--- title: "Wang Jianlin's \"white knight\", continues to go on a crazy \"shopping spree\"?" description: "Wang Jianlin is unfortunate, yet also fortunate. After the failure of the bet, it was unexpected to the outside world that Wang Jianlin and Wanda would land in such a way. Turning the clock back five " type: "topic" locale: "en" url: "https://longbridge.com/en/topics/20675354.md" published_at: "2024-04-23T01:11:47.000Z" author: "[侃见财经](https://longbridge.com/en/profiles/3206955)" --- # Wang Jianlin's "white knight", continues to go on a crazy "shopping spree"? Wang Jianlin is unfortunate, yet also fortunate. After the failure of the bet, what surprised the outside world was how Wang Jianlin and Wanda Group would land in such a situation. Rewind the clock five months ago, Wanda Commercial Management's IPO still showed no progress. As the bet deadline approached, Wang Jianlin's financial pressure surged, and the massive funding gap became his biggest concern. Although since the beginning of the year, Wang Jianlin had started disposing of core assets like Wanda Film's equity to secure much-needed cash flow in case Wanda Commercial Management couldn't list on time. However, all these efforts ultimately failed to bring the best outcome. While selling Wanda Film provided some cash flow and reduced Wanda's debt, the IPO of Wanda Commercial Management was still one step away. Most of the time, circumstances overpower individuals, and this holds true even for Wang Jianlin, once the richest man in China. As outsiders speculated how much compensation Wang Jianlin would pay for the failed bet, an unexpected solution emerged into public view. It must be said that when it comes to life-and-death decisions, few entrepreneurs can match Wang Jianlin's boldness. On December 12, Wanda's official website promptly announced that PAG and Dalian Wanda Commercial Management Group had signed a new investment agreement. Under the new agreement, PAG, along with other investors, would reinvest in Zhuhai Wanda Commercial Management after Dalian Wanda Commercial Management redeemed their previous investments upon maturity. Dalian Wanda Commercial Management would hold a 40% stake as the single largest shareholder, while PAG and other existing and new investors would collectively hold 60%. Three months later, the funds were secured. Wang Jianlin's Dalian Xindameng Commercial Management received a combined investment of 60 billion yuan from five institutions. **The cost? Wang Jianlin completely lost control of Wanda Commercial Management.** For Wang Jianlin, a lifetime of effort ultimately ended in "someone else's wedding dress," which is truly lamentable. But for Wanda, surviving in this manner is a stroke of luck amid misfortune. After this investment, Wanda Commercial Management's valuation will drop to 100 billion yuan. Once the deal is completed, Wang Jianlin's family wealth is expected to shrink further, with some institutions predicting it will be reduced to just over 20 billion yuan. In contrast to the decline of Wang Jianlin's family, PAG and Shan Weijian made a name for themselves in this acquisition, gaining significant fame. Notably, PAG and Shan Weijian's bets aren't limited to Wanda—their shopping spree in the real estate market has already begun. # **The era of Wang Jianlin has ended** To save the struggling Wanda, Wang Jianlin made many compromises, including selling Wanda's most core assets. On April 9, Beijing Wanda Plaza Industrial Co., Ltd. underwent a equity change, which was highly significant for Wanda as the company holds Beijing Wanda Plaza, the location of Wanda's headquarters. Rewind sixteen years, when Wang Jianlin ambitiously moved the group headquarters from Dalian to Wanda Plaza on Jianguo Road in Beijing. This relocation was a historic event for Wang Jianlin and a key milestone for Wanda's expansion nationwide and globally. Riding the real estate boom, Wang Jianlin completed his "triple jump" in just a few decades, securing his position as China's richest man. At his peak, even Jack Ma had to tread carefully around him. Sixteen years later, fate played its tricks. The industry's predicament trapped Wanda and also "trapped" the once-richest man, Wang Jianlin. After this equity change, the original sole shareholder, Dalian Wanda Commercial Management, and Wanda executives like Xiao Guangrui and Hou Hongjun exited. They were replaced by Kunhua Company, holding a 99.99% stake, and Kunyuan Chenxing Company, holding 0.01%. Behind these two companies are New China Life Insurance and CICC Capital. It is reported that the sale of Wanda's headquarters, like previous sales of Wanda Plazas in other cities, was aimed at alleviating liquidity pressure. After "letting go" of Beijing Wanda Headquarters, Wang Jianlin then "let go" of Wanda Film. Round after round of equity changes signaled Wanda's soft landing. On the evening of April 16, Wanda Film released an "Announcement on the Completion of Indirect Controlling Shareholder's Equity Transfer and Change of Company Control." The announcement stated that Wanda Culture Group and Wang Jianlin transferred 20% and 1.2% of their stakes in Wanda Investment, respectively, with the industrial and commercial registration changes completed on April 15. Thus, China Ruyi and Ruyi Investment under the "Ruyi Group" now hold 100% of Wanda Investment's shares. Wang Jianlin and Wanda Investment are completely separated, and the company's actual controller has become Ke Liming. This means Wanda Film has officially changed hands, and Wang Jianlin's film dream has come to an end. Looking back at Wang Jianlin's entrepreneurial journey of over thirty years, reaching this point feels more like a microcosm of an industry. The successive sales of core assets resemble a silent curtain call, marking the definitive end of Wang Jianlin's era. However, Wang Jianlin recently made a rare new external investment, drawing public attention. Tianyancha information shows that Zhuhai Wanda Ruichi Enterprise Management Co., Ltd. underwent an industrial and commercial change, with the original sole shareholder, Dalian Wanda Commercial Management Group, exiting and Wang Jianlin becoming the sole shareholder. Notably, Wang Jianlin hasn't made any new external investments in years, and Zhuhai Wanda Ruichi Enterprise Management is currently his only wholly-owned company. # **Will Shan Weijian continue shopping?** After rescuing Wanda Commercial Management, PAG and Shan Weijian didn't stop—they chose to "continue shopping." According to market news, on the afternoon of April 20, led by the Haimen District Government of Nantong City, Zhongnan Construction's controlling shareholder Zhongnan Urban Construction held talks with PAG, Jiangsu Asset, and other institutions on debt resolution and equity transactions. This news was confirmed by Zhongnan Construction. Affected by this, Zhongnan Construction's stock price hit the daily limit on April 22. However, the Shenzhen Stock Exchange promptly issued a letter of concern, requesting the company to clarify the authenticity of the media reports. According to public information, Chen Jinshi, the actual controller and chairman of Zhongnan Construction, was once the richest man in Nantong, Jiangsu. As Zhongnan Construction fell into trouble, Chen Jinshi also faced a personal crisis. On the evening of April 18, Zhongnan Construction issued a warning announcement stating that as of that day, the company's stock price had closed below 1 yuan per share for ten consecutive trading days, posing a risk of delisting. This was already the company's second delisting warning. **According to its sales data, in the first quarter of 2024, Zhongnan Construction's cumulative contract sales were only 4.73 billion yuan, a year-on-year decrease of 38%. In other words, Zhongnan Construction's biggest problem lies in sales.** On the evening of April 22, Zhongnan Construction released its 2023 financial report, showing total revenue of 68.488 billion yuan, a year-on-year increase of 16.01%, and a net loss of 5.292 billion yuan, a year-on-year decrease of 42.37%. **Notably, this marks Zhongnan Construction's third consecutive year of losses. Moreover, in 2023, the company added impairment provisions totaling 3.085 billion yuan.** **After the financial report was released, Zhongnan Construction also issued an "Announcement on the Implementation of Other Risk Warnings and Trading Suspension," stating that starting April 24, the company's stock abbreviation would change from "Zhongnan Construction" to "ST Zhongnan."** **According to the company's 2023 annual report, as of the end of 2023, Zhongnan Construction's total assets were approximately 226.9 billion yuan, with total liabilities of 206.8 billion yuan, resulting in a debt-to-asset ratio exceeding 91%.** The Shenzhen Stock Exchange's letter of concern and this massive loss report are undoubtedly bad news for Zhongnan Construction. But if PAG truly steps in to help, it could revitalize the company's assets. For this once 200-billion-yuan real estate giant, if PAG's involvement is confirmed, the chances of overcoming the crisis are relatively high. PAG's leader, Shan Weijian, previously publicly expressed optimism about real estate, stating that China doesn't face a severe oversupply issue—only suppressed demand and prices due to policies. PAG has acted consistently, counter-trend by acquiring Wanda Commercial Management. We believe that as the real estate bubble gradually deflates, PAG and Shan Weijian's bargain-hunting won't stop—this is just the beginning. ### Related Stocks - [002739.CN - WANDA FILM](https://longbridge.com/en/quote/002739.CN.md) - [300168.CN - Wonders Information](https://longbridge.com/en/quote/300168.CN.md) - [00169.HK - WANDA HOTEL DEV](https://longbridge.com/en/quote/00169.HK.md) --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.