Sino-Ocean Service Holding Limited Issues Significant Profit Warning for FY2025

Key Points from the Announcement

• Major Expected Loss: Sino-Ocean Service Holding Limited (“the Company”) anticipates a substantial loss attributable to its owners for the financial year ended December 31, 2025 (FY2025), estimated between RMB1,350 million and RMB1,450 million. This marks a dramatic reversal from a profit of approximately RMB28.9 million in FY2024.
• Profit Warning Issued: The Company’s Board has issued a formal profit warning, alerting shareholders and potential investors of the expected loss, which is likely to be price-sensitive and could materially affect the Company’s share value.
• Reasons for Loss:
  • Ongoing adverse conditions in the Chinese real estate market have led to a lengthening settlement cycle for the Company’s businesses.
  • This has resulted in increased provisions for impairment losses on trade and other receivables, inventories, and goodwill.
  • Losses arising from the return of parking spaces to Sino-Ocean Group Holding Limited (the Company’s controlling shareholder) and its subsidiaries, as previously disclosed in announcements and circulars dated 16 July 2025 and 15 October 2025.
  • The provision for impairment loss on trade and other receivables is a non-cash flow item, but it negatively impacts reported earnings.
• Ongoing Measures: The Group will actively maintain communication with customers and the Sino-Ocean Group to pursue collection measures and mitigate receivable risks.
• Results Not Finalized: The figures are based on unaudited consolidated management accounts prepared under HKFRS. The annual results for FY2025 are still being finalized and may be subject to adjustments.
• Disclosure Timeline: Audited financial results for FY2025 will be published by the end of March 2026.

Important Information for Shareholders

• Price-Sensitive Event: The expected significant loss is likely to have a material impact on the Company’s share price. Shareholders and investors should be aware that the profit warning represents a major change in the Company’s financial outlook.
• Impairment Provisions: Substantial increases in provisions for impairment losses (trade and other receivables, inventories, goodwill) highlight heightened risks in asset recoverability and market conditions.
• Related Party Transactions: The losses from the return of parking spaces to Sino-Ocean Group (the controlling shareholder) may raise concerns about related party transactions and their impact on the Company’s balance sheet.
• Market Caution Advised: Investors are strongly advised to exercise caution when dealing in the Company’s securities due to uncertainties and potential volatility.
• Board Composition: As of the announcement date, the Board consists of a mix of executive, non-executive, and independent non-executive directors, led by Joint Chairman Yang Deyong.

Additional Details

• The Company is incorporated in the Cayman Islands and listed under Stock Code 06677.
• The announcement was made in Hong Kong on 18 March 2026.
• The Company stresses that shareholders and potential investors should not place undue reliance on the preliminary financial information provided, as it is subject to further review and audit.
• Any adjustments resulting from the audit process will be reflected in the Company’s official annual results announcement.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The information contained herein is based on the Company’s preliminary announcement and may be subject to change upon further review and audit. Investors should exercise caution and seek professional advice before making any investment decisions related to Sino-Ocean Service Holding Limited. The author assumes no responsibility for any actions taken based on this article.

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