Summary of China Tourism Group Duty Free Conference Call Company Overview - **Company**: China Tourism Group Duty Free (601888.SS, 601888 CG) - **Industry**: Consumer (China/Hong Kong) - **Market Cap**: Rmb149,440 million - **Stock Rating**: Equal-weight - **Price Target**: Rmb66.00, with a downside of 10% from the current price of Rmb73.10 as of October 30, 2025 Key Financial Highlights - **3Q25 Revenue**: Rmb11,405 million, flat year-over-year (yoy) after six consecutive quarters of decline [8][9] - **Net Profit**: Declined 29% yoy to Rmb662 million, impacted by higher finance costs and selling expenses [8][9] - **Gross Profit Margin (GPM)**: Remained stable at 32.0% [8] - **Dividends**: Declared a dividend per share (DPS) of Rmb0.25, representing 17% of the net profit for the first nine months of 2025 [8] Operational Insights - **Sales Recovery**: Hainan's offline duty-free market sales showed signs of stabilization with a 3% growth in September 2025 [8] - **Sales Channels**: Improvement in airport and online sales contributed to the sequential revenue growth compared to 2Q25, which saw an 8% decline yoy [8] Future Outlook - **Key Focus**: Recovery of the Hainan business is critical for profitability and valuation [8] - **Monitoring Demand**: The company is closely observing demand trends in 4Q25, especially in light of policy relaxations and developments in free-trade ports [8] Valuation and Risks - **Valuation Methodology**: A 20% discount is applied to the A-share valuation, suggesting a 2026 estimated P/E of 20x [9] - **Risks to Upside**: Favorable policy outcomes for Hainan Free Trade Zone and increased consumer spending, particularly in beauty products [12][13] - **Risks to Downside**: Economic slowdown, price competition, and insufficient supply of luxury products [12][13] Conclusion - The company is experiencing a stabilization in revenue after a prolonged decline, but net profit continues to face challenges. The recovery of the Hainan market and consumer spending trends will be pivotal for future performance. The current valuation reflects cautious optimism amid ongoing economic uncertainties.

Group 1 - The core viewpoint of the article highlights the positive market reaction to the new policy supporting duty-free shops in China, which is expected to boost consumption and sales of domestic products [1] - As of the report, China Duty Free Group (中国中免) saw its stock price increase by 4.12%, reaching HKD 65.75, with a trading volume of HKD 130 million [1] - The new policy, effective from November 1, aims to optimize the management of domestic tax refund (exemption) policies and encourage duty-free shops to sell more high-quality domestic products that reflect Chinese traditional culture [1] Group 2 - For the first three quarters of 2025, China Duty Free Group reported a revenue of CNY 39.862 billion, a year-on-year decrease of 7.34% [1] - The net profit attributable to shareholders for the same period was CNY 3.052 billion, down 22.13% year-on-year [1] - The company announced its first interim dividend plan, proposing a cash dividend of CNY 0.25 per share (before tax), totaling CNY 517 million, which represents 16.95% of the net profit attributable to shareholders for the first three quarters of 2025 [1]

Core Viewpoint - The duty-free concept is rapidly gaining strength, with notable stock performances from companies like Hainan Airlines Group and China Duty Free Group following the announcement of new policies aimed at boosting consumption in the duty-free sector [1] Group 1: Market Performance - Hainan Airlines Group has seen a stock increase with two consecutive trading limits reached in three days [1] - China Duty Free Group's stock rose nearly 5% in response to the news [1] - Other companies such as Wangfujing and Hainan Airport also experienced stock price increases [1] Group 2: Policy Announcement - The Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Taxation Administration issued a notification to improve duty-free store policies [1] - The new policy is set to take effect on November 1, 2025, and aims to enhance the role of duty-free stores in stimulating consumption [1] - The initiative is designed to guide the return of overseas consumption and promote the healthy and orderly development of duty-free retail business [1]

Core Insights - The company reported a total revenue of 39.862 billion yuan for Q3 2025, a decrease of 3.158 billion yuan compared to the same period last year, representing a year-on-year decline of 7.34% [1] - The net profit attributable to shareholders was 3.052 billion yuan, down by 0.867 billion yuan from the same period last year, reflecting a year-on-year decrease of 22.13% [1] - The net cash inflow from operating activities was 3.388 billion yuan, which is a reduction of 1.716 billion yuan compared to the same period last year, marking a year-on-year decline of 33.62% [1] Financial Ratios - The latest debt-to-asset ratio stands at 18.34%, a decrease of 0.27 percentage points from the previous quarter and a reduction of 2.34 percentage points from the same period last year [3] - The gross profit margin is reported at 32.54%, down by 0.22 percentage points from the previous quarter and down by 0.58 percentage points year-on-year [3] - The return on equity (ROE) is 5.48%, which is a decrease of 1.75 percentage points compared to the same period last year [3] Earnings and Turnover - The diluted earnings per share (EPS) is 1.48 yuan, a decrease of 0.42 yuan from the same period last year, reflecting a year-on-year decline of 22.13% [4] - The total asset turnover ratio is 0.53 times, down by 0.03 times compared to the same period last year, representing a year-on-year decline of 5.71% [4] - The inventory turnover ratio is 1.56 times, which is an increase of 0.11 times year-on-year, marking a 3-year consecutive increase with a year-on-year rise of 7.45% [4] Shareholder Structure - The number of shareholders is reported at 309,300, with the top ten shareholders holding a total of 1.36 billion shares, accounting for 65.74% of the total share capital [4] - The largest shareholder is China Tourism Group Co., Ltd., holding 50.30% of the shares [4]

智通财经APP讯，中国中免(601888.SH)发布2025年三季度报告，前三季度，公司实现营业收入398.62亿 元，同比下降7.34%。归属于上市公司股东的净利润30.52亿元，同比下降22.13%。归属于上市公司股东 的扣除非经常性损益的净利润30.36亿元，同比下降21.60%。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或倚賴 該等內容而引致之任何損失承擔任何責任。 China Tourism Group Duty Free Corporation Limited 中國旅遊集團中免股份有限公司 （一家於中華人民共和國註冊成立的股份有限公司） （股份代號：1880） 建議取消監事會並修訂《公司章程》《公司股東大會議事規則》 《公司董事會議事規則》及《公司獨立董事制度》 本公告由中國旅遊集團中免股份有限公司（「本公司」）根據香港聯合交易所有限公 司證券上市規則第13.51(1)條的規定作出。 本公司董事會（「董事會」）謹此宣佈，經2025年10月30日召開的第五屆董事會第 二十六次會議審議通過，為進一步完善公司治理，促進本公司規範運作，根據 《中華人民共和國公司法（2023年修訂）》、中國證券監督管理委員會《關於新<公 司法>配套制度規則實施相關過渡期安排》、《上市公司章程指引（2025年修訂）》、 《上市公司股東會規則（2025年修訂）》等法律法規和規範性文件的規定，並 ...

Core Viewpoint - China Duty Free Group (01880) reported a decline in revenue and net profit for the first three quarters of 2025, indicating challenges in the duty-free market despite ongoing strategic innovations and consumer engagement efforts [1] Financial Performance - The company achieved operating revenue of 39.862 billion yuan, a year-on-year decrease of 7.34% [1] - The net profit attributable to shareholders was 3.052 billion yuan, down 22.13% year-on-year [1] - Basic earnings per share stood at 1.4752 yuan [1] Strategic Initiatives - The company continues to focus on its duty-free business while deepening the "product + scene + service" innovation model to adapt to changing consumer demands [1] - In the Hainan region, stores are enhancing the integration of "duty-free + cultural tourism" to create a robust first-store matrix [1] - Notable initiatives include the introduction of the first national exhibition of Pop Mart's DIMOO "Natural Shapes" theme and the first Disney pop-up store in Sanya [1] Market Trends - Hainan's monthly sales for offshore duty-free shopping saw a year-on-year increase of 3.4% as of September 2025, marking a return to positive growth for the first time in nearly 18 months [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 China Tourism Group Duty Free Corporation Limited 中國旅遊集團中免股份有限公司 （一家於中華人民共和國註冊成立的股份有限公司） （股份代號：1880） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而作出。 茲載列中國旅遊集團中免股份有限公司在上海證券交易所網站刊登的《中國旅遊 集團中免股份有限公司2025年前三季度利潤分配方案公告》，僅供參閱。 特此公告。 承董事會命 中國旅遊集團中免股份有限公司 董事會主席 中国旅游集团中免股份有限公司 2025年前三季度利润分配方案公告 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。 重要内容提示： 范雲軍先生 中國•北京 2025年10月30日 於本公告日期，董事會成員包括非執行董事范雲軍先生及劉昆女 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 China Tourism Group Duty Free Corporation Limited 中國旅遊集團中免股份有限公司 （一家於中華人民共和國註冊成立的股份有限公司） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而作出。 茲載列中國旅遊集團中免股份有限公司在上海證券交易所網站刊登的《中國旅遊 集團中免股份有限公司第五屆監事會第十三次會議（現場結合通訊方式）決議公 告》，僅供參閱。 特此公告。 承董事會命 中國旅遊集團中免股份有限公司 董事會主席 范雲軍先生 中國•北京 2025年10月30日 於本公告日期，董事會成員包括非執行董事范雲軍先生及劉昆女士，執行董事常 築軍先生、王月浩先生及王軒先生及獨立非執行董事葛明先生、王瑛女士及王強 先生。 证券代码：601888 证券简称：中国中免 公告编号：临2025-029 中国旅游集团中免股份有限公司 第五届监事会第十三 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 China Tourism Group Duty Free Corporation Limited 中國旅遊集團中免股份有限公司 （一家於中華人民共和國註冊成立的股份有限公司） （股份代號：1880） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而作出。 茲載列中國旅遊集團中免股份有限公司在上海證券交易所網站刊登的《中國旅遊 集團中免股份有限公司第五屆董事會第二十六次會議（現場結合通訊方式）決議公 告》，僅供參閱。 特此公告。 承董事會命 中國旅遊集團中免股份有限公司 董事會主席 范雲軍先生 中國•北京 2025年10月30日 於本公告日期，董事會成員包括非執行董事范雲軍先生及劉昆女士，執行董事常 築軍先生、王月浩先生及王軒先生及獨立非執行董事葛明先生、王瑛女士及王強 先生。 证券代码：601888 证券简称：中国中免 公告编号：临 2025-028 中国旅游集团中免股份 ...