We refer to recent media reports such as The inside story of the Tencent-Baidu-Wanda breakup: How Wanda's e-commerce company burnt RMB5 billion? and other related articles for which neither investigation nor any interview was conducted. This so-called inside story is pure fabrication and all such reports are inaccurate.

In August 2014, Tencent, Baidu and Wanda entered into a strategic cooperation agreement, with plans to set up a joint venture company and the intention to invest RMB5 billion into the cooperation project in three years. In reality, however, owing to a number of reasons, investment cooperation among the three parties did not materialize. Shanghai New Ffan E-commerce Co., Ltd. (hereinafter referred to as "Ffan") was completely funded by Wanda, and both Tencent and Baidu did not actually invest any funds.

Wanda has always had strategic cooperation with Baidu and Tencent in many areas, and such cooperation have played a positive role in our respective business development. Going forward, Wanda will continue to carry out multidimensional and deep cooperation with Baidu and Tencent.

Based on the facts stated above, the claim in the inaccurate media report that "Wanda's e-commerce company burnt RMB5 billion" is completely groundless. Individual media outlets which did not verify or conduct in-depth investigation and/or an interview before issuing their reports are extremely irresponsible.

Ffan is currently blazing a trail in uncharted territory, and its difficulties cannot be easily compared to the average model. Since Ffan's incorporation, Wanda was the only party that had invested in the company in terms of capital, resources, staff and materials. After more than two years of practical experience, amid twists and turns, Ffan has seen initial results. Wanda firmly believes that the potential for the "bricks and mortar + internet" market is enormous, and will continue to invest in Ffan in anticipation of greater success.

At this time, Ffan is actively promoting the "bricks and mortar + internet" growth model. It is leveraging internet technology, thinking and measures to connect with physical retail, commercial real estate, culture and tourism, transportation, health care and many other industries. The use of smart applications as the primary model and centered on the eco-intelligent lifestyle experience of users to create a real economy internet-oriented management ecosphere for the purpose of building an all-round open platform for operators of real industries as well as consumers is not only the active exploration of internet structural transformation on the part of Wanda, but has also been widely recognized by its partners in brick-and-mortar industries. As of end-July 2016, on the first anniversary of Ffan going online, Ffan's open platform boasts more than 3,000 partnership commercial projects with more than 40,000 businesses in the Ffan business alliance. The total number of Ffan members exceeded 120 million, of which active members comprised 47.18 million; Ffan app downloads amounted to 13.5 million.

Just like Rome wasn't built in a day, Ffan's growth depends on both its own hard work and support from all sectors. Ffan is willing to work together with any partner to jointly drive the bricks and mortar-internet structural transformation. As for how Ffan will turn out in the future, we say, "Stay tuned".

Shanghai New Ffan E-commerce Co., Ltd.

August 04, 2016

We refer to recent media reports such as The inside story of the Tencent-Baidu-Wanda breakup: How Wanda's e-commerce company burnt RMB5 billion? and other related articles for which neither investigation nor any interview was conducted. This so-called inside story is pure fabrication and all such reports are inaccurate.

In August 2014, Tencent, Baidu and Wanda entered into a strategic cooperation agreement, with plans to set up a joint venture company and the intention to invest RMB5 billion into the cooperation project in three years. In reality, however, owing to a number of reasons, investment cooperation among the three parties did not materialize. Shanghai New Ffan E-commerce Co., Ltd. (hereinafter referred to as "Ffan") was completely funded by Wanda, and both Tencent and Baidu did not actually invest any funds.

Wanda has always had strategic cooperation with Baidu and Tencent in many areas, and such cooperation have played a positive role in our respective business development. Going forward, Wanda will continue to carry out multidimensional and deep cooperation with Baidu and Tencent.

Based on the facts stated above, the claim in the inaccurate media report that "Wanda's e-commerce company burnt RMB5 billion" is completely groundless. Individual media outlets which did not verify or conduct in-depth investigation and/or an interview before issuing their reports are extremely irresponsible.

Ffan is currently blazing a trail in uncharted territory, and its difficulties cannot be easily compared to the average model. Since Ffan's incorporation, Wanda was the only party that had invested in the company in terms of capital, resources, staff and materials. After more than two years of practical experience, amid twists and turns, Ffan has seen initial results. Wanda firmly believes that the potential for the "bricks and mortar + internet" market is enormous, and will continue to invest in Ffan in anticipation of greater success.

At this time, Ffan is actively promoting the "bricks and mortar + internet" growth model. It is leveraging internet technology, thinking and measures to connect with physical retail, commercial real estate, culture and tourism, transportation, health care and many other industries. The use of smart applications as the primary model and centered on the eco-intelligent lifestyle experience of users to create a real economy internet-oriented management ecosphere for the purpose of building an all-round open platform for operators of real industries as well as consumers is not only the active exploration of internet structural transformation on the part of Wanda, but has also been widely recognized by its partners in brick-and-mortar industries. As of end-July 2016, on the first anniversary of Ffan going online, Ffan's open platform boasts more than 3,000 partnership commercial projects with more than 40,000 businesses in the Ffan business alliance. The total number of Ffan members exceeded 120 million, of which active members comprised 47.18 million; Ffan app downloads amounted to 13.5 million.

Just like Rome wasn't built in a day, Ffan's growth depends on both its own hard work and support from all sectors. Ffan is willing to work together with any partner to jointly drive the bricks and mortar-internet structural transformation. As for how Ffan will turn out in the future, we say, "Stay tuned".

Shanghai New Ffan E-commerce Co., Ltd.

August 04, 2016