Xin Lang Cai Jing·2026-03-25 13:12Core Viewpoint - Goldman Sachs indicates that China Duty Free's preliminary financial results for 2025 show a 16% year-on-year decline in net profit to 3.6 billion RMB, slightly below expectations, primarily due to a 200 million RMB goodwill impairment. Excluding this factor, net profit meets expectations at 3.7 billion RMB, with fourth-quarter net profit at 700 million RMB, reflecting revenue recovery driven by Hainan sales [1][3][4]. Business Segments - Hainan DFS Store Sales: Last year's sales reached 38 billion RMB, with a 19% year-on-year growth in the fourth quarter, mainly driven by government consumption vouchers, increased sales of high-value goods, and reduced overseas tourism due to geopolitical tensions between China and Japan [2][6]. - Stable Gross Margin: The gross margin for the third quarter was 32.7%, consistent with the previous two quarters, indicating that sales growth was primarily driven by government consumption vouchers rather than company promotions [2][6]. - Shanghai Airport New Contract: The new contract has led to a reduction in revenue and profit for China Duty Free, losing half of its operational area at Pudong Airport, with an expected impact on earnings of -5% to -4% [2][6]. - Beijing Capital Airport New Contract: Starting February 2026, China Duty Free will pay a fixed annual fee of 480 million RMB plus sales commissions, with an expected revenue sharing ratio of 23%, down from 40% pre-pandemic [2][6].