SOHO China Announced 2009 Annual Results

SOHO China Announced 2009 Annual Results

Contract Sales Increased 77% to RMB13.68 billion in 2009

Annual Net Profit Increased More than Seven Fold
to Reach RMB3.3 billion

*Revenue hit a record high of RMB7.41 billion representing an increase of 138% YoY

*Net profit increased by 727% YoY to RMB3.30 billion

*The amount of contract sales increased by 77% YoY to over RMB13.68 billion

*Dividend of RMB20 cents per share recommended, doubling that of 2008

*Projects under development involve over RMB40 billion worth of properties, sufficient for 3 years of sales

Hong Kong, 11 March 2010 China s leading commercial real estate developer SOHO China Limited SOHO China or The Company , Stock Code: 410.HK announced today the audited consolidated annual results for the year ending 31 December 2009.

With its successful business model, SOHO China not only withstood the market volatility and financial crisis, but also achieved record high results in 2009. The Company achieved a revenue (excluding sales tax) of RMB7.41 billion, representing substantial growth of 138% as compared with 2008. As a commercial real estate developer, SOHO China has been able to maintain a high profit margin. During the year, gross profit reached RMB3.86 billion with a 52% gross profit margin, increased by three percentage points as compared with 2008. Net profit attributable to shareholders of the Company surged by 727% to RMB3.3 billion. In order to share its high margin, high earnings and high cash position, the Board recommended payment of a dividend of RMB20 cents per share, doubling such amount in 2007 and 2008 and yielding at 5.6% according to closing price on 9 March 2010.

Apart from revenue, SOHO China s contract sales hit a record high in 2009, confirming its number one position in the Beijing property industry. During the year, the Company achieved contract sales amounting to RMB13.68 billion, representing 77% growth as compared with 2008. Contracted Gross Floor Area ( GFA ) was 312,243 square meters (excluding car parks), 97% higher than 2008, and the average selling price ( ASP ) was RMB43,252 per square meter. Sanlitun SOHO sales continued to account for the largest share of contract sales, contributing to RMB8.9 billion in sales, with an ASP of RMB47,000. The accumulated sales amount of Sanlitun SOHO reached RMB16 billion, making this project the sales champion in the Beijing market for two consecutive years in 2008 and 2009 with the highest retail ASP.

2009 was also a harvest year for SOHO China in terms of project acquisition. In accordance with scheduled plans, the Company has acquired property and land in the most prosperous areas of Beijing and Shanghai, including Tiananmen South (Qianmen) Project, Wangjing Plot B29, SOHO Nexus Centre project and The Exchange-SOHO project in Shanghai. The Company acquired these projects with a total consideration of approximately RMB10.6 billion, contributing to RMB45 billion worth of properties, sufficient for the next three years sales.

Among the above acquisitions, SOHO China successfully entered the Shanghai market by acquiring The Exchange-SOHO project at a price of RMB34,000 per square meter. To date, 33% of the project sales are complete with the selling price nearly doubling the cost of acquisition. The occupancy rate also increased to 82.5% from 30% in a few months time. The successful operation of this project verifies the feasibility of the replication of SOHO China s unique business model in Shanghai. Additionally, the sale of The Exchange-SOHO assisted the Company to enrich and broaden its client base. 90% of The Exchange-SOHO s clients are from the Yangtze River Delta region.

The Company s strong sales are continuing in 2010. As of the end of February this year, the Company completed RMB5 billion worth of sales of which RMB2.6 billion were contributed from the SOHO Nexus Centre, RMB1.5 billion from The Exchange-SOHO and RMB0.9 billion from other projects.

SOHO China Chairman Mr. Pan Shiyi said, Urbanization in China will continue to be an overwhelming trend in the next few years as well as the main driver for the economic development of China. It also provides tremendous development potential for the real estate industry. While perceiving great prospects in industrial growth, we also notice that the government will increase the supply of welfare housing and suspend favourable policies for mortgage lending. These changes will lead to vigorous competition in the residential real estate market, but will impose comparatively less impact on the commercial property market in China.

In 2010, we intend to accelerate the sales of existing projects and adopt a balanced strategy to maintain a stable operation while the government is targeting 8% GDP growth and taking on relatively loose monetary policies. Although we have RMB12 billion cash on hand and an additional RMB18 billion in credit facilities, we will remain cautious in acquisitions and continue to develop the Beijing and Shanghai markets, creating returns to shareholders.

About SOHO China
Founded in 1995, SOHO China is the industry leader in developing high-profile branded commercial properties in China s leading cities like Beijing and Shanghai. The company collaborates with internationally-recognized architects, translating their innovative designs into iconic real estate which possesses strong appeal to property investors and the local businesses and customer bases which they serve. On October 8, 2007, SOHO China was successfully listed on the Stock Exchange of Hong Kong as the largest IPO for commercial real estate developers in Asia. The company was named as one of the "Most Admired Companies" in China by Fortune (China) Magazine from 2006 to 2009.