Wanda suffers 10.8pc revenue drop in 2017

BEIJING: Chinese conglomerate Dalian Wanda Group’s revenue fell by 10.8 per cent last year, the second consecutive year it declined, as the debt-laden group sold off property assets and faced increasing scrutiny from regulators and lenders.

The property-to-entertainment group, owned by tycoon Wang Jianlin, reported 227.4 billion yuan (RM140 billion) in revenue for last year, while net profit remained flat compared with 2016, according to a statement on the company’s website. It did not reveal the profit figure.

Total assets, of which 93 per cent are domestic, declined 11.5 per cent to 700 billion yuan.

The group came under pressure last year from a government crackdown on perceived risky spending overseas and high levels of corporate debt. Banks heightened their scrutiny and ratings agencies downgraded Wanda’s property unit to junk status.

The conglomerate was expected to announce the sale of two Australian property projects in the coming days, said sources, the latest in a string of asset sales as the firm looked to reduce its portfolio.

Wanda said last week it had agreed to sell its interest in the London luxury development project, One Nine Elms, for US$81 million (RM318.33 million).

Wang said Wanda had greatly reduced its debt and would use its “limited cash” in developing Wanda Plazas, the group’s core business.

“Wanda invested in a few projects overseas in the past few years and now we have decided to clear all overseas debt,” said Wang at the group’s annual meeting. Bloomberg