中國旅遊集團中免股份有限公司 股份代號 : 非執行董事 范雲軍先生 （主席） 劉昆女士 （副主席） 執行董事 目錄 2 公司資料 5 董事會主席致辭 8 財務重點 9 財務摘要 10 管理層討論與分析 30 董事、監事及高級管理人員簡歷 36 企業管治報告 59 董事會報告 78 獨立核數師報告 86 綜合損益及其他綜合收益表 88 綜合財務狀況表 90 綜合權益變動表 92 綜合現金流量表 94 財務報表附註 177 釋義 2 中國旅遊集團中免股份有限公司 • 2024 年年度報告 公司資料 董事會 常築軍先生 王月浩先生 王軒先生 獨立非執行董事 葛明先生 王瑛女士 王強先生 聯席公司秘書 常築軍先生 張瀟女士 授權代表 王軒先生 張瀟女士 監事 劉德福先生 （主席） 李輝女士 鈄曉瓊女士 審計與風險管理委員會 葛明先生 （主席） 王瑛女士 王強先生 薪酬與考核委員會 王瑛女士 （主席） 葛明先生 王強先生 戰略與可持續發展委員會 范雲軍先生 （主席） 劉昆女士 常築軍先生 王軒先生 王強先生 提名委員會 王強先生 （主席） 常築軍先生 王月浩先生 葛明先生 王瑛女士 中國大陸註冊辦事處及總部及主要營業地 ...

Business Expansion and Market Presence - In 2024, the company introduced over 200 international and domestic well-known brands, launching 19 exclusive and globally limited product series with over 500 items[10]. - The company secured operating rights for 10 airport and port duty-free projects, leading to significant sales growth in domestic duty-free stores[11]. - The company expanded its overseas business with the opening of duty-free stores at Changi Airport in Singapore, Hong Kong International Airport, and a jewelry brand store in Tokyo[11]. - The company won bids for new city duty-free store projects in six cities, including Shenzhen and Guangzhou[11]. - The company expanded its market presence by securing operational rights for 10 new duty-free projects at various airports and ports, enhancing its channel advantages[22]. - The company introduced over 200 international and domestic well-known brands in 2024, including more than 20 exclusive brands, and over 150 new brands were introduced in Hainan stores[24]. Financial Performance - Revenue for the year ended December 31, 2024, was RMB 56,474 million, a decrease of RMB 11,066 million (approximately 16.4%) compared to RMB 67,540 million in 2023[14]. - Gross profit for the same period was RMB 17,347 million, down RMB 3,506 million (approximately 16.8%) from RMB 20,853 million in 2023[14]. - Net profit attributable to equity shareholders was RMB 4,324 million, a decline of RMB 2,466 million (approximately 36.3%) from RMB 6,790 million in 2023[14]. - The company's gross margin decreased to 30.72% from 30.88%, a reduction of 0.16 percentage points[14]. - The net profit margin decreased to 7.66% from 10.05%, a decline of 2.39 percentage points[14]. - Total assets as of December 31, 2024, were RMB 76,108 million, down RMB 2,554 million (approximately 3.2%) from RMB 78,662 million in 2023[14]. - Total liabilities decreased to RMB 15,312 million from RMB 19,688 million, a reduction of RMB 4,376 million (approximately 22.2%)[14]. - Cash and cash equivalents increased by RMB 3,021 million to RMB 34,773 million from RMB 31,752 million in 2023[14]. - The equity-to-debt ratio improved to 25.19% from 33.38%, a decrease of 8.19 percentage points[14]. Market Trends and Projections - The global international tourism industry is expected to reach 1.445 billion international travelers in 2024, a year-on-year increase of 11%, recovering to 99% of 2019 levels[26]. - The domestic tourism market is projected to see 5.715 billion domestic trips in 2024, reflecting a year-on-year growth of 14.8%[27]. - The global duty-free and travel retail market is forecasted to achieve sales of $73.73 billion in 2024, a year-on-year increase of 2.5%[28]. - The Asia-Pacific duty-free and travel retail market is expected to generate sales of $32.31 billion in 2024, accounting for 43.8% of the global market[30]. - The airport channel sales are projected to grow by 4.5% year-on-year, reaching $40.52 billion in 2024[32]. - The sales of alcoholic beverages are expected to increase by 5.6% year-on-year, reaching $11.55 billion in 2024[34]. - Hainan's offshore duty-free sales are projected to reach 47.03 billion RMB in 2024, despite a decline in shopping amounts and visitor numbers due to various market pressures[35]. Digital Transformation and Innovation - The company is advancing digital transformation by developing a digital procurement platform and a supply chain fulfillment platform[12]. - The company is enhancing digital infrastructure to support refined management and operations, integrating data centers for improved data management[25]. - The company aims to enhance its core capabilities and improve service quality, focusing on customer insights and supply chain management to boost operational efficiency[69]. - The company plans to deepen existing advantages and enhance online and offline integration to strengthen competitive positioning amid increasing market competition[73]. Corporate Governance and Management - The company emphasizes good corporate governance to enhance management and protect shareholder interests, adhering to the principles of the Corporate Governance Code[97]. - The board consists of eight members, including three executive directors and three independent non-executive directors, ensuring a diverse governance structure[106]. - The company has implemented a robust internal control and risk management system to monitor operational and financial performance[105]. - The board plays a crucial role in strategic decision-making and risk management, ensuring decisions align with the company's best interests[104]. - The company has adopted the standard code for securities trading by directors and supervisors to prevent insider trading[101]. - The company has maintained compliance with the Corporate Governance Code, achieving most of the recommended best practices[103]. Risk Management - The company has established a comprehensive risk management system, conducting annual major risk assessments based on likelihood and impact dimensions[146]. - The company aims to enhance risk quantification levels and improve the scientific design of risk warning indicators to prevent major operational risks[148]. - The company has implemented quarterly risk compliance training for all employees to enhance risk control and compliance awareness[149]. - The audit and risk management committee has confirmed that there are no significant internal control deficiencies in financial reporting as of the evaluation report date[155]. Shareholder Communication and Dividend Policy - The company aims to provide stable and reasonable returns to shareholders through its dividend policy, considering factors such as industry characteristics, development stage, and profitability[177]. - The company has a cash dividend policy targeting a minimum of 30% of the average distributable profit over the last three years for cash distributions[178]. - The company has established a shareholder communication policy to ensure effective dialogue with investors, including various communication channels such as performance briefings and roadshows[173]. - The company’s board of directors is responsible for proposing reasonable profit distribution plans based on factors like capital structure and cash flow[178]. Leadership Changes - The company appointed Chang Zhujun as the new General Manager effective April 2, 2024, following the resignation of Wang Xuan[103]. - Mr. Wang Xuan resigned as Chairman of the Board and other positions on October 17, 2024[200]. - Mr. Fan Yunjun and Ms. Liu Kun were appointed as non-executive directors on October 17, 2024[200]. - Mr. Fan Yunjun was appointed as Chairman of the Board and Chairman of the Strategic Sustainability Development Committee[200]. - Mr. Yu Hui resigned as Chief Financial Officer on November 26, 2024[200]. - Mr. Yang Hongyi was appointed as Chief Financial Officer on February 26, 2025[200].

Financial Performance - The group's operating revenue for the third quarter of 2024 was RMB 11,755,587,031.04, a decrease of 21.52% compared to the same period last year[3]. - Net profit attributable to shareholders for the third quarter was RMB 636,399,684.97, down 52.53% year-on-year[3]. - Basic earnings per share for the third quarter were RMB 0.3076, reflecting a decline of 52.53% compared to the previous year[3]. - Total operating revenue for the first three quarters of 2024 was RMB 43,020,585,432.70, a decrease of 15.5% compared to RMB 50,837,011,108.69 in the same period of 2023[15]. - Net profit for the first three quarters of 2024 was RMB 4,311,124,493.65, a decline of 20.5% from RMB 5,423,157,058.16 in the previous year[16]. - Earnings per share for the first three quarters of 2024 was RMB 1.8944, down from RMB 2.5165 in the same period of 2023[18]. - The total comprehensive income for the first three quarters of 2024 was RMB 4,210,036,486.96, down from RMB 5,908,745,924.37, a decrease of 28.7%[18]. Cash Flow and Liquidity - The net cash flow from operating activities for the year-to-date period decreased by 62.03%, totaling RMB 5,103,650,006.60[3]. - Operating cash flow for the first three quarters of 2024 was RMB 5,103,650,006.60, a decrease of 62% compared to RMB 13,442,904,588.11 in the same period of 2023[19]. - Cash inflow from operating activities totaled RMB 46,730,451,257.33, down 15% from RMB 55,166,707,917.70 year-over-year[19]. - Cash outflow from operating activities was RMB 41,626,801,250.73, slightly decreased from RMB 41,723,803,329.59 in the previous year[19]. - The net increase in cash and cash equivalents for the first three quarters of 2024 was RMB 232,901,428.16, a significant decrease from RMB 8,092,482,377.19 in the same period of 2023[21]. - The ending balance of cash and cash equivalents was RMB 31,985,093,212.30, down from RMB 33,854,625,563.83 at the end of the previous year[21]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 75,583,918,638.29, a decrease of 4.17% from the end of the previous year[3]. - Total current assets amounted to RMB 54,664,240,918.26, a decrease of 6.09% from RMB 58,455,840,882.98 on December 31, 2023[10]. - Total non-current assets increased to RMB 20,919,677,720.03 from RMB 20,413,565,309.73, representing a growth of 2.48%[11]. - Total liabilities decreased to RMB 11,190,992,282.55 from RMB 15,328,502,011.00, a reduction of 27%[12]. - Total liabilities decreased to RMB 15,626,323,551.97 from RMB 19,687,771,057.47, reflecting a reduction of 20.8%[14]. - Total equity increased to RMB 59,957,595,086.32, up from RMB 59,181,635,135.24, indicating a growth of 1.3%[14]. Shareholder Information - The total number of ordinary shareholders as of the reporting period was 309,526[6]. - The largest shareholder, China Tourism Group Co., Ltd., holds 50.30% of the shares[6]. Government Support and Other Income - The company received government subsidies amounting to RMB 16,706,918.88 during the reporting period[4]. - Other income rose significantly to RMB 93,380,555.12, compared to RMB 21,656,802.06 in the previous year, marking an increase of 331.5%[16]. Costs and Expenses - Total operating costs decreased to RMB 37,307,165,216.62, down 15.0% from RMB 43,862,113,989.89 year-over-year[15]. - The company reported a decrease in research and development expenses to RMB 8,731,353.92 from RMB 9,779,717.25, a reduction of 10.7%[15]. Investment and Financing Activities - Cash inflow from financing activities was RMB 126,610,460.64, compared to RMB 159,501,151.76 in the previous year[20]. - Cash outflow from financing activities increased to RMB 4,258,518,427.04 from RMB 3,818,841,850.58 year-over-year[20]. - The company received RMB 1,783,556,900.00 from investment recoveries during the first three quarters of 2024[20]. - The company paid RMB 3,510,014,546.10 in dividends, an increase from RMB 1,769,063,295.25 in the previous year[20]. Market and Product Development - The company has not disclosed any new product developments or market expansion strategies in the current report[9].

Business Overview - The company's main business focuses on duty-free retail, including wholesale and retail of tobacco, alcohol, cosmetics, luxury goods, clothing, and electronics[9]. - The company operates through two main segments: Travel Retail and Property, focusing on the sale of duty-free and taxable goods and property development[56]. Financial Performance - The company's revenue decreased by 12.81% from RMB 358.58 billion for the six months ended June 30, 2023, to RMB 312.65 billion for the six months ended June 30, 2024, primarily due to a decline in product sales[18]. - Revenue for the six months ended June 30, 2024, was RMB 31,264,998 thousand, a decrease of 12.5% compared to RMB 35,858,486 thousand for the same period in 2023[44]. - Gross profit for the same period was RMB 10,242,678 thousand, down 4.8% from RMB 10,754,378 thousand in 2023[44]. - Operating profit decreased to RMB 4,647,975 thousand, a decline of 9.4% from RMB 5,131,975 thousand in the previous year[44]. - Net profit for the period was RMB 3,666,551 thousand, representing a decrease of 11.3% compared to RMB 4,136,512 thousand in 2023[44]. - Total comprehensive income for the period was RMB 3,800,544 thousand, down 19.4% from RMB 4,713,735 thousand in the same period last year[44]. - The company reported a decrease in inventory to RMB 19,014,520 thousand from RMB 21,056,915 thousand at the end of 2023[45]. - The operating cash flow for the six months ended June 30, 2024, was RMB 4,309,150 thousand, down from RMB 8,573,228 thousand in the same period of 2023, indicating a decline of about 49.7%[49]. Cost and Expenses - Sales cost decreased by 16.26% from RMB 251.04 billion to RMB 210.22 billion, attributed to the reduction in sales revenue[19]. - Sales and promotion expenses increased by 3.41% from RMB 50.45 billion to RMB 52.17 billion, mainly due to higher airport leasing costs[19]. - Administrative expenses decreased by 7.64% from RMB 12.17 billion to RMB 11.24 billion, primarily due to reduced employee compensation and financial service fees[19]. - Employee costs rose by 2.11% from RMB 17.04 billion to RMB 17.40 billion, due to an increase in the number of employees in some stores[19]. - Financial costs decreased by 39.13% from RMB 1.61 billion to RMB 0.98 billion, mainly due to a reduction in borrowings and interest expenses[19]. Market Expansion and Strategy - The company successfully won the operating rights for duty-free shops at Guangzhou Baiyun International Airport T1, Kunming Changshui International Airport, and other key locations, with domestic duty-free store revenue increasing by over 100% year-on-year[11]. - Approximately 50 new brands were introduced in the Hainan region, including luxury brands such as Prada and Gucci, enhancing the brand portfolio[10]. - The company is actively expanding its overseas business, with new openings at Singapore Changi Airport and the launch of a duty-free shop on the Aida Magic cruise ship[11]. - The company is promoting "national trend" brands overseas, signing strategic cooperation agreements to expand brand presence in international markets[11]. - The company plans to focus on upstream brand and duty-free operator acquisition opportunities in the future[24]. - The company aims to expand overseas channels with an allocation of HKD 3,493.65 million for overseas duty-free shops and acquisitions of overseas travel retail operators, also expected to be completed by the end of 2027[33]. Membership and Customer Engagement - As of now, the company has over 35 million members, reflecting a strong marketing push and engagement strategies[14]. - The company is enhancing its online and offline collaboration, focusing on market, product, and member resources to increase customer retention and conversion rates[12]. - User data showed a growth in active customers by 15%, reaching a total of 3 million users by June 30, 2024[118]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has ensured compliance with all relevant provisions, maintaining high standards of corporate governance throughout the reporting period[35]. - The audit and risk management committee, consisting of three independent non-executive directors, reviewed the interim report for the six months ending June 30, 2024, confirming its compliance with applicable accounting standards and legal regulations[37]. - The company emphasizes the importance of good corporate governance to enhance management and protect shareholders' interests[35]. Future Outlook - The company expects a revenue growth guidance of 25% for the second half of 2024, driven by new product launches and market expansion strategies[118]. - Future outlook remains positive, with a focus on sustainability and digital transformation initiatives[118]. - The company is implementing cost-cutting measures aimed at reducing operational expenses by 15% over the next year[118].

Revenue and Growth - For the first half of 2024, the company reported a significant increase in domestic duty-free store revenue, with a year-on-year growth exceeding 100%[10] - Total revenue for the six months ended June 30, 2024, was RMB 312.65 billion, a decrease of 12.81% compared to RMB 358.58 billion for the same period in 2023[18] - In the first half of 2024, domestic tourism expenditure reached RMB 2.73 trillion, a year-on-year increase of 19.0%[15] - The number of domestic tourists in the first half of 2024 was 2.725 billion, representing a growth of 14.3% year-on-year[15] - Hainan's offshore duty-free shopping sales amounted to RMB 18.46 billion, a decline of 29.9% year-on-year[16] - For the six months ended June 30, 2024, external customer revenue reached RMB 31,136,251 thousand in the retail segment and RMB 128,747 thousand in the property segment, totaling RMB 31,264,998 thousand[58] - The company reported a revenue of HKD 1.2 billion for the six months ending June 30, 2024, representing a year-on-year increase of 15%[118] Brand and Product Expansion - The company successfully introduced approximately 50 new brands in the Hainan region, enhancing its brand portfolio with luxury names such as Prada and Gucci[10] - The company is actively expanding its product categories, introducing brands in various sectors including home goods and health products[12] - The company has launched a Paris Olympic licensed product store at Haikou Meilan International Airport, tapping into new consumer trends[10] - The company is actively expanding its product lines and improving procurement negotiation capabilities to adapt to market changes and enhance competitiveness[26] Strategic Initiatives and Partnerships - The company secured operating rights for duty-free stores at key locations, including Guangzhou Baiyun International Airport and Kunming Changshui International Airport, expanding its domestic channel presence[11] - The company has established a strategic cooperation agreement with the Jinjiang Municipal Government to promote "Guochao" (national trend) brands in overseas markets[11] - The company opened new duty-free stores in international locations, including the Aida Magic cruise ship and Changi Airport in Singapore, as part of its overseas expansion strategy[11] - The company is focused on optimizing its business layout both domestically and internationally, aligning with the "Belt and Road" national strategy[11] Financial Performance - The company's main business gross profit margin increased to 32.94%, up by 2.62 percentage points year-on-year[12] - Gross profit fell by 4.75% year-on-year to RMB 10.24 billion for the six months ending June 30, 2024, compared to RMB 10.75 billion for the same period in 2023[19] - Operating profit decreased by 9.43% year-on-year to RMB 4.65 billion for the six months ending June 30, 2024, down from RMB 5.13 billion for the same period in 2023[20] - Profit for the period declined by 11.36% year-on-year to RMB 3.67 billion for the six months ending June 30, 2024, from RMB 4.14 billion for the same period in 2023[20] - The group plans to focus on strengthening its duty-free business in Hainan and enhancing its online and offline business development in the second half of 2024[24] Cost Management and Efficiency - The group's sales cost decreased by 16.26% year-on-year to RMB 21.02 billion for the six months ending June 30, 2024, from RMB 25.10 billion for the same period in 2023[19] - The company is committed to improving profitability and operational efficiency in its duty-free business, reflecting a robust recovery in the sector[11] - The company is focusing on enhancing its core business capabilities and fine management to strengthen its competitive edge in the increasingly competitive duty-free market[25] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 32.15 billion as of June 30, 2024, from RMB 31.75 billion as of December 31, 2023[22] - The group's total debt decreased slightly to RMB 5.48 billion as of June 30, 2024, from RMB 5.53 billion as of December 31, 2023[23] - The equity attributable to shareholders increased by 0.04% to RMB 53.67 billion as of June 30, 2024, from RMB 53.65 billion as of December 31, 2023[20] - The company reported a decrease in inventory by RMB 2,042,395 thousand, compared to a decrease of RMB 3,472,486 thousand in the same period last year[49] Corporate Governance and Management - The company has adopted corporate governance practices in compliance with the Hong Kong Listing Rules, ensuring the separation of roles between the Chairman and the CEO[35] - The Audit and Risk Management Committee reviewed the interim report for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and legal regulations[37] - The company emphasizes the importance of good corporate governance to enhance management and protect shareholder interests[35] Future Outlook and Strategic Plans - The company provided a future outlook projecting a revenue growth of 10% for the next fiscal year, driven by market expansion strategies[118] - New product launches are expected to contribute an additional HKD 300 million in revenue, with a focus on enhancing customer experience[118] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of HKD 500 million allocated for potential deals[118] - The company plans to implement new marketing strategies that are expected to increase customer engagement by 25%[118]

Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 296,063[2]. - The largest shareholder, China Tourism Group Co., Ltd., holds 1,040,642,690 shares, representing 50.30% of the total shares[2]. - The second largest shareholder, Hong Kong Central Clearing Limited, holds 130,933,968 shares, accounting for 6.33%[2]. - The company has not reported any significant changes in the status of pledged, marked, or frozen shares among the top shareholders[2]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three alone accounting for over 62%[2]. - The company has confirmed that there are no undisclosed related party transactions among the top shareholders[3]. - The report indicates that no major shareholder participated in margin financing or securities lending activities during the reporting period[4]. - The company has maintained a stable shareholder structure with no significant changes in shareholding percentages among the top shareholders[3]. Financial Performance - The company's operating revenue for the three months ended March 31, 2024, was RMB 18,807,168,696.39, representing a decrease of 9.45% compared to the same period last year[5]. - Net profit attributable to shareholders of the listed company was RMB 2,306,454,931.34, showing a slight increase of 0.25% year-over-year[5]. - The net cash flow from operating activities decreased significantly by 28.59%, amounting to RMB 5,301,855,586.86[5]. - Total assets as of March 31, 2024, reached RMB 80,252,536,507.12, reflecting a growth of 1.75% from the end of the previous year[5]. - Shareholders' equity attributable to the listed company increased by 4.31% to RMB 56,152,200,758.25 compared to the end of the previous year[5]. - The weighted average return on net assets decreased by 0.45 percentage points to 4.19%[5]. - The company reported a total of RMB 7,363,093.24 in non-recurring gains and losses for the reporting period[6]. Cash Flow and Assets - Cash and cash equivalents increased to RMB 36,385,670,879.44, up from RMB 31,838,425,096.10 at the end of the previous year[7]. - The company's inventory decreased to RMB 17,593,450,843.28, down from RMB 21,056,914,824.36 at the end of the previous year[8]. - Current liabilities totaled RMB 14,240,916,287.69, a decrease from RMB 15,328,502,011.00 at the end of the previous year[9]. - The total assets as of March 31, 2024, amounted to RMB 80,252,536,507.12, an increase from RMB 78,869,406,192.71 as of December 31, 2023[10]. - The total liabilities decreased to RMB 18,628,723,894.60 from RMB 19,687,771,057.47, reflecting a reduction of 5.39%[10]. - The equity attributable to shareholders increased to RMB 56,152,200,758.25 from RMB 53,833,949,495.02, marking an increase of 4.83%[10]. Earnings and Expenses - Basic earnings per share for Q1 2024 were RMB 1.1148, down from RMB 1.3129 in Q1 2023, a decrease of 15.06%[13]. - The company reported a total comprehensive income of RMB 2,444,902,061.57 for Q1 2024, compared to RMB 2,162,078,538.60 in Q1 2023, an increase of 13.06%[13]. - Research and development expenses for Q1 2024 were RMB 355,002.40, significantly lower than RMB 699,056.60 in Q1 2023, a decrease of 49.05%[12]. Cash Flow Activities - Operating cash flow for Q1 2024 was RMB 5,301,855,586.86, a decrease of 28.5% from RMB 7,424,636,587.15 in Q1 2023[14]. - Cash inflow from operating activities totaled RMB 19,479,675,572.83, down 15.8% from RMB 22,896,726,189.80 in the same period last year[14]. - Cash outflow from operating activities was RMB 14,177,819,985.97, a reduction of 8.4% compared to RMB 15,472,089,602.65 in Q1 2023[14]. - Net cash flow from investing activities was -RMB 418,523,186.44, slightly worse than -RMB 408,159,228.50 in Q1 2023[15]. - Cash inflow from investing activities increased significantly to RMB 425,793,309.00 from RMB 109,481.25 year-over-year[15]. - Cash outflow from investing activities rose to RMB 844,316,495.44, compared to RMB 408,268,709.75 in the previous year[15]. - Net cash flow from financing activities was -RMB 256,125,481.32, worsening from -RMB 94,431,487.35 in Q1 2023[15]. - The impact of exchange rate changes on cash and cash equivalents was -RMB 79,764,135.76, an improvement from -RMB 617,894,179.16 in the same quarter last year[16]. - The net increase in cash and cash equivalents for Q1 2024 was RMB 4,547,442,783.34, down from RMB 6,304,151,692.14 in Q1 2023[16]. - The ending balance of cash and cash equivalents reached RMB 36,299,634,567.48, up from RMB 32,066,294,878.78 a year earlier[16].

Business Expansion and Operations - In 2023, the company opened the Sanya International Duty Free City C Zone, becoming the world's first standalone travel retail plaza specializing in fragrance products[12]. - The company successfully secured the operation rights for duty-free shops at Tianjin Binhai International Airport and three outbound duty-free shops in Yunnan, further consolidating its channel advantages in major domestic airports and ports[12]. - The company launched over 30 promotional events, including the Hainan offshore duty-free shopping festival, enhancing product offerings and service quality[12]. - The company established 14 "S Stores" (Super Service) to improve service standards and customer service capabilities, aligning with first-tier brand operations[12]. - The company obtained the operation rights for duty-free shops at Siem Reap Angkor International Airport in Cambodia and opened operations, as well as winning the rights for a boutique store at Singapore Changi Airport[12]. - The company is advancing the Sanya International Duty Free City Phase III project in collaboration with Swire Properties, aimed at enhancing long-term development[12]. - The company expanded its operations to include duty-free shops on cruise ships, such as the "Ida Magic" and "Mediterranean" cruise lines[12]. - The company continues to enhance its brand offerings and service quality in the Hainan offshore duty-free market, contributing to the construction of the Hainan Free Trade Port[12]. - The company is focused on optimizing its business layout to become a world-class travel retail operator[12]. Financial Performance - In 2023, the company achieved a revenue of RMB 67,540 million, an increase of RMB 13,107 million (24.1%) compared to RMB 54,433 million in 2022[14]. - The gross profit for 2023 was RMB 20,853 million, up by RMB 5,993 million (40.3%) from RMB 14,860 million in 2022, resulting in a gross margin of 30.88%[14]. - The net profit attributable to equity shareholders was RMB 6,790 million, representing an increase of RMB 1,676 million (32.8%) from RMB 5,114 million in 2022[14]. - The company’s total assets reached RMB 78,662 million, an increase of RMB 3,043 million (4.0%) from RMB 75,619 million in 2022[14]. - The total liabilities decreased to RMB 19,688 million, down by RMB 2,092 million (9.6%) from RMB 21,780 million in 2022[14]. - Cash and cash equivalents increased to RMB 31,752 million, up by RMB 5,990 million (23.2%) from RMB 25,762 million in 2022[14]. - The equity-to-debt ratio improved to 33.38%, a decrease of 7.07 percentage points from 40.45% in 2022[14]. - The company’s other income, including interest income, increased by 255.48% to RMB 1.49 billion in 2023, primarily due to new large-term deposits[33]. - The sales cost rose by 17.98% year-on-year to RMB 46.69 billion in 2023, driven by the increase in sales revenue[33]. Market Trends and Projections - In 2024, the company aims to strengthen its position as a leading global travel retail operator, focusing on strategic development in the tourism retail sector[13]. - The global duty-free and travel retail market is expected to achieve sales of USD 74.76 billion (approximately RMB 529.5 billion) in 2023, reflecting a year-on-year growth of 16.3%[29]. - The number of domestic tourists is expected to exceed 6 billion and domestic tourism revenue to reach RMB 6 trillion in 2024, recovering to or surpassing 2019 levels[29]. - The implementation of new policies is anticipated to gradually shift tourism consumption from post-pandemic recovery to sustained expansion[30]. Customer Engagement and Membership - The company expanded its membership base to over 32 million members, utilizing AI analysis for targeted promotions[13]. - The number of shoppers in Hainan's duty-free stores was 6.756 million, reflecting a year-on-year increase of 59.9%[26]. - The average shopping amount per person in Hainan was RMB 6,478[26]. Corporate Governance and Leadership - The company reported a significant leadership change with Wang Xuan becoming the Chairman of the Board and General Manager as of October 2023[61]. - Chen Guoqiang transitioned from General Manager to Vice Chairman in February 2023, indicating a strategic shift in management roles[62]. - The company has appointed several independent non-executive directors, enhancing governance and oversight capabilities[63]. - The company has a strong emphasis on human resources management, with Li Hui overseeing the Human Resources Department since September 2019[64]. - The leadership team has extensive experience in finance and management, with members holding advanced degrees and professional qualifications[62][63]. Risk Management and Compliance - The company has established a comprehensive risk management system, including the implementation of risk assessment and monitoring procedures[99]. - The company emphasizes the importance of compliance with legal regulations and has engaged external legal advisors for guidance[101]. - The company has implemented strict internal controls to manage confidential information and ensure accurate information disclosure[102]. - The board confirmed that there are no significant uncertainties regarding the company's ability to continue as a going concern[106]. Employee Development and Training - The company conducted approximately 1,520 key training programs, with a total of 148,000 participants and 547,000 training hours completed, averaging 32.8 hours per employee[156]. - The online training platform "China Duty-Free Academy" was utilized, with 25 course topics and 15 live training sessions conducted in 2023, totaling over 410,000 participants[155]. - The average training hours per employee reached 32.8 hours in 2023, reflecting the company's commitment to employee development[156]. Shareholder Communication and Dividends - The company proposed a final dividend of RMB 1.65 per share for the year ended December 31, 2023, totaling RMB 3,413.62 million (tax included) based on the total number of shares issued as of the report date[120]. - The company has established a shareholder communication policy to ensure that shareholder opinions and concerns are properly addressed and reviewed regularly[115]. - The company actively expanded investor communication channels through various formats, including performance briefings and investor reception days, ensuring effective interaction with investors[115]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to enhance its ESG initiatives, having been listed in the "Top 20 ESG Excellence" at the 2023 International Climate Summit[71]. - The company has implemented detailed internal rules regarding environmental protection and has not incurred any additional costs due to environmental compliance as of December 31, 2023[122].

Financial Performance - For Q1 2024, the total operating revenue was RMB 1,880.72 million, a decrease of 9.45% compared to the same period last year[2] - The net profit attributable to shareholders was RMB 230.83 million, reflecting a slight increase of 0.33% year-on-year[2] - The gross profit margin for the main business was 32.70%, an increase of 3.95 percentage points compared to the previous year[4] - Basic earnings per share for the period were RMB 1.1158, a 0.33% increase from RMB 1.1121 in the previous year[2] - The weighted average return on net assets decreased by 0.44 percentage points to 4.20%[2] Assets and Equity - Total assets at the end of the reporting period were RMB 8,025.44 million, up 1.76% from the beginning of the period[3] - Shareholders' equity attributable to the company was RMB 5,615.41 million, an increase of 4.31% from the beginning of the period[3] Business Operations - The company’s offline business has been recovering, leading to an improved sales structure[4] Data and Risks - The financial data presented are preliminary and may differ from the final report[5] - Investors are advised to pay attention to investment risks associated with the preliminary data[5]

Business Expansion and Development - In 2023, the company opened the Sanya International Duty Free City C Zone, becoming the world's first standalone travel retail plaza specializing in fragrance products[11]. - The company successfully won the operating rights for duty-free shops at Tianjin Binhai International Airport and three outbound duty-free shops in Yunnan, further consolidating its channel advantages in major domestic airports and ports[11]. - The company obtained the operating rights for duty-free shops at Siem Reap Angkor International Airport in Cambodia and opened operations, as well as winning the rights for the Changi Airport boutique store in Singapore[11]. - The company is advancing the Sanya International Duty Free City Phase III project in collaboration with Swire Properties, which is expected to enhance long-term development[11]. - The company is focused on becoming a world-class travel retail operator, optimizing its business layout[11]. - The company is actively supporting the construction of Hainan Free Trade Port and has made progress on several key projects, including the Sanya International Duty-Free City[21]. - The company plans to expand its market presence by entering three new international markets by the end of 2024, aiming for a 10% market share in each[60]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 1 billion RMB allocated for potential targets[32]. Financial Performance - In 2023, the company achieved a revenue of RMB 67,540 million, an increase of RMB 13,107 million (24.1%) compared to RMB 54,433 million in 2022[13]. - The gross profit for 2023 was RMB 20,853 million, up by RMB 5,993 million (40.3%) from RMB 14,860 million in 2022, resulting in a gross margin of 30.88%[13]. - Net profit attributable to equity shareholders was RMB 6,790 million, an increase of RMB 1,676 million (32.8%) from RMB 5,114 million in 2022, with a net profit margin of 10.05%[13]. - The company’s total assets reached RMB 78,662 million, an increase of RMB 3,043 million (4.0%) from RMB 75,619 million in 2022[14]. - The total liabilities decreased to RMB 19,688 million, down by RMB 2,092 million (9.6%) from RMB 21,780 million in 2022[14]. - Cash and cash equivalents increased to RMB 31,752 million, up by RMB 5,990 million (23.2%) from RMB 25,762 million in 2022[14]. - The equity-to-debt ratio improved to 33.38%, a decrease of 7.07 percentage points from 40.45% in 2022[14]. - The company reported a significant increase in revenue, achieving a total of 29 billion RMB for the fiscal year 2023, representing a year-on-year growth of 15%[60]. - The company has set a future revenue guidance of 35 billion RMB for the next fiscal year, anticipating a growth rate of approximately 20%[62]. Customer Engagement and Marketing - The company expanded its membership base to over 32 million members, utilizing AI analysis for targeted promotions[12]. - The company launched over 30 promotional events, including the Hainan offshore duty-free shopping festival, enhancing the quality and convenience of its services[11]. - The company has integrated online business operations and enhanced digital capabilities, launching a big data platform for unified member data management[20]. - User data indicates a rise in active customers, with a total of 5 million new users acquired in the last quarter, marking a 20% increase compared to the previous quarter[61]. - The company reported a 30% increase in online sales, driven by enhanced digital marketing strategies and improved e-commerce platforms[60]. Corporate Governance and Compliance - The company received an A rating for corporate governance from the Shanghai Stock Exchange for eight consecutive years, reflecting its commitment to transparency and accountability[32]. - The company has adopted the standard code of conduct for securities trading as per the Hong Kong Listing Rules Appendix C3, ensuring compliance among directors and supervisors[73]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[76]. - The company has implemented a system for monitoring securities trading by directors and supervisors to prevent insider trading during blackout periods[73]. - The company emphasizes the importance of ESG management, integrating it into its long-term development strategy[93]. Risk Management - The company has established a comprehensive risk management system, including the development of risk classification and a risk warning indicator system, enhancing risk prevention and management capabilities[98]. - The company conducts annual risk assessments to evaluate potential risks for the following year, focusing on the top 10 identified risks and developing response plans[99]. - The audit and risk management committee oversees the company's financial reporting processes and internal control systems[100]. - The company has implemented strict monitoring procedures to ensure the confidentiality of internal data and compliance with information disclosure regulations[101]. Social Responsibility and Community Engagement - The company invested RMB 13.37 million in support funds for rural revitalization efforts during the year[12]. - The group made donations totaling RMB 13.37 million during the reporting period, with RMB 13.31 million allocated to support Yunnan Province's Menglian and Ximeng counties, and RMB 60,000 donated by a subsidiary to Fuxu Village in Hainan Province[173]. Future Outlook - In 2024, the company aims to enhance its global competitiveness in the tourism retail sector, focusing on high-quality development[12]. - The company anticipates that domestic tourism will exceed 6 billion trips and generate RMB 6 trillion in revenue in 2024, recovering to or surpassing 2019 levels[28]. - The company plans to utilize the remaining unutilized net proceeds by the end of 2027, focusing on domestic channel consolidation, overseas channel expansion, supply chain efficiency improvement, and digital technology upgrades[126][127].

Financial Performance - For the third quarter of 2023, the company achieved a revenue of RMB 14.979 billion, representing a year-on-year growth of 27.87%[2] - The net profit attributable to shareholders for the third quarter was RMB 1.341 billion, showing a significant year-on-year increase of 94.22%[2] - In the first three quarters of 2023, the company reported a total revenue of RMB 50.837 billion, which is a 29.14% increase compared to the same period last year[2] - The company's operating revenue for the nine months ended September 30, 2023, was RMB 14,978,524,786.43, representing a year-on-year increase of 27.87%[7] - Net profit attributable to shareholders for the same period was RMB 1,340,639,136.96, a significant increase of 94.22% compared to the previous year[9] - The basic and diluted earnings per share for the current period were both RMB 0.6480, reflecting an increase of 86.53% year-on-year[9] - Net profit attributable to shareholders of the parent company for the first three quarters of 2023 was RMB 5,423,157,058.16, slightly down from RMB 5,521,184,312.87 in the same period of 2022, reflecting a decrease of approximately 1.8%[16] - The total comprehensive income for the first three quarters of 2023 was RMB 5,908,745,924.37, compared to RMB 6,796,330,048.70 in 2022, reflecting a decrease of about 13.1%[17] Operational Efficiency - The gross profit margin for the main business improved to 34.27% in the third quarter of 2023, up from 28.75% in the first quarter[2] - The net cash flow from operating activities for the nine months was RMB 13,442,904,588.11, indicating a substantial increase due to improved gross margins and cost efficiency[9] - The company has focused on enhancing revenue management and innovative cost control strategies, contributing to the significant profit growth[9] - Operating cash flow for the first three quarters of 2023 reached RMB 13.44 billion, a significant improvement from a negative RMB 4.01 billion in the same period of 2022, indicating a turnaround in operational efficiency[19] - Total cash inflow from operating activities was RMB 55.17 billion, compared to RMB 43.88 billion in the first three quarters of 2022, reflecting a year-over-year increase of approximately 25.8%[19] - Cash outflow from operating activities decreased to RMB 41.72 billion from RMB 47.89 billion in the previous year, representing a reduction of about 12.5%[19] Asset and Equity Management - The total assets as of September 30, 2023, amounted to RMB 79,181,916,251.95, up 4.31% from the end of the previous year[10] - The company's total equity attributable to shareholders increased to RMB 52,611,941,210.35, an 8.31% rise from the previous year[7] - Total equity attributable to shareholders of the parent company increased to RMB 52,611,941,210.35 as of September 30, 2023, up from RMB 48,573,400,985.54 at the end of 2022, marking an increase of approximately 8.4%[13] Cash Flow and Investments - The cash and cash equivalents as of September 30, 2023, were RMB 33,862,446,628.19, compared to RMB 26,891,700,248.67 at the end of 2022[10] - The company reported a cash and cash equivalents balance of RMB 33.85 billion at the end of September 2023, up from RMB 23.27 billion at the end of September 2022, marking an increase of approximately 45.4%[21] - Net cash flow from investing activities was negative RMB 2.09 billion, slightly improved from negative RMB 2.17 billion in the same period last year, indicating a stabilization in investment expenditures[20] - Cash flow from financing activities showed a net outflow of RMB 3.66 billion, a significant decline from a net inflow of RMB 12.11 billion in the first three quarters of 2022, suggesting a shift in financing strategy[20] Member Engagement and Business Expansion - The total number of members reached over 30 million, indicating a strong focus on enhancing member engagement and value[2] - The company opened the second phase of the duty-free shop at Sanya Phoenix Airport, further expanding its duty-free business layout[2] - The company has implemented a new policy for immediate pickup and guarantee pickup to enhance consumer service capabilities[2] - The company is actively optimizing its product structure and business layout, focusing on high-margin products in online channels[2] - The company has strengthened procurement and inventory management to improve operational efficiency and reduce procurement cycles[2] Tax and Employee Compensation - The company paid RMB 4.16 billion in taxes during the first three quarters of 2023, a decrease from RMB 7.75 billion in the same period of 2022, indicating improved tax efficiency[19] - Cash paid to employees increased to RMB 2.29 billion from RMB 1.85 billion year-over-year, reflecting a rise of about 23.9% in employee compensation[19]