Ladies and gentlemen, good afternoon, and thank you for the attendance of the Greentown 2016 interim results announcement for the analysts. First of all, allow me to introduce you the management. They are Greentown Executive Director, Cao Zhounan. Executive Director, and also Executive Director, Ni Qing'an for the Greentown Asset Management. Executive Director and Executive Vice President, Li Yongqian. Greentown China CFO, Fang Zhen, CFO. Greentown Construction, Li Jun, President. The announcement, first of all, we will brief you the results and together of the outlook, followed by the questions asked by you. Mr. Li, please.
Ladies and gentlemen, friends, and good afternoon. Let me brief you a little bit about the first half results, starting from six aspects. One is on the pre-sales.
In 2016, for the first half, the group, including group limited and subsidiaries, together with the alliances, have realized the sales of 2.35 million square meters. The constructed sales, approximately CNY 45.4 billion, with 41% up year-on-year. As at June 30 of 2016, we still have recorded a total subscription sales of approximately CNY 2.4 billion. For the first half, there are altogether 100 projects to be sold. The average price is approximately CNY 19,000 per square meter, approximately the same. Secondly, on the development of the first half of the year. In the first half of the newly projects was approximately 265 million. Altogether, we have a total for the first half of the year, under construction, total area GFA of 19.14 million, with 17% up.
The third one is on the integration of the current construction management with the platform, centralize all of the resources and also the light asset. In September 2015, friends from the investment looked at that we also acquired Greentown Management Holdings Company Limited, forming the leading standard system of the light asset management becoming mature. For the first half of the year, we have also acquired the acquisition of the Lancang with the Lancang business. With the current management integrated together with a new Greentown Management Holdings Company Limited further expanded currently of the projects on hand, 166. The total GFA, 52.20 million square meters. We will become the largest in China and the most capable of the light asset management company in China. The management today, Li Jun, also attended this meeting.
Number four is mainly on the newly added land bank together with the tier 1, tier 2 cities. One is on the Jiuxianqiao in Beijing. Altogether, the land cost is CNY 5.1 billion, and then 11,095 million square meters with CNY 3.7 billion land costs, 80,000 sq m . Also in Hangzhou, in Xiao Xin Yi project, the land cost is CNY 1 billion, and the total area is also quite a lot. Overall, up to now, the total land bank up to the first half of the year, the total land bank, Greentown has already 80 projects land bank reserves. Altogether, GFA is 29.67 million with CNY 202 billion. The average price, the basic price in average, CNY 3,508 per square meter. The distribution, as you can see from the table of the PowerPoints, I am not going to brief you in details.
Number five is on the first half of the year, together with CCCG, a strategic partnership. Mainly, one is with the CCCG's financial support. The other one, CCCG as the single largest shareholder, is currently holding 28.9% shares and the largest shareholder in Greentown. In terms of the finance, they also support us to participate some of the credibility and finance of Greentown, fully supporting us to realize the financial statements with the CCCG's current collaboration credibility so that our financial cost is further reduced. Mr. Fang will brief you later. Number three is on the overall financial control by using CCCG's financial management, offering to the improvement of our financial positioning and the profitability. In addition, to introduce also the asset management CCCG with their group's experience to activate our assets.
Together with the CCCG leasing company, with the current asset after-sales service, including some of the hotels for the finance and leasing, to reactivate the current stocks. In terms of business support of the stationed directors from CCCG with the great support to motivate four subsidiaries, including, as you can see from the media, the one body, four wings. In addition, we also joint investment in two luxury projects in Beijing with CCCG. We are also still a lot of negotiations on the major projects with our management, together with the restructuring of Lancang to fully elevate the brand value of Greentown, offering to the CCCG's property projects. In considering the future, we will be also involved in the construction of the urbanization with CCCG's overseas development opportunities.
At the same time, we also work with CCCG in terms of the sales network and the customer's network to have a cost sharing. In addition to that, we also have a newly innovated cost efficiency approach. With 22 years of development in terms of quality of Greentown and value, have also set up our benchmark position with Tier 1 project together with outstanding custom services are the leading in the industries. Apparently, it is much higher than that of the average market level. In terms of the cost and price, we are also based on this base to have the high cost efficiency strategy to development, investment, product portfolios, to kind of systematic innovation to guarantee the product quality. Number two is to focus on the two core cities, upgrading our comprehensive value of the property market.
In a certain kind of future investment policy, we will insist to expand two cores, in other words, on the core cities and core locations in the core cities. Number three, to perfect the 2:6:2 structure to guarantee the quality. 20% of which will be insisted on the high-end market, 60% will be focused on the mainstream cost efficiency products, and the other 20% is to reinforce the social corporate responsibility on the social housings. That will also satisfy the market demand. At the same time, to reinforce the community monitoring and the construction on the five guarantee system to make sure that each of every project's quality. In fact, also to have the innovation of the structure cost studies face on the markets, orientation to promote the project.
With a much affordable price to promote for the sales with the price control and to promote also Yangliuqing, the MTR buildings, and also on the residential area. They will be also promoting to the market, having a very good result for those projects, and also on the immediate sales and realizing also the market changes. At the same time, for the first half of the year, we have also acquired two awards. One is we can maintain continuously of the 12 years, also from the State Council and also Tsinghua University, together with the other awards on the China property, the top hundreds together with also the annual responsibilities, and we have also three. In addition, for the first half of the year, Greentown has also maintained the 12 five years Zhejiang's top 30.
Mr. Song Weiping, the Chairman, was also regarded as the 10th Man of the Year in Zhejiang province. This is a briefing of the first half of the year. I will leave Mr. Fang to brief you. Thank you, Mr. Yongqian . Now, I will brief you on the 2016 interim financial status. In page 23 of the revenue comparing to year-on-year was a slightly drop, 10%. Gross profit, 7.2% drop at all the comprehensive gross rate, it was also 23.4% to 24%, but simply on the total sales of the assets, it was slightly with 22% to 21.8%, meaning that the non-property sales, the gross profit was increased. Mainly, it was under constructions and the final decorations business. We are making larger and larger in terms of the operation. In terms of the administrative expenses, we have 7.2% up.
In fact, there are also on the CYN 123 million on the Forex, foreign exchange. In fact, we are talking about 5% down on the administrative expenses. On the selling expenses, 2.8% down. For the financial cost, despite we have a 2.9% up, as we know that on the profit and loss statement is on the non-capitalization cost, the overall was 1.688 billion, with slight increase. But on the weighted increase, it was from 7.5% last year to 6.3% this year. For the overall debt size, it was still increasing with a little bit more money borrowed. At the same time, it was 39.9 billion. This year, it is more than 50 billion. This is on the financial cost. In addition, we have also assessed for some of the projects with some of the de-capitalized, with 109 million.
With this preparation, it may not be cash-in at the end of the day. Of course, the selling price is still going up. For the property, we can also have the borrowings. In terms of the net profit, it is a 9% growth to 81.3 million. Attributable, we have also 604 million, with 16.4%. But with the accounting, also, the non-cash flow deducting the core profit attributable on 761 million, with 715 million. It was 23% up year on year. Last year's financial core profit was quite satisfying. On the profit and loss, we also have a special table here to analyze. As you can see, in 2016, it was 15,274 per square meters. Comparing to 2014, it was also down. But comparing to 13,267, this is not a trend, but it is kind of a product portfolio.
Because this year, we have also, let's say, going to appendix two, that we can see on our revenue, which are the projects that we mentioned. As you can see from the product sales, which is also the Xinjiang Lily Apartment, Hainan Blue Town. As you can tell, these are not in the Tier 1 or 2, but rather Tier 3, 4 cities. Even for Hangzhou Jade Garden and Hangzhou Blue Patio, even if they are in Hangzhou, this is only at the outskirts of Hangzhou City. So the square meter per area sold was 16,494, whereas in the Blue Patio was only about 7,400. With this kind of recognized sales, it was not in those Tier 1 or 2 cities, luxuries, apartment there. Unit price, generally, was quite low. So coming to our sales recognized, it was approximately 13,000.
Following the previous briefing in Beijing and Hangzhou, we have also acquired some of the whole core areas, luxurious lands. Other than the future realizing, we believe that on the average sales unit and the gross profit will be gradually improved gradually. Coming to the financial debt and cash position, you can see that on the net, it was 70%. Last year was 73%, quite improved. Total net gearing ratio, even if we have the total borrowings of CNY 50,000 million, we have been quickly improved. For those longer than two years term, it was 50% and CNY 13,750 million. So altogether, cash is enough to cover two times than the maturity one year's loan. So net gearing ratio also dropped. The average cost for the debt is also in average down. Other than that, on the bank's credibility, we also have the CCCG's credibility.
Under the leadership, it is quite favorable for our credibility. It is greatly improved. Naturally, it was approximately CNY 50 billion. Now it's only approximately CNY 20.8 billion. This is our financial status. The next one is to review the capital market in Hong Kong, what kind of sustainable debts together with also the bank loans. Two of them are quite innovation because for the perpetual debts, it was issued to CCCC and to be subscribed CCCC and through the bank, and they have also had some structure. So it is not putting into the liability, but relatively for the perpetual debt, the issuing bond cost is quite reasonable. I'm not saying in public, but it is slow. But for the minor shareholders, they are not willing to do it for us.
But for us, we are in a favorable situation for CCCG by subscribing a product together with the leverage in the bank. It is of course, 10% up. So this is a win-win situation. In the loan, the bank loans, the syndicate. Originally, we are trying to waive on the CNY 300 million, but it was already more than that. The subscription, the CNY 1 billion. So at the end of the day, other than to pay back the CNY 300 million, we also have the high interest debt of $500 million. It is already paid off, so I understand it's approximately under the syndicate. This is one of the largest loan in the mainland property market, and originally it was also at 100 basis point down. Naturally, nowadays, the market price is even low, and we can use even a much lower cost if the bonds are issued today.
Other than the product innovation, in terms of own mechanism, we have also had some changes on the fund settlement center setup. This is personally guided by Mr. Li himself, together with Citibank, Bank of China, Agricultural Bank, to sign up the agreements from the fund settlement. First of all, is to have the fully owned company's asset to be centralizing one of the asset pool, and there will be also other subsidiaries to be joined into the pool. Followed by, hopefully, we will also create an internal bank from the property securitized to development and financialize. Hopefully, we can also get trust and funds and insurance licenses from the fund operation, working together with the real estate. This is the end of my presentation. Now, I'd like to invite Mr. Liang Xuan to brief you a little bit of the outlook of the corporation.
Ladies and gentlemen, good afternoon, and also friends from the analysts. Let me brief you a little bit about the future prospect and strategies. In the first half of the year, after the shareholders, including the operations endeavor, we have completed the Greentown China adjustment control structure with one body, four wings. And currently, if we can see, there are two stabilities realized. One is that our operation performance with our normal work, it's quite stable. Number two, for the human resources, the core team is quite stable. So currently, this is also only a transitional period, but currently, it is quite a smooth transition including commanded by various walks of life. On the one body, four wings, we also realize altogether two objectives. One is the control and structure.
Basically, it can be sorted out secondly with our strategy to have a professional job division with realizing the IDO China to expedite the promotion, and this is the overall situation. Of the one body and four wings, a strategic controlling model to control Greentown China, mainly is to set up the policies and standards and the brands and support. To realize of the subsidiaries on the strategic controls, on investment, structure, core personnel, and also the budget, and also on the risk management. Together, the core resources and adjustment. This is Greentown China's main jobs. Of the four, one is based on the development strategies to have our annual operation to realize. And of course, on the operation and the business side, and to execute on each of the subsidiaries job is that. On the Greentown Real Estate of the seven number one, to start our future Solid strategy.
Of the seven, number one is also the quality product, service property, and also cost efficiency, cycle, gross profit, and also operation performance and efficiency. This is the seven, number one of the Greentown Real Estate property to establish the flagship business development business, and to become the top brand in China. The Greentown Management is to build up sizes and the product chain to have the core advantage. This is of the post-China real estate era, to have the number one service provider, to have built more quality houses for more people, and this is the mission of the Greentown Management. And for the assets group, after 22 years of development of the Greentown, that will have the professional management of all the assets, including hotels. And we have 12 five-star hotels now operation, together with the under-construction.
There are also 19 of the five-star hotels, including also some of the residential, commercials, and buildings and clubs to have professional management to further upgrade the management level and also operation. At the same time, for the Greentown China's non-property assets to have the professional assets to be included in this asset group to have a completely new financial service platform. To have the pro-property and also the finance internal connections. Hopefully, through the development of the next couple of years, within our internal system, they will realize also the real estate and also the connection with the finance. With this completely new adjustment on the management structures, offering to the other three main subsidiaries a very stable, low-cost asset pool. In the future, they will become the financial controlling group under Greentown China with an individual brand, and this is the Greentown Asset Management Group positioning.
Greentown Town Group is also after more than 10 years of studies in combining the future, the development process, offering a completely new business growth to build also the town in China, townships. Through this town group, offering to Greentown China a completely new business growth, and to be dedicated in the emerging township paradigm. This is the Greentown Town Group. This is part one of my briefing. This is currently the controlling approach. Number two is on the future development process, and I will brief you mainly on the eight changes to explain. Through these eight changes, to construct Ideal Greentown, eight changes. Number one is to have the development from strategies to have our future transformation. During this process, we have to insist also on Ideal China, Ideal Greentown, to promote also the professional platforms on the services, and this is number one.
Number two, on the legal body, on the corporate governance, and based on the one body, four wings, to maximize and adjustment the CFO and also the board with the collective management. To adjust on all the approval procedures and further reinforce all of the four subsidiaries for their own accountability. The target which is to build in China, a paradigm on this kind of mixed income. Number three is on the operation mode, to be transformed into a sustainable operation. It is also further on the profit and cash flow be focused. In terms of the decisions, we have to be more respect to listen to the respective shareholders and to have opinion leaders of the major shareholders. They will be more regulate on the Greentown brand utilization and to continue improve our intrinsic value.
In terms of the collaboration, we will have to further raise also the cooperation threshold so that we can have the same equity and same investment and same right to join working with our partners. In principle, there will be also terms of project shareholdings and financial consolidation. We will also charge a brand management fee from the collaboration parties to maximize also interests of the company and also safeguard benefits of shareholders. Number four, on the productions, it will becoming a customer-oriented approach. The production with the current bases to be involved from financial base, from the further, based on the customer's need as a core development to deploy product positioning, market positioning, and also R&Ds to have a synergized operation to reinforce the quality supervision system of the customer service.
Through the Greentown Club and Greentown Fans, participating by the customers in the process of project development and construction. Number five, in terms of the investment, we will focus on the cities, the two core cities and 15 key cities, as Mr. Li mentioned, on the prime location is going to be our basic investment principle. At the same time, in terms of the investment region, there will be very clear decision out of the 15 key cities, including Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou, and Tianjin, Jinan, and Hefei, Zhengzhou, Chongqing, and one with Fuzhou, with the 15 key cities. The projects under construction with the current base to expand the size and effect. At the same time, we will also maximize our regional deployment structure, quality, and volume. The purpose of which is to reinforce our under-construction size and also the effect.
For the towns, they are surrounding the suburban areas of the 15 key cities. There will be also some Tier 3, Tier 4 cities realizing with the Greentown China supplementary. Towards the second half of the year and together with 2017, we will also maximize also destocking. One is on the current land reservation, non-quality land bank destocking, together with the destocking of the current properties. Overall, to maximize our investment structures. Number 6, on the product structure to become an olive-shaped. The olive-shaped is that 20% to be involved in the high-end products with the prime locations in the key cities. There will be high quality, high-end products. 60% are those mainstream products in the market. In other words, they will be cost-efficient products. 20% on the social housings to realize also our CSR. In the future, we will also maximize the R&D, and this is their core competitiveness.
This is also what we have positioned. One is the product motivation, the other one is service promotion. Towards the second half of the year, we will also build up our Greentown, the core products after 22 years, with also our product together with also R&D bases. In 2015, we have also promoted the four buildings. After it is being launched into the market, it is also highly appreciated by the customers and the society. In 2016, we will also promote five new products, which is in August to be launched into the market, realizing a full subscription within one day. At the same time, we will also maximize also our small and medium villas product innovation as well.
Number seven is on the financial management to change to, as an operation management, as the lead in finance, and to endeavor to facilitate management improvement operation so that this will be finance-oriented to have the cash flow, gear ratio with a core financial guide. At the same time, in the future, it will be also collective planning on the management of the debts home and abroad structures, and to further reduce the financial cost. Number eight, the operation evaluation become profit-oriented. This will ascertain focus on profit and cash flow, results orientation, and performance evaluation to have a fair ranging consideration and assessment based on the market and the industry to decide each and every year's operation targets to have evaluation targets, evaluation methods, and spots and rewards. This is the second part of my briefing on the Greentown China's future development strategies.
Number three is on the sellable resources on the second half of the year and unrecognized revenue. The sellable resources will be approximately a full resource. The resellable is approximately CNY 101.4 billion, with 4.89 million square meters. Up to the end of June, we have already accumulated sellable resources approximately CNY 827 billion for the second half of the year. Thank you very much.
Thank you, Mr. Li. Now we are coming to the Q&A session. Please identify yourself and your organization before you ask a question in order to have more questions. Each one is to be allowed for only two questions. Now the floor is open.
My name is Wen, CMB. Having this, a lot of the slogans with the four different types of topics and eight objectives, a lot of them. My question is, if there are so many, let us start from the products. In 2:6:2, the olive-shaped, 20%, 60% on the average, mass market, and 20% on the social housing. Greentown China is still dedicated doing the high-end. So what do we have for this competitive edge? For example, the 20% to be dedicated on the social housing, and the gross profit is only approximately a few digits.
How are we going to make profitable? For the high end, we are talking about 20% profit, at least. How do we comply on the eight projects and maximize of our profits? This is one contradiction. Number two, how are we going to focus on the Tier 1 cities and the main key cities? It seems like from two years ago, Greentown has already sold a lot of your assets. Now you have to start going into Tier 1 cities. It seems that the land you acquired for the first half of the year was quite limited. So if we have to develop in this part, the olive shape, the leverage is rather high. So what will be the mechanism to support this? Thank you.
Thank you for your concern on Greentown. Two very sharp questions and good questions. Number one, I have not heard too clear about that. You are saying that on the Greentown, we do have a lot of reforms and intensity in this year. Of course, the main topic is also a 2:6:2 olive-shaped approach to have the profit maximization. Frankly speaking, of the three management's briefing, my understanding is that Greentown China, in terms of the product market quality, is well-recognized, and the service quality and cost of constructions will have the highest level.
Problem now is, Greentown, for the last couple of years, even now you are doing the best, your profitability, why not the highest then? Of the three mentioned, I believe that three of them have already expressed that Greentown China, within the last year, or within the last 18 months, in terms of the operation, there was a huge change to guarantee the quality of service and construction, how they are also to resolve their business. You also mentioned about the product portfolio, how we can turn from 90% or 100% going to the luxury or the high-end, now transforming into a 2:6:2, 20% to be carrying the luxury profits as the Greentown value. For example, in the Hangzhou Center or the Jiuxianqiao project in Beijing and also Qingdao, or also in Guangzhou. Some of the projects that will continue for the high end, 20%.
60% of which is to resolve what we mentioned, how to resolve the very strong operation approach. Put it this way, from the original 80% of the high-end products to be divided into 60% of the cost-efficiency products. What do you mean by cost-efficient? As we expected, product value and the added value divided by the sales price. I do not know how to analyze. You should know very much well in the mainland property market. Now, if it is a kind of the Greentown, we also keep on, and this is whether it is good or bad for the double-digit profit, I do not know. But if they are unable to reserve, I believe that the highest the price, the shortest. But for the cost efficiency, I do not know which one can boost that I have the highest cost efficiency.
Hopefully in Greentown China, in a certain period of time, whether in two years' time, when we talk about 2018, that in Greentown China, not only that we have the best quality, service quality, also the cost efficiency, such as for the mainland property market. At the same time, we are, let us say, doing the same product or within the same area, selling at CNY 20,000 per square meter, the same selling price, and I believe that Greentown's house will be the best. But for the other developers, I am sorry to say that your factors, your price, and also added value, you are unable to beat us. Customers are very intelligent. They will choose the first one. Of the same price, CNY 20,000 a yuan per square meters, I will have to buy the Greentown.
From the end to the sales, to the product positioning, to investment, this is bottom-up to sales and constructions. This is the core issue that will have the highest cost efficiency. Talking about the 20%, frankly speaking, despite starting from zero, and 2004, we have ready, but during the land acquisition up to today, for the local governments, effective communication and collaboration, it is a very important thing to get the lands acquisition. I do not know, analysts or investment banks and currently for the Chinas, how do you look at the current market or the property market? I am very, very concerned. I am so afraid, frankly speaking. There is no reason, because in China, for the economy is still going down in China, and the purchasing power is keep on going down.
But for the land price, for the property market, the rising rate telling us what does it mean by. From the property market in China, starting from 1980, now that with 20 and 30 years of so many adjustments and control, whether we are now coming into another round of control. For example, now in Shanghai, in Suzhou, Hefei, and Nanjing, based on each of the cities, they already started to have the control. Out of the 20%, from what we understand, the corporate social responsibility, this is number one. Secondly, we are also to have, also in the future, up to now, whether it is the government housing or the social housing or the urbanization, we have the largest scale in China. Almost like 36 million units, and two are the largest in term size. But we have the two largest one. One is also under construction.
We have already 52 million square meters. Up to now, we have 168 projects. This is the largest in China because the second one is what I said earlier. This project is not what we have invested, but with the urbanization, also the revitalization, it was only under From the product structure, product portfolio, what we have arranged. Why you are seeing, this is a good question. This is relating to the 60% of our development belief that starting from what we forecast on the gross profit, many of the projects are already more than 3% Correction, 13%. For the Zhejiang's project, we are talking about CNY 9,000 to CNY 10,000. In Beijing, it is even CNY 60,000 per square meters. All of the product quality is the same, whether it is in Hangzhou or in Beijing.
This is to maintain the construction quality and service quality with this kind of prerequisite we are talking about. Once we resolve the issue, then we will resolve also the distribution. One is all the sale pricing. Then what will be the core is, of course, your cost on your sales price. Other than the land cost, construction cost, I can tell you frankly that we are the most advanced in terms of the construction cost. Problem is now also on the core financial cost, as it is already dropped from 7.3% to under almost like 6% in average. This is our financial cost, and I believe that towards the end of the year or next year, it will even going down further. So where is the gross profit?
Because of your product portfolio, you have relatively on the Tier 3, 4 cities, and for the bank loans of those Tier 3, 4 cities, we talk about 20% up. But in the Tier 1 and 2, if you have the land cost, you have to convert them. On the LIBOR rate, which is another 1% or 2%, so all of the banks are coming up. But in terms of the structure of the Tier 3, 4 city, I am sorry to say that we are talking about 25% or 20% of the LIBOR. This is because within the developer or in this industry, structures and logics relation. If you have the wrong investment, I am sorry that all of you are going to get lost, and you cannot support with your finance or the marketing, and also costing your management fee, and the cost will go up again.
This is a logic issue. But the problem is also, at the end of the day, to resolve the cost efficiency. With 22 years of this business, I know that clearly, with the Tier 3, 4 cities, it does not mean that it is unable to invest, but even in a town. If we talk about the 200,000 or 300,000 sq m , with 1 million square meters, all of you are going to lose with 5 or 10 basis points. With all these issues, you cannot generalize them. I believe that I support Mr. Yongqian on the target, but this is a systemic engineering for the overall systemic resolution. This is one town. It takes time. Second one is the investment into the key cities.
As I said earlier that the current market, which is beyond my understanding, the consumption is also going down, but the land price and property market, I do not know why it is still going up. Naturally, this is also a depreciation of the RMB, and also these are all the reasons and factors. But in my company's data, at the end of 2014, the property investment has already been squeezed dry, not more than 5% at the most. But based on my observation towards the first half of this year on the property market investment and also speculation, they are now coming back to the market. We are talking about 20%, 30% in ratio, the most.
Internally, I have to warn my management team that the attribute of the property market is to resolve whether you have the project on hand or you have to change, for example, some of your consumption. But the property attribute is for your living purpose. At this stage, it is quite dangerous. But with our dedicated property market like Greentown, how are you going to have this kind of adjustment on the falling and volatile market? What do we do then? I believe there are different roads. One is, all the prime project is also Prime issue is on the investment. So long as you can invest in those key cities or the prime locations, whatever on the regulation, it still maintain your value and appreciation.
For the right investment in those Beijing, Guangzhou, and Tianjin, Jinan, and Fuzhou, and Xiamen, and Wuhan, cities like this, I believe that Tier 1, Tier 2 key cities are the prime choice of the professional developers. After it has been regulated, you have to squeeze and go to Tier 3s, 4 cities, and afterwards you have to talk about deleveraging and destocking. This is a vicious cycle. Number two is that also on the stable capital of the investment, now that we talk about every day, the banks are asking us to lend us money. Every day, I receive the report. Every day, we have the cash with more than CNY 20 billion. So the bank is begging us every day. Once to a certain period of time, there will be a turning point for the industry, whether it is on the allotment of the lands.
Number two, even if you have all of the policies, or not to say, talking about the pre-sales conditions or on the mortgages of the buyers. Maybe lately in Beijing, if you do not have any kind of cash, you do not buy that. If unable to enter the market without any cash, like CNY 6 billion to CNY 8 billion in Beijing or Shanghai. So this is also very similar to U.S., Japan, and also France. What we call the posed property market, there has to be a financialization of the property developers. Very much like mainland China, we already talk about the post-real estate. Without the support of the finance and of the capital, you are out of business. If you notice that also many of the developers in China unable to build up in Beijing.
I know very clear in Hangzhou, we have only two existing now from the eight. All of them were squeezed to Tier 3, 4, 5 cities. This is the definite development process on the property market. In America, in Japan, in Europe, they have already had this experience before. In China, you are not to violate this principle. Coming to the big cities, the other one is also on the leverage because it is a good market, especially after CCCG joined us, a very good endorsement. Please pay attention that, as you said, of the four subsidiaries, the purpose of which is not to have the current asset management. This is only one of the measures to have reactivated stocks. The purpose is to construct also a financial controlling group and to elevate the future, our own investment capability.
Greentown China will also organize our finance and leasing various financial service subsidiaries, and to have a lot of financial products and vehicles. When there will be a turning point, I do not have to be relying on the banks. I have a lot of capabilities of my own. If sales can be almost like 8 billion people are concerned. I said, my size, I do not have any kind of expectation in my sales. Greentown China is a very special featured corporation. For the size, this is not my claim, but political change is so complicated in China, and some, what we are talking about, every five years you have a turn of the government. I do not know, next year there is going to be another new term for the political change, whether it will affect us and to the Greentown.
I have to, under this environment, to have a very clear determination, working in China, what will be our most favorable size to operate? I do not know if I have explained to you. It took me a lot of time to explain to you. Thank you very much.
Thank you, Mr. Cao. Next question, please.
I have one question regarding on the under constructions projects, Mr. Li. For example, currently we have 168 projects, and in the future, what will be our realized income and the growth, and if we have to expand, what will be our staff requirement? Thank you.
Thank you for your question. First of all, the under construction project is still undergoing. Up to the end of June, we have 166 projects, and the structure is like 33 projects are assigned by the government, for example, public housing or social housing.
The ratio is approximately 20%. On the SOEs, for example, on the central business or the local government's SOEs assigning us for 54 projects, ratio 32%. The remaining 79% coming from our private enterprises or the local partners, ratio is approximately 48%. We expect in the future that there will be maximize our collaboration with SOEs and central SOEs. For the future, we will use our largest financial and team support to raise approximately 20% of this. Whereas for our current 52 million square meters of land bank, the sales will be more than CNY 300 billion. The under construction is approximately 12 million square meters. With this CNY 300 billion realization, it will bring to us the revenue approximately CNY 15 billion. In the next six to eight years, these are all under constructions project will be finalized.
We are now integrating and consolidating, and this is also the change of the overall project process. We are now coming into the 90 projects already under construction. For the delivery, 40 projects. On the pre-construction, 60 projects. As you can tell from these figures, we are at the initial stage. As Mr. Cao said, we could be the largest light asset operations corporations in China. Two special features. One is that Greentown is now the one and only dedicated on the consigned construction developer. In mainland China, we have so many consigned constructions. Their understanding is not under their development. This is only one of the business units. We understand the consigned construction is not only simply developing business, but a kind of a service industry, a modern service industry.
Their logic and the system and also the integration on the supply chain is originally quite different from the original one, and the approach is so different. So this is currently in China, one and only carrying out on the light asset consigned construction, which the other one is different is that we are undertaking based on the China policy on the consigned construction to get a professional platform. Also, financialization is quite different on the logic that when realizing the consigned construction, the revenue is not for us. But this is a mutual platform to have a mutual share and also value sharing. This will be much closer to the platform and internet logic. This is my answer. I wonder if I have answered your question. Thank you.
Thank you, Mr. Li. The next question, please.
Mr. Cao, management. My name is Eric. Two questions. Some questions. One is on the financial interest cost together with also on the liabilities. We can see that for the first half of the year, our total of 42 basis points down. Now they are coming to the end of the interim. Many of the companies deducting also and CNOOC, they have a very, very low margin. But most of the companies basically are at around more than 70 basis points. It seems like at least this is a little bit weaker than what we expect. Question is that, in the following next six months or 12 months, what would be our average financial cost? Maybe there will be also another room for going down. What about the financial operation relatively, if we are still having a relatively sizable sustainable debt of bonds, perpetual bonds.
The other one is on the US dollars perpetual bonds, which of course having a higher interest. What would be your way, and how they deal with those high interest perpetual bonds? Taking away, we are talking about 100% gearing ratio. If there might be some market risk, whether we can think about some kind of advanced preparation. Second question is on the, we are so glad that you mentioned on the profit-oriented assessment. So whether there would be relatively quantified, what is the target or standard for us to analyze, to use as a reference to attract and to be checked? Thank you.
Let me answer your questions number one and two. For the interest cost drop, we still have some room for the interest down, but for the first half of the year, comparing to the other companies, it is not a big drop.
I have to check on that. Not simply because comparing one or two corporations, this might not be lower than us as a comparison. But as Mr. Cao said that in those Tier 2, 3 cities, it is very difficult to further reduce the interest cost. If they have to reduce their interest in those cities and it is unable to do that, indeed, this is for our overall cost dragging up. But for the rest, whether it is, for example, the syndicate or LIBOR + 3.13%, it may not be higher than the others. For the perpetual bonds, of course, we sold to CCCG, which was a little bit cheaper than the market. But for the relaxation of the finance on the relevant banks is even going down. That involves also on our capital center, having our interest going down again.
For the perpetual bond, we have two issues. One is the CNY 400 million sold to CCCG, and the other one is another CNY 500 million mature in 2017. People are asking whether we can redeem in events. But the conditions enables for us to have advanced redemption, has to be 2019 before it is mature. So we can only put there, but it's not regarded as a kind of gear ratio. We expect that the interest cost is a little bit high. For our statement, it is still favorable currently regarding on the safety issue. Because of these perpetual bonds, together with also the CCCG-supported bond. These are, for us, it's quite safe because for the perpetual bonds, technically, I can have it extended so long as I pay interest. Relatively, this is quite secure.
Let me answer you. For two, one is that if you can see for the first six months, indeed for the mainland China's, some of the developers' interest cost was dropping a lot. Greentown, for the first half of the year, has reinitiated my other policies to issue the bonds. Last year, I have issued CNY 7 billion. According to this year, we still have the corporate bonds, but I don't have enough quota. So versus the corporate bonds together with also private placement, with the convertible to be bundled together. This will involve also on the credit rating. So if I have the issue like this with a higher cost, definitely it will be dropping more than 50%. The average interest is approximately 40% down. So this is one factor. But for the second half of the year, we will definitely have it arranged.
I'm having good confidence, as Mr. Cao said, to drop further. This is my measures, one of which. Second is regarding our post offshore bonds, including the $500 million U.S. dollars perpetual bonds, together with the 2019, some of the high interest, which is 8.9%, 9% bonds. We will also have some arrangements definitely. Once we realize those measures, our financial cost, I believe that for the whole year, it will be even much better job comparing the first half of the year. Thank you. Regarding the bonds and liabilities financial structure, two, I have already answered you. A very interesting phenomenon is that in Greentown's The China property market, in terms of the Hong Kong, Singapore offshore financial, they are having less an interest because the interest is even lower than that in China.
Main issue is, one, Hong Kong with having a lot of on the Forex risk and US dollars bonds. This is what we call non-capitalization issue. These two are the questions, but now the market is good, especially in China now is after being opened up. There will be some offshore bond issue. What is more, in the near future, or even in a very short time period, I believe that the offshore US dollars bond issues channel is still quite promising. It is quite benign because in the mainland China, of all the total capital market is not so mature. The market change, as I said, I can feel the risk is still too high. Once there will be a turning point, we have to go back to square one. This is definite.
My answer is that, as you mentioned, on the future core indicator of Greentown China, you would like to have some kind of qualified expression. I am more than happy and willing to debt what kind of performance, what kind of things, or even up to 2018. Basically, I know very clearly because we do have a very huge budget because of our listed company's compliance is unable to express fully in details. To achieve our financial targets, we can still do it. Simply, I already explained to you, Greentown China, with a sales scale like that, this is not my main target. Such as, in my idea, my sales target, relatively, for last couple of years, I believe that our industry and also we talk about 1,000 per year. Please pay attention that the largest or the smallest of a sales scale, where is the value?
I believe that from the China market, in terms of the China real estate market, we still have a very huge giving ratio, and some of them are reasonable. So if the company does exist, there will be some, what we call on this cost efficiency issue. We said on the interest and also the debt paying, and also on your taxation issue, number four, your management, and also your administrative cost. We have to guarantee of all these four aspects. The safest point is that your sales scale is your only cash flow coming in, plus your reasonable liabilities with the input cash flow. You have to guarantee the four indicators once you open the bar for business. So, one is also to pay your interest and your capital, what we call talking about property markets, and you have to guarantee the delivery once you are sold.
Number three is also taxation duties. Number four is on the compensation on the management. These are the four expenditures. Then you have your business model. The safest one is that how many units will be appropriate for you to sell per year. If we are talking about CNY 100 billion, naturally with the CCCG together with market chain making, we can even do a much larger scale. At least this is not our main claim. After CNY 100 billion sales, the profitability of the net sales will guarantee at least about more than 5%, then it is going to be very good. Maybe I can clear myself, my business model, and my scale is approximately CNY 1 billion, and my net sales will at least be guaranteed for 5%. This is going to be very ideal.
This is me as the chairman, when I manipulate this is my near-term project to be realized. It is complicated because it involves your investment. Where do you acquire the land? What kind of land you acquire? From after the land is acquired, including Mr. Fang said that our financial costs, a very critical issue is other than the debt structure and investment structure, a very important thing is how to appropriate also the leading. Also a cash flow lead time from the investment to the product development, construction, sales, and deliveries of the whole big systems. I would treat it as three major ultimate projects. One is development, construction. Number two, on the consolidating of the service system. Number three, the finance and investment of the three systems having the four subsidiaries to have a very, very good regulation.
This is what I am doing every day. What I am very concerned is out of the three horizontal system, the development service and investment system, how to have them realize in a very short term to solidify my management. As you said, a very clear qualified expression. This is not allowed.