Preface
Wang Jianlin surpassed Li Ka-shing in 2013 with a wealth of 260 billion yuan and successfully ascended to the throne of "the richest Chinese in the world".
But what people didn't expect was that just a few years later, he was not only burdened with sky-high debts, but also frantically sold his assets.
Now Wang Jianlin has completely withdrawn from Beijing Wanda Investment Company and has been taken all the shares by China Ruyi.
So, how did Wang Jianlin get to this point, did he change the company's strategy or pay for his mistakes?
And where is Chinese Confucianism sacred, can take all the shares of Beijing Wanda?
The richest man in China
Nowadays, Wanda Plaza is open all over the country, and almost all large, medium and small cities can see Wanda's figure.
As long as Wanda is mentioned, the first thing that comes to everyone's mind must be its founder Wang Jianlin.
After all, Wang Jianlin once topped the ranks of China's richest men, and the Wanda he founded was involved in many fields.
Wang Jianlin's entrepreneurial road can be said to be very exciting.
He was born into a military family, and his father was a veteran Red Army who had participated in the Long March.
During his 16 years as a soldier, he not only went to the Dalian Army School for further study, but also stayed in the brigade as a staff officer.
But in 1986, Wang Jianlin left the army and chose to change jobs to get a stable job.
This was definitely a successful person in the eyes of people at that time, but Wang Jianlin was not satisfied with this.
He resigned from the government's stable job and chose to go to the sea to do business, and Wang Jianlin proved to be very successful in this step.
In 1992, Wang Jianlin established Dalian Wanda Real Estate Group Company.
Soon, Wang Jianlin relied on his keen business sense and acumen to build Wanda Real Estate into a national super real estate company.
In 2005, Wanda entered the ranks of the world's top 500 companies for the first time.
This was definitely exciting news for Wanda at the time.
After that, Wanda can be said to be like riding a rocket, and the speed of development is amazing.
Wang Jianlin has invested in many sectors, including entertainment and sports, and even acquired Hollywood studios.
In this way, under Wang Jianlin's investment, Wanda is not only a real estate company, but also a comprehensive company involving entertainment, real estate, hotels and sports.
In 2013, Wang Jianlin became the richest man in China with assets of 86 billion, and Wang Jianlin has sat in this position more than once.
Even his worth once reached 217.29 billion yuan, successfully ranking among the top ten richest people in the world.
But today's Wang Jianlin's worth is shrinking wildly, and by 2023, there will only be 47 billion yuan left in assets.
Not only that, Wanda's debt ratio is also high and scary, and Wang Jianlin is "crazy" to sell his assets, and in just half a year, he sold 15 Wanda Plazas.
As for how Wang Jianlin got to this point, some people believe that Wanda's "collapse" came from a failed gamble.
So, what's going on here?
The bet fails, and a large number of assets are sold
This is going to start with Zhuhai Wanda, in order to make Zhuhai Wanda successfully listed.
In 2021, Zhuhai Wanda introduced a number of investment companies to invest, with an amount of 38 billion, involving 22 investment companies.
In order to obtain such huge financial support, Wanda and the investment company signed a VAM agreement.
To put it bluntly, it is a "crazy" gamble.
Wanda promised a net profit of no less than 51.9, 74.3, and 9.64 billion yuan within three years, and indeed Zhuhai Wanda did it.
But there is also an agreement that Zhuhai Wanda will achieve the goal of going public by the end of 2023 at the latest.
Otherwise, Wanda will have to buy back the shares of investors, reaching an astonishing 30 billion yuan.
If this agreement is triggered, it will be even worse for Wanda, which is already very tight on cash flow.
Therefore, during the VAM period, Zhuhai Wanda submitted the prospectus four times before and after, but all of them failed.
And the failure of this bet also made Wanda completely lose control of Zhuhai Wanda.
And Wang Jianlin, who has borne huge economic pressure, has also embarked on the road of "fire sale".
It has successively sold Wanda Film and Television Media, Wanda Sports and other projects, as well as Wanda Plaza and Wanda Playground.
Some are even industries in Shanghai, Shenzhen and other cities.
And Beijing Wanda Cultural Industry Company, including its subsidiary, Wang Jianlin also completely lost control.
In 2023, it bought a 51% stake in Shanghai Ruyi Investment Co., Ltd.
On April 19, 2024, Beijing Wanda Investment Co., Ltd. issued an equity change letter, and Shanghai Ruyi Investment Co., Ltd., controlled by Ke Liming, took all the shares of Beijing Wanda Company.
In other words, Beijing Wanda Investment Co., Ltd. has completely changed hands and has nothing to do with Wang Jianlin.
Presumably, many people are very curious about this Chinese Confucian company, which is not famous at all, what kind of company is this, and has such financial resources?
What is the origin of Chinese Confucianism?
You may not have heard of China Ruyi, but you must have seen the movies and TV series projects it has invested in.
For example, the movie "Disappearing Her", which exploded last year, was invested by the company.
Similarly, the Spring Festival box office champion "Hello Li Huanying" was also invested by the company, and it can be said that they have invested in a lot of well-known movies.
Its predecessor was "HengTen Network", which was a company invested and created by Tencent and Evergrande together.
But when it turned to entertainment development, it acquired Ruyi Xinxin Company, which was established by Ke Liming, and then changed its name to China Ruyi.
However, Ke Liming still holds 37.26% of the shares of China Ruyi Company and is still the company's largest shareholder.
Tencent is the company's second-largest shareholder, owning 20.45% of the company's shares.
Nowadays, China Ruyi is not only involved in the film industry, but also in the game industry, and the game field and Tencent Games are also inseparable.
epilogue
Now Wang Jianlin is also constantly throwing away his assets to cope with the debts he owes.
And after this round of sales, Wang Jianlin's Wanda also received a lot of capital injection.
After the new capital injection, will his Wanda be reborn and usher in a turnaround.
Resources:
The original article was published in The Paper2024-04-20Wang Jianlin's withdrawal, and China Ruyi pledged half of his shares after taking over Wanda Films
The original article was published in Jiemian News on 2023-07-29 A one-time purchase of 49% of Wanda Investment's shares, what is the origin of China's Confucianism?
Originally published in Red Star News2024-03-30 Wanda received a new investment of 60 billion yuan: a compromise after the failure of the bet, Wang Jianlin lost absolute control and has sold 15 Wanda Plazas