Zhonghong Holding Co Ltd, announced on Wednesday night that the company has won the competitive bidding for the Ruyi Island tourism project, located in Haikou, Hainan province. Zhonghong will join China Railway Group Ltd to provide 3 billion yuan ($474 million) for the project, Securities Daily reported Thursday.

According to the report, Zhonghong has agreed to form a joint venture with China Railway Group to bid for the artificial fill island project on May 11. Zhonghong and China Railway hold 45 percent and 55 percent of the common shares respectively.

The sea area (the formation of the land area) of the project is 6.12 square kilometers with a turnover of 3 billion yuan. The trading service fee is 9.38 million yuan.

Tthe Ruyi Island tourism project is about 17 km away from Meilan international airport and about 12 km away from the downtown of Haikou, said the report.

With the initial investment of no less than 1.6 billion yuan for land building, the Ruyi Island project will be built as an environmentally friendly and high-end tourism resort for fashion, leisure and sports..

Industrial insiders pointed out that the co-operation between Zhonghong and China Railway will also be conducive to the development of their travel real estate business.