SOHO CHINA LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
SOHO CHINA LIMITED SOHO 中國有限公司(incorporated in the Cayman Islands with limited liability)
(Stock Code: 410) 2016 INTERIM RESULTS ANNOUNCEMENTAchieved total revenue of approximately RMB727 million during the Period, representing an increase of approximately 85% compared with the same period of 2015; and achieved rental income of approximately RMB700 million during the Period, representing an increase of approximately 60% compared with the same period of 2015.
Gross profit margin for the Period was approximately 77%, further improved from 75% in the same period of 2015.
During the Period, net profit attributable to equity shareholders of the Company were approximately RMB599 million and RMB959 million excluding extraordinary expenses of RMB360 million due to the prepayment of the offshore debt. Net profit attributable to equity shareholders of the Company was approximately RMB135 million in the same period of 2015.
As at 30 June 2016, the Company achieved 85% occupancy for investment properties, including recently completed Hongkou SOHO and Bund SOHO.
SOHO 3Q is the largest shared office space in China. As at 31 July 2016, the Company has opened 16 SOHO 3Q centers in Beijing and Shanghai with 13,603 seats, which is expected to reach approximately 16,000 seats by the end of 2016. At the end of July 2016, SOHO 3Q's average occupancy rate reached approximately 70%.
The Company has made the decision to minimize offshore debt and brought the offshore borrowing from approximately 56% of the total debt as at 31 December 2015 down to approximately 6% at the end of the Period through prepayment of syndicated loans of US$644 million and HK$4,050 million and early redemption of all outstanding senior notes of aggregate principal amount of approximately US$253 million.
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At the end of the Period, funding cost was decreased to 4.4%, and ratio of net debt to
total equity attributable to owners of the Company was approximately 37%.
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On 29 July 2016, the Group entered into an agreement to dispose of SOHO Century
Plaza. The total sales amount (including value-added tax) was approximately RMB3,297 million or RMB76,700 per sq.m., implying a 21% premium over the re- valued book value as at 30 June 2016.
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The Board recommended the declaration and payment of a Special Dividend of
RMB0.19 per share.
The board (the "Board") of directors (the "Directors") of SOHO China Limited (the "Company" or "SOHO China" or "we") announces the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2016 (the "Period"), which have been prepared in accordance with the Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the relevant provisions of the Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").
The 2016 interim results of the Group have been reviewed by the audit committee of the Company (the "Audit Committee") and approved by the Board on 17 August 2016. The interim financial report is unaudited, but has been reviewed by the Company's auditor, PricewaterhouseCoopers.
For the six months ended 30 June 2016, the Group achieved a turnover of approximately RMB727 million, representing an increase of approximately 85% compared with approximately RMB393 million for the same period in 2015. Rental income for the Period amounted to approximately RMB700 million, representing an increase of approximately 60% compared with the same period in 2015. The gross profit margin for the Period was approximately 77%, further improved from approximately 75% in the same period of 2015. During the Period, net profit attributable to equity shareholders of the Company was approximately RMB599 million and RMB959 million excluding extraordinary expenses of RMB360 million due to the prepayment of the offshore debt. Net profit attributable to equity shareholders of the Company was approximately RMB135 million in the same period of 2015.
The Board recommended the declaration and payment of a special dividend of RMB0.19 per share (the "Special Dividend") to the shareholders of the Company (the "Shareholders") whose names appear on the register of members of the Company at close of business on Wednesday, 5 October 2016, being the record date for determination of entitlements to the Special Dividend. The declaration and payment of the Special Dividend is subject to, among other things, Shareholders' approval at the extraordinary general meeting of the Company to be held on Tuesday, 27 September 2016 (the "EGM").
Condensed Consolidated Interim Income Statement For the six months ended 30 June 2016 (Expressed in Renminbi) | |
Note | Unaudited Six months ended 30 June 2016 2015 RMB'000 RMB'000 |
Turnover 3 | 727,093 392,537 |
Cost of sales | (165,156) (97,321) |
Gross profit | 561,937 295,216 |
Valuation gains on investment properties Other gains - net Other revenue and income | 1,135,502 114,139 - 121,914 207,741 156,307 |
Selling expenses | (22,121) (25,355) |
Administrative expenses | (108,619) (87,259) |
Other operating expenses | (111,404) (81,610) |
Profit from operations | 1,663,036 493,352 |
Financial income 4(a) | 71,275 221,226 |
Financial expenses 4(a) | (656,220) (331,599) |
Share of results of joint venture | (4,706) (7,945) |
Profit before taxation 4 | 1,073,385 375,034 |
Income tax 5 | (478,333) (237,077) |
Profit for the period | 595,052 137,957 |
Attributable to: Equity shareholders of the Company | 599,112 134,528 |
Non-controlling interests | (4,060) 3,429 |
Profit for the period | 595,052 137,957 |
Earnings per share (RMB per share) 6 Basic | 0.115 0.026 |
Diluted | 0.115 0.026 |
Condensed Consolidated Interim Balance Sheet As at 30 June 2016 (Expressed in Renminbi) | |||
Note | Unaudited 30 June 2016 RMB'000 | Audited 31 December 2015 RMB'000 | |
Non-current assets Investment properties | 56,865,000 | 55,004,000 | |
Property and equipment | 821,586 | 843,691 | |
Bank deposits | 342,454 | 354,689 | |
Intangible assets | 7,199 | 8,063 | |
Interest in joint ventures | 6,320 | 11,026 | |
Deferred tax assets | 1,481,828 | 1,439,106 | |
Long-term receivables | - | 53,494 | |
Total non-current assets | 59,524,387 | 57,714,069 | |
Current assets Properties under development and completed properties held for sale | 4,307,848 | 4,204,072 | |
Deposits and prepayments | 435,321 | 455,155 | |
Trade and other receivables | 7 | 783,150 | 801,209 |
Bank deposits | 254,464 | 251,600 | |
Cash and cash equivalents | 2,782,679 | 8,405,967 | |
Total current assets | 8,563,462 | 14,118,003 | |
Total assets | 68,087,849 | 71,832,072 | |
Equity and liabilities Equity attributable to owners of the Company | 9 | ||
Share capital | 106,112 | 106,112 | |
Reserves | 35,100,050 | 36,493,759 | |
Non-controlling interests | 1,106,097 | 1,122,657 | |
Total equity | 36,312,259 | 37,722,528 |
SOHO China Ltd. published this content on 17 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 August 2016 05:35:10 UTC.
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