Wanda Group recently ushered in a blockbuster good news, and the 37 billion debt crisis it faced has been temporarily lifted. What kind of truth is hidden behind this good news?Let's dive in. The article will analyze the trends of investors, the performance of Wanda Commercial Management, and the outlook for Wanda's future.
Among the institutions that have invested in Wanda are well-known entrepreneurs and large corporations, including the Cheng Yutong family of Chow Tai Fook bosses, Country Garden, CITIC Capital, Ant and Tencent. The strength of these different backgrounds shows that they chose to support Wang Jianlin and Wanda Group for their deliberate reasons. On the one hand, Wang Jianlin fulfilled his promise to investors and resolutely took out funds to buy back shares, showing his determination and credibility. Although Wanda Group has experienced a severe situation of negative ** pressure and debt crisis in the past few years, Wang Jianlin did not give up easily, but took positive measures to stabilize the situation. On the other hand, Wanda Commercial Management has achieved good results in many indicators, managing many large commercial centers across the country, ranking as one of the largest commercial management companies in the world. In the past few years, Wanda Commercial Management has steadily expanded its scale, growing at an average annual rate of 9%, and has exceeded its VAM performance for three consecutive years, and its net profit has also shown a steady growth trend. For investors, Wanda Commercial Management is not only a potential unlisted company, but also a stable cash flow** and a guarantee of generous returns. As a result, they chose to continue to support Wanda Group and re-enter into the investment agreement, apparently based on optimistic expectations for future earnings.
The reason why investors continue to support Wanda is not only based on the recognition of Wanda's commercial management's performance, but also because there are certain selfish considerations. In the commercial market, every capitalist pursues the maximization of profits, not only hoping that the principal will be returned, but also hoping to obtain more profits through the development of the enterprise. For institutions participating in Wanda's investment, listing is undoubtedly one of the most direct ways to realize the value of their investment, because the increase in share appreciation after listing can bring them huge benefits. However, even if Wanda Commercial Management cannot be listed as scheduled, investors can still obtain considerable returns through dividends and buybacks in the past few years. Driven by profits, they certainly hope that Wanda can continue to grow and create more profit opportunities for themselves. Therefore, the support and trust of investors is not entirely out of "righteousness", but is based on a rational judgment of Wanda Commercial Management's potential and returns.
Although this investor support has brought a certain respite to Wanda Group, it should not be blindly optimistic. After all, the largest shareholder is still Wang Jianlin, and 40% of the shares may be at risk when investors act together. There is no shortage of savvy businessmen and variables in the business market, and just because investors are able to reinvest does not mean that they won't act at the right time to protect their interests. Despite its excellent performance, Wanda Commercial Management still needs to face industry competition and unknown challenges. Mr. Wang's age has also raised questions about his ability to continue operating and pushing Wanda Commercial Management to go public. All of these factors further complicate and uncertain the future development of Wanda Group. Therefore, although the debt crisis has been lifted temporarily, we still hope that Wanda can take advantage of the situation and achieve more sustainable development.
Wanda Group's $37 billion debt alert was lifted as a result of renewed support and confidence from investors. The investors' choice to continue to invest in Wanda Commercial Management and re-sign the agreement not only shows their optimistic expectations for Wanda's development, but also reflects their recognition of Wang Jianlin and Wanda Group. However, the good news does not mean that all problems have been solved, and Wanda Group still faces challenges and uncertainties. For Wanda Group, it should seize the opportunity and continue to strive for more sustainable development in order to remain invincible in the market competition.