Sino-Ocean Group reports profit amid offshore debt restructuring

Sino-Ocean Group Holding Limited reported a profit attributable to owners of the company of RMB10,202 million for the six months ended June 30, 2025. This is a substantial improvement from a RMB5,382 million loss in the corresponding period of 2024. This turnaround was primarily due to a non-cash gain of RMB31,756 million from the completion of offshore debt restructuring, which reduced total borrowings to RMB66,997 million and increased total equity to RMB8,227 million.

Despite the profit, the group’s revenue decreased by 53% year-on-year to RMB6,203 million, resulting in a gross loss of RMB4,966 million. Total contracted sales also fell by 27% to RMB13,370 million. The real estate market in China continues to adjust, impacting property sales and leading to increased impairment losses under the expected credit loss model, which amounted to RMB9,725 million for the period.

The group is actively pursuing an onshore debt restructuring plan for approximately RMB18.07 billion to address ongoing liquidity challenges and maintain business continuity. However, the auditor issued a disclaimer of conclusion due to multiple material uncertainties related to the group's ability to continue as a going concern, pending successful implementation of these plans.