SOHO China - SOHO China Announces Interim Results for 2010

[For immediate release]

SOHO China Announces Interim Results for 2010

Contract Sales for January to July 2010
Reached RMB13.6 Billion

Meeting 75% of Full-Year Sales Target

The amount of contract sales for January to July 2010 reached RMB13.57 billion, meeting the full year amount for 2009
Interim revenue hit a record high of RMB8.66 billion, exceeding the full year revenue for 2009
Interim net profit increased to RMB1.72 billion
The Board declared an interim dividend of RMB 0.12 per share

(Hong Kong, 25 August 2010) China s leading commercial real estate developer SOHO China Limited SOHO China or the Company , Stock Code: 410.HK announced today the unaudited consolidated interim results ending 30 June 2010. Owing to its business model, SOHO China reported outstanding results amid the overall depressed property market.

The Company s revenue (excluding sales tax) for the first half of 2010 surged 119 times to a record high of RMB8.66 billion, exceeding revenue for the entire 2009 year. The Company s net profit increased 136 times to RMB1.72 billion. From January to July this year, the amount of contract sales reached RMB13.57 billion. Galaxy SOHO, a new landmark project in Beijing, accounted for the largest share of contract sales, contributing RMB5.96 billion in total sales. SOHO Nexus Centre and The Exchange-SOHO, SOHO China s first Shanghai project, contributed RMB3.35 billion and RMB2.2 billion in contract sales respectively. In order to share the extraordinary performance with shareholders, the Board declared an interim dividend of RMB 0.12 per share for the six months ended 30 June 2010.

These brilliant interim results reflect the strengths of SOHO China s unique business model and innovative commercial properties as well as the success of its strategic development in Beijing and Shanghai. Following the successful acquisition, leasing and sales of The Exchange-SOHO, the Company proceeded to acquire two parcels of premium land in the Shanghai market. The acquisition of majority equity interest in the Bund 204 Land for a consideration of RMB2.25 billion in June was followed by the successful RMB1.56 billion bid for the Linkong Plot 15 Land in August. These steps in Shanghai completed the Company s expansion into Nanjing West Road, the Bund and the area around Hongqiao transportation hub, paving the way for long-term expansion in Shanghai.

The newly acquired Bund 204 Land is the only newly-constructed project on the Bund in the past 60 years and will also be the last new development project there. As the area is home to high-end financial, commercial and dining brands from around the world, it possesses huge potential for value appreciation. The Linkong Plot 15 Land is the gate to the world s largest transportation hub, the Shanghai Hongqiao transportation hub. As the convergence point connecting China s most affluent Yangtze Delta region with modern high speed transportation, this will be Shanghai s most vibrant area of growth in the future. The construction of the two projects is expected to begin in 2011 with completion slated for 2013. SOHO China s three projects in Shanghai, together with a number of other projects both completed and under development in Beijing such as Galaxy SOHO, Wangjing SOHO and Guanghualu SOHO II, constitute RMB50 billion worth of properties, sufficient to maintain sales for the next three years and enhance the Company s dynamic long term growth.

Facing the existing property market, SOHO China believes the turnover and prices in China s residential real estate market will both drop within this year. Chinese government initiatives to tighten loans for land development and accelerate the processing of idle lands in the hands of developers as well as soon to be launched local government policies to monitor developer s pre-sale proceeds are all factors that will restrict sources of funds for developers. According to the National Statistic Bureau, investment in the China property market grew 38.1% in the first half of 2010, exhausting a large amount of developer funds while the increase in construction area in the market has increased housing supply. Low income housing will be a relatively large contributor to the supply of flats in the second half of the year, affecting residential market prices. However, as SOHO China is established as a commercial property developer, its market is well distinguished from the residential market. Over the past five years, especially after a series of regulatory property market policies were launched in March this year, the aim of policy has been to control the increase of residential property prices. While these policies have targeted second or the third home and mortgages, none have been related to commercial properties or office space. Policies targeting commercial property and office space are not expected to be launched in the future and SOHO China continues to see huge potential in commercial properties in large international cities like Beijing and Shanghai.

At the same time, SOHO China recognizes that the current real estate market in major mainland cities is saturated, and in this regard emphasizes the strengths of SOHO China s innovative commercial properties. In any mature industry there exists the situation of a surplus of mediocre products and simultaneous high demand for innovative products, the future Chinese real estate market will be no exception.

Pan Shiyi, chairman of SOHO China believes that, the rapid development of modern technology has brought about unprecedented changes in people s work style, lifestyle, and to society as a whole. These changes necessitate changes in architecture. Traditional architecture will become obsolete and excess properties in the future. The Company will consistently adopt the most groundbreaking technologies in its planning and design to develop properties that accommodate parametric, multidimensional lifestyles and suit the demands of future. SOHO China has always insisted on innovation, and has accumulated a great deal of experience in innovation and forward-looking thinking. In design and planning, the Company will continue to adopt the world s latest ideas and building technology to develop properties that meet demands of the future.

Mr. Pan stressed that SOHO China will continue to uphold the Company s successful business model: developing commercial properties in the most prosperous areas of Beijing and Shanghai and providing the market with innovative commercial properties. Furthermore, Mr. Pan affirms that SOHO China is in line with the target sales amount of RMB18 billion announced previously this year. The amount invested in project acquisition remains close to that of last year.

About SOHO China
Founded in 1995, 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. Presently the largest real estate developer in Beijing, 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.

Media Inquiries:

Beijing
SOHO China Limited
Ms. Chunlei Wang Tel: (86) 10 5878 8326 Email: wangchunlei@sohochina.com

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