CHINA. In big breaking news, China Duty Free Group parent company China International Travel Service voted at its board meeting on 28 October to create a joint venture business with Hainan Duty Free.
The registered share capital will be RMB100 million (US$14 million), with Hainan Duty Free contributing RMB51 million for a 51% share, and China Duty Free Group investing RMB49 million for the remaining 49% holding.
The unanimous decision needs to be submitted to the shareholders’ meeting for final approval.
As reported, China International Travel Service (CITS) was merged with China National Travel Service (HK) earlier this year.
China Duty Free Group is the dominant Mainland Chinese duty free retailer and supplier, with a powerful presence on Hainan Island through its much-acclaimed Haitang Bay duty free complex. Hainan Duty Free, which has operations at Haikou Meilan International Airport on Hainan Island, is part of HNA Group, the hugely influential and ambitious Chinese aviation-to-hospitality giant.
CDFG could not comment further when contacted other than to confirm the board announcement.
We’ll bring you more details on the repercussions of this potentially blockbuster alliance as soon as we can.
