Financial News Agency, November 15 (Reporter Hu Haoqiong)Yesterday evening, *ST Xinlian (000620.SZ) issued an announcement stating that the reorganization application of the company and its wholly-owned subsidiary was accepted by the court. *The relevant person in charge of ST Xinlian told the Finance Association reporter that this means that the company has officially entered the restructuring process. Although there is still a lot of work to be done, the probability that the restructuring will fail has decreased.

According to the announcement, on May 18 this year, the Beijing First Intermediate Court decided to initiate a pre-restructuring of Xinhualian Cultural Tourism; on November 8, the 22nd meeting of the 10th board of directors was held to deliberate and pass the “Proposal on Wholly-owned Subsidiaries Applying to the Court for Reorganization”; yesterday, the company, Xinhualian Land, and Changsha Tongguanyao received “Civil Rulings” [(2023) Jing01, No. 461, (2023) No. 461, (2023) No. 1007, and “Decision” (Beijing, 2023) 389, (2023) Beijing 01 broke 390, (2023) Beijing 01 broke No. 391], ruled to accept the reorganization applications of the company, Xinhualian Land, and Tongguanyao in Changsha, and appointed Beijing King & Wood & Wood & Wood to act as the manager of the three companies mentioned above.

In terms of restructuring investors, on August 7 this year, the company and interim manager respectively signed the “Xinhualian Cultural Tourism Development Co., Ltd. Restructuring Investment Agreement” with restructuring investors Beijing Huafuanying New Asset Management Co., Ltd., China Foreign Economic and Trade Trust Co., Ltd., Beijing Beijing-Tianjin-Hebei Cooperative Investment Management Center (limited partnership), Guangdong Jiuke Private Equity Investment Fund Management Co., Ltd., and Shenzhen Deyuan Investment Co., Ltd. (representing “Deyuan Investment Deep Value No. 1 Private Equity Investment Fund”).

In September of this year, the company and the restructuring investor Shenzhen Deyuan Investment Co., Ltd. (representing “Deyuan Investment Deep Value No. 1 Private Equity Investment Fund”) signed the “Supplementary Agreement to the Restructured Investment Agreement” and signed the “Cancellation Agreement of the Restructured Investment Agreement” with the original reorganization investor Guangdong Jiuke Private Equity Investment Fund Management Co., Ltd.

In response, the relevant person in charge mentioned above told the Finance Association reporter that unlike the instability of the intended investors, these investors have all signed agreements to become the company's official restructuring investors, so the company has completed investor recruitment, which is conducive to the progress of subsequent restructuring procedures.

In addition to this, the relevant person in charge also said that at present, the company has also basically completed the debt review and drawn up a pre-restructuring plan, and the work of asset investigation, audit and evaluation, and communication with major creditors is progressing in an orderly manner.

Meanwhile, in the context of the rapid recovery of the cultural tourism market, the aforementioned relevant person in charge said, *ST Xinlian is also safeguarding future performance by divesting non-performing assets and strengthening its main cultural tourism business. Judging from several major holidays this year, the tourism revenue of the company's three major scenic spots did increase significantly year on year. Among them, tourism revenue during the Mid-Autumn Festival and National Day holidays increased 178% year on year.

According to the*ST Xinlian's third quarter results report, revenue for the first three quarters of this year was about 2,673 billion yuan, a year-on-year decrease of 14.27%; net profit loss attributable to shareholders of listed companies was about 1,758 billion yuan.