China Tourism Group Duty Free (601888) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 53.69 billion, down 4.92% year-over-year; net profit attributable to shareholders was RMB 3.59 billion, down 15.96% year-over-year.

• Gross margin for duty free sales increased by 1.29 percentage points to 36.97%.

• The company maintained its leading position in the duty free sector, expanded its channel network, and completed strategic acquisitions, including the signing to acquire DFS Greater China retail business in early 2026.

• Significant progress was made in digitalization, product innovation, and supply chain optimization.

Financial highlights

• Operating income: RMB 53.69 billion, down 4.92% year-over-year.

• Net profit attributable to shareholders: RMB 3.59 billion, down 15.96% year-over-year.

• Operating cash flow: RMB 6.06 billion, down 23.69% year-over-year.

• Basic and diluted EPS: RMB 1.7334, down 15.96% year-over-year.

• Gross margin for duty free sales: 36.97%, up 1.29 percentage points.

• R&D expenses increased 352.74% to RMB 89.98 million, reflecting accelerated digital investment.

Outlook and guidance

• The company aims to leverage the Hainan Free Trade Port policy, deepen integration of duty free and cultural tourism, and expand product categories and digital capabilities.

• Plans include further international expansion, especially in Hong Kong, Macau, and Southeast Asia, and integration of the acquired DFS Greater China business.

• Focus on supply chain, digital operations, and member ecosystem to drive high-quality growth.