On February 12, Wanda resold assets. On the same day, Zhang Jindong, Chairman of Suning Tesco, announced during the New Year's Party that the company had acquired all 37 department stores under the Wanda Co., Ltd. department store. This is Vanda's first sale of assets in 2019.
Following the continued sale of Vanda's cultural travel project, Wang Jianlin continued at the Wanda Annual Meeting in 2018: "In short, Wanda must be reduced and have something to do with it.
The weight loss strategy was quickly implemented at the beginning of the new year. It is reported that the 37 Wanda department stores in this deal are mainly located in the CBD or in the center of the first and second tier cities with more than 4 million members.
Wanda Department Store was founded in 2007, formerly known as Wanqian Department Store, but the development of the Wanda Department Store is not smooth. In 2013, Vanda's department store earned 15.49 billion yuan, and net profit declined by 7% yoy and became the only company in the year that did not perform well. In 2015, Vanda's department store revenue was 23.05 billion yuan, down from the previous year. In 2016, Vanda's revenue fell to 17.82 billion yuan.
In fact, by 2015, the Wanda department store is closed. In July of the same year Wang Jianlin said, "It is necessary to exclude half of the local department stores." Vanda's universal store closed 46 of the country's 90 stores throughout the year, leaving only profitable stores.
However, according to media reports, the sales volume of the Wanda department store has risen steadily over the past two years and the net profit continues to rise.
The specific amount of the acquisition is not disclosed and the benefits that can be granted to Vanda are not known. Vanda told the Daily Economic News reporter: "Suning has officially announced that the company has no new official news."
According to the respective person responsible for Suning Tesco, the acquisition includes only Wanda's department store that does not include other resources, including Wanda Plaza, and is still not sure whether it will cooperate with Wanda Plaza in the future.
In fact, this is not the first time Wanda has lost weight in 2019. On January 23, according to the 21st Business Herald, Wanda's financial group, which was highly anticipated, changed its name to Wanda Investment Group and also attempted to sell the payment license, but there was no news about the deal.
"Another focus of the adaptation of Wanda's transformation strategy is to eliminate existing industries and to focus on industries that have competitive advantages in international and domestic markets."
From this point of view, department stores and payments have turned into un-focused industries that Wanda once again abandoned after having reserved hotels, cultural tourism and other industries.
Focus on culture
One side is bared and the other side is focused. Wang Jianlin said at the meeting in 2019 that the cultural industry has become Vanda's largest industry, with real estate revenue less than a quarter.
Vanda's new year focuses on the cultural industry. On February 10, Wanda Movie announced that Wanda Film intends to issue shares of Wanda Films and other 20 trading partners to buy 95.7683% of its shares at a transaction price of 10.524 billion yuan. Upon completion of the deal, Wanda Films will own 95.7683% stake in Wanda Films.
The goal of Vanda in 2019 is that the income of the cultural group is 74.31 billion yuan. Among them, the revenues of the film and television company are 62.37 billion yuan, 104 newly opened studios, 903 new screens, 81 new film studios in China, 674 new screens.
Some commentators said that this deal could strengthen Vanda's leading position on the domestic film market.
As an important part of the cultural industry, Wanda Sports performed well in 2018 with revenue of 8.83 billion yuan, up 22.9% more than the previous year, with the goal of 2019 being a revenue of 8.51 billion yuan.
On February 12, according to Reuters news, Wanda Sports has filed the application form with the US Securities and Exchange Commission and may be registered in the first half of this year. The amount of funds raised is between $ 300 million and $ 500 million. Citigroup, Deutsche Bank and Morgan Stanley participated in the registration.
This may be in response to Wang Jianlin's request: "Wanda Sports and Legendary Pictures have to carry out capital operations and achieve achievement this year."
Although "light assets" and "cultural products" are the corporate strategies repeatedly mentioned by Wang Jianlin, he also firmly stated that "Vanda was not shaken because she identified the strategy for low assets and low debt development." However, the Daily Economic News reporter noticed that Wang Jianlin is also very entertaining at the annual meeting: "Vanda focuses on light assets rather than completely abandoning heavy assets, when global interest payables decrease each year. ensures that business management will open 50 square meters each year and will also need to target 10 to 15 assets each year.
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