China's GDS giant TravelSky reported a 40% decline in total revenue to RMB 2,287 million (USD 333 million) for the first half of 2020.
Revenue from the aviation information technology services dropped more than 55% to RMB 996 million (USD 145 million) during the first sixth months this year.
TravelSky recorded an operating loss of nearly RMB 390 million (USD 56.8 million) during the reporting period, compared to an operating profit of RMB 1,553 million (USD 226 million) in the first half of 2019.
Ownership restructuring of app unit
TravelSky entered into the capital increase agreement with its subsidiary TravelSky Mobile Technology, its major investors China Southern Airlines Group, Eastern Airlines Industry Investment, Air Traffic Management Investment and TravelSky Capital.
TravelSky Mobile Technology is the operator of Umetrip, a mobile app for flight management, check-in, flight information and other functions.
According to the deal, China Southern Airlines Group, Eastern Airlines Investment, Air Traffic Management Investment and TravelSky Capital have agreed to make a capital contribution of RMB 241 million (USD 35 million) in total to TravelSky Mobile Technology.
On the same day, TravelSky formed another capital increase agreement with TravelSky Mobile Technology and Tianjin Yicheng Technology, in which Tianjin Yicheng Technology agreed to make a capital contribution of RMB 33.7 million (USD 4.9 million) to TravelSky Mobile Technology.
Upon the completion of the capital increase, TravelSky Mobile Technology's registered capital will be increased from RMB 60 million to RMB 189.8 million. It will be held as to 31.61% by TravelSky, 8.39% by Tianjin Yicheng Technology, 12% by China Southern Airlines Group, 12% by Eastern Airlines Investment, 12% by Air Traffic Management Investment and 24% by TravelSky Capital, respectively.
But the restructuring deals are yet to be completed, according to TravelSky's half-year financial report.