Beijing Tourism Group (“BTG”), established in February of 1998, is China’s first provincial-level, wholly state-owned tourism enterprise. Through over ten years of hard work, BTG has realized leap-frog development. According to the “2007 China Big Enterprise Groups” published by the National Bureau of Statistics of China, BTG ranked 188, which showed its leadership among China’s tourism enterprise. By 31st December, 2008p, BTG has a total of 40,367 employees, with total assets of RMB28.55 billion. For the year 2008 alone, BTG has realized business revenue of RMB2.22 billion and a total profit of RMB1.24 billion, which enables it to rank the fourth among enterprises supervised and administered by the State-owned Assets Supervision and Administration Commission of the People’s Government of Beijing.

BTG has nearly one thousand member enterprises, with investment and management expanding as far as to Rizhao of Shandong in the east, Korla of Xinjiang in the west, Sanya of Hainan in the south, and Harbin of Heilongjiang in the north; also, it has several enterprises in America, France, and Hong Kong under its control or in which it has shares; it’s a nationwide strategic controlling and investment group focusing on investment, operation, and management in tourism and modern service industry, with business covering industries of hotel, tourism, catering, tourism service, auto service, tourist spot service, and tourism land property etc.

BTG has been strengthening its efforts on system transformation and integration, and has controlled two companies listed in China, namely Beijing Capital Tourism and Quan Ju De, held shares of companies listed overseas, such as Home Inns Hotel Group, and is positively acting to promote more qualified enterprises to enter the capital market.

BTG is increasingly strengthening its brand chain operation and management to promote its core competitiveness. By the end of 2008, there have been 60 chain hotels with operation and management under the name of “BTG jianguo”, 471 hotels operating in the brand of “Quan Ju De” (including Feng Ze Yuan, Fang Shan, and Sichuan Restaurant), and 206 restaurants operating in the brand of “Dong Lai Shun”. The inventory of cars in the brand of “Shouqi” has reached more than 10,000 with higher and higher market concentration; brands such as “New Yansha”, “Beijing Capital Tourism”, “Comfort Travel”, “Antique City”, “BTG Travel” have been stably promoted; some introduced international high-end hotel management brands including “Aman Junkies”, “Banyan Tree”, “Kempinski”, “Sheraton”, “Novotel”, “Nikko” have been put into use successively and expanded the market.

BTG is constantly strengthening the operation and management of its assets, fund and capital to increase income and decrease expenditure and prevent and control risks. It has successively built three systems (operation budget, investment and capital operation budget, and HQ cash flow budget), the settlement center collects billions of RMB with deposit rate of nearly 90% for those participating in fund collection and fund collection rate of 85% and saves financial expenses of over 100 million; it acquires platforms in a centralized way to save procurement cost of about 10%.

BTG also increasingly strengthens its HR management to build a learning enterprise and create a big harmonious family; it strengthens training to all employees, and emphasizes the improvement of the quality of its management personnel; it promotes some young and middle-aged cadres and employs some medium and high-level management personnel and professional talents; 101 enterprises in Beijing have established supplementary pension accounts for more than tens thousand of employees.

BTG actively performs its social responsibilities. Throughout the year, it receives delegates to NPC and CPPCC meetings; it has successfully completed service provision and reception tasks including Olympics HQ restaurant, 18 contracted restaurants, “two villages and two centers”, and stadium catering, part of accommodation in the athlete village, cars, and the Olympic Expo, and has served a total of 100,500 person-times. In addition, it completes reception tasks without any complaint, error, and accident, and is thus highly appraised by CPC Beijing Municipal Committee, Beijing Municipal People’s Government, and guests all around the world. BTG has donated a total of RMB 10.17 million for areas bearing disasters of snow and earthquake, 95% which are donated by employees individually.

BTG constantly strengthens strategic management. It has made its target in the 3rd five-year development plan that the major economic indices such as total assets, total income, and total profit shall be doubled by 2013, and quadrupled up to 2018. To achieve this goal, BTG will focus on four promotions. First, promote the strategy of “capital + brands”, fully construct customer resources, natural resources, financial resources, and information share platform, to further promote integrated operation; second, promote materialization of six blocks. Each block shall be centered at one listed company and one major brand to form enterprises clusters and brand effect; third, promote overall update of property: build “one line and six points” industrial clusters, to form “YN” (Yanxiang – Nuojin Restaurant) cluster, “YKGL” (Yansha – Kempinski Hotel – Great Wall Hotel – Landmark Towers Hotel) cluster, “JJG” (Jianguo Hotel- Jinglun Hotel – Gui You Tower) cluster, and “NX” (New Century Hotel – Xiyuan Hotel) cluster lined with Chang’an Street and expanded belt; fourth, promote expansion of BTG industrial cluster in Hainan: expand new markets on the basis of Sanya Nanshan Tourism Culture District an Banyan Tree State Guesthouse.

BTG cannot do without and will never forget the assistance and support from our friends in all fields, and will always be your friend worthy of your trust!