SOHO China (410) H2 2024 earnings summary

Executive summary

• Holds 1.22 million sqm of prime commercial properties in Beijing and Shanghai, maintaining a diverse tenant mix and stable rental income.

• Achieved revenue of RMB1,540 million for 2024, down 8% year-over-year amid a weak macroeconomic environment and pressure on the office and retail leasing market.

• Average occupancy stabilized at 78% by year-end 2024, recovering to 80% by March 2025 despite market challenges.

• Gross profit margin from property leasing remained robust at 83%.

• Underlying profit attributable to owners from operating activities (excluding valuation changes and one-off tax fees) was RMB278 million; net loss attributable to owners was RMB113 million.

Financial highlights

• Revenue declined to RMB1,540 million in 2024 from RMB1,679 million in 2023.

• Gross profit was RMB1,280 million, with a margin of 83%, up from 82% in 2023.

• Rental income comprised nearly all revenue, with property sales at RMB5.7 million.

• Selling and administrative expenses reduced to RMB32 million and RMB96 million, respectively.

• Finance expenses decreased to RMB722 million from RMB778 million.

Outlook and guidance

• Flexible leasing strategies and mature project operations are expected to maintain stable occupancy and rental income.

• Continued focus on sustainable development, green leasing, and emission reduction targets aligned with SBTi.

• Management remains focused on stabilizing occupancy and cost control amid continued market challenges.

• Plans to further dispose of commercial properties to address outstanding tax liabilities and improve liquidity.