During its first shareholders meeting of 2007, China Youth Travel Service announced that it would spend RMB355 million on acquiring Tongxiang Wuzhen Travel Investment Limited Company so as to control the firm's managed scenic spots.

With RMB355 million, CYTS will get a 60% stake in Wuzhen Travel Investment Limited Company. This is the first large investment that CYTS has made in scenic areas since it was listed ten years ago. After the acquisition, CYTS will have the sole operation rights for Dongzha, Xizha and Zhongshi in the scenic area as well as priority in developing Nanzha and Beizha.

Ding Chongyang from CYTS has told local media that the company is planning a series of reconstruction projects for the Wuzhen area and the town would be an important reception base for CYTS inbound trip businesses and incentive travel businesses.

In the meantime, CYTS will issue about 65 million non-public shares in order to get more investment for its economy-standard Shanshui Hotel brand. At present, there are already 4 Shanshui Hotels that have been opened–three are located in Shenzhen and one in Beijing. The other 3 hotels that are under construction will be in Guangzhou, Zhaoqing and Dongguan, respectively.

Ding says that these 65 million shares should help them collect RMB880 million for them to open more than 20 Shanshui Hotels in the Pearl River Delta area and Bohai Sea area in the coming three years.