Against the backdrop of a generally weak global consumption environment, CTG DUTY-FREE's revenue stagnated in the third quarter, with net profit significantly declining year-on-year. Despite the pressure on performance, the company still plans to implement a mid-term dividend for the first time, distributing over 500 million yuan in cash dividends for the first three quarters.
Key points are as follows:
<ul>
<li>
Q3 single-quarter revenue was 11.711 billion yuan, a year-on-year decrease of 0.38%; revenue for the first three quarters was 39.862 billion yuan, a year-on-year decrease of 7.34%;
</li>
<li>
Q3 net profit attributable to shareholders was 452 million yuan, a significant year-on-year decline of 28.94%; net profit attributable to shareholders for the first three quarters was 3.052 billion yuan, a year-on-year decrease of 22.13%;
</li>
<li>
First-time implementation of mid-term dividends: plans to distribute cash dividends of 517 million yuan for the first three quarters (2.50 yuan per 10 shares), accounting for 16.95% of net profit attributable to shareholders for the first three quarters.
</li>
</ul>
<h2>Performance Continues to Face Pressure, Deteriorating Cash Flow is Worrisome</h2>
In the third quarter, CTG DUTY-FREE continued to show significant operational pressure. The year-on-year revenue decline narrowed to 0.38%, but net profit attributable to shareholders was only 452 million yuan, a dramatic year-on-year drop of 28.94%.
The weighted average ROE for Q3 was only 0.82%, down 0.36 percentage points from the same period last year, with shareholder returns at an extremely low level.
The cash flow situation is also not optimistic. The net operating cash flow for the first three quarters was 3.388 billion yuan, a year-on-year decrease of 33.62%. The company explained that this was mainly due to a reduction in sales collections.
Monetary funds decreased from 34.817 billion yuan at the beginning of the year to 31.969 billion yuan, a reduction of 2.848 billion yuan, although the absolute scale remains relatively ample.
Operating costs for the first three quarters were 26.889 billion yuan, a year-on-year decrease of 6.54%. Selling expenses were 6.457 billion yuan, a year-on-year decrease of 4.98%, but the selling expense ratio rose from 15.80% to 16.20%.
<h2>Hainan Duty-Free Sees Positive Growth, Channel Expansion Accelerates</h2>
Against the backdrop of overall performance pressure, there are noteworthy positive signals in Hainan's duty-free business. According to Haikou Customs data, Hainan's offshore duty-free sales in September 2025 increased by 3.4% year-on-year, marking the first positive growth in nearly 18 months.
During the reporting period, the company deepened the integration of &#34;duty-free + cultural tourism&#34; scenarios, introducing the first national exhibition of Pop Mart and the first pop-up Disney store in Sanya, attempting to activate consumption through a &#34;duty-free + experience + social&#34; composite model.
In response to the sluggish growth of the traditional duty-free market, CTG DUTY-FREE is accelerating its diversified channel layout. In the third quarter, the company opened new city duty-free stores in Shenzhen, Guangzhou, and Chengdu, all adopting a &#34;duty-free + taxable&#34; dual-track operating model.
From the balance sheet perspective, construction in progress increased from 972 million yuan at the beginning of the year to 1.487 billion yuan, an increase of 53%, indicating that the company is continuously increasing capital expenditure.
<h2>High Inventory and Negative Investment Income Present Dual Concerns</h2>
There are two additional details in the financial report worth noting. The inventory scale reached 17.219 billion yuan, although it slightly decreased by 129 million yuan compared to the beginning of the year, it still accounted for 22.81% of total assets.
Investment income turned into a loss of 53.63 million yuan, compared to a profit of 21.92 million yuan in the same period last year. This was mainly due to investment income from joint ventures and associates being -53.63 million yuan (compared to +18.81 million yuan in the same period last year). Long-term equity investments decreased from 3.670 billion yuan at the beginning of the year to 3.596 billion yuan, a reduction of 74.07 million yuan
Other current assets surged from 1.976 billion yuan at the beginning of the year to 4.447 billion yuan, an increase of 125%.
<h2>First Mid-term Dividend</h2>
Based on the performance for the first three quarters of 2025, the company will distribute a cash dividend of 2.50 yuan (tax included) for every 10 shares to all shareholders, totaling 517 million yuan, which accounts for 16.95% of the net profit attributable to the parent company for the first three quarters. This is the company's first mid-term dividend in history.
The company explained this move as &#34;enhancing the level of investor returns.&#34; As of the end of the reporting period, the equity attributable to the parent company was 55.674 billion yuan, an increase of 577 million yuan from the beginning of the year, with ample cash on hand to support dividend capability.
This dividend plan still requires approval from the shareholders' meeting. Historically, the company's dividend payout ratio has generally been between 30% and 40%. If this level is maintained for the entire year, it means that the performance in the fourth quarter and for the whole year will be crucial

601888

01880

CTG DUTY-FREE Q3 revenue was 11.711 billion yuan, a year-on-year decrease of 0.38%; net profit attributable to the parent company was 452 million yuan, a significant year-on-year decline of 28.94%. The company plans to distribute a cash dividend of 2.50 yuan (including tax) for every 10 shares to all shareholders, totaling 517 million yuan, accounting for 16.95% of the net profit attributable to the parent company for the first three quarters

- In the third quarter, China Duty Free Group reported stagnant revenue of 11.71 billion yuan, a year-on-year decline of 0.38%, and a significant net profit drop of 28.94% to 450 million yuan.  
- Despite ongoing operational pressures, the company plans to distribute a mid-term cash dividend of 517 million yuan, marking its first such initiative, which represents 16.95% of its net profit for the first three quarters.  
- The company is also diversifying its channels and has seen positive growth in its Hainan duty-free business, with sales increasing by 3.4% year-on-year in September 2025.

Wallstreetcn

CTG DUTY-FREE

CTG DUTY-FREE's net profit in the third quarter decreased by 28.9% year-on-year, planning to distribute 2.50 yuan for every 10 shares | Financial Report Insights