China's Dalian Wanda Group says 2017 revenue down 10.8 pct on asset sales (updated)

Wanda Hotel Development

21/01/2018 05:53

* Wanda sets 2018 revenue target at 247.9 bln yuan - 
Chairman Wang 
    * To cut debt via sale of non-core assets & minority stakes 
    * Wanda's total assets fell to 700 bln yuan; 93 pct are 
domestic 
 
 (Updates with Wang Jianlin's comments on group's debt 
situation, revenue target) 
    By Clare Jim and Julie  Zhu 
    HONG KONG, Jan 21 (Reuters) - Chinese conglomerate Dalian 
Wanda Group's revenue fell by 10.8 percent in 2017, the second 
consecutive year it declined, as the debt-laden 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 
for last year, while net profit remained flat compared with 
2016, according to a statement posted on the company's website 
on Saturday. 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 last 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 
    Wang, Wanda's chairman, said on Saturday Wanda had greatly 
reduced its debt and would use its "limited cash" in developing 
Wanda Plazas, the group's core business. 
    "Wanda invested in a few projects overseas in the past few 
years and now we have decided to clear all overseas debt," Wang 
said in a speech at the group's annual meeting, which was 
published on its website on Sunday.  
    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  
    For 2018, Wanda Group has set a revenue target of 247.9 
billion yuan, with around half coming from the commercial real 
estate arm, according to Wang. 
    The chairman also pledged to reduce Wanda's corporate debt 
through all available means, including the sale of non-core 
assets and minority stakes of the businesses it controls. 
    The group plans to lower corporate debt to the "absolute 
safe" level in two to three years, he added. 
($1 = 6.3990 Chinese yuan renminbi) 
 
 (Reporting by Clare Jim and Julie Zhu; Additional reporting by 
Kane Wu; Editing by Clelia Oziel and Muralikumar Anantharaman) 
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters 
Messaging: clare.jim.thomsonreuters.com@reuters.net)) 
 
Keywords: DALIAN WANDA RESULTS/