China Duty Free: Impairment of goodwill recognized for key subsidiaries, with net profit attributable to parent in 2025 decreasing by 15.97% year-on-year.

On March 20, China Tourism Group Duty Free Corporation Limited (China Duty Free, 601888.SH) released its 2025 annual performance report. Financial data shows that China Duty Free’s total operating revenue was approximately 53.694 billion yuan (RMB, the same below), a year-on-year decrease of 4.92%; net profit attributable to the parent company was approximately 3.586 billion yuan, a year-on-year decrease of 15.97%; net profit attributable to the parent company after deducting non-recurring items was approximately 3.544 billion yuan, a year-on-year decrease of 14.48%.

China Duty Free pointed out that during the reporting period, in accordance with the requirements of enterprise accounting standards, the company made impairment provisions for goodwill of key subsidiaries, which had a certain impact on the company’s net profit. Preliminary calculations indicate that after excluding the impact of goodwill impairment losses, the net profit attributable to the parent company’s owners in the fourth quarter of 2025 increased by 150.63% year-on-year.

The performance forecast shows that in the fourth quarter of 2025, China Duty Free achieved operating income of 13.831 billion yuan, a year-on-year increase of 2.81%; and net profit attributable to the parent company’s owners was 534 million yuan, a year-on-year increase of 53.49%.

China Duty Free noted that during the reporting period, the company’s gross margin and operational efficiency of its main business continued to improve, with the gross margin of the main business increasing by 0.51 percentage points year-on-year and inventory turnover increasing by approximately 10% year-on-year. Among them, in the fourth quarter of 2025, the gross margin of the main business increased by 4.12 percentage points year-on-year.

China Duty Free stated that recently, the company fully seized the opportunity of the implementation of the new duty-free policy for Hainan offshore islands and the formal closure of Hainan Island. During the Spring Festival, key stores in Hainan set new records for sales and customer traffic. At the same time, the company steadily advanced the planned equity and asset acquisitions of key projects, achieving efficient transitions and openings of key airport stores, effectively capturing the domestic consumption rebound and the incremental demand from global tourists.

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