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House.Hexun: Oceanwide Holdings continues high growth and transformation and builds complete financial services system


News of house.hexun.com on April 24. Oceanwide Holdings (000046.SZ) has released its latest annual report. According to the report, the Oceanwide Holdings recorded revenue of RMB 24.671 billion, a year-on-year increase of 79.41%, and a net profit of RMB 3.109 billion, up by 37.96% over the previous year. It can be seen that Oceanwide Holdings has continued the high growth momentum of 2015 when the Group implemented full transformation and achieved nearly 30% of net profit growth in the year.

Real estate and finance business continues to grow fast

The fast growth of Oceanwide Holdings in 2015 can be attributed to the strong performance of real estate and financial business.

In the annual report, Oceanwide Holdings states that the construction of a complete financial services system is the core goal of its transformation. After years of systematic layout, integration and optimization, Oceanwide Holdings now owns several core financial platforms, including Minsheng Securities, Minsheng Trust, Asia-Pacific Property & Casualty Insurance, Minsheng Financial Services, etc. In addition, Oceanwide Holdings has applied for the setting up the Minsheng Fund at its full cost and the Asia Pacific Reinsurance, Asia Pacific Internet Life Insurance as a main sponsor. Hence, the Group's financial service platforms are growing constantly, while its financial service chain continues to expand. As such, the revenue of the finance business of Oceanwide Holdings increased from RMB 4.3 billion in 2015 to RMB 6 billion in 2016, up by more than 40%.

In terms of the traditional main business real estate, Oceanwide Holdings accelerated the pace of development, construction and destocking. The sales of key real estate projects in advantageous locations of Beijing and Wuhan were relatively good. In 2016, the revenue of the real estate business amounted to RMB 18.545 billion, almost "doubled" compared with the previous year.

In addition, Oceanwide Holdings says that the Board of the Group actively adapted to new trends in both domestic and foreign economies and initiatively deepened transformation and systematic adjustment particularly amid new situations and changes in the real estate and finance sectors in 2016. In the real estate sector, Oceanwide Holdings innovated in property development and operation modes and profit models, and created an organic, unified and diversified profitability model integrating property sales, operation, and investment and management. As for the finance business, the Group drew on the experience of industry leaders to build its financial platform, constantly improve its own management level and risk control level, and initiatively change the mode of development.

Eyeing at the financial ecological system

Finance business is the focus of the Group's transformation. In 2016, Oceanwide Holdings actively accelerated the layout in the financial sector, with increasingly richer business licenses and qualifications and constantly improved financial industry chain.

In the process, Oceanwide Holdings increased the investment in Minsheng Securities and injected more capital into Minsheng Trust to become a controlling shareholder. It launched the Internet financial platform MJS, successfully acquired Quam Limited, a full license broker listed on Hong Kong Stock Exchange, and participated in the acquisition of Genworth Financial, the largest long-term care insurance company in the United States. As a result, the Group's financial service layout continued to expand while its strength continued to enhance.

Minsheng Trust was the biggest "highlight" of Oceanwide Holdings in the financial sector in 2016. By increasing the registered capital to RMB 7 billion, Minsheng Trust has leapt to top 10 in the industry in terms of capital strength. On top of that, Minsheng Trust firmly promoted strategic transformation, adjusted and optimized the supporting mechanism for the five strategic focuses of "investment, financing, investment banking, capital management and wealth", and actively cultivated innovative business. In 2016, the revenue and net profit of Minsheng Trust amounted to RMB 1.921 billion and RMB 951 million, representing a year-on-year growth of 77.54% and 143.22%, respectively. As for the business increments, investment banking, asset management and other innovative business took up nearly half.

While expanding the layout of the financial sector, Oceanwide Holdings also followed the trend of globalization and acquired US's largest long-term care insurance company Genworth in 2016 and the full-license HK listed broker Quam Limited in early 2017, in a bid to form a complementary financial business format aligned with demands of the domestic market.

Despite the significant improvements of the finance business as a whole in 2016, the management of Oceanwide Holdings already started to eye at the higher level of "financial services system". In the annual report, Oceanwide Holdings states that the finance sector will be the new driver of its development, and candidly admits that "there has yet formed obvious scale advantage and comparative advantage". In 2017, Oceanwide Holdings will guide each financial business unit to seriously enhance internal strength and speed up the pace of business transformation and innovation on the premise of effective risk control, so as to form a complete financial services system as soon as possible.

Focusing on industry-finance integration

Industry-finance integration is another dimension of Oceanwide Holdings' development strategy following the finance business.

In terms of sector layout, Oceanwide Holdings hopes to fully utilize the power of capital to boost the real economy. Such a way of thinking is fully represented in its investment business. In 2016, the strategic investment business unit of Oceanwide Holdings invested in Wanda Media, BAIC BJEV, and WeWork in priority. Meanwhile, new areas exploited by the industry business unit were advanced steadily. Currently, the construction of the two power projects located in Medan and Banyuasin of Indonesia is in full swing.

In the annual report, Oceanwide Holdings states that a global financial enterprise with industry-finance integration is its goal of transformation and development. Through the continued expansion of finance, real estate, strategic investment and other business, the Group has preliminary formed an industry layout and pattern with its own characteristics, which lays a solid foundation for industry-finance integration and resource integration and optimization.

"In the future, Oceanwide Holdings will further promote the in-depth interaction and coordination of financial services and industrial operations, and constantly improve industrial values through financial products and tools. It will further innovate in business models, optimize capital efficiency, and enhance profitability. At the same time, the Group will further strengthen the power of financial capital and form a virtuous cycle of industry and finance, to drive the rapid growth of corporate values through industry-finance integration," reports the annual report.