The logo of the Dalian Wanda Commercial Properties is seen at a news conference in Hong Kong. (Photo : Reuters)
China's biggest private property developer Dalian Wanda Group Co Ltd plans an initial public offering (IPO) for its internet finance business, aiming to brace its future developments.
The IPO is part of a broader goal to finance other units, including film, sports business and tourism via stock listings, Chairman of the company Wang Jianlin quoted at the Asia Financial Forum in Hong Kong. The strategic targets for developing the company's Internet finances were also laid out, but the total capital to be raised or the specific timeline for the IPO's were not disclosed.
The internet finance service will cover 5,000 shopping hubs and around 800 million consumers. A membership card that combines many applications for loans, credit card services, retail, catering and entertainment services, and reward point earnings are to be issued to 500 million members.
Wanda Group also plans to extend its loans online by 300 billion Yuan. This will include both personal and corporate lending, amounting to 200 billion Yuan and 100 billion Yuan respectively. Wang also added that the membership card will account for the largest value of Wanda Group.
Meanwhile, The Dalian Wanda Group's expected significant decline in its real estate income has lowered the target for 2016 by 12.4 percent, compared to its 2015 revenue of 254.3 billion Yuan. The income from its property development firm is also expected to be 32 percent lower than the previous year's 190.5 billion Yuan.
"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," Wang said.
However seeing the immense risk in investing on large cities, he said that the company will continue to focus on third-tier cities.
