Wanda Says 93% of Assets Still Within China

Real estate and entertainment giant Dalian Wanda Group specified that it had as much as 93% of its total assets still within China by the end of 2017, according to a brief published Saturday on its website, implying its attention to concerns over its debt-driven investment and capital outflows.

As of December 2017, Wanda's total assets dropped 11.5% year-on-year to 700 billion yuan ($109.4 billion), and its operating revenues for the whole year declined 10.8% from the previous year to 227.4 billion yuan, according to the brief. The decline was mainly due to its sale of hotels and theme parks in China last year.

Onshore and offshore assets, respectively, accounted for 93% and 7% of total assets, the brief said. It is a rare move for Wanda to disclose the percentages of assets at home and abroad compared with previous years.

Last June, Wanda was criticized by china's top banking regulator for aggressive overseas buying which accumulated large debts, along with two other conglomerates, Fosun Group and HNA Group. Since then, the private enterprise has reportedly prepared to pare back some of its offshore assets to reduce debt. The latest move was to sell a majority stake in a prominent London property for more than $250 million, which was announced earlier this month.

"2017 was an unforgettable year in the history of Wanda Group. Wanda had come across disturbances and endured hardships," the brief said. However, Wanda managed to complete its tasks. Revenues of the real estate arms of the group reached 112.5 billion yuan in 2017, down 21% year-on-year, still contributing nearly 50% to total revenues. Revenues from the entertainment and sports sector and the financial services sector, respectively, were 63.8 billion yuan and 32.1 billion yuan, accounting for 28% and 14% of total revenues.

In 2017, Wanda newly opened 49 Wanda Plaza projects, which are commercial complexes consisting of shopping malls and office buildings. As the main element of the company's core assets, Wanda Plaza attracted nearly 3.2 billion visits last year, a 28% increase from 2016, according to the brief.

Contact reporter Lin Jinbing (jinbinglin@caixin.com)