Group 1 - The company, Guangbai Co., has opened its first city duty-free store in Guangzhou on August 26, 2025, in collaboration with China Duty Free Group and others [2] - The company invested 8.775 million yuan and holds a 19.5% stake in the duty-free store [2] - The city duty-free store business aligns with the company's retail main business and promotes the integration of cultural, commercial, and tourism industries, helping to create new business growth points [2]

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]

Group 1 - Lingnan Holdings (000524) closed at 11.38 yuan on May 30, 2025, down 4.13% from the previous week's 11.87 yuan, with a market cap of 7.627 billion yuan [1] - The stock reached a high of 12.03 yuan on May 27, 2025, and a low of 11.25 yuan on May 29, 2025 [1] - Lingnan Holdings ranks 5th out of 22 in the tourism and scenic area sector and 2012th out of 5146 in the A-share market [1] Group 2 - Lingnan Holdings, along with China Duty Free Group, Guangzhou Guangbai Co., Ltd., and Guangzhou Baiyun International Airport Co., Ltd., has jointly established China Duty Free (Guangzhou) Co., Ltd. with a registered capital of 45 million yuan [1] - Lingnan Holdings invested 8.775 million yuan, accounting for 19.50% of the registered capital [1] - The new company received its business license on May 22, 2025, and is located in Tianhe District, Guangzhou, with a focus on retail [2]

Core Viewpoint - The company has approved a resolution to jointly invest in the establishment of a duty-free company in Guangzhou, aiming to expand its presence in the duty-free retail market and enhance its business growth through collaboration with other major stakeholders in the industry [1][6][28]. Group 1: Investment Details - The company will invest CNY 8.775 million, accounting for 19.5% of the registered capital of CNY 45 million for the new company [2][19]. - The joint investment partners include China Duty Free Group, Guangzhou Baiyun International Airport Co., Ltd., and Guangzhou Guangbai Co., Ltd. [2][19]. - The establishment of the new company aligns with the government's initiative to promote duty-free shopping in major cities, enhancing consumer spending and tourism [28][30]. Group 2: Approval Process - The board meeting held on May 16, 2025, saw unanimous approval from the attending directors, with three directors abstaining due to conflicts of interest [4][8]. - Independent directors also supported the investment, emphasizing its alignment with the company's core business and potential for synergistic growth [3][31]. Group 3: Strategic Implications - The investment is expected to create new business growth points by integrating tourism and retail, thereby enhancing the company's overall market position [28][29]. - The new duty-free business model is anticipated to attract more tourists and increase consumer spending, contributing to the company's long-term strategic goals [28][30].

Core Viewpoint - The company has approved a resolution to jointly invest in the establishment of a duty-free company in Guangzhou, which aligns with its strategy to explore new business opportunities in the tourism and commerce sectors [1][2]. Group 1: Investment Details - The company will collaborate with China Duty Free Group, Guangzhou Guangbai Co., Ltd., and Guangzhou Baiyun International Airport Co., Ltd. to set up the Guangzhou Duty-Free Company with a registered capital of RMB 45 million [2]. - The company's investment amounts to RMB 8.775 million, representing 19.5% of the registered capital [2]. Group 2: Strategic Implications - This investment is aimed at accelerating the company's entry into new business models and enhancing its economic growth points, in line with the strategy of integrating culture, commerce, and tourism [2]. - The independent directors believe that this investment will strengthen the synergy within the industry chain and promote the integration of the cultural and commercial tourism sectors, creating new business growth opportunities [2].

Group 1 - Baiyun Airport plans to invest 4.5 million yuan to establish a duty-free company with China Duty Free Group and others, holding 10% of the new company's registered capital of 45 million yuan [2] - Guizhou Moutai has repurchased a total of 2.6421 million shares, accounting for 0.2103% of the total share capital, with a total payment of 4.05 billion yuan as of May 16, 2025 [3] - *ST Aonong has removed the delisting risk warning, and its stock will be suspended for one day on May 19, 2025, with a name change to Aonong Biological from May 20, 2025 [4] Group 2 - Ningbo Shipping confirms normal operations and has no undisclosed significant information, with its latest rolling P/E ratio at 18,811.36, significantly higher than the industry average of 9.61 [5] - Tunnel Holdings' controlling shareholder plans to increase its stake in the company by 250 million to 500 million yuan, not exceeding 2% of the total share capital [6] - Jianghan New Materials intends to repurchase shares worth 200 million to 400 million yuan at a price not exceeding 30 yuan per share, representing approximately 1.79% to 3.57% of the total share capital [7]

Core Viewpoint - In 2024, China Duty Free Group reported a significant decline in both revenue and net profit, primarily due to the collapse of its core market, the Hainan offshore duty-free business [1][2]. Revenue and Profit Decline - The company achieved a total revenue of 56.474 billion yuan, a year-on-year decrease of 16.38%, and a net profit attributable to shareholders of 4.267 billion yuan, down 36.44% year-on-year [1]. - The Hainan market experienced a drastic revenue drop from 39.65 billion yuan in 2023 to 28.892 billion yuan in 2024, reflecting a decline of 27.13% and reducing its contribution to total revenue from 58.71% to 51.16% [2]. Market Challenges - The decline in Hainan's performance is attributed to several factors: - Outbound tourism diversion as international flights resumed, leading consumers to prefer shopping in destinations like Japan and Southeast Asia [2]. - A downgrade in consumer spending and the rise of domestic brands, with the luxury goods market in China experiencing its first decline in 15 years [2]. - Increased competition with the number of duty-free operators in Hainan rising to six, disrupting the previously dominant position of China Duty Free [2]. Profit Pressure - Despite a nearly 2 percentage point increase in market share, profit margins faced significant pressure: - The gross margin for offshore duty-free business fell by 2.03 percentage points to 23.73% due to increased discounting [4]. - Fixed costs, including rising airport channel rents and inventory impairment losses of 740 million yuan, further compressed profit margins [4]. - In Q4, net profit attributable to shareholders plummeted to 348 million yuan, a staggering year-on-year decline of 76.9%, marking the worst performance of the year [4]. Business Structure Adjustment - In response to the downturn in Hainan, the company is diversifying its channels to balance losses and gains: - Airport duty-free sales grew, benefiting from the recovery of international flights, with revenues at Beijing and Shanghai airports increasing by 115% and 32% respectively [6]. - The company secured operating rights for ten new airport and port duty-free projects, enhancing its channel advantages [6]. International Expansion - To counter domestic competition, the company is accelerating its international expansion: - New openings include duty-free stores at Singapore Changi Airport and Hong Kong International Airport, as well as operations in Japan and Sri Lanka [8]. - A new cargo route from Milan to Haikou has been established, reducing product transport time to two days, facilitating global inventory management [8]. Emerging Channel Potential - The company has won operating rights for six new cities, increasing its total to 13 city duty-free stores, which are expected to contribute significantly to sales [10]. - The membership program has surpassed 38 million members, although the value of consumer reward points has declined for two consecutive years, indicating a need to enhance repurchase rates and average transaction values [11]. Future Challenges and Strategic Outlook - Short-term challenges include uncertainties in consumer recovery and the potential impact of aggressive discounting by competitors on industry profit margins [11]. - Long-term strategies focus on internationalization and digitalization, leveraging initiatives like the "Belt and Road" to expand into South Asia and collaborating with domestic brands to establish overseas duty-free channels [12][13].