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].
SOHO中国(00410) - 2019 - 中期财报