Core Viewpoint - Shanghai Airport is actively working on the new agreement for duty-free projects, with a public tender announced for duty-free shops at both Pudong and Hongqiao International Airports, amid concerns regarding the participation of Sunrise Duty Free (Shanghai) Co., Ltd. in the bidding process [1][2]. Group 1: Company Developments - Shanghai Airport held a Q3 earnings briefing on December 11, discussing the progress of the new duty-free project agreement [1]. - The public tender for duty-free shops at Shanghai Pudong International Airport and Hongqiao International Airport was announced on November 17, with a submission deadline for bids set for December 9, 2025 [1]. - If Sunrise Shanghai fails to participate in the bidding, it may face dissolution, while a new round of bidding at the Capital Airport has also begun, raising concerns about shareholder dynamics [1][2]. Group 2: Financial Performance - In the previous year, Shanghai Airport's duty-free contract revenue was 1.212 billion yuan, a decline of over 30% year-on-year, while Q1 of this year saw revenue of 343 million yuan, down 1.15% year-on-year [3]. - From 2017 to 2019, Sunrise Shanghai's rent payments to Shanghai Airport increased annually, reaching 5.210 billion yuan in 2019, which constituted 47.60% of its annual revenue [3]. - Due to the pandemic, duty-free shop rental income significantly decreased from 1.156 billion yuan in 2020 to 363 million yuan in 2022, but in 2023, the related duty-free business saw a recovery with revenue of 1.788 billion yuan, nearly quadrupling year-on-year [3].

Core Viewpoint - The news highlights the potential exit of Sunrise Duty Free (Shanghai) Co., Ltd. from Shanghai Airport after 26 years of operation, as the chairman, appointed by the major shareholder China Duty Free Group, decided not to participate in the bidding for the airport's duty-free project [3][5]. Group 1 - Sunrise Duty Free (Shanghai) is facing a forced exit from Shanghai Airport due to the refusal of four out of seven board members, representing the major shareholder, to approve participation in the bidding [3][5]. - The bidding process for duty-free operations at Shanghai Pudong and Hongqiao International Airports commenced on November 17 and is set to close on December 9 [5]. - Sunrise Duty Free (Shanghai) was established in June 1999 and was the first foreign company to operate airport duty-free shops in China [7]. Group 2 - In 2018, China Duty Free Group acquired a 51% stake in Sunrise Duty Free (Shanghai) for 1.505 billion yuan, becoming the controlling shareholder [7]. - There was a prior agreement stipulating that all duty-free operations at airports in Shanghai and Beijing would be conducted through Sunrise Duty Free [9]. - Sunrise Duty Free currently operates at Beijing Capital International Airport and both terminals of Shanghai Pudong International Airport, as well as Terminal 1 of Shanghai Hongqiao International Airport [9].

Core Viewpoint - The board of directors of RiShang Duty Free (Shanghai) Co., Ltd. is in a dispute regarding participation in the Shanghai airport duty-free project bidding, with the majority of directors opposing the bid, potentially leading to the company's exit from the airport market [3][5]. Group 1: Company Background - RiShang Duty Free was established in June 1999 and is the first foreign company to operate airport duty-free shops in China [5]. - In 2018, China Tourism Group's subsidiary, China Duty Free Group, acquired a 51% stake in RiShang Duty Free, becoming the controlling shareholder [5]. - The company operates primarily at Beijing Capital International Airport and Shanghai's Pudong and Hongqiao International Airports [6][7]. Group 2: Current Situation - On December 6, 2025, a board meeting was held where the chairman, appointed by the major shareholder China Duty Free Group, indicated that the company would not participate in the bidding for the Shanghai airport duty-free project [3]. - The bidding process for the Shanghai airport duty-free shops began on November 17 and is set to close on December 9, 2025 [3]. - The disagreement among shareholders raises questions about the future of RiShang Duty Free's operations at Shanghai airport, as the chairman's refusal to sign the bidding documents could prevent the company from participating [3].