A privately owned Chinese investment management company has acquired part of Antong Holdings’ cold chain operations and a ship from the struggling liner operator after an auction on e-commerce site Taobao.
In a filing to the Shanghai Stock Exchange, Antong said that Shenzhen Qianhai Hanghui Investment Management Company (a literal translation of the Chinese name) had acquired all the assets of Southeast Cold Chain Storage and Guangxi Changrong Shipping after the auction closed on 24 October.
Southeast Cold Chain Storage was acquired for CNY310.96 million (US$46.57 million) while Guangxi Changrong, the vessel-owning entity for Chang Rong 6, a 2013-built 798TEU general cargo ship, was purchased for CNY47.34 million (US$7.09 million).
Incorporated in April 2016, Shenzhen Qianhai Hanghui is ultimately owned by two individuals, Wei Hua and Chen Yajing.
Antong operates a domestic liner shipping service through its subsidiary, Quanzhou Ansheng Shipping, and provides logistics services through another unit, Quanzhou Antong Logistics.
Antong, which is being bailed out by Fujian China Merchants Ports Logistics Management Partnership, a government-led entity, remained in the red, posting a loss for the first nine months of 2020.
Revenue was down 20% year-on-year CNY3.25 billion (US$476.71 million). However, Antong’s net loss narrowed to CNY629.1 million (US$92.24 million), from CNY1.08 billion (US$152.11 million) in 9M 2019.
From February 2017 to March 2019, Guo Dongze, one of the two brothers who are the company’s major shareholders, provided unauthorised guarantees amounting to CNY633.36 million (US$90.15 million) for a number of transactions. That resulted in around 30 lawsuits filed against Antong Holdings, seeking around CNY600 million (US$86.8 million).
Martina Li
Asia Correspondent
