China International Travel Service Corp. Ltd. (CITS), the country's largest travel agency, said Saturday its net profit in the first half surged 44.85 percent year on year to reach 331 million yuan (about 52 million U.S. dollars).
The company attributed the profit increase to a 27.12-percent rise in revenues of its two major businesses, travel and sales. Business revenues from these two sectors amounted to 5 billion yuan.
Both sales and profit from its duty-free shops in Sanya, a sea resort city in southern China's Hainan Province, grew sharply since the provincial government launched a tax rebate program in April as part of its efforts to build the island province into an international tourist and shopping destination.
Starting April 20, tourists visiting the island and local residents will be able to purchase tax-free commodities from designated shops before flying to other destinations in China.
The company said its duty-free shops in Sanya reported 228 million yuan in sales volume, which generated nearly 49 million yuan of profits.
Earnings per share stood at 0.376 yuan, up 45.17 percent, the company said in a report filed with the Shanghai Stock Exchange.