On February 29, an internal notice from Baicheng Travel Network showed that due to the impact of the epidemic, Baicheng’s funds could not sustain the company’s continued operation, so it decided to close the company and start liquidation preparations. The notice stated that the employees' January salary will be paid on March 10, and the company will no longer pay five social insurances and one housing fund or pay wages to employees from March onwards. All employees must complete matters and procedures such as returning company property before 16:00 on March 9. It is understood that Baicheng focuses on "outbound travel for Chinese citizens" and mainly operates outbound travel online retail and business travel services. Due to the epidemic, visas and flights to many countries have been suspended for Chinese citizens. But at the same time, it is worth noting that Baicheng Travel Network has been in a loss-making state for many years. Relevant data shows that in 2015, Baicheng had an operating income of 299 million yuan and a net loss of 39.3519 million yuan; in 2016, it had an operating income of 549 million yuan and a net loss of 45.1081 million yuan; in 2017, it had an operating income of 525 million yuan and a net loss of 27.9545 million yuan; in the first half of 2018, it had an operating income of 284 million yuan and a net loss of 12.8564 million yuan. Zeng Song, founder, chairman and CEO of Baicheng Travel, once founded Huayuan International Travel, one of the three largest wholesalers of outbound travel in China. In 2012, he officially took the helm of Baicheng Travel Network. At the end of 2015, the company applied to be listed on the New Third Board. |
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