HK Stock Market Move | SINO-OCEAN SERV (06677) Up nearly 6% in early trading, the company plans to acquire 191 parking spaces from related parties to resolve accounts receivable risks.

SINO-OCEAN SERV (06677) rose nearly 6% in early trading, as of the time of writing, it has increased by 4.23% to HKD 0.37. On the news front, SINO-OCEAN SERV recently disclosed a related party transaction: its wholly-owned subsidiary, Far East Homes, will acquire 191 Beijing parking spaces held by its related party, Beijing Yuanxin, for a total consideration of RMB 31.334 million. The entire consideration will be used to offset an equal amount of receivable security deposit, with no cash payment involved. The announcement indicated that due to the expiration of the original 2022 framework agreement, the related party is experiencing a cash flow strain, making it difficult to refund the security deposit in cash. The company has chosen to use assets to pay off the debt in order to reduce the risk of receivables and protect the interests of shareholders, without affecting the company's cash flow. The announcement stated that 139 parking spaces have already been leased out, with stable rental income expected.