Canxing Network Discards Shares and Exits from Tourism

New crona virus( covid19) impacts the tourism industry and another travel agency   can’t sustain it. Cankun Group, a subsidiary of Cankun Group, released a major message yesterday (27), announcing that it will dispose of 53.175% of its shares in Canstar International Travel Agency. Canstar Travel also announced that The public purchaser signs a share purchase agreement.

According to Canxing.com’s announcement, the overall operating performance of its subsidiary Canxingxing was not as expected, and continued to make losses, coupled with changes in the external operating environment, so it decided to sell its shares.

According to reports, Canxing has repeatedly heard rumors of exiting the tourism market since last year. Industry insiders pointed out that Canstar has always planned to dispose of the shares of Canstar Travel. The reason why it has not been sold is because it wants to wait for the stock price to be higher before processing “I never imagined that the new crown pneumonia epidemic would hit the tourism industry, so the company’s top management had to let go.

Canxing.com stated that the company will participate in the public acquisition of 53.175% (9,716,199 shares) of Canxing Travel shares held by Yingshang at a price of 5.10 yuan per share. If the purchaser purchases it in full, the total transaction value will be nearly 50 million yuan.

According to the information from the Public Information Observatory, Canstar Travel has been losing money for five consecutive years. From 2015 to 2017, the losses per share were 0.42 yuan, 1.78 yuan, and 3.31 yuan. The losses have expanded in the past two years, and they have exceeded half of the capital. Among them, Loss per share was 5.85 yuan in 2018; last year also lost 5.72 yuan per share. In terms of this year’s performance, February revenue was only 40.26 million yuan, a 76.94% decrease compared to 174 million yuan last year, and the operating situation was very difficult.

Established in 2003, Can Star Travel is regarded as the first wave of online travel agencies in Taiwan. Its main focus is on cross-strait, Japan, South Korea routes and ticketing. In recent years, it has also launched the booking platform KAis to start travel, trying to attack the young travel market. Business, freedom of travel and other shocks, coupled with several products in mainland China, Japan, and South Korea were the hardest hit households affected by the epidemic, the operation situation has plummeted.