SOHO China (410) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB690 million, down 13.6% year-over-year due to weak office and retail leasing demand and challenging market conditions.

• Gross profit was RMB549 million, with a stable gross margin of 80%, representing a 15.3% decrease from the prior year.

• Net loss attributable to owners was RMB92 million, an improvement from the prior year's loss, while underlying profit from operating activities (excluding fair value changes and one-off tax fees) was RMB173 million.

• Average occupancy rate stabilized at 80% as of June 30, 2025, and recovered to 81% by September 2025, with high-quality tenants including international and domestic brands.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: RMB690 million (down from RMB799 million in 2024H1, a 13.6% decrease year-over-year).

• Gross profit: RMB549 million (down from RMB648 million year-over-year), with a gross margin of 80%.

• Net loss attributable to owners: RMB92 million (vs. RMB108 million loss prior year); basic and diluted loss per share: RMB0.02.

• Net cash inflow from operating activities: RMB385 million.

• Investment properties valued at RMB62,935 million as of June 30, 2025; total borrowings at RMB15,310 million, with RMB5,720 million due within one year.

Outlook and guidance

• The office market is expected to face continued pressure on rents and competition, but government support and emerging industries may offer new opportunities.

• Management is focused on improving property management, customer service, and adapting to new economic and technological trends.

• Occupancy rates have stabilized and are showing signs of recovery, indicating resilience in a downward market.