New stock preview | The final deadline for the 30 billion yuan bet agreement is approaching, will Zhuhai Wanda Business Management face a decisive battle?

and 90.6. If these profit targets are not met, the company will have to pay cash to the investors according to the specified amount. If the listing requirement is not met by the end of 2023, the issuer will have to pay approximately 30 billion yuan in equity repurchase to the pre-listing investors. From the current situation of Wanda Commercial Management, if any of the above conditions are not met and alternative solutions with investors are not successful, it will have a significant impact on the company's operations. In terms of financial reserves, as of May 31, 2023, the company's cash and cash equivalents decreased from 13.585 billion yuan at the end of 2022 to 8.217 billion yuan due to dividend payments, which is far less than the scale of compensation required if the listing fails. In addition, Wanda Commercial Management has had some of its equity frozen due to disputes in recent years, which adds to the pressure for the company to go public. In terms of profit requirements, the agreement requires the company to guarantee the actual net profit for 2021 and the audited net profit after deducting non-recurring gains and losses for 2022 and 2023 to be no less than 5.19 billion yuan, 7.43 billion yuan, and 9.06 billion yuan, respectively."94.6 billion yuan, with a cumulative three-year net profit of no less than 220.8 billion yuan. From the results, the company achieved a net profit of 3.512 billion yuan in 2021, falling short of the target; in 2022, the net profit increased significantly to 7.534 billion yuan, slightly exceeding the gambling requirements. However, for the company to achieve a cumulative net profit of 220.8 billion yuan in three years, it will need to achieve a net profit of 11.034 billion yuan in 2023, which is an increase of 46.45% compared to the significant growth in 2022. Undoubtedly, this is a major challenge."On the other hand, in terms of listing in Hong Kong, Wanda Commercial Management has still not obtained the "H-share issuance approval" from the China Securities Regulatory Commission, primarily due to concerns about the necessity and rationality of the company's operations and listing financing. Based on the previous supplementary filing requirements issued by the China Securities Regulatory Commission for Wanda Commercial Management's listing, doubts were raised in six aspects: corporate governance and internal operations, occupancy rate and collection rate, business independence, short-term debt risk, reasonable use of raised funds and dividend policy. Among them, the sixth point mentioned that the company distributed a total of 13.273 billion yuan in cash dividends from 2019-2021 and the first half of 2022, exceeding the total net cash flow from operating activities of 11.548 billion yuan during the same period. In addition, the board of directors plans to propose at the general meeting of shareholders after listing to distribute at least 65% of annual distributable profits in dividends. In response, the China Securities Regulatory Commission requested the company to explain the reasonableness of the cash dividend amount during the mentioned period, the future cash dividend policy, and the necessity and rationality of listing financing in the case of large cash dividends. Now, five months after the fourth submission, as the prospectus is about to expire, it remains uncertain whether the company can obtain the issuance approval from the China Securities Regulatory Commission. Whether Wanda Commercial Management will successfully list in 2023 has become a significant unknown that will determine the company's fate. Regarding the recent news about Wanda Commercial Management, the company is still actively trying to pursue both the goal of listing before the end of the year and discussions with investors on a possible extension plan, in order to achieve a better outcome. It is understood that in September of this year, Wanda Commercial Management conducted a pricing roadshow in Hong Kong for the purpose of IPO pricing and discussions with investment institutions. In October, Wanda responded to reports of "Wanda Commercial Management's intention to delay listing in Hong Kong" by stating that the listing is still in progress. In addition, insiders have revealed that considering the recent unfavorable market conditions, Zhuhai Wanda Commercial Management may choose to conduct the IPO next year. However, if it can obtain approval from regulatory authorities and favorable market conditions improve, Zhuhai Wanda Commercial Management may still list before the end of this year. At the same time, Zhuhai Wanda Commercial Management is also in discussions with investors to avoid repaying approximately 30 billion yuan in share repurchase funds if it fails to list by the end of 2023. Recently, there have been updates on the negotiation process between Wanda Commercial Management and investors. However, the preliminary proposal has not been agreed upon by the investors. According to insiders, the current proposal is only in the preliminary stage of discussion and is not the final decision of the investors and Zhuhai Wanda Commercial Management. Therefore, Zhuhai Wanda Commercial Management will provide new proposals to investors. From all perspectives, the current period is a crucial battle for both Zhuhai Wanda Commercial Management and Wang Jianlin.