Wanda Group's Assets Reaches RMB 700 billion in 2017, with Domestic Assets Accounting for 93%
20.01.2018
On January 20th, 2018, Wanda Group held its annual meeting for 2017 in Harbin, Heilongjiang Province, and reported its performance for the year.
The year 2017 was the most memorable year for Wanda Group, bringing Wanda a number of challenges. However, Wanda Group still performed well with the support from all parties and the concerted efforts of its entire staff.
In 2017, Wanda Commercial Properties transferred its cultural tourism projects and hotel assets, resulting in a slight decrease in Wanda Group’s assets and revenue. Wanda Group’s assets reached RMB 700 billion (US$109.39 billion) in 2017, down 11.5% y/y, with domestic assets accounting for 93% and overseas assets comprising 7%. This year, Wanda Group’s operating revenue reached RMB 227.37 billion, down 10.8% y/y, mainly due to the sale of assets and RMB 16.2 billion of tourism revenue that cannot be recognized in the financial statements. Wanda’s net profit in 2017 exceeded its target by 14%, remaining basically flat y/y compared to 2016. Out of its total revenue for 2017, services revenue accounted for 63.4%, up 8.4% y/y, with 18% from rental income.
In 2017, Wanda Commercial Properties achieved RMB 112.54 billion in revenue, exceeding its target by 4.1%, with revenue down by 21% y/y. Revenue from rental income reached RMB 25.52 billion, or 1.4% higher than the target, up 30.3% y/y. Projects opened in 2017 account for 21% of the group’s total number of projects opened to business, including 24 asset-light projects from which Wanda Group received a share of the rent. The fact that the total rental income increased by 30.3% indicated a two-digit growth of rent from old stores. This year, Wanda Group achieved a rent collection rate of 100%, setting a world record of maintaining a collection rate of more than 99.5% for 12 consecutive years. In 2017, Wanda Group opened 49 new Wanda Plazas and 1 Wanda Mall, comprising 24 asset-light projects and 26 heavy-asset projects. Even after the property area of the cultural tourism projects and hotels were transferred out, the accumulated property area still increased by 3.296 million square meters to 31.511 million square meters. This year, Wanda Plazas received a total of 3.19 billion visitors, up 28.1% y/y. The revenue from real estate reached RMB 83.17 billion, or 4% higher than the target, down 23.7% y/y, mainly due to the sharp decrease in revenue from real estate resulting from the transfer of cultural tourism projects.
In 2017, Wanda Cultural Industry Group achieved RMB 63.78 billion in revenue, or 0.1% higher than the target, up 32.6% y/y (excluding RMB 16.2 billion of revenue from tourism). The cultural industry, which contributed 28% of Wanda Group’s revenue in 2017, has become one of Wanda’s pillar industries. For example, Wanda’s film group achieved revenue of RMB 53.2 billion in 2017, or 98.5% of its target, up 35.9% y/y. In 2017, Wanda opened 199 new movie theaters worldwide with a total of 1,585 screens increased. To date, Wanda operates 1,551 movie theaters worldwide with 15,932 screens. The single-screen box office of Wanda movie theaters was 1.9 times the average level in China. Online revenue accounted for nearly 90% of total film revenue. In 2017, numbers of Wanda’s movie membership scheme reached 100 million. In addition, Wanda Sports achieved RMB 7.18 billion in revenue, or 4.3% higher than the target, up 12.3% y/y. The Wanda Culture Travel Innovation Group achieved RMB 1.95 billion in revenue, or 39.5% higher than the target. Wanda Kidsplace Group achieved RMB 1.44 billion in revenue, or 97% of its target, up 176% y/y. In 2017, Wanda opened 60 new Kidsplace outlets and 50 early learning centers.
In 2017, Wanda Financial Group achieved RMB 32.12 billion in revenue, or 25.5% higher than its target, while its net profit achieved 1,961% of its target.
In 2017, Wanda Internet Technology Group achieved RMB 5.86 billion in revenue, or 90.1% of its target.
In 2017, other Wanda subsidiaries achieved RMB 13.07 billion in revenue, or 6% higher than the target.