- Chief Business Intelligence
- Chief Business Intelligence
Introduction: Wang Jianlin is still selling heavy assets, the former richest man, now he has changed the norm and abandoned the real estate industry where he made his fortune, is it to judge the situation and change his strategy or have to pay for his mistakes?
From the halo of "China's richest man" and "real estate tycoon" to selling assets one after another, it took Wang Jianlin 8 years to change.
During this period of time, Wang Jianlin took every step beyond everyone's expectations.
In 2016, he surpassed Li Ka-shing, a real estate old-timer, and Ma Yun, who stood firmly on the Internet, became the first person to make a fortune in a commercial plaza.
At that time, Wang Jianlin was infinitely beautiful, and even Wang Sicong could walk sideways in the entertainment industry. But 8 years have passed, not to mention that things are not so desolate, and Wanda is indeed different from the past.
The news that Wang Jianlin has spread in the past two years is that he has a debt of 400 billion yuan for a while, and he is going to follow an "asset-light strategy" for a while, which is a little incomprehensible.
But what is certain is that Wang Jianlin is not Xu Jiayin, he is not lying flat, but has been acting. This makes people wonder, what kind of big chess is Wang Jianlin playing in the next game?
Beijing Wanda Plaza changed hands
Wang Jianlin's business empire collapsed once again
Entering 2024, Wang Jianlin is still on the way to sell.
This time, it was the turn of the Beijing Wanda headquarters. According to the company's data, two well-known venture capital companies took over, accounting for 99.99% and 0.01% of the shares respectively.
(Source: Tianyancha)
It is worth noting that on March 20 this year, Tianyancha data showed that Dalian Wanda Commercial Management Group Co., Ltd. added a new equity freezing information, involving an amount of up to 16.205 billion yuan, and the executed enterprise was Dianxin Damon Commercial Management Co., Ltd.
Pictured: Wanda's 16.2 billion was frozen
Earlier, Bloomberg reported that a company owned by Dalian Wanda Group had agreed to sell British yacht manufacturer Sunseeker International to Lionheart Capital, and Wang Jianlin's yachting dream was shattered.
So far, Wang Jianlin has changed hands from the first stronghold in 2008 to the north, I don't know what Wang Jianlin's mood is now, is he lonely or unwilling or has other plans?
However, it is certain that after selling the assets that "seem to be the least sellable", Wang Jianlin can finally completely free up his hands to implement his "asset-light strategy".
But no matter how the words are disguised, Wang Jianlin's wave of asset reductions still reflects the crisis that Wanda Group now has to be saved. Most likely, there is a cash flow problem, otherwise why are you in such a hurry to cash out?
Recalling that in 2016, Wang Jianlin not only owned 136 Wanda Plazas and countless real estate projects, which seemed to be an unparalleled position, and even Ma Yun at that time had to retreat by three points. Compared with traditional real estate business, almost no one thinks that real estate cannot beat the Internet.
It is Wanda Real Estate's astonishing expansion that has given Wang Jianlin the confidence to have "absolute right to speak". Wang Jianlin's strategy also shows stubbornness, and he will buy and buy globally at the expense of high debts.
(Source: Tiger Sniffing Network)
In Wang Jianlin's view, in the context of globalization, overseas shopping and the layout of global business grids seem to be another potential wealth growth point after real estate.
With a wave of his hand, he bought European Football Club, Spanish Madrid Club, British Sunseeker Yacht Company, Legendary Pictures, AMC Cinema Chain, etc., and extended other businesses with super gold-absorbing ability to Wanda Plaza's industrial network.
However, behind the arrogant "global purchase" is Wanda's increasingly high debt.
Wanda's negative assets once reached 400 billion. This huge debt inevitably links Wanda with another "well-known friend" Xu Jiayin, who owes trillions of debts.
But Mr. Wang's large investment did not bring Mr. Wang the results he wanted, and Wanda's credit was seriously overdrawn by the huge debt he had built up with a loan investment.
But Wang Jianlin obviously still has a pattern better than the Xu family, directly denying that Wanda is insolvent, and also pulling out Vanke as a shield, declaring that "the only companies whose net assets can reach this level (190 billion) are Vanke and Wanda."
Even so, many people are still a little worried about Wanda Group's move of "borrowing at home and sweeping goods abroad", and some people speculate whether Wang Jianlin is "transferring assets". It wasn't until Wang Jianlin spoke with practical actions that he sold more than a dozen Wanda Plazas in a year and repaid debts of 200 billion yuan, which blocked Youyou's mouth.
However, to say that Wanda Group has no problems at all now, it is still a bit of a.
If the 2017 Malaysia City turmoil and the official double kill of stocks and bonds did not hurt Wang Jianlin fundamentally, then Wanda Group at that time was still very capable of fighting in the real estate industry.
Wanda, once the "heart home" of the middle class
Wanda's real estate was once a symbol of the middle class for a while.
Wanda Group's early money-making logic was to build Wanda Plaza in a remote place first, use the heat of the business district to raise the price of surrounding land, and then build and sell houses.
Relying on land development, Wanda Real Estate has become the "eldest son" of Wanda Group. It is the pillar of Wanda Group, and in the golden age of China's property market, Wanda Construction has become the first choice for the middle class.
Going out is the business district centered on Wanda Plaza, whether it is transportation or shopping, supporting facilities can keep up. And because the development is not long, the housing price is not as expensive as the city center, which can be said to be extremely cost-effective.
At that time, Wanda Plaza was basically the only large shopping mall that expanded rapidly, and the Wanda brand soon stood in the hearts of many middle class.
Perhaps Wang Jianlin also had Wanda's experience in expanding in China back then, so he wanted to draw a gourd in the same way, and do this kind of work abroad, taking the road of rapid expansion.
The result was unsatisfactory, the speed of overseas investment funds could not keep up, and Wanda Group's negative equity snowballed bigger and bigger.
The current Wanda Real Estate can no longer enter Wang Jianlin's eyes. Wang Jianlin's "asset-light strategy" mentioned many times, the first is to "open" Wanda Real Estate, Wang Jianlin has sold 14 Wanda Plazas, and slowed down the pace of real estate development.
In addition to the crisis in Wanda's current capital flow, which is not enough to support the original route, what really makes Wang Jianlin have to give up borrowing and expand is the poor property market. Local governments have resorted to various means, but they have not allowed the property market to pick up.
Source: Shangguan News
In the past 30 years, real estate developers seem to be melting in the spring breeze, as long as they can get a batch of start-up capital, they basically will not lose too ugly.
But not now, Chinese consumers are fanatical "desensitization" to the property market, the rise in housing prices has made many consumers see through the law of the property market, as long as someone buys, it will definitely rise again, not to buy is the "way to save yourself".
In the face of the sunset in the real estate industry, Wang Jianlin and Li Ka-shing are leaving.
Real estate tycoons crossed over to entertainment and won the crown of "King of Cinemas".
In the era when real estate tycoons everywhere made money and only thought about expansion and redevelopment, Wang Jianlin chose to take a long-term view and use the cultural industry to make money, rather than casually investing some money to make a reputation. It can still be seen that Wang Jianlin's unique vision is different.
Wang Jianlin is keenly aware that in the future, everyone's consumption will not only stay at rigid demand, but also the demand for entertainment will sooner or later arise in the context of great economic growth.
He is very good at taking the lead in investment, and it can be said that Wanda is at the forefront of the times to a large extent, and wins the opportunity to occupy the market by laying out in front of the tuyere.
Holding the "cornucopia" of Wanda Plaza, Wang Jianlin is not willing to just play the role of a "rent collector" in a shopping mall.
After buying a foreign AMC theater chain, Wang Jianlin has a card for the movie in his hand. Backed by Wanda Plaza, a landmark spread across the country, the market coverage of Wanda Cinemas is also rising sharply.
2010 was the starting point of China's film commercialization, Wang Jianlin took advantage of the trend, and Wanda Cinema was tied to Wanda Plaza, and its name as a city landmark was more solid.
Wang Jianlin seized the opportunity that there were not many domestic cinemas at that time, and used Wanda Plaza as a fulcrum to develop Wanda Cinema and successfully cross-border entertainment.
It can be said that Wanda Plaza has supported many ways for Wanda Group's external expansion and woven the industrial chain of Wanda.
Wang Jianlin has been laying out the cultural industry since 2009, and he also knows that in order to stand out in the real estate industry, he must not only rely on strong financial resources, but also rely on the entertainment industry that some industrialists despise. Wang Jianlin's strategy of combining real estate and entertainment can be described as a combination of rigidity and softness, grasping both hands and grasping two outlets.
The big guy with frequent golden sentences, why is he silent now
Wang Jianlin, who has experienced two heavy blows, seems to have lost the confidence to guide the country back then.
In the early years, Wang Jianlin's painting style was still "Tsinghua University and Peking University are not as bold as those who are" and "set a small goal first".
But after the news of Wanda's financial crisis in 2017, Wang Jianlin stayed away from the center of public opinion, and even Wang Sicong has been much more low-key in recent years.
When I saw Wang Sicong appear again, it turned out to be a photo of him sitting upright and discussing with government officials. I don't see how I mingled with Internet celebrities back then.
At the beginning of this year, Wang Jianlin seemed to have accelerated the pace of selling real estate to cash out, and actively sought investment.
Finally, we waited for the investment of PAG, Mubadala and others. The investment of 60 billion yuan can bring a respite to Wanda's precarious cash flow.
However, the situation of making up for it everywhere is not caused by a day.
In 2017, Wang Jianlin still recognized the strategy of overseas expansion, and the first direction was Southeast Asia. Wang Jianlin set his sights on the development rights of Malaysia's Malaysia City.
Pictured: Malaysia City
At this time, Wang Jianlin is no longer the real estate novice who grinded the development rights of the district government with his bare hands, but the group boss who owns countless Wanda Plazas across the country.
At this time, Wang Jianlin was obviously full of confidence and thought that it would be easy to win the development rights of Malaysia City. It is hoped that Wanda Group will take root in Malaysia in one fell swoop.
gave a bid price higher than twice in one go, but he didn't expect his hardness to meet a harder one, China Railway Group. At that time, in response to the national policy of the Belt and Road Initiative, China Railway Group went to Malaysia to fight for the development right of Malaysia City, but Wang Jianlin did not expect to come out to cut off Hu. At that time, Wang Jianlin had the title of the richest man on his head, and he couldn't help but get a little carried away.
In the second half of the same year, Wang Jianlin ushered in the first blow, and the China Banking Regulatory Commission investigated Wanda Group's overseas investment loans, which caused a butterfly effect, and Wanda's stock market and bond market both collapsed.
(Pictured: Huge goodwill impairment caused by investment and M&A, Wanda announcement)
Wang Jianlin could only turn around, solve the debt problem first, and fill the hole in time with fast and accurate realization. But what I didn't expect was that after a few years of silence, I waited for a worse situation.
After the failure of Zhuhai Wanda's listing, Wang Jianlin's wave of leverage operation completely failed, and the imminent 30 billion shareholder repurchase funds challenged Wanda's cash flow.
Coupled with the sluggish property market, Wanda Group's business empire created by taking advantage of consumption upgrading is no longer what it used to be.
The failure of the investment in Malaysia City was a turning point, but it may not have hurt Wanda's roots. What really makes Wanda Group usher in a major crisis is after 2022. In 2022, the property market sales fell by nearly 50% compared to previous years, and even the amount of investment continued to decline.
(Source: National Bureau of Statistics)
Not to mention that Li Ka-shing can't hide from the changes in the property market, no one can use chopsticks to provoke a pool of stagnant water.
Write at the end
Chengye Real Estate, Defeat also Real Estate, Wanda's high-rise buildings were built by demand, and they were also built in the golden age of China's property market. Today, everyone is chanting "2024, if you don't go to sea, you will be out", Wang Jianlin's previous global buying strategy may be successful, but the difference is in the timing.
Wang Jianlin had just woven the net, and the epidemic came, which was a situation that no one expected, not to mention how much the epidemic affected consumption on the surface, it must have changed from the perspective of the business pattern alone. Some unsuitable companies can only regret to exit, or find another way.
What do you think of the ruthless Wang Jianlin? Do you think Wanda Commercial Management is likely to be successfully listed? Welcome to leave your opinions and opinions in the comment area.
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