CDF Mall Growth of 210% | The 2021 Mid-Term Performance Report of CDF

September 1,2021

CDF (China Duty Free Group, stock code: SH.601888) released its 2021 Mid-Term Performance Report on August 27. During the reporting period, the company’s offshore duty-free business had grown markedly, driven a growth in operating income to RMB 35.526 billion, an increase of 83.98% and 43.5%, respectively, over the same periods in 2020 and 2019 before the pandemic (2019: RMB 24.763 billion). Its net profit attributable to shareholders of listed companies had grown to RMB 5.359 billion, an increase of 475.92% and 62.8%, respectively, over the same periods in 2020 and 2019 (2019: RMB 3.291 billion).

Due to the various discounts and promotions the company’s product business gave during the reporting period, its main business generated a gross profit margin of 37.75%, a decrease of 4.85 percentage points from the same period last year.

According to the latest release of the Moodie Davitt Report on the global duty free sector, CDF had evolved into the world’s largest travel retailer in 2020 and had further consolidated its leading position worldwide in the first half of 2021.

At present, CDF operates five offshore duty-free stores in Hainan Province, among which CDF Mall has become a new landmark and popular tourist destination in Hainan, and also the largest retail tourism complex in the world.

During the reporting period, CDF’s duty-free stores in Sanya City (including CDF Mall and Sanya Phoenix International Airport CDF Shop) generated an operating income of RMB 18.53 billion and a net profit attributable to the parent company of RMB 2.558 billion, increases of 210.01% and 330.22%, respectively, over the same period in 2020. Hainan Duty-free Co., Ltd. (including Haikou MOVA Duty Free Shop, Haikou Meilan Airport Duty Free Shop, and Qionghai Bo’ao Duty Free Shop) generated an operating income of RMB 7.705 billion and a net profit attributable to the parent company of RMB 511 million, increases of 154.17% and 253.43%, respectively, over the same period in 2020.

In addition, Haikou International Duty Free City, Sanya International Duty Free City Phase I No. 2 Land Parcel and Hainan International Logistics Center Phase I are making steady headway.

In May 2021, the First China International Consumer Products Expo kicked off in the Hainan International Convention and Exhibition Center and attracted more than 650 companies and 1,300 brands from 69 countries and regions to participate in the event. Hainan Duty Free Shop, a subsidiary of CDF, was an exhibitor at the expo. CDF was also an organizer of the official forum at the expo.

In June of this year, CDF filed an IPO application with HKEX and planned to list its H shares on the Hong Kong Stock Exchange. This move can help the company build an international capital operation platform and access global channels and industrial chain resources.

Thom Browne, Swarovski, Van Cleef & Arpels and many other luxury brands have opened stores at CDF Mall in the past several months. FENDI and Salvatore Ferragamo, etc., have given their stores at CDF Mall major face-lifts.

CDF has been vigorously expanding its online business, growing its membership base, and optimizing its membership platform functions in recent years. In November 2020, CDF launched the CDF Membership WeChat applet to create a high-value online traffic portal. The applet has attracted more than 9 million old and new members to register and bind their information.

| Image Source: CDF

| Writer: Jiaqi Wang


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