After the close on March 30, China Tourism Group Duty Free Corporation Limited (A-share code: SH:601888; H-share code: HK:01880), the world’s largest travel retail operator, released its 2025 annual report. During the reporting period, the company recorded revenue of RMB 53.694 billion (USD 7.56 billion), down 4.92% year-on-year, and net profit attributable to shareholders of RMB 3.586 billion (USD 0.50 billion), down 15.96% year-on-year.
By region, revenue from the Hainan region reached RMB 28.537 billion (USD 4.01 billion), representing a year-on-year decrease of 1.23%; revenue from the Shanghai region totalled RMB 12.010 billion (USD 1.69 billion), down 25.10% year-on-year.
During the reporting period and recently, key developments in channel expansion and business innovation included:
—— Completion of the acquisition of DFS Greater China retail business
In January 2026, the company announced that it had reached an agreement with DFS under which its wholly owned subsidiary would acquire DFS’s Greater China retail business. At the same time, it signed a strategic cooperation memorandum with DFS’s controlling shareholder, the French luxury group LVMH.
On March 19, 2026, China Duty Free International completed payment of the consideration for the acquisition at a preliminary price of USD 294 million. As certain conditions stipulated in the Framework Agreement were not met, the DFS Hong Kong Canton Road (Sun Plaza) store was excluded from the acquisition.
Meanwhile, under a general mandate, the company issued 5,474,300 new H shares to Delphine SAS and 3,463,300 new H shares to Shoppers Holdings HK Limited at a subscription price of HKD 77.21 per share, totalling 8,937,600 new H shares. (Both entities are affiliated with LVMH Group and the Miller family, the major shareholders of DFS, and have officially become shareholders of China Tourism Group Duty Free through this subscription.)
In addition, the company continued to deepen its presence in the Hong Kong and Macau markets by opening three new stores and made its first entry into the Vietnamese market, securing 10-year supply agreements at Hanoi and Phu Quoc airports.
—— Strengthening port channel advantages and full operation of downtown duty-free stores
The company systematically advanced bids for duty-free operating rights, successfully securing 16 projects, including inbound and outbound duty-free stores at Terminal 2 and Satellite Hall S2 of Shanghai Pudong International Airport, inbound and outbound duty-free stores at Shanghai Hongqiao International Airport, inbound and outbound duty-free stores at Terminal 3 of Beijing Capital International Airport, and the outbound duty-free store at Terminal 3 of Guangzhou Baiyun International Airport.
Regarding downtown duty-free stores, all 13 stores that obtained operating rights have been opened or are already in operation.
—— Deepening presence in Hainan and promoting the integration of “duty-free + cultural tourism”
Seizing the historic opportunity of Hainan’s island-wide customs closure, the company successfully developed the Sanya International Duty Free Shopping Complex into the country’s first national AAAA tourist attraction centred on duty-free retail.
Through collaborations with more than ten high-traffic IPs, including POP MART and Disney, alongside government consumption vouchers, the company helped stabilise and rebound regional sales in Hainan, increasing its market share in the offshore duty-free market.
—— Accelerating the development of the debut economy and building flagship store clusters
During the year, the company introduced more than 140 debut products and opened 27 brand flagship stores. Key highlights included the world’s largest Dior Beauty “New Look” flagship store and the largest Huawei Selected Store in China, forming a flagship store cluster that comprehensively caters to diverse consumer groups.
Construction of key integrated complexes in Hainan progressed steadily:
- Haikou International Duty Free City Project: In 2025, the project received investment of RMB 413 million (USD 58.1 million), bringing cumulative investment since commencement to RMB 8.511 billion (USD 1.20 billion). Plot 5 of the Haikou International Duty Free City has commenced operations, while the main structures of the InterContinental and EVEN hotels on Plot 4 have been topped out.
- Phase I, Plot 2 of Sanya International Duty Free City Project: During the reporting period, the project received investment of RMB 467 million (USD 65.7 million), bringing cumulative investment since commencement to RMB 2.313 billion (USD 325.4 million). The commercial section in Zone C has commenced operations, and the main structure of the hotel section has been topped out, with electromechanical installation, interior decoration, and landscaping works progressing comprehensively.
On the trading day following the release of the financial report (March 31), the company’s A-share price edged down 0.68% to RMB 70.38 per share, with a total market capitalisation of RMB 146.2 billion (USD 20.6 billion). Its H-share price rose 1.48% to HKD 64.95 per share, with a total market capitalisation of HKD 135.0 billion (USD 17.3 billion).
About China Tourism Group Duty Free Corporation Limited
China Tourism Group Duty Free Corporation Limited (formerly China International Travel Service Corporation Limited) is a publicly listed company controlled by China Tourism Group Corporation Limited and a large joint-stock enterprise focused on travel retail (duty-free) operations. Established in 2008 by China International Travel Service Group through contributions from China International Travel Service Head Office and China Duty Free Group, in partnership with OCT Group, the company was listed on the Shanghai Stock Exchange A-share market in 2009. Operating within the tourism industry, the company primarily engages in duty-free retail and the development of tourism commercial complexes. Its wholly owned subsidiary, China Duty Free Group, is the largest duty-free operator in China, engaged in the wholesale and retail of duty-free products such as tobacco, alcohol, cosmetics, and fragrances. Its subsidiary, CITS Investment, is responsible for the investment and development of tourism destination commercial complexes.
| Source: Official financial report
| Image Credit: Official website
| Editor: Luxeplace
