The VAM was lifted, and Wanda retained 38 billion investments, but Wang Jianlin's crisis was not completely resolved!
Introductory. Recently, Wanda Group announced that it had successfully crossed 38 billion yuan"Bet"crisis, which is undoubtedly good news. For Wanda, which is experiencing a cash crisis"Save"This huge amount of money is equivalent to unlocking the sword of Damocles hanging over Wang Jianlin's head. However, even if it has passed"Bet"The crisis, Wanda Group's situation has not been completely resolved. This article will provide an in-depth analysis and assessment of the Wanda crisis around this issue.
The background to the gambling crisis.
Bet"The source of the crisis can be attributed to Wang Jianlin's decision to attract strategic investors. In order to obtain an investment of 38 billion yuan, Wanda Group signed an investment agreement with the investor, which stipulates that if Zhuhai Wanda Commercial Management fails to go public before December 31, 2023, the investor has the right to require Wanda to redeem the funds and receive a certain amount of interest as the cost of capital occupation. However, the IPO process of Zhuhai Wanda Commercial Management was not successful, and towards the end of the year, the failure of the listing will put huge pressure on Wanda's cash flow.
In order to survive the VAM crisis, Wanda and Wang Jianlin's executives did their best to finally sign a new investment agreement with Taimeng Investment less than a month before the end of the year. According to the terms of the agreement, after the expiration of the old investment agreement, Taimeng Investment will redeem the investment money together with other investors and then make a new round of investment in Zhuhai Wanda Commercial Management Company. In the new investment agreement, Wanda will hold a 40% stake in Zhuhai Wanda Commercial Management, while the remaining 60% will be held by existing investors such as Taimeng Investment and the new strategic investment.
The impact of severe favoritism.
For Wanda,"Bet"The resolution of the crisis was critical to its cash flow problems. At present, Wanda Group is facing huge short-term debt and severe liquidity pressure. Yes"Save"Tens of billions of yuan of valuable cash resources are of positive significance to solving Wanda's financing problems and alleviating the liquidity crisis. In addition, due to the lack of good investment opportunities in the current market, the newly signed investment agreement will bring new investment channels and deserve a higher rate of return.
Although, though"Bet"The crisis has passed, but the current financial situation of Wanda Group is still relatively difficult. In the case of Zhuhai Wanda's business management, the subsidiary is facing huge debts and debt repayment pressures. While the new investment agreement provides a breather for Wanda, Wanda still has to contend with significant debt repayments. At present, the total principal amount of bonds in force is tens of billions of yuan, and the scale of overseas debt has reached nearly 10 billion yuan. At the same time, Wanda Group also has to repay bank loans, commercial papers and other debts, and its current liabilities exceed 100 billion yuan, which is under huge pressure.
In order to alleviate the liquidity crisis, Wang Jianlin and Wanda executives ** some assets. For example, Beijing Wanda, the majority shareholder of Wanda Films, transferred its 51% stake to Shanghai Ruyi and at the same time gave its 49% stake** to the same buyer. In addition, Wanda Group also sold Wanda Plaza and other assets to alleviate financial pressure. However, the sale-leaseback strategy is only a stopgap measure and underestimates the risk of Wanda becoming too asset-dependent**.
The continuation of the crisis.
Although"Bet"The crisis was lifted, but the crisis of Wanda Group was not completely eliminated. The resolution of the crisis is only temporary, and the new investment agreement is closely related to the listing progress of Zhuhai Wanda Commercial Management. If the company does not go public next time, the crisis may flare up again. It also raises concerns about how Wanda will respond when Mr. Wang's funds are insufficient to deal with the renewed crisis.
In the face of the crisis, Wanda Group had to alleviate the pressure through ** assets. However, the value space left behind the ** asset is getting smaller and smaller, and Wanda will inevitably continue to ** the asset, and the pressure is also increasing. What's more, Wanda's problems are not just financial, its operating performance is also declining. For example, due to the impact of the epidemic, Wanda Plaza's rental income has been hit, resulting in a decline in the company's profit margin. Therefore, even if overcome"Bet"In the crisis, Wanda Group is still facing difficulties and challenges.
In general, Wanda although successfully passed"Bet"crisis, but still facing huge financial pressure and operational difficulties. Cancellation"Bet"The crisis is only a means for Wanda to deal with the crisis, not a fundamental way to solve the problem. How to further improve operational efficiency, optimize asset structure, and strengthen cash flow management are problems that Wanda must think deeply about and solve. Only through comprehensive strategic transformation and operational improvement can Wanda Group truly get out of the predicament and achieve sustainable development.