Figures from the Hong Kong Stock Exchange (correct at time of publication) showed a 2.47% decrease in stock price, with the Chinese retailer closing at HK$48.600 and opening at HK$47.950.

China Tourism Group Duty Free Corporation, the parent company of China Duty Free Group, has released preliminary reporting which shows double-digit decreases in operating income and profit for 2024, citing the market environment and industry cycles as key factors.

In a statement released to the Hong Kong Stock Exchange, CTFG noted: “Under the influence of various factors such as the market environment and industry cycle, the Company recognized an operating income of RMB56.492bn (£6.32bn) representing a year-on-year decrease of 16.36%; and a net profit attributable to shareholders of the Company of RMB4.263bn(£480m), representing a year-on-year decrease of 36.50% in 2024.”

CTFG added efforts to consolidate the expansion of its airport duty free operations had been successful , with revenue from duty free shops in Beijing airports (including Beijing Capital International Airport and Beijing Daxing International Airport) increasing by more than 115% year-on-year, and revenue from duty free shops in Shanghai airports (including Shanghai Pudong International Airport and Shanghai Hongqiao International Airport) increasing by nearly 32% year-on-year.

It pointed to continuing efforts to deepen its presence in the Hainan market, especially its “duty free+” shopping model, which forms part of a wider paradigm of duty free shops in the comprised of: tax-free + taxed; import + domestic; and offline + online models.

“The new shopping experience of “duty-free+”, created a new paradigm for development that deeply integrates culture, commerce, sports and tourism, resulting in a year-on-year increase of nearly two percentage points in the market share of Hainan’s offshore duty-free industry.”

Despite the poor performance, CTFG said it had stuck to its aims of: promoting stable business development, deepening reforms and innovations, improving coordination in market capturing, strengthening management, controlling cost, and enhancing quality and efficiency improvement.

Full year financial data for 2024 showed double-digit decreases across most major indicators.

Domestically speaking, this ethos has seemingly carried into 2025, with China Duty Free Group (CDFG) announcing a spate of downtown store openings in Shenzhen, Guangzhou, Xi’an and Fuzhou, the reopening of its Dalian downtown duty free shop, and as TRBusiness recently reported, winning the rights to operate duty free shops in Tianjin and Chengdu.

These moves fall under the auspices of  ‘Notice on Improving the City Duty Free Shopping Policy’, issued by China’s ministries in August last year, which permit the opening of one duty free shop in each of the eight cities of Guangzhou, Chengdu, Shenzhen, Tianjin, Wuhan, Xi’an, Changsha and Fuzhou.

“The Company will actively seize the favourable opportunities presented by vigorous national efforts to boost consumption and expand domestic demand comprehensively,” noted CTFG, adding: “We will persist to the principle of seeking progress while maintaining stability, promote stability through progress, remain focused on our main responsibilities and business, capture opportunities for business development, and strive to improve the operational quality and efficiency of the Company’s operations, driving the Company’s high- quality development.”

Key financial data (cont’d) for CTFG also showed a 2.71% decrease in total assets held by the Chinese retailer.

CTFG had also continued to promote development of its international business throughout 2024, with highlights being: the opening of boutique shops at Singapore Changi Airport and Hong Kong International Airport; the opening of a duty free counter for jewellery brands in Ginza, Tokyo; and a duty free shop in Sri Lanka.

“Implementing overseas promotion strategy of the “China chic” trend, we fulfilled the leading responsibility and mission of Chinese central state-owned enterprises in promoting global expansion and advancing the new paradigm of domestic and international dual circulation development, facilitating greater improvement for Chinese brands in the international market while achieving a win-win situation of sustainable development and cultural exchange,” said CTFG.

It made particular note of the importance of digitalisation in empowering its membership operation, releasing figures which showed cdc membership had exceeded 38 million in 2024, while the repurchase rate of customers had increased by 1 percentage point year-on-year.

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