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china.com.cn: Oceanwide Holdings made significant progress in “cutting leverages” by reducing interest-bearing liabilities by about RMB35 billion in 1H19


Oceanwide Holdings, a SZSE-listed company, published its 2019 interim report on August 27. According to the report, as at the end of June 2019, the company reported total assets at RMB184,122 million approximately, and net assets attributable to equity holders of the listed company at RMB21,743 million; in the first half year, the company realized a revenue of RMB5,170 million, 80% of which was contributed by its financial business; it realized a net profit attributable to equity holders of the listed company of RMB1,737 million, up 30.28% year on year.

Judging from the interim report, the balance sheet structure of Oceanwide Holdings has been significantly optimized, with interest-bearing liabilities declining by RMB34,599 million from RMB110,251 million at the end of 2018 to RMB75,652 million , and the asset-to-liability rate falling by 4.22 percentage points over the end of 2018.

As early as at the beginning of 2014, Oceanwide Holdings began to carry out strategic transformation, proposing to incorporate financial and strategic investment segments with big development potential on the basis of bringing the existing advantages of real estate business into further play, and thus build the Company into a comprehensive listed company offering financial, real estate and strategic investment services.

In early 2019, Oceanwide Holdings sold its major real estate projects in Beijing and Shanghai to Sunac China Holdings Limited. The 2019 interim report shows that the above-mentioned sale brought back cash inflows of hundreds of millions yuan, helping Oceanwide Holdings to significantly improve its balance sheet structure. In this way, Oceanwide Holdings realized asset-light operation by making plans in advance while real estate developers generally saw a liquidity squeeze.

Recently, Oceanwide Holdings has offered a plan of honoring about RMB1.84 billion “18 Oceanwide Holdings 02” privately-offered bonds in advance. Total payment of principal and interest will amount to RMB2.0 billion, implying that the company enjoys ample liquidity.