China’s Wanda says revenue fell in 2016
Company’s turnover down 14% in 2016 as it records a decline in revenue for the first time in at least 11 years
China’s conglomerate Wanda, owned by the country’s richest man, said its turnover fell by 14 per cent in 2016 despite a surge in receipts in the entertainment sector where it has multiplied its investments
Wanda, which is owned by Wang Jianlin and has been on a high-profile overseas acquisition spree in recent years, said it had recorded a decline in revenue for the first time in at least 11 years.
The group did not provide a detailed breakdown, but in 2015 it reported revenues of 290.2 billion yuan, which would imply a turnover of roughly 250 billion yuan in 2016. Wanda pointed to a sharp slowdown in commercial real estate, to an oversupply of shopping malls in Chinese cities, and to an overcrowded online market to explain the drop in revenue.
Commercial real estate revenues fell by 25 per cent in 2016, according to a statement released by the group on Saturday, but added that the company had opened 50 new “Wanda Plazas”.
Wanda Commercial Properties, which was a Hong Konglisted subsidiary, was also removed from the stock market last year, but could be reintroduced to the Chinese mainland soon. However, revenues generated by the conglomerate’s culture and tourism activities jumped 25 per cent to 64.1 billion yuan (€8.7 billion), with a rise of 31.4 per cent in the film sector. Wanda is trying to diversify into entertainment, tourism and sport to reduce its dependence on real estate.
In January, Wanda spent $3.5 billion to purchase Legendary Entertainment, the company behind the Batman trilogy and Jurassic World , as well as the upcoming The Great Wall, starring Matt Damon and directed by Chinese filmmaker Zhang Yimou.
In November, it acquired the maker of the Golden Globes awards show, Dick Clark Productions, for “approximately $1 billion”.
Wang said the attention from the US Congress reflected the Chinese company’s growing influence in the country.