The news about Wang Jianlin, the former richest man in China and chairman of Wanda Group, being subject to high consumption restriction (“restriction order”) has captured the attention of the whole internet. The latest update reveals that Wang Jianlin’s “restriction order” has been lifted, while a company chaired by Wang Jianlin’s son, Wang Sicong, has been subjected to an execution of 12.1 million yuan.
According to Tianyancha data, on September 26th, Dalian Wanda Group Co., Ltd. and its legal representative Wang Jianlin were placed under high consumption restrictions.
The case process indicates that previously, Dalian Wanda Group Co., Ltd., Wanda Real Estate Group Co., Ltd., and others were forced to execute 186 million yuan in connection with this case. The executing court was the Lanzhou Intermediate People’s Court in Gansu Province.
On September 29th, Jiemian News reported that according to Tianyancha data, the high consumption restriction risk on Wang Jianlin issued on September 26th has been lifted, turning into a historical consumption restriction order. The Chinese Enforcement Information Open Website no longer displays the high consumption restriction information on Wang Jianlin, chairman of Dalian Wanda Group.
As reported by Caixin, insider sources from Wanda revealed that this incident stemmed from economic disputes within Wanda’s subsidiary project companies, possibly due to information asymmetry at the execution level.
Currently, there are 10 individuals under execution within Wanda Group, with a total execution amount of approximately 5.263 billion yuan. Additionally, there are 47 pieces of equity freeze information involving a total freeze amount of up to 41.5 billion yuan, some with expiration dates extending to the second half of 2027, and others until August 2028.
As of now, out of 42 companies under Wang Jianlin’s name, only 10 are operational or have been relocated, while the remaining are either suspended or deregistered.
Meanwhile, Shanghai Xiongmao Huyu Culture Co., Ltd., where Wang Sicong serves as chairman, has been subjected to an execution of 12.1 million due to a contract dispute, handled by the Shanghai Railway Transportation Court. Tianyancha shows that Xiongmao Huyu has a registered capital of about 155 million yuan, established in 2015, with Long Fei as the legal representative and Wang Sicong as the actual beneficiary.
Six years ago, Wang Sicong faced a series of high consumption restrictions from several courts due to debt issues related to Xiongmao Huyu.
Within one day on November 21, 2019, the Shanghai Jing’an Court imposed three high consumption restrictions. Wang Sicong was required not to engage in high consumption or non-essential expenditures, including air travel, high-speed rail, cruise ships of second class or higher, star-rated hotels, nightclubs, golf courses, first-class seats on G-series trains, premium real estate purchases, leasing high-end offices, hotels, apartments, non-operational vehicles, travel, and vacations, among others.
In 2013, 2015, 2016, and 2017, Wang Jianlin was repeatedly listed as the richest man in China on Forbes’ or the Hurun Rich List.
Wang Jianlin’s wealth mainly stems from Wanda Group, which he founded and led, especially in the vast commercial real estate (Wanda Plazas), hotels, cultural tourism, and film and television industries (Wanda Films, AMC Theaters).
However, in recent years, Wanda Group and its subsidiaries have faced significant debt pressures and large-scale asset sales, leading to a decline in Wang Jianlin’s ranking on wealth lists.
According to Dalian Wanda Mall Management’s financial data for Q3 of 2024, as of the end of September 2024, the company had approximately 40.084 billion yuan of non-current liabilities due within a year, short-term borrowings of about 38.89 billion yuan, long-term borrowings of around 106.46 billion yuan, bond payables of approximately 6.191 billion yuan, and total current liabilities of about 91.42 billion yuan.
Based on incomplete statistics, starting from the sale of Shanghai Songjiang Wanda Plaza in 2023, Wanda had sold over 30 projects by 2024. In the beginning of this year, another seven were sold, and combined with the sale of 48 in May, at least 85 Wanda Plaza properties nationwide have changed ownership.