Dear Friends,

12 years ago when SOHO China was first established we looked just like countless other Chinese start-ups. Since then, we have flourished. Why?

We believe that one reason can be found in the very DNA of our company.

Before they hatch, an eagle and a chicken are virtually identical. But while eventually an eagle will soar to the highest peak, a chicken is a chicken, and it will never leave the ground. Its destiny is shaped by its DNA.

So what are the elements of SOHO's DNA? They are Truthfulness, Unity and Innovation. These three elements are the basis on which we continuously create high returns for our customers and at the same time, contribute to society.

Truthfulness is the foundation of all human virtues. Truthfulness is essential for long-term success in China's fast-changing environment.

Unity allows us to gather strength from many sources to reach our goals.

Innovation is a pre-requisite for human progress. It is also a prime driver of the development of a company. In every aspect of our work, we continually strive to innovate and to push the frontiers of our industry. Innovation opens our eyes to opportunities in the market that others miss. It is the core competence at the heart of SOHO China's unique business model.

• We were the FIRST mainland developer to build in Beijing's CBD 10 years ago
• we were the FIRST to offer fully furbished residential developments
• We were the FIRST to introduce the Small Office Home Office concept to China. Today SOHO is synonymous with "style" in China
• 3 years ago we deliberately switched our focus from residential to commercial

The market has proved us right, and we have been richly rewarded.

Now, after 12 years, SOHO China is entering a new high-growth stage in its evolution. Like a teenager on the brink of coming of age.

China is the country of the future. And in this phase of high growth, it has distinctively different characteristics to western established economies.

What are the features of SOHO's unique strategy?

In brief our strategy is to seize the strategic high-ground, instead of simply following the herd in a blind grab for land.

The first strategic summit is location. Real Estate developers the world over say success in our industry is about Location, Location, Location. But each of them interprets this in their own way. Ours is to focus on acquiring the most prominent and prestigious locations we possibly can. In China today this means the cities of Beijing and Shanghai. And within Beijing, the Central Business District - Sanlitun for example, and the areas surrounding Tiananmen Square. Acquiring prime locations gives us an almost insurmountable advantage over future competition.

The second strategic summit is brand. Forging a strong brand in the early stages of China's market development, gives us significant competitive advantage against other, more generic, developers. In the last 12 years SOHO has become a household name across China.

The third summit is high-end product focus. Technical challenges differ vastly from building low-end to high-end residential properties, from building commercial space to retail developments. As the market becomes more and more sophisticated, those without the necessary skills will find it increasingly difficult to compete. It is difficult for a factory that produces Xiali cars to build a BMW.

SOHO China's focus has shifted from residential to commercial and retail, becoming increasingly sophisticated. This has given us a dominant position with little competition and high margins.

During the last 12 years SOHO China has already scaled these three strategic summits. But we are not satisfied yet. We continue to set our sites ever-higher seeking to "scale the ascending heights of excellence".

As we list our company on the international financial markets, we are once again scaling a new summit. And once again this peak is just another beginning for SOHO China. It is like the wind in the wings of the eagle that will allow it to soar to ever greater heights.

Thank you.

Pan Shiyi

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