Antong Holdings, parent company of China’s second largest domestic liner operator Quanzhou Ansheng Shipping, has capped its restructuring with a net profit for 2020.
The group announced net earnings of CNY1.29 billion (US$197.85 million), improving from the CNY4.51 billion (US$645.06 million) net loss in 2019.
[s2If is_user_logged_in()]In December 2020, Antong completed a year-long government-led restructuring that saw CNY4.53 billion (US$688 million) injected into the company, enabling its debts to be cleared. Of the funds, CNY1.35 billion (US$205.24 million) came from Fujian Zhaohang, a joint venture between China Merchants Port Holdings, AVIC Trust and Quanzhou’s municipal government.
At the end of 2020, Antong’s services covered 129 Chinese ports, including Guang’ao, Zhanjiang and Maoming, which reportedly have the highest domestic volumes. Antong also established 14 sea-rail networks, covering 250 cities, including Harbin, Zhengzhou, Xi’an, Guiyang and Urumqi.
Antong’s predicament was uncovered when one of two brothers who are major shareholders, provided unauthorised guarantees amounting to CNY633.36 million (US$90.15 million) for a number of transactions involving the company between February 2017 and March 2019, resulting in around 30 lawsuits, seeking around CNY600 million (US$86.8 million).
The brothers have since left Antong’s management and post-restructuring, China Merchants Port Holdings’ Vice-Deputy General Manager, Zheng Shaoping, manages the company.
During the restructuring, Antong’s key subsidiaries, Quanzhou Ansheng and Quanzhou Antong Logistics, received CNY460 million (US$69.9 million) and CNY830 million (US$126.14 million), respectively, for financial assistance and debt repayment. The companies were also given a total of around 639 million new shares in a debt swap.
Martina Li
Asia Correspondent
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