2025-11-24 01:46Summary of Conference Call Notes Industry and Company Involved - The discussion revolves around the duty-free industry, specifically focusing on Shanghai Airport and its duty-free operations, including major players like Dayang Duty-Free and China Duty-Free Group (CDFG) [1][3][4]. Core Points and Arguments - Bidding Process: Shanghai Airport is undergoing a bidding process for duty-free operations. Dayang Duty-Free remains a key player due to its ability to participate as a foreign entity, maintaining a competitive edge [1][3]. - Dispute on Terms: There is a disagreement between Shanghai Airport and CDFG regarding rental fees and lease terms. CDFG aims to reduce the number of stores to increase commission rates, while the airport prefers to introduce more competitors to enhance overall competitiveness [1][3]. - Current Competitors: Currently, only Dayang and CDFG have purchased bidding documents and are preparing to participate. Other competitors have not been able to prepare adequately due to time constraints, leading to a relatively stable market landscape in the short term [1][4]. - Commission Structure: Shanghai Airport is expected to continue using a base rent plus a commission rate model, with an anticipated increase in overall commission rates to reflect performance growth, although specific details have yet to be disclosed [1][5]. - Operational Pressure: Increasing commission rates may add operational pressure. However, Shanghai Airport plans to adjust its channel strategy to mitigate costs, such as shifting resources from online to offline sales and optimizing supply chain management [1][6]. Additional Important Information - Online Sales Suspension: Dayang's online direct mail service in Shanghai has been suspended due to customs inspections revealing non-compliance with regulatory requirements. The future of this service depends on the progress of rectifications and customs reviews [1][7]. - Rainbow Bridge Airport Segment: The Rainbow Bridge Airport segment has been separately bid, but its sales volume is only about 10% of that of Pudong Airport, indicating a limited impact on the overall business layout. The participation of third parties in this segment remains uncertain [2][8].