Phoenix Media plans to integrate distribution business and set up a distribution operation company.

​ on Sept. 7, Jiangsu Phoenix Publishing Media Co., Ltd. announced the announcement on the asset integration of the company's internal issuance business. According to the announcement, Phoenix Media intends to integrate the company's internal issuance business assets and regard the wholly-owned subsidiary supply chain Company as the head office of the future issuance business operation.

on September 7, Jiangsu Phoenix Publishing Media Co., Ltd. announced the announcement on the asset integration of the company's internal issuance business. According to the announcement, Phoenix Media intends to integrate the company's internal distribution business assets and regard the wholly-owned subsidiary supply chain Company as the head office of the future distribution business operation. It will absorb all the assets and various foreign investments related to the distribution business of the company, and integrate 66 Xinhua Bookstore Co., Ltd., Inner City County, Jiangsu Province, into its subsidiaries through absorption and merger, so as to realize the overall control and operation of the distribution business. In order to achieve the purpose of strengthening management and control, improving operational efficiency, strengthening management capacity building, and reducing operating costs.

at present, the assets of Phoenix Media Distribution Section mainly include distribution branch, logistics branch, wholly-owned Xinhua Bookstore in 66 cities and counties, Hainan Phoenix Xinhua Publishing and Distribution Co., Ltd. (referred to as "Hainan Phoenix") and Jiangsu Xinhua supply chain Management Co., Ltd. (referred to as "supply chain Company") and other subsidiaries.

the specific integration plan of Phoenix Media, including an increase of 20 million yuan in capital for the supply chain company. After the completion of this capital increase, the registered capital of the supply chain company is 30 million yuan. Phoenix Media will transfer the equity of Jiangsu Phoenix Xinhua Culture Development Co., Ltd., Yiwu Wanluan Xinhua Books Co., Ltd., Jiangsu Modern Vocational Education Book Distribution Co., Ltd. And Beijing Phoenix Shunyuan Logistics Co., Ltd. The equity transfer price shall be reasonably determined on the basis of the audit results issued by the audit institution on August 31, 2017 as the base date.

after the completion of this equity transfer, the supply chain company will be renamed "Jiangsu Phoenix Xinhua Bookstore Group Co., Ltd." (tentatively named, subject to the approval of the Ministry of Industry and Commerce, hereinafter referred to as "Phoenix Xinhua"). Phoenix Media Division will increase capital to Phoenix Xinhua with all the assets and related liabilities of the issuing branch and logistics branch owned by this department. As of December 31, 2016, the total audited book assets of the issuing branch and the logistics branch were 4031974151.01 yuan and the net assets were 27049567.34 yuan.

Phoenix Media plans to transfer 51% of Hainan Phoenix to Phoenix Xinhua. According to the audit report on December 31, 2016, the company's equity in Hainan Phoenix is 352715279.96 yuan.

Phoenix Xinhua will absorb and merge Xinhua bookstores in 66 cities and counties as a whole. As of December 31, 2016, the registered capital of Xinhua bookstores in 66 cities and counties totaled 317730000 yuan. According to the audit report on December 31, 2016, the total assets of Xinhua Bookstore in 66 cities and counties totaled 7076157679.01 yuan, net assets totaled 2918844281.44 yuan, operating income totaled 6556093224.30 yuan, and net profit totaled 533874973.82 yuan.

after the completion of absorption and merger, Phoenix Xinhua continued to operate, and the independent legal personality of Xinhua Bookstore in 66 cities and counties was cancelled, and all its assets, creditor's rights, debts, personnel and business were inherited by Phoenix Xinhua in accordance with the law. Phoenix Xinhua will set up branches in various parts of the absorbed party, and according to the unified deployment, the relevant assets, personnel and business will be injected into the local branches, which will be operated and managed by the local branches.

Edit: xiongwei