CDFG’s Sanya International Duty Free City shopping complex in Haitang Bay, Hainan.

China Tourism Group Duty Free Corporation Limited (CTG) says it “paid more attention to the balance between profit and scale” in the first half of 2023, after announcing its preliminary financial indicators.

Gross profit margin lifted by 7.81 percentage points in the six months of this year versus the second half of 2022, with a 3.67 percentage point lift in Q2 2023 quarter-on-quarter, according to a statement posted on the Shanghai Stock Exchange by the parent of China Duty Free Group.

Operating income grew 29.68% year-on-year to RMB35.85 billion/US$5.01 billion, predominantly due to sales from the domestic tourism market.

Operating profit fell 6.60% year-on-year to RMB4.95bn, while net profit dipped 1.87% year-on-year to RMB3.86bn.

In a statement, the company notes it has seized opportunities presented by the revival in consumption and liberalised entry-exit policies in the country, adding it would “continue to promote business layout optimisation and structural adjustment”.

“The core competitiveness of the enterprise continues to increase,” said the company, adding “the main business is developing steadily”.

“The company is seizing the opportunity to continuously optimise the supply of goods to drive sales revenue, especially offline sales.”