Guotai Sea-Channel: Downtown duty-free is still in the early stages, and policy convenience and restoration of inbound passenger flow lay the foundation for growth.

Guotai Haitong released a research report stating that the current domestic duty-free market in China is still in the early stage of expanding stores, cultivating consumption habits, and continuously promoting shopping convenience. The current policies have completed the first round of key optimization in terms of the target audience, shopping quotas, and online reservations. There is still room for further deepening in areas such as shopping processes, efficiency in pick-up services, product categories, and the integration of online and offline channels. The policy dividend is expected to continue to be released. With the continuous improvement of brands and product categories and the continuous optimization of fulfillment logistics, the shopping penetration rate is expected to steadily increase from a low level and transform into significant new sales, further amplifying the synergistic value of leading companies in areas such as branding, supply chain, membership systems, and port networks.