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) RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016Achieved turnover of approximately RMB1,577 million, representing an increase of approximately 58% year over year; and achieved rental income of approximately RMB1,511 million, representing an increase of approximately 44% year over year.
Gross profit margin was approximately 79%, further improved from 74% in 2015.
Achieved net profit attributable to equity shareholders of the Company of approximately RMB910 million, representing an increase of approximately 69% year over year.
The Group achieved approximately 96% average occupancy for all investment properties under lease at the end of 2016.
SOHO 3Q is the largest shared office in Beijing and Shanghai. As at 31 December 2016, the Group has opened 17 SOHO 3Q centers in Beijing and Shanghai, and achieved approximately 85% average occupancy.
To optimize the debt structure and minimize foreign exchange risk, the Group prepaid offshore debts in an aggregate principal value of approximately US$1,420 million, thus reducing the foreign currency borrowing to approximately 7% of the total debt as at 31 December 2016 from approximately 56% as at 31 December 2015.
At the end of 2016, ratio of net debt to equity attributable to owners of the Company was approximately 32%, and funding cost was decreased to approximately 4.4%.
On 29 July 2016, the Group entered into an agreement to dispose of its entire ownership interest in SOHO Century Plaza. The total sales amount (including value-added tax) was approximately RMB3,297 million, implying an approximately 21% premium over the revalued book value as at 30 June 2016.
The Board recommended the declaration and payment of a Special Dividend of RMB0.346 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 2016 (the "Year"), 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 2016 audited consolidated annual results of the Group had been reviewed by the audit committee of the Company and approved by the Board on 23 March 2017.
During the Year, the Group achieved turnover of approximately RMB1,577 million, representing an increase of approximately 58% year over year, and the gross profit margin of the Group was approximately 79%. Net profit attributable to equity shareholders of the Company for the Year was approximately RMB910 million, representing an increase of approximately 69% year over year. During the Year, the Group incurred extraordinary finance expenses of approximately RMB360 million in relation to prepayment of offshore debts.
On 17 August 2016, the Board recommended the declaration and payment of a special dividend of RMB0.19 per share (the "Share(s)") to the shareholders (the "Shareholder(s)") of the Company which has been approved by Shareholders at the extraordinary general meeting of the Company held on 27 September 2016. The Board recommended the declaration and payment of a special divided of RMB0.346 per Share (the "Special Dividend") to the Shareholders which is subject to Shareholders' approval at the annual general meeting of the company to be held on Friday, 26 May 2017 (the "AGM").
CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2016 (Expressed in Renminbi) | ||
Note | Year ended 31 December 2016 2015 RMB'000 RMB'000 | |
Turnover | 3 | 1,577,215 995,165 |
Cost of sales | 4 | (334,717) (261,248) |
Gross profit | 1,242,498 733,917 | |
Valuation gains on investment properties | 1,270,367 204,053 | |
Other gains - net | 5 | 501,348 1,238,003 |
Other revenue and income | 385,007 408,462 | |
Selling expenses | 4 | (62,037) (69,413) |
Administrative expenses | 4 | (264,506) (250,859) |
Other operating expenses | 4 | (369,248) (298,545) |
Operating profit | 2,703,429 1,965,618 | |
Finance income | 6 | 121,195 380,485 |
Finance expenses | 6 | (820,525) (926,911) |
Share of results of joint venture | (4,749) (11,724) | |
Profit before income tax | 1,999,350 1,407,468 | |
Income tax expense | 7 | (1,090,610) (843,996) |
Profit for the year | 908,740 563,472 | |
Profit attributable to: | ||
Owners of the Company | 910,232 537,632 | |
Non-controlling interests | (1,492) 25,840 | |
Profit for the year | 908,740 563,472 | |
Earnings per share (expressed in RMB per share) | 8 | |
Basic earnings per share | 0.175 0.104 | |
Diluted earnings per share | 0.175 0.104 |
CONSOLIDATED BALANCE SHEET At 31 December 2016 (Expressed in Renminbi) | |||
Note | As at 31 2016 RMB'000 | December 2015 RMB'000 | |
Assets Non-current assets Investment properties | 55,087,000 | 55,004,000 | |
Property and equipment | 795,939 | 843,691 | |
Bank deposits | 338,764 | 354,689 | |
Intangible assets | 6,393 | 8,063 | |
Interest in joint ventures | 6,277 | 11,026 | |
Deferred income tax assets | 1,572,908 | 1,439,106 | |
Trade and other receivables | 9 | 286,701 | 53,494 |
Deposits and prepayments | 169,133 | - | |
58,263,115 | 57,714,069 | ||
Current assets Properties under development and completed properties held for sale | 4,226,843 | 4,204,072 | |
Deposits and prepayments | 315,484 | 455,155 | |
Trade and other receivables | 9 | 478,258 | 801,209 |
Bank deposits | 258,100 | 251,600 | |
Cash and cash equivalents | 3,864,045 | 8,405,967 | |
9,142,730 | 14,118,003 | ||
Total assets | 67,405,845 | 71,832,072 | |
Equity and liabilities Equity attributable to owners of the Company | 11 | ||
Share capital | 106,112 | 106,112 | |
Other reserves | 34,432,900 | 36,493,759 | |
34,539,012 | 36,599,871 | ||
Non-controlling interests | 1,108,665 | 1,122,657 | |
Total equity | 35,647,677 | 37,722,528 |
SOHO China Ltd. published this content on 23 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 March 2017 04:55:09 UTC.
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