Wanda Announced Business Data: Intense Light Asset Restructuring

In January 11th, Wanda announced its business data. It is estimated that the total contract revenue in 2016 will be about 130 billion yuan, of which sales of real estate contracts are expected to be about 100 billion yuan.

In 2015, the sales contract of Wanda business was about 164 billion 80 million yuan.

According to this rhythm, after 2016 or longer, Wanda real estate sales will be reduced to less than 100 billion, and Wanda will withdraw from the 100 billion housing business camp. At the same time, Hengda, also on the road of diversification, has entered the 200 billion camp in 2015. The leading leader will be hit by 300 billion in 2016. For the vast majority of developers, even if the pformation is done, the original main business is still expanding.

Wanda's steering this time, is it another way to make a new path? Before several pformations, Wang Jianlin led Wanda from a real estate developer in a corner to the position of the commercial real estate boss in China.

And this time, he will lead Wanda's great ship to where?

For the sale target, Wanda's explanation is that the company will continue to push ahead.

Real estate sales will no longer be the main growth direction of company performance in the future.

With the real estate bid farewell to gold for ten years to enter the "Silver Age", with the decline of profit margins and high inventory prices, most housing companies began to seek new profit growth points and plan diversified development models.

Wanda is the fastest growing company in many pformation Housing enterprises.

To reduce sales targets and reduce the proportion of real estate business is, to a certain extent, the result of "self revolution" and "active regulation" initiated by Wang Jianlin.

At the beginning of 2015, Wanda started the fourth pformation. Wang Jianlin claimed that Wanda would have large assets and no longer rely on the real estate sales business, and began to tear up the "real estate" label and pform into an international consumer service provider.

The core measure of Wanda's pformation is light assets.

Last year, Wanda changed the mode of selling rent, and in the future, apartments and apartments need not be sold as a means of financing.

Wang Jianlin introduced Wanda Commercial light asset line will be invested by others.

Wanda is responsible for site selection, design, construction, investment and management, and the rental income derived from Wanda and investors is divided into a certain proportion.

He pointed out that Wanda did not need to invest a penny in this model, but the annual benefits were considerable, which could reduce financial pressure, reduce corporate liabilities, and substantially raise net profit margin and net asset yield.

In addition, the advantage of this mode is to get income from rents, and the development of enterprises will not be affected by the real estate situation and housing prices. This will smooth the economic cycle and make the income more stable.

Judging from the rental income in 2015, the light assets model has achieved initial success.

Data show that last year, Wanda Plaza rental income of 14 billion 400 million yuan, an increase of 30.7% over the same period, due to the substantial increase in rents, rental collection and property management fees collection rate of 100%, rental profits accounted for Wanda commercial profit is expected to exceed 35%.

Wanda expects that the company's property leasing business will continue to grow rapidly in 2016, so the core net profit will also maintain a relatively fast growth.

Wang Jianlin's long-term goal is to raise the net share of rent to over 50% in three years.

And the property area of Wanda has reached a new high, making it possible for subsequent rental income growth.

Performance express shows that in 2015, the new holdings of Wanda had 4 million 755 thousand square meters of property, totaling 26 million 321 thousand square meters, ranking first among the global real estate enterprises, and surpassed the Simon property of "commercial real estate predators" in the United States.

Yan Yuejin, research director of the think-tank center of Yi Ju Research Institute, believes that

The light asset business model has a good prospect in terms of profitability and provides a sample for other domestic developers.

However, whether or not Wanda's rental income can maintain sustained growth depends on its operation in a large number of 234 line cities, which has been depressed by the domestic economic downturn. At present, many 234 tier cities have seen a decline in commercial rentals.

In 2016, Wanda will continue the pformation of light asset mode. Last year, Wanda Vanke reached a strategic cooperation. Wanda will give many residential and apartment development projects to Vanke.

According to Tan Huajie, director general of Vanke, the scale of cooperation between the two sides will be over 100 billion.

Wanda will also speed up the expansion of Wanda Plaza across the country.

In 2016, we planned to open more than 50 Wanda Plaza, of which more than 20 were light assets projects.

Wang Jianlin revealed that with the support of light asset mode, the goal of Wanda business is to open 400 to 500 Wanda Plaza by 2020, and ten years later, Wanda will strive to build 1000 Wanda Plaza in China.

Wanda hopes to expand the scale of light assets to produce marginal effects and drive the growth of its other sectors.