CDFG’s Sanya International Duty Free Shopping Complex in Hainan.

China Tourism Group Duty Free Corporation (1880.HK) – the largest travel retailer by far in China, and among the world’s biggest – saw revenue slightly down by -2% in the first half of 2026. However, operating profit climbed into positive territory (+0.9%) while net profit attributable to shareholders jumped by +19.5%.

The company, better known in travel retail as China Duty Free Group (CDFG) generated H1 revenue of RMB27.6bn / $4.08bn, with an operating profit of RMB3.74bn / $552.6m. This continues the turnaround seen in the final quarter of 2025, during a full year where the key figures in the P&L were all negative.

The key financials for H1 2026 show a turnaround is in progress.

CDFG’s improved financial footing was helped by “fully capitalising on the opportunities presented by the island-wide special customs operations in the Hainan Free Trade Port and the implementation of new offshore duty-free policies,” said the company in a statement issued to the Stock Exchange of Hong Kong on Tuesday. This is one of two exchanges where CDFG is listed, the other being Shanghai.

On the cusp of a new growth era for CDFG?

In March, CTG Duty Free’s Chairman, Yunjun Fan, described 2025 as a period “defined by both challenges and opportunities”. He said: “Faced with a complex and volatile macro environment… we leveraged our strategic focus to withstand market fluctuations and employed a pragmatic approach to tackle development challenges.”

So far in 2026, this approach seems to have reaped the right results. The stock was up by +8% in the past week, but still down -35.7% year-to-date. The company has continued to consolidate its pole position in the Hainan market, where it claims it is growing its market share. In the wider China market, CDFG had a share of almost 80% in 2024 (source: Data100), and that has almost certainly increased. The retailer is also benefiting from the revival of the Asia-Pacific aviation market, particularly at some key Chinese hubs.

CDFG has stepped up its drive for operational improvements while enhancing its duty-free stores in key airports. Meanwhile, the acquisition of DFS’s retail business in Greater China is claimed to have “delivered solid integration results and favourable economic returns following the closing”.

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