Saipan Fighter Island Visual China Data Picture
htmlOn September 17, Zhongxin Travel (002707.SZ) issued an announcement stating that its holding subsidiary U-Top Investment (Saipan) Inc. (hereinafter referred to as U-Top) has obtained the exclusive franchise operation rights of Saipan ferry island for a period of 5 years.U-Top is a joint venture jointly established by Hong Kong Zhongxin International Travel Agency Co., Ltd. (Hong Kong Zhongxin), a wholly-owned subsidiary of Zhongxin Travel , and Top Development Incorporation (TDI), one of the largest local agencies in Saipan, in January 2018. The registered location is in Saipan. Among them, Hong Kong CITIC holds 99% of the shares and TDI holds 1% of the shares. Even if the equity ratio is adjusted in the future, Hong Kong CITIC will retain its position as a controlling shareholder.
announced that Zhongxin Travel plans to invest US$560,000 (nearly RMB 4 million) in its own funds to U-Top, and agrees that U-Top sign a franchise agreement with the Ministry of Public Lands of the Federal Government of the Northern Mariana Islands to obtain the exclusive franchise operation rights of Saipan Warship Island, with a licensing period of 5 years and renewable. This fund is mainly used to pay the annual fee for the operation rights of the warship island, daily operating expenses, etc.
The exclusive franchise will franchises U-Top to exclusively operate specific areas of the warship island, including but not limited to catering services; rental/selling of water sports equipment, entertainment equipment, beach equipment and other related supplies; selling souvenirs; island and offshore tours; water and underwater activities, etc. However, U-Top is responsible for relevant environmental sanitation, power generation, sewage discharge, facilities, vegetation and other maintenance, security, etc. (DPL provides a 50%-100% fee subsidy).
Central Travel said that this foreign investment obtained the operation rights of Saipan Warship Island, allowing the company to directly enter the overseas resource operation field, which is the implementation of the company's overseas destination resource layout; it is conducive to enriching the company's business type, improving the company's ability to control upstream resources, and improving the company's competitive barriers and profitability.
Saipan is the federal capital of the Northern Mariana Islands. The annual average temperature is around 27℃. It is a tourist resort and a world-famous diving resort. Chinese citizens are allowed to enter the country without visa. The Warship Island is located on the west side of Saipan. It is known as the pearl of Saipan and is one of the must-visit attractions for Saipan tourism. It is understood that in 2018, Saipan received a total of 518,000 tourists, of which 216,000 Chinese tourists were, accounting for 41.70%.
It is worth mentioning that Zhongxin Travel net profit fell by nearly 90% last year due to incidents such as Phuket shipwreck and volcanic eruption in Bali, Indonesia, and other events, and the net profit attributable to shareholders of listed companies was 23.5661 million yuan. The semi-annual report released by Zhongxin Travel in August this year is also unsatisfactory. The report shows that Zhongxin Travel 's operating income in the first half of this year was 5.719 billion yuan, a decrease of 1.09% from the same period last year; net profit was 110 million yuan, a decrease of 20.37% from the same period last year.
As of the close of September 17, Zhongxin Travel was 5.51 yuan, down 2.99%.
