SOHO China profits from revenue rise

SOHO China Ltd, a major commercial real estate developer, said yesterday that its net profit rose by double digits in the first half of this year amid solid revenue growth.

Its net earnings surged 29 percent year on year to 2.7 billion yuan (US$439 million) during the first six months on an 83 percent jump in turnover to 4.75 billion yuan, the Beijing-based developer said. It declared an interim dividend of 0.12 yuan per share.

"Market demand for prime office buildings in Beijing and Shanghai remained robust during the first half of 2014, with core areas of the two cities, in particular Beijing, experiencing constant under-supply of prime-located offices," Hong Kong-listed SOHO China said in a statement.

"The group will continue to monitor the market conditions closely to explore opportunities for acquiring attractive quality assets in the prime locations of Beijing and Shanghai in 2014."

The firm's core net profit, excluding gains on investment properties, soared 128 percent to 1.2 billion yuan.

As of June 30, SOHO China had 15.3 billion yuan in cash and bank deposits. Its income from property leasing rose 84 percent from the same period a year ago to 164 million yuan in the first half while property sales surged 83 percent to 4.6 billion yuan, it said.