STOCK CODE: 871946
NVOCC: MOC-NV06770

Changhang Phoenix's reorganization failed


Oct 31 2016

Guide: Changhang Phoenix announced the 2016 third quarter report, the first three quarters of profits are still in a substantial loss.
Changhang Phoenix released the report for the third quarter of 2016, and the profit in the first three quarters was still in a substantial loss. However, it is worth noting that Changhang Phoenix officially “delisted” in August 2015 due to the previous three-year profit loss. In September this year, the backdoor reorganization case was also announced. Shareholders expressed their hope to start reorganization to restore market value.

According to the performance report, in the third quarter of 2016, Changhang Phoenix's operating income was 178 million yuan, a year-on-year decrease of 7.58%; net profit was 12.624 million, a year-on-year increase of 4964.51%. However, throughout the first three quarters of 2016, Changhang Phoenix's net profit is still at a loss. From the beginning of the year to the end of the reporting period, Changhang Phoenix's operating income was 487 million yuan, a year-on-year decrease of 17.34%; net profit was -3,142,400 yuan, a year-on-year decrease of 102.94%.

It is worth noting that in the past, due to the company's audited net profit for the two fiscal years of 2011 and 2012, the company's audited net profit was continuously negative. On the 25th, a "delisting risk warning" was implemented on the company's stock, and the company's abbreviation was changed from "Changhang Phoenix" to "\ * ST Phoenix". It was not until August 2015 that Changhang Phoenix officially "hat off".

Changhang Phoenix after taking off the hat, has been praised as Nirvana's return with high expectations of "backdoor reorganization". On December 18, 2015, Changhang Phoenix, which had been suspended from trading for nearly two years, announced that the major shareholder Tianjin Shunhang Shipping Co., Ltd. planned to inject its assets into the company, which constituted a major asset reorganization. According to reports, Changhang Phoenix shares rose more than 700% that day, from 2.76 yuan before the suspension, up to 21.60 yuan.

Until September 26 this year, Changhang Phoenix, which had been mailed to investors by the investors for restructuring, released the news of termination of the reorganization.

Regarding the reasons for the termination of the reorganization, Changhang Phoenix stated that the application for the qualification of “Port and Channel Engineering Construction General Contracting Level I” was not approved due to the major asset reorganization and the asset and port construction, resulting in that The overseas construction agreement signed by Fuhua Company cannot be implemented on schedule, which directly affects the continued progress of this major asset reorganization, which makes the implementation of the reorganization plan determined in the draft subject to greater uncertainty. That day the stock price plummeted by more than 6% to 6.67 yuan per share.

Regarding Changhang Phoenix's current low stock price and profit loss, investors have expressed their dissatisfaction and willingness on the interactive platform of Shenzhen Stock Exchange. Some investors questioned the reasons given by Changhang Phoenix to terminate the reorganization.

At the same time, some investors have pinned their expectations on the restructuring plan in the future, hoping that Changhang Phoenix can start the restructuring again to restore market value. But the company secretary did not disclose future restructuring plans. At the same time, there are reports that industry insiders believe that in the short-term recovery of the industry environment, Changhang Phoenix's method of reversing performance can only be reorganized.

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