Core Viewpoint - The establishment of China Duty Free Group Baiyun Airport Duty-Free Goods (Guangzhou) Co., Ltd. indicates a strategic expansion in the duty-free retail sector, with a registered capital of 45 million RMB and a diverse range of business operations [1]. Company Information - The company was founded on October 20, 2025, and is currently in a state of existence [1]. - The legal representative is Li Jia, and the company is registered under the unified social credit code 91440100MAEXW3136J [1]. - The registered address is located at the T3 main building of Guangzhou Baiyun International Airport [1]. Business Scope - The business operations include the sale of pre-packaged food, health food, infant formula, cosmetics, electronic products, and various retail categories such as clothing, daily necessities, and duty-free goods [1]. - The company also engages in the sale of jewelry, toys, sports equipment, and tobacco products [1]. Shareholding Structure - The ownership structure consists of China Duty Free Group Co., Ltd. holding 51% and Guangzhou Baiyun International Airport Co., Ltd. holding 49% [1].

Core Insights - A new company named China Duty-Free (Guangzhou) Co., Ltd. has been established, with a registered capital of 45 million RMB [1] - The company is co-owned by China Duty-Free Group Co., Ltd. (51% stake) and Guangzhou Baiyun International Airport Co., Ltd. (49% stake) [1] Company Information - The legal representative of the company is Li Jia [2] - The company is registered with a unified social credit code of 91440100MAEXW3136J and is currently in a state of existence [2] - The business scope includes the sale of food, cosmetics, electronic products, and various retail activities [2] Shareholder Structure - China Duty-Free Group Co., Ltd. holds a 51% stake, while Guangzhou Baiyun International Airport Co., Ltd. holds a 49% stake in the new company [2]

Core Insights - A new company named China Duty-Free (Guangzhou) Co., Ltd. has been established, with a registered capital of 45 million RMB [1] - The company is jointly owned by China Duty-Free Group Co., Ltd. (51% stake) and Guangzhou Baiyun International Airport Co., Ltd. (49% stake) [1] Company Information - The legal representative of the new company is Li Jia [2] - The company was officially registered on October 20, 2025, and is classified as a limited liability company [2] - The business scope includes the sale of food, cosmetics, electronic products, and various retail activities [2] Shareholder Structure - China Duty-Free Group Co., Ltd. holds a 51% stake, while Guangzhou Baiyun International Airport Co., Ltd. holds a 49% stake in the new company [2]

Core Insights - The aviation and airport sector experienced a significant increase of 3.27% on October 20, with China Eastern Airlines leading the gains [1] - The Shanghai Composite Index closed at 3863.89, up 0.63%, while the Shenzhen Component Index closed at 12813.21, up 0.98% [1] Stock Performance - China Eastern Airlines (600115) closed at 4.78, up 6.70%, with a trading volume of 3.0187 million shares and a turnover of 1.412 billion [1] - Southern Airlines (600029) closed at 6.60, up 6.28%, with a trading volume of 1.7359 million shares and a turnover of 1.122 billion [1] - Xiamen Airport (600897) saw a decline of 0.85%, closing at 15.20, with a trading volume of 130,300 shares [2] Capital Flow - The aviation and airport sector saw a net inflow of 757 million in main funds, while retail investors experienced a net outflow of 534 million [2][3] - Southern Airlines had a net inflow of 184 million from main funds, but a net outflow of 134 million from retail investors [3] - China Eastern Airlines recorded a net inflow of 150 million from main funds, with a net outflow of 147 million from retail investors [3]

Group 1 - The 138th Canton Fair commenced on October 15, attracting over 32,000 enterprises and 227 global partners, indicating strong interest and participation [1] - From October 10 to 15, the average daily inbound foreign travelers at Guangzhou Baiyun Airport reached nearly 15,000, marking a 4.2% increase compared to the same period during the 137th Canton Fair [2] - On October 14 and 15, the number of inbound foreign travelers exceeded 18,000 on both days, accounting for over 70% of total inbound passengers, setting historical records for the airport [2] Group 2 - The Guangzhou Baiyun Border Inspection Station implemented advanced technologies such as big data and artificial intelligence to monitor passenger flow and optimize waiting areas, ensuring efficient processing for travelers [4] - The station introduced AI voice service devices and multilingual consultation robots, providing support in 13 languages to assist international travelers with inquiries related to entry, business, and tourism [4]

Investment Rating - The industry investment rating is "Positive" [6] Core Insights - The overall passenger load factor in September remained high, with significant year-on-year improvements in international routes [1][4] - Domestic capacity growth was modest at approximately 2.2% year-on-year, while there was a notable decrease of about 15.7% compared to August [2][16] - The implementation of the self-discipline convention by the China Air Transport Association is expected to help stabilize the market and improve profitability [5] Summary by Sections 1. Industry Overview - The passenger load factor for listed airlines increased by approximately 2.1 percentage points year-on-year, while it decreased by 1.0 percentage point compared to August [3][34] - Eastern Airlines showed the most aggressive improvement in load factor, with a year-on-year increase of 3.3% in September [48] 2. Domestic Route Capacity - Domestic airlines maintained a low growth rate in capacity, with a year-on-year increase of about 2.2% and a month-on-month decrease of approximately 15.7% [2][16] - The competitive landscape is shifting towards lower price segments, necessitating cost efficiency improvements for airlines [2][18] 3. Domestic Route Load Factor - The overall load factor for domestic routes remained high, with a year-on-year increase of about 2.1 percentage points [34][42] - Major airlines like Eastern Airlines and Air China reported significant year-on-year load factor improvements of 3.3% and 3.0%, respectively [48][39] 4. International Route Capacity - International route capacity for listed airlines increased by approximately 9.4% year-on-year, while it decreased by about 9.5% compared to August [4][54] - The load factor for international routes improved by approximately 3.5 percentage points year-on-year, indicating a strong recovery compared to last year [4][60] 5. Airport Throughput - Major airports such as Shanghai, Beijing, and Shenzhen reported year-on-year growth in international passenger throughput of 19%, 13%, and 15%, respectively [68][74] - Overall, international passenger throughput growth rates are stabilizing as the industry moves into the latter half of the year [68][72]

Core Insights - The aviation and airport sector experienced a slight increase of 0.17% on October 17, with Xiamen Airport leading the gains [1] - The Shanghai Composite Index closed at 3839.76, down 1.95%, while the Shenzhen Component Index closed at 12688.94, down 3.04% [1] Stock Performance - Xiamen Airport (600897) closed at 15.33, up 4.93% with a trading volume of 140,100 shares and a turnover of 211 million yuan [1] - Other notable performers include: - 吉祥航空 (603885) at 14.10, up 3.30% [1] - 中国国航 (601111) at 8.46, up 1.32% [1] - 中国东航 (600115) at 4.48, up 0.67% [1] - Conversely, 深圳机场 (000089) closed at 7.10, down 0.42% [1] Capital Flow - The aviation and airport sector saw a net inflow of 175 million yuan from institutional investors, while retail investors experienced a net outflow of 195 million yuan [2] - The detailed capital flow for key stocks includes: - 中国国航 (601111) with a net inflow of 14.4 million yuan from institutional investors [3] - 吉祥航空 (603885) with a net inflow of 64.3 million yuan from institutional investors [3] - 海航控股 (600221) had a net outflow of 54.3 million yuan from retail investors [3]

Core Insights - Guangzhou Baiyun Airport has experienced a significant increase in foreign passenger traffic during the peak periods of the National Day and Mid-Autumn Festival, closely followed by the Canton Fair [1] - The average daily number of incoming foreign passengers reached nearly 15,000 from October 10 to 15, marking a 4.2% increase compared to the same period during the 137th Canton Fair [1] - On October 14 and 15, the number of incoming foreign passengers exceeded 18,000 on both days, accounting for over 70% of the total incoming passengers, setting a historical record for the airport [1] Group 1 - The introduction of a "Canton Fair dedicated channel" at the airport has enhanced the efficiency of the entry process, with a reported 20-minute clearance time for incoming travelers [1] - Over 32,000 enterprises and 227 global partners participated in the Canton Fair, indicating strong international interest and confidence in the Chinese market [1] - The Baiyun Border Inspection Station has implemented advanced technologies such as big data and artificial intelligence to monitor passenger flow and optimize waiting areas for efficient processing [1] Group 2 - The Baiyun Border Inspection Station has equipped the port with AI voice service devices and multilingual consultation robots to assist travelers [2] - A multilingual volunteer service team has been established to provide translation and consultation services in 13 languages, addressing various inquiries related to entry and exit, business, and tourism [2]

Core Insights - The Guangzhou Baiyun Airport has experienced a significant increase in foreign passenger arrivals, with an average of nearly 15,000 foreign travelers per day from October 10 to 15, marking a 4.2% increase compared to the same period during the 137th Canton Fair [1][1][1] - On October 14 and 15, the days leading up to the 138th Canton Fair, the airport recorded over 18,000 foreign arrivals on both days, accounting for over 70% of the total inbound passengers, setting a historical record since the airport's opening [1][1][1] - The Baiyun Border Inspection Station has implemented advanced technologies such as big data and artificial intelligence to monitor passenger flow and optimize waiting areas, ensuring efficient and smooth customs clearance for travelers [1][1][1]

Core Viewpoint - The company intends to change its accounting firm from Lixin Certified Public Accountants to RSM China (致同会计师事务所) for the 2025 fiscal year due to regulatory requirements after nine years of service from the previous firm [2][12][13]. Group 1: Change of Accounting Firm - The new accounting firm to be appointed is RSM China (致同会计师事务所) [2]. - The previous accounting firm was Lixin Certified Public Accountants, which has served the company for nine years [12]. - The change is in accordance with the regulations governing the selection of accounting firms for state-owned enterprises and listed companies [2][13]. Group 2: RSM China's Profile - RSM China was established in 1981 and has nearly 6,000 employees, including 1,359 certified public accountants [4]. - The firm reported a revenue of approximately 261.43 million yuan for 2024, with audit services contributing about 210.33 million yuan [4]. - RSM China has a strong client base, with 297 listed company audit clients in 2024 [4]. Group 3: Communication and Approval Process - The company has communicated with both the outgoing and incoming accounting firms regarding the change, and both parties have no objections [3][14]. - The audit committee has reviewed and approved the appointment of RSM China, finding it capable of meeting the company's audit service requirements [15]. - The board of directors has also approved the change, with a unanimous vote of 7 in favor [29].