China’s Wanda Cinema announces growth plans to defend stock price

Shares of Wanda Cinema Line, controlled by billionaire Wang Jianlin, rose 4.8 per cent on Tuesday morning to 186.50 yuan after the company announced a slew of plans to defend its price performance in the mainland’s volatile stock market.

In a statement published on the Shenzhen Stock Exchange website earlier in the day, China’s top cinema operator said Wang would buy the company’s shares should the price fell in the next six months.

It also announced a package of moves, including acquisitions in and outside China, to increase market share and revenues in the next few years as part of efforts to defend near-term stock price performance.

The company will open at least 75 new cinemas next year, about the combined number to be opened this year and last, it said. Wanda Cinema owned 1,694 screens in 191 cinemas across 101 mainland cities at the end of June.

Apart from organic growth, it also plans to acquire three to five cinema chains in China in the next 12 months and is seeking opportunities abroad.

Earlier this year, the company bought 18 cinemas owned by rival Shimao Property and the Hoyts Group, Australia’s second-largest chain of movie theatres.