Di­ver­sity pays big div­i­dends for Wanda

China Daily (Hong Kong) - - BUSINESS - By REN XIAOJIN and HU YUANYUAN

Prop­erty de­vel­oper turned con­glom­er­ate Dalian Wanda Group Co Ltd on Thurs­day re­ported that rev­enues from its di­ver­si­fied op­er­a­tions con­vinc­ingly out­per­formed its core prop­erty busi­ness in the first half of 2017, as the ben­e­fits con­tin­ued to flow from the re­struc­tur­ing of its busi­ness port­fo­lio.

Wanda has been di­ver­si­fy­ing, through buy­ing a slew of as­sets in var­i­ous sec­tors in­clud­ing cinema chains and sports clubs, and has been a high pro­file buyer of as­sets internationally.

The group said first-half year to­tal rev­enue came in at 134.85 bil­lion yuan ($20 bil­lion), up by 12.4 per­cent year-on-year. Of that, prop­erty op­er­a­tions gen­er­ated 56.83 bil­lion yuan, kick­ing in 42.1 per­cent of the to­tal, ac­cord­ing to its half year re­port re­leased on Thurs­day.

Non-prop­erty op­er­a­tions in­clud­ing en­ter­tain­ment, fi­nan­cial and in­ter­net tech­nol­ogy, contributed 57.9 per­cent of the to­tal, gen­er­at­ing 78.02 bil­lion yuan in sales.

Af­ter out­per­form­ing the prop­erty sec­tor in 2016 for the first time, the lat­est fig­ures show the growth tra­jec­tory of the non­prop­erty as­sets has shown no signs of slow­ing down.

“This shows Wanda Group is on the right track with its busi­ness reshuf­fle, mak­ing it more di­ver­si­fied rather than it just be­ing a prop­erty com­pany.” said Grant Ji, ex­ec­u­tive di­rec­tor of cap­i­tal mar­kets for North China at CBRE Group

The re­port found that the rel­a­tive con­tri­bu­tion of Wanda’s com­mer­cial prop­erty op­er­a­tions con­tin­ued to shrink. That’s as its Chair­man Wang Jian­lin vowed to ex­pand his group into var­i­ous ar­eas in 2018 — from man­u­fac­tur­ing and cul­ture to fi­nance — rather than it just re­ly­ing on be­ing a real es­tate gi­ant.

Late last year the bil­lion­aire cut the group’s 2017 rev­enue tar­get for com­mer­cial prop­erty by 64 bil­lion yuan last year to 100 bil­lion yuan, high­light­ing the speed of the trans­for­ma­tion of the rev­enue base.

Wanda Cul­tural In­dus­try Group contributed 30.8 bil­lion yuan to rev­enues in the first-half year, up 5.9 per­cent year-on-year.

Wanda’s Fi­nan­cial Group H1 rev­enue surged 46.8 per­cent to 20.6 bil­lion yuan, achiev­ing 80 per­cent of its an­nual rev­enue tar­get.

The Fi­nan­cial Group, launched in 2015, has re­tained strong growth mo­men­tum. Last year it recorded 20.9 bil­lion yuan in rev­enue, well above its full-year tar­get.

Wanda’s IT unit posted first half rev­enue of 2.56 bil­lion yuan, also well above its tar­get. Ac­tive users on Ffan.com, Wanda’s In­ter­net-plus plat­form reached 191 mil­lion, up by 40 mil­lion from 2016.

Wanda Group’s to­tal rev­enue in first half

Contact the writ­ers at renx­i­ao­jin@ chi­nadaily.com.cn

HE HAIER/FOR CHINA DAILY

A man dressed up as a ro­bot plays around with two kids at a Wanda cinema in Qing­dao, Shan­dong prov­ince.

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