Ladies and gentlemen, good afternoon. Thank you for your attendance to the 2017 interim results announcement of Greentown China Holdings. First of all, let me introduce you to the management, who are Mr. Cao Zhounan, Executive Director and Chief Executive Officer of Greentown. Mr. Li Qing'an, Executive Director of Greentown. Mr. Li Yongqian, Executive Director in Greentown China. Together with Mr. Simon Fung, Chief Financial Officer. In this presentation, the management will brief you on the first half of 2017, together with the outlook. The management will also brief you on the Q&A. Mr. Li Yongqian will brief us on the business performance.
Good afternoon, friends. Greentown China, up till the end of June 2017, including its subsidiaries with the accumulated, together with 3.6 million square meters, with the contract of CNY 56 billion.
Comparing to the year-on-year, together with the same period on the investment projects, we have accumulated the agreements, but not been transferred, we have approximately 2.05 million. Starting from the first half of this year, on the total sales on the investment project, 2.05 million square meters. On the project under project management, 1.41 million square meters. Altogether, 3.46 million square meters. For the first half of the contract sales, the investment project was approximately 74%, together with CNY 44.2 billion. On the under project management, 26%, altogether CNY 15.3 billion . In terms of the sales for the first half of the year, the group has also 107 investment projects for sale. Altogether, the average price is approximately CNY 21,541 /sq m , comparing to CNY 19,281. We are still having a growth, leading average in China. Of the investment projects, the distribution is basically identical in Zhejiang area.
Other than Hangzhou, the ratio is 34.4%. Hangzhou is 20.6%. On the Bohai Rim area, 27.3%. On the Yangtze River Delta, 6.2%. On the other cities, it is 11.5%. For the first half of the year, the overall sell-through rate was 49%, with the new sell-through, 79%. For example, in Hangzhou, in the Osmanthus Grace and Ningbo Young City, they were sold immediately after the release, and it was a very good contribution rate. Especially in the building on top of the MTR, representatives like the Ningbo Young City, Hangzhou Hope Town, they were sold in two hours after release. It is also in Hangzhou Hope Town, which was 336 units. It was in 2,500 over subscribers. The second one is on the investment strategies. For the first half of the year, we are focused on the 15 core cities and to optimize the land reserve structure.
In South China and Southwest China, with Zhejiang and Jiangsu province, realizing also in the strategic layout. At the same time, we will also layout in the three major city groups in the Pearl River, Chengdu, and also with the other tier three, four cities. Having the short-term projects with the projects layout. We are not going to accumulate more assets. With the newly added land bank, it is altogether 12 projects. Altogether, 1.07 million square meters. Total GFA, 2.95 million square meters. Attributable at GFA, 1.67 million square meters. Total land premium, CNY 24.5 billion . Greentown is to be involved in CNY 16.1 billion . The average land cost per GFA is CNY 11,979/ sq m . It is estimated for the newly added sellable amount, approximately CNY 58.9 billion .
For the land bank structure, it is also greatly improved for the first half of the year. Greentown has a total of 92 projects, including under development and pending development, with a total GFA, 30.57 million square meters, of which 17.96 million square meters were attributable to the group. The total sellable area 22.15 million square meters, of which 10.26 million was attributable to the group for the tier one, tier two cities land bank. Comparing to the others, it is already 47% with 4% growth. Number three is also on the development scale. Up to the end of June, altogether, we are talking about under construction of all together, the newly project will be 3,409 sq m . In the projects in order, altogether GFA at 34 million square meters.
The group is definitely dispose on the Xinjiang Blue Town and also other projects remain under developed for a long time. Having the Beijing project to accelerate the withdrawal of the funds to optimize our land reserve structure and increase the total land reserve. The groups also turnover rate continues to increase with five months to four months constructions. The interval between land acquisition and the release of units to market has shortened from nine months to eight. Now, the government structure of the group in the first half of the year, we have the accommodate to the development. We have also downsizing and streamline from the number one integrated service provider for the Greentown Ideal Life group. For the real estate management together with the town development, the Greentown China's platform on the professional development platform, whereas the asset management is our financialization.
The newly added, the Ideal Life platform, is the service platform building. Of the five regions, they are synchronized development of the subgroups. The Greentown Real Estate focus on the project development with a leading position with more than 20 years of development. The sales has been growing consistently, and it's also guaranteed for its profits. In March 27, Greentown Real Estate invested in a quality commercial residential project in Jakarta, Indonesia, having the first step of our overseas markets. On the Greentown Town Development, it is focused on the construction of unique town caring for needs of different industries. It is already formed the other different current of project, including tourism and also floral development. The Greentown Management is also on our brand management together with resources, the largest and most professional project management company in China, and trusted by the government and also the SOEs.
Now, we have already taken also 165 altogether projects with GFA of 49.65 million square meters, estimated sales of CNY 280.1 billion . For our corporate governance, the asset management is also under three core business with financial investment management, industry development, and investment management of holding assets. Through our disposal of inventory stock assets to have the real estate funds. The Greentown Ideal Life is to actively respond to the ever-changing situation, to have the 4S service business models with commercial operations as our main business segments, to provide quality living services for Greentown homeowners, the public, covering the complete chain of customers' lives and the full life cycle of housing products. To explore new products, new services, and new economy, and extend from creating beautiful cities to creating beautiful lives, to help Greentown China in our strategic transformations.
Ever since this platform is formed, we are very good development in this Ideal Life platform in our own projects. It is really fully covered by utilizing the online, offline rental to offering the society quality maintenance, rejuvenation, and value-added housing services. Customers can also place orders online, enjoying our fast, professional, quality, and safe services. Last but not least, Greentown China is still, for the last three consecutive years, honored for the top 10 Chinese real estate enterprises by the comprehensive service with the top 10 real estate and also the 10 largest Chinese real estate enterprises. Greentown, we are still being observed as also the blue-chip enterprises. The project management is also named as a leading real estate project management enterprises 2017 by the Development Research Center of the State Council.
Accredited as the China Real Estate Business Model Annual Award 2017 by Guandian. Greentown Asset Management is also awarded the title of the Best Hotel Owners of China 2017 by the China Hotel Starlight Awards. These were the business review for the first half of the year. Thank you very much.
Now, I will brief you on the financial highlights for the first half of this year. First of all, the revenue was 7.9% up with CNY 10.449 billion, with a gross 17.4% of CNY 2.8 billion. Altogether, gross profit margin was 27.5%, comparing to 25.3%, was also a slight growth. For the margin from property sale, we talk about 26.4% from 22.7%. For the share of result on the joint venture associates, was a little bit down. Last year, it was 49% down, mainly because of the joint ventures.
The sales leading time was mainly on the second half of this year. Again, on our disposal of our subsidiaries, CNY 1.6 billion, which were the hotels sold. If we have to have our own in-house operation, it is not going to be maximized for our profit margins. Together with also, altogether, almost like CNY 3.7 billion on the administration expenses and selling expenses, we have also very prudent control, was also down. In a while, I will show you on the PowerPoints and some of the detail analysis. At the same time, we are also looking at our own projects, having some kind of provisions and reversals. So we're talking about CNY 64 million provision for the first half of the year. For the net profit, CNY 1.2 billion, a growth 56.2%. The net profit margin versus 8.4%, 12.2% was improved. Profit attributable to shareholders, CNY 604 million from CNY 1.2 billion, 103.5%.
For the core profit attributable owners, deducting all of the accounting profits, CNY 1.088 billion with 43% up year-on-year. Basic EPS, CNY 0.46, with of course 130% growth. As you can see this year, we have a very special profit coming from the selling of our assets. During our last media meeting, there were a little bit understanding of CNY 1.0 billion, would there be any kind of losses? This is not a loss because of the CNY 1.6 billion. There was a pre-tax. CNY 1.2 billion was after tax. Altogether, you can see from this balance sheet, we're talking about CNY 2.6 billion. CNY 1.6 billion was also for the selling of the net. We still have CNY 1 billion after tax with deducting all of the costs. However, original, we have already paid CNY 1.3 billion tax.
For the profit, we have only CNY 1.2 billion left for the net profit after tax. On page 20, you can see that after the Regardless of the net profit attributed to owners and profit margin and basic earnings, we are still having an up rising trend. On slide 21, as you can see from our net borrowings and also net gearing ratio, it has been tightly controlled. On the balance and also together with comparing to 2015, we are talking about 78%. In 2017, it was 57.9% at the end of June. On the weighted average interest cost from 7.5% down to 5.6% in the first half of this year. Relatively for the bank deposit, together with also the total assets ratio, we have 8% growth from 8% to 18%.
On our books, the cash available, as you can see that in our financial statement, we talk about CNY 30 billion. In reality, with our joint venture together, this is a general management. We talk about the CNY 58 billion cash. On slide 22 of the administrative expenses. As you can see from the administrative costs, we have the HR cost going up, mainly because, as I said, that with the five platforms, Ideal Life, Asset Management, together, we have also introduced the relevant talents and professionals. That is why there is higher salary causing the HR costs. Having the overall staff and employments, we did not increase too much of the headcounts. But for daily operation expenses, it was also greatly reduced, down 13.5%. For the other expenses, it was also approximately 17.1% for the others. This is our cost control.
A lot of endeavor, including on the budgeting and also on the control. On the selling expenses, similarly, it was also effectively controlled on the HR, including on the bonuses and also incentives for the talents. That is why they have also increased with their incentive. But for the cost and marketing and other expenses, it was effectively controlled. For the interest expenses, as you know, the overall interest expenses, there are two parts. One is on the balance sheet, the other part is also on sales and marketing on the capitalization. It will be pointing into our balance sheet this year on the capitalization percentage going down from 66.5% to 60%. Coming into the CNY 736 million, up from CNY 565 million, but for the capitalized interest, we are talking about 5.6%.
Even if last year for the whole year was down from 5.9%, for the first half of this year, the overall interest from home and abroad, we are still effectively trying to reduce our interest expenses. I will also review on the finance activities. These were quite ideal operations. On slide 25, revenue and cost structure. This is also on our gross margin. On the property, gross margin was still going up because of the Bohai Rim project, quite a high-end boutique type. Naturally, overall the gross margin, because some of them are product mix, some of them are the T3, T4 city projects. They have very low profit margin. Two or three of them are also suffering some loss, and that is why it drags down on the total gross margin. Slide 26. Financial positions.
You can see that the total liabilities, we are talking about CNY 18 billion total borrowings. In two years, we have the senior notes together with 47.1% all together. This is on the long term. For the one year, it is only 29.9%. For the cash, we are talking about 36 billion. The net gearing ratio of 57.9%. Whereas the net borrowings, 23 billion. All together we have the 57.9% net gearing ratio. On the offshore, we are talking about CNY 18.023 billion borrowings, because a while ago, we have the RMB depreciation risk. For the offshore borrowing, it was only to pay off on the older debts from the new ones. All together with the financial credits, it was CNY 170 billion. All together, we have only utilized CNY 120 billion. With the guidance of our chairman, with the interbank credits, it was greatly introduced.
With the various banks, they are more than happy to treat as strategic partners, offering us the necessary credit finance. Speaking about the medium-term note of CNY 8.9 billion with four stages. We are the first one for the property cooperation with the medium-term note, supported by our rating, which was AAA CCXI. CCCG was also because of this kind of SOE background. Most important is, of course, on the market recognition with a short time, with CNY 8.9 billion to be issued in a very short time. Slide 28 is referring to perpetual securities in Hong Kong to be issued. As you understand that it takes the approval from the government, mainly whether it is a private enterprise or SOE to be approved to issue the offshore debts, and we were one of the eight this year.
We are the first one to issue successfully the securities, all together, $450 million. Interest rate 5.25%, a historical low in the overseas perpetual securities. Not to count in the bank finance. It was well welcomed by the investors at that time, with an oversubscription 14 x. Naturally, we wish that it would be also being subscribed by the investment. We did not getting the interest rate down with a 14 x subscription. So it is a reasonable profit, putting on this level. Other than that, we also have considered other innovative investment, for example, on the ABS. In March the 29th, we have also having the approval from the government. In July, we have also successfully with CNY 1.6 billion on the ABS with a three years term, which was the lowest price in the ABS.
We hacve also issued the hotel as a CMBS, which was also in August this year. Being with Hangzhou and also in our hotels in Qingdao, Licang as the first batch of the innovative way to try out the securitization of those assets. This is the end of my part, and the next part is going to be briefed by Mr. Li on the outlook.
Good afternoon, investors. Let me brief you on the outlook and on the strategy. Starting from 2015, we have also confirmed on the strategic development with the three professional thing. One is on the development, secondly, also securitization, and then service platforms. From these two and a half years, the result was quite favorable. We have to maintain the strategy, and also it is showing gradually on the bonus of the strategies.
One is also on the property development, mainly on our targets, improve also our strength, then on the new town. On the new town, it will be what we call the town development, with urbanization of China as a kind of leading, and also the acquisition of the characteristics of the towns to explore those town developments on the special development. Number three is on the project management. We will also further expand the business scale of the project management. One is also on the government and also capital project management. Especially in the first half of this year, we have also done some trials and pilot to make sure that we will keep on the project management as the number one position in the industry to promote further on the asset-light model in this development.
On the real estate financialization, is mainly on the asset management, will further unleash the liquidity of assets and optimize the asset structure. Through the integration and repurchase with upstream and downstreams to expand diverse financial channels and building the group as a unique and real estate capitalization. Whereas for the service platform, this is mainly on the Ideal Life platform, on the comprehensive demands of the customer's livelihood, and the full life cycle of the house products. Offering also this kind of services at the same time through this kind of a big data and also on the internet technology to integrate online, offline resources to build also our core competitiveness of Greentown China. Second part is on the investment, and we will continue our strategic position from the investment strategy. We also have two. One is the core cities and core areas.
At the same time, in terms of the three urban agglomeration of the Yangtze River, Pearl River, and also the Beijing-Tianjin of the four metropolitan areas. In terms of our policy, we are more focused on the new entry in strategic and key cities. Also on the service projects. That is number one. Offer, for example, Olympic Park and also on the Asian Games sporting. Secondly, on the branding of some of the major cities. Number three, on the innovative projects such as the MTR buildings. This year we have also the Hangzhou Young City and also the Ningbo Young Town, having very good market response. Number four, we also focus on some of the high- margin, high- liquidity, and short-term project, and this will be our future-focused direction. In terms of the investment style, other than the offer assessment on some of the project by reasonable pricing.
Other than that, we will also expand our investment style, for example, on the revitalization of the old towns, also on the track transportations, and also M&As together with the property asset- related joint ventures. In terms of the investment side, we will be more focused on some of the national policy SOEs, some of the National Games Village, and also Asian Games Village and Olympic Games Village. So we have also obtained also the 2020 games project. In 20:00 P.M., last night, it was the Tianjin's National Games opening ceremony. Some of you have also watched this opening ceremony on the Tianjin Sports, and this is the third year Greentown has also been involved in this. Other than our main, we are also doing some kind of purchase. The purpose of which is to have enriching our comprehensive service provider.
The other one is on the overseas event for the first half of this year, is already realized of our overseas, the first project in Jakarta, Indonesia. It will be fully developed with very good social and beneficials. We focus also in North America, Australia, and Southeast Asia, with some mature and developed areas to have a very stable investment. That is second part on the investment. Thirdly, on the financial control in terms of the financing, we further strengthen our cooperation with major banks. To further expand our financing channels, and to have some innovative financial models. Number two, in the budget management, we also gradually establish a sound budget analysis and early warning mechanism. In terms of the capital coordination, it will be our comprehensive budget management to further reinforce our overseas management of funds via the fund settlement center.
In terms of the tax planning for the first half of this year, also reinforce on the daily management for new and old projects, and continue to promote the tax clearing of the late projects to reduce further our taxation costs. You can see from the first of the year, this has also a very good result for the taxation issues in the future, including also on the taxation for the late projects. This is going to be a very important work for us in the future. In terms of the information, we also continue to build a stable and efficient financial information system to have the integration between the financial system and our business systems. On the product or the quality management on the service development, in terms of the product quality, we will further to have the quality control work.
At the same time, it is going through on the overall quality management to have the existing projects. In terms of the service quality, it is committed on the big data. It is for the big data construction to build the first one in China, the CIS Online, the 4S service in Greentown, together with also on the other peers, to build the CIS Online for the property. It is going to be our Greentown Ideal Life major performance. The purpose of which is to upgrade offering to the customers' higher service quality. In terms of the management, we will also continue what we call the four comprehensive management of talent, quality, service, and budget. Through these four budgeting to further upgrade the management quality.
In terms of the risk management on the macro economy of the market, we've been more focused or reinforced on the risk management together with also our capacity on the risk management to have a kind of systematic control starting from the two. One is also from the group, is to build up the systematic management on the operation together with also on the other risk management as well. The purpose is to have a comprehensive upgrade of the group and also project risk management level. On the second half of this year, on the sellable resources up till yesterday, Greentown has realized CNY 547.1 billion of total sellable resources. Altogether, it was quite a good result for the second half of the year. We should have ample resources to be launching into the market.
Altogether, the sellable area GFA investment, together with also, we are talking about 5.21 million square meters with the sellable amount, CNY 101 billion. The two figures do not include the newly projects. From these two figures, it reflects for the second half of the year, we have ample inventory to complete more than our expected objectives. This is the end of my presentation. Thank you very much.
Thank you. The presentation of the management. The time is now for the Q&A. If you have any question, please raise your hand, and please identify yourself, your name, and also your organization before your question. Hopefully, please maintain within two questions for each of the investors. The time is now open for the floor.
I come from Taikang Asset. I am also a shareholder of Greentown. My name is Tang Jie. Actually, two questions.
One is on the old projects, such as on the tier three, four projects. What is our sales, and what about the big projects in tier three, four cities like Dongying and the Xinjiang projects? What about your positions? For 2017, within the gross margin, the so-called acquisition, and also would there be also adjustment? Do you mean that from the joint venture or the third-party acquisition, do you also include this kind of adjustment? I am not so very clear. Please explain in details for these in terms of the old projects. Number two is on the new projects. For those new projects, for example, we are coming into the outside China, Guangzhou and Foshan. For the new locations with the fixed costs, what is the influence to our expenditures? For example, in Guangzhou and Foshan, including Chongqing.
What about the sales, and what about, for example, in Chongqing? How do you position the project in Chongqing? Can you give us a little bit more guidance? Thank you.
Thank you for your confidence, Mr. Tang, for Greentown. For your investment, I think it is correct. Greentown China, before I talk, let me define what I understand more on Greentown. Up to today, we have already become one of the best mainland property market corporations in China. We are mainly focused in China, mainland China. We know very clearly, almost like every day, all over the China. So I understand there are always some, what we call the terminal risks. Before answering the question, let me tell you a little bit some of the fundamentals in the mainland China property market. Number one, as I said earlier that last year, we also have the same location and the same value.
I was too bad at that time because we are talking about getting more land banks reserve. They were saying that even what I said, the flour was even more expensive than bread. I am saying that it went crazy. It is going to be bubbled. At that time, one year ago, many of the investors and the media people listening to that, we still have a long debate on that. Unfortunately, I was right. Starting from April last year, up to the end of September, for all those land procured in China, because it started on the 1st of October for the central controlled, and I believe we are not saying this is an adjustment control. It is actually the Mainland China's fundamental transformation.
I believe anyone who really paying a lot attention on the policies in China, you are so clear, and you do agree with what I was saying. In Greentown for the two and a half years, I was so proud that for all of the policies in mainland China, generally, we can even forecast in six months in events why Greentown has really become one of the best companies in China because up to today, I do sorry that with the land banks reserve, there's so many comments. These are quite objective, but many of these projects, in particularly starting from 2015, each of the projects were personally, I was personally involved. I have fully implemented. I was not being affected by this kind of transformation in China.
Number two is that Mainland China property market, starting from the commercial approach today, for the high price, low price, and for the high property markets, has already gone. I mentioned at that time that not only that you are keeping the high cost flour to make even a higher bakery bread. There is no such a kind of a profit margin in the world. The time has already gone. I have a conclusion that in my strategy, in the future two, three years on the land bank, is not going to exceed, in two years' time, 10%, for example, what we call the high-low price because of the high property market, because the land is still appreciate anyway. I am so concerned there for our colleagues. Starting from April to September last year, how are they going to deal with this kind of a high-cost land?
People now learned a lesson. For the major cities, not only on the limited purchase, limited sale, limited borrowings. All of them will have to be approved by the local government or even from the statistic and also from the pricing department, and then it will be all to get approved by the local government. People are very concerned lately for some of the major cities in China. They are still very active in the trading because even if we talk about 30,000/ sq m , but then the reported price was only 20,000/ sq m . The customers are quite smart. This is the last chance. This is the end of the tail on the crazy trading coming before the policy is effective.
With an approach like that, in my strategy, in order to have my land bank to satisfy our own CNY 100 billion for my sales of two years' reserve, it is not more than one day for this reserve. Personally, I believe that the most difficult time is going to be the next two, three years. The other reason is that last year in China, we talk about 1.1 billion square meters in China. I said, this year, most likely, it will be gradually up to 1.9 billion square meters . Now for the tier three, four cities, there will be some kind of effect because once you are unable to get from the tier one, two cities, you get a very sky rocketed price for the tier three, four cities for the land price.
Even for a small town in tier three, four cities, we have only a limited population of maybe a few hundred thousand people. I can forecast in tier three, four cities in the near future, it is going to be collapsed for the property. It is unable to have this kind of more than 10,000 people by square meter. It is unable to support with the basic demography, demographic locations, and they have the limited purchase power in some of the towns and urban areas. I do not know how they are going to survive in that. I can never understand. But now that the new policy mentioned about, for example, two days ago, in the newly added of 30% as a kind of guaranteed or social housing.
The major cities of all the lands, because of the commercial products and commercial residential, 35% will be used as what we call the social housing. Or some of them are used totally for the social. The average in the new large land areas, 40%-50% will be used as social housings, and 50% or 60% will be used for the general commercial buildings. We are talking about a huge number, and then it is going to cut 50%. That brings out two questions. What is left? We will still have the limited price, limited purchase, limited borrowing, limited mortgages. The market will be almost like 50% to be used as what we call the rental apartments. With huge land banks like that, and with the policy, they will definitely be controlled or even going down with the property price.
What do you do with your land bank? Let us say in my land bank reserve, we talk about CNY 1 trillion for the sellable. We talk about out of my CNY 1 trillion, I have only approximately CNY 100 billion left. This is not surprising at all. That is the current overall property market in China. I can dare say that Greentown China, within the property market, one of the outstanding and excellent. I am not saying that I can make a good forecast. I can sit here every year. So many of the old friends today, I am still working continuously and sustainably. Not saying that I can tell from the crystal ball, but I can be very prudent and cautiously, naturally. But what is left is, for example, like Mr. Li said, I am not going to be assessed.
I am not going to sell the flour more expensive than the bread. I can tell that each of the major cities are having the lands selling collectively. The next round is that, depending on your strategy and each of the municipal government, the central government will have to control and a lot of capital needed for the local governments because of the price is getting higher and higher, as far as I know, in Hangzhou. Property market in Mainland China is coming now to the stage. The question you mentioned earlier on the Greentown's, Mr. Tang, you mentioned on the tier three, four projects, we have already sold out. We are still under construction development, and so it is clear. We, at that time, having our, t here is another company in Zhejiang with CNY 12,000/ sq m , and it is very high margin at that time.
With the tier tier, four cities, we were almost, for the last two years, when the statement, I do apologize, it was not in details. We talked about only on the total land areas. Actually, in Greentown, we have also two investments. One is also from Mr. Li, the Greentown Investment group, and the other one is Greentown Town. Maybe you did not clear, I put tier three, four projects under the Greentown Town development. Why we did not do a very good job is that, because in terms of the total area, this is not significant. But for the tier two, three cities, is really more than 80%. For the Greentown Town of the overall sellable ratio, we are talking about really 65%. But 35% in tier three, four cities. In 2015, it so happened that it was 60% two years ago.
Through the two and a half years restructure and adjustment in the tier one, two, three cities, it is really 65% and only about 35% in tier three, four. Unfortunately, those old cities in tier three, four, it is already more than CNY 60 billion. For the inventory of tier three, four cities, this is not my concern. Maybe you didn't realize that within the last two cities, we have very few projects in those cities in tier three, four. In Jiaxing, for example, and originally, the gross margin was quite high, but then because of the limited price and also limited mortgage. There was the low profit because of the government policy. The other one was on the gross margin. I noticed that you realize that because every year I have to tell the investors that some of you are quite familiar with me.
As a public listed company, you have to prudently follow on your information to be publicly disclosed. As the chairman, I have to be insisting on that. The question is that for the first half of this year, on our financial statement, most of them are already from the last five years. I have to urge every one of you. I dare say that why we are one of the best property developer in China, because you have to make sure that all of these projects were actually starting from the second half of 2015. The core development should be in 2019 to be realized. But I cannot tell you the numbers because we do have our very clear financial analysis here.
In gross profit, which is also one of them, we are also working toward the CCCG, and there was one is called the Sunan project, and in the Suzhou, we have also transferred those projects to them for this joint venture partner. We have also think some of the project, but at that time, the Huangpu Bay has also relatively project. That is why we have an adjustment of this gross profit. But for operation venue and project was quite satisfied. On the new projects then, new investment. Probably you didn't understand from Mr. Li, because for those new project, these are the five major ones. One is innovative. For example, on the Ningbo Young Town, we are talking about 40% gross margin a few years ago. In about less than two hours, it was totally sold for the launch in Hangzhou.
Everyone is trying to get for me some properties, because I was also, at that time, I just turn off my cell phone because everyone is asking a favor from me. It is high profit margin, more than 40%. Of these innovative projects, it will be appropriate for Greentown. For example, my consideration, at least the MTR or the subway development project. We have the best job in Greentown, and we are dedicated in some of the major cities for those subway development projects. The other one is also on the major project, for example, on the sporting, on the Olympic Village. This is not point- to- point, but as a kind of a city, as a kind of platform for Xi'an. We will also put five to six projects, not only but a kind of a cluster development.
Naturally, the third is also on the branded projects, for example, in Beijing, on the Xishan Mansion or the Huangpu. Beijing or Chao Ming projects or Nuan or in Guangzhou or in the Foshan projects. Most of these are in the major cities because of the brand development. Of the overseas, the overall strategy for the overseas project, I am not saying that whether it is appropriate, at least about in the next two, three years. The Mainland China is already coming into almost like a saturated and also more competitive market. I believe that for the overseas, if there will be some good cities, we will be very cautiously to entry, for example, North America, Australia, Western Europe, and Southeast Asia. If they will be very good, for example, the weather condition, investment environment, and also the laws.
Having a full analysis, you have to go investment in the overseas market always after being evaluated. Then we will be very cautiously to have a selective entry in those markets. Whatever the case, China is already becoming administrative market, so we still have some products to be offered in Mainland China anyway. But facing this market, I believe that Greentown, as I said earlier, that even if it is really reflected in our financial statement. For example, almost like CNY 60 billion cash, I can just pay off some of my short-term debts. I cannot say randomly what I try to express in future. On some of the core areas, for example , I do not have any kind of pressure in investment. I will try to have it on the light asset operation. For example, we are also classify what we call the technical development.
What I mean by that? In the future, the Mainland China market, very much like North America, it will be more inventory. For example, in 2018, we are talking about 60,000 units, and also even 30 sq m or 40 sq m , we are talking about the average living area per square meter of each person. Facing on this kind of market and inventory, Greentown CS, with the four area, one is to maintain and service. Property selling to those cities, we talk about 10 years or even up to 20s. Even up to four years, we still have a lot of problems on maintenance and services. These are very, very bad quality, even for the rental market. On the leasing market. So who is going to do this service for the leasing market? In terms of the Alibaba, the people are continued, but they have really stopped for the lease market.
But who is going to do the construction if these small developers are engaged with quality land, with quality buildings, with the tenants? This is a big waste. This is why Greentown, we are seriously studying for the lease market, rental market, but if I have to do it, I have to start with the light asset from this investment. People know that unless it is about 2% of the investment. Then we talk about 5.6%, and then you are unable to cover. So it is very hard for you to invest, but for the light asset, it is quite favorable. This is also what we call the CS business. Two, of the maintenance and also on the guarantee, or the other one is also what we call the first and second decoration, second, rejuvenization of the buildings. Number four, on the secondary development.
Please make sure that if a developer, what is the core competitive of company? Personally, I believe that at this stage, in Mainland China developer, this is really, really a major turning point. Originally, there were many on the capital resources, whoever is rich with money and a lot of lands, because with the lands reserve to be more profitable. I have to say that you can study, up to today, any project is based on this appreciation on development rather than the land bonus. With so many projects in China, is there anyone that you can take a few of them? I do not think I can find anyone. For the development, what is the operation is to appreciate on your land bonus? Taking away the land bonus, a developer project, who is interested to invest in Hangzhou or in Hong Kong? We can always share the idea with you.
Which are the developers is to appreciate the values on developing. They are all based on the land appreciation. So originally, it was based on their capital and resources to get the land. The more land is better because the land will appreciate at the end of the day. But this is already been cut, I have to say that. Originally, from the capital resources to transform into the brand and professionals and capacity. In order to do it in future, you have to rely on brand and your talents and your capacity. Naturally, if you do not have the capital and resources, this is unable to do it, but capital resources ratio is getting lower and lower. So maybe you understand that this piece of cake has already half of which are going to the leasing rental.
Even for the 50%, for the larger corporation, if you have to work half of your market in the land, it is a very, very bloodshed battle. Not to say that limited purchase, limited mortgage from the government. With a kind of a scale like that, 50% of those major land has already been cut. It is a very bad thing. So the Greentown in the future, definitely we have to do quality and sizable light asset development. As I said, I still keep on saying that for last two, three years, taking away on the property growth, the larger you go, the worse you are facing. So long as you have a quality growth, your size is to be valuable. Having no quality growth, but depending on the size, you are definitely going into the bankruptcy. So unfortunately, I am right. I said year by year like that.
Mr. Tang, I really appreciate that as an outstanding investor of Greentown, but once you mention a question, this is an emotional answer. I do apologize for that.
Thank you, Mr. Tang. Because of the time, we invite the last question.
I do not have a very good favorite question. As I said on the investment, you have, as generally, it would be 30% of your rental property. There has to be a reasonable percentage of 35%. Out of the 35%, you have to go back to the investment and development, and the rental return is approximately 2%. For the land, you have the land cost, and then you have to sell it. After you amortize, then you cannot do it. I am sorry, you are unable to take this.
With this kind of a system, generally, maybe it is incorrect, but in the future, with a lot of the rental with 35%, it will be get from the land. What is left over with, even for our SOEs, for the other shareholders, they are not investing. For a piece of land, for example, it is all being done by the in-house company. What I am concerned is that, what is your quality? With a premium location for rental, for the quality service, you also have to be put in. Even for, I am talking about with Greentown coming, I can have the piece of land, but what I request as this Greentown, with the banks together with the government to have a joint operation. I will do the construction, but after delivery, you have to have the financial institutions.
Now that the central government mentioned about the change of the operation mode and also securitization, it is only about 2%. Now that it is unable to cover the financial cost, it is going to be very sizable in the future. This is also a strategic reform for the government. If it is only from the investment to get your land and to get hold of it, not only Greentown China, but for the other developers, most likely, they will be also more careful. Originally, there will be also some commercial lands or industrial lands. This can be also offer some opportunities. That is why we also offer some kind of rental apartments. My question is that you also mentioned Greentown in some of the overseas projects, such as in Jakarta, Indonesia. Can you briefly introduce the Jakarta project?
I understand for Jakarta, the local developers are also not so favorable. What kind of consideration that you have to go into the Indonesian market? Thank you.
Maybe Mr. Li can answer. Let me answer your second question. The project is not to be directly chosen by us. It was also on the China Communications Construction, because they have a subsidiary, because they have very many projects in Jakarta, and the government has also offered them a piece of land. As far as I know that Mr. Li is now the CEO of the international. It is a very good sale and high profit margin. Can you tell us about that?
The project background has already been mentioned by Mr. Cao, but in Southeast Asia, especially in those kind of projects, CCCC has its larger project lately.
A news report saying that Malaysia has also run project on CCCG, it was ever since the China capital as the largest project in Malaysia, which is of the high-speed rail. There will be other investment project carried on by this government. China Harbour, one of their subsidiaries in Indonesia, they have done a lot of the projects in Indonesia. The local government has also given a very good excellent project. Altogether, we are talking about 800,000 sq m in the western part of Jakarta, which is next to the town center. From the overall Jakarta city, we have a very good population, what we call the 30 million population on the Metro Jakarta. The quality level is approximately at the quality of in the 1970s and the 1980s in China.
The living conditions are quite poor. Privatization of the land is also not so favorable in the future. In the long term, the urban development is a very hard task, there is also great demand of the local residents altogether. We have also thought about the relationship to get this project. For CCCG, it is hopefully that Greentown is going to be the operator for this project. We have participated throughout, but for the shareholder ratio, it is not so big. It is going to be operated by Greentown. From the result, it is quite favorable, especially for the first stage sales. I was there on the almost like 81% sold for the first stage. Of course, it is quite different in that of China, they can also have the presale in Indonesia. I have made some rough calculation.
It was a very good sale, but the next step is to have our service from Greentown. Property management, including the relevant resources to be injected into this project. In the future, it is going to be a very good project in the future. Through this project, we can also open the door to Southeast Asia. From the overall Southeast Asia, CCCG has a lot of investment. They have good relation with the local government. In future, we have to rely on a partner with the Southeast Asia investment. We will further expand the regional force. It is believed that in Southeast Asia, we are going to have very good result in the project in Southeast Asia. I do not know if I have answered your question or not. It is actually apartments.
The project is defined as approximately 300-500 sq ft or 30-40 sq m apartments. We talk about CNY 300,000 - CNY 500,000 per unit. The price is still low, but in the cost control, including on the land cost, is so low that it is a very good profit for this project.
Thank you for the management, this is the end of the question and answer, together with also on our meeting. Thank you again for your attendance. Thank you very much.