Jiangxi Tourism Group Co., Ltd. (hereinafter referred to as "Jianglv Group") officially became the "helmet" of China National Travel Service United Co., Ltd. (hereinafter referred to as "China Travel United"). On August 13, CITS United received the "Reply on Matters Related to Jiangxi Tourism Group Co., Ltd.'s Agreement to Transfer 14.57% of CITS United Co., Ltd.'s Shares" from Jiangxi Tourism Group, and Jiangxi Provincial State-owned Assets Supervision and Administration Commission agreed in principle. Jianglv Group acquired 14.57% of CITS United’s shares and gained control of CITS United. After the completion of this transfer, Jianglv Group will become the largest shareholder and controlling shareholder of CITS United.
Public information shows that CITS United has sold many of its assets. Including the 18th-floor Building A property of Golden Eagle International Mall, No. 289 Hanzhong Road, Nanjing, which was sold in 2014, and the equity of Tangshan Hot Spring in October 2017. In terms of asset investment and acquisition, CITS United also acquired 51% equity of Beijing Fan Technology Co., Ltd.
However, in recent years, CITS United has relied on selling its assets to subsidize its performance while frequently investing in and acquiring cultural, sports and entertainment projects to seek transformation. However, the listed company has suffered from long-term operating losses. From 2015 to 2017, CITS United’s net profits attributable to the company’s common shareholders after deducting non-recurring gains and losses were losses of 67.05 million yuan, 153 million yuan, and 36.12 million yuan respectively. The industry speculates that under the weak performance and financial pressure, CITS United, which "removes the east wall to pay for the west wall", has added a lot of operating pressure to Contemporary Asset Management.
At present, CITS United’s tourism assets have basically been divested. Jianglv Group, which is mainly engaged in tourism, investment, etc., has taken over at this time. It is still unknown how it will adjust CITS United’s business direction. According to industry insiders, it is currently difficult for CITS United to successfully transform. In addition to making corresponding adjustments to its talent structure and capital source structure, it should also actively seek investors with cultural backgrounds. Jianglv Group has long-term operating experience in the culture, tourism, and investment industries. After taking over CITS United, it can use existing channels and resources to drive the company's transformation, and it can also reconnect its rich tourism resources to CITS United to activate the company. Operational vitality.
(Editor: Li Yue)
