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].
SOHO中国(00410) - 2021 - 年度财报