We primarily focus on the development and sale of Commercial Properties and seek to capitalise on the strength of the SOHO China brand to generate high returns on our developments. To date, we have completed the development of 1,208,594 sq.m. of GFA. By the end of 2009, we plan to complete the development of an additional 878,422 sq.m. of GFA when we will have completed the development of a total of 2,087,016 sq.m. of GFA.

For the three years ended 31 December 2004, 2005 and 2006 and the six months ended 30 June 2007, we entered into sale contracts with aggregate contract values of RMB3,359.6 million, RMB3,277.9 million, RMB4,065.5 million and RMB3,284.7 million, respectively.

We believe that our strong track record of profitability and our industry leadership are demonstrated by the following:

• Strong track record of profitability. Our consolidated profits for 2004, 2005 and 2006 were RMB424,373,000, RMB865,048,000 and RMB409,730,000 respectively.
• Industry leadership. We believe that we are the largest real estate developer in the Beijing CBD by sales revenue and developable area. According to a report by China Index Research Institute (中國指數研究院) prepared based on data from Beijing Real Estate Information Network (北京房地產信息網), as at 27 December 2006, sales revenue from our projects accounted for approximately 39% of the total property sales revenue in Beijing CBD from 2003 through a portion of 2006. According to the same report, more than 1,554,000 sq. m., or approximately 19% of total planned developable GFA of the Beijing CBD as set forth in the government plan of March 2004 for the Beijing CBD, has been or is being developed by us. Our pre-sale revenues were the highest in Beijing in 2005 and 2006 and the second highest in 2004, based on that report. We were also the second highest taxpayer in China's real estate sector from 2003 to 2004, and were amongst the top 500 highest taxpayers in China from 2004 to 2005. We were named as one of the “Most Admired Companies” in China by Fortune Magazine (Chinese edition) 2006 and were the only real estate company among the top ten companies to receive such recognition
• Innovative designs.Our Jianwai SOHO project received the 2006 Business Week / Architectural Record China Awards and the 2003 CIHAF Prize for Innovative Chinese Famous Development. Our Commune by the Great Wall project was named “A New Architectural Wonder of China” by Business Week in 2005 and was the only hotel in China listed on the Conde´ Nast Traveler’s “100 Hot Hotels in the World” in 2004.
• High profile directors. Mr. Pan was honoured as one of the 25 most influential business leaders in China by Fortune (China) Magazine in 2005 and was named one of the “Top Ten Influential Figures in Real Estate Industry” by sina.com in 2004 and 2006 and one of the “Top Ten Influential Figures in Real Estate Industry” by sohu.com in 2005. As at 25 April 2007, the total number of visits to Mr. Pan’s blog, had surpassed 33 million hits and ranked 6th amongst all blogs hosted on sina.com.cn and first amongst all entrepreneurs’ blogs hosted on sina.com.cn. Ms. Zhang was selected by the World Economic Forum as a Young Global Leader in 2005. She also won Business Week’s Stars of Asia Award for 2004 and received the 2004 Montblanc Arts Patronage Award given by Montblanc Cultural Foundation. In recognition of Ms. Zhang’s efforts in promoting the development of architecture in Asia, Ms. Zhang was awarded a Special Prize to an Individual Patron of Architectural Award by La Biennale di Venezia in 2002. She has also spoken at various forums including the Fortune Global Forum 2005 and the China Business Summit 2003 & World Economic Development Declaration 2003.

We have entered into a series of agreements with Beijing Tianjie, among other parties, for the acquisition of an interest in the Tiananmen South (Qianmen) Project. Such acquisition is subject to PRC Government approvals. In the event that that we obtain the necessary approvals for the acquisition of such interest in the Tiananmen South (Qianmen) Project and Beijing Tianjie completes its acquisition of the 33 Parcels on the expected schedule, we would expect to be able to develop up to an additional 165,000 sq.m. of planned GFA. In the event that we do not obtain the necessary PRC Government approvals, we may not be entitled to any economic interest in the Tiananmen South (Qianmen) Project and will not have access to any of the associated GFA for development or sale. Further, if we are successful in bidding for the additional 11 Parcels, which form part of the Tiananmen South (Qianmen) Project, and which are expected to be put out for open tender in late 2007, then our total planned GFA may increase by another 195,000 sq.m.. In the event that we are able to acquire and develop the 33 Parcels and 11 Parcels, the total GFA that we have completed and that we plan to complete through 31 December 2009 will total 2,447,016 sq.m..

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