The VAM was lifted, Wanda retained 38 billion investment, and Wang Jianlin is still facing a crisis

Mondo Finance Updated on 2024-01-30

Wanda Group ushered in a blockbuster good news, and the more than 30 billion yuan of "gambling" money that was originally to be repaid at the end of this year was retained, which allowed Wanda to take a breath of air.

In recent years, Wanda Group has been trying to seek a listing to attract more investors and obtain financial support. However, Zhuhai Wanda Commercial Management's road to listing was not smooth. Four unsuccessful listing applications to the Hong Kong Stock Exchange have left Wanda facing a huge cash flow crisis. In order to solve this difficulty, Wang Jianlin and Wanda executives racked their brains, and finally succeeded in resolving the "VAM" crisis less than a month before the end of the year.

According to official press releases, PAG has signed a new investment agreement with Wanda. Under the terms of the agreement, PAG will work with other investors to redeem the investment funds after the expiration of the old investment agreement and then invest in Zhuhai Wanda Commercial Management. In this way, Wanda first returned the money to the war investment, and then the war investment was re-invested, and the funds re-entered the Wanda Group's account after a circle, and there was no need to immediately repay more than 40 billion yuan in cash.

For Wanda, this is undoubtedly a blockbuster benefit. After all, what Wanda needs most is cash, and being able to "save" tens of billions of precious resources is equivalent to unraveling a sword of Damocles hanging over Wang Jianlin's head. And it's a good deal for the pitchers. Because there are not many good investment opportunities in the current market, even if they succeed in getting their funds back, they still need to find new and suitable investment channels, which is not easy.

However, the cancellation of the VAM does not mean that Wang Jianlin and his Wanda Group have completely survived the crisis. Wanda's current financial situation remains quite tight. In the case of Wanda Commercial Management, the total principal amount of the company's existing onshore bonds is as high as 690.2 billion yuan, of which the scale due within one year is 187.8 billion yuan. The total amount of US dollar debt outside the country reached US$1.3 billion, or nearly 10 billion yuan. In addition to bonds, Wanda also faces other debts such as bank loans and commercial bills, with total current liabilities exceeding 100 billion yuan and short-term liabilities reaching 66.2 billion yuan. Its monetary funds are only 13.3 billion yuan, and you can imagine how much pressure it has to repay its debts.

In order to alleviate the liquidity crisis, Wang Jianlin had to ** assets. Recently, Wanda Group has secured funding through an equity stake in Wanda Films and some Wanda Plazas. Among them, Beijing Wanda transferred 51% of the equity of Wanda Film to Shanghai Ruyi, becoming a wholly-owned subsidiary of the latter. Also in July of this year, Wanda Investment won 21700 million yuan of ** will be 826% of Wanda Film's shares were sold to Lu Lili, the proprietress of Oriental Fortune. In addition, Wanda has also built a number of Wanda Plazas, such as Shanghai Zhoupu Wanda Plaza, Shanghai Songjiang Wanda Plaza, Xining Haihu Wanda Plaza, Jiangmen Taishan Wanda Plaza, etc. There are reports that more are located in.

Wanda Plaza, a first- and second-tier city, has also entered the to-be list, ready to prepare for alleviating Wanda's financial pressure.

However, selling and selling is not Wanda's long-term solution. Now the difficulties are solved, but if there is a similar crisis next time, how will Wanda respond?Obviously, it is not enough to sell the asset alone. Therefore, Wanda Group still needs to step up its efforts to find more sustainable development strategies. At the same time, it is also necessary to strengthen internal management, improve operational efficiency and reduce financial risks.

The cancellation of the VAM means that Wang Jianlin and Wanda Group have temporarily solved the most pressing problem in the short term. However, they still have to give their all in the face of the challenges ahead. Only by maintaining strategic agility and organizational innovation can we truly achieve sustainable development and steady growth.

Overall, Wanda Group successfully secured an investment of 38 billion yuan by lifting the VAM crisis, providing the company with a chance to breathe. However, the problem of tight cash flow still exists, and Wanda still needs to alleviate the liquidity crisis through means such as ** assets. At the same time, the listing of Wanda Commercial Management still exists in the future, and if it cannot be successfully listed, it may face another crisis. Therefore, Wanda Group needs to further increase its efforts to find sustainable development strategies, strengthen internal management, and improve operational efficiency to ensure the company's stable development.

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