The amount of duty-free shopping in Hainan from January to June 2023 was 26.318 billion yuan ($3.6 billion), a year-on-year increase of 24.4%, with a total of 3.733 million duty-free shoppers, a year-on-year increase of 45.4%.
On August 24th, China Duty Free (CDF) released its 2023 semi-annual report. During the reporting period, the company achieved an operating revenue of 35.858 billion yuan ($4.9 billion), a year-on-year increase of 29.68%. It recorded an operating profit of 4.953 billion yuan ($680.6 milliin), a decrease of 6.50% compared to the previous year, and a net profit attributable to shareholders of listed companies of 3.866 billion yuan ($531.2 million), a decrease of 1.83%.
Furthermore, CDF’s main business gross profit margin steadily increased during the first half of 2023, showing a 7.83% increase compared to the second half of the previous year, with a 3.72% increase from the first quarter to the second quarter. CDF stated that it benefited from the gradual recovery of the domestic tourism market, which drove continuous growth in sales revenue, especially in offline sales. However, it was also affected by exchange rate fluctuations, resulting in increased operating costs.
According to previous data released by the Commerce Department of Hainan Province, the total sales of offshore duty-free shops in Hainan reached 32.396 billion yuan ($4.45 billion) in the first half of 2023, a year-on-year increase of 31%. According to statistics from Haikou Customs, the amount of duty-free shopping in Hainan from January to June 2023 was 26.318 billion yuan ($3.6 billion), a year-on-year increase of 24.4%, with a total of 3.733 million duty-free shoppers, a year-on-year increase of 45.4%.
CDF stated that in Hainan, it has improved the overall gross profit level by implementing measures such as unified pricing across the entire island, optimizing promotional discounts, and improving the sales structure of product categories. It has also introduced more than 90 brands on its online platform in the first half of the year, including Chinese domestic beauty, household goods, and pet food, which have brought additional sales growth.
