Core Viewpoint - China Duty Free Group Co., Ltd. (China Duty Free) reported a decline in revenue and net profit for the first three quarters of 2025, while also announcing a cash dividend plan for shareholders [1][2]. Financial Performance - For the first three quarters of 2025, China Duty Free achieved revenue of 39.86 billion yuan, a year-on-year decrease of 7.34% - The net profit attributable to shareholders was 3.052 billion yuan, down 22.13% - In Q3 2025, revenue was 11.711 billion yuan, a slight decline of 0.38%, with net profit of 450 million yuan, down 28.94% [1]. Dividend Announcement - China Duty Free proposed a cash dividend of 0.25 yuan per share (before tax) to all shareholders - With a total share capital of approximately 2.069 billion shares, the total cash dividend amounts to 517 million yuan (before tax), representing 16.95% of the net profit attributable to shareholders for the first three quarters of 2025 [1]. Market and Policy Developments - The sales of duty-free goods in Hainan province showed a positive growth of 3.4% in September 2025, marking the first positive growth in 18 months - Approximately 50% of China Duty Free's revenue comes from Hainan, indicating that an increase in duty-free sales in the region is beneficial for the company [1]. - A new notification from the Ministry of Finance and other departments will enhance duty-free store policies starting November 1, 2025, which includes optimizing tax policies, expanding product categories, and improving operational efficiency [2]. Business Expansion - China Duty Free opened new city duty-free stores in Shenzhen, Guangzhou, and Chengdu, adopting a dual operating model of "duty-free + taxable" - The company is also developing new concept stores and expanding its presence in airports, with ongoing projects like the Sanya International Duty-Free City [3]. - Following the financial report, China Duty Free's stock rose by 2.42% in the A-share market and 4.73% in the Hong Kong market [3].