Hong Kong-based China Travel Service (HK) Group Corporation (CTS (HK)) has announced that it will exit from the steel business and that it has thereby decided to voluntarily transfer 58.49 percent of equity in Tangshan Guofeng Iron & Steel Co. Ltd (Tangshan Guofeng Steel) and 35.09 percent of equity in Tangshan Dafeng Coking Co., Ltd (Tangshan Dafeng Coking) to the State-owned Assets Supervision and Administration Commission (SASAC) of China’s Hebei Province.
CTS (HK) stated that it will focus on the development of its tourism business against the backdrop of the overall sluggishness in the steel industry. The equity transfer in question, though narrowing the scope of the company’s business, is expected to stabilize its financial situation and improve its profitability.