CHINA. China Tourism Group Duty Free Corporation (CTG), parent company of China Duty Free Group, reported a -7.34% year-on-year decrease in operating income to CNY39,862 million (US$5.6 billion) for the nine-month period ended 30 September.
Net profit declined -22.13% to CNY3,051 million (US$429 million).
The company turned in a more positive trading performance in Q3 with operating income almost flat (-0.38%) year-on-year at CNY11,711 million (US$1,647 million), though net profit was down -28.94% to CNY452 million (US$63.6 million).
Assessing the latest quarterly performance, CTG homed in on the +3.4% year-on-year rise in Hainan offshore duty-free market sales in September (based on data from Haikou Customs), noting that this marked “a return to positive growth after nearly 18 months”.
CTG also singled out a series of firsts in the Hainan market. These included the nationwide debut exhibition of Pop Mart’s Dimoo Shapes in Nature and Disney Store’s first pop-up shop in Sanya.
“Through a composite model of ‘duty-free + experience + social interaction’, the duty-free shopping space was upgraded into a cultural tourism destination that is visitable, playful and shareable,” noted CTG.
Also in Hainan, Phase Three work on the Sanya International Duty-Free Shopping Complex “continued to progress steadily”, added CTG.
The company also highlighted China Duty Free Group downtown duty-free store openings in Shenzhen, Guangzhou and Chengdu, under the ‘duty-free + duty-paid’ model.
These stores, noted CTG, “integrated local culture and characteristics to create new consumption scenarios that deeply blend ‘international quality + local characteristics’, covering both domestic and international customer groups and effectively unlocking consumption potential”.
The group also cited the recent opening of the cdf Macau Avenida de Almeida Ribeiro store at M8, a landmark commercial complex in the heart of the Macau Peninsula’s business district, as well as the construction of a new departures duty-free store at Macau International Airport as part of an investment drive.
CTG added, “At the same time, the high-quality operation of the duty-paid project at Lanzhou Zhongchuan International Airport provided an excellent example for subsequent promotion to more airports and commercial projects. ✈
*Click here for our major story from yesterday as Chinese regulators announced a series of proactive measures designed to improve the country’s duty-free shop policy.
