January 20, 2018 / 11:19 AM / 3 months ago

China's Dalian Wanda Group says 2017 revenue down 10.8 pct

HONG KONG, Jan 20 (Reuters) - Chinese conglomerate Dalian Wanda Group said on Saturday its revenue dropped for a second consecutive year, by 10.8 percent in 2017, as the group sold off property assets and faced increasing scrutiny from regulators and lenders.

The property-to-entertainment group, owned by tycoon Wang Jianlin, reported 227.4 billion yuan ($35.54 billion) in revenue, while net profit remained flat compared with 2016, according to a statement posted on the company’s website. It did not reveal the profit figure.

Total assets, of which 93 percent are domestic, declined 11.5 percent to 700 billion yuan.

The group came under pressure last year from a government crackdown on perceived risky spending overseas and high levels of corporate debt. Banks heightened their scrutiny and ratings agencies downgraded its property unit to junk status.

The Chinese conglomerate is expected to announce the sale of two Australian property projects in the coming days, sources have told Reuters, the latest in a string of asset sales as the firm looks to reduce its portfolio after a major acquisition spree.

Wanda said earlier this week it had agreed to sell its interests in the London luxury development project, One Nine Elms, for $81 million.

Wanda’s commercial real estate arm, which sold a portfolio of hotels and 13 tourism assets in China for $9 billion in July, saw income fall 21 percent last year to 112.5 billion yuan.

Revenue at its sports division increased by 12.3 percent to 7.2 billion yuan, while that of the cultural division rose 32.6 percent to 63.8 billion yuan.

Wanda is considering a listing for its sports assets as part of efforts to rationalise its portfolio, according to people familiar with the situation. ($1 = 6.3990 Chinese yuan renminbi) (Reporting by Clare Jim and Julie Zhu; Editing by Stephen Coates and Clelia Oziel)

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