(Xishuangbanna, January 16, 2016)
By Chairman Mr. Wang Jianlin
Today, we’re holding Wanda Group’s 2015 annual meeting at the resort that we’ve built, in the beautiful city of Xishuangbanna. Yesterday, everyone here had a chance to witness what this resort has to offer. I believe you're all still immersed in shock and joy. Here, I, on behalf of 130,000 employees of Wanda Group, warmly welcome all representatives attending the annual conference.
Today, I will deliver my report in two parts:
I. Review of Major Achievements in 2015
In 2015, the Chinese and global economies continuously changed for the worse, and the entire world faced a material threat from new terrorism. Safely speaking, we faced many difficulties, both domestically and internationally. Despite such a hard time, Wanda Group still performed very well, thanks to the correct decisions of the Board of Directors, the outstanding performance from our executive team headed by President Ding, and more importantly, concerted efforts of all employees.
(1) Wanda Group outperformed its annual targets
In the year of 2015, the Group’s total assets (in accordance with the cost method) grew to RMB634 billion, up 20.9% year-on-year; revenue was RMB290.16 billion, achieving estimates by 109.3% and up 19.1% year-on-year with estimated net profits (unaudited) expected to increase significantly over previous year.
The Group’s property arm, Wanda Commercial Properties’ annual revenue climbed to RMB190.45 billion, meeting estimates by 101.3% and up 4.4% year-on-year. Real estate contract revenue reached RMB164.08 billion, meeting targets by 101.5% and up 2.5% year-on-year. 26 new Wanda Plazas were opened; Wanda Plaza’s total rental revenues hit RMB14.4 billion, achieving targets by 101.1% and up 30.7% year-on-year, which is an encouraging result. Due to the substantial increase in rents, annual rent and property management fee collection rates were 100%, net profit from rental as a percentage of total net profit of Wanda Commercial Properties is expected to exceed 35%, up 5 percentage points compared to 2014. Wanda Commercial Management Co., Ltd. has realized a rental collection rate of 100% for three consecutive years. 10 new hotels were opened this year, bringing Wanda’s total number of rooms to 21961. Annual revenue from hotels reached RMB5.24 billion, achieving targets by 101% and up 22.5% year-on-year; owners’ profits reached RMB710 million, meeting targets by 119.7% and up 22.4% year-on-year. 4.755 million square meters of property area was added, bringing the total area of properties held to 26.321 million square meters (excluding the areas of properties owned by the Group) and continuing to take the lead worldwide. Combined annual foot traffic at Wanda Plazas and Ffan partner shopping malls reached 4.62 billion, with annual foot traffic of Wanda Plazas alone amounting to 2.03 billion. Wanda Commercial Properties successfully hosted the ninth Wanda Annual Commercial Convention with the registration and participation of more than 3,000 retailers and 10,000 people. Now, the conference has evolved from a company meeting to a great event of the industry and an open platform with the integration of both offline and online, which fully opens up to external partners. This year, Wanda Commercial Properties will host the 10th annual convention, which expects to be a very significant event. I hope Wanda Commercial Management will carefully host the annual conference this year as a successful event. Revenues from Wanda Commercial Properties’ other businesses totaled RMB6.73 billion.
Wanda Cultural Industry Group’s annual revenue reached RMB51.28 billion, achieving targets by 114%, and up 45.7% year-on-year. Wanda Cinema Line’s revenue reached RMB8 billion, meeting targets by 120.4% and up 49.9% year-on-year; revenue from box...
(Xishuangbanna, January 16, 2016)
By Chairman Mr. Wang Jianlin
Today, we’re holding Wanda Group’s 2015 annual meeting at the resort that we’ve built, in the beautiful city of Xishuangbanna. Yesterday, everyone here had a chance to witness what this resort has to offer. I believe you're all still immersed in shock and joy. Here, I, on behalf of 130,000 employees of Wanda Group, warmly welcome all representatives attending the annual conference.
Today, I will deliver my report in two parts:
I. Review of Major Achievements in 2015
In 2015, the Chinese and global economies continuously changed for the worse, and the entire world faced a material threat from new terrorism. Safely speaking, we faced many difficulties, both domestically and internationally. Despite such a hard time, Wanda Group still performed very well, thanks to the correct decisions of the Board of Directors, the outstanding performance from our executive team headed by President Ding, and more importantly, concerted efforts of all employees.
(1) Wanda Group outperformed its annual targets
In the year of 2015, the Group’s total assets (in accordance with the cost method) grew to RMB634 billion, up 20.9% year-on-year; revenue was RMB290.16 billion, achieving estimates by 109.3% and up 19.1% year-on-year with estimated net profits (unaudited) expected to increase significantly over previous year.
The Group’s property arm, Wanda Commercial Properties’ annual revenue climbed to RMB190.45 billion, meeting estimates by 101.3% and up 4.4% year-on-year. Real estate contract revenue reached RMB164.08 billion, meeting targets by 101.5% and up 2.5% year-on-year. 26 new Wanda Plazas were opened; Wanda Plaza’s total rental revenues hit RMB14.4 billion, achieving targets by 101.1% and up 30.7% year-on-year, which is an encouraging result. Due to the substantial increase in rents, annual rent and property management fee collection rates were 100%, net profit from rental as a percentage of total net profit of Wanda Commercial Properties is expected to exceed 35%, up 5 percentage points compared to 2014. Wanda Commercial Management Co., Ltd. has realized a rental collection rate of 100% for three consecutive years. 10 new hotels were opened this year, bringing Wanda’s total number of rooms to 21961. Annual revenue from hotels reached RMB5.24 billion, achieving targets by 101% and up 22.5% year-on-year; owners’ profits reached RMB710 million, meeting targets by 119.7% and up 22.4% year-on-year. 4.755 million square meters of property area was added, bringing the total area of properties held to 26.321 million square meters (excluding the areas of properties owned by the Group) and continuing to take the lead worldwide. Combined annual foot traffic at Wanda Plazas and Ffan partner shopping malls reached 4.62 billion, with annual foot traffic of Wanda Plazas alone amounting to 2.03 billion. Wanda Commercial Properties successfully hosted the ninth Wanda Annual Commercial Convention with the registration and participation of more than 3,000 retailers and 10,000 people. Now, the conference has evolved from a company meeting to a great event of the industry and an open platform with the integration of both offline and online, which fully opens up to external partners. This year, Wanda Commercial Properties will host the 10th annual convention, which expects to be a very significant event. I hope Wanda Commercial Management will carefully host the annual conference this year as a successful event. Revenues from Wanda Commercial Properties’ other businesses totaled RMB6.73 billion.
Wanda Cultural Industry Group’s annual revenue reached RMB51.28 billion, achieving targets by 114%, and up 45.7% year-on-year. Wanda Cinema Line’s revenue reached RMB8 billion, meeting targets by 120.4% and up 49.9% year-on-year; revenue from box office receipts reached RMB6.3 billion, growing 49.6% year-on-year. Wanda Cinema Line’s Wan Club membership reached more than 50 million members, up more than 50% year-on-year, and gained over 2 million members every month. 65% of ticket sales revenue came from online sales, showing Wanda Cinema Line is already a typical Internet+ enterprise; consumption by members accounted for over 80% of total revenue, indicating stable revenues constitute a majority revenue source of Wanda Cinema Line; 941 cinema screens were added, bringing the total number of screens to 2,557 respectively. Wanda Cinema Lines’ attendance rate was 1.9 times the industry average, while revenue generated per screen was 2.1 times the industry average.
Wanda Pictures grew box office receipts to RMB6.15 billion, revenue to RMB580 million, achieving targets by 180% and up 36.1% year-on-year. Moreover, in spite of only being established two years ago, Wanda Pictures ranked first in terms of both revenue and box office receipts. It has invested in A Hero Or Not, Go away Mr. Tumor, The Ghouls and other films that have reaped both good word of mouth and box office receipts.
Box office receipts from films distributed by Wuzhou Film Distribution reached RMB6.7 billion, which accounted for 24% of the entire domestic market, with annual revenue reaching RMB1.65 billion, achieving targets by 183.7%. After only being established one year ago, Wuzhou Film Distribution ranks first in China for both box office receipts and revenue.
Here, the Group will praise Wanda Cinema Line, Wanda Pictures and Wuzhou Film Distribution as well as Vice President Ye Ning, who supervises the three units, for their excellent work. Before this annual conference, the Group already promoted the general managers of the three subsidiaries. Wanda has an old saying: Performing well at Wanda is the best relation. Wanda has five principles for human resources management, while one of the principles is to simplify interpersonal relations. Therefore, anybody working well at Wanda will be promoted. Here, I would like to call for all units of the Group to learn from these three companies. Wanda Group has not separately praised any company or individual at the annual meeting for years, but this time, I would like to praise them as an exception, because they have indeed performed very well.
Wanda Tourism achieved annual revenue of RMB12.01 billion in 2015, achieving targets by 111.7% and up 59.8% year-on-year.
Wanda Sports Holdings annual revenue reached RMB5.87 billion, fulfilling targets by 132.7%.
Wanda Kidsland opened 51 new outlets to bring its total number of nationwide outlets to 60. It also brought in revenues of RMB220 million, achieving targets by 103.6%. Other revenues from Wanda Cultural Industry Group amounted to RMB3.81 billion.
Wanda Financial Group annual revenue was RMB20.89 billion, exceeding annual targets by 697%. Considering Wanda Financial Group was just established, I will not mention the performance of its members one by one here.
Wanda Department Stores reported revenues of RMB23.05 billion, achieving annual targets by 102.3% and up 11.1% year-on-year. Other revenue amounted to RMB4.5 billion.
It is very exciting that none of the arms of the Group have fallen behind, and they have all outperformed the tasks. In the context of the hard time of the Chinese economy, these results we have achieved well prove Wanda’s executive capacity. I hope everybody here will continue to work hard and then attend the annual meeting happily every year.
(2) The Group has made a difference from transformation
1. The service business revenue grew sharply. In 2015, the service segment contributed up to 43% of the Group’s total revenue, up 10 percentage points year-on-year. The real estate revenue kept steady and almost didn’t grow.
2. Commercial rental revenue rose remarkably. Commercia
