SOHO China sees 2013 net profits slump

Beijing-based property developer SOHO China Ltd posted 7.388 billion yuan ($1.2 billion) in net profits attributable to shareholders for 2013, dropping 30.2 percent year on year, as its strategic shift from a build-and-sell to a build-and-hold model started to cut into revenue.

For 2013, SOHO China registered 4.687 billion yuan in contracted sales, down 50 percent from the previous year, while contracted sales slumped 59 percent to 75,900 square meters, alongside an average hike of 20 percent in its per-unit sales price.

As the developer seeks to take a long-term view on its projects instead of selling them soon after completion, its rent revenue surged 78 percent year-on-year to 279 million yuan in 2013.