Group 1 - The core point of the news is that Ocean Group has agreed to a framework agreement with Ocean Services to return certain target assets, specifically 2,684 parking spaces located in China, back to the group, which were previously transferred under an asset transfer framework agreement for a price of RMB 323 million [1][2] - The return of the target assets is part of an internal asset restructuring within the group, allowing the assets to be managed more effectively and reflecting their value, especially given the challenges faced by Ocean Services in generating cash through asset sales [2] - The long-term loan settlement for the asset return is expected to alleviate liquidity pressure on the group, ensuring its ongoing operational capability and sustainable operations, with a repayment term of up to ten years and an interest rate of 2.00% [2] Group 2 - The restructuring is seen as a necessary measure in light of the current state of the Chinese real estate market and the liquidity challenges faced by the group, which has reserved cash resources for critical business operations under the "guarantee delivery" and "guarantee operation" policies [2] - The financial implications of the asset return are expected to be manageable, as the long-term loan's relative size compared to the group's total assets is not anticipated to significantly impact the group's liquidity, working capital, or financial condition [2]
远洋集团(03377.HK)与远洋服务订立框架协议