Zhongxin Travel’s daily limit today is expected to lose at least 150 million yuan in the first half of the year


2020-07-03 19:12:31Beijing News reporter: Wang Zhenzhen Editor: Li Zheng
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Zhongxin Travel’s daily limit today is expected to lose at least 150 million yuan in the first half of the year

2020-07-03 19:12:31Beijing News reporter: Wang Zhenzhen

Beijing News (Reporter Wang Zhenzhen) On July 3, Zhongxin Travel Group Co., Ltd. (hereinafter referred to as “Zhongxin Travel”) issued a semi-annual performance forecast for 2020. Zhongxin Travel estimates that the company’s net profit will lose 150 million to 200 million yuan in the first half of this year, compared with 110 million yuan in the same period last year.

Zhongxin Travel pointed out that the decline in performance in the first half of the year was mainly affected by the new coronary pneumonia epidemic. Since January 27th, Zhongxin Travel suspended the operation of team travel and “air ticket + hotel” travel products, resulting in a substantial decline in business income since February. Under the control of the epidemic situation, while Zhongxin Travel issued basic wages for employees, fixed expenses such as rent and loan interest were still incurring, which also caused Zhongxin Travel to produce operating losses from the first quarter to the first half of the year. According to the first quarterly report, Zhongxin Travel’s operating income fell 53.26% year-on-year to 1.142 billion yuan, and its net profit fell 144.8% year-on-year to -29.062 million yuan.

Zhongxin Tourism stated that in view of the fact that the domestic epidemic situation has been basically controlled, the company’s intra-provincial and peripheral tourism business is gradually recovering. However, from the current situation, the recovery time of team travel and “air ticket + hotel” travel products is still uncertain. As of the end of 2019 and the end of the first quarter of 2020, the balance of Zhongxin Travel’s prepayments was 1.003 billion yuan and 823 million yuan, mainly for the purchase of prepaid air tickets, ground pick-ups, visas, cruises and other upstream resources; the balance of advance receipts was 537 million yuan and 455 million yuan, mainly in advance to receive customer group payments.

Based on this, in the inquiry letter of the 2019 annual report issued to Zhongxin Tourism on July 2 by the management department of Shenzhen Stock Exchange, Zhongxin Tourism requested Zhongxin Tourism to combine the upstream suppliers’ operating conditions and the impact of the epidemic on the company’s main business. Indicate whether the relevant prepayments carry-over cost or recovery, the relevant advance receipts will be converted into income or refunds after the period, whether there is a greater risk of bad debt losses, whether there is a greater concentration of refund fees, and whether it will affect the company’s operating performance and funds The situation has a significant adverse effect.

It is worth noting that the share price of Zhongxin Travel, which has signed a strategic cooperation framework agreement with China Free Group, has continued to rise recently due to the implementation of the new tax-free shopping policy for Hainan outlying tourists. As of the close on July 3, Zhongxin Travel reported 8.44 yuan/share, an increase of 10.04%.

Beijing News reporter Wang Zhenzhen

Editor Li Zheng proofreading Li Shihui

Picture of Zhongxin Travel WeChat public account screenshot

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