First Sponsor disputes bank’s claim over Dongguan residential units

First Sponsor Group Ltd ( (SG:ADN) ) just unveiled an announcement.

First Sponsor Group has disclosed that a Dongguan-based bank has lodged a legal caveat over 122 residential units in the Humen Oasis Mansion Project and initiated legal action against three of its Chinese subsidiaries, claiming their acquisitions of the units were invalid. The units, acquired in 2023 and 2024 and now carried at about S$30.9 million as completed properties for sale, relate to a project previously financed by the bank, whose development loan to the project company remains outstanding.

The group, backed by advice from an independent Chinese legal adviser, says the bank’s claims are considered highly unlikely to succeed under current evidence and law, and it intends to vigorously contest the proceedings. Management has therefore made no provisioning in its 2025 unaudited results and does not expect any material impact on earnings or net tangible assets for the year ending 31 December 2026, though it will update investors on any significant developments.

The most recent analyst rating on (SG:ADN) stock is a Hold with a S$1.00 price target. To see the full list of analyst forecasts on First Sponsor Group Ltd stock, see the SG:ADN Stock Forecast page.

More about First Sponsor Group Ltd

First Sponsor Group Limited is a Singapore-listed investment holding company with property development and investment interests in China, including residential projects such as the Humen Oasis Mansion in Dongguan, Guangdong Province. The group acquires, develops and sells completed properties, focusing on urban real estate assets held through various local subsidiaries.

Average Trading Volume: 8,942

Technical Sentiment Signal: Sell

Current Market Cap: S$1.14B

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