CITS profits in Hainan
China's largest travel agency, the China International Travel Service Corp Ltd (CITS) has announced a boom in its net profit for the first half of 2011.
The company's net profit for the first half of the year reached 331 million yuan ($52 million), a year on year increase of 44.85 percent, according to China Daily reports.
The profit increase has been attributed to the 27.12 percent rise in revenues of travel and sales, the agency's two major businesses. Combined, these two sectors reached 5 billion Yuan in business revenue.
The CITS travel enterprise group combines travel service, transportation, foreign trade, real estate and e-commerce over ten different countries. The group focuses primarily on e-commerce, travel and MICE both within China and abroad.
The company merged with China Duty Free Group in 2004 to form the CITS Group Enterprise.
A significant factor to the increase in profit has been the change in tax regulations on the island of Hainan, which enabled the development of duty-free complexes in the cities of Sanya and Haikou.
As of April 20 this year, tourists visiting Hainan Island, China's only tropical island Province, have been able to purchase commodities tax-free including leathergoods, electronics, jewellery and more.
Since April, the stores have brought record numbers of tourists to the island, particularly during the public holidays in May.
CITS said that the Sanya Duty Free Store reported a sales volume of 228 million Yuan, generating nearly 49 million Yuan in profit.
According to a report filed with the Shanghai Stock Exchange, earnings per share were up 45.17 percent, standing at 0.376 Yuan.
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