Wang Jianlin, Asia's Richest Man, Was Determined To Turn.

In the two weeks before the Spring Festival, the Wanda Group held its 2015 annual meeting in warm Xishuangbanna.

At the meeting, Wang Jianlin made a bold decision. In 2016, Wanda will take the initiative to reduce the sales income of real estate by 64 billion yuan, which will affect Wanda Group's total revenue target this year by 12%.

For Wanda, which has been maintaining high growth for ten years, this decision is shocking.

This means Wanda will substantially reduce its investment in real estate sales, and this reform will bear the brunt of the fact that 130 thousand of the staff in Wanda will be faced with the abolition of such business related personnel.

Wanda lowered the real estate revenue target, which means the real estate sales personnel need.

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"There are many executives in Wanda, some of whom have been employed in up to six or seven different business groups. Of course, if your ideas do not keep pace with the chairman, you will not be able to keep up with the group's overall pace," he said.

A Wanda Group insiders said.

Under the background of China's overall economic pformation and upgrading of consumption, the past real estate development mode has obviously failed to bear the high growth target of Wanda.

The richest people in Asia have long realized that it is difficult to maintain the high growth of Wanda by relying on the past "duplication" mode. He needs to prepare for this aircraft carrier in ten or twenty years.

"The chairman has been thinking about the pformation of Wanda for two or three years, and the direction and train of thought of several pformation such as finance, sports, theme parks and so on are all studied and designed by himself, and he is told directly to the following people.

The way he does things is always like this, and if he goes out, he will hit the blow.

The above said.

In fact, the commercial aircraft carrier with a total capital of 634 billion yuan has already started.

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When Wang Jianlin announced the reform and pformation, large scale forces had already begun to charge, and 2016 will be a year of achievement for the "pioneer troops".

Whether or not we can turn around safely and find the future course is a success or failure.

According to Wanda Group's work report, total revenue in 2015 was 290 billion 160 million yuan, an increase of 19.1% over the same period.

Almost all the blocks of the group have fulfilled their performance targets, with cultural, theatrical and travel industries increasing by more than 40%.

Wanda business, which is mainly heavy assets, has only completed 4.4% of its revenue in the past year.

This is precisely what Wanda used to rely on, and the problem is obvious.

Wanda's revenue from the real estate business contract is 164 billion 80 million yuan, accounting for more than half of the group's total revenue.

While other income, such as rent and hotel, is growing rapidly, the amount is not outstanding.

Up to now, there are 142 cities in China with a population of more than 1 million.

According to Wanda Plaza site selection criteria: the construction area is no less than 80 thousand square meters, and the radiation population is not less than 400 thousand people.

This means that Wanda needs to sink to more remote areas in order to achieve its goals.

However, the biggest problem in China's real estate market is the oversupply of cities under the second tier cities.

The speed of sales directly determines the turnover of capital, and Wanda will have difficulty replicating the development mode of low price and rapid development.

In the silver age of the property market, real estate has been unable to assume the growth engine of Wanda's carrier.

Wang Jianlin gave two prescriptions, Wanda Plaza, but I will not build money, and the real estate income in the future will continue to shrink to 1/3 of the total income of the group. The so-called light assets will be pferred to the new service industry, including finance, sports, culture, tourism, cinema and so on.

Over the years, the mode of commercially supporting housing and shops selling back to commercial operations has expanded rapidly, and the red flag has been pformed into China.

It can be said that this model has achieved the scale of Wanda today, but in the face of the cyclical industry of real estate, it is impossible to maintain rapid growth by duplication.

A Wanda cornerstone investor told reporters earlier a year ago that the biggest worry for Wanda is its sustainable growth, "copying constantly, and finally copying it to the sky". This view represents a group of investors' views on Wanda.

Even more serious is that the past model is not only difficult to maintain high growth, but may even bring greater risks.

Wanda plans to open 55 Wanda Plaza in 2016, which is more than doubled in 2015. By the end of this year, the number of Wanda Plaza will exceed 180.