Sino-Ocean Service posts RMB1.37 billion annual loss on hefty impairments; revenue slips 4 %

Bulletin Express
Mar 25

Sino-Ocean Service Holding Limited reported a sharp swing into the red for FY 2025, booking a loss attributable to shareholders of RMB1.37 billion compared with a RMB28.92 million profit a year earlier.

Revenue edged down 4 % to RMB2.72 billion, reflecting the proactive exit from low-margin projects. Property management services remained the core business, contributing 75 % of total turnover, followed by community value-added services at 17 % and value-added services to non-property owners at 8 %.

Margins came under severe pressure: gross profit fell 69 % to RMB158.57 million and overall gross margin contracted to 6 % from 18 % in 2024. Property management services margin halved to 8 %, while community value-added services recorded a 5 % gross loss after inventory write-downs.

Impairment provisions were the principal drag on earnings. Expected-credit-loss charges on trade and other receivables reached RMB870.37 million, while goodwill and investment-property impairments totalled RMB348.18 million. Inventories were written down by RMB165.21 million, and a one-off loss of RMB207.11 million arose from the planned return of 2,418 parking spaces to parent Sino-Ocean Group.

Operational scale contracted modestly. Contracted gross floor area (GFA) dropped 7 % year on year to 114.04 million sq m, and GFA under management slipped 3 % to 89.42 million sq m after the company jettisoned low-efficiency projects. Newly signed contracts totalled 7.1 million sq m, 94 % of which came from third-party developers. Projects in first- and second-tier cities accounted for 81 % of managed GFA.

Cash and cash equivalents stood at RMB693.81 million with no interest-bearing debt, giving a neutral current ratio of 1.0 x. Capital expenditure was tightly controlled at RMB4.84 million.

The board recommended a final cash dividend of RMB0.0107 (HKD0.0122) per share, subject to shareholder approval at the 21 May 2026 AGM.

Looking ahead to 2026, management plans to deepen focus on high-value urban clusters, expand in resilient non-residential segments such as government and SOE facilities, tighten cash-flow and receivables management, and pursue “quality-driven, sustainable” growth after a year marked by industry headwinds and significant balance-sheet clean-up.

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