(Yicai Global) Sept. 8 -- Wanda Network Technology Group, the web-focused subsidiary of major Chinese real estate developer Dalian Wanda Group, has postponed plans to obtain USD1.5 billion (CNY9.75 billion) in financing due to bank concerns that its business is not sufficiently distinct, online news outlet The Paper reported.
The funding plan was originally to take place this year but may now be postponed until early 2018.
"International investing banks took the lead to carry out due diligence on Wanda Network Technology Group, but were not satisfied because its business ideas are not clear," said a source close to the firm.
"Apart from financial technology, other business fields are unclear. The company derives no profit from digital commerce and or its smart lifestyle app, Feefun, which is still under review," the insider said. "Its public cloud service was developed together with IBM Corp. [NYSE:IBM] and still needs some time to settle. Wanda is attempting to transform its digital commerce business into a platform, with investment still continuing as part of an expansion phase."
The Wanda subsidiary currently engages in digital commerce, smart lifestyles, financial technology and public cloud service.
In October 2016, Wanda Finance Group split, with Wanda Finance Group keeping the business insurance and investment businesses. However, the firm's Feifan Information Technology Co., Kuaiqian Payment and Settlement Service Co., credit consulting company, network data center and network credit segments were transferred to the newly founded Wanda Network Technology Group.
The group aims to form a large-scale open platform combining industry and internet, and realize digital upgrades for physical industry, its website states. The firm will also provide consumer services through Big Data, cloud computing, artificial intelligence and scenario applications.