China Tourism Group Duty Free (601888) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 31.27 billion, down 12.81% year-over-year; net profit attributable to shareholders was RMB 3.29 billion, down 14.94%.

• Gross margin improved to 32.94%, up 2.62 percentage points year-over-year.

• Cash flow from operating activities decreased by 49.74% year-over-year to RMB 4.31 billion.

• Market share in the Hainan duty-free sector increased, with expansion in both domestic and international channels.

• Domestic duty-free stores saw revenue more than double year-over-year, with notable growth in Beijing and Shanghai airport stores.

Financial highlights

• Revenue: RMB 31.27 billion (down 12.81% YoY); net profit: RMB 3.29 billion (down 14.94% YoY).

• Operating cash flow: RMB 4.31 billion (down 49.74% YoY).

• Basic and diluted EPS: RMB 1.5893 (down 14.94% YoY).

• Gross margin: 32.94% (up 2.62 percentage points YoY); Q2 gross margin: 33.29%.

• Total assets: RMB 75.84 billion; net assets: RMB 53.83 billion.

Outlook and guidance

• Focus on core duty-free business, project execution, and risk management amid competition and policy changes.

• Continued investment in key projects, digital transformation, and ESG practices to drive growth.