China Duty Free Plummets, Company Responds—Lost Part of Shanghai Airport Operations

This article is reprinted from Qianjiang Evening News

On February 24th, China Duty Free Group (601888), the leading duty-free company, hit the daily limit down, closing at 85.18 yuan per share. Its Hong Kong stock also fell 10.34%, closing at HKD 82.35 per share.

The sharp decline in China Duty Free Group’s stock may be related to the outcome of the bidding results for the duty-free operations at the two major international airports in Beijing and Shanghai. Changes in industry competition patterns have raised concerns among investors.

In response, a staff member from China Duty Free Group’s securities department stated that stock price fluctuations are influenced by multiple factors. Regarding the duty-free operation rights at Beijing and Shanghai airports, the company has indeed lost part of the operation rights at Shanghai Airport (600009), and has previously issued relevant announcements. As for the Spring Festival sales data, the company only has single-day sales figures from areas like Sanya and has not yet reached the threshold for issuing an official announcement. Official data should be considered as the standard.

On December 17, 2025, China Duty Free Group and Shanghai Airport announced that China Duty Free Group won the duty-free operation rights for Pudong Airport T2/S2 and Hongqiao Airport T1, while Dufry won the rights for Pudong Airport T1/S1.

Public information shows that as a global leader in travel retail and the dominant player in China’s duty-free industry, China Duty Free Group holds licenses for all scenarios, with nearly 80% market share domestically and over 82% market share in Hainan’s offshore duty-free market, backed by strong channels and supply chain barriers.

However, in recent years, intensified industry competition, changes in airport operation rights, and the impact of the consumer environment have put its performance under pressure. In 2024, both revenue and net profit declined year-on-year. In the first three quarters of 2025, revenue was 39.862 billion yuan, down 7.34% year-on-year, and net profit attributable to the parent was 3.052 billion yuan, down 22.13%.

“Loss of airport operation rights is more of an emotional amplifier,” industry insiders believe. The recent daily limit down may have been influenced by short-term emotional shocks from U.S. tariff policies, combined with profit-taking after the Spring Festival consumption expectations were met, along with overall sector weakness, further amplifying the stock’s decline.

By Yu Yebo, our reporter