CTG DUTY-FREE(SH:601888) Cai Jing Wang·2025-12-17 11:52Core Points - China Duty Free Group and Dufry have won the operating rights for duty-free shops at Shanghai's airports, marking a significant change in the market dynamics [1][2][4] - The operating rights are divided between the two companies, with China Duty Free Group managing the T2 terminal and S2 satellite hall at Pudong Airport and the duty-free operations at Hongqiao Airport, while Dufry will operate at T1 terminal and S1 satellite hall at Pudong Airport [2][3] - This marks the first time in 26 years that Shanghai's airport duty-free market will not have a single operator, introducing competition that is expected to enhance the overall duty-free business [4] Company Summaries - China Duty Free Group is a wholly-owned subsidiary of China Tourism Group and has secured a 5+3 year operating contract for duty-free shops at key locations in Shanghai [2][3] - Dufry, a global leader in the duty-free retail sector, is entering the Chinese mainland airport duty-free market for the first time, with a 3+5 year contract for operations at Pudong Airport [3][4] Market Changes - The new contracts will increase the retail space for duty-free shops, with an additional 1,181 square meters at Pudong Airport and 383 square meters at Hongqiao Airport compared to previous agreements [4] - The new operating model will include a combination of fixed rent and sales commission, which is expected to incentivize operators to introduce more competitive product categories [4]