Group 1 - Goldman Sachs has downgraded the earnings per share forecast for China Duty Free Group (01880) by 12% to 13% for the years 2025 to 2027 due to weakened sales momentum in online channels [1] - The target price for A-shares remains at 59 RMB, while the target price for H-shares has been raised from 46.2 HKD to 51.3 HKD, narrowing the discount between A and H shares to 20% from 30% [1] - The company reported a 20% year-on-year decline in net profit for the first half of the year, amounting to 2.6 billion RMB, with a significant drop in the second quarter's net profit to 662 million RMB, down 32% year-on-year [1] Group 2 - The implementation of the free trade port policy in Hainan may expand market size by attracting more consumers, but it also poses a risk of increased competition as brand owners may establish their own stores [2] - The company is transitioning from being a pure duty-free operator to a platform operator that provides retail space, indicating a strategic shift in its business model [2]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 68 per H-share [1][6]. Core Insights - The company is expected to experience a decline in net profit for the first half of 2025, with a forecasted decrease of 20.8% year-on-year. Total revenue for the same period is projected to be RMB 28.15 billion, down 10% year-on-year [6][8]. - The second quarter of 2025 is anticipated to show a revenue of RMB 11.4 billion, reflecting an 8.5% decline year-on-year, and a net profit of RMB 660 million, down 32.2% year-on-year. This performance is below expectations [6][8]. - The company is expected to benefit from the recovery of cross-border flights and the improvement of airport duty-free store operations in the second half of 2025, with a projected increase in market share in Hainan [8]. Financial Summary - The company’s net profit for 2025 is estimated at RMB 45.21 billion, with a year-on-year growth of 6%. The earnings per share (EPS) is projected to be RMB 2.19 [7][8]. - The price-to-earnings (P/E) ratio for H-shares is expected to be 24 times for 2025, decreasing to 19 times by 2027 [7][8]. - The company’s revenue is projected to grow from RMB 61.38 billion in 2025 to RMB 74.87 billion by 2027 [11]. Market Position and Strategy - The company is focusing on expanding its presence in the Hainan market, which is expected to improve as the Hainan Free Trade Port is set to officially close on December 18, 2025. This is anticipated to enhance local economic vitality and benefit the company's operations [8]. - The company plans to open multiple new city duty-free stores throughout the year, further enhancing its operational layout [8].

Core Viewpoint - The tourism industry is experiencing a rise in activity, yet China Duty Free Group (601888.SH) continues to face operational challenges, with significant declines in revenue and profit for the first half of 2025 [1][2][3]. Financial Performance - In the first half of 2025, the company reported approximately 28.15 billion yuan in revenue, a year-on-year decrease of about 10% [1][3]. - The net profit attributable to shareholders was around 2.6 billion yuan, reflecting a decline of over 20% compared to the previous year [1][3]. - The second quarter saw a net profit of approximately 662 million yuan, marking a decline of over 30%, the lowest level since 2018 [2][4][6]. Revenue Breakdown - The company's revenue for the second quarter was approximately 11.41 billion yuan, down 8.45% year-on-year [4]. - The first quarter revenue was reported at 16.75 billion yuan, a decrease of 10.96% year-on-year [3][4]. - The overall performance in the first half of 2025 indicates a continuous decline in both revenue and net profit, with the second quarter showing a more pronounced drop [5][7]. Market Position and Strategy - China Duty Free Group maintains a strong position in the Hainan duty-free market, with a market share increase of nearly 1 percentage point [9]. - The company plans to accelerate its strategic transformation and expand its "duty-free+" boundaries, focusing on innovation in its own health brand [10][14]. - The competitive landscape is intensifying, with the company facing challenges from increased competition and changing consumer preferences [12][13]. Historical Context - Since its listing in 2009, the company has shown significant growth, with peak revenues and profits in 2021, but has since experienced a notable decline [10][11]. - The stock price has dropped over 80% from its peak of 403.78 yuan per share in 2021, with a current market capitalization of approximately 140.8 billion yuan [11][12]. Financial Health - As of the end of the first quarter of 2025, the company had substantial cash reserves of 39.68 billion yuan and low interest-bearing debt of 4.62 billion yuan [15].

Group 1 - Longfor Group is launching its first commercial complex in Xiaoshan, Hangzhou, with a total commercial area of 97,000 square meters, expected to open in 2029 [1] - Link REIT's CEO, Wang Guolong, will step down by the end of June 2026, and the board will initiate a search for his successor [1] - The Beijing government is promoting a summer and National Day film viewing event with a total subsidy exceeding 10 million yuan, covering over 270 cinemas [1] Group 2 - China Duty Free Group's stock surged, with A-shares hitting a limit up at 70.84 yuan per share, following the announcement of Hainan Free Trade Port's closure on December 18, 2025 [1] - The Hainan Free Trade Zone and duty-free sectors experienced a collective surge in stock prices, with several companies reaching their daily price limits [1] Group 3 - The Taihe Building in Shanghai was successfully auctioned for 659.7 million yuan, with an assessed value of approximately 942.4 million yuan [3] - The building has a total area of 25,471 square meters, with an operational above-ground area of 18,275 square meters, translating to a unit price of about 36,098 yuan per square meter [3]

Financial Performance Summary - Total operating revenue for the first half of 2025 was CNY 2,815,075 million, a decrease of 9.96% compared to the same period last year [1] - Operating profit decreased by 18.20% to CNY 370,798.85 million from CNY 453,279.27 million [1] - Total profit fell by 19.21% to CNY 366,347.92 million from CNY 453,482.72 million [1] - Net profit attributable to shareholders decreased by 20.81% to CNY 259,975.29 million from CNY 328,289.65 million [1] - Basic earnings per share dropped by 20.81% to CNY 1.2566 from CNY 1.5868 [1] - The weighted average return on equity decreased to 4.65% from 5.97% [1] Asset and Equity Overview - Total assets at the end of the reporting period were CNY 7,515,202.79 million, a decrease of 1.45% from CNY 7,626,037.37 million at the beginning of the period [1] - The equity attributable to shareholders remained unchanged with a share capital of 206,885.90 million shares [1] Business Strategy and Market Position - The company is focusing on expanding its "duty-free+" boundaries while enhancing its core duty-free business [1] - The company has strengthened its market position in Hainan, with a market share increase of nearly 1 percentage point year-on-year [1] - Inventory turnover rate improved by 10% year-on-year, indicating enhanced operational efficiency [1] - Future strategies include strengthening strategic leadership, promoting strategic transformation, and driving innovation for high-quality development [1]

[I. Major Financial Data and Indicators for the Six Months Ended June 30, 2025 (the "Reporting Period")](index=1&type=section&id=I.%20Major%20Financial%20Data%20and%20Indicators%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20(the%20%22Reporting%20Period%22)) This section presents the company's key financial data and indicators for the first half of 2025, covering income statement and balance sheet figures [1.1 Income Statement Data](index=1&type=section&id=1.1%20Income%20Statement%20Data) The company experienced year-over-year declines in total operating revenue, operating profit, net profit, and basic earnings per share for the first half of 2025 | Item | Current Period (RMB 10,000) | Prior Period (RMB 10,000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 2,815,075.00 | 3,126,499.84 | -9.96 | | Operating Profit | 370,798.85 | 453,279.27 | -18.20 | | Total Profit | 366,347.92 | 453,482.72 | -19.21 | | Net Profit Attributable to Shareholders of the Listed Company | 259,975.29 | 328,289.65 | -20.81 | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | 259,324.91 | 323,770.03 | -19.90 | | Basic Earnings Per Share (RMB) | 1.2566 | 1.5868 | -20.81 | | Weighted Average Return on Net Assets (%) | 4.65 | 5.97 | Decreased by 1.32 percentage points | [1.2 Balance Sheet Data](index=2&type=section&id=1.2%20Balance%20Sheet%20Data) As of the end of the first half of 2025, total assets slightly decreased, while equity attributable to shareholders and net assets per share saw minor increases | Item | End of Current Period (RMB 10,000) | Beginning of Current Period (RMB 10,000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,515,202.79 | 7,626,037.37 | -1.45 | | Total Equity Attributable to Shareholders of the Listed Company | 5,519,857.98 | 5,509,670.56 | 0.18 | | Share Capital (10,000 shares) | 206,885.90 | 206,885.90 | 0.00 | | Net Assets Per Share Attributable to Shareholders of the Listed Company (RMB) | 26.6807 | 26.6314 | 0.19 | - The above data is prepared based on consolidated financial statements[7](index=7&type=chunk) [II. Explanation of Operating Performance and Financial Condition](index=2&type=section&id=II.%20Explanation%20of%20Operating%20Performance%20and%20Financial%20Condition) Despite performance pressure, the company is accelerating strategic transformation, deepening duty-free business, expanding 'duty-free+' boundaries, and improving operational efficiency - The company is accelerating strategic transformation, deepening its duty-free business, actively expanding the "duty-free+" boundary, and driving innovation in its own brands through exclusive, first-launch, and co-branded custom products[8](index=8&type=chunk) - Hainan offshore duty-free sales show a stabilizing trend, with the company's market share increasing by nearly **1 percentage point** year-on-year, solidifying its dominant position in the Hainan market[8](index=8&type=chunk) - The company's operational efficiency continues to improve, with inventory turnover increasing by **10%** year-on-year[8](index=8&type=chunk) - The next steps involve continuously strengthening strategic guidance, advancing strategic transformation, and promoting corporate reform and innovation through business layout adjustments to achieve high-quality development[8](index=8&type=chunk) [III. Risk Warning](index=2&type=section&id=III.%20Risk%20Warning) The disclosed financial data for the first half of 2025 are preliminary and unaudited, requiring investors to exercise caution - The major financial data for the first half of 2025 are preliminary and unaudited by an accounting firm[9](index=9&type=chunk) - Specific data will be subject to the company's 2025 interim report, and investors are advised to be aware of investment risks[9](index=9&type=chunk) [IV. Supplementary Information to the Annual Report](index=3&type=section&id=IV.%20Supplementary%20Information%20to%20the%20Annual%20Report) This section provides supplementary disclosure of supervisors' remuneration from 2022 to 2024, as required by listing rules - Supplementary information on supervisors' remuneration from 2022 to 2024 is provided in accordance with disclosure requirements of paragraphs 24 and 24.4 of Appendix D2 to the Listing Rules[10](index=10&type=chunk) 2022-2024 Supervisors' Remuneration (RMB Thousand) | Year | Supervisor | Salaries and Allowances | Discretionary Bonus | Retirement Scheme Contributions | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **2024** | Ms. Li Hui | 787 | 351 | 173 | 1,311 | | | Ms. Dou Xiaoqiong | 787 | 438 | 173 | 1,398 | | **2023** | Ms. Li Hui | 802 | 935 | 170 | 1,907 | | | Ms. Dou Xiaoqiong | 812 | 815 | 170 | 1,797 | | **2022** | Ms. Li Hui | 834 | 746 | 156 | 1,736 | | | Ms. Dou Xiaoqiong | 888 | 595 | 156 | 1,639 | *Note: Mr. Liu Defu, Chairman of the Supervisory Committee, received no remuneration in any of the years* - The supplementary information does not affect other data contained in the annual report, and all other data remain unchanged[11](index=11&type=chunk)

证券代码：601888 证券简称：中国中免 公告编号：临2025-022 中国旅游集团中免股份有限公司 2025年半年度业绩快报公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 本公告所载2025年半年度主要财务数据为初步核算数据，未经会计师事务所 审计，具体数据以中国旅游集团中免股份有限公司（以下简称"公司"）2025 年半年度报告中披露的数据为准，提请投资者注意投资风险。 三、风险提示 | 项目 | 本报告期 | 上年同期 | 增减变动幅度 | | --- | --- | --- | --- | | | | | （%） | | 营业总收入 | 2,815,075.00 | 3,126,499.84 | -9.96 | | 营业利润 | 370,798.85 | 453,279.27 | -18.20 | | 利润总额 | 366,347.92 | 453,482.72 | -19.21 | | 归属于上市公司股东的净利润 | 259,975.29 | 328,289.65 | -20.81 | | 归属于上市公司股东的 ...

Group 1: Market Overview - The Hang Seng Index fell by 1.11%, down 284 points, closing at 25,383 points, while the Hang Seng Tech Index dropped by 1.69% [1] - The early trading volume in Hong Kong stocks reached 151 billion HKD [1] Group 2: Medical Sector - Medical device stocks rose in early trading, with the national drug procurement policy indicating a move away from internal competition, leading institutions to view this as a turning point for the industry [1] - Aikang Medical (01789) increased by 7.93%, and Weigao Group (01066) rose by 4.37% [1] - Yongsheng Medical (01612) saw a surge of over 27% following a profit warning, with sales orders increasing and expected mid-term net profit growth exceeding 50% year-on-year [2] - CRO concept stocks continued to rise, with Citigroup noting that the CXO sector is gaining market attention ahead of earnings season [2] - Kanglong Chemical (300759) (03759) rose by 8.4%, while Zhaoyan New Drug (603127) (06127) increased by 5.7%, and WuXi Biologics (02269) rose by 4.5% [2] Group 3: Consumer Sector - Nongfu Spring (09633) increased by over 3.56%, reaching a three-and-a-half-year high, with institutions expecting the company's first-half revenue growth to exceed market expectations [3] Group 4: Other Notable Stocks - Jihong Co., Ltd. (002803) (02603) rose by 16%, with two main business segments performing well, and expected first-half net profit growth of up to 65% [4] - China Merchants Port (01199) increased by over 4%, following reports that China Merchants Group plans to acquire assets from Cheung Kong Ports [5] - Guichuang Tongqiao (02190) rose by 2.6%, with expected mid-term net profit growth of 66.9%, as the company embraces procurement and actively expands overseas [6] Group 5: Lithium and Duty-Free Sector - News of supply disruptions in the lithium market led to Tianqi Lithium (002466) (09696) rising by 3.6% [7] - China Duty Free Group (601888) (01880) fell by over 6%, with pending details on Hainan's duty-free policies, and institutions noting that the closure operations have a dual impact on offshore duty-free business [7] Group 6: Technology Sector - Qianxun Technology (01640) fell by over 3%, having retreated 23% from its previous high, with recent comments from Yu Weiwen emphasizing the need to avoid excessive speculation on stablecoins [8]

Summary of Hainan Free Trade Port Conference Records Industry Overview - The conference focuses on the Hainan Free Trade Port (FTP) and its implications for the duty-free industry and related businesses [1][2][4]. Key Points and Arguments 1. **Hainan FTP Closure Date**: The Hainan FTP is set to officially close on December 18, 2025, aligning with market expectations [1][2]. 2. **Expansion of Zero Tariff Goods**: The range of zero-tariff goods will increase from 1,900 to 6,600 items, covering 74% of all goods [1][2]. 3. **Continued Duty-Free Shopping Policy**: The Ministry of Finance confirmed the continuation of the offshore duty-free shopping policy, alleviating concerns regarding duty-free licenses [1][6]. 4. **Changes in Tax Management**: Post-closure, tax management will shift from a positive list to a negative list approach, simplifying import processes [1][8]. 5. **Limited Impact on Consumers**: The ongoing duty-free shopping policy means limited impact on consumers, as the current 100,000 yuan shopping limit provides ample space [1][9]. 6. **Manufacturing and Foreign Trade Benefits**: The negative list management will enhance competitiveness for manufacturing and foreign trade enterprises [1][10]. 7. **Stable Competitive Landscape for Duty-Free Industry**: The closure policy's impact on the duty-free industry is expected to be limited, with a stable competitive landscape for leading companies like China Duty Free Group (CDFG) [1][11]. 8. **Mature Commercial Layout**: The commercial layout in Hainan is mature, making it challenging for new entrants to achieve high investment returns [1][12]. 9. **CDFG's Competitive Advantage**: CDFG holds a significant competitive advantage in Hainan, with key projects in Haikou and Sanya, and is expected to perform well in line with economic cycles [1][13]. 10. **Other Companies in Hainan**: Besides CDFG, other companies like Wangfujing and local firms are also establishing a presence in Hainan, contributing to the region's commercial landscape [1][14]. Additional Important Content - The conference reiterated existing policies and discussed potential tax reforms, indicating a proactive approach to support the FTP's development [4][6]. - The research on tax policies for island residents is ongoing, with potential future developments in the "island resident duty-free" policy [7].

Group 1 - On July 24, 2025, SMIC (00981), Alibaba-W (09988), and Tencent Holdings (00700) ranked as the top three companies by trading volume in the southbound trading of the Stock Connect, with trading volumes of 4.395 billion, 3.061 billion, and 2.944 billion respectively [1] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Tencent Holdings (00700), SMIC (00981), and Alibaba-W (09988) also ranked as the top three, with trading volumes of 2.138 billion, 1.961 billion, and 1.635 billion respectively [1] Group 2 - In the southbound trading of the Stock Connect, the top active companies included SMIC (00981) with a trading amount of 4.395 billion and a net buy of -0.684 billion, Alibaba-W (09988) with a trading amount of 3.061 billion and a net buy of -0.373 billion, and Tencent Holdings (00700) with a trading amount of 2.944 billion and a net buy of +0.381 billion [2] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Tencent Holdings (00700) had a trading amount of 2.138 billion with a net buy of +0.158 billion, SMIC (00981) had a trading amount of 1.961 billion with a net buy of +0.667 billion, and Alibaba-W (09988) had a trading amount of 1.635 billion with a net buy of +0.178 billion [2]