Financial Performance - The group achieved operating revenue of approximately RMB 822 million during the period, despite ongoing pressure in the office and retail leasing market due to a weak macroeconomic environment[2]. - The total revenue for the period was approximately RMB 822 million, a decrease of about 8% compared to RMB 896 million in the same period of 2022[39]. - Gross profit for the period was approximately RMB 678 million, down about 9% from RMB 742 million in the same period of 2022[39]. - The gross profit margin remained stable at approximately 83% during the period[2]. - The gross profit margin for leasing business remained stable at approximately 83%[39]. - The total comprehensive income for the period was RMB 33.038 million, a decrease from RMB 223.955 million in the same period of 2022[5]. - The group reported a net profit of RMB 14.7 million for the period, down from RMB 193.651 million in the same period of 2022[4]. - The net profit attributable to the shareholders of the parent company, excluding changes in the valuation of investment properties and one-off tax and administrative expenses, was approximately RMB 207 million[2]. - The basic and diluted earnings per share for the period were both RMB 0.00, compared to RMB 0.04 for the same period in 2022[3]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were RMB 13,613,000, a significant decrease from RMB 190,568,000 for the same period in 2022[19]. Assets and Liabilities - The total assets as of June 30, 2023, amounted to RMB 68.921 billion, compared to RMB 68.847 billion as of December 31, 2022[6]. - The total liabilities were RMB 31.519 billion as of June 30, 2023, slightly increased from RMB 31.479 billion at the end of 2022[7]. - As of June 30, 2023, the group's net asset liability ratio was approximately 42%, with an average borrowing cost of about 4.7%[2]. - The group's unrestricted cash and cash equivalents were RMB 627,252,000 as of June 30, 2023[49]. - As of June 30, 2023, the group's current liabilities exceeded its current assets by RMB 7,170,391,000[49]. - The total bank borrowings and other loans reached RMB 16,047,348,000, including a current portion of RMB 5,041,723,000[8]. - The company’s total borrowings decreased from RMB 16,729,841,000 at the end of 2022 to RMB 15,971,013,000 as of June 30, 2023, reflecting a repayment of RMB 148,276,000 during the period[23]. - The group has unpaid land appreciation tax and related penalties totaling RMB 1,986,243,000 as of June 30, 2023[9]. - The group has reclassified RMB 4,232,000,000 of bank borrowings as current liabilities due to potential cross-default risks[9]. - The company has a potential cross-default risk on bank loans totaling RMB 4,232,000,000 due to overdue land value-added tax[24]. Operational Highlights - As of June 30, 2023, the average occupancy rate of the group's investment properties stabilized and recovered to approximately 79%[2]. - Rental income for the six months ended June 30, 2023, was RMB 819,127,000, a decrease of 8.6% from RMB 896,040,000 for the same period in 2022[15]. - The rental income for the Beijing Qianmen project was RMB 34.652 million with a leasing rate of 62%, up from 48% in the previous year[30]. - The leasing rate for Wangjing SOHO improved to 64% in 2023 from 62% in 2022, with rental income of RMB 113.667 million[30]. - The Shanghai Bund SOHO project reported a leasing rate of 95% in 2023, significantly up from 80% in 2022, with rental income of RMB 94.172 million[30]. - In the first half of 2023, Beijing's Grade A office net absorption dropped to -5,000 square meters, while Shanghai's was only 168,000 square meters, significantly lower than historical averages[28]. - The average vacancy rates for Grade A offices in Beijing and Shanghai reached historical peaks of 16.9% and 18.6%, respectively, the highest since 2011[28]. - The company is focusing on providing high-quality services to enhance asset value and core competitiveness amid weak demand and strong supply pressures[28]. - The company plans to enhance overall property leasing rates and operational cash flow stability in the second half of 2023 to better face external challenges[29]. Financial Management and Strategy - The management has initiated discussions with tax authorities regarding payment plans for outstanding taxes to mitigate further negative impacts[10]. - A supplementary agreement was signed with a bank to extend the repayment period for borrowings amounting to RMB 359,572,000[10]. - The group aims to control administrative costs and reduce capital expenditures to improve operational cash flow[10]. - The board believes that the group will have sufficient working capital to meet its operational and financial obligations over the next 12 months[11]. - Financial income increased to RMB 2,479,000 from RMB 1,979,000, while financial expenses decreased to RMB 386,724,000 from RMB 420,703,000, resulting in a net improvement in financial performance[16]. - Current income tax expense for the period was RMB 27,391,000, up from RMB 24,260,000 in the previous year, while deferred tax expense decreased to RMB 58,506,000 from RMB 94,966,000[17]. - Income tax expenses for the period were approximately RMB 91 million, down from RMB 119 million in the same period of 2022[42]. Compliance and Governance - The company has adopted revised accounting standards effective from January 1, 2023, with no significant impact on its financial performance[13]. - The company has adhered to all applicable accounting standards and regulations, ensuring sufficient disclosure[48]. - There is a significant uncertainty regarding the company's ability to continue as a going concern due to the financial situation[49]. - The interim financial results have been published on the Hong Kong Stock Exchange and the company's website[49]. - The board approved the unaudited interim results for the six months ended June 30, 2023, on August 17, 2023[48]. - The company has not declared any interim dividends for the period[45]. Social Responsibility and Sustainability - The company has committed to continuous investment in social responsibility projects, including the establishment of China's first zero-carbon "Yangzheng Library" in April 2023[29]. - The company achieved a 24.2% energy saving rate across 24 managed properties, resulting in a carbon reduction of 37,000 tons[29]. - The company anticipates that government policies to promote economic development will gradually revive market activity, laying the foundation for the recovery of the office market in the second half of 2023[29].

Financial Performance - SOHO China achieved a revenue of approximately RMB 1.775 billion in 2022, representing a growth of about 1.9% compared to 2021[5]. - The gross profit for SOHO China in 2022 was approximately RMB 1.438 billion, reflecting a growth of 2.7% year-on-year[5]. - The total rental income for the year was approximately RMB 1.775 billion, representing a year-on-year increase of about 1.9% from RMB 1.742 billion in 2021[30]. - Gross profit for the year was approximately RMB 1.438 billion, up about 2.7% from RMB 1.400 billion in 2021, with a gross margin of approximately 81% compared to 80% in the previous year[30]. - The group reported a revenue of RMB 1,775,090,000 for 2022, a slight increase from RMB 1,741,739,000 in 2021, representing a growth of approximately 1.9%[42]. - The group achieved a profit before tax of RMB 507,821,000 in 2022, compared to RMB 264,792,000 in 2021, indicating a significant increase of approximately 92%[42]. - The net profit attributable to shareholders was RMB 61,208,000 in 2022, recovering from a loss of RMB 131,098,000 in 2021[42]. - The company reported a net profit of RMB 64,505 thousand for 2022, a significant recovery from a net loss of RMB 123,952 thousand in 2021[153]. - Basic earnings per share for 2022 was RMB 0.01, compared to a loss per share of RMB 0.03 in the previous year[152]. Assets and Liabilities - As of December 31, 2022, the total borrowings of the group amounted to approximately RMB 16.185 billion, with a net debt-to-equity ratio of approximately 43%[34]. - The total non-current assets stood at RMB 65,940,695,000 as of December 31, 2022, showing a marginal increase from RMB 65,824,792,000 in 2021[43]. - Current assets decreased to RMB 2,906,414,000 in 2022 from RMB 4,621,723,000 in 2021, reflecting a decline of approximately 37%[43]. - The group’s total liabilities increased significantly, with current liabilities rising to RMB 18,583,179,000 in 2022 from RMB 6,960,706,000 in 2021[43]. - The total equity attributable to the owners of the company was RMB 36,440,619,000 as of December 31, 2022, slightly up from RMB 36,174,144,000 in 2021[43]. - The group reported overdue borrowings totaling RMB 59,682,000, with a total outstanding amount of RMB 668,315,000[121]. - As of December 31, 2022, the group's net current liabilities amounted to RMB 15,676,765,000[121]. - The group's bank borrowings and other borrowings totaled RMB 16,184,982,000, including current borrowings of RMB 13,453,099,000[121]. - The group had unrestricted cash and cash equivalents of RMB 345,725,000 as of December 31, 2022[147]. - The group experienced a default on borrowings totaling RMB 59,682,000 due to overdue payments, triggering cross-default on other borrowings amounting to RMB 6,551,258,000[147]. Corporate Governance - The board has decided not to declare a final dividend for the year, maintaining the same policy as in 2021[40]. - The company has adopted high standards of corporate governance, believing it is crucial for development and protecting shareholder interests[89]. - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[91]. - The company’s independent non-executive directors are confirmed to be independent and provide independent opinions on strategy and risk management[94]. - The audit committee is responsible for recommending the appointment, reappointment, and removal of external auditors, ensuring their independence and effectiveness[101]. - The company has implemented a strict insider trading policy to regulate employees with access to insider information[90]. - The board meets at least four times a year, ensuring timely communication and decision-making[91]. - The company has established a policy to avoid potential conflicts of interest, requiring directors with significant interests in transactions to abstain from voting[99]. - The company has implemented internal audit and control functions across its business operations to monitor financial reporting and risk management systems[103]. Environmental, Social, and Governance (ESG) Initiatives - SOHO China was upgraded to an AA rating by MSCI for its ESG efforts, the highest rating for a real estate company in mainland China[5]. - The company emphasizes its commitment to social responsibility through various charitable initiatives, including building kindergartens and libraries in northwest China[50]. - The Environment, Social, and Governance Committee held one meeting this year, focusing on governance structure and exceeding annual carbon reduction targets[119]. - The group made charitable donations of approximately RMB 15,000,000 in the current year, compared to RMB 10,010,000 in 2021[81]. - SOHO China's total energy consumption savings compared to national standards reached 135 million kWh, with an energy-saving rate of 34% and a carbon reduction of 110,000 tons[5]. Market and Strategic Outlook - The company is optimistic about the outlook for 2023 and plans to continue improving service quality and property management[6]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[57]. - The company aims to leverage its strong brand and market position to explore new business opportunities and technological advancements in property development[48]. - The company has completed two strategic acquisitions in the past year, enhancing its competitive position in the technology sector[60]. - The company is investing approximately $50 million in research and development for new technologies aimed at enhancing platform capabilities[58]. Employee and Management Information - The company organized over 1,500 professional training sessions in 2022 to enhance employee skills[6]. - The group employed a total of 1,721 employees as of December 31, 2022, including 1,555 in property management[38]. - Total annual compensation for senior management was RMB 7,227,000, with the highest individual compensation being RMB 4,156,000 for Pan Shiyi[62]. - The company provides comprehensive training for newly appointed directors to ensure understanding of business operations and regulatory responsibilities[143]. Risk Management - The group has established a clear organizational structure with defined responsibilities and reporting procedures for risk management and internal control[130]. - The audit committee reviews the effectiveness of the group's risk management and internal control systems at least annually[130]. - The group employs a risk control-based audit approach, with the internal audit department reporting its findings to the audit committee regularly[133]. - The group has implemented various policies and procedures to enhance the effectiveness of its risk management and internal control systems[134]. - The risk management framework follows the "three lines of defense" model to guide the group's risk management activities[132]. Financial Reporting and Compliance - The consolidated financial statements for the year have been audited by PricewaterhouseCoopers[88]. - The independent auditor was unable to express an opinion on the consolidated financial statements due to multiple uncertainties[146]. - The company confirmed compliance with applicable disclosure requirements regarding related party transactions as per Listing Rules Chapter 14A[82]. - The company has not reported any significant changes in shareholdings among directors or senior management as of December 31, 2022[72].

Financial Performance - The company achieved operating revenue of approximately RMB 1.775 billion for the year ended December 31, 2022, representing a stable growth of about 1.9% compared to RMB 1.742 billion in 2021[3]. - The gross profit margin for the year was approximately 81%, an increase from 80% in 2021[3]. - The net profit attributable to equity shareholders for the year was approximately RMB 61.21 million, a significant recovery from a loss of RMB 131.1 million in 2021[5]. - The company reported a pre-tax profit of RMB 507.82 million for the year, compared to RMB 264.79 million in 2021[5]. - The company recorded a total comprehensive income of RMB 268.76 million for the year, compared to a loss of RMB 173.89 million in 2021[6]. - The basic earnings per share for the year was RMB 0.01, recovering from a loss of RMB 0.03 per share in 2021[5]. - The group's operating revenue for 2022 was RMB 1,775,090,000, a slight increase from RMB 1,741,739,000 in 2021, primarily driven by rental income of RMB 1,744,538,000[16]. - The group reported a net profit attributable to shareholders of RMB 61,208,000 for 2022, compared to a net loss of RMB 131,098,000 in 2021, resulting in basic and diluted earnings per share of RMB 0.01[19][20]. - Gross profit for the year was approximately RMB 1.438 billion, an increase of about 2.7% from RMB 1.400 billion in 2021[43]. Assets and Liabilities - The total assets of the company as of December 31, 2022, were RMB 68.85 billion, a decrease from RMB 70.45 billion in 2021[8]. - The company's total liabilities decreased to RMB 31.48 billion as of December 31, 2022, down from RMB 33.35 billion in 2021[8]. - The net asset liability ratio was approximately 43% as of December 31, 2022, with an average borrowing cost of about 4.7%[3]. - As of December 31, 2022, the group's net current liabilities amounted to RMB 15,676,765,000[9]. - The group's bank borrowings and other borrowings totaled RMB 16,184,982,000, with RMB 13,453,099,000 classified as current liabilities[9]. - The total amount of accounts receivable as of December 31, 2022, was RMB 505,663,000, an increase from RMB 253,726,000 in 2021, with overdue amounts rising to RMB 204,039,000[22][23]. - The group's total liabilities decreased to RMB 16,184,982,000 in 2022 from RMB 17,997,608,000 in 2021, indicating improved financial stability[25]. - As of December 31, 2022, the total borrowings amounted to approximately RMB 16.185 billion, with RMB 15.827 billion secured against investment properties[47]. Tax and Financial Obligations - A tax payment notice for RMB 1,733,334,000 related to the Wangjing SOHO project was issued, with RMB 1,851,271,000 still outstanding as of December 31, 2022[10]. - The group incurred current income tax expenses of RMB 45,187,000 for corporate income tax and RMB 213,804,000 for land appreciation tax in 2022[18]. - The group faced a tax payment notice for land value-added tax amounting to RMB 1.73 billion related to the Wangjing SOHO project, with RMB 1.85 billion still outstanding as of December 31, 2022[59]. - The group reported cross-defaults on loans totaling RMB 2.38 billion due to unpaid land value-added tax and related penalties[59]. Operational Challenges and Strategies - The average occupancy rate of the group's investment properties decreased to approximately 76% as of December 31, 2022, due to the impact of COVID-19 and market sentiment[3]. - The group has initiated plans to sell several commercial properties to alleviate cash flow pressure[11]. - Management is actively negotiating with financial institutions for the restructuring of existing borrowings and new financing[12]. - The group aims to control administrative costs and reduce capital expenditures to improve operational cash flow[12]. - The group is facing significant uncertainty regarding its ability to continue as a going concern due to potential immediate repayment demands from lenders[12]. - The group has reclassified all borrowings due after December 31, 2023, as current liabilities due to potential immediate repayment requests[11]. - The group is actively implementing plans to improve liquidity and financial conditions, including restructuring existing loans[59]. - Due to multiple uncertainties and potential interactions, the company cannot form an opinion on the appropriateness of the going concern basis[60]. - If the company fails to implement the aforementioned plans and measures, it may not be able to continue operating on a going concern basis, necessitating adjustments to asset values[60]. Employee and Corporate Governance - The group had a total employee count of 1,722 as of December 31, 2022, including 1,555 employees in property management[50]. - The company received an AA rating from MSCI for its environmental, social, and governance practices, the highest rating for real estate companies in mainland China[32]. - The company did not declare a final dividend for the year, consistent with the previous year[52]. Miscellaneous - The group has not adopted any new accounting standards that would have a significant impact on its financial performance or position in the foreseeable future[15]. - There were no significant post-reporting date events that would impact the group[54]. - The group has not engaged in any purchase, sale, or redemption of its listed securities during the year[54].

Occupancy and Rental Performance - As of December 31, 2021, SOHO China's average occupancy rate reached 85%, with Shanghai Gubei SOHO achieving full occupancy for the first time[5]. - Beijing Lize SOHO's occupancy rate reached 80%, the highest level since the project's market entry[5]. - The rental income for major investment properties in Shanghai included 98% occupancy for SOHO Fuxing Plaza and 91% for Bund SOHO[9]. Financial Performance - The total rental income for the year was approximately RMB 1,742 million, representing a year-on-year increase of about 13% from RMB 1,538 million in 2020[38]. - The gross profit for the year was approximately RMB 1,400 million, remaining relatively stable compared to 2020[38]. - The rental business gross margin increased to approximately 80% from 76% in 2020[38]. - The investment property valuation gain for the year was approximately RMB 289 million, down from RMB 1,100 million in 2020[39]. - The group reported a net loss of RMB 123,952 million for the year 2021, compared to a profit of RMB 543,466 million in 2020[55]. - Total revenue for the year ended December 31, 2021, was RMB 1,741,739,000, a decrease of 20.5% from RMB 2,191,637,000 in 2020[178]. - The operating profit decreased significantly to RMB 1,123,745,000 from RMB 2,446,035,000, a decline of 54.1%[178]. - Basic and diluted loss per share was RMB (0.03), compared to earnings of RMB 0.10 per share in the previous year[178]. Administrative and Operating Expenses - Administrative expenses for the year were approximately RMB 195 million, a decrease from RMB 214 million in 2020[40]. - Other operating expenses increased to approximately RMB 838 million from RMB 258 million in 2020, primarily due to one-time tax expenses of approximately RMB 439 million[41]. - The income tax expense for the year was approximately RMB 389 million, a decrease from RMB 1,057 million in 2020, mainly due to a reduction in pre-tax profit[43]. Corporate Governance and Management - The company has established an ESG committee to improve governance structure and promote sustainable development initiatives[6]. - The company’s board includes independent non-executive directors, ensuring governance and oversight[59]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors[110]. - The company has adopted high standards of corporate governance, which are deemed crucial for its development and shareholder protection[107]. Environmental and Social Responsibility - In 2021, SOHO China managed to achieve energy savings of 116 million kWh, equivalent to a carbon reduction of 96,000 tons, with an energy-saving rate of 28.9%[6]. - The company aims to construct a zero-carbon library in Tianshui, which will be the first of its kind in China upon completion[6]. - The company has committed RMB 30 million to establish a bilingual kindergarten in Northwest China, with an annual investment of RMB 3 million[61]. - The company emphasizes environmental issues and has raised public awareness about air pollution in China[61]. Risk Management and Internal Controls - The group has established a clear organizational structure for risk management and internal control, with regular reviews conducted by the Audit Committee[139]. - The internal audit department adopts a risk-based audit approach to assess the effectiveness of internal controls[141]. - The audit committee is responsible for reviewing the effectiveness of the company's financial reporting system, risk management, and internal control systems[121]. Future Outlook and Strategic Initiatives - The rental market in Beijing and Shanghai is expected to face significant supply challenges in 2022, impacting leasing business dynamics[7]. - SOHO China plans to continue enhancing asset management and property services to create additional value for clients[7]. - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 20% to $1.44 billion[68]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[69]. Shareholder and Equity Information - As of December 31, 2021, Pan Shiyi and Pan Zhangxin each held 3,324,100,000 shares, representing 63.93% of the company's total shares[83]. - The total equity attributable to the owners of the company was RMB 36,174,144 million as of December 31, 2021[56]. - The company maintained at least 25% of its issued share capital held by the public as of the report date[101]. Charitable Contributions - The company donated RMB 10 million to support disaster recovery efforts in Zhengzhou and another RMB 10 million for epidemic prevention in Tianshui[7]. - The group made charitable donations of approximately RMB 10,010,000 during the year[97].

Occupancy and Rental Performance - In the first half of 2021, SOHO China's average occupancy rate for stable investment properties increased to 90%, up from 78% in the same period of 2020[6] - The rental income from the leasing portfolio showed significant recovery, with key projects like Wangjing SOHO achieving a rental rate of 95% compared to 73% in the previous year[9] - The total leasable area of Wangjing SOHO is approximately 510,000 square meters, with a current rental area of about 133,766 square meters[11] - The total leasable area of Lize SOHO is approximately 135,637 square meters, with a current occupancy rate of 74%[14] - The total leasable area of the SOHO Tianshan Plaza is approximately 97,681 square meters, with office space of about 74,428 square meters[17] - The total leasable area of the Bund SOHO is approximately 72,006 square meters, with office space of about 50,347 square meters[16] - The group achieved rental income of approximately RMB 805 million, a year-on-year increase of about 3% compared to RMB 782 million in the same period of 2020[19] - The group's rental income for the six months ended June 30, 2021, was RMB 804,992,000, an increase from RMB 781,568,000 for the same period in 2020, representing a growth of approximately 2.3%[74] Financial Performance - Gross profit for the period was approximately RMB 659 million, a decrease of about 18% from RMB 799 million in the same period of 2020[20] - Net profit for the period was approximately RMB 343 million, an increase of about 67% compared to RMB 205 million in the same period of 2020[20] - Total revenue for the six months ended June 30, 2021, was RMB 804,992,000, an increase from RMB 781,568,000 in the same period of 2020, representing a growth of 2.0%[50] - Operating profit for the period was RMB 914,968,000, compared to RMB 769,095,000 in the previous year, reflecting an increase of 18.9%[50] - Net profit attributable to shareholders for the period was RMB 340,300,000, up from RMB 203,872,000 in 2020, marking a significant increase of 67.0%[50] - Basic earnings per share for the period was RMB 0.07, compared to RMB 0.04 in the same period last year, indicating a 75.0% increase[50] - The company reported a total comprehensive income of RMB 316,578,000 for the period, compared to RMB 199,793,000 in the previous year, an increase of 58.7%[51] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 71,109,770,000, compared to RMB 70,704,235,000 at the end of 2020, showing a slight increase of 0.6%[52] - Total liabilities were RMB 33,246,179,000, a marginal increase from RMB 33,157,222,000 at the end of 2020, reflecting a growth of 0.3%[53] - Cash and cash equivalents increased to RMB 1,492,098,000 from RMB 396,804,000, representing a substantial growth of 275.0%[52] - The total amount of mortgage guarantees provided by the company as of June 30, 2021, was RMB 49,065,000, down from RMB 72,462,000 as of December 31, 2020[93] - The total accounts payable as of June 30, 2021, was RMB 2,824,700,000, down from RMB 3,100,204,000 as of December 31, 2020[90] Corporate Governance and Compliance - The board confirms compliance with the Corporate Governance Code during the reporting period[41] - The board of directors includes two executive directors and three independent non-executive directors, ensuring a balanced core competency structure[43] - The independent non-executive directors constitute at least one-third of the board, ensuring adequate oversight[43] - The audit committee has reviewed the interim financial results and confirmed compliance with applicable accounting standards and disclosure requirements[44] - The company has purchased liability insurance for directors and senior executives to cover potential legal liabilities arising from their duties[43] Shareholder Structure and Dividends - The company has a significant shareholder structure, with Pan Shiyi and Pan Zhangxin collectively holding 3,324,100,000 shares, representing 63.93% of the total equity[32] - Boyce Limited and Capevale BVI each hold 1,662,050,000 shares, accounting for 31.97% of the company's equity[33] - The company did not declare an interim dividend for the period, compared to zero in the same period of 2020[29] - The company’s total issued and paid-up ordinary shares remained at 5,199,524,031 shares as of June 30, 2021, unchanged from the previous year[86] Investment and Financial Assets - The total fair value of investment properties as of June 30, 2021, was RMB 63,656,000,000, compared to RMB 63,367,000,000 as of December 31, 2020, indicating a slight increase[67][69] - The total fair value of financial assets measured at fair value was RMB 65,399,624,000 as of June 30, 2021, up from RMB 66,182,967,000 as of December 31, 2020[67][69] - The group’s financial assets include structured deposits valued at RMB 1,218,731,000 and investments in private equity funds valued at RMB 89,194,000 as of June 30, 2021[67] - The group’s investment properties and office properties are valued at RMB 63,656,000,000 and RMB 435,699,000, respectively, as of June 30, 2021[67] Cash Flow and Financing Activities - For the six months ended June 30, 2021, cash generated from operating activities was RMB 68,193 thousand, a decrease of 84.0% compared to RMB 427,284 thousand for the same period in 2020[57] - The company’s cash flow from financing activities generated RMB 58,756 thousand for the six months ended June 30, 2021, a significant decrease from RMB 1,041,793 thousand in the same period of 2020[57] - New loans raised in the first half of 2021 were RMB 500,000,000, a significant decrease from RMB 2,304,588,000 in the same period of 2020[89] Employee and Operational Metrics - The group had approximately 1,711 employees as of June 30, 2021, including 1,547 in property management[28] - Short-term employee benefits for the first half of 2021 were RMB 7,763,000, a decrease from RMB 9,383,000 in the same period of 2020[95]

Financial Performance - SOHO China achieved a revenue of approximately RMB 1,847 million for the year ended December 31, 2019, representing a year-on-year growth of about 11% compared to RMB 1,668 million in 2018[2]. - The net profit attributable to equity shareholders for the year was approximately RMB 1,331 million, an increase of about 8% from RMB 1,233 million in 2018[2]. - Gross profit for the year was approximately RMB 1,510 million, an increase of about RMB 225 million or 18% compared to RMB 1,285 million in 2018, with the overall gross margin rising from approximately 75% in 2018 to about 82%[105]. - The annual net profit for 2019 was RMB 1,320,026 thousand, down from RMB 1,948,648 thousand in 2018[116]. - The financial income for the year was approximately RMB 80 million, a decrease of about RMB 41 million compared to RMB 121 million in 2018[107]. - The financial expenses for the year were approximately RMB 682 million, an increase of about RMB 90 million compared to RMB 592 million in 2018[107]. - The income tax for the year was approximately RMB 61 million, significantly lower than RMB 343 million in 2018[108]. - As of December 31, 2019, total borrowings amounted to approximately RMB 17,999 million, with RMB 1,632 million due within one year[109]. - The net debt to equity ratio was approximately 43% as of December 31, 2019, unchanged from the previous year[109]. Project Development - SOHO China completed two new projects in 2019: Gubei SOHO in Shanghai and Lize SOHO in Beijing, with the latter being a key project in a major business district[4]. - The total construction area of the Guohua Road SOHO II project is approximately 117,179 square meters, with a rentable area of about 94,279 square meters, including 63,308 square meters of office space and 30,971 square meters of retail space[13]. - The Lize SOHO project has a total construction area of approximately 150,324 square meters and a total rentable area of about 137,470 square meters, completed in December 2019[19]. - The Gubei SOHO project has a total construction area of approximately 146,692 square meters and a rentable area of about 112,176 square meters, completed in January 2019[31]. - The Bund SOHO project has a rentable area of approximately 72,826 square meters, with 51,317 square meters of office space and 21,509 square meters of retail space[25]. - The Tianshan Plaza project has a total construction area of approximately 156,991 square meters, with a rentable area of about 97,751 square meters, including 74,497 square meters of office space and 23,254 square meters of retail space[28]. - The Qianmen Street project has a total retail area of approximately 54,691 square meters, with about 34,907 square meters currently available for lease[16]. Sustainability and Environmental Initiatives - The company emphasizes sustainable development and integrates social responsibility and environmental protection into its governance and daily operations[35]. - SOHO China has implemented a comprehensive environmental management system to reduce pollutant emissions and enhance resource efficiency[42]. - The company has integrated green building design principles, with all ongoing projects adhering to LEED-CS Gold standards and China's two-star green building standards[45]. - SOHO China achieved a 19.03% energy saving compared to the ASHRAE 90.1 standard in the Gubei SOHO project, which has a total building area of 146,692 square meters[46]. - Total energy consumption in 2019 was 61,067.63 MWh, with direct energy consumption at 5,998.26 MWh and indirect energy consumption at 55,069.37 MWh[53]. - Water consumption in 2019 was 690,301.40 tons, with a per square meter usage of 1.19 tons[55]. - SOHO China adopted energy-efficient practices, including the use of natural lighting and optimized energy systems, to reduce greenhouse gas emissions[52]. - The company has implemented smart technology in its buildings, achieving energy savings of up to 40%[125]. - SOHO China has established a free 5G laboratory in Lize SOHO, showcasing five major application scenarios, including smart buildings and telemedicine, to enhance public life quality and industry communication[86]. Corporate Governance - The board of directors includes independent non-executive directors with extensive experience in investment and management, enhancing corporate governance[126]. - The company has adopted high standards of corporate governance and continuously improves its governance and disclosure practices[158]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with financial reporting standards and effective audit procedures[165]. - The company ensures that all directors have access to independent professional advice at the company's expense when necessary[166]. - The company has established a clear organizational structure for risk management with defined responsibilities and reporting procedures[184]. - The internal audit department reports directly to the board and audit committee to ensure sufficient and effective internal controls[184]. - The company emphasizes effective communication with investors, providing timely announcements and actively engaging through emails and phone calls[191]. Employee Welfare and Safety - SOHO China emphasizes employee welfare and safety, maintaining a "people-oriented" management philosophy to support staff development[58]. - The company provides commercial supplementary insurance and organizes annual health check-ups for employees[65]. - SOHO China received OHSAS 18001 certification for its occupational health and safety management system in 2019, with no work-related fatalities reported during the period[66]. - The company has established a comprehensive safety inspection and emergency reporting mechanism to ensure workplace safety[68]. - SOHO China offers protective equipment for high-risk jobs and provides heatstroke prevention drinks for outdoor workers[69]. - The company has implemented a monthly performance evaluation system, linking results to performance pay, to recognize individual talents[65]. Community Engagement and Philanthropy - The company donated a total of USD 5 million to charitable causes in 2019[97]. - The SOHO China Foundation initiated a scholarship program with an investment of USD 100 million to support Chinese students studying at top universities[98]. - The company constructed an international kindergarten in Gansu, covering an area of approximately 7,890 square meters, aimed at enhancing early childhood education in impoverished areas[99]. - The company organized a sports event to enhance communication with corporate clients, promoting health and engagement[93]. Supplier Management - The total number of suppliers reached 17,182 as of December 31, 2019, with over 90% located in North and East China[81]. - SOHO China implemented an ERP system to enhance supply chain management and reduce procurement costs[79]. - The company maintains a transparent procurement system with strict supplier management and compliance measures[78]. - The company has implemented green procurement practices since 2009, ensuring all new projects meet the LEED Gold standard, focusing on pollution prevention, waste management, and the use of low-emission materials[83].

Financial Performance - For the first half of 2019, SOHO China achieved a revenue of approximately RMB 889 million, representing a year-on-year growth of about 11.8% compared to RMB 795 million in the same period of 2018[3]. - The net profit attributable to equity shareholders for the first half of 2019 was approximately RMB 565 million, compared to RMB 406 million in the same period of 2018 after excluding non-recurring profits from the sale of properties[3]. - Gross profit for the period was approximately RMB 711 million, an increase of about RMB 67 million or 10.4% from RMB 644 million in the same period of 2018, with an overall gross margin rising from approximately 76% to about 80%[18]. - The valuation increase of investment properties for the period was approximately RMB 553 million, up from RMB 480 million in the same period of 2018[21]. - The company reported a profit of RMB 1,093,420 thousand for the period, significantly higher than the previous year's profit[55]. - The company's profit for the six months ended June 30, 2019, was RMB 578,186,000, compared to RMB 1,166,316,000 for the same period in 2018, reflecting a significant decrease[86]. Dividends and Shareholder Returns - The company decided not to declare an interim dividend for the first half of 2019, consistent with the previous year[3]. - The group did not declare an interim dividend for the period, consistent with the previous year's decision[28]. - The company declared and paid a final dividend of RMB 155,986,000 for the year ended December 31, 2018, compared to no dividends declared for the same period in 2017[96]. - The company paid dividends of RMB 155,772 thousand during the period, reflecting its commitment to returning value to shareholders[56]. Debt and Financial Stability - As of June 30, 2019, the net debt ratio was approximately 44%, with foreign debt accounting for only about 3.5%[4]. - The total borrowings of the group amounted to approximately RMB 17,761 million, with a net debt to equity ratio of about 44%[22]. - The group has capital commitments of approximately RMB 892 million for construction activities as of June 30, 2019, down from RMB 1,371 million as of December 31, 2018[25]. - The company had cash and cash equivalents of RMB 1,153,642 thousand as of June 30, 2019, compared to RMB 3,291,524 thousand at the end of the previous year[56]. - The total liabilities decreased to RMB 32,683,041,000 from RMB 34,305,608,000 at the end of 2018, indicating improved financial stability[54]. Property Development and Management - The company is developing the Lize SOHO project in Beijing, which is expected to significantly increase its rental income upon completion in the third quarter of 2019[4]. - The rental income from the completed properties in Beijing and Shanghai remained above the market average, with occupancy rates for key projects such as Wangjing SOHO at 92% and SOHO Fuxing Plaza at 96%[7][8]. - The occupancy rate for the newly opened Gubei SOHO in Shanghai reached approximately 45% by the end of the reporting period[4]. - The total planned construction area of the Lize SOHO project is approximately 172,800 square meters, with a total leasable area of about 133,780 square meters[12]. - The total leasable area of the SOHO Tianshan Plaza is approximately 97,751 square meters, with office space accounting for about 74,497 square meters[15]. Technology and Innovation - SOHO China has introduced 5G technology in six of its properties, enhancing network services for over 400,000 tenants[5]. - The company is committed to leveraging advanced technologies to improve property management efficiency and tenant experience[5]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the period[39]. - The company has adopted the Standard Code for securities trading by directors and confirmed compliance by all directors during the period[40]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced core competency[43]. - The company has purchased liability insurance for directors and senior executives to cover potential legal liabilities[43]. Employee and Management Information - As of June 30, 2019, the group had a total of 2,047 employees, including 211 employees at the Commune by the Great Wall and 1,592 employees in the property company[26]. - The total remuneration for key management personnel was RMB 12,949,000 for the six months ended June 30, 2019, compared to RMB 11,647,000 for the same period in 2018[109]. Financial Reporting and Compliance - The audit committee reviewed the interim results for the six months ending June 30, 2019, and confirmed compliance with applicable accounting standards[44]. - The company reported a deferred tax liability of RMB 246,445,000 for the six months ended June 30, 2019, down from RMB 255,945,000 in the same period of 2018, reflecting a decrease of about 3.7%[89]. - The company has not reassessed whether a contract is a lease or contains a lease for contracts signed before the transition date[68].