Two shareholders of Beijing-based travel agency Caissa Tourism have collectively transferred 13.3 million shares of Caissa for RMB 6.92 per share to Jiantou Huawen, a subsidiary of China Jianyin Investment, on February 17. The transaction represented 1.66% of the group’s total shares.
Shijia Hongqi had sold its full stake of 8 million shares in Caissa Tourism, and Shiia Yuanguan sold the 5.3 million shares it held, to realise RMB 55.36 million and 36.67 million separately in the transaction. After the share transfer, Jiantou Huawen will hold a total of 13.3 million shares of Caissa Tourism.
According to the announcement, Caissa Shijia, the controlling shareholder, and Jiantou Huawen will hold 233 million shares collectively, equivalent to 28.98% of the agency's total shares, and they have agreed to act in concert.
The listed unit of Chinese conglomerate HNA Group has reported declining growth in recent years. The company reported full-year revenue of RMB6,636 million in 2016, RMB8,045 million in 2017 and RMB8.18 billion in 2018. Net income attributable to shareholders was RMB213 million, RMB221 million and RMB194 million, respectively.
Caissa Tourism’s revenue for the first three quarters of 2019 declined 14.2% year on year to RMB5.95 billion, while net profit attributable to shareholders was RMB220 million, down 30.65% YoY. Net cash flow from its operation registered a deficit of $949 million, compared to positive cash flow of $226 million in the same period in 2018.
The company warned on February 6 that group performance in the first quarter of 2020 would inevitably be affected by the outbreak of COVID-19. Caissa Tourism has suspended all group tour offerings and flight plus hotel packages since January 24, per request by Ministry of Culture and Tourism, and canceled all group tours three days later. (Translated by Elena)