SOHO China Reports Record High Results

During 2010, stormy conditions prevailed in the residential market. The Chinese government, as well as the municipal governments of cities like Beijing and Shanghai, implemented a series of restrictions on the residential market. In spite of these tightening measures affecting the residential market, SOHO China leveraged its unique business model and visionary strategy to focus on the commercial property sector, delivering robust growth and record high results.

During the year, SOHO China s turnover reached a historic high with a year-over-year surge of 146% to RMB18.215 billion. Net profit increased 10% to RMB3.636 billion, and the net profit of the Company s core businesses soared by 108% to RMB3.512 billion. The gross profit margin stood at 51%, exceeding the industry level.

The Board resolved to recommend a final dividend of RMB14 cents per share for the fiscal year.

In 2010, SOHO China continued to be the top commercial property developer in Beijing and Shanghai achieving a total contract sales amount of RMB 23.81 billion, 74% higher than that of 2009. Contract sales for Galaxy SOHO in Beijing and The Exchange-SOHO in Shanghai amounted to RMB14.637 billion and RMB3.

816 billion respectively, with both developments ranking number one in sales in their respective cities. The contract sales floor area was 394,990 square meters (excluding car parks), 27% greater than that of 2009. The average selling price surged by 38.3% to RMB59, 824 per square meter. Galaxy SOHO accounted for 61.

5% of contract sales of the year. As at 31 December 2010, 81% of Galaxy SOHO was sold at an average price of RMB69,274 per square meter. The contract sales for SOHO Nexus Centre located on Beijing s East Third Ring Road, amounted to RMB3.55 billion as at 31 December 2010.

Following the successful acquisition of The Exchange-SOHO and marking an entrance into the Shanghai property market, SOHO China continued to expand its Shanghai presence. The Company acquired three parcels of land located in Shanghai s prime commercial districts with a total consideration of RMB5.022 billion, including: SOHO on the Bund, Hongqiao SOHO and Fuxinglu SOHO.

In just one and a half years, SOHO China completed four acquisitions and established its presence in four of the most prosperous and easily accessible commercial districts in Shanghai: Nanjing West Road, the Bund, Hongqiao Transportation Hub and Huai Hai Middle Road. SOHO China s expanded footprint has highlighted the Company s profound development in the Shanghai market, as well as its strategic emphasis on the city.

The Exchange-SOHO s robust sales and the Company s smooth development in Shanghai are a testament to the validity of SOHO China s brand and business model.

Mr. Pan Shiyi, Chairman of SOHO China, said, 2010 was a difficult year with high uncertainty for China s property market. Starting in April 2010, the Chinese government introduced a series of austerity measures in the residential market, suppressing the residential housing bubble and steering the real estate industry towards healthy development.

Compared to the adversely effected residential market, the restriction-free commercial property market thrived. The commercial property market is expected to attract a substantial inflow of investment due to relatively low political risk, thus, we are preparing to tap greater opportunities in this market sector.

We have more than RMB20 billion cash on hand, 2011 represents an opportunity for acquisitions.

In 2011, SOHO China will adhere to its commercial property business model of developing properties in prime locations in first-tier cities, as well as selling and holding commercial properties. We will prudently undertake each step of expansion, and enthusiastically embrace every opportunity. Truthfulness, unity and innovation are the core of SOHO China s philosophy in building and developing property towards creating material wealth.

These core values constantly motivate all of SOHO China s pursuits, serving as the standards guiding our every word, action, and decision. The glories of both history and the future are made up by connecting the exhilarating moments of the present. We strongly believe that continuing to devote our focus to each and every step along the way is the key to welcoming an optimally prosperous future with utmost confidence and free of regrets.