Wanda Group is the representative of the real estate industry and its Wanda Kids is the leader in the amusement sector. According to a recent report by The Beijing News, Wanda Kids has transferred its full interest in its early education holding company to Bosimeibang (Beijing) Education Consulting Co., Ltd. (Bosimeibang). According to the official website of Wanda Kids, it has three business segments: amusement park, early education and IP, which are Wanda Kids Place, Wanda Kids Early Education, and Wanda Kidsland Co., Ltd. respectively. Among them, as of the end of 2018, there were 251 Wanda Kids Places nationwide, and 100+ Wanda Kids Early Education Centers, all adopting the direct operation model. As for Wanda Kidsland Co., Ltd., it owns some IPs, such as Octonauts, Winx Club, and Peter Rabbit. Affected by the COVID-19 epidemic, Wanda Kids Education Center and Wanda Kids Places have all been closed temporarily in China and have not yet reopened since February this year.

Since the beginning of the year, Wang Jianlin, the head of Wanda Group, has taken frequent action on Wanda Kids. After pledging shares of Wanda Kids and transferring shares in its early education business, what will he do next? What worries people the most is whether he will transfer or sell Wanda Kids or IPs. As a capital chain brand in the industry, Wanda Kids is a leading brand of children’s amusement park in mainland China. Although officials claimed that selling the early education business was to enable the parks and IPs to realize asset-light development, the potential risk of the capital chain of the open joining of Wanda Kids would still make many industry operators, especially their game and amusement equipment suppliers, feel anxious. Because after the emergence of the COVID-19 epidemic, the interest chain of the operators and suppliers has become particularly fragile, and any slightest move is a risk warning.

It has been reported that on July 1, the official WeChat ID of Wanda Group announced that Wanda Kid – a children's park, started franchise operation. In 2020, the business development model of Wanda Kids has changed from self-operation to the combination of self-operation and franchise operation. At the same time, Wanda Kids owns the copyright of Octonauts in the IP sector, which integrates the stories, images and scenes of Octonauts into the park, combining exploration, action, popularization of science and other contents to cultivate children's spirit of teamwork. From a variety of signs, the industry is expecting that Wanda may not sell Wanda Kids, but if it wants further development, franchise operation and asset-light development are the best choice. After removing the heavy assets, Wanda Kids focuses on the direction of IP+ scenario-based theme parks. The upcoming summer vacation will be the best time to test this decision. Let’s wait and see!

※The article is published in the GTI Magazine Issue No. 189 in August 2020