Core Viewpoint - The company, Aok Holdings, is focusing on the production of deep-processing products of ethylene oxide and international trade, particularly targeting Southeast Asian markets, in light of new tax policies in Hainan [2] Group 1 - Aok Holdings announced that Hainan will implement "zero tariffs" and tax exemptions for processing and value-added activities as part of its new policies [2] - The company aims to actively seize opportunities presented by these policies and market conditions [2] - Aok Holdings will disclose relevant information in accordance with legal requirements if it meets disclosure standards [2]

Core Insights - The official launch of the Hainan island-wide customs closure on December 18, 2025, is expected to significantly boost the tourism market in Haikou, with increased visitor numbers and enhanced shopping experiences [2][8] Tourism and Shopping Trends - Following the customs closure, Haikou's duty-free shopping has seen a substantial increase, with the first day recording sales of 1.61 billion RMB, a year-on-year increase of 61%, with 24,800 visitors participating [3][5] - The variety of duty-free products has expanded from over 1,900 to more than 6,000, enhancing consumer choice and experience [4] - Tourists are experiencing significant savings, with one shopper reporting a reduction of nearly 5,000 RMB on purchases due to promotional activities launched post-closure [2][3] Visitor Demographics and Behavior - There has been a notable increase in flight bookings to Haikou, with a 19% rise in bookings for New Year's and a 130% increase for the Spring Festival compared to the previous year [5] - International visitors are also increasing, with a 40% rise in inbound international flight bookings for the upcoming New Year season [5] Local Economic Impact - The tourism boom is positively impacting local accommodation and dining sectors, with hotels reporting full occupancy and restaurants experiencing longer wait times due to increased patronage [6] - The overall tourism revenue in Hainan has doubled from 95.016 billion RMB in 2018 to 204.014 billion RMB in 2024, with tourism contributing 33.4% to the GDP [6] Future Prospects - The customs closure is expected to further enhance the quality of tourism products and services in Hainan, with plans to develop cultural performances and digital consumption sectors [6][7] - Local stakeholders express optimism about the long-term benefits of the customs closure, anticipating that increased visitor numbers will lead to broader economic advantages for the community [7][8]

Group 1 - The construction of Hainan Free Trade Port is attracting an increasing number of foreigners to work and settle in Hainan [1] - The Lingshui Li'an International Education Innovation Pilot Zone is developing cooperative education programs at undergraduate, master's, and doctoral levels with 26 well-known universities signing agreements to establish a presence [3] - The pilot zone has approved 10 cooperative education institutions/projects, making it possible for students to study abroad without leaving the country [3] Group 2 - The scale of teachers and students in the pilot zone has surpassed 10,000, indicating significant growth [3] - The pilot zone offers over 20 majors, including Information and Computing Science, Digital Media Technology, Leisure Sports, and Tourism Management, promoting faculty sharing, course selection, and credit recognition among universities [3] - The inclusive, open, and friendly environment in Hainan has positively impacted the experiences of foreign educators like Ian, who expresses new expectations for his career and life in Hainan with the full operation of the island [3]

Group 1 - The implementation of new policies in Hainan Free Trade Port starting December 18 marks a significant step in its development, including tax policies for goods, import tax item catalog, and customs regulations [1] - The "one line open, one line controlled, and island free" concept indicates that imported goods will have zero tariffs, while measures will be in place to prevent smuggling and tax evasion between Hainan and the mainland [1] - The expansion of the zero-tariff product list from 1,900 to approximately 6,600 items, covering about 74% of all product tax categories, represents a 53% increase compared to before the closure [2] Group 2 - The "processing value-added 30% domestic sales tax exemption" policy is particularly attractive for manufacturing enterprises, allowing them to avoid import tariffs on high-value goods processed in Hainan [3] - Companies like Hainan Oscar International Grain and Oil Co., Ltd. are already benefiting from these policies, enabling them to meet the requirements for tariff exemptions and expand their international market reach [3] - The upgraded "duty-free" policy, effective from November 1, allows for a broader range of duty-free products and lowers the threshold for foreign talent to work in Hainan, with personal income tax capped at 15% [3][4] Group 3 - The gradual process of full closure operation in Hainan is ongoing, with continuous improvements in infrastructure and services expected to attract more businesses [4] - The openness of Hainan's policies is anticipated to create new growth opportunities for enterprises, showcasing a more "free and convenient" environment to the world [4]

Group 1: Hainan Free Trade Port - Hainan Free Trade Port will officially start its full customs closure operation on December 18, 2025, creating a special customs supervision area with policies characterized by "one line open, two lines controlled, and free flow within the island" [1] - The "one line open" policy allows for free and convenient entry and exit between Hainan and other countries, while the "two lines controlled" policy implements precise management for the content opened to the "one line" [1] Group 2: Hainan Airlines Opportunities - Hainan Airlines (HNA Holding) anticipates benefiting from multiple tax incentives post customs closure, which will effectively reduce financial costs and attract high-end talent [2] - The company will enjoy zero tariffs on aircraft purchases and certain aviation materials, as well as the full implementation of bonded aviation fuel policies, significantly lowering core operating costs [2] Group 3: International Transit Development - HNA Holding is actively developing its transit economy, having successfully opened its first international-to-international route at Haikou Airport within one month of the terminal's renovation [3] - The company has achieved a 100% opening rate for intercontinental transit routes from Haikou, including destinations like Sydney, Melbourne, Auckland, Moscow, and London [3] - A policy allowing international transit passengers to bypass border inspection procedures has been implemented, enhancing the efficiency of international transfers [3] Group 4: Passenger Growth and Financial Performance - From January to October, HNA Holding's international passenger transport volume at Haikou Meilan Airport increased by 79% year-on-year, marking a five-year high [4] - In Q3, HNA Holding's revenue grew by 1.84% to 20.354 billion yuan, while net profit attributable to shareholders decreased by 0.75% to 2.788 billion yuan [5] - In comparison, Air China reported a revenue increase of 0.9% to 49.1 billion yuan, with a net profit decline of 11.3% to 3.68 billion yuan during the same period [5] Group 5: Future Outlook - HNA Holding expresses confidence in the future, anticipating that the extended nine-day Spring Festival holiday in 2026 will inject new momentum into the market, leading to significant increases in return home visits, cross-border tourism, and long-distance travel [6]

Group 1 - The first session of the "Policy Express" for enterprises was held in Hainan, focusing on promoting the core policies of the Free Trade Port as the island approaches a critical phase of closure operations [2] - Various departments in Hainan, including Development and Reform, Finance, and Commerce, introduced closure policies and provided targeted briefings on specific themes related to Free Trade Port construction [2][4] - A stable communication channel between the government and enterprises will be established, encouraging companies to appoint "policy liaisons" for direct contact [6] Group 2 - The latest developments in Free Trade Port construction and closure operations will be reported, including the implementation of core policies and major policy announcements before and after the closure [4] - The focus will also be on investment opportunities and market prospects arising from Free Trade Port policies, along with examples of successful implementations [4] - A relatively fixed reporting mechanism will be established for regular updates to market participants [6]

Core Viewpoint - The Hainan Provincial Development and Reform Commission is preparing for the island's closure operations by focusing on both hardware and software development, alongside implementing policies to facilitate investment and modernize industry [2][3]. Hardware Development - The commission has established a comprehensive communication and coordination mechanism to address project bottlenecks, resulting in the allocation of over 8 billion yuan for closure operation projects. All 25 projects initiated by the province commenced construction within six months, six central government projects were completed in 18 months, and a total of 31 closure operation projects were fully constructed [3][4]. Software Development - Two key information technology projects related to closure operations have been launched. The first phase of the Hainan International Trade "Single Window" project has completed its main software functionalities, achieving integration with ten secondary ports. The anti-smuggling comprehensive law enforcement station's information system has also been completed and is operational [4]. Policy Initiatives - The commission has collaborated with national authorities to introduce several policies, including the 2020 version of the negative list for foreign investment and measures to relax market access. The 2024 version of the encouraged industry directory has added 33 new categories, enhancing the investment environment in the free trade port [5]. Long-term Industry Development - A three-year action plan (2025-2027) aims to increase the value added of four leading industries to approximately 70% of the province's GDP, with modern services and high-tech industries also targeted for significant growth. Key actions include nurturing future industries, enhancing existing industries, and promoting high-quality development in key parks [6][7]. Future Plans - The commission plans to further relax market access and optimize the investment environment through new policies. It is also preparing major infrastructure and industry projects, including the Zhanhai High-speed Railway and Sanya New Airport, to support high-quality economic development before and after the closure [8].

Core Insights - The National Day and Mid-Autumn Festival holiday marks the last long holiday before the full closure of Hainan Free Trade Port, leading to a surge in duty-free shopping activity [1][2] Duty-Free Shopping Market Performance - During the holiday period from October 1 to October 8, Hainan's duty-free sales reached 9.44 billion yuan, with 122,900 shoppers, reflecting a year-on-year increase of 13.6% in sales and 3.2% in shopper numbers [3] - The average spending per shopper was 7,685 yuan, which is a 10% increase compared to the previous year [3] - Sanya's four duty-free stores reported a total sales of 670 million yuan over the eight-day holiday, marking a 20.5% year-on-year growth [4] Policy and Promotional Activities - Sanya's duty-free market is driven by a combination of government policies and promotional activities, including the issuance of 20 million yuan in duty-free consumption vouchers [5] - Various promotional events and discounts were launched by duty-free stores, enhancing consumer engagement and shopping experiences [5] - The CDF Sanya International Duty-Free City achieved a single-day sales record of 120 million yuan on October 5, showcasing the effectiveness of these initiatives [5] Customs and Logistics Innovations - Haikou Customs has implemented a "concentrated + automated" order review model, improving review efficiency by 60% and doubling the logistics turnover efficiency for duty-free goods [6] - The customs authority has also introduced innovative measures such as "immediate purchase and pick-up" and "guarantee-based pick-up" to streamline the shopping experience [6] - Since the implementation of the new duty-free policy, over 200 billion yuan in duty-free shopping has been monitored, with 30 million shoppers and 247 million items sold [6] Future Outlook - As Hainan approaches full closure operations, the region is expected to enhance trade facilitation, investment liberalization, and cross-border capital flow, positioning itself as a global hub for new brands and innovative consumption models [6][7]

Group 1 - The core viewpoint is that the full island closure operation in Hainan signifies a new phase in the construction of the free trade port, enhancing international connectivity and facilitating a new round of open-up dividends [1][2] - The closure will transform Hainan into a special customs supervision area, allowing for "one line open, two lines controlled, and free flow within the island," which promotes local high-quality development while maintaining control [1][2] - The "zero tariff" policy will expand from 1,900 to 6,600 categories, covering 74% of goods, significantly reducing corporate costs, particularly benefiting high-end manufacturing and biomedicine industries [1] Group 2 - The processing and value-added policies will lower the threshold for benefits, expanding the scope of beneficiaries and supporting the cultivation of industrial chains and clusters [2] - The establishment of a regional offshore trade center will enable companies to operate global orders without actual transit, significantly reducing transaction costs for international trade enterprises [2] - Traditional advantageous industries, such as tourism retail, will benefit from increased duty-free shopping limits and "zero tariff" policies, attracting more international visitors [3] Group 3 - The closure operation is a long-term task that requires continuous improvement and adaptation to form a policy system compatible with a high-level free trade port [3] - Hainan's free trade port closure is a significant move for China's expansion in the context of rising global protectionism, aiming to become a key gateway for China's new era of opening up [3]