The debtor lacks funds to repay, and the creditor is also short on cash.
"Twenty days have passed since the payment deadline, but the funds have not been received."
Wang Jianlin, once a dominant figure in the capital markets thanks to the Wanda Group, is now being pursued for debt by Yonghui Superstores Co.,Ltd. (601933.SH).
On May 7, Yonghui Superstores issued an arbitration progress announcement stating that regarding the arbitration case arising from the sale of equity in Wanda Commercial Management, the Shanghai International Arbitration Center had issued a final ruling. The ruling orders Dalian Yujin Trading Co., Ltd. to pay the company the remaining share transfer payment of approximately 3.639 billion yuan, along with default penalties, legal fees, and arbitration costs, totaling around 3.88 billion yuan. Furthermore, Wang Jianlin, Sun Xishuang, and Dalian Yifang Group are required to bear joint guarantee liability.
However, as of the announcement date, the 20-day performance period stipulated in the ruling had expired, and the relevant payments had still not been made.
Yonghui Superstores stated in the announcement, "In light of this, the company will apply for compulsory enforcement through legal channels and dispose of the preserved assets of the respondents in accordance with the law."
It is noteworthy that Wang Jianlin is named as the second respondent, following Dalian Yujin.
Yonghui Superstores also indicated in the announcement that the subsequent application for enforcement and the disposal of assets remain uncertain, making it impossible to determine the impact of this arbitration matter on the company's current or future profits at this time. The company will conduct corresponding accounting treatments based on the subsequent progress and outcome of the case, in accordance with relevant accounting standards and the actual situation. The impact on the company's profit or loss will be subject to the results confirmed by the annual audit of the accountants.
As of May 7, Yonghui Superstores' stock price closed at 3.76 yuan per share, down 1.05%, with a total market capitalization of 34.1 billion yuan.
From "White Knight" to "Enforcement Risk Party"
The core of this arbitration case is a long-standing dispute over a share transaction.
In December 2023, Yonghui Superstores transferred its approximately 1.43% stake in Dalian Wanda Commercial Management to Dalian Yujin for 4.53 billion yuan. The latter agreed to make payments in eight installments, roughly every three months, with full payment to be completed by September 30, 2025.
Yonghui Superstores had originally acquired this stake in Dalian Wanda Commercial Management from Dalian Yifang Group and Sun Xishuang for 3.53 billion yuan in 2018. This means that in this "return to original owner" transaction, Yonghui Superstores stood to make a profit of 1 billion yuan.
Regarding the financial statements, if the first phase of the equity transaction was completed within 2024, Yonghui Superstores would increase its pre-tax profit by 28.5958 million yuan and its cash flow by 300 million yuan.
Unexpectedly, the recovery of the transfer payments did not proceed smoothly. The second installment of 391 million yuan was due on March 31, 2024, but Dalian Yujin delayed full payment until April 19, 2024.
The third installment payment was also delayed. On July 1, 2024, Yonghui Superstores announced that Dalian Yujin had only paid 200 million yuan of the 792 million yuan third installment due, leaving 592 million yuan unpaid. In total, approximately 3.639 billion yuan remained outstanding at that time. The payment of the share transfer consideration was still ongoing.
However, Sun Xishuang's delay might not have been intentional, as his Yifang Group was also facing significant difficulties at the time.
Yifang Group's business scope includes project investment, property leasing, property management, hotel management, and business management consulting services. Qichacha data showed that in the first half of 2024, Yifang Group had multiple new equity pledge registrations, involving over 465 million shares. At that time, the total amount under enforcement against Yifang Group was 463 million yuan.
Given the short-term liquidity difficulties faced by Sun Xishuang's side, Yonghui Superstores granted an extension. On the evening of July 26, 2024, Yonghui Superstores issued an "Announcement on Adjusting the Asset Sale Plan," modifying the payment schedule for the remaining share transfer consideration. The remaining 3.839 billion yuan payment was restructured from eight installments to ten installments. The third installment was reduced from 792 million yuan to 200 million yuan, and the final payment deadline for the full amount was extended to March 31, 2026.
However, Yonghui Superstores attached a condition to this extension: signing a supplementary agreement with Dalian Yujin, Wang Jianlin, Sun Xishuang, and Yifang Group, adding Wang Jianlin, Sun Xishuang, and Yifang Group as transaction guarantors. Consequently, Wang Jianlin became the guarantor for his business associate.
According to the supplementary agreement, the non-breaching party has the right to pursue the breaching party's liabilities, including payment of the consideration, assumption of guarantee responsibilities, default penalties, and compensation. If the buyer fails to pay the transfer payment in full on time, Yonghui Superstores has the right to declare the entire amount immediately due and demand payment of a 6% acceleration penalty.
However, in October 2024, as Sun Xishuang's side again failed to pay the transfer payment on time, Yonghui Superstores initiated arbitration against Dalian Yujin and guarantor Wang Jianlin.
According to the announcement, Dalian Yujin still owed approximately 3.639 billion yuan in remaining share transfer payments, plus an acceleration penalty of approximately 218 million yuan. Additionally, Yonghui Superstores requested that Dalian Yujin be ordered to immediately pay legal fees of about 2 million yuan incurred in this case, property preservation fees of 45,000 yuan, property preservation insurance fees of 1.7833 million yuan, and arbitration fees of 18.2516 million yuan. The total amount claimed was 3.888 billion yuan.
After over a year of legal proceedings, the arbitration tribunal ultimately fully supported all of Yonghui Superstores' claims. The respondents were required to fulfill their payment obligations within 20 days of the ruling taking effect.
Now, the 20-day performance period has passed, and Dalian Yujin has still not made the payment. Yonghui Superstores is no longer waiting and has clearly stated it will apply for compulsory enforcement and dispose of the previously preserved assets according to law.
Wang Jianlin Faces Another "Debt Collection" Moment
Xia Hailong, a lawyer at Shanghai Shenlun Law Firm, pointed out that when a guarantor bears joint guarantee liability, if the debtor cannot perform the obligation, the creditor has the right to choose. They can claim repayment from both the guarantor and the debtor simultaneously or from either party through litigation or arbitration. After the guarantor performs, they can seek recourse from the debtor.
Yang Zhaoquan, a partner at Weinuo Law Firm, stated that after Yonghui's arbitration victory, the core enforcement path is clear: Wang Jianlin's joint guarantee liability means Yonghui can directly apply to the court for enforcement against any debtor or guarantor, seizing assets such as domestic real estate, equity, and deposits. There is no need to first exhaust the assets of the primary debtor or Yifang Group; in principle, full repayment of the 3.88 billion yuan principal and interest is required. After Wang Jianlin fulfills the obligation, he can seek recourse from Dalian Yujin.
What is Yonghui Superstores' most effective next enforcement strategy? Lawyer Yang Zhaoquan indicated that generally, a parallel domestic and international approach would be taken: immediately initiate preservation and compulsory enforcement proceedings domestically against Wang Jianlin, Sun Xishuang, and Yifang Group, piercing through shell entities while simultaneously imposing credit sanctions. Concurrently, relying on the New York Convention, after notarizing and authenticating the award, apply to courts in countries where assets are located for recognition and enforcement, aiming to seize and execute against overseas assets like luxury homes and yachts.
However, Lawyer Xia Hailong from Shanghai Shenlun Law Firm noted that enforcement issues involving the execution of effective Chinese judgments and rulings overseas are complex. Legally, parties can apply for enforcement in foreign courts with jurisdiction based on international treaties, judicial cooperation agreements, or the principle of reciprocity, but in practice, significant difficulties may arise.
Shen Meng, Director of Chanson & Co., stated that only assets held in the respondent's name can be subject to enforcement. For example, assets like some family trusts not held in the respondent's name, even if they are the beneficiary of the relevant property, cannot be enforced against.
Yan Yuejin, Vice President of the Shanghai E-House Real Estate Research Institute, said that the practical implementation phase will inevitably encounter many difficulties. Currently, Wanda's overall situation is relatively passive and under significant pressure. Procedurally, relevant materials and matters must be submitted according to regulations, but the actual priority of debt repayment is no longer confined to the dispute with Yonghui Superstores. Other creditors also hold legitimate claims against Wanda. The previous freezing of some of Wanda's financial investment equity shares stemmed from a core logic essentially similar to the current debt issues.
"Wang Jianlin is not only a core party in this incident but also, as a representative figure in the leading real estate industry, possesses extremely high public recognition and personal IP attributes. In the public perception, Wanda and Wang Jianlin are deeply intertwined, their images highly overlapping. Therefore, once deeply embroiled in debt-related controversies, it will cause significant negative impacts on both his personal reputation and Wanda's overall brand image," Yan Yuejin believes.
How to Solve Wanda's 600 Billion Yuan Debt?
The 3.88 billion yuan favorable arbitration award for Yonghui Superstores is just the tip of the iceberg of Wang Jianlin's current debt troubles. In recent years, the chain reaction triggered by the failed listing of Wanda Commercial Management continues to unfold.
Looking back to 2018, Wanda Commercial Management, then listed in Hong Kong, sought to privatize and list on the A-share market. It introduced strategic investors including Tencent, Suning, Sunac, and JD.com, raising a total of 34 billion yuan and signing a valuation adjustment mechanism agreement—committing to complete the listing by October 31, 2023, at the latest, otherwise requiring a share buyback. As the listing was repeatedly delayed, the VAG terms were triggered.
To date, two companies have initiated arbitration. Specifically, in October 2024, Suning.com applied for arbitration, requesting Wanda pay 5.04 billion yuan in share repurchase payments. However, in July 2025, the China International Economic and Trade Arbitration Commission issued a ruling that did not support Suning.com's claim. Sunac China also initiated arbitration in December 2024, demanding payment of 9.5 billion yuan in share repurchase payments; that case is still under review.
It is noteworthy that Yonghui Superstores' successful claim targets Wang Jianlin personally, whereas Suning.com and Sunac China's claims are against Wanda. Even more daunting is the overall debt scale of the Wanda Group.
According to reports from Manager Magazine and other media, as of the end of 2025, Wanda Commercial Management's total liabilities were approximately 299-320 billion yuan, and the Wanda Group's total liabilities were around 600 billion yuan. The short-term debt repayment gap was estimated between 28.4 and 52.9 billion yuan, while the cash on hand was only 13.3 to 15.1 billion yuan. Judging by the match between cash on hand and short-term debt, Wanda is facing a severe liquidity pressure.
Judicial pressure is also substantial. Tianyancha data shows that, to date, Wanda Group is the defendant in 168 judicial cases, accounting for 89.84% of its total cases, with the amount in dispute reaching 14.92 billion yuan.
To survive, over the past three years, Wanda has been selling assets to alleviate funding pressure. It has sold over 80 Wanda Plazas cumulatively. In May 2025, it sold a package of 48 Wanda Plazas in core cities in one go, with the asset package valued at approximately 50 billion yuan. Its hotel management business was sold to Tongcheng Travel for about 2.5 billion yuan, and its equity in Kuaiqian Finance was transferred to China Ruyi for 240 million yuan. In February 2026, Shanghai Zhuangqiao Wanda Plaza was sold for 2.048 billion yuan. This "sell-off" has reduced the total debt, but the Wanda Group's debt pressure remains severe.
Yan Yuejin also pointed out that while the aforementioned transactions alleviated the liquidity crisis in the short term, they also led to the continuous loss of core high-quality assets.
Wanda's financing costs are also rising. In February 2026, Wanda Commercial Management issued a 360 million US dollar senior secured bond with a coupon rate as high as 12.75%, with a subscription multiple of 1.8 times. This financing cost is significantly higher than the industry average, reflecting both the market's high pricing of its credit risk and the continued limitations on Wanda's financing channels.
At this juncture, Wang Jianlin faces an additional personal debt of over 3.8 billion yuan. Scrutinized against his overall debt, this amount constitutes less than 0.7% of the Wanda Group's 600 billion yuan total liabilities, seemingly insignificant. However, the outbreak of a debt crisis is often triggered not by the total scale, but by a liquidity gap.
Yan Yuejin believes this debt could very well be "the straw that breaks the camel's back." From Wang Jianlin's personal perspective, the debt pressure is immense. Furthermore, the pressure to resolve the debt will make subsequent asset transfers more difficult, and potential acquirers may depress prices during asset sales, leading to greater asset losses.
However, Shen Meng believes that while Wang Jianlin might have to fulfill more obligations due to the enforcement of joint liability, if asset isolation was previously implemented, it might not necessarily lead to wealth loss. "When you have many lice, you don't feel the bites; when you have many debts, you stop worrying."
"When a wealthy individual bears huge joint liabilities and faces compulsory seizure of assets, their financing ability plummets. It's like drawing a basin of blood from an anemic person; it might not be fatal, but it will undoubtedly severely weaken them, potentially triggering underlying old ailments. This tests not only their financial resources but also their ability to maneuver assets and negotiate with various parties under extreme pressure," said Bai Wenxi, Deputy Chairman of the China Enterprise Capital Union.
Yonghui Also Needs Cash
This arbitration is not just a stress test for Wanda. For Yonghui Superstores, this money is equally crucial.
In recent years, Yonghui itself has faced significant operational pressure. The traditional supermarket format has been continuously impacted, leading to substantial fluctuations in performance.
Financial report data shows that Yonghui Superstores' overall operating performance was under considerable pressure last year. In 2025, Yonghui Superstores reported operating revenue of 53.508 billion yuan, a year-on-year decrease of 20.82%. It recorded a net loss attributable to shareholders of 2.552 billion yuan, marking the fifth consecutive year of losses, with the loss exceeding the previous year's by over 1 billion yuan.
According to a 21st Century Business Herald report, Yonghui Superstores has become one of the companies with the most severe losses in the A-share supermarket sector.
To address operational pressures, Yonghui closed 381 underperforming stores in 2025 and concurrently conducted deep renovations on over 300 stores. The resulting one-time expenses for lease contract terminations, asset write-offs, and employee settlements exceeded 1.2 billion yuan, directly eroding current profits. Specifically, one-time costs from store renovations reached 840 million yuan, and losses from store closures amounted to 333 million yuan before tax; the combined impact on pre-tax profit was nearly 1.174 billion yuan.
Even more severe is the continued deterioration of the asset-liability structure. By the end of the third quarter of 2025, Yonghui's asset-liability ratio had climbed to 88.96%, with total liabilities approaching 28.13 billion yuan. High debt levels combined with losses from core operations have continuously narrowed the company's debt repayment pressure and refinancing space, significantly weakening its cash flow and risk resistance capabilities.
Therefore, the sale of the Wanda Commercial Management equity stake was originally one of its key actions for capital recovery. The delayed recovery of over 3.6 billion yuan in remaining payments will undoubtedly affect the company's cash flow arrangements.
Consequently, Yonghui adopted an unusually firm tone in its announcement: "will apply for compulsory enforcement through legal channels and dispose of the preserved assets in accordance with the law." The shift from "friendly negotiations" to "applying for enforcement" signifies that the relationship between the parties has entered a genuine judicial debt recovery stage. This time, the man on the list being pursued is the one who once said, "First, set a small target."
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