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China's Dalian Wanda posts 2016 revenue drop, weighed by property business

Reuters  |  HONG KONG/BEIJING 

HONG KONG/(Reuters) - China's Group Co Ltd on Saturday said its for 2016 dropped by 13.9 percent, even as operating increased 3.4 percent, as a slowdown in the group's commercial property business impacted overall performance.

Group, owned by China's richest man Wang Jianlin, said in an online statement that its 2016 operating rose to 254.98 billion yuan ($36.96 billion), and that unaudited net profit grew by "double-digits". does not provide profit information for the group.

fell 13.9 percent from a year earlier, said, without providing an exact figure. The group reported 290.2 billion yuan in in 2015.

It was the first decline reported by the group after years of double-digit growth. It also was the first year that real estate's contribution to total fell below 50 percent, the company said.

Group has been on an buying spree of late, acquiring U.S. film studio Legendary Entertainment and World Triathlon Corp, owner of the Ironman franchise, to transform itself into a film, sports and tourism-led conglomerate.

In November, agreed to a $1 billion takeover of Dick Clark Productions Inc, the company that runs the Golden Globe awards and Miss America pageants.

Last month, Wanda's AMC Entertainment Holdings Inc also closed deals for Carmike Cinemas Inc in the United States and Odeon and UCI Cinemas Holdings Ltd in Europe, strengthening its position as the world's biggest movie theatre operator.

Operating at its cultural division increased by 25 percent to 64.1 billion yuan, while at its film operations rose 31.4 percent to 39.2 billion yuan.

Wanda's commercial real estate arm, which includes more than 130 shopping malls and over a dozen planned City developments throughout China, saw fall 25 percent to 143 billion yuan.

The come as Wanda's surging debt to fund investments in new mega cultural and tourism projects prompt concern from credit-rating firms.

In November alone, Wang signed 150 billion yuan worth of deals to build City projects in Haikou, Xian and Changsha.

Last week, placed the ratings of Commercial Properties Co Ltd on review for downgrade as it expected the developer to raise 40 billion to 45 billion yuan of new debt in each of the next two years.

current issuer rating of "Baa2" on Commercial is two notches above a high-yield grade.

S&P downgraded its rating on the company by one notch to "BBB-", the second downgrade in a year and one notch above "junk", citing rising financial leverage and slower-than-expected asset disposal.

Declining contract sales are a concern, said S&P Global analyst Matthew Kong, especially as has to shoulder significant construction costs and large capital expenditure on its tourism and entertainment investments.

($1 = 6.8985 Chinese yuan renminbi)

(Reporting by Clare Jim in and Matthew Miller in BEIJING; Additional reporting by Umesh Desai; Editing by Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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China's Dalian Wanda posts 2016 revenue drop, weighed by property business

HONG KONG/BEIJING (Reuters) - China's Dalian Wanda Group Co Ltd on Saturday said its revenue for 2016 dropped by 13.9 percent, even as operating income increased 3.4 percent, as a slowdown in the group's commercial property business impacted overall performance.

HONG KONG/(Reuters) - China's Group Co Ltd on Saturday said its for 2016 dropped by 13.9 percent, even as operating increased 3.4 percent, as a slowdown in the group's commercial property business impacted overall performance.

Group, owned by China's richest man Wang Jianlin, said in an online statement that its 2016 operating rose to 254.98 billion yuan ($36.96 billion), and that unaudited net profit grew by "double-digits". does not provide profit information for the group.

fell 13.9 percent from a year earlier, said, without providing an exact figure. The group reported 290.2 billion yuan in in 2015.

It was the first decline reported by the group after years of double-digit growth. It also was the first year that real estate's contribution to total fell below 50 percent, the company said.

Group has been on an buying spree of late, acquiring U.S. film studio Legendary Entertainment and World Triathlon Corp, owner of the Ironman franchise, to transform itself into a film, sports and tourism-led conglomerate.

In November, agreed to a $1 billion takeover of Dick Clark Productions Inc, the company that runs the Golden Globe awards and Miss America pageants.

Last month, Wanda's AMC Entertainment Holdings Inc also closed deals for Carmike Cinemas Inc in the United States and Odeon and UCI Cinemas Holdings Ltd in Europe, strengthening its position as the world's biggest movie theatre operator.

Operating at its cultural division increased by 25 percent to 64.1 billion yuan, while at its film operations rose 31.4 percent to 39.2 billion yuan.

Wanda's commercial real estate arm, which includes more than 130 shopping malls and over a dozen planned City developments throughout China, saw fall 25 percent to 143 billion yuan.

The come as Wanda's surging debt to fund investments in new mega cultural and tourism projects prompt concern from credit-rating firms.

In November alone, Wang signed 150 billion yuan worth of deals to build City projects in Haikou, Xian and Changsha.

Last week, placed the ratings of Commercial Properties Co Ltd on review for downgrade as it expected the developer to raise 40 billion to 45 billion yuan of new debt in each of the next two years.

current issuer rating of "Baa2" on Commercial is two notches above a high-yield grade.

S&P downgraded its rating on the company by one notch to "BBB-", the second downgrade in a year and one notch above "junk", citing rising financial leverage and slower-than-expected asset disposal.

Declining contract sales are a concern, said S&P Global analyst Matthew Kong, especially as has to shoulder significant construction costs and large capital expenditure on its tourism and entertainment investments.

($1 = 6.8985 Chinese yuan renminbi)

(Reporting by Clare Jim in and Matthew Miller in BEIJING; Additional reporting by Umesh Desai; Editing by Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
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China's Dalian Wanda posts 2016 revenue drop, weighed by property business

HONG KONG/(Reuters) - China's Group Co Ltd on Saturday said its for 2016 dropped by 13.9 percent, even as operating increased 3.4 percent, as a slowdown in the group's commercial property business impacted overall performance.

Group, owned by China's richest man Wang Jianlin, said in an online statement that its 2016 operating rose to 254.98 billion yuan ($36.96 billion), and that unaudited net profit grew by "double-digits". does not provide profit information for the group.

fell 13.9 percent from a year earlier, said, without providing an exact figure. The group reported 290.2 billion yuan in in 2015.

It was the first decline reported by the group after years of double-digit growth. It also was the first year that real estate's contribution to total fell below 50 percent, the company said.

Group has been on an buying spree of late, acquiring U.S. film studio Legendary Entertainment and World Triathlon Corp, owner of the Ironman franchise, to transform itself into a film, sports and tourism-led conglomerate.

In November, agreed to a $1 billion takeover of Dick Clark Productions Inc, the company that runs the Golden Globe awards and Miss America pageants.

Last month, Wanda's AMC Entertainment Holdings Inc also closed deals for Carmike Cinemas Inc in the United States and Odeon and UCI Cinemas Holdings Ltd in Europe, strengthening its position as the world's biggest movie theatre operator.

Operating at its cultural division increased by 25 percent to 64.1 billion yuan, while at its film operations rose 31.4 percent to 39.2 billion yuan.

Wanda's commercial real estate arm, which includes more than 130 shopping malls and over a dozen planned City developments throughout China, saw fall 25 percent to 143 billion yuan.

The come as Wanda's surging debt to fund investments in new mega cultural and tourism projects prompt concern from credit-rating firms.

In November alone, Wang signed 150 billion yuan worth of deals to build City projects in Haikou, Xian and Changsha.

Last week, placed the ratings of Commercial Properties Co Ltd on review for downgrade as it expected the developer to raise 40 billion to 45 billion yuan of new debt in each of the next two years.

current issuer rating of "Baa2" on Commercial is two notches above a high-yield grade.

S&P downgraded its rating on the company by one notch to "BBB-", the second downgrade in a year and one notch above "junk", citing rising financial leverage and slower-than-expected asset disposal.

Declining contract sales are a concern, said S&P Global analyst Matthew Kong, especially as has to shoulder significant construction costs and large capital expenditure on its tourism and entertainment investments.

($1 = 6.8985 Chinese yuan renminbi)

(Reporting by Clare Jim in and Matthew Miller in BEIJING; Additional reporting by Umesh Desai; Editing by Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22