Another hotel company has delisted. Fantasia Hotels (.) announced that Fantasia Hotels, Fantasia Group (.), and the offeror jointly declared that the privatization plan officially took effect on [date] (Bermuda time). Meanwhile, the offer for convertible notes has become unconditional and remains open until 4:00 p.m. on Friday, [date] for investors to accept. The company's listing status on the Hong Kong Stock Exchange is expected to be withdrawn from 4:00 p.m. on [date].

According to the announcement, the restructuring plan has been approved at the previous court meeting and the special general meeting of shareholders, with approval rates of .% and .%, respectively. The share transfer registration procedures have been suspended from [Month] [Day], [Year].

Public information shows that Lu Zhiqiang, the founder of Oceanwide Group, once participated in the establishment of Minsheng Bank and served as its vice chairman. During the 18-month period from January 2014 to July 2015, Lu Zhiqiang cashed out a total of 4.5 billion yuan through the intensive reduction of Minsheng Bank shares. Subsequently, Lu Zhiqiang successively obtained financial licenses for Minsheng Securities, Minsheng Trust, Minsheng Futures, and invested 7.5 billion yuan to increase his holdings in Minsheng Bank in 2016. On April 20th of this year, Minsheng Bank disclosed a litigation announcement, stating that it had sued the "Oceanwide Group" and Lu Zhiqiang, demanding the repayment of a cumulative 7.5 billion yuan in principal and related interest and penalty interest.

The turbulence at Oceanwide Holdings, though not directly related to Oceanwide Hotels, indicates that the financial situation and overall operations of the Oceanwide Group are not running smoothly. From a hotel perspective, Oceanwide Hotels has a global presence, and precisely because of this, the company must navigate the changes and conditions in various global markets, such as the supply and demand dynamics and exchange rate fluctuations across different markets, which all add pressure on the company, according to a source close to the hotel industry who spoke to First Financial Daily.

The announcement shows that the revenue for the financial year of Fortune Hotels was HK$0.1 billion, a decrease of 88% compared to HK$0.9 billion in the previous year. The loss attributable to shareholders expanded from HK$0.1 billion in the previous year to HK$0.2 billion, an increase of 100%. The total assets decreased from HK$0.9 billion in the previous year to HK$0.1 billion, a decline of 89%, and the net asset value also dropped from HK$0.8 billion to HK$0.1 billion, a reduction of 88%. The net debt and gearing ratio both slightly increased by 1% and 2% respectively.

For the poor financial situation, Oceanwide Hotel explained that the increase in losses was due to the increase in expected credit losses on debt securities investments, and the court issued winding-up orders against several note issuers in the company's investment portfolio during the year.

In recent years, the overall competition in the hotel industry has intensified and the pressure has increased significantly. Since last year, the cultural and tourism market has shown signs of recovery, which is a positive development for many hotel enterprises. However, the specific situation of individual companies and the operational status of hotel projects must also be considered. The Fantasia Hotel is actually a hotel investment and operation model that relies on the real estate concept, which is different from the general light-asset brand management model of hotel companies. Therefore, Fantasia Hotel faces greater financial pressure. Privatization is a way out from a capital operation perspective, and it is also possible to explore other investment and financing channels to 'reinvigorate' the company, rather than continuously watching the total asset value shrink in the stock market. This analysis comes from Wei Changren, founder of Jinglv.com.