×
You will be redirected back to your article in seconds

China’s Wanda Hits Back at Allegations of Financial Difficulty

China’s Dalian Wanda group has hit back at allegations that it is in financial difficulty, including suggestions that its cash flow has been cut off.

The allegations were published recently on Chinese blog Baoyouqu, in a post headlined “Wang Jianlin Meets His Waterloo.” Wang is Dalian Wanda’s chairman. The company said it had reported Baoyouqu to the police for slander.

Wanda rebutted eight points made by the blog. Among them were suggestions that more than half of Wanda’s assets have been eroded, and that Wanda’s net assets are in fact loans from government-owned banks. Baoyouqu said that Wanda’s cash flow “has been cut off.”

The property-to-entertainment giant insisted that it has a strong asset base and has opened more than 50 Wanda Plaza shopping malls so far this year. It said that net assets exceeded $45.5 billion (RMB300 billion) in 2016, and will increase in 2017. And it said that revenues and cash flow will both exceed $30.3 billion (RMB200 million) in 2017. Those figures are unaudited; Wanda normally reports annual financial data in January.

Wanda also pushed back against the suggestion that a property company has no right to be in the business of exporting Chinese culture. Since acquiring U.S. cinema chain AMC in 2012, “Wanda has now screened over 160 Chinese films in overseas cinemas without government subsidies, accounting for 80% of the Chinese film industry’s international box office,” the company said.

Wanda has also been building a massive studio complex in the coastal Chinese city of Qingdao. Although it is now selling a majority stake in Qingdao Studios to property developer Sunac China in order to reduce its borrowings, Wanda is still in charge of the construction project. It said that it has now opened a new backlot with street scenes resembling European locations and 1930s Shanghai.

“Designed under the theme of cinema for nostalgia, the location meets the demands for shooting certain scenes in films and provides modern commercial services and offices. The location has revived the scenes of the neighborhoods from the past through pebbled walkways, detailed designs and decorative green plants,” it said on its website.

More Biz

  • Contract Placeholder Business WGA ATA Agent

    Signs of Solidarity and Strain Emerge as Week 2 of WGA-Talent Agency Standoff Begins

    Hundreds of WGA members rallied solidly behind their union last week as the industry grappled with uncertainties spurred by the sudden break between writers and their talent agency representatives. But as the standoff heads into its second week, signs of strain among some WGA members are beginning to emerge. Shalom Auslander, author and creator of [...]

  • Woodstock 50 Festival Postpones Ticket On-Sale

    Woodstock 50 Festival Postpones Ticket On-Sale Date

    UPDATED: The troubled Woodstock 50 festival has run into more difficulties, as multiple sources told Variety late Friday that the April 22 on-sale date for the event has been postponed. Agents for artists scheduled to perform at the festival — which include Jay-Z, Dead & Company, Chance the Rapper, Miley Cyrus, Imagine Dragons and Halsey [...]

  • National Enquirer - Jeff Bezos

    Hudson Media CEO James Cohen Purchases the National Enquirer

    Hudson Media’s CEO James Cohen announced Thursday that he will purchase the National Enquirer as well as American Media’s other tabloids, the Globe and the National Examiner. With the purchase of the National Enquirer, which Cohen reportedly bought for $100 million, he plans to strengthen their collaborative efforts, documentary shows, weekly podcasts, and theme parks. [...]

  • Amazon

    Amazon Music’s Free Tier Is More Advertising Play Than Spotify Killer, Analysts Say

    When news began to spread last week that Amazon Music’s long-anticipated free streaming tier was imminent, headlines emerged about its threat to Spotify and Apple Music, with some stories saying that Spotify’s stock price dropped in response to the news. But not only was today’s launch of the free tier basically a soft one — [...]

  • Nicki MinajCFDA Vogue Fashion Fund Dinner,

    Nicki Minaj Parts Ways With Longtime Managers (EXCLUSIVE)

    Nicki Minaj has parted ways with Gee Roberson and Cortez Bryant and Blueprint/ Maverick Management, a source close to the situation confirms to Variety. She had worked with the pair for the majority of her career. The source says the decision was mutual and amicable, and there was no specific reason for the split, adding [...]

  • Amazon

    Amazon Music Launches Free Streaming Tier, Through Alexa Only (for Now)

    Amazon Music today basically soft-launched its free streaming tier, in which U.S. customers of its Alexa voice assistant will have access to top Amazon Music playlists and thousands of stations, at no cost. The limited access that the new free service provides — it’s only available through Alexa, and when the listener requests a song, [...]

More From Our Brands

Access exclusive content