Core Viewpoint - China Duty Free Group (China CDF) reported a decline in both revenue and net profit for the first half of 2025, primarily due to fluctuations in the Hainan offshore duty-free market and intensified industry competition [2][3]. Financial Performance - In the first half of 2025, China CDF achieved operating revenue of 28.151 billion yuan, a year-on-year decrease of 9.96% - The net profit attributable to shareholders was 2.599 billion yuan, down 20.81% year-on-year - The net profit after deducting non-recurring gains and losses was 2.595 billion yuan, a decline of 19.84% year-on-year [2]. Business Segments - Main business revenue reached 27.531 billion yuan, with offline revenue at 19.703 billion yuan and online revenue at 7.828 billion yuan [3]. - The Hainan offshore duty-free shopping amount was 16.76 billion yuan, a year-on-year decrease of 9.2%, indicating a still weak overall market demand - The number of duty-free shoppers was 2.482 million, down 26.2% year-on-year, while the average shopping amount per person increased by 23.0% to approximately 6,754 yuan [3]. Market Dynamics - The Hainan offshore duty-free market faced challenges, but measures such as "duty-free + cultural tourism" integration and digital marketing were implemented to stabilize the market [3]. - China CDF operates six offshore duty-free stores in Hainan, with sales showing signs of stabilization - The Sanya International Duty-Free City was recognized as a national AAAA-level tourist attraction, reflecting the success of the "duty-free + cultural tourism" strategy [3]. Digital and Channel Expansion - The number of members exceeded 45 million, with improved user conversion and repurchase rates [4]. - China CDF successfully won the operating rights for the outbound duty-free store at Guangzhou Baiyun International Airport T3 terminal and several other port duty-free stores - The company made significant progress in overseas expansion, entering the Vietnamese market with duty-free stores at Hanoi's Noi Bai International Airport and Phu Quoc International Airport [4]. Cost Management - China CDF demonstrated strong cost management capabilities, with sales and promotion expenses decreasing by 8.11% to 4.794 billion yuan - Administrative expenses fell by 7.03% to 1.045 billion yuan, and employee costs decreased by 11.21% to 1.545 billion yuan [5].