Outstanding Growth of Leasing Business, Occupancy hit 96%, Turnover up 58%, Net Profit up 69%

Turnover of approximately RMB 1,577 million, up 58% YoY; Gross profit of approximately RMB 1,242 million, up 69% YoY, Gross profit margin of approximately 79%; Net profit of approximately RMB 910 million, up 69% YoY;

Rental income of approximately RMB 1,511 million, Up 44% YoY; Overall rental occupancy reached 96%;

SOHO 3Q has become the largest provider of shared office in Beijing and Shanghai with over 16,000 seats. As at the end of 2016, SOHO 3Q occupancy reached 85%;

As at the end of 2016, ratio of net debt to total equity attributable to owners of Company was approximately 32%, and funding cost was decreased to approximately 4.4%.

The Board recommends the payment of a special dividend of RMB0.346 per share; total dividend for the year will be RMB0.536 per share, representing 14% dividend yield.

(2017 March 23, Hong Kong) SOHO China Ltd. (Hereafter referred to as “SOHO China” or the “Company”, Stock Code: HK410) announces today the audited annual financial results for 2016.

During the period, SOHO China realized turnover of approximately RMB 1,577 million, up 58% year on year, with gross profit of RMB 1,242 million, up 69% year on year, gross profit margin of 79%; Net profit of RMB 910 million, up 69% year on year; Rental income of RMB 1,511 million, up 44% year on year, with rental occupancy reaching 96%; Ratio of net debt to total equity attributable to owners of Company was approximately 32%, and funding cost was decreased to approximately 4.4%; The Board recommends the payment of a special dividend of RMB0.346 per share, and total dividend for the year will be RMB0.536 per share, representing 14% dividend yield.

In 2016, the world entered a period of economic uncertainty, with the China market also being thrust into the global economic slowdown. Nonetheless, Beijing and Shanghai’s office market rental rates have remained stable, with the vacancy rate rising only slightly. With a wealth of experience of leasing prime office and providing top quality property management services, SOHO China has continued to outperform and achieve growth with overall rental occupancy reaching 96%. In particular, two projects completed at the end of 2015, Bund SOHO and Hongkou SOHO, achieved outstanding results with occupancy reaching 96% and 95% respectively.

Bund SOHO

In 2016, SOHO China achieved rental income of RMB 1,511 million, up 44% year on year. It has been four years the Company announced the strategic transition in business model, and since the 2012 announcement, SOHO China’s rental income has grown ten fold. Looking forward, the Company’s rental income will continue to grow. On one hand, mature properties will remain fully leased. On the other hand, newly completed projects will also contribute to rental income. At the end of 2016, SOHO Tianshan Plaza reached completion and the project is already starting to be leased out, with the expectation of reaching 90% occupancy in a year. The Company still has two projects under construction at present, Leeza SOHO and Gubei SOHO, both of which are expected to reach completion in late 2018. By then, SOHO China will be holding quality offices in prime locations of Beijing and Shanghai with a total GFA of 1.7 million square meters.

SOHO Tianshan Plaza

Outstanding property management is not limited to improving office quality and occupancy, but is about improving the overall value of the property. As a new model for office property management, SOHO China Property Management boats the use of leading technology, standardized systems, platform management and absolute transparency. As at the end of 2016, SOHO China Property Management covered 24 properties, nearly 4 million square meter of prime location office properties in Beijing and Shanghai.

SOHO China pioneered the introduction of the central air filtration systems in commercial buildings, purifying indoor PM2.5 contaminants to provide healthy clean air to tenants. SOHO China property management has also taken the lead in employing BIM (Building Information Management) technology to create an energy system, saving 58.49 million kWh in 2016, outperforming the national energy saving level by 15.8%. Additionally, SOHO China Property Management has established a facilities management platform, managing the operation and maintenance of 255,000 equipment and facilities to guarantee the efficient and reliable operation of office building equipment.

Indoor PM2.5 monitoring at Wangjing SOHO

After two years of development, SOHO 3Q has become the largest shared office provider in Beijing and Shanghai. There are currently 17 centers in core locations in Beijing and Shanghai, with two more centers under construction, totaling more than 16,000 seats. As at the end of 2016, SOHO 3Q’s average occupancy reached 85%. SOHO 3Q tenants are extremely diverse, hailing from IT, media, education, finance, and other industries. Tenants include Airbnb, Sina, Little Red Book and Shou Qi Group. SOHO 3Q has become a vibrant community, with thousands of community activities being organized each year.

Guanghualu SOHO 3Q

SOHO China Chairman Pan Shiyi says: "The past year’s performance is a part of SOHO China’s transition. Adhering to our objectives and achieving a solid landing, this year was another step on the path towards the Company's long-term strategic development. Going forward, we will continue to focus on strengthening office leasing, property management, and SOHO 3Q. We are committed the continuous pursuit of innovation and quality, and providing customers with optimal service. ”

Further questions, please contact:
Xiaoya Wang
Tel: (86)10 5878 8483
Email: wangxiaoya@sohochina.com

Linran Yang
Tel: (86) 10 5878 8598
Email: yanglinran@sohochina.com