Core Viewpoint - JX Luxventure Group Inc. has been recognized for its commitment to social responsibility and innovation in the wholesale trade and tourism sectors, receiving two prestigious awards at the 2025 China Brand Boao Summit [1][2]. Company Overview - JX Luxventure Group Inc. is headquartered in Haikou, China, and operates in the wholesale trade sector, focusing on duty-free and cross-border consumer goods [3]. - The company provides integrated solutions in wholesale trade, including logistics, supply chain management, and technology solutions to enhance the distribution of tourism-related products [3]. Awards and Recognition - The company was awarded the 2025 (Industry) Most Socially Responsible Enterprise Award at the 2025 China Brand Boao Summit [1]. - CEO Sun "Ice" Lei received the 2025 (Industry) Brand Influence Figure Award, highlighting the company's leadership in the industry [1][2]. Commitment to Sustainability - The company emphasizes its dedication to innovation, sustainability, and social impact through its proprietary aggregated supply chain system, which prioritizes carbon reduction [2]. - Initiatives in education, rural revitalization, and global philanthropy reflect the company's commitment to creating shared value for society [2].

Market Overview and Consumer Transition - The Chinese luxury travel market has shown significant recovery and transformation post-pandemic, with expectations that by 2025, China will become the largest luxury market globally, contributing half of the world's luxury consumption [1][37] - In 2019, Chinese consumers spent RMB 717.6 billion (USD 98.98 billion) on overseas luxury goods, accounting for one-third of global luxury consumption [1][37] - Hainan's duty-free shopping sales reached RMB 43.76 billion (USD 6.04 billion) in 2023, but are projected to decline by 29.3% in 2024 due to the resurgence of international travel and the influence of daigou [1][38] Consumer Behavior and Digital Payment - High-net-worth outbound travelers in China spend an average of over RMB 50,000 (USD 6,900) annually on luxury goods, with 38.2% spending between RMB 50,000 and RMB 200,000 [2] - Digital payment methods are prevalent, with WeChat Pay accounting for 56% of transactions, followed by bank cards at 30% and Alipay at 6% [2] - Duty-free e-commerce platforms are enhancing user engagement through digital tools, with Alipay's mini-program achieving over RMB 100 million (USD 14.5 million) in daily sales [2] Social Media and Precision Marketing - Social media platforms like Xiaohongshu, Douyin, and WeChat significantly influence consumer purchasing decisions, with Xiaohongshu having over 300 million monthly active users [3] - Brands are leveraging data integration across platforms for targeted marketing, exemplified by Louis Vuitton's successful live-streaming event on Xiaohongshu [3] - The collaboration between a resort in Macau and payment platforms demonstrates the effectiveness of combining travel predictions with multi-screen advertising, achieving a 5.67 ROI [3] Future Trends and Emerging Opportunities - Popular travel destinations for 2025 include Japan, Thailand, Singapore, and Hong Kong, with a growing focus on experiential luxury driven by Gen Z consumers [4] - Trends such as cultural immersion, sustainable travel, and the rise of digital nomadism are emerging, indicating a shift towards unique and personalized travel experiences [4] - Brands are encouraged to utilize digital tools and local experiences to meet the demand for "experiential luxury" among high-net-worth travelers [4] Insights into High-Spending Outbound Travelers - High-spending outbound travelers are defined as those spending RMB 300,000 (USD 41,000) or more annually, primarily from tier 1 and new tier 1 cities [50] - The demographic profile shows a significant presence of millennials and Gen Z, with 40.6% born in the 1990s and 4.3% after 2000, indicating a shift towards younger consumers [69] - The average travel duration for high-spending travelers has increased, with 77.2% traveling for more than five days, reflecting a trend towards longer stays in popular destinations [66] Transportation Preferences - Air travel is the preferred mode of transportation for international journeys, with over 95% of travelers opting for flights to most destinations in 2024 [59] - The reliance on car rentals has drastically decreased, while train travel has seen a slight increase in certain locations [59][61] - The top three destinations for high-spending travelers in 2024 are Hong Kong, Tokyo, and Bangkok, all located in Asia, highlighting a regional preference [55]

We are also watchful about Hainan's free-trade-zone policy and impact to duty-free operators. The Hainan government has not yet released any details, but we expect it to do so later this year as Central government targets opening the FTZ in 2025. Recap of March-2025 Hainan offline DF trends: Avg daily sales Rmb94mn (-5% YoY vs -13% YoY in 2M25); Daily shoppers 17.7K (-26% YoY) and spending per shopper Rmb6.5K (+28%). The ASP growth could be helped by more electronic product sales which might not translate t ...