SOHO China : RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2015

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SOHO CHINA LIMITED SOHO 中國有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 410)

RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2015

• Achieved a turnover of the Group of approximately RMB995 million and a gross profit of approximately RMB734 million, with a gross profit margin of approximately 74%.

  
  

• Achieved rental income of the Group of approximately RMB1,052 million, representing an increase of approximately 148% compared to that of 2014. The increase of rental income is mainly due to the higher average occupancy rate of the Wangjing SOHO Tower 3, SOHO Fuxing Plaza, Sky SOHO and Guanghualu SOHO II compared with the same period of last year and the contribution from newly completed Hongkou SOHO and Bund SOHO during the year.

  
  

• Achieved net profit attributable to equity shareholders of the Company of approximately RMB538 million, and core net profit attributable to equity shareholders of the Company (excluding net valuation gains on investment properties) of approximately RMB423 million. Core net profit margin is approximately 42%.

  
  

• As of 31 December 2015, the Group had total cash and bank deposits of approximately RMB9,012 million. Ratio of net debt to total equity of the Company was approximately 24%.

  
  

• The Board recommended the declaration and payment of a special dividend of RMB0.348 per share.

The board (the "Board") of directors (the "Director(s)") of SOHO China Limited (the "Company", "We" or "SOHO China") is pleased to announce the audited consolidated annual results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 December 2015 (the "Year" or the "Period"), which had been prepared in accordance with the Hong Kong Financial Reporting Standards issued by 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 2015 audited consolidated annual results of the Group had been reviewed by the audit committee of the Company and approved by the Board on 8 March 2016.

During the Period, the Group achieved a turnover of approximately RMB995 million, including approximately RMB1,052 million from property leasing, representing an increase of approximately 148% compared with the same period of 2014. The gross profit margin of the Group during the Year was approximately 74%. Net profit attributable to equity shareholders of the Company for the Period was approximately RMB538 million, representing a decrease of approximately 87% compared to the same period of 2014. Core net profit (excluding net valuation gains on investment properties) attributable to equity shareholders of the Company for the Period was approximately RMB423 million, which decreased by approximately 76% from 2014. The core net profit margin during the Period was approximately 42%.

In October 2015, the Board recommended the declaration and payment of a special dividend of RMB0.348 per share to the shareholders of the Company which has been approved by shareholders at the extraordinary general meeting of the Company held on 13 November 2015. The Board recommended the declaration and payment of a special divided of RMB0.348 per share to the shareholders of the Company which is subject to shareholders' approval at the annual general meeting of the company to be held on Wednesday, 18 May 2016 (the "AGM").

Consolidated income statement For the year ended 31 December 2015 (Expressed in Renminbi)
Note	2015	2014
RMB'000	RMB'000
Turnover	995,165	6,098,088
Cost of sales	4(c)	(261,248)	(3,019,934)
Gross profit	733,917	3,078,154
Valuation gains on investment properties	204,053	3,125,477
Other gains - net	4(b)	1,238,003	597,834
Other revenue and income	408,462	261,702
Selling expenses	4(c)	(69,413)	(199,703)
Administrative expenses	4(c)	(250,859)	(278,120)
Other operating expenses	4(c)	(298,545)	(273,971)
Profit from operations	1,965,618	6,311,373
Financial income	4(a)	380,485	707,742
Financial expenses	4(a)	(926,911)	(329,719)
Share of results of joint venture	(11,724)	-
Profit before taxation	4	1,407,468	6,689,396
Income tax	6	(843,996)	(2,537,935)
Profit for the year	563,472	4,151,461
Attributable to: Equity shareholders of the Company	537,632	4,079,831
Non-controlling interests	25,840	71,630
Profit for the year	563,472	4,151,461
Earnings per share (RMB per share) Basic	7	0.104	0.781
Diluted	0.104	0.780

Consolidated balance sheet At 31 December 2015 (Expressed in Renminbi)
Note	2015	2014
RMB'000	RMB'000
Non-current assets Investment properties	55,004,000	52,875,060
Property and equipment	843,691	650,618
Bank deposits	354,689	39,485
Intangible assets	8,063	-
Interest in joint ventures	11,026	4,057,032
Deferred tax assets	1,439,106	1,441,063
Long-term receivables	53,494	24,755
57,714,069	59,088,013
Current assets Properties under development and completed properties held for sale	4,204,072	3,982,897
Deposits and prepayments	455,155	633,569
Trade and other receivables	8	801,209	675,884
Bank deposits	251,600	377,008
Cash and cash equivalents	8,405,967	12,061,801
14,118,003	17,731,159
Total assets	71,832,072	76,819,172
Equity and liabilities Equity attributable to owners of the Company	10
Share capital	106,112	106,112
Reserves	36,493,759	39,257,039
Non-controlling interests	1,122,657	1,096,817
Total equity	37,722,528	40,459,968