Friday , January 22 2021

Selling 37 department stores Wanda slimming logic is in the house | Daily Economic News



On February 12, Wanda sold assets again. On the same day, Zhang Jindong, President of Suning Tesco, announced on New Year's Party that the company had acquired all 37 department stores under Wanda Department Store Co., Ltd. This is Wanda's first asset sale in 2019.

Slim down again

Following the ongoing sale of the Wanda Cultural Travel Project, Wang Jianlin continued at the Wanda Annual Meeting in 2018: "In short, Wanda must be slimmed down and has something to do. This is the logic of Wanda's past, present and future disposal of some assets. "

The slimming strategy was quickly implemented at the beginning of the new year. It is reported that the 37 Wanda warehouses in this transaction are mainly located in the CBD or downtown area of ​​first and second class cities with more than 4 million members.

Wanda Department Store was founded in 2007, formerly known as the "Wanqian Department Store", but the development of the Wanda Department Store is not smooth. In 2013, Wanda Department Store posted revenue of 15.49 billion yuan and net profit decreased by 7% year on year. It was the only company in the year that didn't work well. In 2015, Wanda's department store turnover was 23.05 billion yuan, down from the previous year. In 2016, Wanda's revenue fell to 17.82 billion yuan.

In fact, Wanda Department Store has been closed since 2015. In July of the same year, Wang Jianlin said: "It is necessary to turn off half of the domestic department stores." Wanda Department Store closed 46 of the country's 90 department stores throughout the year leaving only profitable stores.

However, according to relevant media reports, sales of the Wanda Department Store have steadily increased over the past two years and the net profit has continued to increase.

The specific amount for the acquisition has not been disclosed and the benefits that can be brought to Wanda are not known. Wanda told the reporter "Daily Economic News": "Suning has officially announced that the company has no further official news."

According to the relevant person in charge of Suning Tesco, the business only includes Wanda Department Store. It does not involve other resources, including Wanda Plaza, and it is still uncertain whether it will cooperate with Wanda Plaza in the future.

In fact, it is not the first time Wanda has lost in 2019. On January 23, according to the highly anticipated Wanda Financial Group, Wanda Investment Group has changed its name to Wanda Investment Group and has also tried to sell the voucher, but There has been no news about the transaction.

Wang Jianlin said: "Another focus of Wanda's transformation strategy is to sort existing industries and focus on industries that have competitive advantages in international and domestic markets."

From this point of view, department stores and payment have become the non-focused industries that Wanda once again abandoned after the sale of hotels, cultural tourism and other industries.

Focus on culture

One side is stripped and the other side is focused. Wang Jianlin said at the 2019 meeting that the cultural industry has become Wanda's largest industry, where real estate revenue accounts for less than quarter.

Wanda New Year is focused on the cultural industry. On February 10, Wanda Movie announced that Wanda Film intends to issue shares of Wanda Films and other 20 trading partners to buy 95,7683% of the shares at a transaction price of 10,524 billion yuan. After the completion of the transaction, Wanda Films will directly hold a 95.7683% stake in Wanda Films.

The goal of Wanda in 2019 is that the cultural group's revenue is 74.31 billion yuan. Among them were the film and TV company revenue 62.37 billion yuan, 104 newly opened studies, 903 new screens, 81 new movie studios in China, 674 new screens.

Some commentators said this transaction could further consolidate Wanda's leading position in the domestic film market.

As an important part of the cultural industry, Wanda Sports performed well in 2018 with revenue of 8.83 billion yuan, an increase of 22.9% on an annual basis. The goal for 2019 was revenue of 8.51 billion yuan.

On February 12, according to Wuters Sports, Wanda Sports submitted the application documents to the US Securities and Exchange Commission on the list and may be listed in the first half of this year. The amount of funds to be collected is between $ 300 million and $ 500 million. Citigroup, Deutsche Bank and Morgan Stanley participated in the listing.

This may be in response to Wang Jianlin's request: "Wanda Sports and Legendary Pictures will perform capital transactions and will perform this year."

Although "light assets" and "cultural products" are the strategies repeatedly mentioned by Wang Jianlin, he also stated that "Wanda has not been shaken since it has identified the light asset strategy and low debt development." However, the representative of the "Daily Economic News" noted that Wang Jianlin also had a lot of fun at the annual meeting: "Wanda attaches importance to light assets, not completely abandoning heavy businesses. This happens when total interest-bearing liabilities fall year by year. Heavily active. Ensuring that company management opens 50 squares every year, it should also strive for 10 to 15 difficult assets each year. "

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