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 2,192 million in the current year, representing a year-on-year growth of about 19% compared to RMB 1,847 million in 2019[149]. - The pre-tax profit for the current year was approximately RMB 1,600 million, a decrease of about 17% from RMB 1,919 million in 2019[149]. - Financial income decreased to approximately RMB 63 million, down from RMB 80 million in 2019, a reduction of about RMB 17 million[151]. - Financial expenses increased to approximately RMB 915 million, up by about RMB 233 million from RMB 682 million in 2019[151]. - The total borrowings of the group as of December 31, 2020, amounted to approximately RMB 18,470 million, with a net asset liability ratio of about 43%[153]. - The group's operating revenue for the year 2020 was RMB 2,191,637 thousand, an increase from RMB 1,847,091 thousand in 2019, representing a growth of approximately 18.6%[162]. - The pre-tax profit for 2020 was RMB 1,600,066 thousand, a decrease of approximately 16.6% compared to RMB 1,919,195 thousand in 2019[162]. - The net profit for the year 2020 was RMB 543,466 thousand, down from RMB 1,320,026 thousand in 2019, reflecting a decline of approximately 58.8%[162]. - The total liabilities as of December 31, 2020, were RMB 33,157,222 thousand, compared to RMB 32,612,877 thousand in 2019, indicating an increase of approximately 1.7%[163]. - The company did not declare a final dividend for the year 2020, consistent with the previous year[159]. Occupancy and Rental Income - For the year ending December 31, 2020, SOHO China's rental income and occupancy rates were significantly impacted by the pandemic, with a notable decline in occupancy rates observed in April 2020[4]. - The company implemented measures to support tenants in severely affected industries, including rent reductions and extensions on payment deadlines, which helped stabilize occupancy rates[4]. - By the end of 2020, the occupancy rate of mature projects rebounded, with new clients such as Huawei and Alibaba contributing to a more diversified client base[4]. - The newly launched Lize SOHO project secured a major tenant, Huawei's China headquarters, with a lease area of 59,000 square meters, achieving an occupancy rate of 60% by year-end[5]. - The rental income and occupancy rates for key investment properties showed varying performance, with the Beijing Wangjing SOHO achieving an occupancy rate of 83% by December 31, 2020[8]. - The Shanghai Bund SOHO maintained a high occupancy rate of 97%, indicating strong demand in that market segment[9]. ESG and Sustainability Initiatives - SOHO China emphasizes sustainable development and integrates ESG principles into its governance and daily operations[34]. - The company aims to reduce total energy consumption by at least 20% annually, targeting an annual energy saving of over 80 million kWh, totaling over 400 million kWh in five years[47]. - SOHO China has set a carbon reduction target of over 60,000 tons annually, aiming for a total reduction of over 300,000 tons over five years[47]. - The company plans to reduce water consumption by at least 2% annually, with a cumulative target of at least 10% over five years[47]. - SOHO China is committed to reducing waste emissions intensity by at least 15% over five years, using 2020 as the baseline year[47]. - The company has established an ESG governance structure, with the board of directors responsible for sustainable development policies and strategies[42]. - SOHO China has achieved LEED-CS Gold certification for 8 projects and Silver certification for 1 project, with a total certified green building area of 2.18 million square meters, accounting for over 50% of the total building area[49]. - The company has implemented strict waste management measures, including the use of closed waste storage containers and classification of construction waste, to improve recycling rates[51]. - SOHO China has integrated renewable energy technologies and low-carbon technologies in its designs, including high-efficiency HVAC systems and energy control systems[49]. - The company actively applies rainwater and greywater recycling systems to rationally utilize water resources and minimize environmental impact[50]. Employee Welfare and Safety - The company employed 1,714 people in 2020, with a 100% formal labor contract signing rate[68]. - SOHO China emphasizes fair and reasonable compensation for employees, continuously optimizing the salary and benefits system[74]. - The company implements a monthly performance evaluation system, linking assessment results to performance-based pay to enhance employee efficiency[74]. - In 2020, SOHO China maintained a safe working environment, with no fatalities reported during the reporting period[75]. - The company adheres to various safety regulations and continuously improves its occupational health and safety management system[76]. - SOHO China conducts regular safety education and training to enhance employees' awareness of occupational health and safety risks[80]. - The company provides protective equipment that meets national standards for frontline and special operations employees[79]. - SOHO China organizes annual health check-ups and offers commercial supplementary insurance for employees[74]. - The company has established a comprehensive safety inspection and emergency response mechanism for potential safety incidents[77]. - In 2020, the company ensured zero errors and zero infections in its pandemic prevention efforts, safeguarding employee health and safety[81]. Community Engagement and Philanthropy - The SOHO China Foundation launched a charity event on September 9, 2020, engaging approximately 10,000 customers and online users to donate nutrition classes for children in mountainous areas[131]. - The company organized various Mid-Autumn Festival activities in September 2020, enhancing customer engagement and community spirit[132]. - During the 2020 Thanksgiving season, SOHO China initiated a postcard campaign, with around 10,000 customers participating to express gratitude to friends and family[133]. - In December 2020, SOHO China surprised customers with gifts, including apples and Christmas gift boxes, while delivering heartfelt wishes for health and safety[134]. - The SOHO Foundation donated RMB 30 million to build a bilingual kindergarten in Gansu, which officially opened on October 8, 2020, with 101 children enrolled by the end of 2020[142]. - The SOHO Foundation has cumulatively donated RMB 6.5 million to support the development of the Special Olympics and improve the lives of people with disabilities[146]. - SOHO China actively participated in pandemic relief efforts, donating RMB 120,000 worth of COVID-19 testing kits and RMB 200,000 worth of food supplies to hospitals in Wuhan[147]. Supplier Management - SOHO China established strategic partnerships with suppliers to enhance overall competitiveness, moving away from traditional "party A and party B" relationships[93]. - In 2020, SOHO China registered over 1,600 new suppliers, focusing on those with strong competitive advantages and good cooperation intentions[95]. - The company implemented a "blacklist" management system for suppliers, with 15 suppliers added to the blacklist in 2020 due to collusion and violations[96]. - SOHO China optimized supplier management systems, including online registration and electronic contract signing, to improve efficiency[93]. - The company signed strategic agreements with major telecom operators to enhance network services and promote 5G business[93]. - SOHO China aims to create a fair competitive environment by promoting excellent service from suppliers through recognition and public acknowledgment[96]. Customer Satisfaction and Service Quality - The average customer satisfaction score for SOHO China's projects in 2020 was 99.15 out of 100[124]. - The mystery visitor satisfaction score for SOHO China's projects in 2020 was 95.35 out of 100[125]. - A total of 33 customer complaints were recorded in 2020, with 20 via phone, 13 via email, and 2 via Weibo[126]. - The company established a nationwide call center to handle customer feedback, complaints, and suggestions promptly[127]. - SOHO China conducted monthly customer satisfaction surveys and biannual third-party assessments to improve service quality[124][125]. Corporate Governance and Compliance - SOHO China emphasizes integrity and innovation as core corporate values, adhering to multiple laws and regulations to prevent corruption and bribery[135]. - The company conducts monthly ethics training for new employees and annual compliance training to mitigate risks of corruption and fraud[137]. - The company confirmed compliance with applicable disclosure requirements regarding related party transactions[199]. - The company has established a scholarship program with a total funding of $100 million to support Chinese students studying at world-class universities[167]. - The company has a strong focus on architectural art and has received international awards for its contributions in this field[169].

Market Performance - As of June 30, 2020, the vacancy rate for Grade A office buildings in Beijing reached 16.2%, while in Shanghai it was as high as 20.9%[3] - The average rental income for the first half of 2020 from the properties in Beijing was RMB 400,738 thousand, with an average occupancy rate of 73%[5] - The rental income from the Shanghai properties for the same period was RMB 366,586 thousand, with an average occupancy rate of 77%[5] - The rental income for the Wangjing SOHO project was RMB 148,870 thousand, with an occupancy rate dropping from 86% in December 2019 to 73% by June 2020[5] - The company reported a stable average rental rate for its mature properties despite a decline in average occupancy rates due to market conditions[3] - The company anticipates that the demand for office space will evolve, with future requirements focusing on safety, privacy, openness, health, and intelligence in office environments[4] - The company holds a significant market position as the largest developer and property service provider of Grade A office buildings in Beijing and Shanghai[3] Financial Performance - The company achieved operating revenue of approximately RMB 1,453 million, a 63% increase compared to RMB 889 million in the same period of 2019, primarily due to revenue recognition from parking space sales[15] - Rental income for the period was approximately RMB 782 million, a decrease of about 12% from RMB 888 million in the same period of 2019[15] - Gross profit for the period was approximately RMB 799 million, an increase of about 12% from RMB 711 million in the same period of 2019[16] - Net profit for the period was approximately RMB 205 million, a 39% increase compared to RMB 148 million in the same period of 2019, excluding the impact of investment property revaluation[16] - The company reported a profit of RMB 203,872 thousand for the first half of 2020, compared to a profit of RMB 564,675 thousand for the same period in 2019, reflecting a decrease of approximately 64.0%[54] - The net profit attributable to shareholders for the six months ended June 30, 2020, was RMB 203,872,000, a significant decrease from RMB 564,675,000 in the same period of 2019, representing a decline of about 64.1%[78] - The total comprehensive income for the period was RMB 199,793 thousand, significantly lower than RMB 572,892 thousand in 2019, marking a decrease of about 65.1%[51] Financial Position - Total borrowings as of June 30, 2020, amounted to approximately RMB 18,860 million, with a net debt-to-equity ratio of about 42%[21] - The company reported financial expenses of approximately RMB 470 million, an increase of about RMB 137 million from RMB 333 million in the same period of 2019, mainly due to the inability to capitalize interest expenses[18] - The company has a total capital commitment of approximately RMB 92 million as of June 30, 2020, down from RMB 106 million as of December 31, 2019[24] - As of June 30, 2020, total assets amounted to RMB 70,267,408 thousand, an increase from RMB 69,729,016 thousand as of December 31, 2019, representing a growth of approximately 0.77%[52] - The company's total liabilities reached RMB 32,945,016 thousand, slightly up from RMB 32,612,877 thousand, indicating a 1.01% increase[53] - The total equity attributable to shareholders increased to RMB 37,322,392 thousand from RMB 37,116,139 thousand, marking a growth of about 0.56%[52] Cash Flow and Investments - The net cash generated from operating activities for the first half of 2020 was RMB 427,284 thousand, a significant increase compared to RMB 72,168 thousand in the same period of 2019[55] - The company’s financing activities generated a net cash inflow of RMB 1,041,793 thousand in the first half of 2020, compared to a net cash outflow of RMB 1,112,928 thousand in the same period of 2019[55] - The company’s investment activities resulted in a net cash outflow of RMB 1,937,869 thousand for the first half of 2020, contrasting with a net cash inflow of RMB 1,464,469 thousand in the same period of 2019[55] Compliance and Governance - The company has complied with the Corporate Governance Code throughout the reporting period[39] - The company has maintained compliance with all applicable accounting standards and regulations as confirmed by the audit committee[42] - The board of directors approved the unaudited interim results for the six months ended June 30, 2020, on August 21, 2020[42] Shareholder Information - Mr. Pan Shiyi holds 3,324,100,000 shares, representing approximately 63.93% of the company's equity[29] - Ms. Pan Zhangxin also holds 3,324,100,000 shares, equating to approximately 63.93% of the company's equity[29] - Cititrust Private Trust (Cayman) Limited holds 3,324,100,000 shares, representing approximately 63.93% of the company's equity as a trustee[35] - Boyce Limited and Capevale BVI each hold 1,662,050,000 shares, representing approximately 31.97% of the company's equity[35] - The board decided not to declare an interim dividend for the period, consistent with the previous year[26] Employee and Management - The company employed 1,737 staff as of June 30, 2020, including 1,530 in property management[24] - The short-term employee benefits for key management personnel amounted to RMB 9,383,000 for the six months ended June 30, 2020, compared to RMB 7,856,000 for the same period in 2019, representing an increase of about 19.4%[94]

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].

Financial Performance - The group achieved a revenue of approximately RMB 1,721 million for the year ended December 31, 2018, with rental income of approximately RMB 1,735 million, representing a 4% increase from RMB 1,669 million in 2017[2]. - The gross profit for 2018 was approximately RMB 1,285 million, a slight decrease from RMB 1,453 million in 2017, primarily due to the sale of properties[125]. - The net profit attributable to equity shareholders after tax for 2018 was approximately RMB 1,925 million, down from RMB 4,733 million in 2017[125]. - Distribution expenses for 2018 were approximately RMB 37 million, a decrease of about 48% from RMB 72 million in 2017[126]. - Administrative expenses for 2018 were approximately RMB 240 million, down about 20% from RMB 299 million in 2017[126]. - Financial income for 2018 was approximately RMB 121 million, an increase from RMB 95 million in 2017, due to higher average cash balances and more effective fund management[127]. - Financial expenses for 2018 were approximately RMB 592 million, remaining stable compared to RMB 584 million in 2017[127]. - The company's revenue for 2018 was RMB 1,720,860,000, a decrease of 12.3% compared to RMB 1,962,610,000 in 2017[138]. - The pre-tax profit for 2018 was RMB 2,957,422,000, down 64.4% from RMB 8,325,644,000 in 2017[138]. - The net profit attributable to equity shareholders for 2018 was RMB 1,924,966,000, a decline of 59.4% compared to RMB 4,733,481,000 in 2017[138]. - Basic earnings per share for 2018 were RMB 0.371, down from RMB 0.912 in 2017, representing a decrease of 59.3%[138]. Dividend and Shareholder Returns - The board proposed a final dividend of RMB 0.03 per share for the year ended December 31, 2018, compared to no dividend in 2017[2]. - The board's dividend policy aims to balance shareholder returns with sufficient reserves for future development[137]. Occupancy and Rental Income - The total rental income for the major investment properties reached RMB 1,170,000 thousand in 2018, with an overall occupancy rate of 96%[15]. - The occupancy rate for Wangjing SOHO was 98%, generating rental income of RMB 385,563 thousand, while the occupancy rate for Guanghua Road SOHO II was 95%, with rental income of RMB 274,792 thousand[16]. - The occupancy rate for Xujiahui SOHO was 99% at the time of sale, with a rental income of RMB 70,357 thousand[17]. - The occupancy rate for Bund SOHO was 87%, with a total leasable area of 72,826 square meters[31]. Project Development and Construction - The completion of Gubei SOHO in January 2019, with a construction area of 160,000 square meters, located in the core business district of Gubei, Shanghai[6]. - The upcoming completion of Lize SOHO in July 2019, with a construction area of 170,000 square meters, located in the Lize Financial Business District of Beijing[7]. - The total construction area of SOHO Fuxing Plaza is about 124,461 square meters, with a leasable area of 88,234 square meters, completed in 2014[28]. - The total construction area of Gubei SOHO is approximately 153,505 square meters, with a leasable area of 112,154 square meters, completed in January 2019[37]. - The total leasable area of Lize SOHO is approximately 133,780 square meters, currently under construction, aimed at supporting the expansion of financial enterprises in the area[27]. Sustainability and Environmental Impact - SOHO China has achieved a total greenhouse gas emissions of 52,739.11 tons in 2018, with direct emissions of 15.10 tons and indirect emissions of 52,724.01 tons[52]. - The total wastewater discharge for 2018 was 1,836 tons, with a COD discharge of 0.60 tons[52]. - SOHO China has integrated green building assessment criteria (LEED) into its design manual, with all ongoing projects being green buildings, adhering to LEED-CS Gold standard and China's two-star green building standard[54]. - As of now, SOHO China has 10 projects that have received LEED certification or pre-certification, covering a total area of 2.28 million square meters[54]. - Gubei SOHO in Shanghai has a total construction area of 153,505 square meters and has achieved LEED-CS Gold certification, demonstrating its commitment to green building standards[55]. - Gubei SOHO has implemented energy-saving measures resulting in a 19.03% reduction in energy consumption compared to the ASHRAE 90.1 baseline[55]. - The project has achieved a 46.32% reduction in water usage compared to LEED standards through rainwater recycling and water-saving fixtures[55]. - SOHO China aims to recycle at least 75% of construction, demolition, and site clearance waste as part of its green construction initiatives[62]. Employee and Workplace Safety - The company employed 5 individuals with disabilities in 2018, promoting diversity in the workplace[71]. - In 2018, all employees participated in health check-ups and supplementary commercial insurance plans to ensure their health[78]. - The company achieved OHSAS18001 certification for occupational health and safety management, ensuring compliance with safety regulations[80]. - No serious workplace injuries were reported in 2018, reflecting the company's commitment to employee safety[79]. - The company implemented a monthly inspection of hazard management at work sites to ensure safety[82]. Corporate Governance and Management - The board of directors includes independent non-executive directors with extensive experience in private equity and investment banking, enhancing corporate governance[151]. - The company has adopted high standards of corporate governance, continuously improving its governance and disclosure practices to protect shareholder interests[193]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced core competency for effective leadership[194]. - The audit committee consists of three independent non-executive directors, including Mr. Sun Qiang, Mr. Xiong Minghua, and Mr. Huang Jingsheng, with Mr. Sun serving as the chairman[200]. Strategic Initiatives and Future Plans - The management team has outlined a future revenue growth target of 15% for the upcoming fiscal year, driven by new product launches and market expansion strategies[156]. - SOHO China plans to invest approximately RMB 1 billion in the development of new technologies and innovative office solutions over the next three years[158]. - The company is actively pursuing market expansion, with plans to open 10 new shared office locations in major cities by the end of 2019[157]. - The board has approved a strategic acquisition plan aimed at enhancing the company's portfolio, targeting properties valued at over RMB 5 billion[160]. Community Engagement and Social Responsibility - The SOHO China Foundation's scholarship program has invested USD 100 million to support Chinese students studying at top universities, benefiting 42 students in 2018[118]. - The company has initiated the "Box You Along - AI Education Public Welfare Program" to enhance teaching capabilities in rural schools through AI technology[120].