China Tourism Group Duty Free (601888) investor relations material

Executive summary

• 2025 was marked by robust performance amid a volatile macro environment, with strategic focus on high-quality development and resilience.

• Key initiatives included deepening presence in Hainan, expanding channel networks, and executing the acquisition of DFS's Greater China retail business.

• Innovation in business models, service quality, and digitalization drove new growth drivers and enhanced competitive strengths.

• The company maintained its role as a central SOE, aligning with national strategies and supporting consumption trends.

Financial highlights

• Revenue for 2025 was RMB53,694 million, down 4.92% year-over-year; gross profit was RMB17,052 million, down 1.70%.

• Net profit attributable to equity shareholders was RMB3,644 million, a decrease of 15.7% year-over-year.

• Gross profit margin improved to 31.76% (up 1.04 percentage points), while net profit margin declined to 6.79%.

• Total assets stood at RMB74,891 million, with cash and cash equivalents at RMB33,740 million.

• Equity-liability ratio improved to 22.70% from 25.19% year-over-year.

Outlook and guidance

• The company aims to shift from scale leadership to capability leadership in 2026, focusing on supply chain, product innovation, and digital operations.

• Plans include further integration of DFS's Greater China business, expansion in Hainan, and strengthening global presence.

• Anticipates continued growth in China's luxury and consumer markets, with domestic luxury spending expected to rise 7–9% in 2026.