China's Dalian Wanda Group says 2017 revenue down 10.8 pct

Wanda Hotel Development

20/01/2018 11:18

By Clare Jim and Julie  Zhu 
    HONG KONG, Jan 20 (Reuters) - Chinese conglomerate Dalian 
Wanda Group said on Saturday its revenue dropped for a second 
consecutive year, by 10.8 percent in 2017, as the group sold off 
property assets and faced increasing scrutiny from regulators 
and lenders.  
    The property-to-entertainment group, owned by tycoon Wang 
Jianlin, reported 227.4 billion yuan ($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 percent are domestic, declined 
11.5 percent 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.  urn:newsml:reuters.com:*:nL3N1PE1D2 
    Wanda said earlier this week it had agreed to sell its 
interests in the London luxury development project, One Nine 
Elms, for $81 million.  urn:newsml:reuters.com:*:nL3N1PC1LU 
    Wanda's commercial real estate arm, which sold a portfolio 
of hotels and 13 tourism assets in China for $9 billion in July, 
saw income fall 21 percent last year to 112.5 billion yuan. 
 urn:newsml:reuters.com:*:nL3N1KA3OL 
    Revenue at its sports division increased by 12.3 percent to 
7.2 billion yuan, while that of the cultural division rose 32.6 
percent 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.  urn:newsml:reuters.com:*:nL4N1OZ1P3 
($1 = 6.3990 Chinese yuan renminbi) 
 
 (Reporting by Clare Jim and Julie Zhu; Editing by Stephen 
Coates and Clelia Oziel) 
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters 
Messaging: clare.jim.thomsonreuters.com@reuters.net)) 
 
Keywords: DALIAN WANDA RESULTS/