Investment Overview - The company has decided to jointly invest with China Duty Free Group to establish a new company named CDF Guangzhou Baiyun Airport Duty-Free Co., Ltd. to operate duty-free shops at the T3 terminal of Guangzhou Baiyun Airport, enhancing service levels and international influence [4][16] - The registered capital of the new company is RMB 45 million, with China Duty Free Group contributing RMB 22.95 million (51%) and the company contributing RMB 22.05 million (49%) [4][9] Approval Process - The investment does not require approval from the board of directors or shareholders' meeting as it does not meet the threshold for such reviews [2][6] Company Structure and Management - The new company will have a board of directors consisting of 5 members, with 3 appointed by China Duty Free Group and 2 by the company. The chairman will be one of the directors recommended by China Duty Free Group [11][13] - The management structure includes a general manager and a deputy general manager, with the general manager and financial officer recommended by China Duty Free Group and the deputy general manager by the company [11][13] Market Context and Strategic Fit - The investment aligns with national policies encouraging the development of duty-free businesses, which supports the expansion of duty-free shops at ports and cities [16] - Establishing the joint venture is seen as a strategic move to enhance the airport's core competitiveness and is consistent with the long-term development strategy of the airport [16] Financial Implications - The investment is expected to create synergies between the two companies, leveraging their strengths to optimize operations and enhance profitability in the duty-free segment [16]

Core Viewpoint - Lingnan Holdings is expanding its duty-free business in Guangzhou by establishing a joint venture with China Duty Free Group, Guangzhou Baiyun International Airport, and Guangzhou Guangbai Co., Ltd. to operate city duty-free stores [2] Group 1: Company Initiatives - The company has formed a partnership to set up China Duty Free (Guangzhou) Co., Ltd. for the operation of city duty-free stores in Guangzhou [2] - As of May 2025, the registration procedures for the new company have been completed [2] - The initiative aims to leverage the policies supporting Guangzhou's development as an international consumption center [2] Group 2: Market Strategy - The company plans to quickly integrate supply chain resources through collaboration with its partners to enter the city duty-free market [2] - The strategy includes cultivating a "tourism + retail" business model and upgrading the "pan-tourism" industry ecosystem [2] - This move is intended to inject innovative momentum into the company's traditional main business [2]

Core Viewpoint - The Guangzhou North Station duty-free complex project, initially expected to be operational by 2025, is facing significant challenges, including slow construction progress and the likely failure of its core city duty-free store plan [2][4]. Group 1: Project Development - The project was initiated in 2021 through an agreement between the Huadu District government and China Tourism Group, aiming to create a comprehensive complex with a city duty-free store [2]. - Recent on-site investigations reveal that aside from two residential towers nearing completion, the commercial component is lagging behind [2]. - The only approved city duty-free store in Guangzhou is set to open 40 kilometers away at the Zhujiang New Town International Financial Center, indicating that the North Station duty-free store is likely to remain a concept [2]. Group 2: Economic Impact - The failure of the duty-free store plan significantly impacts Huadu, as the project was intended to leverage the North Station's transportation hub advantages and proximity to Baiyun Airport (10 kilometers away) to create the Greater Bay Area's first duty-free complex [2]. - The absence of a duty-free store undermines Huadu's vision of developing a world-class project and poses further challenges to the North Station's economic elevation [2][4]. Group 3: Urban Planning Insights - This situation serves as a warning for urban commercial planning, emphasizing the need to consider policy feasibility and execution capabilities when pursuing high-profile projects [4]. - The scarcity of city duty-free stores necessitates strategic location choices, with non-core areas needing to optimize policy resources and supporting facilities to compete [4]. - The North Station's elevation bottleneck is highlighted, as it has not achieved ideal operational levels, with limited train services and insufficient connectivity to other Greater Bay Area transport hubs [4]. Group 4: Future Considerations - Huadu must reassess its regional commercial positioning and explore unique commercial pathways beyond duty-free stores [4]. - The future direction of the duty-free complex project will test the collaboration between government and enterprises, serving as a critical case for evaluating the scientific and flexible nature of urban commercial planning [4].