(Yicai) Nov. 28 -- Zhuhai Wanda Commercial Management Group, the commercial property management unit of Chinese real estate giant Dalian Wanda Group, is reportedly trying to delay its initial public offering in Hong Kong.

Zhuhai Wanda Commercial is negotiating with its 22 pre-IPO investors to postpone the listing to as late as 2026, The Paper reported yesterday, citing a source. The proposal has not been well accepted because of the long delay and concerns about future uncertainties, it added.

An investor in the Zhuhai-based firm confirmed to Yicai yesterday that negotiations are still ongoing.

Zhuhai Wanda Commercial filed for four IPOs with the Hong Kong Stock Exchange between October 2021 and June this year. The latest one will expire next month.

In July 2021, Zhuhai Wanda Commercial signed a bet-on agreement with 22 investors, including Country Garden Holdings, Citic Capital, Ant Group, and Tencent Holdings. They injected CNY38 billion (USD5.4 billion) for about 21 percent of the firm's equity.

In return, Zhuhai Wanda Commercial promised a cumulative net profit of at least CNY22 billion in the three years from 2021 to 2023, and should the company be unable to complete its IPO this year, it would repurchase shares worth CNY30 billion from the 22 investors.

Zhuhai Wanda Commercial proposed making late payments for the share repurchase in case it cannot finish the IPO on time, The Paper said in a report earlier this month, noting that related negotiations are not smooth.

Zhuhai Wanda Commercial’s parent company Dalian Wanda Commercial Management Group, another unit of Dalian Wanda Group, is also facing liquidity pressures amid the sluggish domestic property industry.

Dalian Wanda Commercial announced on Nov. 21 that it would adjust the repayment schedule of a USD600 million debt due in January. On Nov. 24, international rating giant Moody downgraded Dalian Wanda Commercial to Caa2 from Caa1.

Editors: Dou Shicong, Futura Costaglione