Group 1 - The core theme of the National Day Golden Week activities at Haikou Global Duty-Free City is "Charming National Day, Shine Freely," which aims to enhance consumer enthusiasm through immersive experiences and diverse interactive activities [1][4][9] - Various themed areas and unique activities, such as free mooncakes and popular milk tea giveaways, have attracted a significant influx of visitors, creating a festive atmosphere [1][4] - The "Red Song Flash Mob" event has resonated with patriotic sentiments, drawing participation from over a hundred tourists, showcasing the blend of entertainment and cultural engagement [4] Group 2 - The demand for 3C digital products has surged, with brands like Huawei and Apple seeing high foot traffic, particularly for the new iPhone 17 series, indicating a strong consumer interest in tech during the holiday [6][8] - Haikou Duty-Free has partnered with brands to create exclusive shopping experiences, such as "Tech Classes" and pop-up stores, enhancing the shopping environment and offering unique sensory experiences [8][9] - The company has introduced long-term benefits and promotions throughout October, ensuring that the shopping experience extends beyond the holiday period, catering to various consumer preferences [8][9]

从中文标识、支付便利化以及客服培训等，到韩国的航司、商场、景点、餐饮机构都已全力以赴准备迎 接中国游客。 据央视新闻消息，韩国政府9月29日起面向中国团体游客试行免签入境政策，直到明年6月30日。 免签政策试行期间，中国三人以上团体游客可免签入境韩国并停留15天。济州地区与此前相同，个人和 团体游客均可免签入境并停留30天。 在此次新规实施前，韩国对中国游客的免签仅适用于特定条件，比如济州道旅游、过境免签、青少年修 学旅行团等。"旅游是理解和尊重不同文化的最有力桥梁。自9月29日起实施对中国团体游客的免签政 策，呼吁韩国民众以亲切、体贴和成熟的公民意识共同践行好客之道。"韩国国务总理金民锡近日表 示。 韩国韩中联合会会长朴胜赞在接受第一财经采访时表示，新政首先说明李在明新政府有意改善中韩关 系，去年底中国方面对符合免签条件的韩国普通民众访华已试行了免签政策，（韩国）政府最新在签证 政策方面的调整是对中方善意的回应。其次，此举对提振市场有积极效果。 朴胜赞还认为，10月韩国还将举办亚太经合组织（APEC）会议，结合签证政策调整等积极措施，中韩 两国的宏观环境将显著改善，相信后续产业合作、民间交流等微观层面的合作 ...

Core Viewpoint - Baiyun Airport (600004.SH) announced a joint investment with China Duty Free Group Co., Ltd. to establish a new company for operating the duty-free shop at the T3 terminal of Guangzhou Baiyun Airport [1] Group 1: Company Investment - The newly established company, named China Duty Free Guangzhou Baiyun Airport Duty Free Co., Ltd., will serve as the vehicle for operating the duty-free shop [1] - The registered capital of the new company is set at RMB 45 million, with China Duty Free Group contributing RMB 22.95 million, representing 51% of the capital, while Baiyun Airport contributes RMB 22.05 million, representing 49% [1]

Core Insights - The Hainan Free Trade Port is set to fully commence operations by December 2025, attracting global market attention for its potential business opportunities [1][3] - Hainan has become a key area for duty-free shopping in China, with duty-free sales accounting for over 8% of the global duty-free market [1] - Since the implementation of the new duty-free shopping policy on July 1, 2020, the total duty-free shopping amount has exceeded 200 billion yuan, with 30 million shoppers participating [1][4] Policy Developments - Following the announcement of the closure date, various government departments have released policies regarding tax arrangements for goods post-closure, enhancing trade liberalization and facilitation in Hainan [1] - The "Zero Tariff" policy for imported goods and other supportive measures have been introduced to ensure smooth implementation of the closure operations [1][2] Duty-Free Shopping Enhancements - The annual duty-free shopping limit for travelers has been raised from 30,000 yuan to 100,000 yuan, and the number of duty-free product categories has increased from 38 to 45 [3] - Innovations in customs supervision, such as the "concentrated + automatic" review model and drone delivery, have been implemented to expedite the process of duty-free goods reaching consumers [3][5] Consumer Experience Improvements - Hainan's duty-free stores are enhancing the shopping experience by integrating cultural, sports, and tourism elements, and offering various promotional activities [5] - New shopping formats, such as "duty-free blind boxes" and health-focused shopping experiences, are being introduced to attract consumers [4][5]

Core Insights - The company has officially transitioned from real estate to the duty-free and consumer sectors, marking a significant strategic shift [2][5][7] - The restructuring process, which took five years, culminated in the acquisition of a 51% stake in Zhuhai Duty-Free Group, significantly altering the company's business model [5][12] - The latest financial report indicates a 45.62% year-on-year decline in total revenue for the first half of 2025, amounting to 1.74 billion yuan, while the company achieved a profit of 112 million yuan, indicating a narrowing of losses [3][12] Business Transformation - The company has rebranded from "Gree Real Estate" to "Zhuhai Duty-Free Group" as part of its new strategic direction [2][6] - The duty-free business has become the main revenue driver, contributing 1.131 billion yuan in revenue and 391 million yuan in net profit during the reporting period [7][11] - The company currently operates 12 duty-free stores and has four additional stores that have won bids but are not yet operational [8][10] Financial Performance - The real estate segment's revenue plummeted by 74.52% to 425 million yuan, with a total loss of 271 million yuan, reflecting the impact of the asset restructuring [12][13] - The company reported a significant reduction in net losses, down 50.54% year-on-year, indicating improvements in cash flow despite ongoing operational adjustments [3][12] Future Strategy - The company plans to leverage its duty-free business as a strategic foundation while expanding into related sectors such as commercial operations and cross-border trade [10][11] - The management has committed to an orderly exit from the real estate sector within five years, focusing on the sale of existing inventory [13]

Basic Information - The duty on duty-free goods franchise fees is a non-tax revenue collected from the operation of duty-free goods by China Duty Free Group Co., Ltd. in designated areas such as airports, ports, and border crossings, as well as on international flights and trains [2][6] - Duty-free goods refer to imported goods exempt from customs duties and import taxes, as well as domestic goods that are sold in duty-free shops after tax refunds or exemptions [2] Historical Development - In November 2004, the Ministry of Finance issued the "Measures for the Payment of Duty-Free Goods Franchise Fees," requiring businesses to pay 1% of their annual sales revenue from duty-free goods to the state starting January 1, 2005 [2] - In December 2011, to promote the construction of Hainan International Tourism Island, a temporary management method for duty-free shopping stores for departing island travelers was established, requiring these stores to pay 4% of their annual sales revenue [2] - In December 2018, the collection of duty-free goods franchise fees was transferred to the tax department [3] Policy Basis - The collection of duty-free goods franchise fees is based on several official documents, including the "Measures for the Payment of Duty-Free Goods Franchise Fees" and related supplementary notifications from the Ministry of Finance and other authorities [4] Collection Policy - The duty-free goods business includes operations by China Duty Free Group and other companies in designated areas, as well as special sales services for international travelers [6] - The payment subjects include various companies involved in the duty-free goods business, which must settle and pay the franchise fees within five months after the end of the fiscal year based on audited financial reports [7] Budget Management - The duty-free goods franchise fees are classified as general public budget revenue and are considered central government income [7]

Core Viewpoint - The company has successfully completed a major asset swap, acquiring 51% of Zhuhai Duty-Free Company and divesting 100% of five real estate subsidiaries outside Zhuhai, establishing a consumer-driven business model focused on the duty-free sector [1] Group 1: Financial Performance - In the first half of 2025, the company reported total revenue of 1.74 billion yuan, with a total profit of 112 million yuan, marking a turnaround from previous losses, and a net profit attributable to shareholders of -274 million yuan, a 50.54% reduction in losses compared to the same period last year [1] - The duty-free business has become the main revenue driver, generating 1.131 billion yuan in revenue and 391 million yuan in net profit, with a net cash flow from operating activities of 456 million yuan during the reporting period [1] Group 2: Business Expansion - As of the end of 2024, the company and its subsidiaries operate 9 duty-free stores, with recent openings increasing the total to 12, including locations at various key ports and airports [2] - The company has completed the major asset restructuring with Zhuhai Duty-Free, and the remaining 49% stake will be evaluated based on future strategic plans [2] Group 3: Corporate Governance and Strategy - The company's controlling shareholder, Huitou Company, has transferred its shares to Huafa Group, initiating a new phase of resource collaboration [3] - The company aims to leverage Huafa Group's strong industrial ecosystem to enhance its strategic operations and build an integrated "duty-free + commercial management + trade" ecosystem [3] - The Hongwan Center Fishing Port, managed by the company, covers approximately 720,000 square meters and is developing into a seafood trading center, although it has not yet achieved profitability [3]

Core Viewpoint - The company held an investor briefing on September 11, 2025, to discuss its half-year performance, financial status, and business development, engaging with investors through an online interactive format [1][2]. Group 1: Meeting Details - The investor briefing was conducted online from 15:00 to 16:00 on September 11, 2025 [6]. - Key participants included the Chairman and President, Mr. Li Xiangdong, along with other executives and independent directors [2]. Group 2: Investor Interaction - Investors were able to submit questions before and during the meeting through the online platform [3]. - The company expressed gratitude to investors for their ongoing support and encouraged communication through various channels [4]. Group 3: Key Questions and Responses - The company has completed a major asset restructuring, acquiring 51% of Zhuhai Duty-Free's shares, with future plans for the remaining 49% contingent on strategic development [7][9]. - Currently, the company does not possess the qualification for Hainan offshore duty-free operations, but the Sanya Bay No. 1 project is set to trial operations on October 1 [7][10]. - As of June 30, 2025, the company reported real estate inventory of approximately 7.8 billion [8]. - The company aims to optimize its operational strategy by leveraging resources from its major shareholder, Huafa Group, to enhance its financial resilience and sustainable development [8][11]. - The company has committed to an orderly exit from its real estate business over the next five years [9][11]. - The company reported a net profit of 391 million from its duty-free segment in the first half of 2025, with total revenue of 1.131 billion [11]. - The company is focused on improving its market value and has implemented measures to enhance shareholder value [12][17].

Core Viewpoint - Morgan Stanley has downgraded the earnings per share (EPS) estimates for China Duty Free Group (601888)(01880) by 13%, 7%, and 2% for this year, next year, and 2027 respectively, while also reducing revenue forecasts for 2025 to 2027 by 6% to 8% [1] Group 1 - The target price for China Duty Free Group has been raised from 55 yuan to 60 yuan, maintaining a "market perform" rating [1] - The demand for duty-free products has been weaker than expected due to a sluggish macroeconomic environment and intense channel competition, particularly on e-commerce platforms [1] - The gross margin for China Duty Free Group remains weak, especially in online sales [1] Group 2 - Morgan Stanley has lowered its operating profit forecast for this year by 12% due to weak gross margins and economic deleveraging [1] - The company is expected to see improved offline sales and profit margins after the Hainan Free Trade Port opens in mid-December this year, leading to a lighter downgrade in earnings estimates for the next two years [1]

Core Viewpoint - Huatai Securities reported that China Duty Free Group's revenue for the first half of the year was 28.15 billion yuan, a year-on-year decrease of 9.96%, and net profit was 2.6 billion yuan, down 20.81% [1] Financial Performance - Revenue for the first half of the year: 28.15 billion yuan, down 9.96% year-on-year [1] - Net profit: 2.6 billion yuan, down 20.81% year-on-year [1] - Deducted non-net profit: 2.6 billion yuan, down 19.8% year-on-year [1] - Corresponding non-net profit margin: 9.2%, down 1.1 percentage points year-on-year [1] Strategic Development - The company is accelerating its strategic transformation and actively expanding its boundaries to stimulate demand [1] - The establishment of city duty-free shops is progressing steadily [1] - Long-term benefits are expected from the return and incremental growth of certain optional categories due to the Hainan closure [1] Investment Rating - Huatai Securities maintains a "Buy" rating for the company [1] - Target price adjusted from 73.08 HKD to 78.55 HKD [1]