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Achievements

CITS GROUP CORPORATION is a key state-owned large corporation integrated with travel service, sales of duty-free products, development and management of real estates tourism resorts, communications and transport, electronic commerce and other general services with a registered of RMB 390 million and one of the largest and most powerful tourism enterprises.. "CITS" is Chinese famous trademark and well-known brand at home and abroad. In 2005, CITS Group was included in "China Top 500 Service Enterprises" and in August 2005 "CITS" brand ranked the 50th of China Top 500 Brands with Most Value and 1st of the Tourism Service, with a brand value of 10.364 billion Yuan, as announced by WBL (World Brand Lab).

CITS GROUP CORPORATION has three major subsidiaries: CITS Head Office, China Duty Free Group Corporation and CITS Real Estates and Property Management Company to be established soon.

Established in 1954 and with a development history of 50 years, CITS Head Office has become the large travel service corporation known at home and abroad. Over the years, CITS Head Office has solicited and received over 10 million man-times of overseas tourists and earned over US$ 3 billion, sharing over 10% of the international tourist market of over 1300 Chinese international travel agents and has established 13 offshore companies in such countries and regions as America, Japan, Australia, France, German, Demark, Hong Kong and Macao. It has possessed over 150 shareholding and sole-invested companies an special-license enterprises all over China and has established a steady and effective business relationship with over 1000 travel service agencies spreading all over the world. Thus, it has formed a steady international sales network and complete and high-quality reception network.

With the development of 20 years since its establishment in 1984, China Duty Free Group Corporation has successively set up 159 duty-free enterprises (shops) covering the channel of airport. inflight. boundary port , etc., with the sales network covering over 90 port cities and boundary areas in 28 provinces, autonomous regions and municipals. The main products for operation include high-class imported commodities and domestic master pieces, with over 20 categories and over one thousand varieties. The Company's annual sales volume holds the market share of the country's port duty-free industry by 63%, ranking the sixth in Asian duty-free dealers and joining Top 20 world duty-free dealers as the representative of Chinese duty-free industry. CDFG has established a fine cooperative relationship with Chinese and foreign world-known duty-free commodity producers and suppliers and provided fine-quality and convenient duty-free shopping services for hundreds and thousands of Chinese and foreign tourists, diplomats in China and international seamen.

While operating and managing CITS Wangfu Plaza, Changan Plaza, GRAND ORIENT Plaza, Gold Land Plaza and other properties, CITS Real Estates and Property Management Company to be established soon will be devoted to develop projects with characteristics of tourism, try the time-sharing resort projects and create a unique CITS real estate brand.

By end of 2004, CITS GROUP CORPORATION possessed 82 sole-invested and shareholding enterprises and 3,516 employees, with the business scope covering mainly travel service and sales of duty-free commodities as well as tourism communications and transport service, property lease and management and other businesses.

In 2004, the Corporation achieved a business income of RMB 3.749 billion Yuan, with an increase of 1.346 billion Yuan and a growth of 56.01% as compared with 2003. In 2003, being impacted by SARS, the subsidiaries of CITS GROUP CORPORATION, CITS Head Office and CDFG observed a major unfavorable influence in tourism and sales of duty-free commodities, while the operation performed slid to the valley. 2004 became a critical year for CITS GROUP CORPORATION to try to get rid of the difficult situation and accelerate the resuming of business. With the tourism being gradually recovered, the Corporation overcame the "bird flu" early in the year and remaining influence of "SARS" and focused closely the two main businesses: travel service and duty-free service: on the one hand, it improved the available businesses and exploiting potential growth; on the other hand, by optimizing the integration for new value, with efforts made, the business performance of the Corporation observed a higher growth as compared with the year of 2003.