Core Viewpoint - Hainan Airport's 2024 annual report shows a significant decline in revenue and net profit, attributed to a contraction in real estate development and the impact of the "Hainan Free Trade Port" policy, which is expected to provide growth opportunities in airport operations, free trade, and related industries [1][4][14]. Financial Performance - The company reported operating revenue of 4.368 billion yuan, a decrease of 35.40% year-on-year [1]. - The net profit attributable to shareholders was 459 million yuan, down 51.88% compared to the previous year [1]. Business Segments - The airport management business generated revenue of 1.820 billion yuan, accounting for 41.68% of total revenue, reflecting a strategic focus on core operations [3][7]. - The duty-free and commercial business recorded revenue of 226 million yuan, a decline of 15.67% due to slowed consumer growth and industry cycles [3]. - Real estate revenue fell to 916 million yuan, a significant drop of 69.52%, primarily due to market adjustments and project completion delays [4][5]. Strategic Transition - The company is actively reducing its reliance on real estate, having implemented a "de-real estate" strategy since 2020, focusing on airport operations and related services [5][6]. - Hainan Airport is transitioning towards developing its free trade and logistics capabilities, leveraging its airport's natural advantages [5][10]. Future Growth Potential - The company aims to capitalize on the "Hainan Free Trade Port" policy, which is expected to enhance operational efficiency and attract more industries [10][14]. - The ongoing expansion of Sanya Phoenix Airport is projected to increase passenger capacity by 30% upon completion in 2025, further supporting growth in airport operations [8][10]. - The establishment of a one-stop aircraft maintenance base has attracted significant interest, with a reported cargo value of 14.8 billion yuan in the first quarter of 2023, indicating strong demand for aviation services [11]. Policy Impact - The upcoming "Hainan Free Trade Port" closure is anticipated to bring favorable policies, including zero tariffs and low tax rates, which will significantly reduce operational costs for businesses [14][15]. - The implementation of the seventh freedom of the air will enhance Hainan's position as a domestic aviation hub, providing further growth opportunities for the airport [15].