China Free (601888.SH) reported first-half results, with net profit attributable to mother of 3.283 billion yuan, a year-on-year decrease of 15.07%

According to Zhitong Finance App, China Finance App (601888.SH) released its 2024 semi-annual report. During the reporting period, the company achieved operating income of 31,265 billion yuan, a year-on-year decrease of 12.81%; net profit attributable to shareholders of listed companies was 3.283 billion yuan, a year-on-year decrease of 15.07%; net profit attributable to shareholders of listed companies deducted non-recurring profit and loss of 3.238 billion yuan, a year-on-year decrease of 16.00%; and basic earnings per share.

The company launched the creation of a demonstration site for “honest management and quality service” at the Sanya International Duty Free Shop, striving to set a benchmark in service, management, value creation, etc., and promote the overall system improvement of management and service levels. During the reporting period, about 50 new brands were introduced in the Hainan region. Boutique brands such as Prada (Prada), Gucci (Gucci), Lacoste (Lacoste) at Haikou International Duty Free Mall, Glashutte (Glashutte), and Coachtopia (Coach City) were opened, and the brand layout continued to improve. The company is also actively building a new “Guochao+Olympics” sports consumer power, opening a Paris Olympics licensed product store at Haikou Meilan International Airport to promote comprehensive cooperation among Guochao fragrance, sports, cultural tourism and other brands to meet the diversified and personalized consumption needs of consumers. During the reporting period, the company's dominant position in the Hainan outlying islands duty-free market was further stabilized, and its market share increased steadily.

In terms of domestic channels, the company successfully won the bid for Guangzhou Baiyun International Airport T1 Terminal Outbound Duty Free Shop, Kunming Changshui International Airport Outbound Duty Free Shop, Shandong Port Qingdao Cruise Home Port Passenger Transport Center and Yantai Port Passenger Terminal Port Outbound Duty Free Shop to expand port channel growth; the company actively recovered the entry/exit duty-free business, and the revenue of the company's domestic duty-free shops increased by more than 100% year-on-year, and profitability continued to improve. In terms of overseas channels, the company implemented the “Belt and Road” national strategy, promoted the overseas business layout in an orderly manner, opened the Aida Mordu Cruise Duty Free Shop and the Singapore Changi Airport Qeelin (Kirin) boutique, and won the bid for the management rights of the Singapore Changi Airport MCM boutique and the Hong Kong International Airport Kirin boutique. At the same time, the company actively promoted “Guochao” overseas, signed a strategic cooperation agreement with the Jinjiang Municipal People's Government, and continued to expand upstream brands and downstream channel resources while strengthening government cooperation and policy research, making every effort to promote the launch of the “Guochao” brand in overseas markets.