Sino-Ocean Group Holding (3377) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 6% YoY to RMB6,597 million, but gross profit was only RMB15 million, with a net loss attributable to owners of RMB7,149 million, reversing a profit of RMB10,202 million in H1 2025.

• Contracted sales dropped 39% YoY to RMB8,140 million, and GFA sold fell 20% to 676,200 sq.m., mainly due to fewer new launches in first-tier cities.

• The Group continued to face significant liquidity and debt challenges, with current liabilities exceeding current assets by RMB15.39 billion and a net gearing ratio of -749%.

• The auditor issued a disclaimer of conclusion due to multiple uncertainties regarding going concern, including overdue borrowings and ongoing debt restructuring.

• Ongoing market adjustment, impairment provisions, and debt restructuring continue to impact results.

Financial highlights

• Revenue: RMB6,597 million (+6% YoY); gross profit: RMB15 million (vs. gross loss RMB4,966 million in H1 2025).

• Net loss attributable to owners: RMB7,149 million (vs. profit RMB10,202 million YoY); basic and diluted loss per share: RMB0.598.

• Gross profit margin: 0.2%; net loss margin: -116%.

• Total assets: RMB143.8 billion (-5% vs. Dec 2025); equity attributable to owners: -RMB7.04 billion.

• Cash resources: RMB6,373 million (+6% vs. Dec 2025); current ratio: 0.87.

Outlook and guidance

• The Group will focus on risk mitigation, asset revitalization, and transformation into a comprehensive real estate service provider in H2 2026.

• Plans include accelerating asset sales, improving receivables recovery, and continuing debt restructuring.

• The Group expects continued industry pressure but aims to stabilize operations and ensure project delivery.

• Industry is shifting toward urban renewal and asset revitalization, with risk resolution expected to be gradual.

• Company will focus on debt risk resolution, project delivery, and lowering net gearing.