SOHO China posts RMB 16.47 mln in gross profit for H1

Sep. 9, 2009 (China Knowledge) - SOHO China Ltd<0410> yesterday announced that its gross profit fell 74% year on year to RMB 16.47 million in the first half of this year from RMB 63.9 million in the first half of last year, and that net profit attributable to shareholders was only RMB 12.92 million, as the firm completed no properties in the first half, sources reported.

The Hong Kong-listed enterprise recorded operating revenue of RMB 71.9 million in the first six months of this year, a decrease of 31% or RMB 32.7 million from RMB 105 million in the first half of last year. As of Jun. 30, the company had RMB 9.48 billion in cash, whereas it had RMB 13.75 billion a year ago.  

SOHO China, however, realized RMB 7.4 billion in contracted sales revenue in the period from January to August. The revenue was mainly generated by three property projects in Beijing. One project, located in Sanlitun, generated contracted sales revenue of RMB 4.15 billion, while another, located in Zhongguancun, generated RMB 910 million and a third, located in Chaoyangmen, generated RMB 1.22 billion.

President Pan Shiyi said that the firm plans to increase its investment in property leasing, and that around 95% of its office buildings are occupied.

SOHO China won the bid for a piece of land in Chaoyang District, Beijing for RMB 4 billion, a price 164.3% higher than the starting price of RMB 1.51 billion, China Knowledge reported earlier.