Group 1 - The first duty-free store in Guangzhou officially opened on August 26, marking a significant step in implementing national duty-free policies and establishing Guangzhou as an international consumption center [1] - The store is a collaboration between China Duty Free Group, two listed companies under Lingnan Group (Guangbai Co., Ltd. and Lingnan Holdings), and Baiyun Airport, located in the CBD of Tianhe District [1] - The store aims to attract high-end consumers and global tourists, contributing to the return of high-end consumption in the Greater Bay Area [1] Group 2 - The duty-free store introduces an innovative shopping model combining "duty-free + taxable," "imported + domestic," and "offline + online," featuring a diverse product matrix including beauty, jewelry, fashion, and high-end beverages [2] - The store also offers departure tax refund services to stimulate outbound tourist spending and promote domestic brands internationally [2] - Guangbai Co., Ltd. plans to enhance customer experience by adding multilingual services, exclusive member guides, and cross-border payment support, while creating an immersive shopping environment that blends modern aesthetics with Lingnan cultural elements [2] Group 3 - On the opening day, Lingnan Holdings launched an autonomous driving service (Robotaxi) and initiated a trial run of a direct bus service between Guangzhou and Hong Kong Airport, aiming for high-frequency daily operations [2]

Core Viewpoint - The company has approved a resolution to jointly invest in the establishment of a duty-free company in Guangzhou, aiming to expand its presence in the duty-free retail market and enhance its business growth through collaboration with other major stakeholders in the industry [1][6][28]. Group 1: Investment Details - The company will invest CNY 8.775 million, accounting for 19.5% of the registered capital of CNY 45 million for the new company [2][19]. - The joint investment partners include China Duty Free Group, Guangzhou Baiyun International Airport Co., Ltd., and Guangzhou Guangbai Co., Ltd. [2][19]. - The establishment of the new company aligns with the government's initiative to promote duty-free shopping in major cities, enhancing consumer spending and tourism [28][30]. Group 2: Approval Process - The board meeting held on May 16, 2025, saw unanimous approval from the attending directors, with three directors abstaining due to conflicts of interest [4][8]. - Independent directors also supported the investment, emphasizing its alignment with the company's core business and potential for synergistic growth [3][31]. Group 3: Strategic Implications - The investment is expected to create new business growth points by integrating tourism and retail, thereby enhancing the company's overall market position [28][29]. - The new duty-free business model is anticipated to attract more tourists and increase consumer spending, contributing to the company's long-term strategic goals [28][30].

Group 1 - Guangzhou Baiyun International Airport Co., Ltd. and its partners have established a joint venture named "Duty-Free Goods (Guangzhou) Co., Ltd." to operate city duty-free stores in Guangzhou, with a registered capital of RMB 45 million [1] - The investment breakdown includes Guangzhou Baiyun's investment of RMB 8.775 million (19.5%), China Duty Free Group's investment of RMB 22.95 million (51%), Lingnan Holdings' investment of RMB 8.775 million (19.5%), and Baiyun Airport's investment of RMB 4.5 million (10%) [1] - The establishment of city duty-free stores is part of a broader initiative by the Chinese government to stimulate consumer spending and enhance domestic demand, as outlined in a notification from five ministries [2] Group 2 - The Chinese government aims to set up one city duty-free store in eight cities, including Guangzhou, to promote consumption among inbound travelers and encourage domestic spending [2] - The Ministry of Commerce has emphasized the importance of developing exit tax refund policies as a means to boost consumption and enhance the attractiveness of duty-free shopping for international travelers [3]

Core Viewpoint - The implementation of favorable policies, such as the 144-hour visa-free transit, has significantly boosted China's inbound and outbound tourism, leading to a rapid recovery in the tourism market and increased consumer spending in duty-free shopping [2] Group 1: Duty-Free Store Policy - The Ministry of Finance, Ministry of Commerce, Ministry of Culture and Tourism, General Administration of Customs, and State Taxation Administration issued a notice to enhance the management of city duty-free stores, effective from October 1, 2024 [2][4] - The new regulations exempt duty-free stores from customs duties, import VAT, and consumption tax on imported goods, while domestic goods sold in these stores are treated as exports, allowing for tax refunds [4][6] - The policy aims to promote the healthy and orderly development of city duty-free stores, with a focus on enhancing consumer shopping experiences through reduced costs [6] Group 2: Store Operations and Requirements - City duty-free stores are required to sell goods only to travelers holding valid exit documents and are set to operate under a "buy in-store, pick up at the port" model [9][10] - The stores must undergo customs inspection and approval before commencing operations, with existing stores in major cities like Beijing, Shanghai, and Xiamen adapting to the new regulations starting October 1, 2024 [7][8] - New duty-free stores will be established in cities such as Guangzhou, Chengdu, and Shenzhen, with a focus on selling a variety of consumer goods [8] Group 3: Tax Benefits and Consumer Impact - The tax exemptions provided by the new policy can significantly lower operational costs for duty-free stores, enhancing their competitive pricing and improving the shopping experience for consumers [6] - For example, a hypothetical case of jade ornaments illustrates that the total tax savings for a duty-free store can amount to 1,228.14 yuan, which translates to lower prices for consumers [5][6] - The policy encourages the sale of domestic products, particularly those that promote Chinese culture, thereby supporting local brands [7]