China Oceanwide Holdings Group Co., Ltd. (“China Oceanwide”) disclosed its 2018 interim report on 30 August, stating that it earned an operating income of about RMB5,089 million, net profit increased by 47.56% year on year to RMB1,334 million, net cash flows from operating activities soared by 136.96% to RMB4,174 million, and total assets exceeded RMB200 billion.

Financial business, which made progress while keeping performance stable, was the key factor that contributed to the sharp increase of profit. Year to date, the tightening of financial supervision has been escalating, a series of far-reaching regulations such as the new asset management rules have been released, and the overall liquidity in the market has been in increasing squeeze. In spite of these constraints, China Oceanwide still managed to significantly grow the operating income and net profit of its financial business segment by 26.75% and 54.43% respectively year on year in the first half year.

Specifically, China Minsheng Trust carried forward a good development momentum, seeing a year-on-year growth of 88.55% and 71.57% to RMB1,642 million and RMB885 million respectively, entering the top ranks of the industry’s first echelon in terms of all core indicators, and fueling the overall growth of financial segment of China Oceanwide. Asia Pacific P&C improved its premium income, combined cost ratio and other core business indicators on a steady footing, and basically met the business goals for the first half year.

Speaking of strategic investment, China Oceanwide, on the basis of conducting good post-investment management for the investments of BAIC BJEV, Wanda Media, WeWork and QingCloud, facilitated strategic coordination and provided value-added services. So far, part of the projects have had their value appreciated remarkably.

Another highlight of the interim results is the net amount of cash flows from operating activities. Despite the tightening of market liquidity in the first half of 2018, China Oceanwide has improved its cash flows from operating activities significantly, registering a positive cash flow balance of approximately RMB4.17 billion.

In addition, despite that the Shanghai real estate project failed to be on sales in the first half of the year due to the policy factors, it was already open for sales in August thanks to the unremitting efforts of China Oceanwide. And the project is well-sold now. Moreover, China Oceanwide will strive to get the pre-sale license for the Beijing project as soon as possible and continue to promote the ongoing sales of the Wuhan project, in an effort to better bolster business performance and cash flows.

Notably, in the context of “de-leveraging and tightening supervision” in the first half of 2018, the financing channels of real estate developers have obviously tightened, and China Oceanwide has also strengthened the management of liquidity risks to ensure the stable operation.

So far, the company’s RMB7.2 billion worth privately-offered corporate bonds, RMB1.4 billion medium-term notes and RMB3 billion debt financing plans have been approved and will be issued at the right time. At the subsidiary level, Oceanwide Wuhan has introduced an equity investment. Besides, it is said that China Oceanwide is negotiating with many prospective investors about the investment in the subsidiaries.