Sino-Ocean Group Holding Limited Issues Update on Subsidiary Sino-Ocean Holding’s Debt and Litigation Status

Sino-Ocean Group Holding Limited (“Sino-Ocean Group” or “the Company”, HKEX: 03377) has recently released a significant update regarding its wholly-owned subsidiary, Beijing Sino-Ocean Group Holding Limited (“Sino-Ocean Holding”). This announcement contains crucial, potentially price-sensitive information that investors and shareholders should note, particularly regarding the Group’s financial exposure, debt status, and ongoing operations in China.

Key Highlights for Investors

• Substantial Overdue Borrowings: As of 28 February 2026, Sino-Ocean Holding reported total overdue outstanding borrowing principal amounting to RMB16.78 billion. Investors should note that there was no change in the overdue amount during February, but this figure is preliminary and unaudited, which means the final amount could be adjusted after audit completion.
• Active Engagement with Creditors: Sino-Ocean Holding is currently engaging with debt holders in an effort to formulate and implement solutions to resolve the overdue debt situation. The company stresses it is striving to address these financial challenges, but resolution is still pending.
• Litigation Status: In February 2026, Sino-Ocean Holding did not face any new major litigations. However, updates on ongoing major litigation cases are available on the Shanghai Stock Exchange’s website. The ongoing lawsuits may still present risks, but no incremental legal actions were reported for the month.
• Operational Impact: The Company acknowledges that the substantial overdue debts and ongoing litigations will have an adverse impact on Sino-Ocean Holding’s production, operations, and debt repayment ability. Despite these issues, daily management, corporate governance, and core operations are reported as continuing normally at present.
• Ongoing Negotiations and Disclosure: Sino-Ocean Holding is in active communication and negotiation with relevant institutions and creditors to seek a holistic solution to its debt problems. The company is committed to fulfilling its information disclosure obligations and will provide further updates as required by law.

Potential Share Price Impact and Shareholder Considerations

• Material Adverse Impact: The scale of overdue debt (RMB16.78 billion) is significant and likely to have a material adverse impact on Sino-Ocean Holding’s financial position, which in turn could affect the parent company Sino-Ocean Group’s consolidated financial health and share price.
• Uncertainty Around Debt Resolution: The ongoing uncertainty regarding the resolution of overdue debts and the lack of new progress in settling outstanding borrowings may weigh on investor sentiment.
• Litigation Risks Remain: Although no new major litigations were reported, the existence of ongoing cases could lead to future financial liabilities, depending on the outcomes.
• Operational Continuity Claimed: Management has emphasized that operations and governance remain normal. However, the market may remain cautious until a concrete debt restructuring or repayment plan is finalized.

Management Statement and Forward Guidance

The Board of Sino-Ocean Group Holding Limited, through its Company Secretary, Chan Ka Man, reiterated its commitment to strict information disclosure and stated that further announcements will be made as and when required. The Company strongly advises shareholders, debt holders, and potential investors not to rely solely on this announcement and to exercise caution when dealing in the Company’s securities. Consulting professional or financial advisors is recommended for those in doubt.

Board Composition (as of Announcement Date)

• Executive Directors: Mr. LI Ming, Mr. WANG Honghui, Mr. CUI Hongjie, Ms. CHAI Juan
• Non-Executive Directors: Mr. ZHANG Zhongdang, Mr. YU Zhiqiang, Ms. SUN Jianxin, Ms. WANG Manling
• Independent Non-Executive Directors: Mr. HAN Xiaojing, Mr. LYU Hongbin, Mr. LIU Jingwei, Mr. JIANG Qi, Mr. CHEN Guogang

Conclusion

Shareholders and market participants should closely monitor the Company’s future disclosures and the progress of debt negotiations. The large overdue debt exposure, though not new, remains unresolved and is a material risk factor for both Sino-Ocean Holding and the parent company. Any further deterioration or delays in repayment solutions, or negative litigation outcomes, could potentially lead to increased volatility in the Group’s share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Shareholders, holders of debt securities, and potential investors are strongly advised to exercise caution when dealing in the securities of Sino-Ocean Group Holding Limited and to consult with professional or financial advisers as appropriate.

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