CITS GROUP CORPORATION was established upon approval of the State Council and State-owned Assets Supervision and Administration Commission of the State Council (SASAC) ,and with the merge and restructure of China International Travel Service (CITS Head Office) and China Duty Free Group Corporation (CDFG). In December 2003,vide it's Announcement on Approval for Restructure of Six Enterprises Including China Railway Engineering Corporation,SASAC approved the restructure of China International Travel Service Head Office and China Duty Free Group Corporation for establishment of CITS GROUP CORPORATION.

On November 10,2004,CITS GROUP CORPORATION announced officially its establishment,the total assets of nearly 4 billion Yuan. The Group Headquarters has six functional departments,Office,Strategy and Investment Department,Planning and Finance Department,Human Resources Department,Auditing Department and Travel Insurance Department. The Corporation has three major subsidiaries: CITS Head Office,CDFG and China CITS Real Estate and Property Management Company to be established.

CITS Head Office was officially established in Beijing in 1954 under the concern of Premier Zhou Enlai. With 50 years of hard work and continual efforts,CITS Head Office has developed into a key state-owned large corporation integrated with travel service,communications and transportation,foreign trade,real estates development and management,electronic commerce and other general services and become one of the largest and most powerful tourism enterprises. Over the last 50 years,CITS Head Office has solicited and received over 10 million man-times of foreign tourists to and in China,earned US$ 3 billion,established the stable cooperative relationship with over 1,400 travel service providers in the world,14 offshore branches in America,Europe,Japan and Australia and other countries and regions and 150 subsidiaries and chain enterprises in all provinces,autonomous regions and cities. In 2001,2002 and 2003 it had been included in China Top 500 Enterprises by National Bureau of Statistics of China and took successively in years the first place of China Top 100 International Travel Agents in the ranking made by China National Tourism Administration for tourism enterprises. Now,"CITS" is leading the China 500 Most Valuable Brands to become the internationally known brand and has been registered in over 60 countries and regions in the world. With its contribution to and notability in tourism,CITS Head Office has become the only Chinese enterprise in the World Tourism Organization (WTO).

China Duty Free Group Corporation was established in 1984 upon approval of the State Council to operate and manage the sales of duty-free commodities in Mainland China. Since its establishment,the Company has maintained a fine development trend and especially over the last ten years by liberating constantly thoughts and exploiting and innovating has successively taken important actions such as operating shareholding duty-free shops,introducing home-made master pieces into the shops,establishing allied procurement institution and undertaking management consultancy and reform. The Company has rapidly elevated the core competitive strength and created the proud performances. Currently,CDFG has established over 150 duty-free shops and duty-free companies in over 90 port cities and boundary regions and maintained the long-term stable cooperative relationship with several hundred of world-known brand producers and suppliers,selling over twenty categories of commodities 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.

According to the Corporation's strategic planning,CTIS Real Estate and Property Management Company to be established will undertake mainly the investment of tourism projects and development of resorts and scenery spots,property management and lease of self-owned properties.

CITS GROUP CORPORATION structured with CITS Head Office and CDFG will give a play to the advantage of "high business association and strong supplementary resources" and create an operation mechanism and corporate culture more suitable for market competition to provide the domestic and foreign tourists with a chain of fine-quality services.

It is believed that in the near future CITS GROUP CORPORATION will definitely observe a great development period with the tourism and duty-free industry as the main business,the real estate and property management as the support and the domestic and offshore listed companies as the two wings. The Group's travel service network and duty-free sales network will spread all over the country and offshore important cities and ports,while the Group's "CITS" will also become one of the most respectable brands in the world tourism. CITS GROUP CORPORATION will make new contributions to the value-keeping and value-added of state-owned assets and reform and development of state-owned enterprises and new and bigger contributions to the development of Chinese tourism.