Profit Patterns
Investment (sole or joint capital) to land primary development projects:
we rent land or transfer the right of using land to the qualified enterprises or projects which are willing to base in Future Cities. The land to rent and to transfer the using right is about 50% of the total area. Through the primary development, the price of land increases 900% equally.
Investment (sole or joint capital) to the real estate developing projects:
The land that is rented or transferred the right of using is developed and the infrastructures are established. CFC will invest to construct residential buildings, office buildings, stores, industry workshops, traveling properties, entertainment facilities and so on, then sell or rent these properties depending on demands. Meanwhile, CFC may issue REITS on self-holding real properties, and the profitability may increase 100% equally comparing to rent or transfer the right of using land.
Investment (sole or joint capital) to municipal administration infrastructure projects:
CFC is responsible for managing and operating the infrastructure in certain years. According to BT, BOT, BOOT mode, CFC will achieve road and transport project, water supply project, sewage project, recycled water project, electric power project, communication project, heat power project, gas project, CATV project, virescence project, and will has the right of operation and income of all instruments mentioned above, and be permitted to collect various legal fees from the enterprises and residents within the Future City, such as road fee, bridge fee, water fee, sewage fee, electricity fee, gas fee and etc. Moreover American Future City Cooperation will also have the right to transfer the operation right of the establishments mentioned above to other investment entities and get profit from the transfer.
Investment (sole or joint capital) to trading, traveling, entertainment business:
Finishing constructing the stores, traveling and entertainment facilities, CFC may found the sole ownership company or the joint venture company to operating these industries and get profit from them.
Investment (sole or joint capital) to establish private schools and education and sports facilities:
CFC will cooperate with many famous colleges, middle and primary schools and specific technique schools. On one hand, the project can train more talent employees for the enterprises; on the other hand, CFC can get more profit from the education cooperation projects.
Investment (sole or joint capital) to advanced and omni-directional services system:
CFC will offer many kinds business-request services, such as going public, funding, accounting, legality, distribution, e-commerce, management, consulting, and etc.. The services may attract more enterprises; moreover, CFC can also obtain additional service income.
Domestic Economic Regions Profitability Comparison
| Samples | Investment Patterns of Land | Total Investment ($billion ) |
Total Income ($billion) | ROI (ге) | Selling Price ($billion) | Transfer Price ($billion) |
| Yizhuang Economic Region |
Government +government holding companies |
17.8 | 14.8 | 83.15 | 26.68 | 79.7 |
| Yantai High-tech Economic Region | Government controlling |
14 | 5 | 35.71 | ||
| Wenzhou New City | Joint - stock companies | 2 | 4 | 200 | 22 | 65-80 |
| Samples | Total Income ($billion) | Government Profit ($billion) | Enterprise Profit ($billion) | Distribution Proportion | Transfer Rate (ге) |
| Yizhuang Economic Region | 7.23 | 3.9 | 3.33 | 1.171 | 81.72 |
Yantai High-tech Economic Region |
5 | 5 | 0 | 60 | |
| Wenzhou New City | 6 | 2 | 4 | 0.5 | 76.19 |
In view of the tables above, the return of investment (ROI) of land development increases when governments join less or enterprises manage more efficiently. Meanwhile, the transfer rate increases when enterprises earn more proportion in land development. Moreover, the transfer land prices of Yizhang and Wenzhou New City are twice over average level.