(Yicai Global) Aug. 22 -- SOHO China Ltd. [HK:0410] posted a net profit of USD598 million (CNY3.98 billion) for the first half, up from CNY599 million a year ago. The Chinese developer attributed its earnings growth to investment property appreciation.

The firm's rental income was CNY818 million, up 17 percent annually, its half-year results show. SOHO China, who began shifting its focus from property sales to commercial leasing, said its 19 office centers in Beijing and Shanghai with seating for 17,000 had an average occupancy rate of 80 percent as of the end of June. The firm's gross profit margin on property leasing was 80 percent during the reporting period, compared with 78 percent a year earlier.

Increasing property prices in China also boosted SOHO China's performance. Valuation gains on investment properties reached CNY6.2 billion in the first six months of this year, compared with CNY1.14 billion a year ago.

SOHO China shares rose about 8 percent on the news during trading before closing at USD0.57 (HKD4.45), up 6.21 percent.