Bei Jing Shang Bao·2025-08-26 14:43Core Viewpoint - China Duty Free Group (China CDF) reported a decline in both revenue and net profit for the first half of 2025, indicating ongoing challenges in the Hainan duty-free market while seeking growth through expansion into new markets and store openings [1][3][5]. Financial Performance - For the first half of 2025, China CDF achieved revenue of 28.151 billion yuan, a year-on-year decrease of 9.96% - The net profit attributable to shareholders was 2.6 billion yuan, down 20.81% - Main business revenue was 27.531 billion yuan, with offline revenue at 19.703 billion yuan and online revenue at 7.828 billion yuan [3][5]. Market Challenges - The decline in performance is attributed to the ongoing adjustment in the Hainan duty-free market, with Hainan's revenue dropping to 15.031 billion yuan from 16.785 billion yuan in the same period last year - Increased market competition and diversified consumer demand are putting pressure on traditional stores regarding foot traffic and repurchase rates [3][5][6]. Growth Strategies - Despite the performance challenges, China CDF is actively expanding its presence in the Hainan duty-free market, with six duty-free stores in the region and a market share increase of nearly 1 percentage point year-on-year - The company is also focusing on opening new stores, having secured operating rights for several duty-free shops at major airports and border ports, including Guangzhou Baiyun International Airport and multiple other locations [5][6]. - Additionally, China CDF has entered the overseas market, launching duty-free stores at Hanoi's Noi Bai International Airport and Phu Quoc International Airport in Vietnam [5].