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].
SOHO中国(00410) - 2020 - 年度财报