The following is the full text:
The first is the consumption of key services. China's economy is undergoing two profound changes. First, domestic demand has become the main energy for economic development. Second, from commodity consumption to service consumption. It is estimated that service consumption will exceed commodity consumption around 10. This change is both an impact and a business opportunity. The characteristic of service consumption is that the experience value is greater than the price, which is a rectification of China's current commodity consumption. At the same time, service consumption is more conducive to brand building and craftsmanship. In the future, Wanda will firmly grasp the service consumption and experience consumption industries and make these industries bigger and stronger.
The second is to focus on advantageous industries. Another key point of Wanda's transformation strategy adjustment is to sort out the existing industries and focus on those industries that we have competitive advantages at home and abroad, or can quickly form competitive advantages. Other industries that have no competitive advantage now and will be difficult to gain competitive advantage in the future should gradually and orderly withdraw. In short, Wanda should slim down, give something and have something. This is the logic that Wanda is still disposing of some assets. This kind of strategic adjustment is definitely uncomfortable, even painful, but Wanda must "insist that Qingshan does not relax and let the east, west, north and south winds".
Third, we should do high-threshold business. In recent years, Wanda has been innovating, being imitated and being poached, which is the case in all industries. What's more, the head of the human resources department of a large enterprise has been talking to our managers all day in the long-term private room of Wenhua Hotel next to Wanda headquarters. This phenomenon reminds us that in order to prevent Wanda from being simply imitated and constantly being poached, it is necessary to increase the difficulty of competition. Entering high-threshold industries such as science and technology, creativity, talents and resources has high requirements, which is the direction of our future industrial development. In recent years, Wanda has entered the children's industry, sports events, international hospitals and other industries, with few imitators.
The fourth is to give priority to light assets. Wanda emphasizes light assets, not giving up heavy assets completely, but making heavy assets with the overall reduction of interest-bearing liabilities. After this year, at least 70% of newly opened hotels in wanda plaza are light assets, and all newly opened hotels are light assets in principle. However, in order to ensure that the business management opens 50 parties every year, the real estate group still strives to open 10- 15 heavy assets projects every year.
The fifth is to continuously reduce corporate liabilities. On the basis of 20 18, strive to reduce the interest-bearing liabilities by 8- 10% in 20 19. By the end of 2020, Wanda Group's interest-bearing liabilities will drop to an absolute safe level. In fact, the debt level of Wanda Group is relatively low among large private enterprises and even large enterprises in China, but since we have determined the development strategy of light assets and low debt, we cannot waver.