SOHO China's net profit in H1 soars US$597 billion

SOHO China Ltd, which owns and operates the largest co-working space chain in Beijing and Shanghai, said  today that its net profit surged in the first half of this year amid higher valuation gains on investment properties.

Net profit attributable to equity shareholders soared to 3.982 billion yuan (US$596.7 million) between January and June, up from 599 million yuan in the same period last year, the Beijing-headquartered office developer said in a filing to the Hong Kong stock exchange.

Turnover jumped 47 percent year on year to 1.07 billion yuan in the first half year and rental income climbed 17 percent to 818 million yuan during the same period, the Hong Kong-listed developer said.

Since its launch in February 2015, SOHO 3Q, the company's shared office brand, has opened 19 centers in Beijing and Shanghai which offer about 17,000 seats with average occupancy rate of 80 percent, according to the filing.

"The market potential for co-working business is huge and SOHO 3Q will expand into more cities in the future on the strength of its successful experience in Beijing and Shanghai," said Pan Shiyi, chairman of SOHO China. "The advantages and expertise SOHO 3Q has gained in product design, co-working space operation and management will further facilitate its rapid development."

The company also planned to set up SOHO 3Q centers in Hangzhou, Nanjing, Guangzhou and Shenzhen as part of its expansion. It envisages the number of seats offered at SOHO 3Q centers across the country to increase to between 300,000 and 500,000 within the next three to five years, according to earlier media reports.

Shares of SOHO China closed 6.21 percent higher at HK$4.45 (57 US cents) today after reaching an intraday high of HK$4.53.