Stock Code: Utour Group Co.Ltd(002707) stock abbreviation: Utour Group Co.Ltd(002707) Announcement No.: 2022048
Bond Code: 128022 bond abbreviation: Zhongxin convertible bond
With regard to the announcement that the outstanding losses reach one-third of the total paid in share capital, the company and all members of the board of directors guarantee that the contents of this announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.
Utour Group Co.Ltd(002707) (hereinafter referred to as “the company”) held the third meeting of the Fifth Board of directors and the third meeting of the Fifth Board of supervisors on April 15, 2022, and deliberated and adopted the proposal on the outstanding loss reaching one third of the total paid in share capital, which needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation. The details are hereby announced as follows:
1、 Overview of the situation
According to the audit report of Utour Group Co.Ltd(002707) 2021 annual financial statements (ZTT [2022] zsz No. 0400009) issued by Zhongzheng Tiantong Certified Public Accountants (special general partnership), as of December 31, 2021, the undistributed profit in the company’s consolidated balance sheet was -106273362362 yuan, the company’s outstanding loss was 117886178387 yuan, and the paid in share capital was 90634528200 yuan, The amount of the company’s outstanding losses reaches one third of the total paid in share capital. According to the relevant provisions of the company law and the articles of association, this matter needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
2、 Reasons for loss
Since the outbreak of covid-19 pneumonia in January 2020, the tourism industry has been hovering between business suspension and intermittent recovery. As of the audit date, China’s tourism market has recovered in an orderly manner, the “circuit breaker” mechanism for the management of inter provincial tourism business activities has been implemented, and the tourism business of outbound tourism teams has not been resumed. Affected by covid-19 pneumonia, the net profit of the company after deducting non recurring profits and losses in 2020 and 2021 was -1.488 billion yuan and -458 million yuan respectively.
3、 Measures to be taken by the company to make up for losses
Up to now, although the outbound tourism business is difficult to carry out, various self rescue measures actively taken by the company in 2021 have achieved initial results, making the loss range in 2021 narrower than that in 2020. The company plans to take the following measures:
Stock Code: Utour Group Co.Ltd(002707) stock abbreviation: Utour Group Co.Ltd(002707) announcement No.: 2022048
Bond Code: 128022 bond abbreviation: Zhongxin convertible bond
To improve the company’s future sustainable operation ability:
(1) Actively adjust the business direction.
Under the premise of good control of the epidemic situation, carrying out China tourism business, although the income scale is relatively small compared with the volume of outbound tourism, it can still ensure that the company can maintain a certain amount of business income related to its main business and avoid touching the red line standard of delisting.
(2) Adjust personnel structure and reduce costs.
In the case of rapid business contraction, the business sales personnel were reduced on the basis of retaining the business backbone, the salary of back office personnel was reduced on the basis of mutual understanding and support, and the fixed cost was greatly reduced. (3) Coordinate the relationship between debtors and investors to ensure normal cash flow.
At the level of shareholders of listed companies, the company coordinates investors from all parties, continuously introduces strategic shareholders such as Ali, and improves the company’s financing environment and liquidity; Further expand financing channels, and plan to refinance through non-public issuance of new shares to ensure the healthy and stable development of the company’s business; At the company level, it actively seeks the support of the municipal government. In the future, it is expected to optimize the debt structure through relevant measures, reduce short-term liabilities, increase long-term liabilities and reduce the pressure of short-term debt repayment.
In February 2022, 14 departments including the national development and Reform Commission issued the notice on several policies on promoting the recovery and development of difficult industries in the service industry, which defined the relief and support measures for the tourism industry, required travel agencies to temporarily withdraw the support policy for the deposit of tourism service quality, and strengthened bank enterprise cooperation. At the company level, by applying to the municipal government for support, strive to renew the loan contract with the bank, further improve the financial risk response ability, optimize the debt structure, reduce short-term liabilities, increase long-term liabilities and reduce the pressure of short-term debt repayment.
4、 Documents for future reference
1. Utour Group Co.Ltd(002707) the resolution of the third meeting of the Fifth Board of directors;
2. Utour Group Co.Ltd(002707) the resolution of the third meeting of the Fifth Board of supervisors.
It is hereby announced.
Utour Group Co.Ltd(002707) board of directors April 16, 2022
