Distinguished investors, media friends, it's been three year now we meet you in person finally. Welcome to join our 2022 Vanke's annual results release. For this meeting, will be conducted online and offline together. For online, you can access the meeting from Vanke's official website, Port Apartment , mini program VRA.cn. Before we start the official exchange and communication, let me introduce the management members with us today. They are Chairman of the Board, Mr. Yu Liang. President, Mr. Zhu Jiusheng. Co-chair President, Chief Partner of Development and Operation Business Unit, Mr. Zhang Hai. Co-chair President, Chief Partner of Property Service Group, Mr. Zhu Baoquan. Executive Vice President, Head of Finance, Ms. Han Huihua. Executive VP, COO, Mr. Liu Xiao. I'm the Secretary of the , Ms. Zhu Xu. Today's meeting will be in two parts.
I will make the presentation of 2022 results release. The second part is gonna be the Q&A between management members and friends from medias investors. Let's start with the presentation. For this presentation, it's gonna be in four parts. There's gonna be results, overview, financial overview, business overview, and action plans for the future. Let's take a look at the indicators, financial indicators. Last year, our performance has been stabilized. Stabilization of performance has been realized. We ranked in top one for operation and operation business. You can see that the operating rev income reached CNY 503 billion, up by 11%. Net profit attributable amounted to CNY 22.6 billion, up by 0.4%. We remained financial and cash flow position robust.
In 2022, we still maintained green category requirements. Cash on hand remaining CNY 137 billion, covering 2.1 x of shortened debt. Net gearing ratio was 43.7%, an optimized interest-bearing liabilities. That interest-bearing liabilities due in one year accounted for 20.5%, and the operating cash flow has been positive for 14 consecutive years. The comprehensive financing cost of existing financing decreased to 4.06%, drop five BP YoY. Sales amount for development businesses reached CNY 416 billion, decrease of 33.6%. Group achieve revenue of CNY 51 billion for operations of business YoY by 23.1%. Now let's take a look at the financial indicators. Let's page six.
Here we can see that's the main indicators of financial situation. For gross profit margin, that's been down a little bit. Before tax, that's 19.6%, and it's down by 2.2 percentage points. After tax is 14.7%, and down by 2.5 percentage points by last year. For EPS, that's 1.95 CNY, and that's up by 0.65%. Dividend ratio, that's about 6.8 CNY. Based on the requirement of repurchase, if the, if we use due the repurchase through cash, then that's going to be encountered as dividend ratio. The dividend ratio is 41.36%. After that, after that, excluding cash part is gonna be 35.65%.
Dividend ratio has been passed at shareholder meeting. We accumulatively paid a lot of dividend. The average dividend payout ratio is about 34%. Then about total assets, that's about a CNY 1,700 billion, down by 9.4%. Let's go to page seven. In 2022, we maintained industry-leading credit rating and it's leading in industry. Net gearing ratio has been low for a long time. The end of the reporting ratio, that was 43.7%. Cash remained abundant. About the one year, the cash covering shortened debt by 2.1%, and cash to shortened debt ratio, excluding restraint bonds and prepayment regulatory funds, that's 1.4x . Page eight, that's about the interest-bearing liability structure has been optimized.
For interest-bearing liabilities, it amounted to CNY 314 billion, amount which 95% of them are without any pledge or mortgage. Also for interest-bearing liabilities due in one year, that's about CNY 64.52 billion, and that was accounted for 20.5%. For the structure, Bonds borrowing accounted for 60.6%, and bond payable accounted for 27.3%. Other borrowings is about 12.1%. For structure, onshore and offshore. The proportion of offshore liability has been decreased by 2.3 percentage points. Let's go to page seven, nine. Last year, we have maintained a wide range of financing channel and kept low level financing cost, optimized our financing structure. We issued about CNY 30 billion of credits bonds.
That was the leading in the history. An average cost of that is about 3.07%. The comprehensive financing cost of a new finance in the year was 3.88%, and comprehensive financing cost, existing financing reduced to 4.06%. On this graph here, we listed all bonds and issued and also listed the financing cost here in the table. Let's go to next part. That's gonna be business overview. The first one is development business. For development business, sales amount reached... That's down a little bit, but we ranked top three in 44 cities. Last year, for development businesses, we have also committed a lot of businesses and also completed about 90% of the targets set by last year. That was complete area of construction, completed 93% of one.
For a settlement, group real settlement area about 34 million sqm and booked revenue of CNY 444 billion sqm. Revenue from EPC and agent construction is over CNY 10 billion. An average settlement price is about 13,000 sqm, up by 1.2%. Gross profit margin for settlement is about 20.4%. That was 15% after tax and surcharges. Within the consolidated scope of the group, there were about 33 million sqm of sold resources that has not been booked and settled. The total contract price was about CNY 530 billion. In terms of a development business, we follow strict investment standard to guarantee investment quality, to ensure good quality of our projects with good reason. Total land premium is about CNY 88 billion.
Land premium attributable to the company is about CNY 49 billion. Total planned estimated GFA is about 6.9 million sqm. Our project resources are kept at a reasonable level. Total GFA for projects under construction planning about 180 million sqm, in addition, the group participate a lot of old city renewal projects with about 4 million sqm GFA based on the current cap planning. On this bar graph, that shows the proportion of total area under construction and planning by region. Let's go to page 14. Here, we're gonna introduce how we enhance and ensure customer experience at all stages, including like sales, construction, delivery, and residential services. Last year, we simplified the contract processes.
About 56,000 groups of customers have signed their contract online. Through the construction stage, we invited customer to visit construction site and to involve them in the quality inspection. For that, it's gonna be for. There are about 6,300 quality co-assurance session was conducted for about 408 projects under construction in 53 cities. There's a 116 projects deliver property ownership certificate to customers on the receiving site. For communities delivered for more than 10 years, we jointly completed 300 renovation operation program to improve their living stages. Last year, improved Over 340 housing units were successfully delivered throughout the year, and about 10 projects we won prestigious construction awards in China.
We list some of the pictures here on the right-hand side. Let's go to page 16. Here, let's gonna talk about rental housing business. For rental housing, we kept at number one in terms of a business scale and operational efficiency. First of all, for business scale, we newly obtained about 16, 17 and 7,000 rooms with a net of 7,000 rooms on field. We ranked in top three in cities like we were present in 34 cities nationwide. Operating income totaled CNY 3.424 billion, up by 12.1%, and we improved our efficiency. The annual occupancy rate in 2022 was 93.3%, the occupancy rate rebounded in second half and rose to 95.6%.
GOP margin of the property front office of last year was 87.5%. Rental collection rate stood at 98%. Customer renewal rate reached 60%. Eighty percent of the customer acquired through self-owned channels. That was the percentage, about 80%. Page 17. Last year, we also promoted the rental housing, proactively promote construction and operation of subsidized rental housing. We, in response to national policy, completed 66 projects in 14 cities such as Beijing, Tianjin, Shenzhen, Xiamen. Provided multiple channel operation services for government subsidized rental housing. Here, there are some pictures that shows Tianjin and Beijing and Shenzhen subsidized housing programs. Now page 18. Actually, for rental housing, the large scale rental community projects are becoming mature.
In November last year, the first phase of a Yueliao community store, Vanke's collective land projects in Beijing, was on sale, making it to the fourth largest rental housing of the Yueliao line in operation in Beijing. Despite its late phasing in the identify 2022, the first phase achieved 100% of occupancy rate shortly after opening. That shows the all-around rental housing solution covering lease and commercial property management. Here some pictures, cases. Yueliao Community located in southeast Fengtai District, 2.5 km from Lizhi Financial Business Center. On the right-hand side, that was the Xiamen Island. For this GFA is about 340,000 sqm, and there are More than 7,800 rooms.
For rental housing, we serve corporate customers in-depth and build new reputation for rental services. For Port Apartment, we serviced a lot of customer services in China. The Port Apartment has cooperated with 2,936 corporate clients, the percentage of whom has increased by 19.1%. For the number of top-ranking corporate customers has increased to 57%, up by 31% YoY. There are some typical cases. There one like Hefei Haiheng Port Apartment has provided like a more comfortable and cozy blue-collar apartments. For Shenzhen, we provided apartment in Yanji store serve to like high-tech companies and customers includes like BYD and et cetera. Share of that reached 96%. We're also working with those leading enterprises, especially the corporate clients like Midea and ZTE to continue to improve the occupancy rate of Port Apartment.
Coming next, let me just walk you through the business of Onewo. You can say last year, Onewo's been successfully spin off and listed, and its revenue is already more than CNY 30 billion. Last year, the total revenue was CNY 30.32 billion, increased by 26.1% on worldwide basis. Especially the space residential consumption surveys reached RMB 60.75 billion, up by 55%, accounted for 55%, up by 24.4%. The revenue from the commercial, corporate, and urban space comprehensive surveys totaled CNY 11.8 billion, representing 37% of the total revenue, up by 28.3% on worldwide basis.
Artificial intelligence, Internet of Things, and the BPaaS solution record a revenue of CNY 2.39 billion, representing 8% of the total revenue, up by 28.8%. The number of the third-party project accounted for 67.7%, up by 1 pips last year. Where for Onewo strategy, altogether for Onewo Town strategy, we altogether have 584 of that, with 205 new projects, and generated a full income of CNY 1.29 billion. I think we have already mentioned we're taking the sub-substrate as the unit, making sure that we are building a Onewo Town strategy of serving the local residents. In serving the local residential properties, the commercial properties, and also the office buildings in just one sub-district.
In this way, all the space, no matter for residential project, commercial or the public facilities, could all be served by Onewo. Such comprehensive solution can help to fundamentally improve the efficiency through the reform over the supply chain. Last year, the supply chain transformation of 38 pilot Onewo Towns completed in September of 2022. It can actually help us to reduce the cost of the basic residential property service by more than RMB 30 million by the end of the year, increasing the annual gross margin by more than 4%. Well, let's also take a look at Onewo, our residential properties they committed to high quality service. Vanke Service is presented in 149 cities nationwide, focusing on 50 first- and second-tier cities, and also serving 4,358 residential communities.
59.1% of the residential property under management totaled with 2,036 are owned by the third party. Last year, we also started a renovated old properties and improved the comprehensive service. We provide the fresh food, groceries, household product, education and travel service, and paternal and childcare product, and pet product to further improve our high quality service. Till today, we have already raised CNY 29.1 million, contribute to hundreds of the renovation and the renewable projects in over 100 communities. We continue to promote a safe elevator project, making sure that we replace the aging parts and building professional elevator operating teams, reducing the elevator failure rate by 57.1%.
Annualized number of the trapping was 0.06x per unit per year, which is much lower than 1.4x per unit per year as the national regulation mentioned. Well, for Onewo, we also continue with commercial, corporate, and urban service expanded rapidly, and we are focusing the internet high-end manufacturing, finance, and strategic emerging industries through Cushman & Wakefield Vanke Service totaled 2,133 projects. We further expand our business for the energy management, dust-free management, group meal management, administrative management. You can say that for property and facility management surveys reached CNY 7.57 billion for that year, grow by 43%. Revenue from third party accounted for 85%.
Last year, we acquired 12 new project management surveys for super high-rise landmarks in 2022, further expand our customer portfolio with Fortune 500 and China top 500 enterprises. For City Up, we have already entered into 36 cities, managed 84 urban space integrated service projects. For example, in Shenzhen, we have the Huiyun Center and Guanfa Securities Headquarters building in Guangzhou, and also Xiangyang Mazon in Wuhan, and also the Haimen Plaza block in Shenyang. Well, let's also talk about how we further consolidate our key technology projects aiming to increase technology revenue.
You can say that empowered by technology, while we continue to improve its space service capacity, we have already launched 29 product lines with 140 technology products and over 40 stock space solution while working with Huawei, Tencent and Alibaba to continue to leverage our technical service to empower our corporate client. Let's also talk about logistics and warehousing. The operating income increased by 70.9%, continue to maintain our first cold chain scale in China. The revenue, including the non-consolidated projects, reached CNY 3.56 billion, up by 17.9%. Of which CNY 1.4 billion was generated by cold chain business, up by 46.7% on YoY base. We operate and manage 162 self-owned projects in 47 cities nationwide.
You can say that, last year, with a total floor area of 9.64 million sqm, we also have a very good efficiency. You can say the occupancy rate is already more than 90% for the high standard warehouse. Well, for NOI last year, it's CNY 1.98 billion, grow by 11%. The stable stage NOI yield of the high standard warehouse and cold chain were 6.1% and 7% respectively in 2022. Coming next, please go to page 25. Let me just give you a brief talk on how we continue to strengthen the depths of the service to enhance competitiveness of operational business. Last year, we deeply involved in the customer supply chain management and continue to improvement customer stickiness.
For example, we have already served 176 Walmart stores and 250,000 members of Sam's Club nationwide. We provide our diversified service, which integrates the fresh food distribution and ambient temperature shipping and process center. Last year, our contracted revenue increased by 103% on a yearly basis with Walmart. For Tyson, we create a whole chain digital solution for Tyson. We started our service with Tyson in Southern China and served more than 300 of the Tyson's customer. For Naixue, we have already completed the supply chain expansion with three months' three distribution centers in Shenyang, Nanjing and Wuhan, and served more than 25% of the Naixue store nationwide, delivering more than 210,000 pieces of the goods and 2,500 stores per month.
This is actually a typical VX Shanghai Fengxian Lingang Park, which actually provide the book cross-docking expiry management. Altogether, it actually have 10 fresh air-conditioned product. The park has 10 independent artificial ripening warehouse with a weekly ripening capacity of 75,000 standard case of the fruits. With working for the top clients, these warehouse are also serving many top gear fruit producers in China, which can guarantee their fruit safety when be delivered to the market. Well, coming next. Let's also take a look at page 27. Steady increase of the revenue for the output management. We actually continue to improve our commercial business.
The generated operating income, ex-including non-consolidated projects, is CNY 8.72 billion up by 40.3%, and CNY 5.48 billion was generated from commercial projects managed by SCPG, up by 4.8%. The overall occupancy rate is 93.2%. A total of 242 commercial projects, including 138 community commercial projects, has been opened with a construction area of 12.227 million. While for SCPG last year, the total projects managed by SCPG reached 36%, and with 61% of which are third-party projects. Let's also take a look at our retail property development and operational service. We continue to integrate business resources within the group to improve operation quality.
Last year, we actually assigned the management of some commercial projects across seven regional BGs to SCPG at the end of 2022. After that, this adjustment, first and second-tier city around for SCPG has already more than 90 in terms of the total area under management. Yangtze River Delta represents 44%. Last year, we also launched some new projects. For example, you can see the NOI rate in the first full year was over 6%. Hangzhou Olympic Expo City is reaching 6.7% for the average NOI rate. SCPG, the number of members reached 22 million and with a 37.9% YoY growth. The online community was also a ground with more than 1,700 followers, boost the sales growth. On the right side, we show you Hangzhou Olympic Expo City.
The last year, the revenue reached CNY 3.3 billion with annual footfall of 50.33 million, with 280,000 new members. Also the NOI yield of last year was 6.7% for this project. Please go to page 29. I list out the projects we have in Shanghai, Qingdao, and Nanjing. You can see actually the lease rate and also business operation rate and the GFA are all in very healthy status. Please go to page 29. Now let me just walk you through hotels and resorts. In 2023, actually, we have the Yanqi Resorts being open to the public. We manage 6 ski resorts with a total area of 340 hectares of 102 ski trails under the management. The total length of which is 73.2 km.
The business revenue reached CNY 280 million, up by 11%, receive 880,000 guests, up by 12%. Last year, we also started to work with SKI for cooperation. You can see our Songhua Lake, the resort continue to be greatly rewarded for seven consecutive years, where we also support winter sports and promote athletic events. For example, like Snow Shines China and other competitions, including Vanke Cup. Well, please go to page 31. On page 31, we show you the hotels and resorts. The group has 33 hotels in operation in key cities such as Shenzhen, Guangzhou, Suzhou, and Hangzhou, as well as tourist cities like Huangshan and Lijiang. The joint venture platform, Banyan Tree China manages the business development of the Banyan Tree and Angsana in China.
The group has launched two proprietary brands, including Zanyee and high-end business Youxiong, featuring urban culture. These are the three typical projects from Suzhou, Chaozhou, and Shenzhen. Let's also talk about how technology empower business. Last year, we continued to have integrated digital data to improve our efficiency, integrate data from finance, capital cost, marketing, engineering, power, digital employees through AI technology. We developed more than 80 algorithm that based on the algorithm, the digital employee automatically analyze and identify pro-process problems as well as potential risks and assist the personnel in charge of the solving problems and provide feedback. On the right side, that is our digital staff, Cui Xiaopan. We also create a digital negotiation space to enhance customer experience, especially online self-service tools, enhanced digital marketing. For example, we do have the cloud sand table digital modeling technology.
It is a 3D model which can actually virtually send to help the customers to better understand the selling points of the product. It can actually help our customer to truly understand the project. Well, through our Yixian Farm, and the customer can actually get to know our project information last year. We have 157 million customers being visited our Yixian Farm, our small app. Well, from page 33 on, let's take a look at ESG. The last year, we still have the industrial leading and highly recognized performance. We've been recognized as excellent ESG practice, and we are also being taken as the AA in CNI ESG rating, and also the first online developers that has been included by CNI Index.
We were also the number one in real estate sectors in Mainland China that continues to be included into HSCASUS. For MSCI, they gave us the BBB credit over our ESG performance and will also be included into Forbes China ESG 15. The page 34, let me show you our green building. For nine consecutive years, all of our newly constructed project met green building standard. Altogether, Vanke's accumulated GFA in line with green building standard exceed 308.3 million sq m. We have seven LEED Gold, three LEED Platinum, three WELL, and one WELL people 90 certified. 36 of the projects adopt a renewable energy design. You can see, for the new product, the lifting industrial ratio of the new mainstream project reached 85%.
We also have a net zero carbon intelligent logistics white paper to promote 100% green certification, the full coverage of the photovoltaic in cold chain parks. In terms of a green operation, we meant our clauses of ESG initiatives have been incorporated into the standard leasing contract template for commercial development, operation, rental house and business.
For greens and tenants of commercial projects were encouraged to adopt green renovations. Green financing, we set up the green financing framework, stabilize the funds received on the JV. We issued three tranches of green medium short terms with a total scope of CNY 7 billion. Let's go to the fourth part that's about action plans. In 2023, the group will focus on the following aspects. First, ensure operational safety, maintain the industry-leading credit rating, sustain financing flexibility, continue to optimize our debt structure, and uncover opportunities in equity to foster healthy business growth. Secondly, firmly place the equal emphasis on real estate development operation services.
Develop together with cities and customers and promote business synergy from the perspective of maximizing overall interest of the group with the goal of maximizing market value in the long term, and improve the general management level of value in the long term, and improve the general management level. Thirdly, develop more superior assets. The group will optimize construction and management standards from perspective of business operation, develop superior assets with trading conditions, and explore innovative tools such as REITs. Fourth, improve ESG value and sustainability. Embed ESG principles in our daily work, continue to explore green and low carbon development models. For property development in specifically, we're gonna coordinate the development operation business through the headquarters of development and operation, and lay a stable foundation for projects operation and establish mechanism for sharing capabilities. We're gonna do the following.
First, actively promote sales return, improved conversion of existing resources, optimize capacity and structure, focus on both professional synergy development efficiency in effort to improve the input and output efficiency. Second, improve investment quality by changing the focus from urban micro indicators to health status of the regional segment. We strengthen self-debonding investment projects through sufficient market research and demonstration, and we also strengthen management before and after investment and regular reviewed performance. Thirdly, we're gonna improve the level of refinement management based on the iteration and operation of product lines to make them more closely aligned with needs and expectation of segmented customers. Focus on achieving efficiency and quality improvement through professional synergy of design, cost, procurement, continuously improve input and output efficiency.
Fourthly, ensure the quality and quantity of housing delivery adhere to bottom line of safety, production and quality, and continue to promote practices such as quality construction. For 23 management completion plan, the estimated JV of existing projects excluding newly acquired projects in the future plan to start or resume is 16 million sqm, and actual start will include the new projects started this year, which may lead to differences between the actual construction work and the plan. The estimated JV of the completed project this year is expected to reach 33 million sqm. Rental housing, we're gonna expand management scale and improve management level, respond actively to balanced approach between rental for sale housing, continue to expand management scale of rental housing business.
According to market characteristics of different cities, Group will seek incremental development opportunities based on local conditions and develop large scale of leading advantages, improve management level and realize accounting statement under the cost method. For Onewo we're gonna maintain high quality of service and achieve steady growth in customer diversification. We're gonna maintain high quality for basic services, and we will enhance organizational resilience with customer diversification, expand deeper cultivation of industry customers, and enhance our corporate service capabilities. Focusing on the needs of corporate customers, we build the services capability in segmented markets such as building property management, work environment management, et cetera. For logistics and warehousing, we can improve the layout of warehouse network and strengthen the construction of channels, focus on the cold chain and increase investment in core cities, and improve the layout of warehouse network nationwide.
Based on customers' demand, we will continue to increase investment in core cities, the Yangtze River, Delta and Greater Bay Area, et cetera. Second, we will strengthen the construction of channels, improve the ability to serve customers. Bank focus important customers in new energy, automobiles and components, supermarket retailing, chain catering, et cetera. Improve our customer capability for integrated supply chain solutions, enhance our customer loyalty. For commercial development operation, we will improve operational level and ensure the opening of key projects. First of all, we will improve operating return of commercial office projects. Commercial office projects shall comprise both complex projects with good proximity operation and community retail business that have synergy with the development of comprehensive residential areas. Second, we ensure the opening of key projects.
The new projects shall strengthen recognition of products and create innovation space and experience customer consumption centers by virtue of Shenzhen Yinli Center, Shanghai Longhua Center, Chongqing Shapingba. We will steadily revitalize dock project representing Tianjin Heping City, et cetera. Thirdly, we will focus on development strategy of asset light and asset heavy projects. Our asset heavy investment will focus on cities and well, our asset light business, we expand cooperation with the state-owned SOEs, insurance capitals, fund, et cetera. There's an appendix. We will not go too much depth in it. That's all from my presentation. Next, that's going to be part two. It's going to be Q&A. Before the meeting, we have made this announcement. We have already gathered some of the questions and investors. The questions covered many areas.
That was like business operation, financing, REITs, and dividend payout, et cetera. For the exchange Q&A, we will invite customers to raise their questions. At the end of the session, if there are question that hasn't been covered, you can raise your hand, and we will continue from that. Before you raise the question, please raise your hands. When the host confirmed, and you got the microphone, and you can start your question to make sure that everyone has more chances, so everyone could present two questions at most. Before you raise your question, please introduce yourself and which organization you're from. Let's start the Q&A session. The second row from and the gentleman in the middle.
Good morning, management, and thank you for giving me the chance. I'm analyst Guojin from GF Securities. Congratulations for your results in 2022 amidst like bad market conditions, realized a growth of profit and the dividend payout ratio has been a record high. In 2023, we care about the market situation. Seems it has got better at the end of last year, but still there are arguments and amid discussion, the demand hasn't, you know, is not that sustainable. For development business in 2023, what's your assessment for development business and how much the market will recover? What's your strategy for operation amid this market condit ion? Thank you.
Thank you for your question. That's more about market condition and Vanke's action. Okay, thank you for your question. For market assessment, there are, you know, arguments. There are disagreements.
One of the typical opinions once said that there's a rocket rising since the market. That's quoted from a TV series. The secondary is another opinion. From different group of people, they are in different situation. They have different references. They have different feeling of the market. From the point of Vanke, we are familiar with the new housing market. Our conclusion stayed roughly the same. Market is still, you know, mild recovering. This is, you know, our assessment for the last six months. I don't think we will amend this opinion at this moment. January, well, why was this skyrocketing, like rising? You know, February sales has been recovered, obviously, especially in tier one and tier two cities. MOM by 46%, up by 46%.
People say that's a huge rise. There are four reasons. Firstly, you know, last December last year and January this year, there are a demand that has been released then in February. The second is that, you know, the Spring Festival was in January this year, and then people went home, their home cities. The sales during Spring Festival was impacted. Thirdly, that's about the policies. That was quite friendly, like central government, local government have been issued policy to support to stimulate the demand and also boost the people's confidence. Fourthly, because the housing price has been adjusted, that price to performance ratio has been improved. Now it's at a reasonable time window for people to get in the market and purchase the houses.
The four reasons that leads to huge rise, obvious rise in February. That's the four factors. If we combine January and February together and compare that with that the same time of last year, like what and why comparison, I think tier one and tier two cities only increased about 7.2% for new housing sales. That was a much bigger for us, rise. Since March, especially since the second week, the market temperature and sentiment has been going down a little bit. You can see the contract signing. Actually, the high point was down by 6%. The average weekly settlement, the transaction was down a little bit, but that was, is still higher than the highest point in 2022.
Overall speaking, the market hasn't, you know, present like a huge rise or decline. For this spring, the February, you know, it's gonna unusually colder, usually colder than other months, and also colder than other years. Still it's spring, flower blossoms. The market sentiment has recovered, so we still maintain this assessment. In terms of the future demand, our opinion is that we think the demand for the new housing will see ceiling also bottom and floor at the same time. Why there is a ceiling? Because the existing housing scale is already very big in the country. So in the urban areas, like, the living space per person is about 40 sqm. Also there are more houses coming into market and launched. New housing market won't go back in 2021.
That's why I said there's a ceiling for it. That won't go back to 2021 like that. At the same time, in term when we see the population flow and people's demand to improve their living conditions, as long as they aren't like big changes, big risks in the outside environment, That's why I said there's a floor, there's a bottom line and a support. That's why I said in 2021, that was gonna be the peak. In the future, we will maintain our position of opinion. In the future, we're gonna see short-term fluctuations. That's gonna be normal. We as a real estate company, we have to admit the market situation.
The markets won't go back to the old stage that focuses in too much on residential development for big companies. We have to focus both on operation and development at the same time. For Vanke, we will admit the market situation and conditions, we will adhere to our stage, our policy to focus both on development and operation at the same time. Thank you for your question.
Thank you very much. Thanks for Mr. Guo. Now let's welcome the second people to raise a question. The man in the white shirt.
Dear management team, I'm Tu Lilei from Haitong Securities. I have two questions. My first question, last night, I saw your annual result released. You can see that actually the GP margin is lower than the GP margin of the residential project. I mean, the group GP margin is lower than the GP margin of the residential projects. What's the reason? What would be the comprehensive GP margin may look like in the near future? The second question is also regarding profitability. You can see that from 2022, three on, we see some micro improvement and also from the land resources perspective.
I'd like to ask you, what would be the GP margin trend for the residential projects in the near future? What would be the outlook? Thank you very much. Thank you very much.
Thanks for Mr. Tu, thanks for paying attention to our GP margin of 22 and how the G P margin of the development business might be in the near future. Let's welcome Madame Han to respond to the question from a financial perspective, and then we will have Mr. Zhang to build a few insights from the business perspective.
Thank you very much. Thanks for your question. Regarding GP margin, let me just explain it in this way. Our average GP margin is around 90.6%. You say that our development business GP margin was 24.6%. There is around 1% difference.
The reason is because for our recurring business, we actually use the cost methodology. For the cost methodology, every year is going to generate amortization. For recurring income, as we have more projects being put into operation, we're going to see more amortization. Many of that will be built into cost. That's a reason to some extent is going to impact our GP margin performance. There's 1% discrepancy between the Group GP margin and the Development Business GP margin. If jointly speaking, they being recovered or being unadjusted, actually the GP margin for the Group would be more than 20%. Talking about the GP margin outlook in the near future for Development Business and the GP margin is 20.4%, which is a middle or middle upper level in our industry.
If we benchmark ourself with our history, this number was on the downtrend. To be objectively speaking, in the year of 2022 and the sales continue to drop down, you see the GP margin from the sales end truly being pressured, where you can see the settlement is being delayed right after the sales. As we have more sellable resources getting to the construction and the deliveries stage, in the next two years, you're going to see some settlement response. Sometimes we see some settlement GP margin on the downtrend. There is such a signal. Madame Zhu also mentioned we got some high quality projects. As a new project, no matter from the ROI, NOI perspective, you can see the GP margin for the new project still could be stabilized within 20%.
I surely believe our development business, the GP margin could still be stabilized also with positive growth. While for Onewo, they also released their annual result announcement and excluding the property management for Onewo, actually, the GP margin was also on the downtrend. The reason is because from accounting perspective, a way to become more prudence and making sure that the prime is being built into the intangible assets and also use a short period of time for amortization. It was hurting our GP margin with 2% in 2022. Where at the same time, due to the industrial development in the past, for some value-added service or community value-added service, the revenue was on the downtrend. To a great extent, it was also hurting the GP margin.
Now, as you can see that, majority of our business are the recurring business and their operational efficiency continue to go up. For example, technical business, the GP margin, the revenue was performing very good. We believe our GP margin will be recovered right after 2023. You were also talking about the operational business, no matter for commercial, for long-term rental apartment or the logistics services. As we continue to consolidate our business, the GP margin will go up. Last year, it was up by six pips, due to the cost accounting methodology, until now, you can still see a low double-digit growth without too much contribution to the group GP margin.
Even if we have some limitation from the accounting rules, but as our operation continue to go up and even if it's not yet being reflected by our balance sheet, but the positive growth still be picked up by us.
Thank you very much. Let me just give some additional comment. Stabilizing GP margin. What we are doing now is to stabilize the GP margin of our existing resources or existing sellable resources. Improving efficiency and generating more revenue from existing business is actually our key strategy. First of all, way for the existing projects or the existing construction project, we have a two managerial management improvement. On one side, improving our cost and efficiency. For example, last year, we keep an eye on the market changes.
We take per week to help to understand the quality and the retail price, making sure for each project, we do have the tailor-made pricing mechanism so as to provide the benefits not only to the customer but also to us. You can say that in the past, we pay not too much attention to the operational efficiency of our sales office. You can see if we are be able to improve the operational efficiency and make a new arrangement. The sales office nowadays can actually help to save at least CNY 1 million per year per office. Where at the same time, there are some existing resources. I mean, from the land bank perspective. We are taking a look at the positioning of each project and also the ROI.
We hope that we will be able to dive deep into the value of each project so that we can further improve the priming of the project, making sure that the ROI can continue to contribute to the GP margin. For example, we do have a kind of brochure, just like a small red booklet, to allow our regional sales office to know what they need to do in order to improve the efficiency. For the new projects, we are more prudent, and we also have the pre and post in-investment management and making sure that for the operational team, we also made very stringent requirement over their operation, making sure we can honor our commitment for the investments being made. The GP margin of the newly invested project is close to 20%, basically meeting the bar internally. This is a very positive signal we can pick up.
In the past, indeed, GP margin pressured. Now it was marching towards a positive direction. I think in the near future, if we can continue with our strategy to further improve our GP margin, I still have every confidence that our GP margin would be improved in the ne ar future. Thank you.
Thanks for Mr. Tu from our Haitong Securities. Thanks for the two management members to respond to the question. Let's also welcome a friend from the media. Okay. The first row. I mean, the lady just... Oh, this lady, please. Please circulate the microphone to the lady sitting in the fourth row.
He llo, I'm Huang Yu from CME News. I have a question regarding financing. Last year, since November, we find out regulator actually issued many good policies in supporting property developers to do financing in the market.
I do see there are some financing improvements being identified last year. Where for Vanke, I saw you grabbed the opportunity of the window and also continue to act in the market. Your interest about reliability was on the uptrend. I'd like to ask you one question, how you like to comment on the financing market, I mean, the general market of financing? According to your judgment, what would be your financing plan in the next few months? Are you still going to take the window opportunity to continue to prepare for more financing? Thank you.
Thanks for Huang Yu from CME News.
I think you were just asking about the outlook of the financing environment for developers and whether we're gonna do more financing in the near future, right? Let's welcome Mr. Zhu to answer the question, please.
Yes, indeed. Last year when we have the first and second policy, just like the two arrows, we call the policy, the industrial financing environment has been greatly improved. I think the whole process is more like a credit recovery, especially the credit that's been recovered and been reestablished in the finance industry. We do see some polarization. For those developer with good business, with good credit data, profile, they're gonna to get more resources for financing. Where for some company, they do less good business with less good credit profile. I don't think they are benefiting too much from the financing improvement. I think you can actually take a look at the intention or propensity from each banks to say whether the banks would like to provide support to the developer.
The more quota that the bank provide to the developer, the more robust shows the performance of the developer would be. We'd like to thanks for all the banks for their greater support, because banks used to say... Actually, sometimes the bank's gonna actually support you when you are truly needed. For banks, they do have their own philosophy of assessing the industry and the corporate performance. I think Madame Zhu in the presentation has already mentioned our total financing, the period, the flexibility, and the multi-channel financing has already been mentioned in the presentation. Well, let me just change to another perspective in report more details. You know that for our internal transformation, we hope that development, operation, and service need to be the key three lines of our business. Wherefor development, operation, and the services are very different from the fundamental perspective.
Development business, you need to make sure you have a high quality project and the project needed to have a very good performance with very good cost effective. The cash collection would be the key for the development business. If a project with a very good cash collection rate, it means it actually provide a good product to the consumer. The more cash we can collect from one project, the lower the financing cost would be. It is more like a balance. The more faster you can collect the cash from one project, you're gonna have a lower financing cost from the market. This is how the product power is being demonstrated in the market. Where for the recurring business, operational, and the service business, you can say that its anchor point is somewhat different. It truly depends on the operational capacity.
If we give you a space along with the content, ultimate EBITDA and NOI are the key to consider whether a company could be well operated in one business. The EBITDA and NOI are the two key criteria in assessing the operational and also service business. With high operational capacity, the assets and operational efficiency of service and operational service would be therefore maximized, and then be able to enjoy a lower financing cost rate. You see that for the business, they actually have a different logic story in the fundamental layer. There are some difference between the development business, service, and operational business. You can say that people were taking property development business as a peer industry, no matter for the credit extension party or the credit profile party. All of us need to learn from the lessons in the history.
We still needed to further consolidate our performance for the high quality financing. There are four points. You need to focus on the real value creation. You got the money, you create the value, rather than just using the financing proceeds to do something else. At the same time as we are providing the operational and the service business, we hope that the payer and the receiver, they don't meet in person too much. Sometimes you see that the regulation from the banks has not yet been truly exercised by our front line staff or the first line staff. This is also one improvement. We continue to improve the communication between the banks and our teams, we should also safeguard our bottom line for social and ethical value.
More importantly, we need to make sure we have a well control over the leverage in the past. There used to be a rise and irrational stage of the leverage. We need to learn the lessons from those track record to well manage the leverage of any company in this industry. No matter we have more financing or less financing from the market, financing is always a way to serve the business development.
For our operation and services businesses, that we invest more and the projects are gonna get more, and assets gonna get larger. That's somehow from my personal feeling for our development business. We have to do our own development business well. Ever-for leverage ratio, whether it looks or seems high or low, that doesn't matter too much. For operation and services business, I say that was the same thing. We have to focus on services and do our job well. We have to cooperate and coordinate from, like financial institutions like insurance firms, et cetera. For operation and services business, we may need to get more knowledge from, like, trading counterparties in financial institutions to improve our knowledge and capabilities to deal with them, to cooperate with them. Thank you for your question.
Thank you for your question.
Now let's give the floor to another friends to raise your question. From the second row, the third line, lady in yellow jacket.
Good morning. I'm from 21st Century Business Herald. The real estate market has been adjustment period, companies have to adjust their living model. You mentioned that operational business is gonna be a new cash reserve of Vanke. What are the kinda new business in this level? Although it shows good growth, the profit contribution is still quite limited and a bit away from what you mentioned. In the future, what's your assessment for the profit and revenue contribution from operational business? Thank you.
Thanks, Ms. Wu, from 21st Century Business Herald. You mostly focus on Vanke's transformation and our operational business. Thank you for your question.
I'm quite expecting to this question 'cause I'm expecting to answer it. I have a lot to say. First of all, this new model of development and the industry has been enter a new stage, new era. This is a, you know, huge, huge social topic. We don't have much capability to define it or to change anything about it. We don't have the ability to define this new era of stage by ourselves, but we have our own observation, to share with you. Look at this micro e-environment for markets or policy. For operational and services business, we are getting more optimistic, and we are focusing more on it, investing more on it. For that Vanke's... That's why Vanke did our decision to focus on development and operation at the same time.
For operational, like, real estate investment, this attractiveness has been, you know, getting larger for investors. In the past, the biggest change is that the operational real estate assets can generate long-term stable return, and this advantage has, you know, been manifested, getting more obvious. So people will expect that it has low risk, it has bigger ability to withstand risks rather than like development business that will show greater fluctuation. Well, in the past, people would say that it has lower return, but nowadays the average return of an investment, averages speaking in the society is getting lower, so the difference is getting smaller, gap has been smaller, so this business gets welcomed by the market. We will gather and keep good quality assets at our hand, and then people will want these assets from us.
Attractiveness from this business getting larger. At the same time, we would think that there are some relevant policies for financing channels. We have this channel close end channel like investment, financing, construction and exit. In the past, there was no exiting choice for us, but nowadays there are different kinds of financing choices like REITs. Like last week we did it, and they are like fund for... And also rental housing, long-term rental housing, there are bonds designed for this. There are tools for us to use. In the past, holding these kind of assets showed, has a disadvantage of being too heavy, but now there are policy supported to help it to alleviate the pressure.
Well, in the past, when we are selling houses, we will do like a mortgage. People are doing it. Nowadays they are more diversified toolkit for financing like REITs and et cetera. We have these facilities ready and the markets, and this business will take off officially from now on. That's our belief. What's the point of doing it? When the facilities are ready, the existing resources in the city will be better utilized, and they're gonna be converted into potential opportunities. Now they are like, for example, 4,700 buildings. There are different kinds of buildings, like warehouses, like commercial buildings. These are the assets. When time goes by, people's demand changes as well.
People will have the demand to improve their living condition, living stages. This business will generate new vitality. That's opportunity for us to do this operational real estate business or for Vanke. Well, for our operation and service business, we have first mover advantage. First of all, we chose the right direction, like early on, like since eight to 10 years ago, we have made our decision of this path. We know that for development business, we have made assessment that's gonna be ceiling to it. In the end, the ceiling showed up in 2021. We made our preparation eight to 10 years ago, so we started quite early, earlier than others. The advantage of starting early is that since last year, we aggregate our operational businesses.
Contribution was zero, it's already improvement because in the past, it was negative. We paid our tuition already. Finally, tuition is, you know, gone. It's done. Finally, it's not a burden anymore financially on our balance sheet. Another feature is that we made a all-around deployment in this business, and we are ranked like top-notch in different segments. For property services like Onewo and, like, Onewo Town and Wakeman Field, et cetera. We made this preparation and deployment a lot earlier, we made a deployment in different segments especially in recent years, especially in long-term rental housing like warehousing, high storage warehouses, cold storage warehouses, et cetera. We chose our path, we ranked basically top five in all those segments.
All around the deployment means that we will generate good synergy. You mentioned about transformation of existing resources. When we are serve a big customer, like sign a strategic agreement with big customer, they will need more than just one thing from us. For example, rental housing. Different business to cooperate to provide synergy. For example, smart equipment, they will help us in the end. If we just have one singular business, then we would not have the capability to provide comprehensive transformation for customers. For customers, for governments, the city's development, they will need this kind of scenario and capability, all around capability as well. We ranked top-notch in all kinds of segment.
Like the, for example, the leader from the Singapore have visited one of our business. That showed our capability. From this point of view, Vanke has exhibited first-mover advantage, overall speaking. We believe aggregated speaking, for operational and services business will generate double-digit growth, and the profit is gonna be positive for profit contribution. There are still some problems to communicate with you for operation and service business. We will, you know, earn long-term money, hard-working money, hard-earned money. The business, you know, size is not gonna be big, not like development or house selling.
For property and services business, for averagely speaking, per sqm per day, the revenue is gonna be highest to rental housing, CNY 80-CNY 100 o f our Shenzhen lowest, CNY 40 per sqm per day. That was averagely speaking for commercial. That was about CNY 6- CNY 10 for commercial and logistics. That was 1 sqm per day. That was gonna be even lower for property services, so that's more money. We have to transform our mindset. You know, the unit's different. In the past, it was like, the unit was like CNY 100 million, et cetera, but now it was like, denominated in yuan. In the short term you will need to change your mindset of your expectation for, you know, P&L. I know that's gonna be challenging to transform it all at once, this business is gonna be different.
This business is different from development business because it's like a rolling snowball. It's gonna get bigger and bigger. For this part of business, I think it's a sustainable business. Give us some time. I believe this operation and service business will make its own huge major contribution to our P&L. Now the outside environment is already ready, and we have different kind of tools and policy to support it, the progress is gonna be speed up. Overly speaking, for this business, we will make our preparation
Fully try different kinds of channels, but we need to be patient as well. Thank you for your question. Thank you for your question. Now let's invite the next investor to raise your question. The gentleman in black jacket in second row.
We'll continue from Miss Wu's question. For this of like decades of business, and now we have advantageous policies. Now, for assets off balance sheet, what's your plan for 2023? Are you gonna take any actions for that?
Thank you for your question. You are asking about REITs and our plan. Let's welcome Mr. Liu to respond to the question.
Thank you very much. This is a question regarding REITs. I think this is a very good question, just taking it as a follow-up of what is being responded previously.
Talking about REITs or other commodity or the trading tools, I think we mentioned about public funds and also REITs. Let me just use REITs to elaborate on that. As we are now further expanding the channels for the trading REITs actually help to further consolidate our business of having development business and the reoccurring businesses at the same time. REITs is actually a very good tool, making sure that the high quality assets would be able to enjoy a good withdrawal channel. This is actually good for the financial market, 'cause in other words, the fixed assets investment could also enjoy good liquidities. This is actually a double-wing situation, not only for financial market, but also for the property market. A far-reaching impact is being generated by REITs, as Mr. Yu Liang mentioned.
Well, for Vanke, we have a comprehensive coverage and also make sure we have the early mover advantage. No matter for our logistics business or for property management or for warehousing, we're always facing a difficulty for the heavy asset investment. We have a development and a reoccurring business being continued to be the two wells to drive us forward. We believe our core competency is still operation and service capacity, but assets investment is also the key. They are gonna to also support our capacity building for operation and the service business. If we're gonna to have a much more enabled environment for withdrawal and especially investment withdrawal, that's also going to be good. Last year, we talked about the Profit Reservoir Strategy.
For the inflow, if it is investment, then the outflow would be the commodity trading REITs as well as other channels. Now, if you have a healthy outflow and then the oxygen and the inflow of the profit reservoir would be greatly improved. This is actually a great boost of the confidence for Vanke. It is also worth mentioning that today here, we're talking about REITs and other channels, they are fully market-oriented. In other words, it can actually help us to further improve the quality of the good assets, for example, in REITs. According to the regulation requirement and other bars, actually REITs can also provide the guidance for our future investment. We are also going to refer to REITs to set our own investment criteria, not only for the business, but also the so-called full license.
A few days ago, we also started to have the social insurance and especially the insurance for the long-term rental housing. You know that from a REITs perspective, it actually provide a very good guidance value for us to set the criteria in assessing our assets. For Vanke, we are proactively welcome this great opportunity. Logistics is something we were being established very soon. Now, at the very beginning, you know that VX Logistics in Zhejiang and in Guangdong, altogether, we have a total management GFA of more than 250,000. The local reform and development commission is already in the document review and approval stage. We are likely to have REITs for VX Logistics. Long-term rental housing is also a segment for REITs. We are also doing the strategic development in Beijing, in Tianjin, in Shenzhen.
Altogether, we have a 60 long-term rental housing project. Altogether, we have 60,000 flats in operation for the long-term rental housing. We have already actually choose some of those assets in our process and making sure that for those long-term rental housing, I know that they are in the civic stage, for example, including them into well-being housing system. I also find out in the mid of March, a commercial REITs also see some positive signal from the central government perspective. For the past seven days, we were working very hard understanding the options being made by the securities and the brokers. We're also going to keep an eye on the new policy from the central government to explore new opportunities from the policy.
On one side, policy is actually exploring the new market and to provide new opportunities, but for tours and for other trading channels and also for Vanke and we're still in the exploration stage. We are still trying new product and a new method to continue to literate our product and the technology and the service. All in all, on one side, we are studying the policy, where on the other side, we also continue to consolidate our high quality asset to further improve our profit reservoir. I believe by so doing, it would become the propellers for our future business development and also make sure we have a balanced business development in the near future. Thank you.
Thanks for Mr. Liu in responding to the question. Coming next, let's welcome another question. Lady on the fourth row, please. A friend from the media.
I'm a journalist from the media. I say that for Onewo actually it released the annual report, but it seems that the stock price is not on the positive trend. Would you like to comment on that? Thank you.
Let's give the floor to Mr. Zhu. Thank you very much.
Thanks for taking Onewo and its performance under your eye. Right after that annual release, I was also reviewing for Onewo to the capital market is more like a newborn baby. In 2008, we used to have a word: be fresh and be naive in just one market. For Onewo as a new entrant into the capital market, we still have to learn the rules of the capital market. There are some very small details.
Last year, during IPO, when the team were announcing my annual salary, I didn't actually notice that. My salary, when I was used to work for the group, has been disclosed to the media. Last year, I asked Mr. Yu, "I need to half my salary while I started to take care of the Onewo business." You know that my salary has never been disclosed before. They actually disclosed my salary. That is a salary when I was working for the group, not for Onewo. That salary number is not accurate. The second day of our annual result is actually the unlock period of the corner store investors. As we are considering how we're gonna define the strategy, we hope we can live up to the robust strategy, leave no much burden to the future, leverage the speedy amortization in order to benefit the market.
If we consider the development, if the amortization has been done in the longer run, maybe in the first day right after the annual result, the data may look much more promising. You can say that everyone was wondering how we're gonna to further improve the understanding. You know, all of a sudden, on the second day, you see that the growth was of the revenue was taking a very good number, but the net profit was not growing that robustly. Today, if you take a look at the financial result from Onewo, if you take a look at its cash flow, its operating net cash flow is still CNY 2.6 billion. Receivables still be a huge number. Operational cash flow actually show how you have a relationship with your customer.
For development business in the past, it was be a key part of the GP margin. For Onewo, it was now on the downtrend. From the customer diversification strategy, now for Onewo, around 67.7% of the projects from the third party, especially Cushman & Wakefield, Vanke Service, and as a CAGR to B business was more than 40%. At the same time, around 85% of the projects are from the third party. You know that, as they continue to grow their business, such customer diversification strategy also gonna to make our balance sheet more robust. If we take a look at the fundamentals, especially excluding the amortization and for commercial and for other properties and facilities, they are all seeking for high quality growth.
You know that for the company, we also attach its great importance to say whether it can actually help to generate the good marginal profit. We were talking about the marginal profit. That's the reason we launched Onewo Town strategy through technical investment and also through the 3 km project densities being further improved. We fundamentally transform our process in order to make sure the property management could actually be the key way for us to keep customer relationship, grow revenue, grow profit, while at the same time to truly generate the marginal cost of being go down as other internet company. For Onewo Town, the strategy last year, our infrastructure investment is CNY 160 million in five months.
The pay or the return is already around 4% GP margin improvement for the whole year. I think such strategy, especially in the year of 2023, we're gonna to have more than 100 Onewo Towns being made and be shipped in 2023. We're gonna to have a more efficiency improvement rather than to seek for the size growth. Thank you.
Thank you very much. Thanks for the question and answer. It's already 10:55 A.M. We'd like to prolong our annual result release. Ladies and gentlemen, now let's welcome the lady in the first row to raise your question, please.
Hi, management team. Just now, we heard from the company, we're going to improve the investment quality and in order to take care of the land and product acquisition.
You know that for tier one and tier two cities, and you can say for some popular projects, and how you're gonna to reduce uncertainties for the product acquisition, what would be the budget for the product acquisition for this year? Which I come from the Economic Observer. You are actually would like to know our strategy for the land resources and the land bank, and also along with our broad acquisition land auction, right? You can't just place a guard of giving you the good fortune, right? Let me just think about the question. How should I respond to you? Talk about investment. Investment, at least for me, I believe safe and development would always be something we need to keep an eye on, especially for the past one year because of the fundamental changes and transformation in the industry.
The balance is now towards safeguarding our safety bottom line. Our investment, we are now having more stringent requirements. In the year of 2022, we continue with the investment continuity. We acquired 36 plots last year, and the total investment is more than CNY 82.6 billion. Altogether, they're gonna to contribute for more than CNY 170 billion. Many in Shanghai, Shenzhen, and Dongguan and those higher tier cities. Till now, 22 projects has plots being converted into projects. It only takes five months for one plot to be converted into projects, which is an ideal number, a great improvement compared with a few years ago. On one side, it's because of the policy support, while at the same time, I mentioned 20% of the GP margin has been further enhanced
It can also help us to make sure that our IRR has been further improved. Till now, all those projects, their total sales contribution is already be a good number. You were asking how should we reduce the uncertainties for the plot acquisition in the market. This is actually more like a bonus question. Me personally, I believe the polarization and market recovery coexist. Different market, they're going to have different stories to be told. In such situation, if you're going to ask us to do more refined pre-investment report, that's key. In the past, we pay more attention to the industrial micros of one city, now we pay more attention to the industrial specific features. That gonna to make our investment safer and more refined, continue to improve on the investment boundary.
While at the same time, the management team, especially our first line management team, will also be taken as the investment criteria to be considered. For example, the team need to have a good management granularity with a well-established team. All those factors will be built into assessment. We also notice many of the investments being focused on the key cities and the key areas. Due to multiple reasons, you know that we are not very likely to get all the plots available because we do see how we're going to find a differentiated investment strategy recently. The precondition is that we need to have the profit, and we need to still maintain a good profit from any new plot we acquire.
We do have a good model to help to run the performance of the project, and that can actually support us to further improve our performance and identify some good project in China. All in all, we're gonna to keep an eye on the market and the policy changes, and making sure we invest in the high quality project and, keep pace of the investment. Investment is to improve the business continuities and the business stabilities. That's all for my answer. Thank you.
Thank you. Thank you for your question. Now let's invite this lady in black glasses in the first row to raise your question.
Good morning. I'm quite care about your business of apartment. My question is to Mr. Zhu. Actually, beginning of last year, you mentioned about your profits target. I know we care about whether you can reach your target you mentioned, and what's your specific action plan you're gonna take? And in the future for the subsidized housing, what's your action for that as well?
Thank you, Ms. Lien, for China Entrepreneurs magazine. You mostly care about the profiting plan for apartment business and action plan.
Well, thank you for your question. I'm the chief partner for PORT.
Last year, we mentioned that this target of breakeven, we won't change our target. We will adopt cost method. We won't do revaluation. Like mentioned by Ms. Zhu Xu, last year, we realized about 3 billion of revenue up by 12%. In 2023, we're gonna move towards to profit to break even onto cost method. I will say two parts. First, about what we're gonna do. First of all is we build our capability centering around the demand. Second, we are budgeting more refined. This business is different. It, you know, holds higher requirements. It's more demanding for capability. You know, for tenants, they have their own demand requirements. So we're gonna do things in five parts. The first is what we're gonna do towards the C-end customer.
For rental, they're mostly faced with young people. Like, people can use our mini program, Red Book, app like that, also official accounts on WeChat. We also feel that this traffic, we also understand how to get young people's attention. That's about focusing on the platform that has traffic. In reality, we have more than 1 million customers on our official account on WeChat. For app, about 2 million customers. Aggregately speaking, about more than 4 million of traffic. Once we got the traffic, once they lived in, moved in, if they don't have good living experience, then it's not successful as well. One thing we've done well is that last year, the renewal rate is 60%. Actually, it's quite challenging, you know, because people...
It's getting more challenging. Last year, the rental, the tenant period is getting challenging. The year before last year, that's about 8.6 months. Last year, that's about seven months. We have to strive and seek their renewal and serve them well. Second, for customers on the B-end, because we provide like concentrated apartments, entering this corporational market, we will provide customized services. We provide its customers for a lot B-end customers for providing apartment for their employees. We will cover their special demands for, like, for example, some will need operation of a property service, et cetera. After one year of hard work, we think the success on the B-end means the true success of the overall BU.
For B-end customers, we will mostly focus, use tools like CRM, et cetera. We will do our work mainly, like concentratedly from headquarter. We will gather a feedback from customers, review the feedback to improve the living experience. If we notice there are special demand, special assets, you can entrust us. I know that, for example, if you have a individualized demand, you come to us, we think we are quite successful. Certainly, we think product is still the core. For port, we did a lot of work from product design, like construction to operation and management. We have built these all-around full lifecycle capability. That has been improved, overall speaking. We are more flexible.
In the past, we were more asset-heavy. In the recent two years, we acquire our assets mostly in a method of asset-light way from like asset-light, especially, for example, in this year. For asset operation then, it will hold higher requirement for capability operating. Fourthly is to serve the owner. Whether this owner of assets is a third party, is the group, we will have to provide a, you know, guaranteed. We will have, provide like a sort of like guaranteed lowest return. We will share this data for the owners, and we will be responsible for the return for the owner of the assets. During this process, the cooperation and relationship between us and the owner is getting better and closer.
Also during the special period, some clauses been amended to take the outside challenge into consideration. We provide this financing, investment, construction, exiting and exiting services. For example, starting from land acquisition, construction, assets operation, transaction. We already built this closed-end loop, service loop, and improved our ability during this process. One of the important factor is that if the asset is getting, you know, values improved, whether their owners is willing to share some part of the return to us. We think based on our service, I think the quality of our service is worth it. The fifth is about operation ability. We've done a lot in this aspect as well to improve it. We build our operation based on the technology tools and platforms.
We utilize a lot of tech tools and improve the efficiency of cleaning, of servicing, and we provide that as a value-added services so that the cost of serving per unit has becoming the lowest during in industry. staff per unit has been also maintained at a reasonable level nowadays. If the staff to unit level is too low, then the efficiency is low. we actually thought a lot about this and we've done a lot, and we take all things into consideration, like a tenant's requirement and the owner's requirement, and then we use, we utilize the technology. that all in the end turn into an improved operational efficiency in and indicators like that.
Also you, as mentioned by Mr. Xiao Liu, like, we've done a palette of REITs. There are like 5,800 units has already been designed and started the negotiation with NFSR. Whether we're gonna transact this asset through REITs or funds, they will provide contribution of a positive profit to the group. We run through the loop already. More importantly, we are quite more confident now for the group, for the BU. If we do our work to the whole process based on the REITs process as required, we won't be concerned, too much concerned. And we will, at the same time, acquire the opportunity to serve the owner in the long run. In the end, under the cost method, we will reach our target of breakeven. That's my answer. Thank you.
Thanks for your question. Now let's invite gentlemen in white T-shirt in, from the media section in the second row.
Good morning. I'm from Wall Street News. About development businesses, last year you mentioned that Vanke has done a lot of reflection in development business. In the past one year, we've seen Vanke has made some changes and adjustment. Are these problems being solved or... there are improvements already for development business? We know that it's being stabilized. When we can see a full recovery?
Thank you for your question. You mostly care about development business. Thank you for your question. Last year, for development business, we've done a lot of reflection, as I've mentioned. We've made some plans. Last year, the development business is centered around, like, safety and stable return and improve return.
I think for the profit, I know it's more, you know, diversed, but it's been improved. We've been improved the ability of operation. We have a table. The table covers, that shows assets that covers an amount more than 100 million that's available for sale. That's about 799 of them. Of that, based on this table, we made some adjustment between volume and prices in every month and every quarter we've set. Finishing the sales target has been key to us. We've done this last year and this year we will continue to doing so.
We made this requirement for all regions and business stores. You have to participate in the market competition by yourself as a, you know, a business owner. You need to compare yourself with the market, with the peers, and so we set our business target based on that. They cover some about cash collection, sales, et cetera. For these indicators, there's gonna be key to evaluate the businesses for different or performance for different, you know, stores or regions. The second. We'll also be able to improve our efficiency. The first one is investment focused, and the second one is product focused. Once you're right on both focuses, you're gonna to run on the right direction and with very good customer management. Also the cost investment could, to some extent, be roughly calculated.
Both focuses actually decides 80% to say whether the business is going to be of greater success. You can say that we have the so-called system efficiency optimization. Rather than working on a single project or a single product, we need to combine it always as a supply chain, making sure that we have a faster turnover. For the batch processing efficiency of the same business continue to be improved. Where at the same time, we also have a set of the demonstration site. Those good practice are being widely promoted or be copied. Thirdly, there's a study's been made recently. You can see that this is actually a study's been made for the idea approach. It's working on vitality, low carbon and new products being presented.
I surely believe once being implemented, it's going to provide a deep impression to the society. The new ideas need a product innovation and coordinated development, so we're gonna to spare more efforts in doing so. For past one year, I do have some theory, especially for the development business. The return, it seems that it's being built upon multiple criteria. More importantly, what selecting the right model along with the capacities being matched to that. We need the special capacity building in other parts. For example, in Shanghai region, in southern part of China, we have to make sure that leaving commercial office building as a complex for integrated operation. Once being made, I surely believe in the near future for our system capacity, we're gonna to make very good growth. Thank you very much.
Let's welcome our next audience to raise a question. Let's welcome the lady in the black shirt, sitting in the third row. Thank you.
Thanks for the management team. My name is Jiang Haoxin from Gordian Securities. I have a question regarding payout ratio. Last year, you used more than CNY 10 billion cash flow for payout, and for this year, it seems that it's going to be a CNY 50 billion. For such a huge influent outflow, how are you going to comment on that? Our payout ratio, is it still around 30% of the of the?
Thank you very much. You will actually pay attention to the payout ratio of the company, right? Let's welcome Madame Zhu to respond to the question.
Well, for the company for the past few years, we have a very stable dividend policy, and this is actually a very good commitment that's being honored to our shareholders. Well, for this year, our payout ratio is 35%. Actually, along with the cash repurchase stock, actually our payout ratio is already more than 40%. Where in the near future, we still would like to leverage the payout to pay back to our shareholders, stabilize it with 35%. In extreme situation, no less than 30%. Right after being listed, our cumulative payout ratio is actually more than CNY 100 billion, 2.8x . You know that for the past few years the payout ratio continued to be around 33.4%. We're going to stabilize this number in the longer run.
Dear investors and friends from the media.
You see that our release has been over around for around 20 minutes. I surely know you may have more questions. Due to the time reason, now here comes to the end of the annual result announcement of Vanke in 2022. If you have any question, please send your email to ir@vanke.com, and we would like to welcome you to raise further questions. Thank you very much. See you next time. Bye-bye.