COSCO Shipping Group: Thanks to non-cash gains from debt restructuring, expected net profit attributable to parent company of 6 billion to 7.5 billion yuan in 2025

On March 20, Oceanwide Holdings (03377.HK) released its earnings announcement, estimating that by 2025, the group’s attributable profit (net profit attributable to owners of the parent) will range between 6 billion and 7.5 billion yuan. In the same period last year, the company reported an attributable loss of 18.624 billion yuan.

Regarding the turnaround to profit, Oceanwide explained that this was mainly due to the full completion of overseas debt restructuring and significant progress in domestic debt restructuring, with related non-cash gains recognized.

However, the company also pointed out that excluding the impact of the one-time debt restructuring gains mentioned above, it expects to record an attributable loss for this year. The loss is primarily due to the ongoing adjustment in the real estate market over recent years, leading to declines in revenue and gross profit margin, as well as increased impairment provisions for property projects; at the same time, the performance of joint ventures and associates has declined.

In terms of domestic debt restructuring, Oceanwide has restructured a total of 7 domestic corporate bonds and 3 PPNs (private placement notes) with a total amount of 18.05 billion yuan. The company will adjust the principal and interest repayment arrangements for these bonds and offer multiple repayment options, including cash buybacks, equity-linked securities, and asset-backed debt. As for progress, on November 26 last year, the issuer announced that the restructuring plans for all 7 domestic bonds had been approved by bondholder meetings, involving a total amount of 13.05 billion yuan.

Regarding overseas debt restructuring, Oceanwide officially completed its overseas debt restructuring in March last year. Unpaid debts totaling approximately $5.636 billion were included in Oceanwide’s overseas debt restructuring plan. Under this plan, Oceanwide intends to convert about $2.2 billion of debt into new debt, with the remaining debt converted into new mandatory convertible bonds and perpetual securities. In mid-2025, Oceanwide revealed that during this period, it gained 31.756 billion yuan from overseas debt restructuring.