Core Insights - The global duty-free market experienced a slowdown last year, failing to return to pre-pandemic levels, with Hainan's offshore duty-free market also facing challenges due to various factors [1][2] Financial Performance - In Q1 2025, the company's operating income was RMB 16.75 billion, a year-on-year decline of 10.96% compared to RMB 18.81 billion in the same period last year [1][2] - The net profit attributable to shareholders was RMB 1.94 billion, down 15.98% from RMB 2.31 billion year-on-year [1][2] - The net cash flow from operating activities was RMB 4.80 billion, a decrease of 9.52% from RMB 5.30 billion in the previous year [1][2][5] Cost and Expense Management - The company's gross margin showed slight pressure, with operating costs decreasing by approximately 10.51%, which was slightly lower than the revenue decline [2] - Sales expenses were RMB 2.20 billion, down about 9.0% year-on-year, while management expenses were RMB 423 million, down about 11.0% [2] Asset and Equity Position - As of March 31, 2025, the total assets of the company reached RMB 80.46 billion, an increase of 5.51% from the beginning of the year, while equity attributable to shareholders was RMB 56.97 billion, up 3.40% [2] Inventory Management - The company's inventory balance at the end of the reporting period was RMB 15.75 billion, a decrease of approximately 9.21% from RMB 17.35 billion at the end of 2024 [3]

Financial Performance - The group's operating revenue for the first quarter of 2025 was RMB 16,746,050,116.23, a decrease of 10.96% compared to RMB 18,807,168,696.39 in the same period last year[5] - Net profit attributable to shareholders was RMB 1,937,854,243.40, down 15.98% from RMB 2,306,454,931.34 year-on-year[5] - Basic and diluted earnings per share were both RMB 0.9367, reflecting a decline of 15.98% from RMB 1.1148[5] - Total revenue for Q1 2025 was RMB 16,746,050,116.23, a decrease of 10.9% compared to RMB 18,807,168,696.39 in Q1 2024[15] - In Q1 2025, the operating profit was RMB 2,518,777,915.07, a decrease of 13.4% compared to RMB 2,908,342,158.40 in Q1 2024[16] - The net profit for Q1 2025 was RMB 2,055,785,045.68, down 15.6% from RMB 2,435,203,776.12 in Q1 2024[16] - Total comprehensive income for Q1 2025 was RMB 1,989,279,773.44, a decline of 18.6% from RMB 2,444,902,061.57 in Q1 2024[17] - Basic and diluted earnings per share for Q1 2025 were both RMB 0.9367, compared to RMB 1.1148 in Q1 2024, reflecting a decrease of 16%[17] Cash Flow - The net cash flow from operating activities decreased by 9.52%, amounting to RMB 4,796,979,888.31 compared to RMB 5,301,855,586.86 in the previous year[5] - Cash flow from operating activities in Q1 2025 was RMB 4,796,979,888.31, down 9.5% from RMB 5,301,855,586.86 in Q1 2024[18] - Cash inflow from operating activities totaled RMB 17,533,010,301.60, a decrease of 10% from RMB 19,479,675,572.83 in the previous year[18] - Cash outflow from operating activities was RMB 12,736,030,413.29, down 10.2% from RMB 14,177,819,985.97 in Q1 2024[18] - The net cash flow from investing activities was -RMB 257,075,174.83 in Q1 2025, an improvement from -RMB 418,523,186.44 in Q1 2024[19] - The net cash flow from financing activities was RMB 419,409,247.12 in Q1 2025, compared to -RMB 256,125,481.32 in Q1 2024, indicating a positive shift[19] - The ending cash and cash equivalents balance as of March 31, 2025, was RMB 39,645,949,676.26, an increase from RMB 36,299,634,567.48 at the end of Q1 2024[20] Assets and Liabilities - Total assets at the end of the reporting period were RMB 80,462,334,902.91, an increase of 5.51% from RMB 76,260,373,740.60 at the end of the previous year[5] - Total liabilities increased to RMB 17,542,386,009.83 as of March 31, 2025, up from RMB 15,312,036,850.03 as of December 31, 2024, reflecting a growth of 14.5%[14] - Non-current assets totaled RMB 20,687,437,920.30 as of March 31, 2025, an increase of 1.9% from RMB 20,299,935,210.56 as of December 31, 2024[12] - Long-term borrowings rose to RMB 3,233,561,026.15 as of March 31, 2025, up from RMB 2,567,047,228.16 as of December 31, 2024, marking a 26.0% increase[14] Shareholder Information - Shareholders' equity attributable to the parent company increased by 3.40% to RMB 56,967,607,780.59 from RMB 55,096,705,562.22[5] - The total number of ordinary shareholders was 302,747 as of the end of the reporting period[7] - The largest shareholder, China Tourism Group Co., Ltd., holds 50.30% of the shares, totaling 1,040,642,690 shares[8] Inventory and Expenses - The group reported a decrease in inventory, which stood at RMB 15,751,001,779.30, down from RMB 17,348,382,658.40[11] - Total operating costs for Q1 2025 were RMB 14,080,625,510.04, down 10.7% from RMB 15,772,875,379.76 in Q1 2024[15] - The company reported a decrease in research and development expenses to RMB 12,165,946.01 in Q1 2025 from RMB 355,002.40 in Q1 2024, reflecting a significant increase in investment in innovation[15] Government Subsidies - The company received government subsidies amounting to RMB 3,224,834.44, which are closely related to its normal business operations[6] Deferred Tax Assets - Deferred tax assets decreased to RMB 1,078,353,695.92 as of March 31, 2025, from RMB 1,204,425,069.30 as of December 31, 2024, a decline of 10.5%[12]

Group 1 - The recent policy changes regarding the departure tax refund system have positively impacted the stock prices of related companies, with notable increases in A-share and Hong Kong-listed companies [2][3] - The new policy, issued by multiple government departments, aims to enhance the departure tax refund experience by lowering the minimum refund threshold and increasing the cash refund limit, among other measures [4][5] - The policy changes are expected to significantly boost inbound tourism and consumption, with a projected 1.3 billion inbound tourists in 2024, reflecting a growth of over 60% year-on-year [5][6] Group 2 - Companies involved in the departure tax refund business have diversified, including direct operators like China Duty Free Group and Wangfujing, as well as logistics and technology providers like Lakala and SF Express [6] - The optimization of the departure tax refund policy is anticipated to drive growth in various sectors, including retail, tourism, and dining, benefiting companies that cater to inbound tourists [6][7] - Research indicates that the optimized departure tax refund policy will favor the retail sector, particularly department stores, and related industries such as hotels and restaurants, enhancing the overall consumer market [7]

Group 1 - The tourism market is experiencing a significant increase in activity as the "May Day" holiday approaches, with online hotel and flight searches rising sharply, indicating a peak in bookings [1][2] - Domestic travel bookings for the "May Day" holiday have more than doubled compared to the same period last year, with self-driving tours, free travel, and group tours showing particularly high growth [1] - The "May Day" holiday is characterized by three main trends: rapid growth in long-distance travel, a two-way increase in cross-border travel, and a resurgence in county-level tourism, contributing to structural growth in the tourism market [1][3] Group 2 - Ctrip's report indicates that the holiday travel consumption is marked by explosive growth in long-distance travel and a significant increase in inbound travel orders, which surged by 173% year-on-year [1][3] - The proportion of cross-city accommodation orders has exceeded 80%, with deep travel users planning to stay for two days or more expected to reach 20% [3] - Popular domestic destinations include traditional cities like Beijing and Shanghai, while emerging destinations such as Taiyuan and Yining are also seeing significant growth in hotel bookings [3][4] Group 3 - The overall transaction volume (GMV) for travel services has increased by approximately 65% year-on-year, with product diversity growing by 55.25% [3] - The "May Day" holiday is expected to reach a historical peak in travel heat, with the travel peak anticipated to occur in the first two days of the holiday [4] - The Ministry of Commerce and other departments have announced policies to optimize the outbound tax refund system, which is expected to boost inbound tourism and shopping [4][5] Group 4 - Companies like Ctrip are expected to benefit from the growing demand for travel, as high-level consumption continues to expand [6] - Huazhu Group's adjusted EBITDA for Q4 2024 is projected to grow by 10%, with an upward revision of EBITDA forecasts for 2025-2026 [6] - China Duty Free Group is expected to see revenue growth driven by the recovery of port traffic and operational optimizations, with new store policies creating growth opportunities [6]

We are also watchful about Hainan's free-trade-zone policy and impact to duty-free operators. The Hainan government has not yet released any details, but we expect it to do so later this year as Central government targets opening the FTZ in 2025. Recap of March-2025 Hainan offline DF trends: Avg daily sales Rmb94mn (-5% YoY vs -13% YoY in 2M25); Daily shoppers 17.7K (-26% YoY) and spending per shopper Rmb6.5K (+28%). The ASP growth could be helped by more electronic product sales which might not translate t ...

证券研究报告 | 年报点评报告 gszqdatemark 2025 04 24 年 月 日 中国中免（601888.SH） 口岸免税受益政策优化，期待市内免税增量 事件：1）3 月 28 日，公司发布 2024 年年报，2024 年实现营业收入 564.74 亿元/同比 -16.38%，归母净利润 42.67 亿元/同比-36.44%，扣非归母净利润 41.44 亿元/同比- 37.7%；其中 2024Q4 实现营业收入 134.53 亿元/同比-19.46%，归母净利润 3.48 亿 元/同比-76.93%，扣非归母净利润 2.71 亿元/同比-81.42%。2）发布 2024 年度利润 分配方案，拟每 10 股派发现金红利 10.5 元，共计 21.7 亿元，占据归母净利润 50.91%。 消费意愿阶段趋缓，离岛免税显著承压，口岸免税利润有所优化。2024 年海南接待游 客总人数 9721 万人次/同比+8.0%，全年离岛免税购物金额 309.4 亿元/同比-29.3%。 其中实际购物人次 568.3 万人次/同比-15.9%，据计算人均消费为 5444 元/同比- 15.9%。2024 全年公司实现营业 ...

Core Viewpoint - The phenomenon of "ice and fire" is evident in China Duty Free Group (China Duty Free), where a new tax refund policy boosts stock prices despite ongoing declines in company performance and valuation [1][3]. Group 1: Policy Impact - The State Taxation Administration announced the nationwide implementation of the "immediate purchase and refund" tax refund policy, which simplifies the refund process and stimulates inbound tourism potential [1][7]. - The new policy allows foreign tourists to experience tax refunds more directly, potentially increasing their willingness to spend [8]. - Historical data from Japan indicates that similar tax refund policies significantly enhance inbound tourist spending, suggesting a positive outlook for the Chinese market [7]. Group 2: Company Performance - In 2024, China Duty Free is projected to see a revenue decline of 16.38% to 56.474 billion yuan and a net profit drop of 36.44% to 4.267 billion yuan, indicating significant performance pressure [3][4]. - The company's sales from duty-free goods decreased by 12.58% to approximately 38.666 billion yuan, while taxable goods sales fell by 23.49% to about 17.095 billion yuan, reflecting a contraction in online business due to competition [3][4]. - The Hainan region, a core market for the company, experienced a revenue decline of 27.13%, significantly impacting overall performance [3][4]. Group 3: Market Dynamics - Despite an increase in market share in Hainan, the overall market contraction means that this gain did not translate into revenue growth [4]. - The competitive landscape has intensified with the opening of new duty-free stores, reducing the company's monopoly advantage [4][10]. - The company's profit margins are under pressure due to increased discounting and rising operational costs, with a notable 76.9% drop in net profit in the fourth quarter [5][6]. Group 4: Future Outlook - The recovery of the Hainan market is expected to rely on policy stimuli, such as increased tax refund limits, and will face challenges from international competition post-border closure [6]. - The overall trend of policy support and consumer recovery suggests a potential for sustained recovery in the duty-free market [10]. - China Duty Free holds an 81.74% market share in the domestic duty-free market, positioning it well to benefit from the anticipated growth in inbound tourism [8][10].

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的內容概不負責，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 中國旅遊集團中免股份有限公司（「本公司」）董事會（「董事會」）宣佈，將於 2025 年 4月 29日（星期二）舉行董事會會議，藉以（其中包括）審議及批准本公司及其附 屬公司截至 2025年 3月 31日止三個月的第一季度業績及其刊發，及其他議題。 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 4月 15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。 （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） 董事會會議召開日期 ...

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 number of company members exceeded 38 million, reflecting strong customer engagement and loyalty[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]. - New international locations were opened, including duty-free shops at Singapore Changi Airport and Hong Kong International Airport, expanding the company's overseas business footprint[11]. - The company signed operating lease agreements for taxable business at Shanghai Hongqiao Airport and Harbin Taiping Airport, exploring new revenue streams[13]. - The company is actively expanding its market presence by winning operating rights for 10 new duty-free projects at major airports and ports, enhancing its channel advantages[26]. - The company is exploring new tax-inclusive business models and has partnered with various entities to develop retail projects at airports and cruise ports, indicating a strategic shift towards diversified revenue streams[27]. - The company plans to deepen its market presence in Hainan and enhance service offerings at the Sanya International Duty-Free City, targeting different travel customer segments[78]. - The company will expand its overseas business and leverage the "Belt and Road" initiative to explore opportunities in key countries, enhancing its international presence[79]. Financial Performance - Revenue for the year ended December 31, 2024, was RMB 56,474 million, a decrease of RMB 11,066 million compared to RMB 67,540 million in 2023, representing a decline of approximately 16.4%[16]. - Gross profit for the same period was RMB 17,347 million, down RMB 3,506 million from RMB 20,853 million in 2023, reflecting a decrease of about 16.8%[16]. - Net profit attributable to equity shareholders was RMB 4,324 million, a decrease of RMB 2,466 million from RMB 6,790 million in 2023, indicating a decline of approximately 36.3%[16]. - The company's gross margin slightly decreased to 30.72% from 30.88%, a reduction of 0.16 percentage points[16]. - Total assets as of December 31, 2024, were RMB 76,108 million, down RMB 2,554 million from RMB 78,662 million in 2023, a decrease of about 3.2%[18]. - Total liabilities decreased to RMB 15,312 million from RMB 19,688 million in 2023, a reduction of RMB 4,376 million, representing a decline of approximately 22.2%[18]. - Cash and cash equivalents increased by RMB 3,021 million to RMB 34,773 million from RMB 31,752 million in 2023, an increase of about 9.5%[16]. - The equity-to-debt ratio improved to 25.19% from 33.38%, a decrease of 8.19 percentage points, indicating a stronger financial position[16]. - The company's revenue decreased by 16.38% from RMB 67.54 billion in 2023 to RMB 56.47 billion in 2024[46]. - Sales of duty-free goods fell by 12.58% from RMB 44.23 billion in 2023 to RMB 38.67 billion in 2024[47]. - The company's gross profit decreased by 16.81% from RMB 20.85 billion in 2023 to RMB 17.35 billion in 2024[51]. - Operating profit declined by 28.12% from RMB 89.50 billion in 2023 to RMB 64.33 billion in 2024[59]. - Net profit decreased by 33.07% from RMB 7.35 billion in 2023 to RMB 4.92 billion in 2024[60]. Strategic Focus and Future Plans - The company aims to capture new market opportunities by focusing on market insights, consumer behavior, and collaboration[14]. - The strategic focus for 2025 includes enhancing core capabilities and fostering high-quality development through innovation and collaboration[14]. - The company plans to establish itself as a world-class travel retail operator with global competitiveness and influence[14]. - The company aims to enhance its core capabilities and improve service quality, focusing on customer insights and supply chain management to boost operational efficiency[81]. - The company will strengthen medium to long-term planning and annual investment management to control investment scale and pace, enhancing project investment estimation and review processes[83]. - The company will focus on foreign exchange risk management due to international business being settled in foreign currencies, aiming to improve asset and liability currency matching[84]. - The company plans to deepen existing advantages and enhance online and offline integration to strengthen competitive positioning amid increasing market competition[85]. Corporate Governance and Management - The company emphasizes good corporate governance practices, having complied with the majority of the recommended best practices outlined in the Corporate Governance Code[110]. - The board plays a crucial role in strategic decision-making and risk management, ensuring the company's best interests are prioritized[117]. - The company has a strong commitment to maintaining high levels of corporate governance, regularly reviewing its governance practices[116]. - The company has established a system to manage the trading of its securities by directors and supervisors to prevent insider trading[114]. - The company recognizes the importance of effective leadership and regularly assesses the contributions of its directors[118]. - The board consists of eight members, including three executive directors and three independent non-executive directors, ensuring a diverse governance structure[119]. - The company has adopted a board diversity policy, considering factors such as gender, age, ethnicity, and professional experience in the nomination and selection of board members[129]. - The board has a balanced mix of knowledge and skills, with 3 members holding doctoral degrees and 4 holding master's degrees[130]. - The company provides training and resources for directors to ensure they are well-informed about their responsibilities and regulatory requirements[127]. - The term for directors is three years, with independent non-executive directors limited to a maximum of six consecutive years[125]. - The company has arranged appropriate liability insurance for directors, supervisors, and senior management against legal actions arising from company activities during the reporting period[126]. Risk Management and Compliance - The company has established a comprehensive risk management system and has conducted annual major risk assessments to evaluate risks based on likelihood and impact[160]. - The company aims to enhance the scientific design and applicability of risk warning indicators to prevent and mitigate significant operational risks[162]. - The board has reviewed and monitored compliance with legal and regulatory requirements, ensuring adherence to the Corporate Governance Code[154]. - The company has implemented quarterly risk compliance training for all employees to improve risk control and compliance awareness[163]. - The company has developed a risk management report mechanism to summarize and evaluate risk management efforts across key subsidiaries[161]. - The company has established a compliance system focusing on eight key areas, including regulatory compliance and data security[170]. - 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[169]. Shareholder Communication and Dividends - The company aims to distribute at least 30% of the average distributable profits over the last three years as cash dividends, provided that the company has positive retained earnings[192]. - The company has established a shareholder communication policy to ensure that shareholder opinions and concerns are properly addressed[188]. - The company has revised its investor relations management system to enhance communication mechanisms with investors[187]. - The company is committed to providing stable and reasonable returns to shareholders while considering long-term interests and sustainable development[191]. - The company has a cash dividend policy that prioritizes cash distributions when conditions permit[191]. - The board proposed a final dividend of RMB 1.05 per share for the year ending December 31, 2024, totaling RMB 2,172.30 million (tax included) based on the total number of shares issued at the end of the reporting period[199]. - The proposed dividend is subject to approval at the annual general meeting, with expected payment within two months after the meeting if approved[199].

Group 1 - The Hong Kong stock market opened lower but rebounded, with the Hang Seng Index rising by 0.56% to close at 20,798.63 points, and the Tech Index increasing by 1.68% to 4,894.48 points [1] - Chip stocks experienced significant gains, with notable increases in individual stocks such as Longi Green Energy rising nearly 23% and Huahong Semiconductor up 19% [1] - Other sectors showed mixed performance, with gold and precious metals rising, automotive stocks recovering, while agricultural stocks continued to decline and duty-free concept stocks lost momentum [1] Group 2 - Individual stock performances included notable gains for companies like Zhongjin Life Science (up nearly 23%), Huahong Semiconductor (up 19%), and Chifeng Jilong Gold (up 13.9%), while companies like Zhaoyan New Drug fell nearly 17% and China Duty Free Group dropped 4.4% [1] - The overall market sentiment reflected a positive trend in the semiconductor sector, indicating potential investment opportunities in this industry [1]