Dalian Wanda Group’s revenue has fallen for the first time in at least 11 years after a slump in its property business outweighed growth from its entertainment interests.
Sales last year fell 14 per cent from 2015, while revenue at Dalian Wanda Commercial Properties, the group’s real-estate unit, dropped 25 per cent to 143 billion yuan (US$20.8 billion).
Wanda’s operating income rose 3.4 per cent to 255 billion yuan, while profit grew more than 10 per cent, it said, without giving details.
Wanda’s owner billionaire Wang Jianlin, China’s second-richest man, has been acquiring Hollywood assets – he bought movie production company Legendary Entertainment last year – to help Wanda diversify away from its real-estate roots.
He told employees at Wanda’s annual meeting in Hefei, the capital city of Anhui province in eastern China, that Ffan.com, a unit that includes internet financing and credit-rating businesses, will raise 10 billion yuan via a private placement this year. He ultimately plans to list the unit by 2020 and target profit of more than 10 billion yuan.
Wang delisted Dalian Wanda Commercial Properties in Hong Kong last year with the idea of eventually seeking a listing in mainland China, where valuations tend to be higher. He has taken an “asset-light” strategy for his real-estate business in recent years, reducing reliance on property sales and increasing his focus on leasing and management.
Wanda Cultural Industry Group, which oversees most of Wanda’s theme parks, film production and exhibition businesses, saw sales climb 25 per cent to 64.1 billion yuan last year.