Chairman defends Wanda’s financial situation

Wang Jianlin, chairman of Dalian Wanda Group, defended the company’s financial position in a statement released on Thursday.

Observers and investors concerned about the liabilities of Wanda Commercial Properties have also questioned Wanda’s business strategies.

“While most are actually concerned, some are spreading rumors and attempting to make trouble,” Wang said in a statement Wanda sent to the Global Times on Thursday.

“As the saying goes, one may harm others to benefit himself, but I don’t really see how such rumors can benefit those who spread them,” noted Wang.

With cash on hand of 100 billion yuan ($ 14.8 billion) and 68 billion yuan to be received from the deal with Sunac China Holdings and Guangzhou R& F Properties Co, Wanda Commercial has about 170 billion yuan in cash, Wang said in the statement.

He also said that the company has decided to repay most of its bank loans.

Wanda now owns 33 million square meters of commercial property, with rent expected to surpass 33 billion yuan in 2018, said the statement.

In terms of rent, Wang forecast that Wanda Commercial will have an average annual growth rate of about 20 percent over the coming five years, showing the company’s business is still sound. As for the deal with Sunac and R& F Properties, Wang said it will bring “a significant reduction in Wanda’s liabilities and extensive ( inflow) of cash.”

Shares in Hong Kong- listed R& F Properties and Sunac China Holdings jumped on Thursday after the two signed deals with Wanda in Beijing on Wednesday.

Sunac China closed up 14 percent to HK$ 19.6 ($ 2.5) on Thursday, while R& F Properties closed up 6.8 percent to HK$ 13.8.

Wanda Hotel Development closed up 6.5 percent to HK$ 0.82.

Under the agreement, Wanda Commercial Properties will transfer 77 hotels to R& F for 19.91 billion yuan, as well as a 91 percent stake of 13 cultural tourism projects to Sunac for 43.84 billion yuan.

The total value of the transaction will be 63.75 billion yuan.

After the transaction, Wanda’s loans and bonds will reach about 200 billion yuan. A refundable deposit of 2 billion yuan will be payable by R& F Properties to Dalian Wanda within two business days after the signing of the agreement, according to a filing R& F Properties sent to the Hong Kong Exchanges and Clearing on Thursday.