Guotai Haitong: Newly established border entry duty-free shops to expand the duty-free market size.

Guotai Haitong published a research report stating that the "Notice on Matters Related to Port Entry Duty-Free Shops" has been issued, setting up and adjusting a batch of port entry duty-free shops. The setting up of port entry duty-free shops will continue at 11 ports including Haikou Meilan International Airport and Shekou Cruise Center. The establishment of new port entry duty-free shops is expected to synergize with downtown duty-free shops to expand the domestic duty-free market. Recommended targets: China Tourism Group Duty Free Corporation (601888.SH), Wangfujing Group (600859.SH); related targets: Zhuhai Zhumian Group (600185.SH). Guotai Haitong's main points are as follows: Event Recently, the Ministry of Finance, the Ministry of Commerce, the Ministry of Culture and Tourism, the General Administration of Customs, and the State Administration of Taxation jointly issued the "Notice on Matters Related to Port Entry Duty-Free Shops," setting up and adjusting a batch of port entry duty-free shops. Companies eligible to participate in bidding are enterprises approved by the State Council with qualifications for operating duty-free goods, including: China Duty Free Group Co., Ltd., Shenzhen State-owned Duty Free Commodity (Group) Co., Ltd., Zhuhai Duty Free Enterprise Group Co., Ltd., China Foreign Service Co., Ltd., China Travel Service Assets Management Co., Ltd., Wangfujing Group Co., Ltd. A significant increase in the number of port entry duty-free shops facilitates duty-free shopping consumption for inbound travelers This time, 41 ports including Wuhan Tianhe International Airport each set up a port entry duty-free shop. Among them, after the establishment of the duty-free shop at Hengqin Port, residents traveling from mainland China to Macau are allowed to purchase a certain amount of duty-free goods (within 15,000 yuan) at the port entry duty-free shop. Meanwhile, port entry duty-free shops will continue to be set up at 11 ports including Haikou Meilan International Airport and Shekou Cruise Center. The setting up of port entry duty-free shops at 3 ports including Qingdao Liuting International Airport, Guangzhou East Railway Station, and Jiangmen Port will cease. After the passenger route at Xiamen Gaoqi International Airport is transferred to Xiamen Xiang'an International Airport, the setting up of the port entry duty-free shop at Xiamen Gaoqi International Airport will cease. Port entry duty-free and downtown duty-free are expected to work together to expand the inbound and outbound duty-free market According to the "Notice on Improving Duty-Free Shop Policy to Support Consumer Recovery" issued by the Ministry of Finance and others, starting from November 1, 2025, the categories of goods operated by port exit duty-free shops, port entry duty-free shops, and downtown duty-free shops will be expanded to include mobile phones, mini drones, sporting goods, health foods, over-the-counter drugs, pet food, etc. Passengers are allowed to pre-order at downtown duty-free shops and pick up at port entry duty-free shops. For cities where downtown duty-free shops have port entry duty-free shops, passengers can pre-order at downtown duty-free shops, make payments and pick up at port entry duty-free shops upon entry, which will be considered as shopping at port entry duty-free shops and will be governed by the relevant policies of port entry duty-free shops. Risk warning: The policy implementation falls short of expectations, consumer demand is weak, and industry competition intensifies.