Wang JianlinOnce again, we face serious challenges. According to a report by The Paper,Wanda Groupwith offshore bondholders for US$600 millionDebtThe rollover plan was communicated. WandaThe rare use of the word "pleading" to make a request to a creditor. The bond was issued in 2014 with a total amount of $600 million and a maturity date of January 2024, with a yield of up to 739%。WhileWandaHopefullyDebtIt can be rolled back for about 1 year, and the payment will be completed by the end of 2024. WandaThe reason given is that if the rollover is not possible, there will be a material default, which will resultWandaIt was not possible to continue to obtain loans in domestic banks, thus cutting offWandafunds**. Thankfully, the latest news showsInvestmentsPeople have already agreedWandaofDebtRollover plan. DebtThe crisis was temporarily eased. However, even in the face of this $600 millionDebtWang JianlinThe predicament is far from over, and there is an even greater challenge ahead of him.
Now,Wang JianlinThe headache is another bill of more than 30 billion. And reportedly, from the payment of these more than 300Small goalsThe time is only about 1 month. How did the more than 30 billion bills come about?Wang JianlinWhat did you do to suddenly have a huge bill of 30 billion?In fact, these 30 billion did not fall from the sky suddenly, but more than 2 years agoInvestmentsPeople deliveredWang Jianlinin hand. Zhuhai, July 2021WandaThe business management has introduced 22 strategic investment institutions, including Singapore PAG, Country Garden, Tencent, Ant, etc., and obtained a total of more than 30 billion yuanInvestments, with a shareholding ratio of 2117%。Wang JianlinwithInvestmentsA VAM agreement has been entered into between the people, if:WandaThe business management will not be able to complete the listing in 2023WandaIt will not only be necessary to redeem these more than 30 billionInvestments, and the corresponding interest needs to be paid. However,WandaThe current listing application has not yet been approved by the Hong Kong Stock Exchange, and this isWandaI applied for the fourth time in the past two years. Why did the Hong Kong Stock Exchange delay in approving it?WandaListing?It's becauseWang JianlinThe incident of the angry withdrawal from the Hong Kong market made the Hong Kong Stock Exchange feel troubled to this dayIf you think about it this way, it may be a bit of an oversimplificationBusinessThe way the world works. In fact, the Hong Kong Stock Exchange has been slow to approve itWandaThe reason for listing is the sameWandarelated to their own business conditions. In 2022,Wang JianlinRe-entry into the real estate industryWandaIt has successively acquired a number of real estate companies and is known as the "savior" of the industry. Jianye, Xinyuan, Tian Sen and other real estate company bosses have becomeWang Jianlinof close partners. However, the situation in the real estate market is beyond thatWang Jianlinexpectations. In 2023,WandaReal estate companies continue to report unpaid wages and work stoppages. WandaThe cash flow of business management is facingWandareal estate this hugeDebtThe burden begins to be a little struggling whileWandaBusiness management itself is also in trouble. According toWandaFinancial reports for the year ended first half of 2023WandaThe balance of cash and cash equivalents of the business management was 1469.2 billion yuan, a year-on-year decrease of 5344%。WhileWandaCommercially managedInterest-bearing liabilitiesUp to 14128.3 billion yuan, of which it is due within one yearInterest-bearing liabilitiesfor 2925.7 billion yuan, the existing cash cannot cover the short termDebt。If approved by HKEX at this timeWandalisting application, thenWandaThe enormous risks will undoubtedly be passed on to thousandsInvestmentsThis is clearly irresponsible. So,WandaThe fundamental reason for the inability to go public is its own problems.
Wang JianlinThis is not the first time I have experienced such a dilemma. As early as 6 years ago,Wanda GroupIt was plunged into darkness. In 2017,WandaSuddenly investigated by the China Securities Regulatory Commission, bond flash crash, stock price**,WandaFacing a huge crisis, more than 400 billionDebtLike a mountain pressed downWang Jianlinon the head. Faced with this dilemma,Wang JianlinAct decisively and willWandaCultural tourism and hotel business package**toR&FwithSunac。The deal caused a stir at the time, as 2017 was a hot time for the real estate industry, and the hotel business has beenWandaProvides abundant cash flow. Wang JianlinThe total price of these two high-quality assets** is less than 70 billion, which is estimated by the outside worldWang JianlinAt least 50 billion of that was lost. But in order to survive,Wang JianlinI chose "Survive with a Broken Arm". This was followed by a series of transformationsWang JianlinSolved more than 200 billionDebt, minus the mountain above him by half. The remaining 200 billion,Wang JianlinMore than 50 billion yuan has been solved by using the debt-to-equity swap, but there are still more than 140 billion leftDebtUntil now. That's more than 140 billionDebtIt may seem huge, but it's not urgent. As long-term interestDebt, as long as there is enough timeWandaThis can be solved by tweaking. However, the upcoming repurchase bill of more than 30 billion is almost not givenWang JianlinLeave time and space for processing.
In response to the crisis, in July of this year,Wang JianlinSold separatelyWandaThe shares of the film were exchanged for nearly 7 billion in cash. In addition, he also **WandaSquare、Financelicenses and assets such as Infront Sports. For nearly half a year,Wang Jianlinhas been desperately raising funds, he has obviously lost a lot of weight, and his appearance is no longer young and healthy, and some netizens commented that he has "lost his appearance". This shows that he is under a lot of pressure. According to incomplete statistics, this yearWandaThe square has been sold、Finance, cultural tourism, sports and other assets, the total amount has exceeded 80 billion yuan. However, even so, he still needs to raise more money to pay the upcoming bill of more than 30 billion.
Faced with the huge bills of more than 30 billion on the horizon,Wang JianlinFaced with a difficult choice. There is no doubt that he must find a way to solve this problem, otherwiseWandaThere will be huge risks. In this case, his two options are:DebtRestructuring or Assets**.
DebtRestructuring refers to the extension of the agreement with creditorsDebtperiod, adjustmentInterest rates, reduce the repayment amount, etcDebtof reimbursements. The advantage of this way is that you can avoid the ** of the asset and reduce the pairWandaThe impact of the holdsWandacore business. However, for nowWandaThere are already a lot of themDebtDebtRestructuring may encounter creditors' approvals, making it more difficult to negotiate.
Another option is Assets**. Raise cash through a portion or all of your assets to be used for repaymentDebt。This way you can quickly obtain a large amount of cash and alleviate short-term funding needs. However, this will also lead to:WandaThe loss of a portion of core assets will have an impact on future development.
Whichever way you choose, rightWang JianlinIt was a difficult decision. DebtRestructuring may take longer and be more complex to negotiate, while assets** may result:WandaLoss of core competencies. Before making a decision,Wang JianlinThe pros and cons need to be carefully weighed and fully communicated and negotiated with all parties.
Solve the immediate problemDebtThe problem is justWang JianlinOne of the challenges. In the future,WandaThere is also a greater challenge to face, that is, how to realize the transformation and upgrading of the company. Currently,WandaThe main business is still focused on real estate andBusinessThe real estate sector is facing severe market competition and policy restrictions in this field. In order to achieveSustainabilityWandaTransformation is needed to open up new areas of growth.
Wang JianlinSome attempts have already begun. For example, he has set his sights on the field of new energy vehicles and plansInvestments20 billion yuan to build a charging pile project. In addition, he plans to develop the cultural tourism industry and the InternetFinanceWait. However, these areas require a huge oneInvestmentsand long-term operation, can not expect immediate results. WandaCompetitors in these areas are already very strongWang JianlinYou need to find your own positioning and competitive advantage in the competition.
futureWandaIt is necessary to develop innovation capabilities, find new growth points, and get rid of dependence on traditional businesses. This requires:Wang JianlinThe wisdom and decision-making ability also require the cooperation and efforts of the team. Only through continuous transformation and upgrading,Wandain order to achieve itSustainabilityto win the competition in the market.
In summary,Wang JianlinFaced with a huge oneDebtPressures and challenges of transformation and upgrading. ResolvedDebtProblems require him to make difficult choices, and realizing the transformation and upgrading of the company requires his wisdom and decision-making ability. No matter how big the dilemma isWang JianlinAll are an experienced oneBusinessHome, I believe that he can overcome the current difficulties with tenacity and wisdom and achieve itWandaThe transformation and upgrading of andSustainability