China Tourism Group Duty Free wins Shanghai airport duty-free bids

China Tourism Group Duty Free Co., Ltd. announced that its wholly-owned subsidiary, China Duty Free Group (CDFG), has been awarded the bid to operate duty-free stores at Shanghai Pudong International Airport (T2 and S2 Satellite Hall) and Shanghai Hongqiao International Airport (T1). The contracts, covering a total area of 9,630.98 square meters at Pudong and 2,470.55 square meters at Hongqiao, are for an initial 5-year term with an option for a 3-year extension, commencing January 1, 2026, and concluding on December 31, 2033.

The concession's fee structure is a "monthly fixed fee plus a percentage of actual monthly sales." For Pudong Airport, the monthly fixed fee is 3,090 yuan per square meter, with sales commissions ranging from 8% to 24% depending on the product category. Hongqiao Airport's monthly fixed fee is 2,827 yuan per square meter, with sales commissions between 8% and 22%.

To manage this operation, CDFG will invest 1.02 bn yuan in a joint venture with Shanghai Airport, holding a 51% stake, while Shanghai Airport will hold 49%. This new entity will operate the duty-free stores. The project is expected to enhance China Tourism Group Duty Free's channel advantages in core domestic airports and positively impact its future operating performance.