of investments, and you were also having holidays. At that time, we worked together with Easton and also Credit Suisse to have finance. Interest rate was okay. The notes was 8%, but actually it was 9%, it was quite good. For the pre-sale, we have done a good job last year.
In terms of the GFA, it was approximately 7% increase of 3.9 million sq m, to 9.4 billion, as of also the contract sales and 3 billion for the subscription, which has already set up the target. Most important of all is, of course, at the end of 2014, Mr. Song decided to have the transaction with CCCG. It was approximately 525 million shares, which is the same shares and ratio with The Wharf. After the transaction, CCCG also had two executive directors to join Greentown. One of which is to have a joint chairman together with Mr. Song and Mr. Zhu. The other one, Mr. Sun, he is originally the general manager of the property section in CCCG, so he is also as the executive director. It is expected that him, in both parties, will have much better cooperation and also resource sharing.
Mr. Li, together with Mr. Li, also joined us for the Greentown Group as senior management, two of them are also our directors for the group. Generally speaking, on the situation, slide six is on the presale. Of the CNY 76.9 billion, it was actually CNY 79.4 billion, correction. But for the subsidiary, it is CNY 39.9 billion to the group. For the subscription sales, it was CNY 3 billion, and then another CNY 1.5 billion was attributed to the group. We have all together, 116 projects with an average price of CNY 20,264 per square meters. In 2023, it was CNY 20,115. So the sell-through rate was 46%. Even now, the price-wise, high adjustment, we can still maintain on the average price of CNY 20,000 per square meters. We are one of the top 10s in terms of the average sales price.
Now that we can have the price, in other words, we have also certain kind of a volume in terms of sales. In terms of the volume, we also ranked the top 10s in China. This is based on the regional distribution of the presale. You can see that Hangzhou and Zhejiang takes a much larger share in the market, almost like 50%. Then we have Shanghai, Jiangsu, and Shandong, which is also having a certain percentage. In terms of the market share, it has been already seven consecutive years in Zhejiang has ranked 73.38%, and in Hangzhou, number one, together with the Yuhang and Xiaoshan District, 12.51%. In terms of the development scale, despite at the end of last year, the total GFA has almost like to 20,200 - 1078. But in terms of the quality and volume, we still have a tight control, including the cost control.
That is something that we have to highlight. On the newly added land bank, all together, we have 11 land projects. The total area, 2.12 million sq m. Attributable sale is, of course, 1.247 million. Total GFA, 4.184 million. Attributable GFA is 2.523 million sq meter. The total cost was 2.52 million, but with our own capital to pay for the cash is approximately CNY 3 billion. We also have the partners to pay for the rest. If we have already had the finance arrangement, we do not have the current liquidity to do the payment. Last year, the average rate was approximately 4,184 sq m, but comparing to, we still have a lot of the land on the tier 1 and 2 cities, for example, in Shanghai. In Shanghai, we have the total land bank.
Towards the end of last year, we have all together 98 projects, including the construction for future development. Total area, 34.78 million sq m, contributing to 19 million sq m attributable to the group, and all together sellable GFA, 25.56 million sq m. Together with the attributable sellable, 13.68 million. The average land cost per square m eter was the top 10% at approximately a medium level. I have to say that if it is less than 10% on the equity ratio, we did not add to prevent the figures a little bit too big. Talking about the honors.
In 2015, in September, the State Council has also, together with the Tsinghua University, and also on the China Real Estate Top 10 Research Team, to form the Top 10 Research Team, have a kind of ceremony with all together having 12 cities, with nine cities as well, with the customer satisfaction. It has been already four consecutive years with the good results in the satisfaction. In other words, it is being recognized by the city, and Greentown in 2014 is also number two in the brand value with a property of CNY 19.883 billion brand valuation. In terms of the shareholders, the CCCG transaction was mainly the founder, Mr. Song Weiping, together with his wife, Ms. Xia Yibo, together with the Executive Vice Chairman, Mr. Shou Bainian, all together, they have sold an aggregated of 5.24 billion shares, which was also same price.
Total value was CNY 6 billion, and it was already completed for a transaction on the 27th of March, and it has been already transferred, the payment to the other party's account. CCCG is a top Fortune 500 company, as well as one of the SOEs owned by the Central SASAC. They are allowed to conduct real estate business. CCCG's role offshore, listed real estate platform, Greentown, will also benefit from CCCG's SOE background on land acquisition, development, and finance. We could also expand quickly, given Greentown's market-leading position and brand goodwill, that will complement each other of the developing both at home and abroad to create synergies and value for both parties as strategic partners. Let me show you on the structure of the transaction on diagrams.
As you can see that prior to the transaction, Mr. Song, Ms. Xia, and Mr. Shou has a total share of 42.828% share. After selling the shares, their ratio will be approximately 18.539%. CCCG and Wharf are the two largest major shareholders, and the public has also 28.261%. The structure of the directors and the board members are, of course, more diversified with multi-parties benefits representing the experience as well. The Executive Directors include Mr. Song and Mr. Shou as our Joint Chairman, and the Executive Director with Mr. Sun and also Mr. So. On the Wharf representatives, you know that Mr. Wu Tai has also promoted as the Chairman of the Wharf. Mr. Stephen Ng will be the Chairman for China, and Mr. Tsui will be also with the Green.
Mr. CFO, Xu Yuxiang, will be also our So we have also the independent executive directors, all of them. We have altogether 10 directors, four executive, two non-executive, four independent non-executive directors. Let me share with you also on the financial status. As you can see that in terms of revenue, it was going up. However, the margin went down with the profitability went down. The overall profit margin dropped from 28% - 23.5%. The reason is, of course, on the property delivered projects. Most of them were the properties bought in 2009 with higher land costs. But we're using a very quality property to build those projects. Originally, it was expected that price would follow the market, the market to go up. But unfortunately, for the last couple of years, the central government executed the property limited purchase and policy.
They also limited price and also the digestion. The price not only being increased but went down. This is the main reason of the gross profit going down. If we always have a product mix in the tier 1 cities together with the tier 2 cities, some of the landmark projects and the selling price were approximately CNY 40,000- CNY 60,000 per sq m, and the profit was more than 30%. But there was almost half of them were in the two, three, four cities, and the price in average was between a little bit more than CNY 10,000 per sq m. So the gross profit margin generally is only about 10% ± . Generally, some of them are approximately 30%. So with a mix, then we're talking about 25%.
The revenue also dropped, and we can see that also on the 2013, we have CNY 1.57 billion, but in 2014, it was approximately CNY 400 million because that contribute to the joint ventures in associates. The average gross was only 16%. They have also done many of the some of the capital slash. We have already prepared for that. Other than that, in terms of the administrative expenses and also selling expenses, there was also increase. Among the administrative and selling It was because of the staff costs. We also have a salary reform last year in order to match the region. So the salary increase range was quite big. In terms of the sales commission, because to maximize the sales, we have also a lot of expense on commission.
In terms of the finance cost, this is coming to the balance sheet, but the overall finance cost, we talk about CNY 3.425 billion. A great increase because mainly the offshore finance together, it was actually on 2014 or on 2013, it was continuing for the finance. It was only partially having the expenditures, but throughout 2014, it was the whole year with this kind of overseas finance. On the average, interest rate was also down. In 2014, it was 7.9%, but in 2013, it was only 8.37%. On the CapEx, it was 9.1% and then 78.9%. On the gross, that explains, as I told you already, I'm not going to repeat, but for the core profit, deducting on the acquisition and also the capital cut or other some of the average and changes and also others, and this is our core profit.
On the balance sheet, it is also on the rise of liabilities, bank deposit drop. Currently, for the financial status, naturally, we are expected to have more improvement. Currently, the level of which is still what we call a comfortable zone. For the liabilities, it is not more than 90% of the gearing ratio. For the FCCRs, restriction on about 3 x of our bonds issuance. It is still with our guarantee parameters. On slide 19 is on cost structure. In terms of ratio, it was not a big change regardless of the land cost, construction cost, mainly from the unit price, depending on the current projects, at what kind of unit price. This year, actually, you can see from the appendix, many of these projects are located in tier three, four cities. Secondly is on the debt and cash position.
On the banks and other borrowings, generally in China, as notes, of course, on the high interest rate overseas, total borrowings was actually a very average thing. One year mature, and then 1-2 years, and then more than two years, CNY 11.2 billion. The net gearing was approximately 76.7%. On the offshore, we talk about CNY 14.5 billion, which is quite a reasonable time. With CCCG coming in, injection, we will gradually improve to have more long-term structural products. Lowering down also the finance cost. For the financial position, I'd like to explain that Moody's is rated B1 ratings, S&P BB-. After CCCG join us, they will re-rate the situations. Hopefully, there will be improvement and upgrade. For the credit, we have all together CNY 49.4 billion facilities. We only used last year CNY 18.3 billion. A very good credit facility.
We have to control our liability, so we are not going to increase our borrowings. Last but not least, on the simply, a little bit about the prospects, and I'll reserve more time to be briefed by Mr. Cao. Naturally, our top topic is also to form a strategic partner with our major shareholders. In a while, CCCG's Mr. Li will brief you in more details what after they join Greentown's strategic consideration. In terms of the product diversification, our products are still more focused on the medium to premium properties. We also have to transform not only on the property development as our main business. As for the quality, we keep on emphasize, regardless of whatever location. We are not going to sacrifice our customers and quality to satisfy the profitability. Number three is on the flexible policies on the inventory.
Not only because we have to reach those sales target, forgetting about the selling price, but we are not going to insist on not to cut costs, but depending on different products, different locations to have more flexible measures. Number four is also on the financial management. We have to do more, better planning on land acquisition, product research, that we have to balance the profit together with the quality. At the same time, we expect that there will be more finance channels after CCCG joins us. Number five, we also keep on saying that our core is still our staff. Of course, Mr. Song always insists that we are doing business with people as a topic. This year, we also mentioned on the management to be younger, to nurture young people to be our management.
On the sellable properties, area-wise, it is approximately 6.58 million sq m. Selling price is approximately CNY 130 billion. On slide 29 is, of course, the contracted but not yet recognized in 2015. It is already almost like CNY 4.4 billion, with CNY 64.1 billion amounted. But the actual sales are because we still keep on selling, and they will also add to the current year sales. This figure doesn't represent all the figures. Thank you.
Thank you, Mr. Fung. Now, Q&A session. Before personal question, please identify yourself and your institution. Because of the time, each one is only limited to two questions. First question, please.
In the past few years, Greentown has changed a lot on the equities, and it is a damage to the shareholders, dropping a lot of the share price. Yesterday, Mr. Shou has finally sold his shares to CCCG.
It seems that it can be certain, but CCCG has only take 24.3%. Would there be, in the future, any kind of equity change? Number two, as you were saying that we have changed also many of the management on the stage. Now there is Mr. Cao, but a few you say Mr. Cao with another, Mr. Guo, leaving Greentown. Would Mr. Cao be still here? There will be a new change of the people? What about CCCG with 24.3% shares? It seems that Greentown for CCCG as an absolutely control. But this is unfair to the Wharf, because they are the same share, same right. With two executive directors, and the Wharf has also two non-executive directors, and the equity will be also stable.
Can the management tell us that with the overall Greentown, you have the CCCG, the Wharf, and the original Greentown, who is actually manage this company? Who are the shareholders?
Thank you for your detailed question. Good questions. After several reshuffle of the management, with so many investors coming together, I'm so happy about that, but the question is quite good. You mentioned about the equity, the so-called Greentown incident. I really appreciate at the end, that you still focus on the trend in Greentown, especially on the structure of the shareholders. Number two, I do apologize that because last year's equity incidents, not only causing the share price or the investment confidence, more or less it was influenced. You mentioned about also after CCCG, would there be any kind of change for the management? I may have to answer from this perspective.
CCCG, as Mr. Fung said that earlier, they are one of the top Fortune 500, which is also an SOE. CCCG has its own total asset of more than CNY 600 billion. The biggest feature of SOE is that because they are highly marketized with a lot of overseas development, and they have already penetrated into more than 100 countries, especially on the technical construction. Under CCCG, they have their own property platform, including China Urban City and CCCG Real Estate. As far as I know, CCCG has started integrating the internal property sector to have a new organized CCCG property group. You mentioned CCCG's participate in the shares. What about the stability of the shares in Greentown? I believe as a famous SOE, CCCG currently is also listed together with the Wharf as the major shareholder with the Greentown shares.
Participating on this kind of shareholder's restructure, as I said, there will be also a very, very profound strategic consideration. CCCG resource integrations, and it's also capital, and it's also intelligence combining with Greentown's branding and also our construction. I can say today that Greentown, in terms of the mainland property, we are number one in the development. Same goes with our brand. You are quite aware of this, and that is why you focus on some of the fundamentals of Greentown. In addition, the Greentowns, including, as Mr. Fung said, that it has been already four consecutive years that product quality was number one, service quality number one, and various indicators were also number one. This is what we have to rely on for our survival.
Under this foundation, CCCG has this kind of advantage on their capital, and together with our brand, with Greentown and development and teamwork, plus outstanding service quality, Greentown as a service group in China was ranked the top. I believe that CCCG is coming into Greentown. Shareholder reform is not temporary and not by accident for this incident. This is a very, very profound consideration. We are saying that after the entrance of CCCG, a famous SOE, and with CNY 600 billion, and also the Wharf is also a famous blue chips in Hong Kong with CNY 400 billion. All together is already more than CNY 1 trillion, combining Greentown's fundamental capability in this industry. I believe this kind of equity structure is the most stable, and a lot of room for imagination for Greentown's development, I understand.
That is why I invite Mr. Lee to say that this equity structure is stable and a very excellent structure. Number two, on myself. I'm sitting here, whether I will be here also for next year and year after. Personally, in order to cope with the development need for the company, a couple while ago, I was also aware of some of the reports from the media. Those are untrue. You also saved me some face by saying that or even including Mr. Shou's resignation. You didn't mention about that. People can see from the PowerPoints. I have already explained, in general, my position will also have to be adjusted based on the development of the group. One thing that remains unchanged is that personally, I will also contribute my work to the development of Greentown.
I believe that, put it this way, for a certain period of time, I wish that I can join year- after -year. Based on the arrangement of Mr. Fung. The third question is about approximately CCCG's 24.3% versus the same share of the Wharf. You believe that in terms of the governance, it seems that it is a little bit unfair, and CCCG is different than the Wharf, which today is a financial investor. This is not true. First of all, the Wharf starting in 2012, and by the Wharf using its also capital influence, the Wharf is that in terms of the property contribution for the last couple of years, Greentown has a lot of the long-term development. It is inseparable from the attribution of the Wharf and really appreciate their contribution for the last few years.
Number two, the equity structure, CCCG and Wharf are the same shareholder. The only difference also on the seats of the directors. CCCG, in terms of the property market in China, even if they do not have many of the development projects, they are focused on the tier 1. They also have a lot of overseas development. Wharf, in terms of the inland development, they are lack of that, but both party will have to send their people. They are the expertise preferences or the professionals. What positions they are going to be shared in Greentown was taken into consideration. More is that we are talking about one entity as Greentown. Two benefits is the CCCG with two wings. One wing is CCCG, the other one is Wharf, and then we can fly even higher with the two wings.
On the opposite, CCCG and Wharf in the future, in terms of the long-term development, definitely they will offer each of their own resource contribution to Greentown. Naturally, this is their concern for the two major shareholders. I do not know if I answer your question to explain the situation, but generally, good questions from you, and I express that I have also a lot of room for imagination for the future of Greentown. In terms of the three questions, one is on the equity change. It was quite noisy. But from the other aspect, Greentown's value in terms of the equity market is totally underestimated. Many of the company are still fighting for Greentown. When you call me, there is no way for me to answer.
It is because I am so busy day and night, and Mr. Shou is coming back, and with the potential investors, we have a lot of more than 10 potential investors. The official due diligence to accept, there was also four of them on the potential investors, which is of course the price of Sunac. But the equity is approximately 6,000, and they are willing to have a kind of negotiated price to buy Greentown, not only CCCG, but the other three investors. They have already completed their internal approval. But at the end of the day, we have chosen CCCG, the SOE, with land resources with a lot of synergy. That is the answer for Oscar, and I am just looking at Greentown on a different aspect. Secondly, on Mr. Cao, what is going to happen for him? He is going to be by me leader in the future.
He is still sitting in the front, in the center, sitting for next year. So in the execution, it would be mainly by Mr. Cao. The other one is, in the past years, changes you are well aware. But when Mr. Song returns and Greentown, basically he is coming back to Greentown, and for the management execution, it is quite stable. No change. It is only different kind of shareholders coming to the board, and there will be some change of the board. But in terms of work, in terms of the management, there is no change, and that is the coercion and also on the sense of belonging for Greentown. That is why we have absolutely no problem at all. If it is going to be a different company with this kind of turmoil coming back, and nobody knows where to have your expenses reimbursed.
But in the end of December, when we just celebrate the new year, we are still facing very stringent pressure from the capital. We have already passed. There is no any kind of construction company asking for payment, and that is number two, trying to express that the team is still very, very healthy. Number three, in terms of the CCCG and the Wharf, I would like to say, Oscar, the Wharf has never raised this question. Whether he is asking you to ask this question? No. The Wharf has never raised this question to me because we had a very good exchange with the Wharf, and they welcome the participation of CCCG in the future management control. After the transaction is completed, we will have more in-depth discussion. So they are quite satisfied of the current change of the equities there.
Also, Mr. Shou being our Vice Chairman, they have also had Mr. Wu, Mr. Ng, because he is already the Chairman of the Wharf, so Mr. Shou has to come instead of Mr. Ng. So on the 27th of the board meeting, Mr. Shou came personally to say that, expressing that the new Greentown after CCCG is full of confidence and support, as you can also verify with the Wharf.
Next question.
My name is Eugene from UBS. I like to ask further CCCG's investment to Greentown. What kind of strategic consideration? Because CCCG has also integrated their own CCCG property group. So what is their consideration of Greentown? Would they be also trying to integrate their property asset, or there will be any other consideration?
It seems that from the media that Greentown will be used as a kind of a platform for overseas development. Second question is on the sales target this year, and what about the gross profit? What about the trend for the next couple of years?
The CCCG's injection to Greentown is totally a strategic consideration. You mentioned that CCCG started in 2012 to acquire the China Property Group, and then CCCG start to build the property business as under the SOE. CCCG did not have the license, but actually there were some property projects under their different kind of business units. But having no license, they have also some limits from the central government with the national capital. So afterwards, they were certified, licensed, so they started to have the CCG property with CCCG Property Group, et cetera.
But in a few years' time, they have involved a lot of the capital with a lot of land bank reserve by using CCCG's platform for the technical structure. So they have their own advantage, because especially on the communication property with quality lands and also valuable land. But just because CCCG's power of development and also the construction and sales are limited. So for last few years, CCCG's property development was quite slow. Under the situation, it so happened that last year that they joined Greentown. So this is a strategic consideration. This is one of the reasons. And if on the current land resources of CCCG, together with their Greentown's brand value and also in construction capability, this is a very large room for their ability in terms of the CCCG's injection to Greentown. This is a win-win strategy.
CCCG were having some kind of support and synergy in Greentown. The other one is also by utilizing CCCG as a kind of SOE background, their credibility in the financial market, also on the capital markets benefits and in the future in the Greentown finance to decrease our financial costs and also contribution same goes with our gross margin. Mr. Cao also mentioned that CCCG as a company, 40% of their income or their revenue is from overseas. For the overseas part, for infrastructure investment, they have also some lands. The source of land is also CCCG has the largest global reclamation area, and also the China engineering company. Also on the reclamation, this is a larger one. Once they have the lands filled, they can also accept a lot of land.
Also in their offshore investment, they have also built, for example, Wharf, and they do not have the capital, so they will also an exchange of the land. In the future, the land in the overseas development will be becoming also a base. So by using CCCG's and Greentown's combination of the overseas ability number three within onshore, for example, a piece in Shantou with Lianying Harbor, CCCG has a tier 1 land recommendation. All of this land acquisition, in terms of the cost, is of course quite competitive, combining with Greentown's sales capacity and also under construction to have them combine together to realize the CCCG's ability.
Next question.
Hey. Good morning, Sunny. Hi. My name is Weigali from Person. I try to understand further on the collaboration with CCCG's details.
Can you give us a figure that the property development business in CCCG, what about the total areas under CCCG? Where do they having the lands? My second question is also on the collaboration with some of the products on Sunac. Would Greentown will have also have another activities before they apply for the Sunac? My question is also on the dividend. What is your kind of dividend policy in the future?
I will tell you a little bit about also on the land. CCCG property currently has a land bank reserve of approximately in Tier 2, 3 cities, not too many in Tier 1, but since last year, it was approximately 19 million sq m. Naturally, that does not include the lands, for example, in the reclamation area in Shantou, and they are not released. So this one is not included.
On the offshore land, CCC has not doing any kind of development. The real land is less than 20 million sq m. That is approximately the figure. For the Sunac, I was involved. For the Sunac, at the end of last year in Sunac, after joining the work, Greentown has also another announcement. Based on the announcement, I'm going to repeat more, but the meaning is that in Sunac, they are expressing that we have already coming into a negotiation, coming into a kind of efficiency. The announcement is that we have discussed on both parties, but the prerequisite is that we have to go through the board approval of Greentown, and that was the core message announced at that time. In terms of the people concerned about the Sunac, what exactly is the situation?
Well, at the end of the day, it is a kind of a deal, it is a business. As such, whether we can carry out this business and what about the transaction structure and the price? At what price? Three problems here. They have to, that I have to have three prerequisites. One is that we have to comply with the law, whether Greentown, the board has to approve whether there will be also shareholders approval by the Greentown shareholders. Number two, all transactions will have to comply with Greentown's maximized benefits and interests. Number three, be reasonable. I believe under these three prerequisites, any business can be negotiated, which is only a deal, actually. This is very much like buying a piece of land, whether we have to buy it, at what price, and what will be our market positioning and market price for this.
You mentioned about also the platform, including the Sunac. Both parties are still having discussion, based on the three principles, compliance to the law and maximize interests of the shareholders, and also we are still discussing on these three conditions. in the near future, there should be a proper arrangement. That was the question, right? On the dividend, the board has decided not to have any dividends. In the past, there was a stable dividend policy, so it was quite good. But in terms of the dividend, we have consulted with the major shareholders and also with the institutional investors together with the shareholders, their opinions are having to, currently, are having a higher gearing ratio. Naturally, one party believe that, if it is profitable, there should be a return on the dividend as a return to the investors.
But the other party say that if you are having a higher liability and you are still having dividends, that for your own development is not so good because you still have to rely on the borrowing, and the average interest rate is approximately 7.9%, which is quite expensive. So dividend-wise, this is a larger portion is in the book. So there are also some voice for opposition concerning about the cash flow and also the future challenge, and that is why temporarily there will be no dividend. But Mr. Shou believes that dividend is always number one for the investors, and if the share price for us, we are trying to work it out, but there is no way we can guarantee. But dividend is something that the management will have to guarantee. So believe that in the future, there should be also a steady dividend policy.
Okay. Thank you.
Irrelevant question, but last week there was a new thing that Wharf is going to sue Sunac. When acquire your company, there was some inappropriate thing. Would that be related to Greentown? [Foreign language] As Secretary General, which is also quite sensitive as a compliance. Now that it involves, as far as we read from the news report, this is already coming into the litigation process. We are not going to comment.
Next question?
Isabelle.
A few questions. I see that it was approximately CNY 120 million provision for the receivable. What exactly is the situation? It seems that you do not see it very often. Second, Mr. Fung said that on the Tier 3, 4 cities, the profit was about 10%. We understand that there is still loss. So what is the percentage for last year? What about the loss projects last year? How many we suffered a loss? For the Tier 3, 4 cities, what is going to happen in the future? How Greentown will deal with this? Is it still continue to suffer the loss or any other ideas? The other one is, Greentown used to have what we call the Greentown Construction. Now the report is also the Bluetown. What is the relation with Greentown and the Bluetown? Why the name was changed?
The other one is that, in talking about also the new land, Greentown has only paid CNY 3 billion. What about those land not being paid? What kind of interest rate in terms of history? What about the parties? What about the interest rate from the parties? What kind of relationship? Is it cheaper or are you suffering some loss? Let me explain. Number one, on the accounts receivable, if it is a joint operation, where does the money go?
On a long-term non-liquidity cash capital, the money is only purely on the share. When you invest in the share, it is a right and also on the shareholder's loan.
For the shareholder's loan, it is accounts receivable in terms of the liquidity on the. This provision of which the asset is suffering a loss, meaning that for the presale price, and first of all, this is also lower than the cost, so you still have to do the provisioning like that. That is why it is provision in the accounts receivable. That is on the Greentown's project in Shaoxing. This is also made clear in our analysis from dimension. Secondly, about the Tier 3, 4 cities loss situation. In the appendix. Which is the slide 33. Correction. It should be slide 29. As you can see that in the Tier 3, 4 cities, it is a little bit difficult in translation for the English, but we have the Zhejiang, the Rose Garden in Taizhou, and the sales rate was approximately 5% of CNY 41.4 billion.
The Xinjiang Yuyuan was CNY 31.3 billion, and Lantong Rose Garden was CNY 9.6 billion. For the joint venture associates, we are talking about CNY 31.3 billion. We have the Jinan. It was 7,900. Then Jinan, we have another one, which is 17,000. This is also including the commercial building, together with Wuxi, 16,000. Of all these projects, the sales price was low, and that is why they have a lower gross margin. Deducting the fees from the joint venture, they are suffering a loss. Indeed, there is a loss, but for the overall consolidated statement, this is listed in the three major shares. So each of the company's net profit. Theoretically, there is a loss, but if there is only one or two projects from the joint ventures, it is not easy to have them calculated.
To be more specific numbers that you ask, it is so difficult to say, but it can be easier than on a consolidated statement. If it is each of the statements of the margin and loss, it is quite difficult to calculate because all of this cost can match, but for the details, we are also available. You can have them referred. If you need further details, we can also provide you afterwards. Number three is on the Greentown subsidiary last year. Originally, Mr. Song was trying to leave Greentown, having his retirement, to change to Bluetown. Actually the same company, now it is called Bluetown. It used to be the Greentown, but now the listed company is still taking 34% share and also consolidated statement, not to do the investment and development.
For the associates interest rate, generally, this is the true interest rate for the associates, which is a little bit up than our bank borrowings. Naturally, we have the trust. In terms of the trust, it is roughly about 10%. That takes approximately, on the books, CNY 4.5 billion, but that is already included in the liabilities. There is not any off-the-book trust.
Because of the time, we can only entertain last question.
I come from Genie Investment. I would like to ask two questions. Number one is that whether the management has already formed, and what about list of the management, and what about the responsible works for each of the directors? Question number one. Number two, I would like to ask about our products. In the future, what is our product strategy? Would there be any change if there is? What kind of ratio for the change?
In other words, that is related to the land bank for the tier 1, 2, 3, 4 cities. Would there be a ratio in terms of the value, not the areas? Thank you. Not the GFA.
Good question from Mr. Wang. As an analyst or the people are focused on Greentown because of the value, the so-called the actions taken, and a lot of measures, we can see much better the risks. In terms of the control and management, it will also being verified in the future. You mentioned about on the managements, whether we have already confirmed or not, the list. From the management's constitution, we have the old to have the managements, and also with CCCG, Mr. Lee from CCCG. He is mainly responsible for the auditing and also on the finance. There is another colleague who is going to be our operation.
For the old Greentown management, with the product and sales and marketing, HR with our own, including Mr. Wu, CFO, is still there. The overall structure is about the same like that. What about the change? In the future, in the Greentown, governance will also influence. For example, on the investment, we have the board, we also have the investment committee, and also the further, more stringent on the investment committee. For the CCCG, other than the CFO, in terms of the future capital and also financial operation versus our internal auditing, because it is a SOE, that they will have also further regulations on the governance. Some of the management people are still under the progress and still being finalized.
But the adjustment of the management, it will inherit the excellent cultural gene, especially in Greentown, emphasize on the ability on the construction and also development, and also the expert, and also adding the financial control and also the capital finance from CCCG, plus the Wharf's addition, this is a very good structure. As Mr. Wang also mentioned on the other question, this is, of course, our last question. I believe that everything is contributed to Greentown, not because of any reports, analyze or exchange symposium like that, but we indeed will have to do what we promise for Greentown's what is the direction and where is the value of Greentown. I believe that we have to make it clear.
I believe that property sector in China, after two decades of development, from my impression, starting from the end of 2009 with the central government's assessment, it was five years for the control and adjustment. Until five years, the industry up till today in China, the central government has defined as a major industry, constituting part of the state economy. With an adjustment, we have so many changes. There must be a turning point. Originally, the industry is what we call a high profit industry. Now that it's becoming on an average industry for the national economy. I believe, especially from this year, after the national congress, it has been redefined. On 27th March , the authorities have jointly saying that we are now coming to, for those projects not being developed, you can also have a kind of a planning adjustment.
Then we have already have more than projects falling with the market, and the central government has started in this sector, a kind of very clear message on the message, not only on the limited purchase, but also limited construction. Number two, for the property market in China's positioning, we are still have to have it open. Now, people in China, to a certain period of time, will still have to have pursue for the high quality living standard. My wish is that there is no limit for that. I don't know how many of you are coming from China or you have to the villages. For the villages people, the first thing they have to do is after farming souls for many years, they still would like to build their own property. So traditionally, for the quality living pursue is no limit.
I don't know if you're studying so far on the property markets in China. As far as I know, in Chengdu, in the western cities, we have some new situations with a rigid demand. There will be also demand over supply. Then originally, we are starting to have the sales and people are still start queuing up at 5:00 A.M. just to buy a property. So this is a rigid demand. The urbanization, you know that the average is approximately 54.7% of the urbanization. But for the developed countries, we are still have a room of 30%-40% of the urbanization. In other words, Greentown in China's future is that now that we can settle from the original developer to fully pursue for the quality life as a kind of general construction and development to our ideal life.
I have to emphasize that in terms of the mainland property market, we are quite leading. The reason is because comprehensive living standard, other than our developing ability, Greentown is number one. Number two, we also have our famous group, and also we have also schooling and hospitals and also service. We are also number one. Number five, there was a gentleman asking about The Bluetown. With the six factors together, including our own Greentown soccer team, that has already become one of the only one having the ideal life or quality life, a comprehensive service provider. We are the only one. I do not know whether you understand, but in the future, in the property markets, it is becoming tougher and tougher for the competition. But a Greentown with a micro business, then we possess a lot of the abilities.
I believe that we have a large room for development. Going back to the Greentown business on the development. Lately, we are also studying on the products more on the land to construction, to sales and delivery. Each of the land is also having a product positioning with the profit that should be. Lately, we are also studying on the overall Greentown group and the future development strategy of China, including tier 3, 4 cities, on the investment strategies, borrowing structure, and also the profitability adjustment and structure. A very important question is also on the finance and also the products. This is what we are talking about and studying. Overall, the target is that to maintain quality product, and this is not to be changed. We have to increase our new products.
I believe that this is also, in terms of the Chinese property markets sectors, we do not have too many like Greentown. If you have to build it up, it takes even 5 - 10 years. Price-wise, it is easier for me to reduce the cost. For the value, other than your construction, we also have to talk about our liquidity and also our finance. My cost is totally can be reduced in terms of the value. With the comprehensive ideal life developer or comprehensive service provider in the soft demand on those residents living in the Greentown residence, whatever they need for all their daily lives, all the soft services are provided to upgrade the service quality. If people are concerned about the Greentown, we will also think about our customer base. At so many years, we have our own Greentown owners, close to 160,000.
Based on the minimum numbers, some of them are having CNY 500 billion assets. These are the elites, and this is the lowest. The next step is that for the change of the inland property market, we are also having a kind of changes with quality customers asset and resource, how they can turn into, on one hand, to become our residents and also our customers, and also be our investors through the fence. There will be a wide survey. These customers are owners are quite willing to do. Secondly, after the change of the sector, a turning point is that we have a large area of transparency with all the cost and profit to have them disclosed, so their cost and sales will all together be disclosed.
To have, at least we have thousands of units to be sold in one day, I can tell you what will be the land cost, what will be your construction cost, and what will be the taxes. I can tell you everything. With all this, I believe that the next step is having a lot of transparency after the change, only Greentown, because of the product and the service quality, that in the future, it is not simply a kind of price war, but also on a new value. The core is, of course, the profits competition. I believe that Greentown is possessed of the most powerful competition. One of you mentioned earlier about the Greentown goes the same. Why we have the Greentown Construction, because we still have to maintain our scale and development size without having more liabilities to further maintain our profitability.
The next step is going to be the same. On the construction, the core competitive is also a construction development, not because of our investment. The investment is offering to CCCG. This is quite minimal. I do not know, what about the private enterprises in mainland China? In terms of the investment, this is not our core competence of Greentown. We are good in development and also on the construction, so we have to utilize to the maximum. For CCCG, The Wharf, it will not hinder our investment, but it takes us to reinforce. I believe that in order to clearly explain, for Greentown, I believe I am likely to become much better and clearer, definitely will in the short term to give you a good expectation in short term. The other one is on the investment ratio and also on the land bank.
On the investment ratio and the land bank, starting from the structure, we have really settled down. Starting from this year, Greentown's investment structure is mainly on tier 1 cities and also major cities. This is a master strategy. In terms of ratio, Greentown started with Zhejiang. What is most special in Greentown is that on the tier 1, 2 cities or tier 3, 4 cities in China, this is not exactly the definition. For example, in Zhejiang, in the local city in Zhejiang province, it has a very good market with high selling price. If you have to define as a tier 3, 4 cities, naturally, the sales is quite powerful. If you refer to tier 3, 4 cities, theoretically, it has the ability of a tier 1 city.
One thing is that when coming to the tier 3, 4 cities, we have the customers, we have the brand, and it is a shame not to have it redefined. Now it is quite clear that, which is referring to harvesting the wheat. With products in Greentown, it takes time to have another round of offerings. In the investment in the future, there must be tier 1 cities, for example, in Nanjing or Hangzhou or Hefei or Fuzhou and Xiamen. These are the major cities. From the last five years, they are having a very stable sales and price. This is also a major investment strategy was decided. Ratio is the same. If you have a neat ratio, definitely we will try as far as possible from tier 3 cities to have them change to tier 1, 2 and major cities.
So maybe because of the time today, after the other additional comments, hopefully, the ones who are really concerned about the future of Greentown, I welcome you to visit Hangzhou and we can have in-depth exchange, or we may see each other in Hong Kong. Personally, I prefer to explain the details of the questions, whether the real situation of Greentown, I prefer to have detailed discussions rather than very simple answers. Greentown, I believe that when following Greentown, we have our own special features. I also frankly tell you that in the press meeting this afternoon, people say, "What about Mr. Song in the future?" I also explained to them, I can also tell you after that, for those of you who will stay behind, I really care about Greentown. I understand about, yeah, your third question. Mr. Song is a founder of Greentown.
He defined me as his number one employee. Undoubtedly, Mr. Song in relationship with Greentown. Number two, I believe that Mr. Song is the major component of the value and branding of Greentown. Mr. Song has been always in the last 21 years, contribution to the property market in China, showing that his influence in China, regardless of Wharf or regardless of CCCG, Mr. Song is still trying to utilize his power. Mr. Song in the property market in China, including his material building culture and also on the building, and also the so many expertise, more or less, on his planning and design. He is a talent. Used to be that people are joking that, "Mr.
Song, after you retire, we are going to hire you as a project, and we are going to pay you so much money." After having discussion, Mr. Song is willing to check for him. He will bring to you at least CNY 500 million -CNY 1 trillion's worth. Greentown as a company has its own powerful characteristics. I also admit that a few years ago, especially last year, that with the incidents causing the investors some influence or even change of the equity price. But the positive way is on the value, and I believe that starting from today, this will be a very stable company, and it is going to be a very, very good prospect in the future. I expect that there will be a lot of value contributed to investors in the return, especially that he has been already an investor for Greentown for many years.
That should be a good explanation to you, including any other we feel that we are obliged to explain to you. Whether CCCG or Wharf, it is already becoming a very, very stable period, and also to drive Greentown to be a much better future. Thank you.