Wanda says it does not have a cash flow problem, denying allegations made by WeChat blogger
Chinese conglomerate Dalian Wanda Group Co said there was no truth to allegations made by a Chinese blogger that the company is suffering a cash flow problem or that its assets have shrunk massively.
“Wanda has more than 200 billion yuan (US$30 billion) cash on book, and generated more than 200 billion yuan in revenue this year,” the company, controlled by billionaire Wang Jianlin, said in a statement. “All operations of the company are normal and we have not had a single default.”
On Monday, a Chinese blogger using a public WeChat account published an article titled “The Waterloo of Wang Jianlin” that said Wanda “obviously had its cash flow cut off”. The blogger referred to a June decree from China’s banking regulator which instructed the country’s largest lenders to cut off funding and reject any financing applications for six of Wang’s overseas acquisitions.
The article has so far been viewed more than 100,000 times. WeChat does not show the specific number of page views above 100,000.
“According to the 2016 balance sheet, the company’s net assets reached more than 300 billion yuan, and the assets will keep increasing this year,” Wanda said.
The company also questioned one of the lines in the article that said the company’s assets “shrank massively”. Wanda said it was continuing to open new real estate developments – or Wanda Squares – with 50 debuting in 2017. Wanda Squares are comprehensive commercial projects involving retail and office amenities.
“Can you find a second company in the world that could expand at such a fast speed as Wanda? How could you ignore the 230 Wanda Squares in the whole country?” Wanda said.
The company is one among several Chinese asset buyers under close scrutiny, as government regulators clamped down on borrowings by high-profile conglomerates to maintain financial stability.
The Post reported in November that the company was seeking to sell five large-scale projects in Britain, the US and Australia to a single buyer for an estimated US$5 billion.
Wanda denied the report as “untrue” but acknowledged that it was undertaking a strategic review of its property projects and will consider any business opportunities which can create value for shareholders.