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Preface
Wang Jianlin can finally sleep well.
Wang Jianlin thinks that everyone should be like thunder, Wang Sicong's father, the boss of Wanda Group, and the business tycoon who used to be on an equal footing with Ma Yun, Ma Jianling, and Xu Jiayin.
However, after the collapse of Evergrande, Wanda's business situation is not optimistic, so that many people are curious, will Wanda repeat Evergrande's mistakes in 2023?
So why is that?
Ask Wanda to be spared
The former Wanda is really beautiful, and the Wanda Plazas all over the country have become a symbol of Wang Jianlin's business legend.
However, it is a pity that Wanda's pillar industry is actually no different from Evergrande, and it is also real estate.
Although it is said that before the arrival of China's real estate winter in 2019, Wang Jianlin broke off his tail to survive and sold a large amount of real estate, so that Wanda could recover in time and not be as catastrophic as Evergrande.
However, after losing the real estate funding, Wanda's business situation has also deteriorated.
Indeed, Wanda has also tried to transform, such as Wang Sicong, which actually represents Wanda's efforts in the film and television industry and the entertainment industry.
Unfortunately, later data proved that Wanda's transformation efforts were a failure.
Especially in the special period of the three-year epidemic, Wanda's industry has ushered in all-round losses!
In 2020, official data showed that Wanda's interest-bearing loans amounted to 181.7 billion yuan, although this figure seems incomparable with Evergrande's more than 2 trillion yuan, but Wanda's debt growth rate is quite amazing.
In 2021, Wanda's debt has exceeded 400 billion!
In addition, since 2018, due to the impact of transformation and market fluctuations, Wanda's assets have shrunk significantly. For example, in 2018 and 2019 alone, the amount of assets shrunk by as much as 170 billion yuan!
Therefore, although Wanda's days are stronger than Evergrande's, they are also limited.
And when the time comes to 2023, with the end of epidemic control, everyone thinks that China's economy may usher in a round of retaliatory recovery in the short term.
But unfortunately, everyone has run out of money, and after the epidemic, the collateral data of 800 million people has made the consumption of the entire Chinese society weak.
And Wanda couldn't wait for its own spring, but continued to rely on cheap asset sales to barely maintain its operation.
For example, in July this year, Wanda Group's 49% stake in the film industry was sold to China's Ruyi Company for 2.226 billion yuan.
But that's not enough!
Because in May this year, Wang Jianlin borrowed another 40 billion debt in the name of Wanda Group!
In the past three years, Wanda's net profit has not exceeded 20 billion!
Insolvency has become Wanda's cruel status quo, and it is no wonder that Mr. Wang Sicong, who was once called the "principal" and "national husband" by many netizens, no longer dares to come out to wave, and he has no capital!
Among the many creditors, the most headache for Wang Jianlin is Taimeng.
Because in 2021, Wang Jianlin, who was still very confident in himself at that time, signed a VAM agreement with the group on Zhuhai Wanda Commercial Management's investment, with an amount of up to 38 billion yuan!
It's a pity that with Wanda's current situation, the agreement fails, and it is already a sure thing, if the other party really holds on to this agreement and does not let go, then the 38 billion may really become the last barbell that crushes Wanda.
Fortunately, some time ago, PAG Investment Group has reached an agreement with Wanda, that is, they are willing to cancel the VAM agreement and invest in Zhuhai Wanda Commercial Management again.
PAG's move not only solved the urgent need for Wanda's debt, but also temporarily stabilized many investors who were skeptical of Wanda.
It's really a relief in the snow.
So, where is this PAG group, which can almost decide Wanda's life and death at a glance?
Hide the big guy behind the scenes
Most of them may not have much impression of PAG, after all, if you are not a person in the financial circle, you really will not know about this investment company headquartered in Hong Kong.
But if you know the company, you will know how good he really is.
That's one of the top 10 private equity bigwigs in the whole of Asia! It is said that the company now has $50 billion in assets under management!
50 billion US dollars is equivalent to RMB, that is, more than 300 billion, it seems that there is no way to compare with Wanda and Evergrande, but it should be noted that the 50 billion US dollars are all cash, not real estate that needs to be sold at a discount!
And the current manipulation of this company is also a big man who let Wang Jianlin go, named Shan Weijian.
Shan Weijian and Wang Jianlin were born in the same year, but because his main scope of activities is not in Chinese mainland, coupled with the fact that he has always been low-key, except for a few bigwigs in the private equity circle, not many people really know him.
But although Shan Weijian's popularity cannot be compared with Wang Jianlin, his life experience is no worse than Wang Jianlin.
According to the information that can be found on the Internet, after graduating from the University of International Business and Economics, Shan Weijian was admitted to the University of San Francisco in the United States, and then went to the University of California to find it, and obtained a master's degree and a doctorate degree in these two universities respectively.
During his college years, Shan Weijian was recognized by many companies in the United States for his excellent financial investment and financial management skills, and successfully joined the World Bank as soon as he graduated!
At the same time, he also served as a professor at the University of Pennsylvania and founded the China Economic Review, which has been widely recognized by the academic community.
In 1993, with the formation and development of China's market economy system, J.P. Morgan, which sensed that there was a huge business opportunity in China, appointed Shan Weijian as the managing director of J.P. Morgan Group in Asia and concurrently served as an independent director of Bank of China Hong Kong.
So, what did he do after returning to China?
The answer is waiting.
Like a seasoned hunter, he waited quietly in Hong Kong for five years, observing for five years, until the Asian financial crisis of 1988!
In the Asian financial crisis, with the exception of China, the rest of East and Southeast Asia basically fell into the pit.
Japan claims to have lost 30 years of its economy, and South Korea is almost financially bankrupt.
Taking advantage of this opportunity, in 1998, he first took over part of the shares of Sinbashi Bank, and then, in 1999, Shan Weijian succeeded in taking over the First Bank of Korea, which was already suffering serious losses! This opened the way for foreign capital to directly participate in the reform of China's banks.
Relying on this achievement, Shan Weijian was recognized by the Morgan Group, and thus began a 20-year career as the uncrowned king.
So, what did Shan Weijian do during this period?
Business Legends
In 2001, with China's successful accession to the WTO, a new round of challenges and opportunities also followed.
Of course, if you can jump through those big pitfalls.
In 2002, in order to better integrate with the international market, China's banks again faced large-scale reforms.
Among them, Shenzhen's development bank is the top priority.
There was no way, the bank's non-performing assets at that time were already as high as tens of billions! If we couldn't get rid of this burden, let alone engage in the economy, we would have to be killed by our own thunderstorm.
As a result, the Shenzhen Municipal Government issued an announcement on the transfer of equity, but unfortunately, because everyone knows that this is a super pit, no one is willing to take over.
With one exception, Shan Weijian, who took the bank in a wave of sighs, a move that made him the first person to use foreign capital to control a commercial bank in Chinese mainland.
So, is it a blessing or a curse to take over the development bank?
Of course, it's a big profit!
Relying on the signboard of Shenzhen Development Bank, Shan Weijian successfully developed his own business network in the mainland, and made a profit in time after helping the development bank turn losses into profits.
It is also by virtue of this excellent operation that in 2006, Xinqiao Bank led by him was merged by TPG and officially started his life as a private equity boss.
A few years later, Shan Weijian, who has become a legend in the private equity industry, once again retired bravely to join PAG.
Under his leadership, PAG has invested in Wanda, Wilmar, Baotou Steel, Lenovo, Alibaba and other companies since the beginning of the 21st century, and each investment has made him a lot of money, which has led to him being called the king of private equity by insiders.
Even during the pandemic, PAG has maintained an astonishingly positive growth, which is the envy of the bosses who are struggling with the economic downturn.
Speaking of which, some people may ask, since he is so shrewd, what is the matter with investing in Wanda?
It turned out that in 2021, Shan Weijian united 21 companies and institutions and signed a VAM agreement with Wanda for 21.17% of Wanda Commercial Management at a price of 38 billion.
That is, if Wanda does not successfully go public by the end of 2023, then not only will they get these shares, but Wanda will also have to pay interest at an interest rate of 8%.
We all know what happened later, Wanda's operating conditions were not good this year, and listing was purely a dead end, but if you don't go public, your stock price will have to be packaged and taken away at a low price.
Just when everyone thought that Wang Jianlin was likely to become the next Xu Jiayin, the peak turned around, but Shan Weijian chose to let Wanda go.
As for the reason, the purpose of acquiring a company is to make a profit, and the purpose of gaining control is also to increase the value of the company and obtain greater profits.
In fact, although Wang Jianlin was lucky to pass this hurdle, the price paid was also quite huge, and the original share transfer quota of only 21.17% was increased to 60%!
This also means that Wang Jianlin has lost his dominance over Wanda, but at least it is much better than being ruined and bankrupt, isn't it?
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