On March 27th, China Tourism Group Duty Free Corporation Limited (CTG DUTY-FREE) disclosed its 2023 annual report. Financial data shows that in 2023, CTG DUTY-FREE’s operating income was approximately 67.54 billion yuan, a year-on-year increase of 24.08%; its net profit attributable to shareholders was about 6.714 billion yuan, a year-on-year increase of 33.46%.
CTG DUTY-FREEpointed out that during the reporting period, indicators such as net profit attributable to shareholders of the listed company, net profit attributable to shareholders of the listed company excluding non-recurring gains and losses, and basic earnings per share excluding non-recurring gains and losses increased by more than 30% year-on-year. This was mainly due to the company seizing opportunities from the recovery of consumption and the relaxation of entry and exit policies, vigorously stimulating consumption vitality, continuously optimizing product structure, and effectively improving operational efficiency, significantly boosting the company’s main business and continuously repairing profitability.
In terms of revenue, in 2023, CTG DUTY-FREE’s duty-free goods sales revenue was about twice that of taxable goods sales revenue. Specifically, duty-free goods sales revenue was approximately 44.231 billion yuan, a year-on-year increase of 69.91%; taxable goods sales revenue was approximately 22.344 billion yuan, a year-on-year decrease of 20.12%.
CTG DUTY-FREE pointed out that in 2023, 177 domestic and foreign well-known brands were added in the Hainan region, focusing on launching global limited editions, global debuts, and CTG DUTY-FREE exclusive products. Benchmarking against first-line brand operations and service standards, the “S Store” project was launched, with sales in 14 “S Stores” pilot stores increasing by 65% year-on-year.
Of note, during the reporting period, CTG DUTY-FREE’s operating income in the Hainan region was approximately 39.65 billion yuan, far exceeding that of the Shanghai region, which was 17.821 billion yuan. Currently, there are a total of 6 duty-free operators and 12 duty-free shops in Hainan’s outlying islands. After experiencing a market downturn in 2022, the outlying island duty-free market continued to recover in 2023. The annual sales of outlying island duty-free shops were restored to over 90% of the level in 2021.
Regarding international channels, the company strategically advanced its overseas projects and pursued duty-free operation rights through organized bidding processes. This resulted in successfully securing the operation rights for a duty-free store at Siem Reap-Angkor International Airport in Cambodia, which is now operational. Additionally, the company secured the bid to operate the Qeelin store at Changi Airport in Singapore and initiated duty-free outlets on Adora Magic City and Mediterranea cruise ships.
