“Chinese consumption, particularly high-end consumption is booming,” Wang told reporters in Beijing in June. He plans to have 110 plazas by 2014.
The Bloomberg Billionaires Index values closely held companies by comparing some multiples, such as the enterprise value-to-Ebitda or price-to-earnings multiples of similar public companies. When ownership of closely held assets cannot be verified, they aren’t included in the calculations.
In Wang’s prior net worth calculation, the Bloomberg ranking valued Dalian Wanda as one company, using multiples of four publicly traded Chinese developers. An analysis of regulatory filings and financial results for the year ended June 30 provided metrics to value the retail and entertainment subsidiaries of Dalian Wanda.
Ownership Stakes
Wang’s family owns 100 percent of Dalian Wanda directly and through holding company Dalian Hexing Investment Co., the documents show. He owns 98 percent of Dalian Hexing and his son, Wang Sicong, owns 2 percent. The billionaire owns 61.6 percent in his flagship, Dalian Wanda Commercial Property Co. directly and through Dalian Wanda Group, according to the filings.
Dalian Wanda had revenue of $26 billion in the 12 months ending June 30. Commercial property contributed 76 percent of Wanda’s revenue in the first half of 2013, compared with 88 percent a year earlier and 91 percent in 2011, according to figures on the company’s website.
Wang’s stake in Dalian Wanda Commercial Properties Co. is valued at $7.4 billion, according to data compiled by Bloomberg based on the average price-to-earnings multiple of four peers: China Vanke Co., China Overseas Land & Investment Ltd., Longfor Properties and Evergrande Real Estate Group Ltd.
Higher Valuation
The asset could be valued even higher. Pacific Alliance China Land Ltd., a London-based closed-end fund, assigned a value to its 0.5 percent stake in Wanda Commercial at $71.8 million at the end of 2012, according to its annual report. That would value the entire company at $14.4 billion and Wang’s stake at $8.6 billion. Pacific Alliance, through an outside spokesman, said it didn’t comment on its investments.
Wang’s second-largest asset is his 100 percent stake in the Wanda Department Store Co. chain. The company is valued at $5.6 billion, according to the Bloomberg ranking, based on the average enterprise value-to-sales and enterprise value-to-Ebitda multiples of Intime Retail Group Co. Ltd., Golden Eagle Retail Group Ltd. and Parkson Retail Group Ltd. The company said it plans to have 120 stores by 2015 from 62 now.