Chinese property and entertainment giant Dalian Wanda reports 10pc revenue fall in 2017
Decline comes amid government crackdown on debt loads and risky offshore spending
Chinese conglomerate Dalian Wanda Group says its revenue dropped for a second consecutive year, by 10.8 per cent in 2017, as the group sold property assets and faced more scrutiny from regulators and lenders.
The property-to-entertainment group, owned by tycoon Wang Jianlin, reported 227.4 billion yuan (US$35.54 billion) in revenue, while net profit remained flat compared with 2016, according to a statement posted on the company’s website. It did not reveal the profit figure.
Total assets, of which 93 per cent are domestic, fell 11.5 per cent to 700 billion yuan.
The group came under pressure last year from a government crackdown on perceived risky spending overseas and high levels of corporate debt. Banks heightened their scrutiny and ratings agencies downgraded its property unit to junk status.
The Chinese conglomerate is expected to announce the sale of two Australian property projects in the coming days, sources have told Reuters, the latest in a string of asset sales as the firm looks to reduce its portfolio after a major acquisition spree.
Wanda said earlier this week it had agreed to sell its interests in the London luxury development project, One Nine Elms, for US$81 million.
Wanda’s commercial real estate arm, which sold a portfolio of hotels and 13 tourism assets in China for US$9 billion in July, saw income fall 21 per cent last year to 112.5 billion yuan.
Revenue at its sports division grew by 12.3 per cent to 7.2 billion yuan, while that of the cultural division rose 32.6 per cent to 63.8 billion yuan.
Wanda is considering a listing for its sports assets as part of efforts to rationalise its portfolio, according to people familiar with the situation.