BEIJING, July 20, 2017 /PRNewswire/ -- Below is Dalian Wanda Group Chairman Wang Jianlin's statement regarding Wanda's ability to pay debt and generate cash.
"Many people are concerned about the liabilities of Wanda Commercial Properties. However, while most of them care about it out of real concern, a few spread rumors and attempt to make trouble. As the saying goes, one may harm others to benefit himself, but I don't really see how such rumors can benefit those who spread them. "
On ability to pay debt:
"I can tell you the financials of Wanda Commercial: Once the transaction with SUNAC and R&F Properties is completed, Wanda Commercial will have nearly RMB200 billion in loans plus bonds. We have decided to pay off most of our bank loans. With cash of RMB100 billion on the books and RMB68 billion to be received from this transaction, Wanda Commercial has approximately RMB170 billion in cash."
"Wanda also has RMB130 billion of for-sale property inventory. By selling all of the property, Wanda Commercial can recover tens of billions."
On ability to generate cash:
"By the end of this year, Wanda Commercial will own 33 million square meters of commercial properties, with rent that will surpass RMB33 billion in 2018. It is projected that, in terms of rent, Wanda Commercial will enjoy an average annual growth rate of approximately 20% over the coming five years. Is Wanda Commercial running a good business? You can make your own judgment."
On company transition and strategy:
"The deal with SUNAC and R&F will bring forth a significant reduction in our liabilities and extensive recovery of cash. The signing of the agreement also signifies that Wanda's commercial and cultural tourism operations have embarked into a new era of 'asset-light' brand management. In today's China, perhaps Wanda is the only enterprise that can achieve economies of scale and make a profit through managing commercial centers and cultural tourism brands."
Attachment 1: Company news release on Wanda-SUNAC-R&F transaction
Attachment 2: Transaction's joint announcement
SOURCE Dalian Wanda Group