Mainland conglomerate Dalian Wanda Group plans an initial public offering for its internet finance business, betting on booming growth as it leverages the millions of customers packing its shopping malls, chairman Wang Jianlin said in Hong Kong yesterday.
The plan is part of a broader goal to capitalize other units including its film, tourism and sports businesses via stock listings, Wang, China's richest man, told the Asia Financial Forum.
He gave no timeline for any IPOs.
The Dalian Wanda Group, meanwhile, has set a lower target for 2016 revenue on expected significant decline in real estate income as it diversifies away from this core business, but said net profit is expected to maintain relatively higher growth. It sees revenues at 254.3 billion yuan (HK$301.45 billion) this year, 12.4 percent lower than its 2015 revenue.
Revenue from its property arm is expected to be 130 billion yuan, 32 percent lower than last year's 190.5 billion yuan. But its net profit will see double-digit growth.
Dalian Wanda Group is the holding company of Dalian Wanda Commercial Properties (3699).
Wang said he sees no problems with the overall property market in the mainland because excess supply is mostly concentrated in smaller cities that make up a small portion of the national value. Property inventory in so-called third- and fourth-tier cities could take between four and five years to digest, he added.
"The China property market collapsing is only a view from the West, they have been saying this for 20 years ... the major issue is restocking in third- and fourth-tier cities," he said.
"Sales are highly concentrated in first- and second- tier cities, where 36 top cities account for three-fourths of the total sales value. So the portion from third- and- fourth-tier cities is very low. As long as they destock slowly, there is no problem."
The company, however, sees more risk investing in China's largest cities because of high land costs, and will continue to focus on third-tier cities, Wang said. REUTERS
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