Core Viewpoint - The upcoming closure of Hainan Free Trade Port presents both opportunities and challenges for China Duty Free Group (CDFG), as it faces declining performance despite favorable policies [1][6]. Group 1: Company Performance - CDFG's revenue and net profit declined by 10% and 20% year-on-year, respectively, in the first half of the year [1]. - In Hainan, CDFG's revenue fell to 288.92 billion yuan, a 27% decrease compared to the previous year, with the region's revenue share dropping from 70% in 2021 to 51% in 2024 [9]. - The average spending per customer in Hainan's duty-free market decreased from 7368 yuan in 2021 to 5800 yuan in 2024, reflecting a significant drop in consumer spending [12]. Group 2: Market Dynamics - The expansion of the "zero tariff" product list from 1900 to approximately 6600 items will enhance CDFG's cost advantages in procuring luxury and daily consumer goods [3]. - However, popular duty-free items like cosmetics and alcohol remain on the import tax list, which may limit CDFG's pricing advantages compared to regular taxed channels [3]. - The competitive landscape is expected to intensify as more cities establish city duty-free stores, with CDFG securing 75% of the new market in cities like Guangzhou and Shenzhen [14][15]. Group 3: Consumer Behavior and Trends - The price advantage of duty-free shopping is diminishing, with the price difference between duty-free and taxed channels narrowing from 25% to 5%-10% post-closure [5]. - Increased international travel and the rise of cross-border e-commerce platforms are diverting consumer spending away from traditional duty-free shopping [12]. - CDFG is actively conducting promotional activities to stimulate sales, which may further impact profitability [12]. Group 4: Future Outlook - CDFG is at a critical transition from being driven by policy benefits to relying on internal capabilities for growth [16]. - The company's future success will depend on its ability to leverage the opportunities presented by the Hainan Free Trade Port closure while navigating the challenges posed by increased competition and changing consumer preferences [16].

Core Viewpoint - The Hainan Free Trade Port will officially start its customs closure on December 18, 2025, aiming to enhance international connectivity and facilitate trade and investment [1][3]. Trade Policy Measures - The implementation of a more favorable "zero tariff" policy will increase the proportion of zero-tariff goods from 21% to 74%, allowing for tax-free circulation of goods within the island [1][4]. - Trade management measures will be relaxed, allowing for open arrangements for certain currently prohibited or restricted imports [2][4]. - The establishment of ten "second-line" ports will facilitate the passage of goods entering the mainland, enhancing efficiency in customs procedures [2][4]. Regulatory Framework - A high-efficiency regulatory model will be adopted for zero-tariff goods, ensuring low intervention and high efficiency in supervision [2][4]. - The policy documents related to these measures will be published shortly and will take effect on the day of the full customs closure [2][4]. Economic Impact - Hainan's actual foreign investment reached 102.5 billion yuan, with an annual growth rate of 14.6%, indicating a robust economic environment [10]. - The proportion of the four leading industries (tourism, modern services, high-tech industries, and tropical agriculture) in Hainan's GDP has increased by 13.7 percentage points over five years, now accounting for 67% of the total [11]. Infrastructure and Preparedness - The necessary infrastructure for customs closure has been completed and passed national inspections, ensuring readiness for the new policies [11]. - Comprehensive pressure testing is being conducted to ensure that the new policies can be effectively implemented while maintaining regulatory oversight [11].

Core Viewpoint - The news highlights the positive impact of the Hainan Free Trade Port's full island closure on the tourism market, particularly benefiting companies in the duty-free industry and related sectors [1][5]. Group 1: Market Reaction - China Duty Free Group (China CDF) saw its A-share price hit a new high of 70.84 CNY per share, reaching the daily limit on July 24, 2023 [1]. - In the Hong Kong market, the company's stock rose over 19%, closing at 64.4 HKD per share, marking its best performance since October 2024 [2]. - The stock market activity was driven by the release of policy benefits, with various stocks in the Hainan Free Trade Zone and duty-free sectors experiencing significant gains [2]. Group 2: Policy Details - The closure will implement a "zero tariff" policy, increasing the proportion of zero-tariff goods from 21% to 74% for imports [4]. - Trade management measures will be relaxed, allowing for the import of previously restricted goods [4]. - The closure aims to enhance the efficiency of customs supervision, ensuring smooth implementation of the new policies [4]. Group 3: Tourism Market Potential - Hainan is expected to attract 97.2 million domestic and international tourists in 2024, an 8% increase from the previous year, with a significant rise in inbound tourists [5][6]. - The provincial government is actively working to establish Hainan as an international tourism consumption center, leveraging the opportunities presented by the closure [5][6]. - Experts predict that the closure will enhance Hainan's tourism appeal through expanded visa-free entry and optimized duty-free shopping policies, attracting more international visitors [6].

Core Viewpoint - Zhuhai Zhimian Group is transitioning its strategic focus from real estate to core duty-free business, aiming to enhance its competitiveness in the consumer sector [3][4][5]. Group 1: Company Overview - The company held an investor briefing on June 4, 2025, to discuss its 2024 annual performance and Q1 2025 results [1][2]. - Key executives, including the chairman and president, participated in the meeting to address investor inquiries [1]. Group 2: Financial Performance - In Q1 2025, the company reported a revenue of 919 million yuan and a net loss attributable to shareholders of 91 million yuan [5][6]. - The company’s total liabilities and total assets are both over 4 billion yuan, indicating a significant financial restructuring [4]. Group 3: Strategic Transition - The company completed a major asset restructuring by the end of December 2024, planning to gradually exit the real estate sector [3][4]. - The strategic focus will now be on the duty-free business, leveraging resources from its indirect controlling shareholder, Huafa Group [3][5]. Group 4: Market and Policy Environment - The company is closely monitoring policy changes in the Hainan Free Trade Port and the Hengqin Guangdong-Macao Deep Cooperation Zone, which are key areas for future business development [5][6]. - Recent government policies aimed at expanding domestic demand and consumption are expected to positively impact the company's duty-free and consumer business [8].

Group 1 - The company completed a significant asset restructuring by the end of December 2024, gradually exiting the real estate business and transforming its strategic focus to core duty-free operations, centered around the large consumption industry [1] - The company aims to leverage the resource advantages and industrial synergy capabilities of its indirect controlling shareholder, Huafa Group, to concentrate on the "duty-free + commercial management + trade" business development system [1][2] - The company has committed to an orderly exit from its existing real estate business within five years, accelerating its de-real estate strategy [1][2] Group 2 - The company has made strategic plans for the development of its large consumption business, including expanding duty-free operations in key national strategic areas such as Hainan Free Trade Port and Hengqin Guangdong-Macao Deep Cooperation Zone [2] - The company is integrating large shopping center assets to enhance consumer experiences and create a new flagship commercial brand [2] - The company is strengthening its supply chain resources to build a comprehensive platform covering procurement, warehousing, and digital marketing, forming a closed-loop business model of "promoting trade through duty-free and vice versa" [2] Group 3 - The company is benefiting from national policies aimed at expanding domestic demand and promoting consumption, which provide strong momentum for its duty-free and large consumption business development [3] - As of May 30, 2025, the passenger flow through the Gongbei Port between Guangdong and Macao exceeded 50 million, a year-on-year increase of 12%, which is expected to positively impact the company's duty-free sales [3] - The company is managing the Hongwan Fishing Port project, which covers an area of approximately 720,000 square meters, with an average annual fish unloading volume exceeding 60,000 tons, focusing on smart fishing port and industrial upgrades [3]

Core Viewpoint - Four state-owned enterprises, including Lingnan Holdings, Guangzhou Baiyun International Airport, and China Duty Free Group, are collaborating to establish a duty-free store in Guangzhou, aiming to enhance consumer spending and tax revenue [1][2][3]. Group 1: Company Collaboration - Lingnan Holdings, Guangzhou Baiyun International Airport, and Guangzhou Baiyun International Airport will jointly invest in a new company, China Duty Free Products (Guangzhou) Co., Ltd., with a registered capital of 45 million yuan [2][3]. - Each company will contribute to the registered capital, with Lingnan Holdings and Guangzhou Baiyun International Airport investing 8.775 million yuan (19.5%) and 4.5 million yuan (10%) respectively [2][3]. - The board of the new company will consist of seven directors, with China Duty Free Group appointing four, and the other three companies appointing one each [3]. Group 2: Market Context - The establishment of the duty-free store aligns with a government initiative to stimulate consumer activity and expand domestic demand, as outlined in a notification from five ministries [4]. - In 2024, China Duty Free Group won bids for multiple duty-free projects, including new city stores in Shenzhen, Guangzhou, Xi'an, Fuzhou, Chengdu, and Tianjin [4]. Group 3: Financial Performance - China Duty Free Group reported a revenue of 56.474 billion yuan in 2024, a decline of over 16% year-on-year, with a net profit of 4.267 billion yuan, down over 36% [5]. - Guangzhou Baiyun International Airport achieved a revenue of approximately 7.4 billion yuan in 2024, a 15% increase, and a net profit of about 930 million yuan, up 110% [5]. - Lingnan Holdings reported a revenue of 4.309 billion yuan, a 25.43% increase, and a net profit of 150 million yuan, up 116.08% in 2024 [5].

中信证券股份有限公司 关于 格力地产股份有限公司 重大资产置换暨关联交易 之 独立财务顾问 二零二五年五月 声明和承诺 释 义 本持续督导意见中，除非文意另有所指，下列简称具有如下含义： 《中信证券股份有限公司关于格力地产股份有限公司重大 本持续督导意见 指 资产置换暨关联交易之 2024 年度持续督导报告书》 格力地产、公司、本公 格力地产股份有限公司，于 2025 年 4 月 28 日变更公司名称 指 免税集团、珠海免税集 指 珠海市免税企业集团有限公司 中信证券股份有限公司（以下简称"中信证券"）接受委托，担任格力地产 股份有限公司（以下简称"格力地产"或"上市公司"或"公司"）重大资产置 换暨关联交易的独立财务顾问。本独立财务顾问按照证券行业公认的业务标准、 道德规范，本着诚实信用、勤勉尽责的态度，出具本持续督导意见。 诺上述有关资料均为真实、准确和完整的，不存在虚假记载、误导性陈述或者重 大遗漏，并承担因违反上述承诺而引致的个别和连带的法律责任。 的专业意见与上市公司披露的文件内容不存在实质性差异。 督导意见所做出的任何投资决策而产生的相应风险，本独立财务顾问不承担任何 责任。 意见中列载的信息和对 ...

Core Viewpoint - Gree Real Estate has officially changed its name to Zhuhai Duty-Free Group (Rights Protection), marking its complete exit from the real estate sector and a shift towards new business areas such as duty-free and commercial management [2][4]. Company Transition - The transition of Gree Real Estate is driven by Zhuhai's state-owned assets, with the company now under the control of Huafa Group, which is expected to handle the disposal of existing projects more professionally than Gree Real Estate could have done alone [2][9]. - Gree Real Estate's historical performance has been poor, with a cumulative loss of nearly 4 billion yuan over three years from 2022 to 2024, primarily due to declining gross profit margins and significant asset impairment provisions [4][5]. Financial Performance - The company has faced severe cash flow issues, with cash and cash equivalents amounting to 5.065 billion yuan, while short-term borrowings and current liabilities total 7.862 billion yuan, indicating a significant short-term debt pressure [5]. - Gree Real Estate's revenue has been heavily reliant on real estate, with annual revenues fluctuating between 1.5 billion and 3 billion yuan from 2012 to 2016, contrasting sharply with Gree Electric's revenue in the hundreds of billions [4]. Market Challenges - The duty-free market is highly competitive, with China Duty Free Group holding a dominant position, increasing its market share in Hainan's duty-free market by nearly 2 percentage points in 2024 [11]. - The competitive landscape in the Guangdong-Hong Kong-Macao Greater Bay Area poses additional challenges, as both Shenzhen and Zhuhai duty-free markets compete for consumer attention, alongside Macau's duty-free shopping [11]. Future Outlook - Gree Real Estate has committed to exiting its real estate holdings within five years and focusing on duty-free, commercial management, and trade [7]. - The company is currently in the process of restructuring and rebranding, with its new website under development to reflect its new business focus [7].

Group 1 - The company reported its Q1 2025 earnings, showing a revenue of 16.746 billion yuan, a year-on-year decline of 10.96%, and a net profit attributable to shareholders of 1.938 billion yuan, down 15.98% year-on-year [1] - The Hainan market remains under pressure, but the company is actively optimizing operations, with inventory improving continuously. As of the end of Q1 2025, inventory stood at 15.751 billion yuan, a decrease of 9.21% from the beginning of the year [1] - The company's gross profit margin for Q1 2025 was 32.98%, a slight year-on-year decrease of 0.33 percentage points, while the sales expense ratio was 13.12%, a slight increase of 0.28 percentage points [1] Group 2 - The number of visa-free countries and international flight volumes are increasing, leading to a positive trend in airport duty-free business. Duty-free store revenue at Beijing airports grew over 115% year-on-year, while Shanghai airports saw a nearly 32% increase [2] - The company is responding to policy changes by adding city duty-free store projects, with 13 foreign exchange commodity duty-free stores transitioning to city duty-free stores within three months, enhancing the synergy between various sales channels [2] - The company is optimistic about the growth of duty-free business in Hainan post-border closure, with city duty-free business expected to contribute to performance in upcoming quarters [3]

Investment Rating - The report maintains a "Buy" rating for the company [9][10]. Core Insights - In Q1 2025, the company reported revenue of 16.746 billion yuan, a year-on-year decrease of 10.96%, and a net profit attributable to shareholders of 1.938 billion yuan, down 15.98% year-on-year. The non-recurring net profit was 1.936 billion yuan, reflecting a 15.81% decline year-on-year [2][6]. - The forecast for net profit attributable to shareholders for 2025-2027 is 4.296 billion, 4.383 billion, and 4.524 billion yuan, respectively, corresponding to current price-to-earnings ratios of 30.53, 29.92, and 28.99 times [2][6]. Revenue Analysis - The sales trend for Hainan offshore duty-free shopping is improving, with a year-on-year sales decrease of 11% in Q1 2025. The number of shoppers decreased by 28% year-on-year, while the average transaction value increased by 23%. The decline in shopper numbers is primarily due to a decrease in conversion rates [6]. - The number of inbound and outbound travelers in Q1 2025 reached 163 million, a 15.3% year-on-year increase, which is expected to drive steady growth in revenue from port stores [6]. Profitability Analysis - The company's gross margin and expense ratio remained stable, with a gross margin decrease of 0.33 percentage points and a period expense ratio decrease of 0.20 percentage points. The net profit margin decreased by 0.67 percentage points [6]. Industry Outlook - The duty-free and travel retail sectors are crucial components of the tourism industry, which is expected to benefit from favorable development prospects and trends. The company is well-positioned to capitalize on new growth opportunities in the duty-free sector [6]. - The tourism industry is a significant part of China's economy and is expected to be a key driver of domestic demand growth, supported by policy initiatives and consumer preferences [6]. Future Growth Strategy - The company aims to achieve steady revenue growth by expanding regional markets, diversifying product offerings, enhancing consumer experiences, and optimizing store operations [6].