SINO-OCEAN GP (03377.HK) continues to advance its debt resolution process. Recently, it disclosed the debt situation of its core domestic operating entity, Beijing Sino-Ocean Holding Group Co., Ltd. ("Sino-Ocean Holding").

In July, the amount of matured but unpaid debts at Sino-Ocean Holding decreased by 530 million yuan. As of July 31, 2026, the total amount of matured but unpaid borrowings stands at 16.4 billion yuan. Among these outstanding debts, bank loans account for 4.266 billion yuan, corporate credit bonds for 258 million yuan, other interest-bearing liabilities for 6.061 billion yuan, and amounts due to non-bank institutions and interest for 5.815 billion yuan. At the end of 2025, the matured but unpaid borrowings of Sino-Ocean Holding amounted to 18.16 billion yuan. This means that during the first seven months of this year, its debt decreased by 1.76 billion yuan net, a decline of 9.69%.

Currently, Sino-Ocean is operating along three main lines: "debt resolution, asset revitalization, and transformation," but the pressure it faces remains considerable.

Chased by Trust for Debts

In its announcement, Sino-Ocean Holding disclosed the progress of six major litigations, involving a total amount of 5.707 billion yuan. Among them, Shenzhen Juxin Investment Enterprise (Limited Partnership) ("Shenzhen Juxin") has filed a lawsuit against it, with the case having entered first-instance acceptance on July 15, involving an amount of 836 million yuan. The defendants include Henan Fulishi Real Estate, Henan Shanding Jinguan Real Estate, Henan Badawei Commercial Group, Zhao Hui, Sino-Ocean Holding, and others.

The business scope of Shenzhen Juxin is "engaging in investment activities with self-owned funds." Tracing its equity, it can be seen that its partners include China Resources Finance, Sino-Ocean Capital, and others, with the executive partner being Zhuhai Hengqin Runhong No. 7 Investment Enterprise (Limited Partnership) under China Resources Finance. Therefore, the aforementioned case can be viewed as an action by China Resources Finance to recover debts from entities such as Sino-Ocean Capital.

China Resources Finance is the financial business segment under China Resources Group, covering banking, trust, public funds, asset management, investment, and other fields. Sino-Ocean Capital, on the other hand, is the real estate asset management platform under Sino-Ocean Holding, primarily engaged in real estate investment and real estate financial business, and later became the main channel for Sino-Ocean's non-standard financing. Both are investment platforms, so why would one party take the other to court? The specific details involved are unknown to the outside world.

However, public information shows that Henan Fulishi Real Estate, located in Kaifeng, Henan, previously developed the "West Lake Tianyin" series of properties; the core project corresponding to Henan Shanding Jinguan Real Estate is the "Jinshui District Zaozhuang Area Urban Renewal Project" in Zhengzhou. It is possible that the underlying real estate projects have experienced funding issues, and as a guarantor, Sino-Ocean Capital finds it difficult to escape joint liability, but it too has fallen into liquidity difficulties.

China Resources Finance is not acting alone this time. Its subsidiary, China Resources SITC Trust, has also filed lawsuits against the same defendants, involving a subject amount of 526 million yuan. In other words, China Resources Finance and China Resources Trust are collectively recovering debts totaling 1.362 billion yuan from entities such as Sino-Ocean Capital.

Sino-Ocean Holding stated that debt defaults and related litigations will have a certain adverse impact on the company's solvency and production operations, but the current daily management, corporate governance, and production operations of the enterprise remain in normal operation. It is continuously conducting communication and negotiation with creditors and institutional holders to promote the implementation of the overall debt resolution plan, and will continue to fulfill bond information disclosure obligations in the future.

Three Main Lines

In the first seven months of 2026, the cumulative contracted sales of SINO-OCEAN GP amounted to approximately 8.99 billion yuan; the cumulative contracted sales floor area was approximately 737,500 square meters. During the same period, sales from its project management (daijian) projects amounted to approximately 1.75 billion yuan; the sales floor area was approximately 144,500 square meters.

Sino-Ocean's current work revolves around the three main lines of "debt resolution, asset revitalization, and transformation." On one hand, it stabilizes its foundation through debt restructuring and accelerated sales; on the other hand, it seeks to "generate blood" for development by revitalizing existing assets and transitioning to a light-asset service model. Whether this path can succeed depends on whether the debt restructuring can ultimately be implemented, whether existing assets can be effectively revitalized, and whether new businesses can form a stable profit model.

Sino-Ocean has been taking action one after another. In August 2025, it first announced the preliminary plan for overall domestic debt restructuring on the Hong Kong Stock Exchange, and shortly thereafter, Sino-Ocean Holding officially released a detailed plan. By November of that year, the restructuring plans for its seven corporate bonds had all been approved by bondholder meeting votes. In May this year, SINO-OCEAN GP took the lead, jointly with the All-China Federation of Real Estate Chambers and Shengshi Shenzhou Fund, to establish the "Special Assets Center of the All-China Federation of Real Estate Chambers."

The scale of core existing assets that Sino-Ocean plans to revitalize by the end of 2025 is as high as 80 billion to 100 billion yuan. Therefore, the core goal of establishing the Special Assets Center is "self-rescue and transformation," that is, internally revitalizing its own massive low-efficiency assets, and externally serving as a new business growth point, deeply entering the non-performing asset sector. This also means that SINO-OCEAN GP is attempting to transform from a traditional developer to an AMC role.

In the process of transformation, Sino-Ocean Construction Management has become the platform relied upon by SINO-OCEAN GP. Established at the end of 2023, Sino-Ocean Construction Management does not rely on capital investment but integrates resources to activate projects as a "Party B." At present, its expansion speed is relatively fast. In 2025, it added 81 new project management projects, entered 20 new cities, and newly expanded an area of 10.19 million square meters, a year-on-year increase of approximately 81%.