(Yicai Global) July 5 -- China Duty Free Group Co. (CDFG), a subsidiary of China's leading company in the tourism industry, China International Travel Services Ltd. (CITS) [SH: 601888], has obtained the operation rights for the duty-free goods business in the international zone of Beijing Capital International Airport (BCIA) for the next eight years.
China Duty Free Group Co. and Sunrise Duty Free (China) Co. won the bidding for the first and second sections of the Beijing Capital airport's international duty-free zone business bidding project respectively, said a statement from CITS yesterday.
CDFG is a wholly-owned subsidiary of the public company CITS that will obtain 51 percent shareholding of Sunrise Duty Free Co. following its winning bid, the statement added.
The minimum operation expenses for the first year of CDFG's duty-free business in BCIA will be CNY830 million (USD122 million), and the corresponding sales is expected to be 47.5 percent of the operation expenses. Sunrise Duty Free's operation expenses for the first year are CNY2.2 billion, with corresponding sales expected to be 43.5 percent of the operation expenses, it revealed.
Staff from CITS said CFDG's successful bidding will become a model for CITS's next move for Shanghai airport's duty-free project.
CITS A-share price rose by 0.14 percent at noon on Wednesday.