After Contemporary Asset Management relinquished its controlling stake, the other two "Contemporary" companies among CITS United shareholders also withdrew from the ranks of shareholders. On March 18, CITS United Co., Ltd. announced that Contemporary Travel and Jinhui Fengying wo

After Contemporary Asset Management relinquished its controlling stake, the other two "Contemporary" companies among CITS United shareholders also withdrew from the ranks of shareholders. On March 18, China Travel United Co., Ltd. announced that Contemporary Travel and Jinhui Fengying would transfer their shares to Jianglv Group. Since then, the "Contemporary Department", which has been in charge of CITS United for nearly five years, has completely withdrawn. With the complete withdrawal of the "Contemporary Department", Jianglv Group's shareholding ratio has increased to 29.01%. How CITS United will position itself with frequent changes in its main business has become the focus of the industry. The "Contemporary Department" that

has owned for nearly 5 years has completely withdrawn from the CITS United

Xiamen Contemporary Tourism Resource Development Co., Ltd. (hereinafter referred to as "Contemporary Tourism") and Beijing Jinhui Fengying Investment Co., Ltd. (limited partnership) (hereinafter referred to as "Jinhui Fengying ") signed a "Share Transfer Agreement" with Jiangxi Tourism Group Co., Ltd. (hereinafter referred to as "Jiang Tourism Group") on March 18. According to the agreement, Modern Travel will transfer its 57,936,660 CITS United shares, accounting for 11.47% of the company's total share capital, to Jianglv Group, and Jinhui Fengying will transfer its 15 million CITS United shares, accounting for 2.97% of the company's total share capital, to Jianglv Group. group.

It is reported that Jianglv Group acquired a total of 14.44% of the shares of CITS United held by Contemporary Travel and Jinhui Fengying at a price of 8.292 yuan per share, for a total transfer price of 604.79 million yuan. After the completion of this transaction, Modern Travel and Jinhui Fengying will no longer hold shares in CITS United.

9 months ago, Xiamen Contemporary Asset Management Co., Ltd. (hereinafter referred to as "Contemporary Asset Management"), a concerted party of Contemporary Tourism and Jinhui Fengying, signed a "Share Transfer Agreement" with Jianglv Group, transferring all the shares it held The shares of CITS United were transferred to Jiangxi Tourism Group. On January 16, 2019, the shares held by Contemporary Asset Management have completed the transfer registration procedures, and Contemporary Asset Management has withdrawn from CITS United. At this point, the "Contemporary Department", which had been in charge for nearly five years, completely withdrew from CITS United, and the Jiangxi Provincial State-owned Assets Supervision and Administration Commission took over CITS United and became its actual controller.

After the completion of this transaction, Jianglv Group holds a total of 146.492766 million shares of CITS United, accounting for 29.01% of the company’s total share capital. It is the company’s controlling shareholder and has the single largest voting right.

After the completion of the transaction, the shareholding situation of Jianglv Group (Source: Screenshot of CITS United Announcement)

html Over the past 21 years, the controlling shareholder and main business of CITS United have changed in turn.

In the 21 years since its establishment, changing the controlling shareholder is not the first time that CITS United has changed its controlling shareholder. Once. Public information shows that CITS United was jointly established in 1998 by five state-owned enterprises including China International Travel Service and Nanjing Tourism Corporation. China International Travel Service holds 45.45% of the shares and is the original controlling shareholder of CITS United. In 2014, Xiamen "Contemporary Department" took over CITS United from China International Travel Service Corporation, ushering in the "contemporary" era of CITS United until 2018 when Jianglv Group took over the company.

Compared with the speed of changing the controlling shareholders of CITS United, the company’s main business changes even more frequently. On September 22, 2000, CITS United, which was just one year and 10 months old, was listed on the Shanghai Stock Exchange and positioned itself as a tourism product supplier. In its prospectus, CITS United stated that the funds raised will be used to purchase tour buses and other tourism businesses. However, the actual amount of raised funds used for specific tourism businesses is very small, and most of them have been used for financial investment. After some troubles and a decline in performance, in 2002, China National Travel Service United began to divest its tourism and tourism service business to transform, selling all its original tourist passenger transportation, travel agencies, ticket booking and room booking businesses, and only retaining Nanjing Tangshan Hot Spring Resort projects and lottery technical service projects.

In 2014, after the Hyundai Department took over CITS United, it once again made major strategic adjustments to CITS United, saying that it would transform into a pan-entertainment company. After divesting the company's main business, Tangshan Hot Spring, it participated in the business of a number of companies related to the cultural and sports fields. In September 2017, the company planned to acquire 100% of the equity of Shanghai Dushi Sports, but it was stopped by the Mergers and Acquisitions and Reorganization Committee of the China Securities Regulatory Commission in February 2018. The company's plan to transform into outdoor sports and entertainment suffered a setback. CITS United, which had suffered long-term losses and relied on asset sales to maintain its appearance, found it difficult to support the "Contemporary Department" after aggressive expansion and acquisitions, and had no choice but to let go. Jiangxi State-owned Assets Supervision and Administration Commission took over, and CITS United returned to the state-owned assets.

Backed by a big tree of state-owned assets, will CITS United benefit from the benefits in the future?

CITS United was taken over by Jianglv Group, which many in the industry viewed as an important step in achieving transformation and improving its sluggish performance. Public information shows that Jianglv Group is a modern tourism group with a state-owned background. The actual controller is Jiangxi Provincial State-owned Assets Supervision and Administration Commission, with a shareholding ratio of 37%. As of June 30, 2017, the group's total assets were 6.176 billion yuan and its registered capital was 1.89 billion yuan. At present, through a combination of financing tools, the group has formed an investment capacity of more than 30 billion yuan. Wei Changren, founder of

Power Consulting, believes that one of the reasons why Jianglv Group took over CITS United was to integrate its high-quality assets and use CITS United’s shell to go public. This is the primary intention of Jianglv Group to win over CITS United. Wei Changren pointed out that although Jianglv Group has not yet clearly defined the main business positioning of CITS United from June last year, it can be seen from the assets of Jianglv Group and CITS United’s recent actions that the company has been moving towards the cultural tourism industry. Can basically determine.

In January and March 2019, CITS United transferred 60% of its shares in Guohong Culture and Suzhou Cultural Investment at a price of 0 yuan. CITS United stated in the announcement that the divestiture of equity investment companies will help listed companies concentrate their superior resources and focus on the core cultural and tourism industry. Wei Changren believes that CITS United’s multiple asset transfers are part of Jianglv Group’s plan to sort out the company’s assets. CITS United’s existing assets that do not meet the needs of the strategic development plan will be divested in sequence.

's state-owned assets background and sufficient financial strength make it a good tree for CITS United. However, in the view of Wei Changren, founder of Jinlv Consulting, it is still unclear whether CITS United can take advantage of the situation this time with the support of a big tree.

Jianglv Group’s business layout (Source: Screenshot of Jianglv Group’s official website)

The company’s operation and management capabilities are the key to the success of the company’s transformation

Wei Changren also said that although it is not ruled out that Jiangxi will pass unlisted high-quality assets such as Lushan Mountain in the future The joint inclusion of CITS is not impossible for provincial state-owned enterprises. But even if there are good resources, cultural tourism projects must rely on performance to win. If the management is poor or the management level is low, the profitability of listed companies will still have problems.

Profitability has always been a major pain point for CITS United. It has been in the capital market for more than 20 years, and non-net profits have been declining since 2004, and all of them are negative. In 2011 and 2012, the company's performance plummeted like a cliff, and it became a hat-trick company. CITS United's 2018 performance forecast shows that the non-net profit attributable to shareholders of listed companies in 2018 ranges from -90 million to -110 million yuan, and the loss has further expanded compared with 2017.

In addition, CITS United, which is on the verge of preserving its shell, has always had a very high pledge ratio of its major shareholder shares. As of now, Jianglv Group has acquired 29.01% of the shares from Contemporary Asset Management, Contemporary Travel, Jinhui Fengying, etc. The shares are all pledged. Funding difficulties have also become a major problem for CITS United, so that when Jianglv Group acquires equity interests such as Contemporary Travel, it places special emphasis on the source of funds.

Wei Changren believes that for the future development of CITS United, how to use market-oriented mechanisms to maximize the best effects of the resources integrated into the company depends on the management capabilities of the management. But for CITS United and Jianglv Group at this stage, "how to deliver a good answer" is an afterthought, and "how to integrate" is the focus at the moment. Judging from the reaction of the secondary market, the overall speed and direction of Jianglv Group's integration of CITS United are relatively optimistic. Since February 2019, CITS United’s stock price has moved up as a whole. As of press time on March 19, CITS United’s intraday high reached 5.1 yuan, a new high in 2019.

Beijing News reporter Wang Zhenzhen editor Qu Tingyi proofread Li Lijun