Zhitong Financial APP News, Hong Kong China Travel Service (00308) announced that on June 29th, 2022, CITS property Investment and CITS (Group) signed a subscription agreement that CITS property Investment will issue 1075 new common shares of CITS property Investment to CITS (Group) at a cost of 400 million yuan.

The announcement said that the group is actively studying the revitalization and optimization plan of existing assets, including Hong Kong properties, in order to improve the operational efficiency and release value of the assets. CTS property invests in a site in Hung Hom, Hong Kong, and is currently developing a 28-story boutique business hotel and supporting facilities on the site. The development project is expected to be completed around November 2023 and will require significant capital expenditure. The subscription agreement will strengthen the capital base of CITS property investment so that it can better meet the capital needs of its future business development.

As at the date of this announcement, CITS property Investment is a wholly-owned subsidiary of the company. Upon completion, the CITS property investment will be held 90.29% indirectly by the company and 9.71% directly by CITS (Group). CITS property Investment will remain a non-wholly owned subsidiary of the company.