The future of Wanda Films may no longer be surnamed Wang. On December 6, Wanda Film was suspended from trading on the Shenzhen Stock Exchange, and the company said that its shareholder and actual controller, Wang Jianlin, planned to transfer 51% of the shares of Wanda Investment, a shareholder of Wanda Film, to Shanghai Ruyi Investment Management Co., Ltd. This equity transfer will lead to a change in the actual controller.
This is not the first time Mr. Wang has sold a stake in Wanda Films. In July this year, he sold his stake in Wanda Film in three installments, in exchange for nearly 7 billion yuan in cash, which solved the urgent need for Wanda's upcoming bonds. At that time, people were puzzled by Wang Jianlin's sale of Wanda Film's equity, after all, the film market has rebounded significantly, and this year's "summer file" even exceeded the pre-epidemic level. However, after three consecutive equity sales, Wanda Culture Group and persons acting in concert still hold more than 31.3% of Wanda Film's shares, and the actual control has not changed.
However, this time, Wang Jianlin will completely lose the identity of the actual controller of Wanda Film. Why did he sell the equity of Wanda Film so ruthlessly? To put it simply, it is two words - lack of money. In order to survive, he had to make such a decision.
Looking back on history, Wang Jianlin is famous in the real estate circle for his courage to kill and decide. In 2017, when Wanda fell into a debt crisis, the sky-high debt of more than 400 billion yuan made Lao Wang breathless, and the regulator cut off the company's financing channels, and Wanda suffered a "double kill of stocks and debts". He used to be the richest man in the country, but he fell into crisis due to lack of money.
At the critical moment, Wang Jianlin sold Wanda's core businesses, Wanda Cultural Tourism City and Wanda Hotel, to Sunac and R&F for less than 70 billion yuan. This is a decision made in the hottest year of real estate. At that time, Wanda Cultural Tourism City had more than 30 projects across the country, most of which had already been developed.
Now, Wanda Films is about to change hands. This is not only another important change for Wanda Group, but also a difficult choice made by Wang Jianlin in order to survive. It all stems from one word – money. This is the new story of the future of Wanda Cinema, a story of change, challenge and survival.
The next day you get it, it can turn into real money, and Wanda's more than 70 hotels are like more than 70 cash cows, and a lot of cash flow is pouring out every day. Imagine those luxury hotels, brightly lit and full of people, this is the golden job bowl in Wang Jianlin's hands. However, the value of these businesses was underestimated by Lao Wang, who only sold less than 70 billion yuan.
Some estimate that in this "big deal of the century", Wang Jianlin may have lost 600 small targets. However, it was this deal that brought Wanda out of the crisis. Just like a soldier who dared to swing a knife and cut off his arm at a critical moment, Lao Wang did it.
Wang Jianlin, who recently appeared in the public eye, is as thin as a bamboo pole, and his haggard face is distressing. The pressure he faced can be imagined. The first is the issue of Wanda Commercial Management's listing, which has submitted applications to the Hong Kong Stock Exchange four times since 2021, but has never been approved. It's like a sword hanging over your head, and it's not reassuring. According to the VAM agreement between him and the investor, if Wanda Commercial Management cannot be listed this year, he needs to buy back the investor's shares and pay interest. This is like a big mountain pressing on Wang Jianlin's shoulders, making people breathless.
In addition, last month, it was reported that Wanda has a US dollar bond of 600 million yuan due in January next year, seeking an extension from creditors. Although Wanda made it clear in the announcement that the rollover period is only one year and that it will be 100% guaranteed to be redeemed, the market's confidence in Wanda has begun to waver. Just as when people lend money to others, people will consider whether the money can be returned, and the current "thunderstorm" of Wanda's dollar bonds will undoubtedly make this concern even more serious.
At the same time, ordinary financing channels have become tight, which makes Wanda's listing even more important. After all, for Lao Wang, this is one of the best financing methods he can think of at the moment. After all, the world is full of unknowns and variables, and only through listing can Wanda go to a wider world and accept more rigorous scrutiny and challenges. Only in this way can Wanda truly realize its own value and embark on a path of its own.
If Wanda fails to go public, Wang will face double pressure, on the one hand, huge bills, and on the other hand, tighter financing. It's no surprise that under this layer of weight, he might become emaciated. Think about it, how is it possible for a person to be in good physical and mental condition all the time if he is under tremendous stress continuously?
Why is Wang Jianlin short of money again? Many people may wonder. After all, he had already experienced a crisis in 2017, and the crisis had been lifted. Why is it that only six years later, Lao Wang is in crisis again? Is his money so unspent?
In fact, the dilemma that Lao Wang is facing now is really not his pot. First of all, after 2017, Wanda began to turn to asset-light, which allowed Lao Wang to avoid the impact when the real estate was down. But dodging a shock doesn't mean staying away from danger forever. After all, Wanda's business is still closely related to real estate. Moreover, when the economic environment is getting colder, how can Wanda be left alone? A few years ago, Wanda was also involved in some real estate projects, and recently there have been news of work stoppages and unpaid wages in these projects.
Lao Wang put Wanda movies on the shelves this time, and he was indeed forced to do so. According to Wanda Film's financial report, the revenue in the first three quarters reached 11.347 billion yuan, a year-on-year increase of 46.98%, the net profit reached 1.114 billion, and the net cash flow was also 3.796 billion. Although it is a little helpless to take out such high-quality assets and realize them, I have to admire Wang Jianlin's courage.