China Travel International (HKG:0308) announced that on 1 June 2012, its wholly-owned subsidiary, Mangocity.com (Shenzhen) Limited, entered into entrusted software development contracts with pursuant to which China National Travel Service (HK) Group Corporation (China CTS (HK)) entrusted Mangocity to undertake, for a total entrustment fee of RMB10.9 million, software development and research and development implementation services involving B2C basic services system upgrade, business travel services system optimization and membership system upgrade.

China CTS (HK) is the sole shareholder of China Travel Service (Holdings) Hong Kong Limited (CTS (Holdings)), the controlling shareholder of China Travel International.

Since the software development is large in scale and complex in nature, China Travel International's directors consider that the entering into of the entrusted software development contracts through Mangocity, which is well experienced in software development and research and development and may leverage on its professional experience and strength in managing the software development, will enhance the business operations of Mangocity and the entrustment fee receivable under the entrusted software development contracts provides satisfactory returns for Mangocity.

Source:chinesestock.org