Dalian Wanda chairman Wang Jianlin speaks to the press in Beijing. (Photo/Xinhua)
Chinese tycoon Wang Jianlin, the chairman of property developer Dalian Wanda, has grown his property empire in just 24 years, largely by maintaining close relations with the Chinese government.
In an interview with Guangzhou-based newspaper Southern Weekend, Wang boasted of the company's efficiency in being able to set up a Wanda Plaza in just 18 months. This was a difficult achievement, he said, given local governments that undergoes a power shift every five years. The 57-year-old property tycoon, who served in the army for 18 years and was a public servant for two, said Wanda only deals with officials seeking advancement in their political careers, not associating with idle local officials.
Forbes currently ranks Wang the 11th-richest person in China, with net worth of US$4 billion.
Since Wang moved Wanda's headquarters from Dalian, a major port city in northeast China, to Beijing four years ago, local officials visit nearly every day — they are eager to meet Wang and have him help on the completion one or two development projects in their jurisdictions. According to the newspaper, Wang has met with central government officials several times this year.
In 1988, Wang served as general manager of a residential development company in Dalian's Xigang district. The predecessor to Wanda, a state-owned company, was set up in 1987 and earned 12.86 million yuan (2.04 million) in sales in 1989, with net profits of 2.91 million yuan (US$461,000).
According to a Wanda source, Wang has said he would have at best achieved the rank of general if he had continued serving in the army. Yet 18 years of life as a soldier shaped his lifestyle. Wang wakes up early every morning and arrives at his office at about 7am, and he has a reputation for punctuality. His style has impacted Wanda Group as well, where all middle managers are required to wear professional suits.
When Wanda first got its start, property companies were required to obtain planned development targets to apply for land. But at that time, only three state-owned property companies were given these targets. Wanda, which did not receive guidelines, had to buy them from these state-owned companies.
Wang obtained a residential project in Dalian's Nanshan district and completed it successfully. He earned his first 2 million yuan (US$317,000) in profits from the project, and subsequently became the city's largest developer by taking the opportunity to revamp its older districts. Nevertheless, Wang's success over the past 20 years has been the result of his ability to meet local government demands for administrative performance.
Dalian Wanda was set up in 1992 with registered capital of 80 million yuan (US$12.68 million). Forty percent of its shares are held by employees, while another 60% have been raised from three other companies.
Wang caught international attention in the 1990s by forming a soccer club sponsored by Dalian Wanda. He announced resignation from the sport in 2000, when he also decided to shift Wanda's focus from residential units to commercial property. Between 20 and 30 Wanda Plaza projects have been launched each year nationwide since.