China Tourism Group Duty Free Corporation Limited2025 Environmental, Social and Governance Report
Environmental, Social and
Governance Report
2025
China Tourism Group Duty Free Corporation LimitedStock Abbreviation：CTG DUTY-FREEA Share Stock Code：601888.SHH Share Stock Code：01880.HK
Report Preparation Notes
Source of InformationThe information provided in the Report have been obtained fromour official documents, reports or relevant public materials ofthe company and its subsidiary. Unless otherwise specified, thecurrencies involved in the Report are all measured in CNY.
Release Form of the Report
The electronic version of this Report can be downloaded from thecompany’s official website or obtained by following the WeChatofficial account of “CTG DUTY-FREE Investor Relations”. ThisReport is published in Simplified Chinese, Traditional Chineseand English. In the event of any discrepancy between the threeversions, the Simplified Chinese version shall prevail.
Environmental, Socialand Governance Report
Stock Abbreviation: CTG DUTY-FREEStock Code: 601888.SH 01880.HK
China Tourism Group DutyFree Corporation Limited
This report is the fifth Environmental, Social and GovernanceReport (hereinafter “ESG Report”, “this Report” or “the Report”)issued by China Tourism Group Duty Free Corporation Limited(hereinafter “CTG DUTY-FREE”, “the company”, or “we”).
Reporting Scope
Unless otherwise stated, the scope of content disclosed in theESG Report is consistent with that of the company’s consolidatedfinancial report.Reporting PeriodThe period of this Report is from 1 January to 31 December 2025.Unless otherwise specified, the data in this report are as of the endof 2025 or for this period.Basis of PreparationThis Report is prepared in accordance with the ESG MetricsSystem for ESG Reports of Listed Companies Controlled byCentral State-owned Enterprises issued by the State-ownedAssets Supervision and Administration Commission of the StateCouncil (the “SASAC”), Guidelines No. 14 of Shanghai StockExchange for Self-Regulation of Listed Companies – SustainabilityReport (Trial) (“Sustainability Report (Trial)”), and the Environmental,Social and Governance Reporting Code (“ESG Code”), AppendixC2 to the Rules Governing the Listing of Securities on the MainBoard of The Stock Exchange of Hong Kong Limited (“Hong KongStock Exchange”), and with reference to the following rules:
? The Guidelines for State-owned Enterprises Directly under
the Central Government on Fulfilling Corporate SocialResponsibilities issued by the SASAC;? The Guidelines No. 1 for Application of Self-regulation Rules
for Listed Companies – Standardised Operation issued by theShanghai Stock Exchanges (the “SSE”);? The Guidelines on Corporate Social Responsibility Reporting
in China released by Chinese Academy of Social Sciences(“CASS-ESG 6.0”)? Global Reporting Initiative’s Sustainability Reporting Standards
(“GRI Standards”)? The Ten Principles of the United Nations Global Compact? United Nations Sustainable Development Goals (SDGs)Reporting PrinciplesMateriality: We identified key ESG issues through materialityassessment, the process and results of which have been disclosedin this report.Quantitative: For those indicators need calculation, calculationsources have been disclosed in this Report.Balance: This ESG report should provide an unbiased picture ofthe company’s performance, and to ensure that the informationdisclosed truthfully reflects the company’s performance inenvironmental, social and governance aspects.Consistency: We follow a consistent approach for disclosurestatistics and maintain the same disclosure statistics for this reportin respect of information previously disclosed in the report for lastyear to the largest extent.
2025
Report Preparation Notes
Contact InformationAddress: No.2A-1, Dongzhimenwai Xiaojie, DongCheng District,
Beijing, China.Phone: 010-8447 8888Email: cdfir@ctg.cn
Report Preparation NotesLetter from the ChairmanKey Sustainability PerformanceMetricsHonors and AwardsStatement of the Board ofDirectorsBasic information of the Company
AppendixGlossary of TermsESG MetricsIndex
Robust Governance System for Long-term Stable OperationsEnhancing Risk Management and InternalControls, and Upholding Business EthicsEnhancing Information Security andImplementing Privacy Protection
Employee Rights and Promoting TheirInterestsOperational Safety and Physical andMental HealthEnhancing Our ComprehensiveTraining System to Support Employeeevelopment
Principles ofGovernance
People
Topic 1Continuing to Expand the Company’s OverseasPresence and Distribution Network as a GlobalTravel Retailer for Selected Brands
Overseas Retail ExpansionEnhancing Channel ExpansionHelping Chinese Brands Accelerate TheirOverseas ExpansionCapital Markets EngagementTalent Development
Topic 2
Blending Traditional Culture to CraftImmersive Shopping Adventures
Sanya International Duty-Free ShoppingComplex: Evolving from Shopping Mallto Scenic DestinationHaikou International Duty-Free ShoppingComplexIntangible Cultural Heritage Activities
Upholding Original Beliefs and Mission toEnsure Trusted Business OperationsRobust, Green and Intelligent SupplyChainEngaging in Good Initiatives to Act as aResponsible Corporate
Prosperity
Environmental Compliance ManagementAddressing Climate Change to Protectthe EnvironmentGreen and Low-Carbon Operations for aBetter Life
Planet
CONTENTS
Letter from the Chairman
Letter from the Chairman
Mr. FAN YunjunChairmanMarch 2026
Dear stakeholders,The year 2025 marked the conclusion of China’s 14th Five-Year Plan.Amidst profound and complex shifts in the domestic and internationallandscape, CTG DUTY-FREE is steadfast in upholding its core valuesof being “courageous, professional efficient, cooperative, innovative,”while remaining committed to “Integrity in Operations and Excellence inService.” We have pressed forward with our sustainable developmentstrategy, maintaining steady and sustained progress on our path tobecoming a globally leading digital-intelligent travel retail operator,and continually meeting society’s growing aspirations for a better life.On behalf of the Board of Directors of CTG DUTY-FREE, I would liketo express my heartfelt thanks to those who have been long-timesupporters of the company.
Leading with Responsibility: Driving High-qualityDevelopmentAs a vanguard of Chinese enterprises expanding globally, ourinternational journey embodies the close alignment between nationalstrategy and corporate growth. It represents both a proactive responseto upgrades to consumption and an essential pathway to developinginternational markets. The company established its first overseassubsidiary in 2013, initiating its global presence. Over the past twelveyears, we have expanded steadily, accelerating internationalisationover recent years. In 2025, we participated in the Shanghai StockExchange’s European roadshow. We have now established integratedcapabilities for channel expansion, brand globalisation, retail operations,market development, and talent cultivation, enabling our transition froma ‘single-model’ approach to ‘omni-channel operations,’ and elevatingtarget markets from ‘duty-free retail’ to ‘travel retail’ and ‘premiumretail.’Beyond introducing international brands to meet Chinese consumerdemand, we have deepened our ‘China-chic globalisation’ strategy,facilitating the expansion of premium domestic brands worldwide.Leveraging our extensive global distribution network and internationalplatform strengths, we empower Chinese brands to navigate globalmarkets.
Acting with Purpose: Building Hainan’s New Legacy
18 December 2025 saw the commencement of the Hainan FreeTrade Port island-wide customs closure operation. This high-levelinitiative signifies a new phase in Hainan’s development and opens afresh chapter for of CTG DUTY-FREE after over a decade of deep-rooted commitment to the region. Seizing this strategic opportunity,the company established the Hainan Centre of Excellence (“HainanCOE”). With a core mission of “Integrated Coordination, Quality andEfficiency Enhancement, and Foundation Strengthening,” the HainanCOE elevates operational efficiency and governance precision throughupgraded management structures, uniting our development efforts tosolidify the company’s leadership in global travel retail and underpinningour high-quality growth.Culture as the Foundation: Curating Next-Gen Duty-Free Experiences
On 29 April 2025, cdf Sanya International Duty-Free ShoppingComplex, located on Haitang Bay, Sanya, Hainan, being honouredas a National 4A Tourist Attraction. This marked the world’s first high-grade tourist attraction developed with “duty-free commerce” at itscore, representing a significant milestone for the company in integratingcultural tourism with consumption. The Complex is reshaping Hainan’stourism consumption benchmarks through its matrix of internationalluxury brands, world-class architectural artistry, and immersiveshopping environments, injecting fresh impetus into the development ofthe Hainan International Tourism Consumption Centre.Following UNESCO recognition of Chinese Spring Festival in 2025, wedug deep into our traditional cultural heritage. Our six cdf Hainan stores
collaborated to create a vibrant festive atmosphere through a trifectaof folk culture, shopping promotions, and cultural tourism experiences.This seamless integration of duty-free shopping with traditional Chineseculture offered consumers an unforgettable cultural celebration.
Innovation as the Engine: Fueling Value Creation
Digital transformation stands as the company’s core initiative inenhancing operational efficiency and unlocking our value creationpotential. Throughout 2025, the company accelerated the developmentof its digital infrastructure. By optimising innovation systems, deepeningdata platform capabilities, advancing Project Nebula (星云项目), andrefining supply chain management, we have injected robust momentuminto our digital and intelligent evolution. Our One ID membership systemhas surpassed 140 million registered user data points, establishing itselfas an industry-leading, scalable data asset repository. The full launchof Project Nebula has enabled a sophisticated data empowermentframework. This is driving deeper data value mining and applicationinnovation, providing precise market demand insights, optimising salesconversion pathways, and systematically enhancing the contextualservice capabilities of our data products – ultimately fuelling the growthof our online business.Governance as the Cornerstone: Bolstering SustainableGrowthWe continue to place sustainable development governance at our core,integrating it into strategic decision-making and daily managementto drive the synergistic development of environmental, social, andeconomic benefits. We uphold rigorous corporate governance,strengthen risk management, and internal controls, adhere to ethicalbusiness practices, and fortify defences to information security andprivacy protection, thereby laying a solid foundation for the company’slong-term, stable operations. We remain steadfast in conducting ourbusiness with integrity, enforcing rigorous supply chain compliance, andadvancing our supply chains towards greener and smarter practices.Meanwhile, we actively fulfil our social responsibilities, harnessingcollective goodwill to support rural revitalisation and shared prosperity,contributing to sustainable societal development.In terms of employee care, we prioritise employee rights and theirphysical and mental well-being, enhance training systems, andsupport professional growth. By fostering a safe working environmentand cultivating an inclusive, diverse corporate culture, we give everyemployee a sense of belonging and achievement within the company.Regarding environmental protection, we proactively address climatechange and promote green, low-carbon operations. Throughstrengthened environmental compliance management, the developmentof green buildings, and the increased utilisation of renewable energy,we are effectively reducing carbon emissions, safeguarding our blueskies and green landscapes, and collaborating with society to create abetter life.Looking ahead, guided by the principles of “Innovation, Coordination,Green Development, Openness, and Sharing,” we will join hands withour global partners to pursue high-quality, sustainable development,and contribute to a brighter future of harmonious coexistence betweenhumanity and nature.
Mr. FAN YunjunChairman
0405
Key Sustainability Performance Metrics
Key Sustainability Performance Metrics
Market
Nearly
millionThe company provides duty-free commodity servicesto nearly 200 million domestic and foreign touristsevery year
537,000
Selling over 537,000 SKUs of goods
1,674 well-known brands
1,674 well-known brands in the world are in our duty-free shops
Top two
We operate the two largest duty-free shops in theworld – Haikou International Duty-Free ShoppingComplex and Sanya International Duty-Free ShoppingComplex
Most comprehensiveWith full coverage on on-board aircrafts, borders, foreign ships, passenger stations, railway stations, diplomatists, cruisesand downtown channels, we are the travel retail operator with the complete types of duty-free shops and the largestnumber of retail stores in a single country worldwide
Ranked first
Ranked No.1 among China’s duty-free commodityoperators
Social
14,485
There are 14,485 total employees as at the end of 2025
59.84%
Females in employees account for 59.84%, andfemales in the Board of Directors account for 25%,females in the senior managerial roles account for25% and in middle managerial roles account for
39.22%
100%
training coverage,more than
78.85
training hoursThe employee training coverage reaches 100%, withmore than 788,500 training hours in total
CNY
37.14
millionWe invested CNY37.14 million in operation safety,organised 1,385 safety trainings for 75,400participants
million
Nearly 53 million registered cdf members
CNY
16.88
millionSpent CNY16.88 million in free aid in ruralrevitalisation, implemented 16 assistance projectsand helped raise CNY10.05 million in assistancefunds
Environmental
0.0156
tons of standard coal/m
0.0156 tons of standard coal/m
of comprehensive energyintensity
0.09
tCO
e/CNY million of revenue
GHG emissions intensity for Scope 3 (Categories 6and 7): 0.09 tCO2e/CNY million of revenue
0.04
tCO
e/m
GHG emissions intensity for Scope 1 and 2: 0.04 tCO2e/m2
Green building certifications
Haikou International Duty-Free Shopping Complex(Block No.1) obtained 2-star Green BuildingCerti?cation and LEED Gold certi?cationHaikou International Duty-Free Shopping Complex(Block No.4) obtained 2-star Green Building pre-certi?cationSanya International Duty-Free Shopping ComplexPhase 1 Plot 2 Hotel Project obtained 2-star GreenBuilding pre-certi?cationSanya International Duty-Free Shopping ComplexPhase 3 Commercial Project obtained WELL Platinummid-term pre-certification and LEED Platinum pre-certi?cation* Except otherwise speci?ed, all the above are data as
of the end of 2025 or for the year 2025.
77.37
million
The company provided 77.37 million shopping bagsthat meet environmental requirements in the past fouryears, and effectively reduced the generation of non-degradable plastic waste
certi?cations
34 stores/counters have received LEED certi?cations, including 1 Platinum certi?cation, 31 LEED Gold certi?cations and 2LEED Sliver certi?cations
0607
Honors and Awards
Honors and Awards
ESG and CSR Awards Received in 2025:
Received the “Best ESG Information Disclosure Award”
from New Fortune
Listed in“Top 100 Best ESG Practices among Listed Companiesin China by Wind-Large-cap Companies”
Included in the“2025 Enterprise Cases for GreenTransformation and ESG Practices” by the All-China Environment Federation
Received the“2025 Best ESG Practice Award for Listed Companies”jointly awarded by Value Online and Easy Board
Received the
“Best Practices Case for Performance Presentations” award from the China Association for Public Companies
Honoured with the 2025“Investor Relations Crystal Ball Award”,“ESG Crystal Ball Award”,and “Best General Manager”for listed companies
Included in the“Steady and Sustainable: 2025 Report on Chinese
Enterprise ESG Leaders”by SynTao Green Finance
Received the“Annual ESG Excellence Enterprise”
title at the 2025 Hong Kong Wealth Management SummitForum and the 12th “Top 100 Hong Kong Listed Companies”
Awards Ceremony
Best ESGInformationDisclosure Award
0809
Honors and Awards
Other awards:
* Only included part of honors and awards here.
Governance and Investor Relations AwardsReceived in 2025:
Received the“Investor Relations Award”and “Best Award Report”from the Hong Kong Investor Relations AssociationAwarded with
“Best Practices in Investor Relations Management for
Listed Companies in China” from the China Association for Public Companies
Received the
“Best IR Hong Kong Listed Company
(A+H Share)”from New Fortune
Received the
“Best Listed Company”award for the first time from the“Golden Kunpeng”China Financial Value Ranking by HongKong Commercial Daily
Received the“German Design Award” and“Travel Retail Superstars Award”from the Moodie Davitt Report
Received the title of
“2024 Cultural and Tourism Brand Value In?uential
Communication Enterprise”
at the 11th Culture and Tourism Integration and InnovationForum & High-Quality Development Impact Case Selectionhosted by Xinhuanet and academically supported by the
Chinese Society for Environmental Sciences
Received the Excellence Award from the“6th Central Enterprise Micro-?lm (Micro-video) Selection themed on Core Socialist Values”
and the Excellence Award from the“Micro-videos for Grassroots Theoretical Propaganda of Central Enterprises in 2025”by the Party Committee Publicity Department of the State-owned Assets Supervision and Administration Commission (SASAC)
1011
Statement of the Board of Directors
Basic information of the company
Company Overview
In order to standardise the ESG management mechanism andenhance the quality of ESG management, CTG DUTY-FREE hasestablished an ESG governance structure, where the Board ofDirectors holds the ultimate responsibility and decision-makingauthority for ESG matters.The Board of Directors is ultimately accountable for the company’sESG strategy, target management and information disclosure. Thisresponsibility includes reviewing and approving major decisionsand improvement proposals related to ESG.The Strategy and Sustainability Committee under the Boardof Directors is the primary responsible body, and its keyresponsibilities include: conducting research and providing adviceon the company’s ESG-related strategies, policies, and targets;overseeing and measuring progress towards ESG targets;reviewing the company’s sustainability reporting and ESG-relatedmatters to ensure that they meet regulatory requirements andstakeholder expectations; and supporting the Board of Directors toeffectively fulfilling its ESG governance functions.To ensure our ESG practices are systematic and standardised, thecompany establishes the ESG Leadership Group, which is headedby the Chairman of the company; the deputy head of it is theGeneral Manager; and its members include heads of departments.The ESG Leadership Group is responsible for managing andcoordinating the company’s ESG-related work, which establishesand improves the company’s management system and operatingmechanism for ESG-related work, and it also formulates ESG workplans and integrates the company’s development strategy, image,branding, and operations with ESG concepts.
Corporate Culture
Brand Positioning
The representative of theduty-free industry in ChinaThe largest luxury operator
in China
Operation Concept
Customer centered,
market-oriented
Core Values
Courageous,professional efficient,cooperative, innovative
Corporate Mission
Share the joy ofshopping and extendthe enjoyment of travel
During the reporting period, the Strategy and SustainabilityCommittee of the Board of Directors was involved in assessing,prioritising and managing ESG-related issues (including thecompany’s business risk). In accordance with the SustainabilityReport (for Trial Implementation) issued by the Shanghai StockExchange, the committee reviewed the double-materialityassessment of sustainability-related topics, and financially materialtopics remain basically unchanged including: climate changetackling, energy usage, excellent service, safety and quality ofproducts, employees, supply chain security, data security andcustomer privacy protection.After carefully reviewing these topics, the company has developedcorresponding targets and measures to manage them. Goingforward, we will update our sustainability-related managementstrategy and implementation plans to reflect changes in the externalenvironment and the circumstances and facts specific to thecompany, to continuously enhance our sustainability capabilities.The Report provides detailed information on the progress andachievements regarding CTG DUTY-FREE’s ESG efforts in 2025and was approved by the Board of Directors in March 2026.The Board of Directors and all directors of the company herebyguarantee that the information presented in this Report containsno false records, misleading statements or material omissions, andundertake joint and several liability for the authenticity, accuracyand completeness of the information.
Statement of the Board of Directors
China Tourism Group Duty Free Corporation Limited (stockabbreviation: CTG DUTY-FREE; stock code: 601888.SH 01880.HK) was listed on the Shanghai Stock Exchange in October 2009(previously known as “China International Travel Service Co.,Ltd.”, the stock abbreviation “China CITS”), and was listed on theMain Board of the Hong Kong Stock Exchange in August 2022.Our company mainly engages in duty-free business, including thewholesale and retail of duty-free commodities such as fragrance,luxury, jewellery, watch, etc. Moreover, the company is alsoinvolved in investing and developing commercial complexes withduty-free business as the core.Over 40 years of rapid development, the company has establishedlong-term and stable cooperations with more than 1,500 renownedbrands worldwide. It has set up over 200 duty-free shops in over30 provinces, cities, autonomous regions and special administrativeregions in China, and also Japan, Singapore, Cambodia, SriLanka and other places, covering airports, on-board aircrafts,borders, passenger stations, railway stations, foreign cruise supply,diplomatists, cruises and downtowns (offshore, departures) inthese regions. Its main sales channels cover large domestic hubairports in Beijing, Shanghai, Guangzhou, Chengdu, Hangzhou andHong Kong SAR, international airports in Singapore, Cambodia,
and other places in the Asia Pacific region, and major domesticborder ports, Sanya International Duty-Free Shopping Complex,Haikou International Duty-Free Shopping Complex, and so on.China Duty Free Group has developed into a travel retailer with themost complete types of duty-free shops and the largest number ofretail stores in a single country in the world.The “courageous, professional efficient, cooperative, innovative”corporate culture has been fostered during the company’sdevelopment over the years, and it is with this culture that we facechallenges bravely and overcome difficulties. In recent years, thecompany’s core functions and capabilities such as procurement,operations, channel expansion, digitalisation and marketing havebeen continuously enhanced. Our business has been steadilytransformed and upgraded, achieving leapfrog development.In the future, our organisation will maintain the continuous, stableand healthy growth of the duty-free business, adhering to theconcept of “customer-centered, market-oriented”, with “duty-freebusiness” as the core to upgrade the value chain, and “tourismretail” as the extension to upgrade the industrial chain to build amore globally competitive world-class travel retailer.
1213
Statement of the Board of Directors
Development MilestonesAfter over 40 years’ development, CTG DUTY-FREE has became the first-class travel retailer in the world:
2023Awarded the title of Modelfor World-class Specialisedand Innovative Enterpriseby SASAC
1984The PRC State Councilofficially authorised theestablishment of ChinaDuty Free Company
2022? Listing on the Hong Kong
Stock Exchange
? Grand opening of HaikouInternational Duty-FreeShopping Complex, thelargest single duty-freeshop worldwide? Ranked as the world’s
largest travel retailoperator for the threeconsecutive years1990
Our Beijing Downtown
Duty Free Shop, the firstdowntown duty-free storein China, commenced itsbusiness operation
2020
? Acquired Hainan Duty-free
Co., Ltd.
? We became theworld’s largest travelretail operator; themembership systemof cdf was officiallylaunched, marking ahistoric breakthroughin online and offlineinterconnection,domesticand overseasinterconnection
1996
Our Heihe Border Duty FreeStore, the first duty-freeshop on the border of Asiancountries was established
2017
Acquired Sunrise Duty Free
(China) Co. Ltd.2006
We entered the internationalmarket and established itsfirst sales terminal in theoverseas market
2011
Our Sanya Downtown Duty
Free Store commencedits business operation asthe first offshore duty-freestore in Hainan province
1989An office of China Duty FreeCorporate was established
in Hong Kong SAR to
strengthen the overseasprocurement and distributioncapability of duty-freemerchandise
1995
high-quality products fromChina’s established brandswere released for trial salesin 10 duty-free stores
2021
We remained the No.1 travel
retail operator in the world2004
We are selected as one ofthe franchised retailers forthe 2008 Beijing Olympic
Games
2018
? Acquired Sunrise Duty
Free (Shanghai) Co., Ltd.? The first independent
cruise duty free shop
in China commenced its
business operation
2009
We are successfully listedon the Shanghai StockExchange
2014
? Our Sanya International
Duty-Free Complexcommenced its businessoperation as the firsttravel retail complex inChina. It was the largeststandalone duty-freestore in the world in termsof sales area at that time? Our first overseasdowntown duty-free storecommenced operation inAngkor, Cambodia
2024
A dedicated project team
was set up to support
China-chic products’“going global” efforts,leading the charge for thisnew trend in the travelretail industry
2025
12 downtown duty-free
stores newly opened/renovated and upgraded
1415
Topic 1:
Continuing to Expand theCompany’s Overseas Presenceand Distribution Network asa Global Travel Retailer forSelected Brands
Overseas Retail Expansion
Enhancing Channel Expansion
The company successfully launched Melt Season and CHANDO pop-up stores at Narita International Airport, markingthe debut of Chinese fragrance and cosmetics brands in Japanese airport duty-free channels.
Serving national strategies and responding proactively to the Belt and Road Initiative as aduty-free operator
cdf duty-free stores in Cambodia
In response to the call to serve and jointly advance the Belt and Road Initiative, thecompany announced its first overseas subsidiary – China Duty Free Group (Cambodia)Co., Ltd. (hereinafter referred to as “CDFG Cambodia Limited”)—in 2013, whichmarked a first among domestic duty-free retailers, providing an effective examplefor the entire industry. Since then, the company has been expanding its presence inCambodia. After 12 years’ effort, the company has opened three downtown duty-freestores in Siem Reap, Phnom Penh and Sihanoukville, along with one airport duty-freestore, covering three key tourist cities in Cambodia, serving both international inboundtourists and local consumers. These stores have become a highlight and key exampleof how the company is advancing economic cooperation and cultural exchangesbetween the Chinese and Cambodian people.
To “promote cultural exchanges and business cooperation”, CDFG CambodiaLimited has adopted a growth model driven by “select brands, a localised ecosystemand a duty-free experience hub”. In doing so, CDFG Cambodia Limited has beenable to “select premium Chinese brands for overseas market, tailor them to cater tolocal culture, and make its duty-free stores a landmark”. CDFG Cambodia Limitedis playing a key role in helping China-chic products gain popularity in Cambodia,such as iFLYTEK’s intelligent technology and Tong Ren Tang’s traditional Chinesemedicine. With this approach, CDFG Cambodia Limited is not only expandingofferings in the local market but also providing an avenue through which leadingChinese brands can reach global audiences, contributing to the spread of Chineseculture and cultural exchanges between these two countries.
In its “go global” journey, the company not only serves as a leadingexample of how enterprises can align with key national strategies to
achieve synergies, but it also proves that it is urgently necessaryto do so to seize opportunities amid consumption upgradingand to further expand into global markets.
Proper tools are essential for success; and specifically, channelsare crucial for expanding sales business, particularly in respect
of long-term development. The company not only facilitates the“bringing in” of international brands but also empowers the “goingglobal” of Chinese brands.
In Vietnam: The company secured 10-year supply agreements for Hanoi and Phu Quoc
airports, with a view to developing strategic markets with significant potential.
In Singapore: The company secured the bid and commenced operations for the Qeelinboutique in Changi Airport Terminal 3 (T3). The three stores – Qeelin T1, Qeelin T3, andMCM T3 – are progressively producing a scale effect.
The company partnered with ANTA Group in its Southeast Asia “1,000-store Plan”,successfully launching taxable ANTA stores in key commercial hubs in Cambodia.
In Cambodia: Leveraging years of
experience and resources in deepening duty-free operations in the country, the companyproactively adapted to market trends andcreated diversified consumption scenarios forlocal residents and cross-border travellers,expanding taxable retail operations to unlockbroader market opportunities.
In Japan: The company focused its efforts on overseas markets with strong potential.
In Macau: The company secured duty-free operating rights for Macau International
Airport and opened a new downtown concept store (Macau Peninsula Downtown Store)at the landmark M8 Mall in the Historic Centre of Macau. This store complements theexisting airport and Taipa stores, forming a three-pronged retail network to bolster thecompany’s market presence.
In Hong Kong: The company opened a new MCM boutique at Hong Kong International
Airport; and it leveraged 52toys’ distribution business to activate over 1,500 salestouchpoints across Hong Kong, with a focus on penetrating wholesale channels andachieving steady growth in scale. Furthermore, the company’s in-flight duty-free goodssale channel with Hong Kong Airlines facilitated the launch of 52toys blind boxes andiFLYTEK headphones, enabling China-chic products to precisely target high-end travelconsumption scenarios.
In recent years, while continuously expanding its global footprint, CTGDUTY-FREE has developed robust capabilities in areas including saleschannel expansion, brand globalisation, retail operations, marketing,and talent development. With these capabilities, the company hasbeen able to transition from a “single-channel” to an “omni-channel”operating model, evolving from a “duty-free retailer” to a “travelretailer” and “premium retailer” for its target markets.
Case study
1617
China Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance ReportTopic 1
Organising groups visiting abroad, continuously promoting high-quality talent cultivation foropening-upIn 2025, the company organised 143 overseas visiting groupswith 387 person times for business purpose to France, Italy,Switzerland, Spain, the United Kingdom, Singapore, Cambodia,Vietnam, Sri Lanka, Thailand, South Korea, Hong Kong, Macaoand other places. The purposes of these visitings includeprocurement and ordering, overseas store tours, participation inindustry conferences, brand negotiations and duty-free businessresearch, and development of important projects, greatly effectivelyguaranteeing the company’s foreign cooperation and exchange,deepening international cooperation in industrial and supplychains, advancing the high-quality co-construction of the Belt and
To keep pace with the globalisation of its business, the company provides diverse training programmes, such as those covering China-chicculture, foreign language learning, and diplomatic etiquette, to comprehensively empower its employees.
Talent Development
The company participated in the Shanghai Stock Exchange’s European roadshow and ex-change event, showcasing high-quality development to the international market
To align with China’s commitment to the high-standardopening-up of its capital markets and facilitating cross-bordercapital investment and financing cooperation, in June 2025, thecompany joined a delegation of high-quality listed companiesthat were organised by the Shanghai Stock Exchange to travelto London, UK, and Geneva, Switzerland, with the purposeof conducting capital markets promotion and internationalexchange activities.Through various formats, including roadshows and one-on-one meetings, the company engaged in in-depth discussionswith representatives from international investment banks,insurance firms, private banks, asset management institutions,wealth management institutions, and family offices. At theevent, the company comprehensively demonstrated itsintegrated strengths and development prospects acrossmultiple dimensions, including its robust corporate governancestructure, global market footprint, and competitive advantageswithin the global industrial chain. This effectively communicatedthe vitality, resilience, and potential of the Chinese economy tothe international market.
A representative from the Securities Affairs Department deliveredremarks at a roadshow event in Switzerland
Capital Markets Engagement
We pursue common prosperity for a greater good. For China-chic brands working to go global, the company has been able tosupport and help them, drawing on the extensive experience it hasaccumulated in overseas operations over the years, based on thenature of the company’s main business, duty-free retail, and itsearlier globalisation.
Helping Chinese Brands Accelerate Their Overseas Expansion
The company has signed overseas distribution rights arrangementswith multiple leading China-chic brands, including 52toys, Top Toy,Voolga, iFLYTEK, Yoose, and Unitree, covering three key productcategories: technology, emotional value, and productivity, and ithas even secured exclusive regional distribution rights with someof the brands. Additionally, as part of its efforts to create a diversecollaborative brand matrix, the company has also developedpartnerships with major domestic groups like ANTA and FOSUN.
Hosting the CDFG Global Brands Meeting to explore new opportunities in global retail
In March 2025, the company hosted the 2025 CDFG GlobalBrands Meeting in Sanya, Hainan, themed “Redefine Frontiersand Synergise Futures”. Numerous investors, industry experts,and partners from 224 brands around the world gathered tojointly explore innovative development opportunities in theglobal travel retail industry. The company signed strategiccooperation agreements with eight well-known domesticenterprises, including Bloomage Biotech and Giant Biogene, tohelp accelerate their expansion into overseas markets, promotethe deep integration of Chinese culture with global consumptiontrends, and enhance the cultural and commercial value of theirproducts.
Supporting China-chic products in reaching a wider global audience at the ChinaInternational Consumer Products Expo 2025
In April 2025, the fifth China International Consumer ProductsExpo, themed “Share Open Opportunities, Co-create a BetterLife”, was held in Hainan. As the largest consumer goods expoin the Asia-Pacific region, this year’s event featured a dedicated“China-chic Brands” zone, highlighting the rise of Chinesebrands. Through its six cdf stores in Hainan, along with its onlineplatforms, the company launched a variety of activities andshowcased innovative consumer scenarios at the expo, with aview to helping those brands reach and resonate with a widerglobal audience.
Signing a strategic cooperation agreement with Tong Ren Tang Group to promotetraditional Chinese medicine globally
Road Initiative, promoting industrial upgrading and consumptionupgrading through high-quality imports, continuously meetingpeople’s aspirations for a better life, and cultivating a high-calibre,specialised talent pool to support China’s high-level opening-up.Looking ahead, the company will actively leverage its role as anindustry leader and set an exemplary standard by building closercollaborative networks, expanding into overseas markets, andaccelerating the internationalisation of Chinese brands. Togetherwith its global partners, the company will co-create a new chapterof high-quality development in the travel retail sector.
In February 2025, the company signed an overseas strategiccooperation agreement with Tong Ren Tang Group, at a China-Cambodia overseas health and cultural exchange event heldby Tong Ren Tang Group in Cambodia with the theme of“Everlasting Legacy along the Silk Road, Universal Care forAll”. By signing this agreement, the two parties committed topromoting cultural and commercial exchanges between Chinaand Cambodia and to leveraging strengths in their respectivefields to further explore the practical value of traditional Chinesemedicine. Through innovative dissemination methods andglobal partnerships, the company will also work with Tong RenTang Group to co-create the future of the “big health” industry,with the aim of providing diverse health solutions for the globalpopulation.
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As a leading global travel retailer, China Duty Free Group will continue to leverage the strengths of its established global distribution network,supply chain management approach, and insights into consumer trends to provide end-to-end support for brands – from marketingpromotion to sales channel expansion.
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China Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance ReportTopic 1
Topic 2:
Blending Traditional Cultureto Craft Immersive ShoppingAdventures
At Sanya’s Haitang Bay in Hainan, cdf has made great efforts to create a model for integrated cultural-tourism development:
The Sanya International Duty-Free Shopping Complex featuresthree world-class architectural art complexes–the “Begoniaflower”, the “Shell”, and the “Yacht”–connected by an iconiclandmark, the Yunjie Bridge. Together, they form a uniquelydesigned international architectural art-themed area.In terms of the different experiences offered, the area south ofYunjie Bridge is the “Fashion & Art Gallery”, highlighting the fusionand exhibition of fashion and art. The area to the north is the“Romantic Lifestyle Retreat”, emphasising relaxed and romanticleisure experiences. The complex offers global visitors highlydifferentiated, personalised, and diverse sightseeing landscapesalong with leisure and entertainment experiences. It attracted 12.34million visitors in 2025.
The dazzling panoramic view of Sanya International Duty-FreeShopping Complex
Sanya International Duty-Free Shopping Complex:
Evolving from Shopping Mall to Scenic Destination
1 September 2014In 2020In 2023In April 2025Phase 1 of cdf SanyaInternational Duty-FreeShopping Complex, whichopened on 1 September 2014,covers an area of 120,000square metres, setting a newindustry record and becomingthe world’s largest standaloneduty-free store at that time;
The opening of Phase 2(Yunjie Island Project) helpedachieve a complementarybusiness mix;
The Global Beauty Plaza wasunveiled in Zone C;
The complex officiallyattained national AAAA-leveltourist attraction status.
These milestones represent not merely physical expansionand upgrading but are also innovative measures that aim topromote the development of high-quality cultural and tourismconsumption. Each step forward underscores CDFG’sunwavering resolve and its efforts to deepen its roots inHainan.
Case studyExpanding consumption boundariesDuring the 2025 May Day holiday, Sanya International Duty-Free Shopping Complex attracted family travellers with diverseactivities. It set up a “Outdoor Sports Zone” where childrencould participate in healthy activities such as tennis alongsidetheir parents. The "Fun Plush Market" organised by the complexalso offered children a novel entertainment experience in acute-themed environment, immersive interactive scenarios, firstreleases of popular IP merchandise, Hainan speciality plushitems, and unique treasure hunt games.
2021
Topic 2China Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance ReportChina Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance Report
Case studyCase studyCase study
Haikou International Duty-Free City Hosts Diverse Events Through Concerts andAnniversary CelebrationsShopping festival ignites newconsumption vitality, crafting freshsummer shopping experiences
cdf Sanya International Duty-FreeShopping Complex celebrated its 11thanniversary4 July 2025 saw the opening of the “Shop in Hainan · 2025Fourth Hainan International Offshore Duty-Free ShoppingFestival & Seventh cdf Hainan Duty-Free Shopping Festival”.The duty-free complex leveraged the peak summer tourismseason to launch the “cdf Outdoor Sports Season,” attracting11 premium outdoor brands. We created immersive family-friendly sporting scenarios, seamlessly blending duty-freeshopping with parent-child tourism.
On 1 September 2025, cdf Sanya International Duty-FreeShopping Complex celebrated its 11th anniversary. To markthe occasion, the mall launched a series of campaigns,including the “Hainan Private Salon”, offered tenfold rewardpoints and hosted a Koi fish lottery. With the aim of beinga model for “trusted business operations and excellentservices”, cdf Sanya International Duty-Free ShoppingComplex continuously provides quality services and targetedactivities to attract tourists. Through initiatives such asinteractive “One-Day Store Manager” experiences andthemed parades, we enhance brand-consumer engagementwhile creating a festive atmosphere. By providing generousrewards and innovative environments, the complex deliversan immersive shopping experience for consumers.
In July, under the theme “Pets, Love & Leisure in Haikou,”
Haikou International Duty-Free Shopping Complexestablished Hainan’s first “Pet-Friendly Social Space.” Threethemed zones and dedicated services delivered novel “pet-friendly” experiences for visitors.As one of Hainan’s inaugural pet-friendly malls (2024),Haikou International Duty-Free Shopping Complexintroduced “Pet Care Kits” (containing strollers and wastebags) and partnered with 18 F&B outlets to establish pet-friendly dining areas. Our “Pet-Friendly Charter” standardisedservices, elevating pets from “permitted access” only tobeing a “premium experience,” reflecting our humanistic careand commercial innovation.
In October, marking its 3rd anniversary, Haikou InternationalDuty-Free Shopping Complex debuted a multi-dimensional“Carnival” interactive experience.The atrium was transformed into a “Skyline Secret Forest”amusement park. Using “MAX Play Coins,” consumers couldunlock five experiential zones—dining, beverages, games,shopping, and entertainment—shifting from “transactionalshopping” to an “immersive stay.” Activities like clownparades and carnival theatres amplified recreational appeal,making duty-free shopping a memorable leisure journey.
Over the past 11 years, cdf Sanya International Duty-Free ShoppingComplex has evolved from a policy-driven entity to an innovationleader, transforming from a dutyfree shopping landmark into a national
tourist attraction. This journey has written a remarkable chapter inHainan’s high-quality development, providing steady momentumfor the construction of Hainan into an international tourism andconsumption centre.Haikou International Duty-Free Shopping Complex
In 2025, Haikou International Duty-Free Shopping Complexcapitalised on the rising popularity of concerts (e.g., Eason Chan,Teens in Times, Hua Chenyu, Katy Perry). By collaborating withfan clubs on check-in campaigns, we effectively harnessed fan-driven economies and converted celebrity traffic. Concurrently,multi-tiered benefits—including shopping discounts, vouchers,dining coupons, transport support, and experiential privileges—drove footfall.
Integrating oriental floral and Chinese garden aesthetics to create culturally immersive experiences
In May 2025, for the cdf Global Shopping Festival themedaround flowers, the company created a New Chinese Aestheticspace inside the Haikou International Duty-Free Complex atrium,designed to reveal a unique vista at every turn. It launcheda Chinese style hair-pinned flower makeup experience,offering customers a complete hair-pinned flower makeupand photography service. Drawing inspiration from traditionalChinese gardens, the company specially crafted beautiful,immersive spaces such as the Floral Charm Pavilion and theLucky Bell Pavilion, providing photo opportunities that allowedcustomers to encounter oriental aesthetics while shopping.
Case study
2223
Topic 2China Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance ReportChina Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance Report
At cdf Xi’an Downtown Duty-Free Shop and cdf Xi’an DepartureDuty-Free Shop, staff greeted customers in Tang-style costumeswhile offering complimentary costume experiences, andtraditional pastries and beverages were provided for sampling.
Xi’an
Xi’an DepartureDuty-Free Shop
Xi’an DepartureDuty-Free ShopUsing duty-free shopping and intangiblecultural heritage (ICH) activities to refreshshopping experiences for the Chinese NewYear, boosting the cultural tourism market inHainanDUTY ZERO by cdf at Hong Kong International Airport distributedspring couplets designed by emerging local artist Ho Wai-lam(何炜霖), conveying sincere blessings through calligraphy andpromoting fine traditional culture.cdf Sanya International Duty-Free Shopping Complex designedand launched a series of events highlighting the SpringFestival. We used elements of traditional Chinese culture andtransformed them into a tangible interactive experience forfamilies. By deeply integrating ICH performances, folk customexperiences, and public welfare initiatives, we cultivated avibrant festive atmosphere and created an immersive culturalspending experience for visitors.On the main square, an artistic installation in the shape of asnake with the slogan “Soaring to New Heights in the Year ofthe Snake” attracted a large number of tourists who took photoswith it as a keepsake. Moreover, carefully designed activitiesincluding fish lantern dance parades, ICH fire pot shows, fireknife craftsmanship displays, traditional Chinese music andChinese-style live performances were staged to allow localsand tourists to experience the festival atmosphere up close.We also set up five ICH handicraft experience zones–one forcalligraphy, sugar painting, paper-cutting, lacquer fans, andrubbing prints, respectively–which were popular among visitorsfrom all age groups. These handicraft activities allowed familiesto enjoy joyful festive moments beyond shopping.
84,000
visitors
On the seventh day of theChinese New Year, thecomplex received overDuring the ChineseNew Year holiday, cdfSanya International Duty-Free Shopping Complexwelcomed a total of
520,000
visitors
HongKong
During the festival period, four cdf stores in Cambodia launched“New Year Fortune Draw” activities, sharing auspicious Chineseblessings in creative ways and drawing extensive customerengagement.
Cambodia
Moving forward, the company will continue to optimise itsbusiness model and pursue experiential innovation. We are fullycommitted to building a premium platform that integrates “dining,accommodation, transportation, sightseeing, shopping, andentertainment” to offer a holistic travel experience.
cdf Macau Grand Lisboa Palace Shop organised “Welcomingthe Year of the Snake Couplet Writing” activities so thatvisitors could experience the festival through brushwork. It alsoparticipated in Macau’s iconic Chinese New Year Float Paradeat Sai Van Lake Square on the third day of the lunar new year,adding its own flair to the celebrations.
Vibrant festival celebrations extend beyond cdf Sanya International Duty-Free Shopping Complex:
Macau
cdf Haikou International Duty-Free Shopping Complex curated aseries of Spring Festival celebrations rich in festive traditions underthe theme “Welcoming the Year of the Snake with cdf”. The eventfeatured traditional festive merchandise, limited-edition spirits, folkcalligraphy, and debut premium products from our proprietarybrand “CDF Health”. The complex held various activities, includingtraditional cultural parades, auspicious lion dance ceremonies,and a “God of Wealth” procession that created a New Year’s fairambience, delivering an unforgettable festive experience.
Haikou
During the 2025 Spring Festival, the first Chinese New Yearfollowing the successful inclusion of the Spring Festival on theUNESCO Intangible Cultural Heritage list, the company plannedand staged a series of Spring Festival celebration activities themed“Welcoming the Year of the Snake with cdf”. The events, whichwere based on its duty-free policy, combined aspects of traditionalChinese culture with modern-day consumer demands.The company orchestrated a grand Spring Festival celebrationacross its six stores in Hainan, blending duty-free shopping withtraditional Chinese culture. Through folk heritage showcases,exclusive shopping perks, and immersive cultural tourismexperiences, the campaign cultivated an exuberant festive vibe,providing consumers with an unforgettable duty-free shoppingexperience as well as the chance to enjoy traditional Chineseculture at the same time.
Intangible Cultural Heritage Activities
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2425
Topic 2China Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance ReportChina Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance Report
Principles of Governance
Principles ofGovernance
Robust Governance System for Long-termStable OperationsEnhancing Risk Management and InternalControls, and Upholding Business EthicsEnhancing Information Security andImplementing Privacy Protection
CTG DUTY-FREE actively responds to United Nations (UN)Sustainable Development Goals (SDGs) 16 and 17, andhas been continuously improving corporate governanceand empowering corporate sustainability with ESG.
Principles of Governance
Professional backgrounds of Board membersName
BusinessManagement
Retail industry
Finance &accounting
Legal expert
Digitaltransformation
Informationsecurity/cybersecurity
Environmentalprotection/energyconservationand emissionreduction/resource andenergy use
FAN Yunjun????
LIU Kun???
WANG Xuan??
CHANGZhujun
??
WANG Yuehao??
GE Ming?
WANG Ying?
WANG Qiang??
Robust Governance System for Long-term Stable Operations
Corporate GovernanceRobust Governance SystemThe company has established a governance system consistingof the Party Committee, General Meeting of Shareholders, theBoard of Directors, and the Management with a clear divisionof authority, responsibilities, and regular operations. The PartyCommittee plays a leading role in “setting the direction, managingthe overall picture, and ensuring implementation”, performs decisiveor directional oversight duties in major decision-making processes,and implements the decisions and plans made by the CPC CentralCommittee and national development strategies. The GeneralMeeting of Shareholders represents the decision-making authority,exercising its power in accordance with the law. The Board ofDirectors plays the role of “setting strategy, making decisions andpreventing risks”, exercising decision-making power on majoroperating management matters of the company in accordance withlegal procedures and the “Articles of Association”, and enhancesmanagement and supervision of the executive management
Management
Board of Directors(Decision-making Body)
Board of Directors Remunerationand Appraisal CommitteeBoard of Directors Strategy andSustainability CommitteeBoard of DirectorsNomination CommitteeBoard of Directors Audit andRisk Management Committee
General Meeting of
Shareholders(Authority)
CTG DUTY-FREE has formed a corporate governance systembased on the “Articles of Association” and concerning the “Rulesof Procedure of the General Meeting of Shareholders”, the “Rulesof Procedure of the Board of Directors”, and the “Rules of Workof the General Manager” in accordance with the requirementsof the Company Law and the Code of Governance for ListedCompanies. During the reporting period, the company establishedand refined its “1+N” corporate governance system. It made high-quality revisions, including the “Articles of Association”, the “Rulesof Procedure of the General Meeting of Shareholders”, the “Rulesof Procedure of the Board of Directors”, the “Independent DirectorSystem”, and the rules of procedure for special committees,thereby strengthening the foundation of corporate governance.We continued to enhance the operational mechanisms of theBoard, optimised the Board’s composition, actively promotedBoard member diversity, and leveraged the effectiveness of specialcommittees, with a view to substantially improving the quality andefficiency of decision-making.We are committed to cultivating a professional and diverseBoard of Directors that aligns with the strategic positioning ofthe company as a world-class tourism retail enterprise. As of 31December 2025, the company’s Board comprised eight directors,
The company incorporated sustainable development governance into strategic decision-making and daily management, strengthenedawareness of sustainable development governance in a practically manner, and constantly promoted standardisation and institutionalisation.Departments and affiliated companies have designated sustainability governance officers to oversee the implementation of relevantmeasures. For details, please refer to the “Statement of the Board of Directors” section of this report.
The highest decision-making authority for the company’s sustainable development matter reviews and approves major decisions and improvement suggestions related to ESG
? Managing and coordinating the sustainable development related work? leads the company's sustainable development work, and establishesand improves the company's management system and operatingmechanism for sustainable development related work;? integrates the development strategy, image, brand and operations with
sustainable development concepts.
? Main Committee on Sustainability Governance? conducts research and makes recommendations on matters relating to the Company's sustainabledevelopment, including but not limited to vision, targets and policies;? studies the Company's sustainable development strategy and the material issues that stakeholders are
concerned about and put forward corresponding suggestions;? tracks and inspects the implementation and improvement of sustainable development matter to ensure
that the management and decision-making mechanism of important sustainability issues, including
but not limited to environment, anti-corruption, occupational safety and health, comply with the
requirements of relevant laws and regulations;? reviews the Company's reports on sustainable development matters and reports to the Board of
Directors.
The Boardof Directors
The Strategy andSustainability Committee ofthe Board of DirectorsThe Sustainable Development LeadershipGroup, headed by the Chairman of thecompany; the deputy head of it is the General
Manager; and its members include heads of
each main departments
Information Disclosure
The company has formulated the “Information DisclosureManagement System” to strengthen its management of informationdisclosures, including sustainable related information, and protectinvestors’ legitimate rights and interests. The company discloseinformation truthfully, accurately, completely, promptly, and fairly, instrict compliance with theCompany Law, the Securities Lawandother laws and regulations, as well as the relevant regulations of theCSRC, SSE, HKEX. We continue to regard “zero-error” informationdisclosure as its basic goal, and we are steadily improving ourinformation disclosure system accordingly to effectively protectshareholders’ right to know and enhance the effectiveness of ourinformation disclosures.
team. The executive management team serves as the company’sexecutive body, exercising powers in accordance with the “Articlesof Association” and the authorisation of the Board, responsiblefor operation, implementation, and administration. The Board ofDirectors carries out its work strictly with the “Articles of Association”and the “Rules of Procedure of the Board of Directors”. Four specialcommittees, namely the Strategy and Sustainability Committee, theAudit and Risk Management Committee, the Remuneration andEvaluation Committee and the Nomination Committee, have beenset up under the Board of Directors to provide consultation andadvice to the Board on significant decisions. In 2025, the companyconvened 4 shareholder meetings (including one each for A-shareand H-share holders) and 7 board meetings. The special committeesof the board of directors held 16 meetings in total. Among thesemeetings, the Board of Directors Strategy and SustainabilityCommittee held 2 meetings in total.
including two female directors, representing 25% of the board ofdirectors. Three independent directors are mainly drawn from first-class universities, research institutes and think tanks. They haveheld important positions in large state-owned enterprises, financialenterprises, and accounting firms, and they possess strongprofessional qualifications and experience in financial audit, legalrisk control, new retail, and digital transformation. Their presenceenhances the diversity and complementarity of the company’sBoard in terms of the members’ experience and capabilities. Alldirectors have a term of three years, and accessible for re-electionwhen their term of office expires, if eligible. Independent non-executive directors are not allowed to hold the position for morethan six consecutive years. In terms of educational background, 3directors have doctorate degrees, 4 have master’s degrees, andone has a bachelor’s degree. The directors have a balanced mixof knowledge and skills. They obtained degrees in various areasand possess experience from different industries and sectors. Thecurrent Board is characterised by significant diversity in terms ofskills, experience, knowledge, gender, age and other areas, incompliance with the requirements on Board diversity.The company’s senior management consists of 8 executives,including 2 female executive, representing 25% of seniormanagement personnel.
As an A+H listed company, CTG DUTY-FREE has beenaddressing the differences in capital market regulatory conceptsand rules between the A-share market and the H-share market.The company follows the principle of “early start, frequentcommunication, and focus on quality and efficiency” to optimise itssystem for regular reporting, announcements, and key informationdisclosure, and to regulate related-party transactions, dividendplanning and other details. In line with SASAC’s requirements forenhancing the quality of listed central enterprises, the companyprioritises investor needs by innovating disclosure content andformats and continuously improving transparency and granularity.
CTG DUTY-FREE Sustainable Development Governance Structure
2829
Principles of Governance
Investor RelationsThe company strictly complies with the Company Law,the Securities Law, the Listed Company Investor RelationsManagement Guidance and other laws and regulations. Toimprove corporate governance, deliver greater overall value and
Sustainable development strategyCTG DUTY-FREE strategic vision and strategic objectives
Guided by the needs of investors, the company continuouslyenriches and improves the smooth investor communicationchannels to enhance pertinence and effectiveness. We also
On 28 November 2025, to enhance capital marketunderstanding of cdf’s value, the company hosted its 2025Investor Open Day under the theme “Riding the Tide, Embracingthe Ocean”. The event attracted over 300 participants, includingsovereign wealth funds, public funds, private equity funds, andindividual investors, who collectively explored the company’snew development opportunities under the Hainan offshoreduty-free policy.During the site visit, investors conducted their first on-siteinspection of the construction site and showroom model ofSanya International Duty Free Shopping Complex Phase IIIproject, and also visited Phase 1 project. The itinerary includedflagship brand boutiques, the membership service zone, andcdf Health among multiple settings.
cdf successfully hosts the 2025 Investor Open Day
2025
>>>>>>>>>>
Sent100+ email responsesFielded over 1,000investor hotline inquiriesHeld 126 strategy sessionswith brokers
Interacted with about 3,202 investors,
Staged 3 performancepresentations
Conducted 74 investor surveys
Diversified Communication Mechanism
To become a first-classtravel retail operator withglobal competitiveness,international influenceand leading profitability.
integrating energy conservation and environmentalprotection concepts into daily operations for unifiedadvancement. This involves strengtheningtop-level design, enhancing financialsupport, implementing rigoroussupervision and assessment, andintensifying awareness campaignsto systematically drive the greentransformation of production andoperational models.
We continuously conductenvironmental public welfareactivities, vigorously promote theconcept of green consumption,and popularise green, low-carbon,energy-efficient, and environmentally friendlyproducts. cdf provides customers with greenservices encompassing the pre-trip, during-trip, andpost-trip stages.
to propel the comprehensive green transformationof operations. This includes implementing green
construction practices throughout project
lifecycles, strengthening green supplychain management, and enhancingenergy-saving and environmentally
protective operational capabilities.
The company is intensifyingits targeted assistance work asa central enterprise, researchingand formulating post-transition periodsupport measures, and exploring ways todeepen the shift from “one-way assistance” to“collaborative innovation.”
Refine the green development working mechanism
Advocate for green consumption and build agreen service system
Focus on carbon peaking and carbon neutrality initiatives
Deepen rural revitalisation efforts
protect investor rights, in 2025, the company revised the “InvestorRelations Management System”, actively responded to marketdemand, and carried out a series of appealing, multi-tieredinvestment activities for the capital market and investors.
improve the quality of investor relationship management andconvey corporate investment value to the market precisely andtimely to promote high-quality development of the company.
Held2 business trackingexchange meetings
Conducted3 field research activities
including2,764 institutional investors
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The investorhotline
Strategy sessions with
brokers
The company’sofficial website
Online and Offlineinvestor research
meetings
The SSEe-interactive
platformInvestor reception day
Investor relationsemails
Roadshowpresentations
Investor RelationsWeChat official account
and appletField research activitiesPerformancepresentations
General Meetings of
Shareholders
Principles of Governance
The company has been included in various domestic and international sustainability indexes, demonstrating capital markets’ recognition ofthe company’s ESG efforts.
Hang Seng (China A) Corporate SustainabilityBenchmark Index (“HSCASUSB”)Hang Seng Stock Connect China A ESG Leaders Index
Hang Seng Stock Connect China A ESG 50 IndexHang Seng Stock Connect China A 300 ESG Index
Hang Seng SCHK China Central Central State-ownedEnterprises (SOEs) ESG Leaders IndexHang Seng Stock Connect China A 300 ESG Enhanced Index
Hang Seng SCHK China Central SOEs ESG 40 Index
CSI 300 Carbon Neutrality Index
SSE 180 ESG Benchmark index
FTSE4Good Index SeriesCSI 800 ESG Benchmark index
CSI ESG 300 Growth IndexCSI Huaxia Bank ESG Index
SSE 50 ESG Index
Strategic positioning
Sustainability Targets
Planning for SustainabilityWith high-quality development as our core direction, we haveimplemented the five development concepts of “innovation,coordination, going green, openness and sharing”. CTG DUTY-FREE actively fulfils its social responsibilities as a central state-
CTG DUTY-
FREE
Commit to meeting people’s growing demand for abetter life, treating customers as co-creators of value,and delivering high-quality fashion products, premiumservices, and lifestyle experiences.
For customers
Co-creation,co-existence,
co-sharing
Serve as a key driver of national strategies, build afirst-class brand image and social influence, maximisevalue, and meet unified political, economic, and socialresponsibilities.
For the country and society
Customer-centricityPurpose-driven
commitment
Lead the industry in terms of scale, efficiency, andoperational excellence, foster collaborative and healthycompetition, innovate alongside suppliers and partners,and cultivate competitive-cooperative relationships withpeers.
For the industry
Share the fruits of corporate growth with employees,empower them through value-driven development, andserve as a platform for their professional advancement.
For employees
Continuously improve
enterprise value
Shared growthCollaboration
To build a central state-owned enterprise thatupholds the principles of integrity, safety,environmental awareness, and harmony.
Planning forSustainability
Adhere to green development principles andadvocate for the peak emissions and carbonneutrality goalsStrengthening green building capabilities and
implementing “four savings and one conservation”Improving green logistics capabilities to reduce
shipping costsEnhancing green warehousing capabilities to make
warehousing more intelligent Building green duty-free complexesPromoting green consumption and facilitating the
green transformation of consumption
Improvement of public service system Development of public service projects
Actively participate in public service
Stepping up rural vitalisation Boosting regional economic developmentImproving of income distribution and sharing the
fruits of company development
Take actions that promote shared developmentstrategies and common prosperity
owned enterprise, and we are preparing for a new stage ofdevelopment under the direction and goals of medium and long-term and are striving to achieve these goals.
3233
Principles of Governance
Stakeholder CommunicationStakeholder Communication MechanismsThe company attaches great importance to communication withstakeholders and actively builds a robust internal and externalcommunication platform. We pay attention to material issuesof concern to our stakeholders and continuously reinforce our
CTG DUTY-FREE’s 2025 ESG performance and 2026 ESG targets
SectorAchievement of 2025 ESG targets2026 ESG targetsGreen office
? Continued to advocate energy conservation and emissions reduction, andimproved green operations management capabilities and energy efficiency? In 2025, the company strictly complied with laws and regulations related
to energy conservation and ecological environment protection, and therewere no major violations or mass incidents. It was not punished or reportedby environmental protection departments at all levels, and the level ofenvironmental compliance remained good
? Continue to advocate energy conservationand emissions reduction, and improve greenoperations management capabilities andenergy efficiency? Avoid major incidents involving energyconservation or environmental protectionviolations and avoid penalties or notificationsfrom environmental protection authorities
Greenbuilding
? Haikou International Duty-Free Shopping Complex (Block No.1) obtained2-star Green Building certification, LEED Gold certification? Haikou International Duty-Free Shopping Complex (Block No.4) obtained2-star Green Building pre-certification? Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 HotelProject obtained 2-star Green Building pre-certification? Sanya International Duty-Free Shopping Complex Phase 3 Project obtainedWELL platinum pre-certification mid term, LEED platinum pre-certification? Increased the use of renewable energy, China Travel Building (formerlyHaikou International Duty-Free Shopping Complex (Block No.1) has [builtrooftop photovoltaic and car shed photovoltaic power generation facilities]? The under-construction Sanya International Duty-Free Shopping Complex
Phase 3 Commercial Project has approximately 18,000 square meters ofphotovoltaic installed on the roof? Worked with brand partners to apply for LEED certifications: added 1 LEEDplatinum certification and 2 LEED gold certification
? Follow green building standards in newconstruction projects and apply for greenbuilding certifications? Continue to promote energy-efficienttransformation of existing facilities? Actively explore the use of new energy sources? Facilitate brand partners to obtain LEED
certification
Operational
safety
? The company revised the safety production responsibility system for all
employees, clarifying the safety production responsibilities of the company’sleadership team, various departments, and positions? 100% coverage of operational safety responsibility, signing 86 “Responsibility
Letters for Achieving Safety and Environmental Protection Goals” with variousdepartments and affiliated enterprises, and all employees signing “Safety andEnvironmental Protection Responsibility Letters”? Held 1,385 training sessions including external safety specialist training,safety production knowledge and skills, new employee onboarding training,fire protection, anti-terrorism, construction safety, occupational health,typical accident case warning education were organized, with 75,400participants? Spent a total of CNY37.14 million in operational safety in 2025? No production safety accidents, hazardous incidents, or other safety
and environmental accidents that have caused serious social impactshappened, and no casualties or significant property losses have occurred
? 100% coverage of operational safetyresponsibility? 100% coverage of operational safetyinspections (for all places)? 100% coverage of operational safety training
(for all staff)? No safety accidents and no work-related
fatalities throughout the year? Continue to enhance automation and smart
operations to empower operational safety? Guarantee investments in operational safety
Employees
? Completed the re-election for our headquarters trade union committees in
accordance with established policies, and convened three sessions of theworkers’ representative congresses which safeguard our employees’ rightsto be informed, to participate, to express, and to supervise? Spent a total of CNY232 million in employee welfare? Carried out more than 1,000 key training projects, with a total of 160,000
participants; and total training hours; exceeded 788,500 hours; and onaverage, each employee participated in 55 training hours
? Guarantee employee rights and interests? Caring for employees, providing employee
benefits? Guarantee investments in employee training? Guarantee investments in launching training
activities? Continue to diversify training courses
Anticorruptionadvocacy
? Conducted onboarding integrity training for 100% of new leaders? Carried out 7 anti-commercial bribery and anti-corruption trainings for allemployees, 3 anti-commercial bribery and anti-corruption trainings forManagerial employees, and one anti-corruption training for directors andsupervisors, including independent directors, with a training coverage rateof 100%
? Conduct onboarding integrity training for 100%
of new leaders? Conduct onboarding integrity training for 100%
of new joiners? Achieve a 100% coverage rate in annual anti-
corruption training
Publicservices
? Invested CNY 16.88 million in non-reimbursable assistance funds,
mobilised CNY 10.05 million in various types of support funds, donatedschool uniforms worth about CNY 0.6 million? Supervised our employees serving as temporary cadres in Menglian county
and Ximeng county, Yunnan province on the implementation of 16 supportprojects across the five pillars: industrial revitalisation, talent revitalisation,cultural revitalisation, ecological revitalisation, and organisationalrevitalisation? [leverage the company’s influence in supply chain, collaborate with
multiple partners, and explore the path of innovation and green sustainabledevelopment from brand merchants to consumers]? Actively participate in environmental protection, education, community
activities and other public welfare undertakings
? Increased the company’s support for key
targets, with a view to improving ruralindustries, rural infrastructure, and ruralgovernance? Closely monitor and respond to communityand societal needs
StakeholdersStakeholder expectations
Communication andparticipation mechanism
Corporate response
Shareholder/Investors
Improvement of market capitalisationand profitabilityProtecting shareholders’ rights andinterestsStandardisation corporate governanceAccurate information disclosureSmooth investor communicationImprovement of ESG performanceBusiness StrategiesChanges in Industry PolicyBusiness Development Directions
Periodic reports and announcementsCommunication via SSE e-interactiveplatform Official website, new mediaplatforms, telephone, fax and emails,General Meeting of Shareholders,performance presentations,roadshows, analyst meetings, investorreception day, investor seminars
Provision of truthful and adequateinformation disclosureImprovement performance and generateprofits Diversified investor communicationchannelsImprovement of ESG practices
Consumers
Product quality guaranteeImprovement of shopping experienceProtecting customers’ legitimate rightsand interests
Communication during serviceprocessDiversified after-sales channelsCustomer satisfaction surveys
Meeting product qualityGood service qualityImprovement of the mechanism of after-sales serviceInnovative service practice
Employees
Guaranteed remunerationGood working environmentImprovement of communicationmechanismsEmployee development and careerpaths
Employment contractsWorkers’ representative congressesSeminars and condolence visits
Enhancement of the remuneration andwelfare systemImprovement of the system for generalmeetings of employee representativesProvision of a strong career developmentladderDiversified staff trainingsVarious staff activitiesEstablishment of healthy and safe workingenvironment
Business partners
Honest, fair, and provision of mutualbenefitsMaintenance of long-term cooperationComplying with business ethicsPromotion of supply chain’ssustainable development
Daily business exchangesBusiness meetings and negotiationsDocument correspondenceProcurement activitiesIndustry forums
Legal perform of contracts and agreementsArrangement for open and fair tenderingOpen and transparent business principlesCollaborations on environmental ProjectsContinuous diversification of cooperationmodel
Communities
Community engagement andDevelopmentPublic services supportSocial development concerns
Research via site visitPublic service activitiesTargeted assistanceVolunteer services
Actively participation in public servicesTargeted assistance projectsCommunity development supportAdvocation of green development
Government and
regulators
Law-abiding compliant operationsUndertaking social responsibilityPromotion of economic development
Participation in relevant trainings, andconferencesDaily communication and informationreportingDocument notificationsCooperation between governmentand enterprise
Abiding by laws and policy requirementsTax payment in accordance with lawsCompliant information disclosurePromoting regional economic developmentIncrease of local employment
Industry associations
Promotion of industry development
Daily communicationDocument notificationsParticipation in associations’conferences and activities
Performing duties as an associationMemberParticipating in conferences and activitiesheld by industry associationsSharing our experiences with a wideaudience
management to better respond to their expectations and create
value for them.
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Principles of Governance
Double Materiality Assessment for Sustainability TopicsCTG DUTY-FREE’s double materiality topics database
We form a basic database based on the findings ofthe Sustainability Report (Trial) issued by the ShanghaiStock Exchange, theESG Codeissued by the HongKong Stock Exchange, and theESG Metrics System forESG Reports of Listed Companies Controlled by CentralState-owned Enterprisesissued by the SASAC; and incombination with international sustainability frameworksand disclosure standards, such as the GRI standards,UN SDGs, the Sustainability Accounting Standards Board(SASB).
To form the final database, we incorporated macropolicies, key areas of the company’s sustainability work,feedback from stakeholders, industry topics concernedby capital markets such as MSCI, S&P DJSI, CDP,Morningstar, and topics disclosed by peer companies athome and abroad.
Identify the topics and form a database
Prepare the online questionnaire to assess materialsustainability topics, and the questionnaire is designedto take into account two dimensions (financial materialityand impact materiality), then invite stakeholders to ratethe materiality of relevant topics;
Interview stakeholders to collect feedback andsuggestions on sustainable development practices fromsupply chain partners, ESG specialist and others, onour sustainability practices, and their views on futuresustainability strategy.
Communication and survey with stakeholders
In terms of financial materiality, the financial departmentidentified topics with potential financial materiality, whichwere then reviewed and confirmed by the relevantdepartments who are responsible for operationalmanagement of these topics.
The topics with potential financial materiality that hadbeen confirmed on a preliminary basis were thencompared against the company’s key areas of businessmanagement, SASB and disclosures of peer companiesat home and abroad, with no significant differencesfound. We then further screened the list of topics withfinancial materiality.
Engaging with key stakeholders and experts
The assessment results of the double materialityassessment were then submitted to the Board’s Strategyand Sustainability Committee under the Board fordeliberation;
Relevant departments further strengthened sustainabilitymanagement and disclosures regarding the approvedfinancially material topics.Topic confirmation and approval
CTG DUTY-FREE’s double materiality topics matrix
Impact materiality
Financial materiality
Important
Not relevant
Financial materialityImpact materiality
EnvironmentSocialGovernance
Climate change tackling
Environmental compliance management
Packaging material management
Waste disposal
Energy usage
Usage of water resources
Circular economy
Collaborating with brand partners topromote environmental protection
Pollutant discharge
Ecosystem and biodiversity protection
Excellent service (Note)
Safety and quality of products (Note)
Employees
Contributions to the society
Supply chain security
Data security and customer privacyprotection
Intellectual property protection
Response to national strategies andrural revitalisation
Innovation-driven
Ethics of science and technology
Equal treatment to small andmediumsized enterprises
Anti-commercial bribery andanticorruption
Anti-unfair competition
Communications with stakeholders
Due diligence
CTG DUTY-FREE’s process for assessing the materiality of sustainability topics
In accordance with the requirements from Sustainability Report(Trial) issued by the Shanghai Stock Exchange, the companyconducted a double materiality assessment of key topics.Considering the unique characteristics of the travel retail industryand its operational focus, the company evaluated whether eachidentified topic significantly impacts corporate value (hereinafterreferred to as financial materiality) and whether its performancein respect of these topics could substantially affect the economy,society, and environment (hereinafter referred to as impactmateriality).
materiality assessment matrix and finally identified 7 topics of bothfinancial materiality and impact materiality, 14 topics of only impactmateriality but not financial materiality, and 4 topics that are neitherof financial materiality nor of impact materiality.
After the end of the reporting period, the company will organise stakeholders to give feedback on the contents of theReport and prepare for the future sustainability management and disclosure.Review and continuous follow-up
We collect topics of concern to critical internal and externalstakeholders includes employees, management, investors,consumers, brand names, etc. through questionnaires andinterviews. Then, we perform the double materiality assessmentand rank the results to identify the company’s financial material andimpact material environmental, social and governance topics, anddisclose them in the Report.
Note: The name of sustainability topics has minor revision in 2025.
The company assesses the double materiality of sustainabilitytopics from the two dimensions of “financial materiality” and “impactmateriality”. Based on an effective selection from the database andsufficient stakeholder engagement, the company has depicted a
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Principles of Governance
Enhancing Risk Management and Internal Controls, and Upholding Business Ethics
Risk Management
The company formulated the “Measures on Comprehensive RiskManagement” and the “Management Regulations on the Reportingof Significant Operational Risk Events”, to establish an effective andcomprehensive risk management system; improve risk preventionRisk Management-related Governance Structure
Organising a company-wide risk assessment to study and determine the risk situationin the coming yearThe company performs an annual assessment of material risks based on two dimensions: the possibility of risk and the magnitude ofimpacts.
Departments in chargeof comprehensive riskmanagement
The departments in charge of comprehensive risk management are the Legal and Risk Control Department.They are responsible for constructing and operating the comprehensive risk management system;organising, coordinating, supervising, and inspecting risk management; and evaluating the effectiveness ofsubsidiaries’ risk management. They provide professional advice for the company’s major risk decisions.
Leads in charge ofrisk management
The company’s leads in charge of risk management preside over the daily work of comprehensive riskmanagement. They are accountable to the general manager, and they exercise their risk managementduties subject to the general manager’s authorisation.
Generalmanager
The company’s general manager is responsible for guiding the company’s overall risk management,approving risk management matters subject to its authorisation, and authorising the company’s leads incharge to be responsible for organising and promoting risk management.
Audit and RiskManagementCommittee under theBoard of Directors
Risk, internal control, and compliance responsibilities have been incorporated into the duties of the Auditand Risk Management Committee under the Board of Directors to refine the risk management corporategovernance structure.
Board ofDirectors
The Board of Directors is the leadership group responsible for the company’s overall risk management,and is responsible for overseeing and supervising the company’s risk management to ensure its overalleffectiveness.
In 2025, we continued to strengthen significant risk monitoringto identify relevant changes. For significant risks identified at thebeginning of the year, we continuously tracked and assessed themon a quarterly basis and adopted a checklist-based managementapproach. By updating our risk registers and reviewing changesin the external environment, we identified potential operationalrisks and ensured that every identified significant risk was beingmonitored and controlled on an ongoing basis. In addition, weaccelerated the development of our tiered and categorised riskmanagement system at the subsidiary level, which enables us toconduct systematic assessments based on the nature of theirbusiness, as well as their risk management capabilities and riskperformance. For six Class A subsidiaries, we have put in place anearly warning framework comprising 91 key indicators spanningoperating performance, financial position, inventory, compliance,safety, and environmental protection. We monitor these indicatorson a quarterly basis to identify risk trends and patterns andpotential risk points, which informs our design of timely preventivemeasures.
Improving the evaluation reportmechanism and strengthening thefoundation for risk managementIn order to strengthen overall analysis and trend analysis of internaland external risks, and enhance the company’s basic capabilitiesin respect of enterprise risk management, the company has furtherstrengthened the risk assessment processes of key subsidiaries.While offering guidance on the objectives, methods, and toolsof risk management reporting, we are requiring for the first timethat key subsidiaries prepare their own risk management reportsbased on annual risk assessments. The company considersthese risk management reports to be an important method forcomprehensively summarising, evaluating and supervising the riskmanagement work of each key subsidiary. Gradually, we will forma risk management model that entails “highlighting key points,hierarchical management, and three-dimensional risk preventionand control,” enabling quantitative, full-coverage, visualisedmanagement of operational risks across all the company’simportant sectors.
Deepening and expanding the study ofearly warning indicators for risks
In order to further improve the company’s risk quantificationcapabilities and enhance the scientific and practical design of earlywarning indicators for risks, the company has carried out a re-inspection of early warning indicators for risks for the headquarters,starting from its business objectives. Based on a retrospectiveanalysis of historical tracking data, we have optimised and refinedthe existing indicator system. At the same time, key subsidiarieshave been selected to serve as pilot entities in our effort to activelyextend early warning and monitoring of risks to key third-levelenterprises.In 2025, the company actively advanced the digitalisation ofrisk management. By integrating with the company’s platformdevelopment, we achieved online and visual presentation of riskinformation of key subsidiaries. This enhances the clarity of riskanalysis and strengthens data-driven decision-making, transitioningour risk management approach from experience-based to data-driven, with risk governance precision and proactivity beingelevated.
Strengthening risk event handling
In order to properly prevent and resolve the major business risksof the company and its affiliated enterprises, a comprehensiveinvestigation of risks and hidden dangers was organised in 2025.The company thoroughly investigated risk events in the businessareas of the headquarters and affiliated enterprises, and thecauses of risks were analysed in depth. We formulated disposaland resolution measures to properly prevent and resolve majorbusiness risks and continuously improve the company’s businessmanagement capabilities.
Conducting specific training on riskcompliance topics and cultivating a riskmanagement culture
The company delivers training on compliance risk topics to all staffon a quarterly basis to enhance their awareness of the importanceof compliance issues.
In March 2025, we conducted a specific training on “EnsuringCompliance and Preventing Legal Risks When Trading State-Owned Assets”, with both in-person and virtual attendanceoptions. The training was delivered by a partner from ZhongLun Law Firm. To enhance our employees’ legal awareness, thesession addressed typical legal risks associated with the tradingof state-owned assets, tailored to our governance, businessmodel, and the industry in which we operate. A total of 130+relevant staff members from CDF Investment Development, theSanya Downtown Store, and the Xinhaigang Store attended thetraining.
Specific Training on “Ensuring Compliance and Preventing Legal Risks When Trading State-Owned Assets”
? The first objective is to establish the risk classification of
each business, fully apply the results of risk loss eventanalysis, internal control supervision and inspection,quantify the relevant criteria for risk analysis, and forma panoramic risk list for each business through bottom-up aggregation of risks.? The second objective is to further deepen and expand
the study of risk early warning indicators, the keybusiness areas are selected, and the selection ofindustry indicators and the design of early warningthresholds are studied from both quantitative andqualitative aspects to form a holistic risk early warningindicator applicable to the company. Starting from theexisting system of early warning indicators for risk,the company has been optimising and refining how
indicators and early warning thresholds are set, andcooperating with the risk management system thatachieves daily, full coverage, and visual managementof operational risks across all the company’s importantsectors.? The third objective is to evaluate the probability and
impact of each risk according to specific risks in therisk database. The evaluation team comprises thecompany’s management, various departments, andkey subsidiaries. Ultimately, the team determinesthe risk priorities for the coming year based on thecomprehensive assessment, and response plans aredevised for the top 10 risks. The company monitors andtracks its risk response on a quarterly basis to improveits risk response capabilities.
and management; clarify the collection, collation and reporting ofsignificant operational risk events; and safeguard the company’sstable operations and sustainable development.
Case study
3839
Principles of Governance
At the end of the reporting period, the company had not identifiedany long-term emerging risks that could have a significant impacton future business. The company will continue to conduct riskassessments and analyse the potential impacts of emergingrisks and formulate solutions if any long-term emerging risks areidentified.could have a significant impact on future business. Thecompany will continue to conduct risk assessments and analysethe potential impacts of emerging risks and formulate solutions ifany long-term emerging risks are identified.
To mark National Constitution Day in2025, in December, we conducteda series of promotional activitiesthemed “Studying, Promoting, andImplementing Xi Jinping Thoughton the Rule of Law and Raising OurUnderstanding and Awareness ofthe National Constitution”. Duringthe campaign, constitution-themedexhibition panels were on display in thecentral areas of our office buildings. Inan innovative manner, we integratedkey constitutional principles into ourcompliance requirements for duty-free operations, delivering the keymessage that “the national Constitutionis essential to law-based operations”.In doing so, we effectively incorporatedthe spirit of the national Constitutioninto our employees’ daily work routines.
Promoting the Spirit of the Constitution and Strengthening the Foundations of Compliance –Launching Our Promotional Campaign to Observe National Constitution Day in 2025
Internal control management
In accordance with the -Basic Standards for Enterprise InternalControl, the Application Guidelines for Enterprise Internal Control,the Guidelines for Corporate Internal Control Assessment andother regulations, the company has formulated the “ManagementMeasures on Internal Control”. A robust internal control systemis essential to our corporate governance and key to preventingand managing risks and maintaining compliance. Based on thisprinciple, we have established a positive cycle whereby we usesound internal control policies and processes to effectively managerisks and identify potential improvement opportunities.We place a high priority on developing a robust internal controlsystem, which we consider essential to preventing potentialsignificant risks. We mandate management at all levels of entitiesacross the company to fulfil their primary responsibilities andintegrate internal controls into their strategic planning, operationsgovernance, and oversight process. With the Legal and RiskControl Department leading and coordinating the efforts, wehave developed a dual internal control structure – centralisedplanning and oversight at the headquarters level and decentralisedimplementation at the subsidiary level. In this way, we haveadvanced a vertically integrated internal control system that clearlyassigns roles and responsibilities at each level.The company has established a management and organisationalsystem for internal control comprising the Board of Directors,Operating Department, Internal Control Construction Department,Internal Control Operations Department, and Internal ControlSupervision Department. For internal control management,
the company adopts a system of “centralised leadership andhierarchical responsibilities”, which combines the comprehensivemanagement of internal control supervision and managementdepartments with the professional management of functionaldepartments. According to the relevant regulatory provisions, thecompany formulated the “Management Regulations on Rectificationof Issues Identified in Internal Audits”. These regulations aimto standardise relevant rectification processes, strengthen theimplementation of audit rectification, and improve the effectivenessof audit oversights. They also seek to clarify rectificationresponsibilities, rectification procedures, result identification,supervision and inspection, responsibility constraints, and resultimplementation, while improving the internal audit system.The company have initiated the systematic construction of aninternal control system, conducted risk analysis and diagnosis ofbusiness processes throughout the system, urged relevant units toimplement rectifications according to the risk diagnosis report. Wealso embed own requirements on risk management and controlinto specific control points and maps specific responsibilities toinformation in the risk database. In this way, we ensure that thecompany’s internal control lists and programmes and internalcontrol system are vertically linked and horizontally consistent.Using the system, we can generate useful management tools, suchas a practical internal control manual that reflects the company’sbusiness reality, as well as risk control blacklists and whitelists.Additionally, the company implements the internal controlevaluations and prepares the “Internal Control Evaluation Report”annually, which is disclosed on the SSE website concurrently asthe Annual Report.In 2025, our Audit Department fully implemented the nationalstrategic decisions and plans regarding audit work and fulfilledits supervisory responsibilities in accordance with the law.They achieved significant achievements in promoting policyimplementation, standardising the exercise of power, preventingand mitigating risks, and deepening reforms. Throughout the year,they strictly carried out our annual audit plan, with an increasein both audit scope and frequency, providing robust support forcompliant operations.
The department consistently prioritises remedial actions andcoordinates efforts to develop effective, actionable remedialplans based on internal and external audit findings. This helpsenhance governance standards and address control weakness ordeficiencies across audited units. In 2025, based on audit findings,we established itemised remedial plans with detailed correctiveactions, timelines and accountability assignment. Through rigorousmonitoring, we ensured closed-loop resolution of issues and timelycompletion of all corrective actions within reasonable deadlines.For several subsidiaries, we ordered immediate corrective actions,reflecting the effectiveness of our internal control enhancements.Furthermore, we strategically leveraged the remedial processto drive systemic improvements, incorporating recurring issuesinto our policy revisions and process optimisation initiatives. Thisapproach successfully established preventive mechanisms to avoidrecurrence of similar issues.Our Audit Department rigorously enforced accountability and putin place controls to safeguard state-owned assets. Through robustinternal controls, they effectively drove the fulfilment of roles andresponsibilities and enhanced compliance awareness and a senseof responsibility among management at all levels. This helpedcreate a clean and transparent business environment for thecompany.While fulfilling their supervisory responsibilities, they also proactivelyexpanded their service functions. By accurately identifying anddisclosing risks in audit reports, and suggesting risk managementmeasures, they provided critical insights for company-widedecision-making and operational improvements. Moreover, theyplayed a key role in the non-merchandise procurement reviewprocess, effectively shifting risk control to earlier stages. Thisproactive approach produced notable results in terms of reducingprocurement costs and enhancing resource utilisation efficiency.The company carry out various internal evaluations for affiliatedcompanies to ensure the full coverage of corporate top-downinternal management. Annual internal self-assessment coversall affiliated companies, the evaluated areas including socialresponsibility, safety and health, environmental protection, etc.Core entities perform semi-annual internal self-assessmentregarding focused areas. On-site internal supervisory assessmentis implemented irregularly. External auditors carry out the auditingtask of annual internal control.According to the annual plan, the company has rolled out theinternal control oversight and evaluation of its affiliated companies.The evaluation aims to comprehensively assess and reviewthe formation of stores’ risk and internal control systems andidentify and rectify any potential risks and deficiencies. Followingthis, suggestions for rectification were proposed to promotethe optimisation and standardisation of the stores’ internalcontrol processes, implementing the use and optimisation of theinternal control manual and other management tools, so thatemployees pay closer attention to risk prevention and control inan environment in which all employees actively participate andpromote internal control.During the reporting period, the company conducted multipleinternal audits, including an audit of the economic responsibilitiesfor employee termination at subsidiaries, and an audit of subsidiaryoperations and management. In respect of expense management,internal auditors performed spot-checks of vouchers to inspect theperformance and compensation of enterprise leaders, as well asthe compliance of business expenses. In addition to ethical codes,the audit also covered corporate governance, strategic decision-making, human resources management, financial management,procurement management, project management, investmentmanagement, information systems and other business areas.
Compliance management
Anti-money laundering (AML)
Compliance serves as a cornerstone for the company’s sustainablegrowth. To enhance lawful and compliant operations whilstmeeting compliance risk mitigation requirements, we have put inplace the “Compliance Management Measures” to continuouslystrengthen our compliance policies and processes. We requirethat every key third-tier affiliate set up a Compliance Committee,which is responsible for reviewing and implementing key rule of lawand compliance programmes. By ensuring law-based businessoperations, management, and governance, we aim to create avertically integrated compliance governance structure acrossthe organisation. In May 2025, we officially appointed a ChiefCompliance Officer and established a total of 144 ComplianceOfficers, covering all key areas and critical departments across theheadquarters and its affiliates.In accordance with our Annual Compliance Review Plan, weconducted and completed our annual compliance review for allbusiness units in 2025. Covering both the headquarters and itsaffiliates, our annual compliance review identified 36 compliancerisk items. For each identified risk item, we are systematicallytracking and monitoring the implementation status of the relevantremedial actions.We have put in place specific channels for reporting cases of non-compliance across all levels of the organisation. We have releasedthe “Policy for Reporting Non-Compliance”, along with detailedguidance on how to report and resolve cases of non-compliance.We have received, resolved and closed 13 reported cases of non-compliance since releasing the policy. We have also establisheda specific non-compliance database which enables us to sharerisk alerts or indicators with relevant departments, ensuring timelyfollow-up and preventive actions.
We strictly comply with the Anti-money Laundering Lawand other laws and regulations in the regions in which weoperate. Accordingly, we have developed AML policies andprocedures, such as “Know Your Customer” procedures,transaction monitoring, and suspicious transaction reporting andrecordkeeping. The company is constantly looking for ways tofurther improve its anti-money laundering measures. In addition, weprovide AML training to our employees to ensure that they are keptabreast of laws, regulations, and updates to our AML policies andprocedures.We have put in place the “Supervision and Management Measuresfor Preventing and Combating Smuggling Activities ExploitingDuty-Free Shopping Policies (Trial Implementation)”. Working withCustoms to combat the practice of the “reselling duty-free goods”,CTG Duty Free makes efforts to raise the legal and complianceawareness of consumers by informing them of the consequencesof such practices and strengthening self-supervision.
Law Safeguards Life in All Stages (《法护一生》), a promotional film about thenational Constitution, was broadcast onloop via digital screens in the lobby on thefirst floor and the canteen on the secondfloor of the company’s premises. Alldepartments were organised to view thefilm through staggered scheduling.
Case study
4041
Principles of Governance
Anti-Bribery and Anti-CorruptionWe strictly adhere to the Company Law and the Preventionof Bribery Ordinance. We have put in place the “Methods forEvaluating Clean Business Practices in Personnel Selection andAppointment”, as well as processes to supervise its implementationat the company and subsidiary levels.System and MechanismsThe company has formulated a supervisory and managementsystem covering its headquarter and affiliated companies andestablished a leading group and a coordinating group for upholdinganticorruption. The anti-corruption leading group convened twomeetings during the year to study and analyse the developmentof anti-corruption Party building, anti-corruption trends, and theecosystem of corporate politics, and then draws up work plans.The coordinating group comprises Disciplinary Inspection, Audit,Inspection, the Party Office, the General Office, Human Resources,Finance, and Legal, among other departments, held one meetingduring the year. They coordinate the supervision of all parties toenhance supervisory effectiveness in accordance with the workingrules. The company has formulated the Implementation Plan forthe Comprehensive Oversight System 2025, with oversight by theParty organisation at the core, to coordinate all oversight functions,achieve coordinated oversight and concerted management,strengthen integrity risk mitigation efforts, and enhance themechanisms and systems for governance.
Reporting MechanismsThe company accepts letters, visits, and telephone reports, andannounces telephone numbers, e-mail addresses and physicalmailboxes for reporting. Our staff must strictly comply with theconfidentiality and avoidance mechanism, precisely controlthe information scope and the clues of problems, and strictlyprohibit any disclosures regarding the case information anddisposal solution. As a protection measure for whistle-blowers,the company’s Disciplinary Inspection Committee enforces the“Rules on the Handling of Whistle-blowers’ Reports by DisciplinaryInspection and Supervision Organs” and other regulations, strictlyprohibits the revealing of whistle-blowers’ information and givingpriority to handling the accusations with a real name; retaliationagainst whistleblowers is strictly prohibited; any identified instancesare met with severe disciplinary action; for anonymous reports andreporting materials, unauthorised checks of the whistle-blowers’information are strictly forbidden.Dedicated SupervisionThe company regularly implements special supervisory inspections,including monitoring and reviews before festivals and holidays.These approaches cover persons who are in leadership positions,examine their performance of duties and scrutinise their businessexpenditures. Special supervisory inspections are also conductedfor compliance operations.
Advocacy against corruptionThe company continues cultivating an integrity-based culture tocreate a stable and law-abiding operating environment. Throughout2024, the company implemented the “Detailed Work Arrangementsof the Company’s CPC Committee in Implementing the Opinionson Strengthening the Development of an Integrity Culture in theNew Era”, “Detailed Measures of the Company’s CPC Committeeon Further Implementation of the Central Party Leadership’s Eight-point Decision” to reinforce the construction of a culture of integrityand the disciplinary structure. Moreover, the company held variousanti-corruption and compliance training sessions, engaged in anti-corruption dialogue with new hires during the on-boarding process,staged educational seminars for all CTG DUTY-FREE employeesto warn against the dangers of corruption, carried out educationalactivities through the “cdf e-Party” application, and strengthenededucation for company cadres to remind them to distancethemselves from corruption and stay committed to acting withintegrity and complying with the law.In 2025, the company concluded one corruption lawsuit, and nocorruption-related violations occurred during the year. The numberof effective corruption reports received was 0.
Anti-unfair competition
The company strictly abides by the Anti-monopoly Law ofthe People’s Republic of China and the Law of the People’sRepublic of China against Unfair Competition and other laws andregulations. We participate in fair market competition according tobusiness ethics and market rules and forbid commercial bribery.The company is fully committed to implementing relevant legalprovisions, including prohibitions on entering into the arrangementswith competitors that have a detrimental competitive effect, orarrangements with distributors, customers, and suppliers thatmay harm competition and consumer rights, and prohibitionson abuse of market dominance. We continuously optimise thecompany’s anti-bribery mechanism to ensure its effectiveness. Weare earnest in conducting self-examinations and self-rectifications,and we do not violate any laws, regulations, business ethics ormarket rules in business activities or engage in any unfair tradingpractices that undermine fair competition. At the same time, thecompany is steadily integrating the concepts and values of anti-unfair competition into the daily behaviour of its employees. Thecompany continues to attract consumers by engaging in trustedbusiness operations and providing excellent services, and wecontinue to promote anti-corruption, anti-monopoly, and humanrights protection initiatives in relation to our suppliers.
Intellectual Property Right (IPR) Protection
We attach great importance to works related to IPR and hasformulated the “Brand Management Measures” and “TrademarkUse Management System”, which regulates the management anduse of IPRs, including the standardised management of the BrandVisual Identity (VI) system and the use of trademarks.
In December 2025, we conducted a specific training sessiontitled “Preventing Unfair Competition Risk and Protecting OurLegal Rights”, with both in-person and virtual attendanceoptions. Delivered by a partner from JunHe Law Firm, thesession provided in-depth insights into how to determine andidentify typical infringement activities in the duty-free retailindustry, including trademark confusion, commercial defamation,false advertising, and data-related unfair competition. Itsystematically addressed topics including how to align pre-incident compliance processes with business scenarios, how tobuild a robust early warning mechanism, and how to respondto acts of unfair competition when they occur, includingsuggested procedures for evidence preservation (both onlineand offline) and emergency handling protocols. Approximately100 participants from our headquarters and affiliates attendedthe training session, including professionals in legal affairs, riskmanagement, compliance, marketing, branding, e-commerce,and business units.
On 19 December 2025, the company's independentlydeveloped “graphical user interface for consumption datastatistics and visualisation analysis display of electronic devices”and “graphical user interface for visualisation analysis displayof warehouse logistics information of electronic devices”successfully obtained patent authorisation from the NationalIntellectual Property Administration (CNIPA). These patent grantsnot only demonstrate the company’s continuous innovationcapabilities but also further solidify its technological competitiveadvantage and leading position in the industry.
Specific Training on “Preventing Unfair Competition Risk and Protecting Our Legal Rights”
The company has been granted two patents, further solidifying its technologicalcompetitive advantage in the industry
In September 2025, we organised a specific training titled“Identifying Trademark Infringement Activities and ProtectingTrademark Rights”. Delivered by legal experts fromJunZeJun Law Offices, the session focused on key aspectsof trademark management and protection throughout thetrademark lifecycle, including an introduction to trademarksand trademark rights (exclusive rights and registeredtrademarks) and identification of trademark infringementactivities, legal consequences of these activities and legalremedies. All relevant personnel from our headquartersand affiliates, spanning functions such as legal affairs,risk management, compliance, marketing, branding,e-commerce, as well as business units, were required toattend the training session.
Specific Training on “Identifying TrademarkInfringement Activities and ProtectingTrademark Rights”
Number of IPRs, such astrademarks and copyrights
Number of valid Patents
As of 31 December 2025, the company had obtained the followingintellectual property rights:
We established a comprehensive retail terminal VI system, whichconveys the corporate philosophy, culture, and norms to the publicand eventually shapes a unique corporate image.For trademarks with more comprehensive applications, thecompany has a team of professional lawyers to monitor trademarkinfringement both at the time of registration and use; we will defendour rights vigorously in the event of a violation.
Case study
Case study
Case study
4243
Principles of Governance
Enhancing Information Security and Implementing Privacy Protection
Development of information and datasecurity systemsThe company and affiliated companies have established andimproved various cyber and information management systemsand standards to suit the company’s digitalisation needs. CTGDUTY-FREE formulated information security management systemsthat cover information security management, network securitymanagement, data management, information encryption rules,information security emergency plans and other aspects ofinformation security management. In this way, we have developedcomprehensive information security management systems thatfeature well-defined responsibilities, a clear division of labourand a combination of technology and management. In line withnational standards, industry standards, and the circumstancesspecific to the duty-free industry, we have developed our first
RisksImpact ResponseCybersecurityrisks
?Possible impacts such as dataleakage, system intrusion, anddamage to brand reputation
?Each year, the company regularly conducts one or two simulation exercisesusing phishing and other social engineering attacks, which allows employees tolearn how to identify and respond to various cybersecurity threats in a real-lifeenvironment, enhancing their security awareness.
Customer
privacydisclosure risk
?Leakage of membership informationmay cause the business to lose high-end customers and incur costs inrepairing damage to its brand.?Duty-free consumers’ data maybe abused in a way that results inviolations of offshore duty-free quotas,such as the smuggling of duty-freegoods by “purchasing agents” (tradersreselling duty-free goods) in Hainan.?Illegal cross-border transfer ofconsumers’ data may present athreat to the customs supervisionsystem; Duty-free supply chain datathat has been manipulated overseasmay present a danger to the safedistribution of strategic resources.
?Encrypted storage and transmission of information, data masking for customerinformation, hierarchical access management, multi-measure access control,member information not exportable, establishing a sound system log to protectcustomers’ information.?Regarding customer service scenarios that involve substantial user privacy,data confidentiality protocols are centred on establishing the company’s dataownership. The system employs private and hybrid cloud deployment models,mandating that core knowledge bases and session data reside within physicallyisolated private environments (e.g., AliCloud/Tencent Private Cloud). Data sharingwith public large language models is strictly prohibited, ensuring corporate dataremains contained. Building upon this, we implement stringent internal Role-Based Access Control (RBAC) to manage with precision access permissions totraining data and logs. This is complemented by SSL-encrypted transmissionchannels and audit trails for all operations, mitigating the risk of internal databreaches resulting from unauthorised access.
Governance
The reporting process includes:Reporting frequency:
At least one report to management every six months; At least one report to the Steering Group annually; and Ad hoc reports driven by incidents or audits.
Strategy
system of information technology standards, which establishesprinciples and standards for the performance of informationtechnology-related work. The company’s Board of Directors is thehighest responsibility and decision-making authority with regardsto information security and privacy protection. The InformationTechnology (IT) Department is responsible for specific workin information security and privacy protection. The Brand andMarketing Department is responsible for carrying out the specificwork for customer privacy protection. To keep the team updatedwith the latest IT knowledge, IT staff members are required toreceive regular training. The company’s membership systempasses Level-3 Security Certification.
Additionally, we emphasise the requirement for immediate reportingin critical situations to ensure the company can effectively managedata security risks, meet compliance requirements, and providereliable support for business development.
Project Steering Group; Project Owner; and Cloud Resources Team, Development Team, and Business Team.
The Cloud Resources Team consists of personnel from ChinaTelecom, while the Development Team and Business Team aremade up of company personnel. The company continues todeepen the construction of the innovation consortium data platformand has jointly developed the CTG Duty Free Big Data CloudPlatform R&D project (中旅免税大数据云平台研发项目) withChina Telecom Cloud Technology Co., Ltd. In 2025, the platformwas continuously optimised and upgraded to enhance queryperformance, improve data warehouse integrity, finish dashboarddevelopment, and enable natural language interaction.
As online business develops, the company places great importanceon achieving a high-level balance between data security and datavalue extraction. According to the Group’s Administrative Measuresfor Research and Development Projects (Trial), the companystrengthens the security management of R&D information, with aparticular focus on ensuring the security of large model parameters,user profiles, and related data.
To respect and protect customer privacy, we strictly abide bythe Personal Information Protection Law and other laws andregulations, and develop our own policy documents such as the“CDFG Privacy Policy”, the “Privacy Protection for CustomerServices” and the “Checkpoints for Customer Services”.The company updated its customer privacy policy, which isavailable to consumers and other stakeholders on its website(http://www.ctgdutyfree. com.cn/p/yinsizhengce.html).
In terms of information security, according to relevant laws andregulations, including theCybersecurity Law of the People’sRepublic of China, the Data Security Law of the People’s Republicof China, thePersonal Information Protection Law of the People’sRepublic of China, theRegulations on Protecting the Security ofCritical Information Infrastructure, and theAdministrative Measuresfor the Multi-level Protection of Information Security, we havedeveloped a system of cybersecurity policies.
We have established a clear organisational structure withdefined responsibilities – the Cybersecurity & InformatisationSteering Group and the Cybersecurity Department. We have alsoimplemented a mature, standardised, multi-level data securityincident reporting mechanism, which defines the vertical path andfrequency of reporting from operational personnel to management:
In terms of data security, the company has established athree-level organisational leadership system and has reinforced theresponsibilities of each level based on the 2025 annual goals. Thesystem includes:
emergency activation reporting to management escalation to the Steering Group regulatory notification, etc.
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Principles of Governance
RisksImpact Response
AI applicationrisks
?Possible risks such as user privacyleakage, model hallucinations,unauthorised information disclosure,and loss of control over digital livestreaming content in AI applications.
?The company deploys an independent Large Language Model (LLM) Firewallas the first line of defence in the underlying architecture of all AI projects. Thisfirewall intercepts and processes sensitive data before it reaches the modelinference layer. By implementing sensitive data protection strategies, the systemcan automatically identify and de-identify personal identity information, such asphone numbers, ID cards, and bank card numbers, in user inputs in real time.This completely eliminates the risk of original privacy data being illegally obtainedor retained by the large models. Additionally, the system effectively defendsagainst malicious command injection through prompt attack protection features,preventing data leaks or jailbreaks caused by misleading questions. This ensuresthe confidentiality of data interactions from the outset.?As for consumer-oriented shopping assistant applications, our data confidentialityfocuses on preventing the leakage of internal business strategies and ensuringthat response content remains within controlled boundaries. The system usesRAG (Retrieval-Augmented Generation) technology to construct a strict “domainknowledge fence,” forcing the model to only retrieve and respond within theofficial product database and activity rules. Additionally, safety instructionsare embedded in the prompt engineering process to effectively block non-official channel information. This mechanism not only prevents the model fromgenerating hallucinations but also strictly guards against competitors attemptingto extract internal pricing strategies or induce the model to recommendcompeting products through malicious probing, thereby ensuring theconfidentiality and security of core business data.?For digital person live streaming scenarios, our data confidentiality guidelinesfocus on real-time risk control of output content to prevent unauthorisedinformation disclosure. The entire process implements a dual data managementapproach of “pre-event + during-event”. Specifically, before the live stream, allscript data must undergo both “AI automatic review + human recheck” verificationto ensure that they do not contain any undisclosed internal information. Duringthe live stream, we rely on real-time monitoring and blocking mechanisms toensure that if sensitive keywords or signs of “out-of-control” behaviour deviatingfrom the pre-set data range are detected in the digital person’s voice stream,the firewall will immediately cut off or replace the output, thereby preventinginformation incidents caused by the generation of uncontrollable content.
Digitaltransformationopportunities
?The development of artificialintelligence and information technologywill significantly enhance theoperational efficiency of the company.
?The company is committed to optimising its innovation system, with a focus onfull-chain protection. We continuously improve our funding support mechanismsand have established a special budget for scientific and technological innovationto ensure the efficient allocation of funds. We also strengthen organisationalsupport by relying on the Innovation Committee for unified decision-makingand the Innovation Committee Office for implementation, providing a solidorganisational foundation for the standardised and orderly development ofinnovative businesses. We continue to increase personnel support, focusing onkey areas such as digital technology and data governance, to build a professionalinnovation talent team. Additionally, we improve incentive mechanisms tomobilise the enthusiasm and creativity of core backbone employees, fullystimulating the innovative vitality of researchers, and promoting the developmentof the company’s innovative business.?The company has constructed a digital platform for customer services, has
advanced the development of the membership platform, and has acceleratedthe promotion of the all-channel store membership platform to enhancethe convenience of member consumption. We continue to deepen multi-channel integration and cross-industry collaboration ecosystems, optimisingand upgrading the Big Data Cloud Platform R&D project with China Telecomby improving query performance, advancing data warehouse integrity, andcompleting dashboard development to achieve natural language interaction. Wealso achieve complementary internal resource advantages and data sharing.?The company aims to enhance the intelligence level of customer service, promote
the implementation of the “AI +” initiative, and closely align with the core strategyof “Application Leadership and Data-Driven Innovation,” to deeply integrate largemodel technology with tourism retail business scenarios.?We also advance the digital transformation and upgrading of the supply chain,
actively expand the categories on the supply chain fulfilment platform, andexplore the application breadth and depth of the digital procurement systemacross all categories and channels.?We continuously optimise the retail system to ensure operational efficiency
improvements and enhance the customer shopping experience.? The company is steadily advancing the Project Nebula (星云项目). We establisheda unified One ID system for CTG Duty Free (中旅免税) members in 2025, drivingthe growth of our online business.
Management of impacts, risks and opportunities
Seizing new opportunities in the digital ageThe company has built a data centre platform to explorecompliance-related analyses of duty-free consumption dataand island tax-free policies. We unlock the potential of dataelements, deepen data governance, and promote the efficient Metrics and Targets
To enhance staff awareness of customer privacy protection, thecompany provides special training for all staff at least biannually.
In 2025, the company experienced no data security incidents orcustomer privacy breaches.
Collaboration with SuppliersThe company includes clauses on customer information security, privacy protection, and related measures in its cooperation agreementswith suppliers and business partners.
and compliant utilisation of data elements to leverage their value.This fully unleashes the value of data, enhancing our businessperformance metrics.
Membership privacy protectionA customer can register cdf memberships at the system ofmember terminal (cdf membership applet, cdf membership App,cdf Membership Club and Cdf (Hainan) Smart Retail Technologyand other cdf platform terminals) in a self-service manner. Oncethe information is entered, the key parts of the personal data aredesensitised; and the customer has the right to access, adjustand delete his/her personal information at any time. The companyobtains personal information from the self-input of customers anddoes not collect personal data from third parties (except whenrequired by law). The company undertakes to delete customerdata within the time limit required by law and does not providepersonal data to any third parties (except when required by law).Following membership account cancellation, cdf retains the original
member’s cancelled account information, order records, andonline behavioural data for 365 days. From day 366 onwards, cdfretains only non-personally identifiable order information, such astransaction records, for compliance and regulatory purposes.The cdf membership “Service Agreement” and “Privacy Policy”are published on the company’s official website. All new membersmanually tick the consent box during registration. Whenever the“Service Agreement” or “Privacy Policy” undergoes updates,the official website promptly publishes the revised versions.Furthermore, all existing members must manually tick the consentbox again upon their next login.
Value Creation of the MembershipSystem
To promote the cdf membership system, the company continuesto expand channels, enrich members benefits, and deepencross-industry cooperation with third-party platforms. Weaccelerate the promotion of the all-channel store membershipplatform to enhance the convenience of member consumption. Wecontinuously deepen the integration of multi-channel ecosystemsand cross-industry collaborations to achieve complementaryinternal resource advantages and data sharing. We also integratethe private domain platforms for members, and build and managea unified private domain traffic pool, thereby achieving deepcustomer connections and precise marketing.
In 2025, the company achieved a sophisticated balance betweendata security and data value extraction. In terms of safety andcompliance, we successfully established a comprehensiveprotection system that covers the entire lifecycle of internal datawithin the CTG Duty Free Big Data Cloud Platform, fundamentallyeliminating the risk of sensitive information leaks, and fully meetingnational laws, regulations, and regulatory requirements. In termsof business value, we released more high-value data for analysisand decision-making, empowering precise marketing and memberoperations in multiple scenarios, and successfully convertingcompliance costs into core competitive advantages.
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Upholding Original Beliefs and Mission toEnsure Trusted Business OperationsRobust, Green and Intelligent Supply ChainEngaging in Good Initiatives to Act as a Re-sponsible Corporate
CTG DUTY-FREE actively responds to United Nations(UN) Sustainable Development Goals (SDGs) 4, 10,11, 12 and 15, and focus on meeting our socialresponsibility, pursuing excellence, and providingconsumers with quality products and services.
Prosperity
Prosperity
CTG DUTY-FREE has formulated a “Service Quality Work Plan”,designed to re?ne standards for business operations and servicequality, thereby enhancing its service capabilities and standardsacross all business lines.
Upholding Original Beliefs and Mission to EnsureTrusted Business Operations
GovernanceIn compliance with current laws and regulations, such as theConsumer Rights Protection Law and the Personal InformationProtection Law, the company continues to improve its service
Customer service system in HainanCustomer service system in Qianhai
the “cdf After-sales Service Management Policy in Hainan(for Physical Stores)”, “After-sales Service ManagementPolicy (for Online Malls)” and the “Detailed Rules forHandling Customer Complaints at Different Levels”. In2025, to benchmark against leading commercial servicequality supervision models in the industry, the cdf SanyaInternational Duty-Free Shopping Complex updated its“Monthly Service Quality Assessment Checklist”, “ServiceQuality Inspection Checklist”, “Sales Process InspectionChecklist”, “Joint Inspection Checklist”, and “MysteryShopper Survey Form”. The Boao Duty-Free Shop revisedits Sales Department Management Regulations andpromptly enhanced its service quality management system.
The “Customer Service Centre Management Policy”, the“Business Rules for the Customer Service Centre”, the“After-sales and Return Rules for the Customer ServiceCentre”, the “Rules for the Use of Free Items to AddressCustomer Complaints for the Customer Service Centre”and the “Emergency Response Rules for the CustomerService Centre”
StrategyRisks/opportunities
ImpactsResponse plans
Declining customersatisfaction
Decreased customersatisfaction may lead tocustomer attrition
? The company continuously carries out various training, including leadership training, professional skills training for front-linestaff, and general knowledge training, to ensure that employees at all levels possess professional service capabilities. Theultimate goal of the training is to accurately grasp customers’ core demands.? We also constantly improve our talent management and staff training system. We have been developing a system of servicestandards to produce a standardised library and training system covering areas such as product information, customspolicies, platform-based policies, after-sales standards and customer service rules and standards. In this way, we aim tominimise deviations from the company’s standards.? The company’s cdf Membership Club focuses on the five optimisations of expanded service channels, standardisedservices, timely services, automated services, and outcome-oriented services, to effectively improve service quality, maximiseconsumer satisfaction and service efficiency? Prioritise resources for preferred customer activities and experiences; establish cross-departmental collaboration to collect,
analyse, and implement customer feedback for service process optimisation? Continuously enhance our retail system to improve intelligent customer service capabilities; advance “AI plus” initiativesaligned with our “Application-Driven, Data-Powered” strategy, integrating large-scale AI models with tourism retail scenariosInadequate product
informationdisclosure
Informationasymmetry may causemisunderstandings orconsumer complaints,negatively affectingsales
? The company has been improving the disclosure of merchandise information to achieve the orderly classification of goods,
the full disclosure of product information, and fair and transparent prices.? Duty-free goods and non-duty-free goods are showcased separately on different web portals to avoid misleading consumers.
Inappropriateimplementation ofsales return/exchange
policies
May lead to customerdissatisfaction,escalate sales returnand exchange costs,and negatively impactproduct sales as wellas our reputation
? In strict adherence with the provisions of the Interim Measures for the Return without Reasons of Commodities Purchased
Online within Seven Days, the company provides clear procedures and guidance on the return of goods without the need tospecify a reason, and clearly identifies and confirms with consumers those goods that are not applicable under the policy inaccordance with the law. The company does not arbitrarily expand the scope of which goods are not applicable under thereturn of goods without specifying a reason.? In accordance with the instructions of the administrative guidance meeting for duty-free industries organised by the State
Administration for Market Supervision (SAMR), the company headquarters arranged for its subsidiaries to jointly make apublic commitment to society. The platform shopping guidance was revised to delete additional restrictions on the returnand replacement of goods. Only four categories of goods have been specified as not applicable under the policy of return ofgoods within seven days without the need to specify a reason: near-expired goods, damaged goods, goods without plasticpackaging, and goods with a short shelf-life. The applicability of the policy to particular goods is clearly specified on theproduct web portal. Consumers are asked to confirm their understanding of the “Shopping Guidance” and tick an additionalcheck box for their acceptance of goods that cannot be returned or replaced within seven days without specifying a reason.
Ineffectivecustomer feedback
mechanisms
Failure to promptlyidentify and resolveissues may degradecustomer experience
? Put in place a closed-loop management process for customer feedback. Under this process, we collect data on user
experience and customer feedback in real time through the customer service system’s evaluation section, after-sales ticketsand complaints; prepare and send the “Monthly Customer Service Centre Report” to the corresponding departments eachmonth for improvements or adjustments; set different response timeframes based on the gravity of the feedback/complaintsto ensure the relevant issues are addressed in a timely manner.? Establish a proactive customer satisfaction and Net Promoter Score (NPS) feedback mechanism, implementing an omni-
channel and all-scenario monitoring system that covers both online and offline touchpoints. This system enables dynamic,real-time monitoring of customer satisfaction and NPS, coupled with immediate risk warning capabilities. Through the closed-loop management pathway of “monitoring - early warning - improvement - feedback”, we ensure customer experience issuesare systematically resolved in a closed-loop manner, significantly enhancing overall customer experience.? Establish a unified customer service centre system: We have implemented a centralised customer service hotline (4001100100)across all domestic stores and online e-commerce platforms. Through intelligent call routing and distribution, intelligentservice solutions, standardised processes, and unified service scripts, we have established a rapid response mechanism thatachieves a closed-loop management system for customer service data. This system enables “unified call intake - channel-specific distribution - closed-loop management of customer feedback across channels - unified data analytics”.? Develop a unified service scenario definition mechanism that covers all online and offline channels and scenarios. This
framework establishes a standardised service language system, enhancing customer service operational efficiency. Theimplementation of the “unified scenarios - unified analysis - unified improvement - unified feedback” closed-loop mechanismsignificantly improves customer issue resolution efficiency.? Hainan DF prioritises service efficiency and quality monitoring through the establishment of a dedicated daily service report
and monitoring mechanism. This ensures real-time responses to specific service complaints and their resolution within 24hours. To further reduce repeated complaints, the company has implemented several mechanisms, including a daily reportmechanism to track logistics and order status, an order alert system for high-frequency returns, and a dedicated follow-upprocess for special customer complaints.
Insufficient digital
capabilities
Insufficient digitalcapabilities affectconsumer shoppingexperiences and reducecustomer satisfaction
? The company continues to integrate its online and offline channels, providing consumers with “pre-sales, sales, and after-
sales” tourism retail services that are both more convenient and of higher quality.? To address this, we have taken the following measures before, after, and during sales, respectively: before sales, we haveestablished a robust training system to enhance employee professionalism and deliver standardised, high-quality servicesupport; we have optimised the performance of the core membership system and improved the user interface (UI) friendlinessand overall user experience (UX) on the client side; we have introduced a simplified membership registration solution forprivacy-conscious users, enabling one-click registration with only a phone number or email address and verification code.This streamlined process ensures user privacy and data security while enhancing registration efficiency; we have addedand enhanced self-service inquiry and online customer service functionalities; during sales, we have optimised the in-storeenvironment to create a more convenient and seamless shopping experience; after sales, we have standardised after-salesservice protocols and leverage digital tools to deliver consistent after-sales support;? We launched the CDF NPS survey system, integrating a digital questionnaire platform to automate Voice of the Customer (VoC)initiatives. This system enables proactive survey collection, data analysis, report generation, and optimisation tracking.
Inheriting and Elevating Quality Service
The company has established a “Work Plan for Service Quality”to improve our system of quality standards for businesses andservices, improved its customer service capabilities and standardsacross various business.standards. Each subsidiary is required to put in place relevantpolicies aligned with their business characteristics and ensure theeffective implementation of these policies.
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Steadily Improving Customer Service Across All Stores in 2025
The Riyue Plaza Duty-Free Shop under Hainan DF
Customer service personnel are granted suf?cient authority basedon the product’s selling price to handle after-sales cases, whileresources dedicated to resolving them have been increased. Thesemeasures have improved both customer satisfaction and caseresolution rates.
Enhanced customer service response:
01.
Proactive customer service initiatives:
02.We identify customers needing assistance before issues arise. Thisproactively prevents negative shopping experiences caused byconfusion about offshore duty-free policies, promotions, or brandlocations.Optimisation of the “First-Contact Accountability System”:
03.This system establishes that the ?rst salesperson interacting with acustomer has the primary point of responsibility. It boosts servicequality and customer satisfaction by encouraging teamwork,ensuring swift responses to inquiries, reducing waiting times,preventing issue shifting, and improving resolution ef?ciency.Optimisation of VIP reception services:
04.We offer value-added VIP reception services for high-net-worthcustomers. We continuously upgrade our VIP reception standardsand have opened a public reservation window to enhance the one-on-one shopping experience of these customers. We also providepriority checkout privileges to increase customer loyalty.Optimisation of value-added services at themaintenance centre:
05.
To strengthen our brand image, we provide attentive and thoughtfulvalue-added services that enhance customer satisfaction andloyalty. These essential luxury care offerings include leathercare, jewellery cleaning, watch demagnetisation, and braceletadjustments, ensuring customers feel con?dent in their purchases.By delivering these premium after-sales services, we aim to fosterlong-term customer retention.
We enhance our staff’s professional service capabilities through atiered training system for beauty consultants, coupled with regularskills development training. We have introduced a dedicated one-on-one beauty consultant model and have refined our customerpro?le management system to deliver highly personalised services.Our premium members now enjoy an upgraded service experience,including customised skincare plans, hand and facial massagetreatments, intelligent skin analysis, branded massage experiences(like Breo), and trials of professional beauty devices.
Optimisation of value-added services for premiummembers:
07.
Delivery of heartwarming services on the ground:
06.To enhance service quality during major holidays, we createa festive atmosphere and actively engage customers throughincreased interaction and participation. Specifically, we preparedrinking water, cookies, and candy at the service desk; provideexquisite balloons for families with children; offer a pet-friendlyshopping experience; and supply convenient amenities such aswheelchairs and baby strollers. These efforts ensure a seamlessand delightful shopping experience for our customers.
Store Manager Development Series:
08.This comprehensive programme is designed to enhance the overallmanagement capabilities of store managers through systematictraining, empowering them to drive ef?cient store operations andperformance growth.Upgrade of the sales service manual:
09.The manual includes processes, scripted dialogues, and guidelinesto help employees and customers understand our servicestandards. The service manual is regularly updated to align withevolving business needs. This resource enables new employees toquickly master service requirements and efficiently resolve work-related issues.
Monthly Smile Service Star:
10.
To strengthen customer retention, we raise employee awareness ofits importance and emphasise customer loyalty. We ensure trainingextends beyond theory to practical job applications. Additionally,we foster a culture of service excellence and sustain enthusiasm forcontinuous improvement through the “Monthly Smile Service StarElection” initiative.
Effective utilisation of the Customer RelationshipManagement (CRM) System:
11.By leveraging WeCom’s CRM module and integrating it with theASC. Excellence Service Observation programme, we enhanceemployee professional skills and enable standardised, systematiccustomer relationship maintenance. By December 2025, the CRMsystem had accumulated over 178,000 users. Repurchase revenuevia the CRM has already increased 81.7% year-over-year as ofDecember.
Buddy Support Programme:
12.
We harnessed the motivating power of role models to launchthis initiative, covering product knowledge, sales techniques,CRM system maintenance, Xiaohongshu ( “RedNote”) platformoperations, and service skills enhancement, and set clear goals forbuddy partnerships.
Enhanced employee capabilities:
13.
First, we have launched a specialised training programme toenhance store manager capabilities, facilitating cross-storeexchanges for shared learning and strengthening the managementteam’s service leadership. Second, we have launched the ASCExcellence Service Observation programme to establish servicebenchmarks and identify exemplary models. Third, we upgradedthe sales service manual to re?ect current best practices. Fourth,we organised a role-specific service skills competition to igniteemployee passion for service excellence. Fifth, we refined theannual Smile Service Star selection criteria to establish clear,exemplary service standards.
ASC Excellence Service TrainingBuddy Support Programme
The Boao Duty-Free Shop has implemented a store managerinspection system to evaluate employee performance in key areas:
customer service, appearance and grooming, sales techniques,use of professional terminology, and cross-selling abilities.Service quality is now incorporated into the monthly and annualperformance evaluations of all frontline staff. These assessmentscontinuously strengthen employee service awareness, standardiseservice behaviours, and enhance customer service quality.
The Boao Duty-Free Shop under Hainan DF
ASC Excellent Service Training
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Continuously Enhancing the After-sales Service ExperienceIn alignment with the integrated after-sales service system of cdf Hainan, we have put in place consistent service standards across Hainan,including:
Collaboration with government agencies:
Through one-stop service solutions, wehave achieved a 100% resolution rate forcustomer issues by implementing on-sitejoint operations to address complaints andpublic sentiment.
Secure delivery services: For delivery-related concerns, we collaborate with SFExpress to reinforce packaging for fragilegoods, resulting in a 50% reduction inrelated complaints. We have also introducedsecurity delivery cards and after-sales tips,enabling proactive service notifications toreach 90% of customers.
Rapid response teams: We have formeda dedicated task force to handle commonissues, offering customised, off-islandpickup services for customers unable tocollect goods normally, thereby maximisingorder retention.
A tiered authorisation framework: Throughthe implementation of a tiered authorisationframework, we have expedited negotiationprocesses to achieve customer satisfactionand enhance the resolution rate ofcustomer complaints. Additionally, wehave strengthened inter-departmentalcollaboration by establishing regular analysisand consultation sessions on product-related and delivery issues, continuouslystriving to improve post-sales managementpractices.
Service assurance infrastructure: Ourdedicated after-sales service team providesa 24/7 hotline and online customer servicechannels. By adhering to the standardsof a “97% or higher call centre answerrate, a 10-second response time for onlinecustomer service, and a 99% or highercustomer satisfaction rate”, we havesignificantly enhanced the efficiency ofcustomer complaint resolution.
Robust risk prevention systems: We haveestablished a closed-loop risk managementsystem to monitor ticket handling standardsand implemented a dual review mechanism.This proactive approach enables earlyidentification and resolution of operationalrisks, shifting from reactive to preventive riskmanagement.
Haikou International Duty-Free Shopping Complex
Leveraging social platforms, we have established an omnichannelservice ecosystem combining “online precision reach with offlineimmersive experiences”. Transforming social media into ourprimary user touchpoint, we have created a closed-loop decision-making journey. Since implementation, we have published over800 original content pieces generating 680,000+ impressions. Oursocial platforms have garnered 30,000+ engagements and 6,000+comments, establishing strong brand advocacy.
End-to-End Service Journey Support
04.
We have developed personalised service systems tailored todiverse consumer segments, launching ten contextualised servicescenarios – including children’s craft workshops, dedicatedshopping assistants for seniors, and pet-friendly services– achieving comprehensive coverage across all customergroups. By mapping ten critical service touchpoints from pre-visit to post-departure, we integrate Hainan’s regional culturalelements. Through personalised journey guidance, multilingualconsultation support, and dedicated “Cultural Tourism Concierge”accompaniment, we deliver distinctive and memorable serviceexperiences throughout the entire customer journey. For high-net-worth clients, our division has pioneered VIC value-added servicesblending tourism and cultural elements, alongside enhancedconsumption privilege programmes. We consistently roll outbespoke services and thematic activations aligned with seasonalfestivals and holidays.
Contextualised Service Standards
03.
Throughout the year, 133 specialised training sessions wereconducted across ?ve key categories: brand knowledge, businessprocesses, laws and regulations, service innovation, and etiquette/service English. These sessions covered over 1,500 participants,accumulating more than 60 training hours, consolidating theprofessional foundation and service capabilities of frontline staff.The “Ten Service Enhancement Initiatives” were implemented,focusing on the structured upgrading of employees’ comprehensivecompetencies. Through daily image management, in-depthbrand knowledge learning, multilingual scenario communication,and personalised service situation simulations, we continuouslystrengthened service personnel’s professional image, expertise,and ?exible response capabilities. This provides solid ability supportfor the “one guest, one strategy” individualised service approach.
Systematised Training Framework01.
The mobile “Cultural Tourism Ambassador” service was launched.Employing a tripartite model of “basic service + cultural tourismguidance + precision marketing”, it breaks the limitations oftraditional service counters. Service response times were reducedfrom 3 minutes to 30 seconds, achieving 100% immediateresponse and on-site resolution, with customer satisfactionreaching 100%. Focusing on product-related customer complaints,we have innovatively established a “Rapid Complaint ResolutionMechanism”. By proactively offering one-stop solutions, wesigni?cantly improve handling ef?ciency and customer satisfaction.Mechanisms for daily service story sharing, customer requestanalysis, and service process iteration have been established.These guide the team to continuously accumulate individualisedservice cases, extract emotional touchpoints, and optimise service?ows during service practice. This promotes the organic integrationof “standards, warmth, and efficiency”, enabling personalisedservice that “varies by person and adapts to needs” to graduallyevolve into a core team competency that is transferable,measurable, and sustainable.
Proactive Service Model
02.
cdf Sanya International Duty-Free Shopping Complex
In 2025, Haikou International Duty-Free Shopping Complexsystematically enhanced service quality and customer satisfaction,driving the transformation of services from “reactive” to “proactive”
and “standardised” to “individualised”. This provided systematicsupport for the continuous improvement of customer satisfaction.
Enhanced services for high-net-worth customers: We aretransforming our VIP lounges from conventional receptionspaces into a comprehensive platform that integratesPremium Services, Experiential Engagement, and StrategicSales. By partnering with luxury brands, we have developedbrand experience scenarios. In content strategy, we havecultivated signature salon IP programmes that weave togethercultural curation, wellness innovation, and travel experiences.Through curated activities such as local heritage appreciationsessions, China-chic product experiences, and beautymasterclasses led by industry experts, we continuouslyelevate our service value. Furthermore, we have refinedone-on-one service processes by incorporating pre-servicepreference surveys and post-service satisfaction tracking withpersonalised product recommendations, ensuring a closed-loop service experience.We held the “Service Personnel of the Year” awards for thesecond year in a row, to recognise the most outstandingcustomer service individuals that lead by example and inspireother staff members.
Launch of our one-stop service mini-programme: On 15October 2025, we launched a one-stop service mini-programme for cdf Sanya International Duty-Free ShoppingComplex. Phase One upgrades included adding AR-basednavigation and smart parking solutions.
Enhanced training system: In 2025, we delivered over 30customer service training sessions across a wide range oftopics, including our brand knowledge, appropriate serviceprocedures, customer retention, business etiquette, and post-sales resolution. We provided a total of over 200 traininghours to more than 1,600 frontline customer service personnel
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Cater for special needs groups and improve accessible facilities
Haikou International Duty-Free Shopping ComplexOptimisation of Accessibility Facilities and Service Processes
Health & Wellbeing Services:
Professional nurses stationed in service areas providecomplimentary blood pressure checks and health guidance,offering timely support for patrons requiring healthmonitoring. First-aid kits, uniformly stocked with essential
We have established a “Real-time Response” mechanism.Customers do not need to go to fixed points; upon arequest made to any staff member or via the service hotline,personnel will deliver a wheelchair directly to their location,enabling barrier-free access across all ?oors.
Warm & Accessible Wheelchair Service:
Temperature-Controlled Drinking Water:
Dedicated drinking water dispensers adjacent to eachservice desk provide both warm water (40-45°C) and hotwater (≥90°C) to cater to different customer preferences.
The “Personal Shopping Assistant” role provides one-to-oneescorted shopping for customers needing support, assistingwith navigation, retrieving items, and policy enquiries,enhancing the independent shopping experience for thosewith mobility challenges.
Personal Shopping Support System:
Clear Vision Service:
Service desks maintain a supply of cleaned and disinfectedreading glasses for complimentary customer use, helpingalleviate temporary visual dif?culties.
Hainan DF
For elderly customers’ convenience, magnifying andreading glasses are available at the cashier counter toassist with viewing receipts and documents. We alsooffer complimentary rental of children’s pushchairs andwheelchairs within the store to ensure a smooth andconvenient shopping experience.
The Boao Duty-Free Shop:The Riyue Plaza Duty-Free Shop:
We provide convenient amenities like wheelchairs andbaby strollers. Guests can enjoy complimentary drinkingwater, cookies, and candy, and families with children canfind colourful balloons available to enhance their shoppingexperience.
We consistently uphold the “people-oriented” service philosophy,systematically improves accessible facilities, optimises serviceprocedures and system. We are committed to provide an equal,
convenient and warm shopping environment for all customers,especially those special needs groups.
cdf Sanya International Duty-Free Shopping Complex
In 2025, at cdf Sanya International Duty-Free Shopping Complex, we further elevated our service offerings by building uponexisting convenience and inclusive support for special groups. We have:
Introduced a pet-friendly policy allowing customers to bring small dogs and cats with a shoulder height of ≤40 cm.
Expanded stock levels for frequently rented items, such asstrollers and wheelchairs, to ensure uninterrupted servicesupply during peak hours.
Increased the quantity of frequently rented items
including 3 front desks, 2 customer service centres, and6 key service locations within the visitor centre. These kitsinclude essential ?rst aid supplies and emergency materials;we have also installed 6 Automated External Defibrillators(AEDs) in high-footfall areas.
Installed “First Aid Kits” at strategic locations
Increased the range of rental items from 6 (strollers,wheelchairs, shawls, baby carriers, umbrellas, child safetyharnesses) to 12 categories. New additions include: walkingsticks, pet strollers, pet backpacks, pet leashes, large dogcages, and vomit bags. This enhancement addresses abroader range of customer needs.
Expanded the service scope:
Our “Pet-friendly” policyat cdf Sanya InternationalDuty-Free ShoppingComplex
Our dedicated pet-friendlyelevator at cdf SanyaInternational Duty-FreeShopping Complex
emergency medicines and supplies, are available at keyservice points including all service desks and customerservice centres.
The company sub stores provide accessible facilities.
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We recognise that service quality are determinant to buildingconsumer trust, brand reputation, and sustainability. To this end,we have put in place robust processes to identify, assess, prioritise,monitor, and manage risks and opportunities related to servicequality.
1. Identi?cation
We regularly identify and assess risks across all businessprocesses. In addition, we regularly collect customer feedbackthrough our customer satisfaction surveys, customer suggestionboxes, as well as other means. We conduct consumer satisfactionsurveys annually to evaluate our performance in service delivery.To ensure minimal disruption to customers, we obtain their explicitauthorisation via SMS before conducting the telephone interview.To listen to customers’ voices, cdf Hohhot installed a customer suggestionbox and reviewed opinions received from time to time so as to improveservices in an all-round manner.
Impact, Risk, and Opportunity Management
Metrics and Targets
We always strive to provideour customers with satisfactoryservices. Our centralised call centreachieves a 30% response rateusing the IVR system. In 2024, thecompany’s customer satisfactionrate remained above 96%. Detailsregarding customer complaintsthe company received during thereporting period:
Total complaints received
20,281
Average hours used to handleeach complaint
hours
As at the end of 2025,complaints handled as aproportion of total complaintsreceived during the year
99.9%
2. Risk assessment and prioritisation
We employ a hybrid approach, combining qualitative and quantitativeassessments, to determine the likelihood and impact of service quality risks.Risks with the most signi?cant potential to affect customer experience and
our reputation are prioritised. By analysing customer satisfaction surveyresults, we rank risks and focus on high-risk areas that could lead to severeconsequences.Customer Satisfaction Survey 2025
Haikou International Duty-Free Shopping Complex
At Haikou International Duty-Free Shopping Complex, we have advancedroutine service quality monitoring by establishing a dual-control systemintegrating internal inspections and third-party evaluations. This approachhas comprehensively strengthened our service quality and customerexperience management.Starting from July 2025, we have conducted ?ve rounds of mystery shoppermonitoring, accumulating 140 samples with an annual average score of
94.69%. This assessment covers six S stores, taxed retail outlets, and
other multi-category retail spaces, as well as critical customer experiencedepartments such as the Customer Service Department and PropertyManagement Department, ensuring full-process and routine supervision ofcore customer-facing service operations.In parallel, we have completed 90 special inspections of customer-facingarea environmental quality, achieving an annual average score of 99.61.These inspections focused on key dimensions including professionalappearance of customer-facing staff, store environment maintenance, publicarea property quality, and standardised deployment and the updating ofmaterials and advertising campaigns.We maintain dynamic tracking, registry-based, closed-loop management foridentified issues. For systematic service deficiencies, we have in place anenhanced mechanism for cross-departmental consultation and collaboration.Through structured employee interviews, performance metrics aligned withrecti?cation outcomes, and targeted training programmes, we systematicallyembed responsibility across all levels of operations.
cdf Sanya International Duty-Free Shopping Complex
At cdf Sanya International Duty-Free Shopping Complex, we proactivelyconduct routine service quality monitoring through mystery shopperassessments, specialised service quality inspections, and weekly jointinspections.Since June 2025, we have completed 7 rounds of mystery shopperassessments (with an average score of 89.77 in 2025), achieving a
signi?cant improvement in service standardisation. In 2025, we conducteda total of 1,198 specialised service quality inspections, covering all businessprocesses. We have established a closed-loop management mechanismof “identifying issues – implementing remedial measures – reviewing forimprovement opportunities”.Through multidimensional internal inspections and enhancements tomanagement controls, the incidence of service issues has decreased by
38.55% year-on-year, directly enhancing customer satisfaction. Additionally,
we coordinated 56 weekly joint inspections, identifying 399 issues with a100% recti?cation rate.These routine inspections cover all critical areas, such as staff appearance,facility maintenance, service environment, and operational procedures. Foridentified issues, relevant customer-facing departments strictly follow ourservice quality standards and require the responsible teams to conductspecific reviews to ensure that the issues are adequately communicated,investigated and resolved through performance-linked accountability andtraining.In 2025, at cdf Sanya International Duty-Free Shopping Complex, weconducted 12 rounds of customer satisfaction surveys, contacting 14,400customers via telephone and collecting 1,440 valid questionnaires, achievingmonthly targets for follow-up visits and questionnaires. The surveys show afull satisfaction rate of 88.9%.The survey design was based on the frontline service responsibilities of threekey departments: Sales, Customer Management, and Engineering & SafetyManagement. It focused on their service attitudes and on-site operations,with results – including verbatim customer feedback – shared with therespective departments for improvement.CDFG (Cambodia) LimitedIn 2025 Q4, CDFG (Cambodia) Limited resumed its customer surveyinitiatives by conducting the Net Promoter Score and customer satisfactionsurveys. The survey results indicated opportunities for improvement inproduct pricing and membership benefits. Customers also expresseddemand for enhanced product assortment in fragrance and cosmeticscategories, particularly perfumes, as well as new luxury offerings.
3. Monitoring
Our network-wide monitoring includes real-time monitoring of the “BlackCat” platform and relevant government departments’ open channels tocollect information related to service quality on a real-time basis. In this way,we aim to stay up to date, operate a closed-loop monitoring system, andissue early warnings 24/7 for sensitive issues involving public opinion, anddistributes information to all departments and stores in a timely manner for
Emergency Health Support:
Service counters are equipped with dedicated children’semergency supplies (e.g., plasters, iodine swabs) to ensuretimely and appropriate initial care in unforeseen situations.
Instant Recognition & Encouragement:
Service staff carry cartoon commendationstickers to provide immediate, visiblerecognition for children demonstratingpositive social behaviours in public spaces(e.g., queuing patiently, polite greetings),supporting their socio-emotional development.
Professional Childcare Service:
The “Childcare Service Management Guidelines” de?neservice standards and safety protocols. Paid professionalchildcare is offered in the VIP lounge for eligible children(aged 5-12 years old, unaccompanied by adults). Prior toservice commencement, guardians must sign the “ChildcareEntrustment Registration Form” to ensure clear responsibilitiesand compliant procedures.
Safe & Convenient Travel Support:
Dedicated stroller rental points at all service counters provideclean, safety-compliant baby strollers. Drop-off at any servicecounter is supported, ensuring convenient and safe shoppingexperiences for families.
Lost Child Rapid Response:
A dedicated “Immediate Response for LostChildren” procedure is in place. Utilising thepublic address system and coordinated staffaction, immediate search and reassuranceefforts are activated to safeguard everychild’s physical safety.
Controlled Energy Replenishment:
Service staff carry individually wrapped healthy sweets.These are offered to children only after obtaining explicit parentalconsent, ensuring energy replenishment occurs safely and withincontrolled parameters.
Commitment to the Protection of Children’s Rights
0403
The company places the protection of children’s rights at the core of itscorporate social responsibilities and business operations. We pledgestrict compliance with all relevant laws and regulations concerning
children’s rights in our business activities. Through systematic servicedesign, we strive to create a safe, friendly, and respectful commercialenvironment for children. Speci?c initiatives include:
4. Management
After classifying and evaluating customer complaints, the company dealswith them by applying corresponding handling strategies. Analysis andjudgment are steadily strengthened to take targeted preventive and controlmeasures and prevent and eliminate adverse impacts on time. The companydynamically tracks unexpected negative information and post-handlingdevelopments, and continuously monitors relevant information. Customercomplaints are promptly summarised, sorted out and re?ected on upon theiroccurrence, dissemination and handling to safeguard the company’s steady
development. If we identify a negative media report or an announcementfrom regulators, we establish a special team to communicate with relevantstakeholders as soon as possible to minimise any negative impact andprevent any reputational damage to our group’s brand.The “Detailed Rules for Handling Emergency Events for the Customer ServiceCentre” has been formulated, which de?nes the severity of complaints, theresponse measures required for customer services, and feedback on thehandling of issues. The customer service centre holds a specific drill oncomplaint handling every month to ensure that front-line customer servicerepresentatives can understand and implement the requirements.
their effective handling. We established a customer feedback and self-reviewmechanism, clari?ed that customer feedback should be sent to the relevantfront-line service teams, and enhanced oversight over the improvementprocess. Based on our customer service-related key performance indicator(KPI) framework, we systematically monitor key risk indicators (KRIs) andmaintain regular reporting to senior management on service safety andquality risk monitoring. This structured approach provides data-drivensupport for strategic decision-making.
5859
Prosperity
Product Safety and Quality
RisksImpactsResponse plans
Product quality risks
Poor product quality mayresult in financial lossesdue to unsold products, ortrigger legal disputes andcompensation costs aftersales, ultimately damagingconsumer trust andcorporate reputation
? Actively work with suppliers to ensure product quality standards are met, so that our users can shop with confidence;? Strengthen communication to suppliers about the importance of investigating and resolving product quality issues. For details, please referto the chapter on “Robust, Green and Intelligent Supply Chain”? Establish and continually refine product quality control systems and procedures? For the proprietary brand “CDF Health”, third-party testing institutions are engaged to implement quality inspection mechanisms, including
production quality control audits and production process audits. Should quality defects be identified, relevant products are urgentlywithdrawn from all sales channels according to the severity of the issue. Customers who have purchased the products are notified via onlinecustomer service, SMS, and other means, and the products are recalled. Concurrently, suppliers are engaged to coordinate and completethe product recall and return process. Where necessary, the matter is reported to the relevant regulatory authorities;? Establish a crisis management mechanism for breaking public opinion incidentsManagement risks
of near-expiryproducts
May lead to inventorybacklogs, resulting infinancial losses andpotentially damagingcorporate reputation
? Depending on the product category and specific circumstances, we utilise appropriate disposal methods – including return shipping,
supplier returns or exchanges, discount promotions, buy-and-get promotions, or customs-supervised destruction – as outlined in thecompany’s Sales Department Management Regulations.? The company strives to reduce goods close to expiration by forecasting market demand, flexibly deploying goods, and improving
procurement efficiency, with the goal of enhancing resource use efficiency and operating effectiveness.Food & beverage
safety risks
Potential product qualityissues may lead to financiallosses, regulatory penalties,and damage to consumertrust, ultimately damagingcorporate reputation
? In terms of food and beverage safety, the company has made every effort to establish and improve its comprehensive management
systems, including those related to food management rules, supervision and monitoring, traceability cooperation, inspection, and testing,
to ensure the food safety of our pre-packaged goods. We adhere to standardised online and offline management standards with respect to
food safety and exercise whole-process control in this area.? In accordance with the Law on Product Quality, the requirements of the commodity quality standards issued by the SAMR and the National
Standardisation Administration, and other laws and regulations, the company has re-signed agreements with domestic liquor producers and
suppliers, and the new agreements include the “Liquor Quality Assurance Agreement”, which helps the company ensure the quality of its
products, protect the rights and interests of consumers.Special storagerequirements risks
Products requiring specialstorage conditions facerisks of product damage,customer complaints,financial losses, andregulatory penalties, whichcould ultimately damagecorporate reputation
? For chocolate that needs to be stored below 20 degrees, our stores strictly enforce the storage and transportation standards provided by
suppliers and maintain daily temperature and humidity measurement records;? We identify products that contain oil chemicals according to the suppliers’ shipping information in the early stage, and check these items
properly when making declarations.
Strategy
Governance
The company strictly enforces procurement management measuresand continuously monitors supplier selection and product qualityassurance. We issued the “Regulations on Safety Management,Quality-Risk Early Warnings, Inspection and Testing for ImportedCommodities (Trial)”, which standardises and institutionalises
Metrics and TargetsDuring the reporting period, the company did not experience anyproduct recovery (recall) events, negative events (e.g. regulatorypenalties and negative news reports) or countermeasures for thecompany’s products or services.
During the reporting period, CDFI completed its annual audit ofthe quality management system (ISO9001) to provide assuranceregarding the adequacy and appropriateness of its internal controlsand re?ned management.
Notice on CDFI passing the annual qualitymanagement system review
1. Risk identi?cation
To ensure product safety and quality, we have put in place a robustprocess to identify potential risks. We regularly review relevantlegal and regulatory requirements and industry standards to ensureour products meet the latest compliance expectations. We workclosely with our suppliers to collect and analyse potential risk pointsacross the supply chain, with a focus on raw material quality,manufacturing processes, transportation conditions, and otherkey areas. We also conduct internal audits and implement robustinternal controls, which enable us to identify and manage key riskfactors that may impact product safety and quality. Additionally,we leverage customer feedback and market research results tounderstand consumer expectations regarding product safety andquality, ensuring our offerings align with market needs.
Impact, Risk, and Opportunity Management
2. Risk assessment and prioritisation
For identified potential risks and opportunities, we appropriatelyassess them to determine their priorities. We evaluate eachidenti?ed risk based on its likelihood of occurrence and magnitude,and assign it a specific score to determine its priorities by usinga risk matrix. For high-priority risk factors, we have developeddetailed mitigation strategies and contingency plans. We alsoregularly update our risk assessments to ensure all identi?ed risksand opportunities are managed in a timely and effective manner.
3. Risk monitoring
To maintain product safety and quality, we have put in place arobust monitoring process. We conduct regular internal qualityinspections to uphold product-related standards. We have set upa dedicated customer service hotline and online feedback platformto encourage consumers to report any safety or quality concerns,enabling us to promptly identify and address potential issues.
4. Risk management
Building on the risk identification, assessment, and monitoringprocesses, we have also put in place effective controls to addressrisks and opportunities related to product safety and quality. Weappoint control owners that oversee and coordinate productsafety and quality reviews and ensure these controls are operatingeffectively. We have continued to enhance our product safetyand quality management capabilities by upgrading our controlprocesses for the latest technologies and methodologies. We haveput in place emergency response plans and procedures to ensurerapid action in crisis situations. Furthermore, we maintain a long-standing partnership and work with our suppliers to jointly enhancesafety and quality standards in the supply chain.
quality and safety management for our imported commodities.We have strengthened safety and quality control for importedcommodities to ensure that the company meets its responsibilitiesand protects consumers’ rights and interests.
Responsible Marketing
We attach great importance to the management of advertisementsand new media marketing. In accordance with the Advertising Lawand other laws and regulations, the company has formulated relevantdocuments such as the “Regulations on the Management of PressRelease” and the “Marketing Activities Management Measures” tostrengthen management and control over marketing activities. Thecompany’s af?liated companies also formulate detailed managementregulations following their respective business conditions, includingthe “Regulations on the Management of Promotional Videos andBrochures”, “Regulations on Advertising and Publicity Management”,“Regulations on the Management of Marketing Activities” and“Regulations on the Management of External Publicity Information”,etc. to regulate all aspects of marketing management.As the exclusive provider of dietary supplements under ourproprietary brand “CDF Health”, we rigorously comply with China’sAdvertising Law, Food Safety Law, and the Interim Measures for theReview and Administration of Advertisements for Drugs, MedicalDevices, Health Foods, and Formula Foods for Special MedicalPurposes. All promotional materials undergo rigorous internal vettingprior to release to ensure full regulatory compliance. For healthsupplements, we strictly adhere to the registered certi?cation, ?lingdocumentation, and advertising censorship.We operate in full alignment with the Blue Hat certi?cation standardsand advertising review/filing requirements when conductingpromotional activities on social media platforms. For instance,when disseminating content on platforms like Xiaohongshu andsimilar channels, the company avoids absolute or exaggeratedclaims, clearly labels suitable and unsuitable populations, andensures accurate product information delivery to prevent consumer
misinterpretation, maintaining professional integrity and regulatorycompliance throughout promotional activities.To explore sustainable development strategies for its brands, thecompany has accelerated its transition towards digital managementwith the aim of becoming a global leader in this area. The companycomprehensively adapted to the characteristics of duty-free industryand developed a membership system called OneID, thereforeformed CTG DUTY-FREE’s own member tracking system. Basedon the results, the company has been able to empower its brand;enhance collaboration, consumer services and marketing activities;and optimise tourism retail operations. Through this analysis work,the company was able to effectively mine the commercial value ofits membership data and devise plans for how to use this data moreeffectively in the future.By the end of 2025, the volume of registered user data accessexceeded 140 million, forming an industry-leading scaled data pool.The company has constructed a digital platform for customerservices, and accelerates the promotion of the all-channel storemembership platform to enhance the convenience of memberconsumption. By leveraging this unified membership platform, thecompany continues to expand channels, enrich member benefits,and deepen cross-industry cooperation with third-party platforms.We continue to deepen multi-channel integration and cross-industry collaboration ecosystems to achieve complementaryinternal resource advantages and data sharing. We also integratethe private domain platforms for members, and build and manage auni?ed private domain traf?c pool, thereby achieving deep customerconnections and precise marketing.
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中免國際有限公司:
我中心于2024年12月03日至2024年12月06日对贵方进行了年度监督审核，证实贵方的质量管理体系持续有效运行，经评定决定，准予继续使用证书号为00122Q310360R0M/4403认证证书和相应编号的IQNet证书。证书所载的名称、地址、认证范围、发证日期和有效日期等均无变化。 下次例行审核宜在2025年10月27日之前实施，最晚应在2025年12月27日之前完成，否则可能导致证书暂停。
感谢贵方对我中心工作的一贯支持与配合，我们将一如既往的为您提供增值的认证服务。特此通知。
2024年12月31日
6061
Prosperity
RisksImpactMitigation measuresQuality issues withprocured goods
? The quality issues of procured goods mayimpact marketability, consequently affecting ourrevenue and even reputation
? We have enhanced procurement process controls? The company regularly communicates with suppliers on howto further improve product quality. The company requiressuppliers to establish a mechanism for information exchange,so that if the product recall process is triggered due toproduct quality problems, the company can take timelyactions to protect the rights and interests of customers.
Products maysuffer damage intransportation orstorage
? Products damaged during transportation or
storage due to extreme weather conditions (e.g.,typhoons, heavy rains, waterlogging) or otherincidents (e.g., fires, theft) directly increasesnon-operating expenses. This may indirectlyaffect property insurance premium costs andterms in subsequent years, and could alsoimpact revenue through potential disruptions toproduct quality and delivery timelines.
? Carefully select logistics and warehousing service providers,conduct on-site assessments of their storage facility safety,and prioritise locations with elevated topography to avoid low-lying areas? Put in place the “Special Scenario Emergency Response Plan”to establish standardised procedures for risk managementrelated to typhoon-induced delivery disruptions or warehousestock shortages. This includes early warning monitoringsystems, rapid response protocols, resource coordinationmechanisms and standardised customer communicationprocesses. We develop emergency response plans fornatural disasters, accidents, social safety incidents, etc.,detailing protocols for incident reporting, on-site handling, andpersonnel relocation.? The company also conducts quarterly training and drills on
fire safety, typhoon preparedness, cargo security, transportsafety, and specialised equipment operations to validate planeffectiveness and ensure that all staff possess the requisitesafety awareness and emergency response capabilities.? Purchase adequate property insurance coverage and closely
monitor market availability of similar insurance products
Operational premises-
related risks
? Inadequate temperature/humidity control in
storage areas may compromise product quality,leading to increased non-operating expenses,potential revenue loss, and reputational damage? Weak management practices could result
in inventory loss, escalating non-operatingexpenses? The presence of fire safety hazards in storage
facilities elevates the risk of fire, leading toincreased non-operating expenses
? Define precise storage requirements for different product
categories; strengthen staff training programmes to improveinventory management capabilities; exert oversight and regularaudits to ensure compliance? Put in place robust policies to secure operational premises,
goods, transport vehicles, business partners, and personnel;continuously upgrade storage infrastructure? Perform monthly inspections of fire safety equipment to
identify and address potential risks or hazards promptly? Rigorously implement access controls for warehouses, withfull surveillance coverage achieved throughout the warehousepremises. All warehouse access requires mandatory biometricauthentication via facial recognition or fingerprint scanning.Additionally, intelligent locking systems have been deployedfor cargo transportation vehicles.
Inventory risks
? Inconsistent supplier deliveries may lead
to product shortages, impacting revenueperformance;? Excessive advance procurement could result
in overstocking, increasing warehousing andlogistics costs for inventory management andinternal transfers;? Failure to promptly identify inventory overstock
may escalate near-expiry product accumulation,further affecting revenue performance.
? We optimise inventory management plans and strengthen risk
internal control management by monitoring market fluctuations
and sales data to determine rational stock levels? We use inventory monitoring and inventory alerts to promptly
address overstocking or stockouts? Prioritise optimised inventory allocation planning to prevent
stockpiling or supply delays
Compliance risks
in procurementand inventorymanagement
? Non-compliance with our established
procurement policies during the purchasingprocess may elevate procurement costs,negatively affecting operational efficiency andprofitability? Deviations from our established inventory
management protocols could compromiseproduct quality, potentially damaging ourreputation and long-term revenue streams? Violations of relevant laws and regulations
in procurement and inventory managementoperations may heighten legal risks, furtherthreatening our reputation
? Conduct regular training and awareness programmes for
procurement management personnel and cross-departmental
staff involved in procurement activities, ensuring alignment
with standardised procurement policies and establish a
centralised procurement platform? Provide warehouse staff with enhanced inventory management
training to improve their skills in inventory control, ensuring
operational standardisation and accuracy? Put in place a robust internal audit policy to monitor and
evaluate import/export-related business activities for
compliance and procedural integrity
StrategyAs a travel retailer, supply chain security is key in delivering high-quality products and services to consumers. To this end, we haveestablished and enhanced our supply chain management policiesand processes to guard the “entrance gate”. We maintain robust
oversight of suppliers throughout their performance period, andactively works with suppliers to ensure product quality standardsare met, so that our users can shop with con?dence.
Supply Chain Security
Robust, Green and Intelligent Supply Chain
To continuously provide high-quality products and services toconsumers, we have put in place a sound and robust supply chainmanagement system. Leveraging our strengths as a travel retailer,
we actively collaborate with upstream and downstream partners tojointly build a green and smart supply chain.
Governance
To improve procurement controls to standardise procurementpractices and ensure supply security, we have dedicatedresponsible departments, including the Supply Chain ManagementDepartment, General Manager’s Office, Procurement PlanningDepartment, and Contract Performance Department. Followingthe Bidding Law and the Implementation Regulations for the Lawof the Tender Law and relevant regulations for listed companies,we have put in place a robust system of supply chain securitypolicies, including a “Supplier Management Policy”, “ManagementPolicy for Contract Manufacturers of Branded Products (Trial)”,“Interim Measures for Logistics Supplier Management”, “TyphoonPrevention and Emergency Response Plan”, the “Warehouse FirePrevention and Emergency Response Plan”, the “WarehouseGoods Anti-Theft and Safety Management Regulations”, the
“Vehicle Safety Transportation Regulations and Training Protocols”,and the “Special Equipment Safe Operations ManagementSystem”. These policies establish requirements for how ourproducts are stored, shipped, and delivered.In 2025, we updated our “Procurement Management Policy (Trial)”,“Implementation Rules for Tender Procurement”, “ImplementationRules for Non-Tender Procurement”, “Centralised ProcurementManagement Policy” and other policies. We added more detailedprovisions on supplier selection methods, evaluation procedures,performance assessment criteria, and tender procurementpractices, while strictly enforcing procurement approval processes.
The company continues to strengthen the refined operations ofits online malls, self-media platforms, and fan communities. Bycollecting and analysing user pro?les and behaviours, it aggregatesspecific audiences and enhances personalised interactionexperiences through tailored product recommendations, mall searchengine optimisation, and marketing promotions. This approach aimsto increase user stickiness, satisfaction, and loyalty, thereby realisinga new retail model of personalised marketing services.In addition, to support the growth of online businesses, the companyhas launched the Nebula Project, which enables the company toinitiate a comprehensive system for detailed data empowerment.This system deeply advances the mining and application innovationof data value, including precisely understanding market demandsand optimising sales conversion paths, as well as systematicallyimproving the scene-based service capabilities of data products.The company continues to develop brand stories, expandcommunication channels, and innovate new communicationmethods. News, pictures, videos, activities, and other publicitychannels are used to showcase the new brand styles and narrow thedistance between brands and consumers using rich brand contentand diversi?ed forms of expression.In 2025, the company offered products from 1,674 brands withmore than 537,000 SKUs.
6263
Prosperity
Impact, Risk, and Opportunity Management
In according with the requirements of the SASAC, the companyimplements a supplier evaluation model that combines dynamicevaluation and annual quali?cation inspection, and under which the
Suppliers with which procurement transactions should besuspended for three years.
There are de?ciencies that should be focused on and subjectto recti?cation. Generally, procurement transactions shall besuspended during the recti?cation period. For an individualsupplier with which a procurement transaction cannot besuspended, the purchaser shall negotiate with the mainperson responsible, inform the supplier to improve its servicelevel and supply quality, and try to develop or cultivatealternative suppliers.
Suppliers with which there is regular business cooperation.
When a division issues a procurement invitation, GradeA suppliers within the division should be given priority toparticipate in the procurement project within its scopeof business under the same commercial terms. Grade Asuppliers shall be downgraded to Grade B if they have nothad procurement transactions with the division for one yearsince the date of the last completed contract.
Grade A (excellent suppliers)Grade C (suppliers subject to recti?cation)
Grade B (good suppliers)Grade D (suppliers should be phased out)
1 Identi?cation
The company‘s internal control team comprehensivelyreviews supply chain operations, collects and analyses dataacross all stages, and conducts regular risk identification andassessment processes. We have established risk informationchannels to maintain close communication with suppliers,logistics partners, and industry associations, ensuring timelyupdates on industry risks and developments, to continuouslyoptimise supply chain processes, and to achieve stable, safe,and sustainable development of the supply chain.2 Assessment and prioritisationWe conduct thorough risk assessments of existing suppliers,covering their production capacity, quality control, and deliverycapabilities. Historical data and experience are used toquantify the probability of identified risks escalating, potentiallosses, and safety hazards, with a view to clarifying theseverity and urgency of risks. Based on these assessments,we formulate supplier classification strategies and engage inheightened monitoring and management for high-risk suppliers.Simultaneously, we actively seek new high-quality suppliers toreduce reliance on single sources and diversify supply chainrisks.
Results were significant: Through these meticulous, time-sensitive controls, the company effectively reduced cargodelays and customer complaints during extreme weatherchallenges, including the 2025 typhoon season. Annualcustomer complaint rates attributable to supply chain issueswere contained at a remarkably low level of 0.000845%.
Speci?c measures and mechanisms include:
1. Establishing Tiered Early Warning and Proactive Response
Mechanisms: When meteorological authorities issue anOrange (or higher) alert, the system automatically triggersemergency protocols. Logistics teams must assess andapply to suspend online “Port Pickup” services within onehour. Communication with pickup points and transportproviders must be completed within two hours. Non-localorders will be prioritised for delivery three days beforedeparture, based on storage capacity.
3. Developing Diversi?ed Stock-Shortage Solutions: For out-
of-stock or damaged goods identi?ed during dispatch, theplan provides multiple resolutions including emergencystore transfers, split-order shipments, complimentary giftcompensation (Sanya Warehouse only), and customerservice-led refund/re-mailing agreements. Executionplans must be con?rmed within 10 minutes of identifyingshortages, prioritising the customer experience.
2. Detailing Round-the-Clock Emergency Procedures: The
plan defines distinct daytime and nighttime responseprotocols for sudden incidents like vehicle breakdowns.For example, during operational hours, alternative vehicleor towing solutions must be formulated and reportedwithin 30 minutes of an incident. Information must berelayed to customer services within 25 minutes, enablingthem to notify consumers of delays within 30 minutes,ensuring closed-loop management.
? Strengthen procurement process managementIn the sourcing process of supplier, the company established aunified supplier database, strengthened supervision and reviewwork, and enhanced the management of supplier qualificationreviews, selection, performance evaluations, incentives, penalties,and supervision. Suppliers are required to demonstrate a soundcommercial reputation, tax compliance records, sales performance,and product quality. They must possess the necessary professionalequipment, technical capabilities, and ongoing delivery capacity toful?l contracts; and they must have quality control and assurancemeasures and plans, customer service support oriented to clientneeds, and no history of legal violations in business operations. Weconduct periodic performance evaluations and implement tieredmanagement of suppliers based on our evaluation of complianceand service quality.In the process of selecting and approving suppliers, we conductresearch and studies on the supplier market, steadily strengthensupplier development, and require that domestic suppliers becertified through a state-certified supervisory and managementinformation platform. The company reviews suppliers’ certi?cationinformation and business information, runs checks to determinewhether suppliers have any record of legal or regulatory violations,and strictly implements supplier audit and selection processes.
? Supplier admission
For public procurement projects, such as open bidding, opencompetitive negotiations, and open inquiries, the winning bidder orthe bid awardee can be directly included in the company’s supplier
database. In addition to public procurement, interested suppliersshould apply to relevant divisions for admission according to theprocurement relationship and the management procedures.Our proprietary brand, CDF Health, primarily relies on an ODM/OEM production model. In line with our supplier onboardingpolicies, we implement a rigorous supplier due-diligence processduring the qualification phase. This includes verification ofsupplier credentials, such as ISO 9001 and HACCP certi?cations,assessment of their production capacity and after-sales servicecapabilities, and site visits to evaluate potential suppliers beforeadding them to our supplier database. For suppliers who passinitial screening and preliminary evaluation, we engage a thirdparty to conduct factory audits prior to formally partnering withthem. Furthermore, follow-up audits are conducted throughoutthe partnership, where necessary. For product development andproduction, when finalising the product formula, suppliers arerequired to produce samples for testing by an accredited third-party laboratory. Third-party testing reports are updated annually.During mass production, factory analysis certificates are verifiedfor each batch. Additionally, all incoming products undergo visualinspection, and labels, traceability codes (if applicable), and productbarcodes are cross-checked for accuracy and clarity before beingaccepted into inventory.
? Tiered supplier management
According to the company’s “Supplier Management Regulations(Trial)”, the company, based on the results of dynamic evaluation,manages suppliers under a tiered system that includes:
3 Monitoring
We continuously collect supply chain logs, including informationregarding critical incident reports, emergencies, unresolved issues,and future plans. Key risk indicators are monitored in real-timethrough supply chain management systems, which are alignedwith internal control early-warning mechanisms; regular reportson supply chain risk monitoring are provided to management tosupport decision-making.
Through effective risk and internal control management, thecompany maintains its strong market reputation, customersatisfaction, and industry-leading position. By continuously
optimising supply chain processes, we enhance efficiency andeffectiveness, ensuring the development of stable, secure, andsustainable supply chains.
4 Management
Operational procedures are streamlined and standardised to avoidsupply chain security risks.
Strengthening Supply Chain Risk Management to Counteract Extreme Weather
To mitigate the impact of frequent extreme weather eventssuch as typhoons and heavy rainfall in Hainan on logisticsoperations, the company systematically enhanced supplychain risk management centred on its “Special Scenario
Emergency Response Plan”. This initiative aims to achieve“proactive risk anticipation and rapid, efficient response,”maximising distribution stability from warehouses to all pickuppoints.
dynamic evaluation results serve as an important basis for suppliergrading and selection.
6465
Prosperity
Metrics and TargetsThe company’s key supply management metrics are as follows:
MetricsTier 2 metricsUnit2025
Total number of brand partner/Number760
Number of brand partners bygeographical regio
Chinese MainlandNumber281Chinese Hong Kong SAR,Macau SAR and Taiwan region
Number207OverseasNumber272
Total number of non-brand suppliers/Number1,642Number of non-brand suppliers by
geographical region
Chinese MainlandNumber1,512Chinese Hong Kong SAR,Macau SAR and Taiwan region
Number95OverseasNumber35Classi?cation of non-brand suppliers
Total number of Level Isuppliers
Number170The company’s key supply chain security metrics are as follows:
MetricUnit2025Target
Major risk incidents occurring in supply chainCases00
Suppliers involved in major risk incidents
along the supply chai
Number of suppliers00Individuals involved in major risk incidents
along the supply chain.
Person00
We are committed to digitalising and visualising the supply chainsystem and improving its efficiency and resilience by improvinginformation transparency. Through a visualised supply chainsystem, we can monitor and track the logistics, inventory, deliveriesand other key indicators along the entire supply chain in real time.Using visualised data, the management and relevant teams canclearly understand the status and trend of the supply chain. Adigitalised supply chain system can be used to more accuratelypredict demand, optimise inventory management, and achieverapid responses and flexible adjustments of the supply chain,reducing costs and risks.In 2025, the company continued to optimise leased pick-up areas,personnel structures, and vehicle distribution routes at ports andairports in Hainan. This reduced pick-up and distribution costs. Thecompany also successively took over off-island pick-up operations
Intelligent Supply Chain Management
from business partners, fully demonstrating the positive effectsof internal optimisation and restructuring within the pick-up pointnetwork.The company is clearly aware of the key role played by suppliersin the supply chain. Data exchange and supply chain integrationbetween suppliers, manufacturers and distributors is achievedthrough a visualised platform and digitalised supply chain, helpingprovide standardised and digitalised information of merchandise.As a result, operational ef?ciency is improved for enterprises andsupply chain partners, and they are able to engage in harmonious,win-win cooperation.The company considers the geographical location and climateof key suppliers in its supply chain management. Through thevisualised intelligent supply chain platform, logistics personnel can
AGV robots storageClothing hanging chains
Four-way shuttles, and AGV robots storage
546,000
square metres
In 2025, the company continued to optimise the layout of itswarehousing centres, the warehousing centres covered a total area ofidentify optimal shipping routes and prioritise deliveries to reducecarbon emissions. Additionally, we conduct regular training fordrivers and dispatchers to enhance their understanding and skillsin respect of efficient transportation and ensure that resourceutilisation is maximised for each trip.In warehouse management, the company has fully applied arti?cialintelligence (AI) and remote-control technologies to improve overallwarehousing and logistics efficiency. A warehouse managementsystem is installed and adopted in each centre to standardisewarehouse operations in a more scientific and reasonable way,to improve the efficiency of warehouse management. We havedeployed the Internet of Things (IoT) and management controlsystems, such as automated guided vehicle (AGV) robotsand autonomous case-handling robots (ACR), and automaticequipment, such as clothing hanging chains and four-way shuttles,for integrated storage, handling and warehousing in logisticscentres in Shanghai, Shenzhen and Hainan. These systemsand equipment enable intelligent handling, picking and sortingand optimise processes for inbound warehousing, inventorymanagement, replenishment sorting and shipping. Meanwhile,the company introduced and implemented a high-density rackingsystem using high-level pallet four-way shuttles. Utilising verticalspace significantly increased storage capacity per unit area. Thesystem’s ef?cient automated storage and retrieval capabilities alsoreduced equipment idling, labour costs, and energy consumption,thereby improving the overall utilisation efficiency of logisticsresources.
The company also uses the box-type robot, it can pinpoint andtransport goods with specific SKUs, enabling higher sortingprecision. The of?cial launch of the box-type robot has signi?cantlyimproved the overall operating capacity of the Qianhai e-commercewarehouse and doubled its order picking capacity, resulting in anerror rate of less than 1/10,000. Moreover, the box-type robothas also helped the warehouse surpass the previous height limitsimposed by manual order picking. As a result, the warehouse hasbeen able to expand the number of shelf layers from 4 to 7, whichhas doubled its cargo box storage capacity from 4,500 to 9,000.In addition, the box-type robot operates in a paperless manner byskipping order printing. It substantially enhanced picking ef?ciencyand accuracy.
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Establish green supply chain
The company gives priority to partners who focus on environmentalprotection and sustainable development to ensure that all playersinvolved in the supply chain are committed to emissions reduction,energy conservation and intelligent optimisation.
Usage rate of energy-saving lighting in company-owned warehouses
100%
Green Warehousing
The company is actively responding to national policies inthe comprehensive implementation and promotion of greenwarehousing. We aim to reduce transportation costs and improvewarehousing efficiency in order to conserve energy and reduce
emissions. We operationalise the “circular economy” concept inwarehousing operations. Our objective is: “No new purchase ofpallets, no new purchase of single-use storage containers, andstrong promotion of reusable operational tools during operations.”
greenhouse gas emissions. Furthermore, the Haikou InternationalDuty-Free Shopping Complex aligned with the call to develop alow-altitude economy by innovatively adopting drone delivery forduty-free goods. Departing from the complex, drones can reachthe Haikou Railway South Port Terminal, located 1 kilometre away,in only 1 minute and 24 seconds, reducing transportation costsby nearly 30% and cutting delivery times from 20 minutes to 3minutes.We emphasise building employee capabilities in energyconservation. Logistics centres organise specialised trainingon optimising logistics routes, warehousing processes, andthe energy-efficient operation of logistics equipment. Throughpractical case analysis and on-site demonstrations, we strengthenemployees’ practical energy-saving skills, turning conservationconcepts into concrete actions. Additionally, we conduct regulartraining for drivers and dispatchers to enhance their understandingand skills in respect of efficient transportation, urge our fleetoperators to cultivate good driving habits, strictly carry out dailymaintenance and fuel management, and smartly select drivingroutes, and ensure that resource utilisation is maximised for eachtrip.
Green TransportationThe company focuses on decarbonisation potential within thelogistics process. Through technological upgrades, managementoptimisation, and model innovation, we are building an ef?cient andlow-carbon green logistics system.We promote the use of energy-saving lighting across all logisticscentres. Comprehensive energy-saving retrofits of lightingequipment were completed at the Sanya logistics base and theChengmai Comprehensive Bonded Zone warehouse, achievinga 100% usage rate of energy-saving lighting in company-ownedwarehouses.We promote the use of new energy transport vehicles in thetransportation segment and strive to optimise the loading ef?ciencyof logistics vehicles to minimise resource waste. To this end,the company has deployed an advanced logistics transportationmanagement system that intelligently analyses optimal loadingplans based on real-time order data. Furthermore, we haveadjusted our policy to allow mixed-load transportation of duty-freegoods and non-dutiable items, eliminating mandatory separateshipments and ensuring each vehicle achieves maximum loadingef?ciency, reduce empty runs and partial loads, thereby reducing
Supplier ESG Management
The company rigorously adheres to admission and evaluationmechanisms. Beyond traditional metrics like quality, cost, anddelivery timelines, sustainability elements including environmentalprotection and social responsibility are integrated into the coreassessment framework. Specialised agreements are executed tode?ne mutual responsibilities, and regular performance reviews areconducted to collaborate with suppliers on improvements.The company signs Sustainable Development Agreements withsuppliers to clarify responsibilities in respect of environmentalprotection and social accountability. In terms of oversight, weconduct regular reviews to monitor suppliers’ environmentalperformance, with a focus on their implementation of environmentalpolicies and measures. The company conducts on-site visitsto supplier factories to verify the environmental sustainability ofpackaging materials throughout production and transportation.Suppliers demonstrating strong performance receive highercomposite scores. Furthermore, to prevent excessive packagingprocurement and reduce warehouse space utilisation, we placesignificant emphasis on evaluating our suppliers’ capability forfrequent, small-volume deliveries.
To achieve this goal, we:
The company proactively builds and participates in green supplychain ecosystems. During supplier selection, we encourageincreased adoption of eco-friendly products and services, mandatethe use of sustainable packaging materials (e.g., recyclablematerials, glue-free cartons), and actively partner with stakeholderson innovative practices – such as promoting reusable transitpackaging – to collectively reduce our environmental footprint.We defined environmental requirements in procurement policiesand guidelines. For example, we included goals for reducingpackaging waste to save resources and promote sustainabledevelopment. In 2025, we conducted in-depth communicationwith and audits of suppliers to ensure they meet the latestenvironmental standards and requirements. For example,we give priority to suppliers with ISO 14001 certification forenvironmental management systems. In terms of supervision, wehave strengthened our mechanism for evaluating and monitoringsuppliers’ environmental performance. For procurement projectsexceeding CNY5 million, during the prequalification stage, bidsare evaluated based on whether suppliers have obtained theISO 14001 certification. Shortlisted suppliers must demonstraterobust environmental protection capabilities and submit Safety andCivilised Construction Plans so we can ensure they will adhere tolocal environmental requirements during operations.
Optimise the digitalisation of operational processesContinuously improve the supply chain informationsystem, promoting end-to-end online operations fororders, handovers, and warehousing.Implement paperless warehouse management, usingfingerprint recognition systems for personnel accessregistration instead of traditional paper records.
Promote the comprehensive use of reusable load carriersCustomise supplier cartons in warehouses for reuseas storage containers, fitting rack dimensions. Thissecondary use saved approximately 7,000 new cartons in2025.Prioritise using pallets from incoming supplier goods toavoid purchasing new wooden pallets, reducing timberconsumption. Fully adopt long-lasting, reusable plasticpallets in bonded warehouses in Hainan for storage andlogistics, replacing traditional single-use wooden pallets.Use recycled cartons and reusable, biodegradable,eco-friendly plastic boxes as containers for warehousestorage.Scienti?c and reasonable warehouse layoutConsolidate scattered warehouses into integratedwarehousing and distribution centres.Optimise the loading capacity and utilisation of transportvehicles to avoid the unnecessary waste of transportcapacity, enhancing logistics chain ef?ciency.
Use LED lightingComprehensively deploy electric forklifts
Explore other clean energy equipment
Use energy-saving and environmentally-friendly equipment
and facilities
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We consistently fulfil our corporate mission through concreteactions. We provide premium products and services, creatingbetter lives for our customers while striving to become an advocatefor quality living and happiness.In 2025, responding to new downtown duty-free policies, the
Creating Better Lives
During Mother’s Day 2025, cdf Dalian Downtown Duty-Free Store curated exclusive shopping activities featuringglobally selected premium products and sincere promotionsto create heart-warming shopping experiences. As China’sfirst downtown duty-free store opening after the new nationalpolicy implementation, Dalian Downtown Duty-Free Store offersdiverse merchandise spanning cosmetics, skincare, perfumes,watches, jewellery, sunglasses, wine, and food. Capitalising onpolicy advantages and channel strengths, the store introducedinternational ?rst-tier brands alongside distinctive domestic chicproducts, achieving a unique fusion where global selectionsmeet local culture.
Dalian Downtown Duty-Free Store launched a Mother’s Day campaign, deliveringheart-warming shopping experiences
On 20 May 2025, the company’s Qingdao Downtown Duty-Free Store completed its transformation and upgrade followingthe release of the new downtown duty-free policy. Thestore introduced over 100 internationally renowned brands,establishing a diversified duty-free product portfolio focusedon beauty & fragrance, premium wines & spirits, and fashionaccessories. As the company’s ?rst downtown duty-free projectin Shandong Province, the store’s opening further strengthensQingdao’s duty-free commercial landscape, caters to multi-tiered consumer demand, and drives the retention of regionalpremium consumption.
Responding to new policy, cdf Qingdao Downtown Duty-Free Store completes atransformation and upgrade
Engaging in Good Initiatives to Act as aResponsible Corporate
Store Renovation and Upgrading
company proactively advanced the development of downtownduty-free stores. All 12 city stores commenced full operations withstable performance, including: the renovation and upgrading of 6existing stores in Sanya, Dalian, Qingdao, Xiamen, Shanghai, andBeijing; and the successful launch of 6 newly awarded stores inShenzhen, Guangzhou, Chengdu, Xi’an, Tianjin, and Fuzhou.
On 26 May 2025, the company’s Xiamen Downtown Duty-FreeStore reopened after a transformation and upgrade in line withnew policy. The store now features internationally renownedbrands across fashion & beauty, luxury accessories, and finewines & spirits. As the ?rst downtown duty-free store in FujianProvince, Xiamen Downtown Duty-Free Store complementsexisting port duty-free operations, injecting fresh momentuminto the development of the region’s duty-free economy.
Xiamen Downtown Duty-Free Store reopens, facilitating the development of the region’sduty-free economy
Successful Opening of New Bid-Winning Stores
Xiemen Downtown Duty-Free Store
Beijing Downtown Duty-Free Store
Shanghai Downtown Duty-Free Store
On 26 August 2025, marking the 45th anniversary ofShenzhen’s special economic zone, cdf, Shenzhen State-ownedDuty-free Commodities (Group) Co., Ltd. and Shum Yip Groupjointly launched the Shenzhen Downtown Duty-Free Store,advancing the city’s development as an international consumerhub and injecting new momentum into the Guangdong-HongKong-Macao Greater Bay Area. Located on the first floor ofShum Yip Upperhills in Futian District’s core commercial area,the 3,000-square-metre project features both duty-free andtaxable product zones.
CDFG unveils the ?rst downtown duty-free store in Shenzhen, advancing its development asan international consumer hub
Shenzhen Downtown Duty-Free Store
Sanya Downtown Duty-Free Store
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On 26 August 2025, the ?rst downtown duty-free store openedin Guangzhou, marking a significant step in Guangzhou’sprogress as an international consumer hub. Developed byCDFG, Guangzhou Grandbuy Co. Ltd., Guangzhou LingnanGroup Holdings Company Limited, and Baiyun Airport, the storeis strategically positioned in a central commercial district toattract both local consumers and global visitors.The design integrates Guangzhou’s “City of Flowers” identity,with a China-chic-themed taxable area showcasing Guangcaiporcelain, ivory carving techniques and modern design tocreate culturally rich, takeaway souvenirs. This “scene-basedconsumption + cultural experience” model fosters a newtourism retail ecosystem, offering consumers a unique blend ofurban identity, regional culture, and duty-free shopping whilepromoting China’s intangible cultural heritage.
Guangzhou welcomes its first downtown duty-free store to energise the city as aninternational consumer hub
Domestic and China-chic products
cdf wins bids for Chengdu and Tianjin Downtown Duty-Free Stores, advancing high-qualitygrowth in the duty-free industry and regional economic prosperity
Downtown duty-free stores represent a significant opportunityto shape urban commercial landscapes, serve as platforms forpromoting Chinese culture, and act as incubators for China-chicbrands. Leveraging our unique strengths, the company is buildingan integrated triple-element business model combining “duty-free
+ duty-paid”, “of?ine + online”, and “imported + domestic” goods.This creates immersive new consumer experiences, meetingcustomers’ growing aspirations for a better life, while advancing thehigh-quality growth of the regional duty-free sector and fosteringlocal economic prosperity.
Chengdu Downtown Duty-Free StoreTianjin Downtown Duty-Free Store
On 9 and 13 January 2025, cdf successfully secured bids forthe Chengdu and Tianjin Downtown Duty-Free Store projects.As the economic, technological innovation, and internationalexchange hub of western China, the Chengdu Downtown Duty-Free Store is strategically positioned at the Yanlord Landmarkin the prime CBD location, offering significant locationaladvantages. Tianjin, a key international consumption hub
city and vital to the coordinated development of the Beijing-Tianjin-Hebei region, will see its Downtown Duty-Free Storelocated at the Yanlord ISETAN department store within the OldTown Commercial District. This store, themed as a “ShoppingMuseum”, aims to become a new urban consumption landmarkwith extensive regional reach.
April 2025 saw the 5th China International Consumer ProductsExpo held in Hainan, creating opportunities for global enterprisesto access the Chinese market and for Chinese companies toexpand internationally. 2025 marks the year of Hainan FreeTrade Port’s customs closure, the fifth consecutive CIIE, andthe ?fth consecutive year of cdf’s participation.Our main pavilion adopted the theme “Harmony in Structure”(方圆之间), featuring an open, transparent layout with tailoredatmospheric and scenography designs for each productcategory. This created a unique visitor experience where eachstep revealed new products and vistas. Leveraging our brandmanagement expertise, we featured multiple renowned brandsacross diverse categories, comprehensively presenting premiumdomestic and international goods while demonstrating industryleadership.Additionally, we hosted a catwalk show in the atrium ofHaikou International Duty-Free Shopping Complex. Combiningan exhibition with a runway presentation, this dynamicallyshowcased apparel, jewellery, cosmetics and trending items.This innovative retail concept unlocks consumer spendingpotential, supports Hainan Free Trade Port’s development as aglobal consumption hub, and generates fresh opportunities forworldwide retail innovation and travel retail development.
cdf showcases at the 5th CIIE, sharing new opportunities with global partners
Our “Harmony in Structure” pavilion
High-end fashion show at Haikou International Duty-Free ShoppingComplex
Promoting industry development
As a leader in the travel retail sector, CDFG actively participates inmajor industry events such as the China International ConsumerProducts Expo in Hainan and the China International Import Expo(CIIE), and hosts events like the Global Brands Meeting. Wecontinuously drive innovation within the duty-free industry.CDFG Hosts 2025 CDFG Global Brands meeting, fostering dialogue across the global travelretail industryIn March 2025, the 2025 CDFG Global Brands Meeting,themed “Redefine Frontiers, Synergise Futures”, was held inSanya, Hainan. The meeting focused on core topics includingpolicy direction, industry trends, and cutting-edge technologies,providing global brand partners with in-depth insights intothe Chinese travel retail market. By building stronger bridgesfor communication and collaboration, CDFG provides globalbrand partners with more precise market positioning, ef?cientoperational support, and diversified marketing strategies,supporting their sustainable growth in the Chinese market.Mr. Fan Yunjun, Chairman of CDFG, delivered remarks at theconference. He stated that the company will adhere to thefundamental principles of “Integrity with Innovation, EfficiencyEnhancement, and Integrated Development” to drive high-quality growth. He expressed CDFG’s commitment to providingpartner brands with deeper consumer insights and marketdevelopment opportunities. He also encouraged more brands to
introduce ?agship stores and exclusive debut products throughCDFG, enriching product offerings and enhancing the serviceexperience for global consumers.
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Volunteer ActivitiesThe company organises volunteer activities to demonstrate itscorporate social responsibility and commitment, striving to builda distinctive volunteering brand. Haikou Meilan Airport Duty-FreeShop, Hainan DF, Sanya Downtown Store, and Hangzhou cdf havesuccessively established dedicated volunteering teams.
In March 2025, Hainan DF’sMeilan Store formally launchedthe “Red Wingsail” Party MemberVolunteer Service Team andhosted a flag presentationceremony to mark its officialestablishment. This initiativeaimed to inspire Party membervolunteers to deliver the warmthand care of the Party with passionand professional expertise.In May, the “Red Wingsail” PartyMember Volunteer Service Teamselected Party members andactive members to participatein the all-ages-friendly hikingevent “Walking with Twilight,Resonating with Happiness”,organised by the PublicityDepartment of Meilan District inHaikou. Volunteers assisted withparticipant registration and supplydistribution. Leveraging theirprofessional expertise, they alsoconducted on-site presentationsexplaining the offshore duty-freeshopping policies and sharedknowledge on preventing duty-free goods reselling.In October, the “Red Wingsail” Party Member VolunteerService Team at Meilan Store collaborated closely with themarketing team to provide volunteer services at the 2025Haikou Meilan Fishing Village Dragon Boat Race Grand Finals,hosted by the Meilan District People’s Government of Haikou
Meilan Store launches the “Red Wingsail” Party Member Volunteer Service Team andconducts various volunteer activities
Flag presentation ceremony for the “Red Wingsail” Party Member Volunteer Service Team
Volunteer service photography session forthe hiking event
Information session on offshore duty-freepolicies and preventing the resale of duty-free goods
City. They delivered compassionate support, including check-in assistance, crowd management, organising competitionmaterials, and guiding guests, exemplifying the brand’s warmthand social responsibilities.
Hainan DF and its af?liated stores conduct various volunteer service activities
On 12 March 2025, Hainan DF organised 17 Party membersfrom its employees to participate in a government-led volunteertree-planting activity at Hainan University’s Guanlanhu Campusin Haikou’s Longhua District. This effort aimed to enhanceecological foundations and enrich the environmental legacies ofthe development of the Hainan Free Trade Port.
On 21 March 2025, Hainan DF organised a public welfaredonation event for “Earth Hour”. Employees activelyparticipated, collecting 571 donated items including clothing,daily necessities, educational supplies, children’s books, andtoys. These materials were then handed over to the Hainan-based charitable organisation “Tong Aihui” for centralisedcollection and distribution to those in need.In July 2025, the general party branch and Youth LeagueCommittee of Riyue Store collaborated with the Youth LeagueCommittee of Longhua District, Haikou City, to conduct avolunteer initiative focused on improving the living environmentin Huaken Community, Longhua District. This activity aimedto mitigate the risk of mosquito-borne diseases, such aschikungunya and dengue fever, thereby enhancing public healthsafety.
In 2025, the Sanya Downtown Store conducted 20 volunteerservice activities covering ecological and environmentalprotection, traffic management, and community services,accumulating nearly 800 volunteer service hours.First, we further enhanced our “Clean the Blue Ocean, Guardthe Green Forest” initiative. Centred around key dates such asArbor Day, World Earth Day, and National Ecology Day, thecompany organised young volunteers to carry out activities suchas mangrove conservation, beach clean-ups, and wind disasterrelief in areas including Tielu Port. A total of 11 activities wereheld throughout the year, involving approximately 200 volunteerparticipations.Second, we explored the “Culture & Tourism Pioneer”(文旅先锋) service brand. Young volunteers were organisedto provide services at three major cultural and tourism eventssuch as the Women’s Elite Marathon and a Jay Chou concert,demonstrating the positive spirit of the cdf youth.Third, we promoted the regularisation of volunteer services.By strengthening cooperation with local public welfareorganisations, we carried out six regular activities such as caringfor children, championing the volunteer spirit of “dedication,friendship, mutual support, and progress”.
Sanya Downtown Store launches diverse volunteer activities
On 12 March 2025, the Sanya Downtown Store organised an ArborDay activity themed “Protecting Nature’s Verdure by ‘Cleaning theBlue Ocean, Guarding the Green Forest’, Conserving Wetland Puritythrough Mangrove Maintenance” at Tielu Port, Haitang Bay. The
“CDF Pioneer”(免税先锋) volunteer team performed maintenanceon trees planted by the company in previous years.
In 2025, Hainan DF’s volunteer service team had 322 registeredvolunteers and organised 23 volunteer initiatives. Collectively,
these efforts contributed a total of 6,252.3 hours of communityservice, including:
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Hangzhou cdf actively engages in diverse public welfare initiatives
Hangzhou cdf established the “Qihang Vanguard Team”through its joint party branch to promote civilised shoppingcampaigns during Q2 2025; it participated in the China CharityFederation’s “Paper for Love Initiative” to support treatmentfor underprivileged children with congenital heart disease and
In 2025, cdf deepened its collaboration with Alipay byupgrading its philanthropic initiative through the “tap and donate(你碰我捐)” model. For every transaction completed usingAlipay’s “Tap to Pay” function at CTG DUTY-FREE stores, wewill donate CNY1 to the SEE Foundation for Halophila beccariirestoration. This creates a sustainable loop linking “commercialconsumption – environmental donation – ecological restoration”.To transform online philanthropy into tangible action, the
The company takes action to build a green marine network, utilising diverse models to co-create an azure coastline
The event featured a mangrove ecosystem tour, with volunteers visiting the adjacent Dongzhai Port National Nature Reserve by boat.
company has extended the “tap and donate” initiative offline.On 22 April, marking the 56th World Earth Day, cdf partneredwith Alipay and the SEE Foundation to conduct a seagrassrestoration activity at the Haikou Dongzhai Port ScienceAcademy Qukou Research Base. Over 40 participants –including representatives from cdf, Alipay, the SEE Foundation,and cdf members – successfully transplanted 120 plantingunits of Halophila beccarii and Halophila ovalis, restoringapproximately 200 square metres of seagrass beds.
echinococcosis patients in Xizang Autonomous Region; andit continued its clothing donation programme, cumulativelycontributing 117.4 kg of used garments to the China CharityFederation by 2025.
Overseas Social ResponsibilityWe actively ful?l our overseas social responsibilities, contributing tothe sustainable development of local communities.
Over the past decade, cdf has consistently upheld its ‘people-oriented’ philosophy, recruiting and training hundreds of Chineseand Cambodian staff members, and contributing to a localised andhigh-performing talent pool for the company.The CDFG (Cambodia) team steadfastly implements a “localisation”strategy, with middle-management positions consistently filledby Cambodian employees. This approach has directly createdover 500 employment opportunities in Cambodia, establishingthe company as a significant driver of local employment.Simultaneously, the company persists in providing frontline staffwith Chinese language training, using language and cultural bondsas a bridge to foster communication.
Adhering to a “localisation” personnel strategy and building a China-Cambodia talent bridge
CDFG (Cambodia) Limited launches the “Cambodian Cultural Creations” Love & CharityJourney to support child welfare InitiativesSince October 2014, CDFG (Cambodia) Limited has providedtargeted assistance to the Cambodia Children’s Art Orphanageunder the theme “The Love & Charity Journey”. On 28November 2025, CDFG (Cambodia) Limited launched the“Cambodian Cultural Creations” Love & Charity Journey atthe orphanage, with employees making voluntary donationsand actively participating. The initiative involved donating dailynecessities (such as original T-shirts, cultural creation products,stationery, and food & beverages) to the orphanage. Activitiessuch as interactive painting sessions provided companionshipand care, supporting child welfare causes. This innovative“Philanthropy + Cultural Creativity” model shapes cdf’s brandimage as equally prioritising commercial and social value,enhances its affinity within the Southeast Asian market, andincreases consumer recognition of “cdf Cultural Creations”.
We closely align with “national priorities, Hong Kong’s strengths,and corporate capabilities” to boost Hong Kong’s developmentmomentum through the extensive recruitment of local staff. Leveragingcommunity networks, we collaborate with grassroots organisations,Hong Kong-based enterprises, and universities to deliver communityvolunteering, staff discount programmes, and support for competitionslike the Hong Kong Inter-University Basketball Tournament. Thisconsolidates patriotic and pro-Hong Kong sentiment at the grassroots
level, upholding the principle of “patriots administering Hong Kong.”We maintain a sustained focus on Hong Kong youth development,actively participating in government and Hong Kong ChineseEnterprises Association youth employment and internship schemes.Initiatives include providing local job opportunities, delivering patriotictraining programmes for Hong Kong employees, and implementingmentorship programmes to support disadvantaged students, therebyfostering unity and cohesion among Hong Kong’s youth.
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The company is committed to serving and advancing the nationalrural revitalisation strategy. To this end, the company hasincreased its support for key targets, with a view to improving ruralindustries, rural infrastructure, and rural governance. We havestrived to increase agricultural efficiency, boost rural vitality, andraise farmers’ incomes, thereby providing fundamental support forChinese modernisation.In 2025, the company invested CNY 16.88 million in non-reimbursable assistance funds and mobilised CNY 10.05 million invarious types of support funds. Additionally, the company donatedschool uniforms about CNY 0.6 million. We also supervised our
A school uniform donation certi?cate from Ximeng countyA school uniform donation certi?cate from Menglian county
Promoting the Comprehensive Revitalisation of Rural Areas to Createa New Vision for the Modernisation of Agriculture and Rural Areas
Industrial Revitalisation
The company has invested CNY 2.1 million in Hui’e villageand Jingmao village, Jingxin township, Menglian countyto cultivate Amomum (砂仁) under forest canopies. Thisincludes constructing a standardised processing facilityfor Amomum, introducing advanced planting techniquesand equipment, and developing distinctive culturaland tourism products such as Amomum foot soaking
Industrial revitalisation forms the foundation for the comprehensiverevitalisation of rural areas.
employees serving as temporary cadres in Menglian county andXimeng county, Yunnan province on the implementation of 16support projects across the five pillars: industrial revitalisation,talent revitalisation, cultural revitalisation, ecological revitalisation,and organisational revitalisation. Based on thorough research andtaking into account local talent needs, our employees organisedtraining programmes targeting grassroots officials at the county,township, and village levels, as well as champions of ruralrevitalisation and wealth creation and technical professionals. In2025, they trained a total of 1,690 participants, providing signi?cantsupport for rural revitalisation efforts in the two counties in terms oftalent development.
sachets, therapeutic food packages, and Dai ethnicmedicinal herb bags. Additionally, a product exhibitionand experience platform has been established to providetechnical training and career development opportunities.These efforts aim to enhance farmers’ production skillsand overall competencies, thereby advancing agriculturalmodernisation.
Talent Revitalisation
The company has invested CNY 3 million in the BeautifulVillage Enhancement Project for the Xuanfu CulturalBlock in Nayun Ancient Town, Menglian county. Theinvestment includes the renovation of street facades,buildings, and walls, as well as the construction of newguardrails, movable planters, flowerpots, and Dai ethnic
Rural revitalisation hinges on talent.
A visit to a key demonstration site at a vegetable industrial park in
Jinggu county
The company continues to help build a solid talent foundation forrural revitalisation. In 2025, we organised a training programmeto upskill grassroots of?cials and champions of wealth creation inJinggu and Ning’er counties in Yunnan province; and 78 county,township, and village officials and champions participated.Focusing on industrial development trends and grassrootsgovernance, these immersive learning sessions delivered strongand sustainable endogenous momentum for the rural revitalisationof Ximeng county.
The company continues to support the “Star of Hope: GoodTeachers” training programme. In 2025, the company organisedthe selection of backbone teachers from 27 primary schoolsacross seven townships in Ximeng county to participate in anexchange programme in Zhuhai city, Guangdong province.This initiative is designed to enhance teachers’ subject-specificexpertise and improve teaching quality. Through our support forfaculty development in rural areas, we are effectively narrowingthe urban-rural education gap and laying a solid educationalfoundation for rural revitalisation.
The company cares deeply about education in remote borderareas. In 2025, we supported the recording classroom projectat Ximeng County Ethnic Primary School. This initiative aims toenable more students to access diverse and abundant teachingresources, broaden professional development channels forteachers, facilitate the transition from traditional to smart classroommodels, and promote the sharing of high-quality educationalresources across regions.
pottery lamps. The plan is to create a cultural and creativestreet featuring over 20 businesses that integrate Daiethnic cuisine, coffee tasting, avocado tasting, and smallspecialty goods, thereby expanding local industrial chainsto help residents create wealth.
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Cultural Revitalisation
Ecological Revitalisation
Rural revitalisation begins with prioritising the preservation of cultural heritage.The company supported Xiaoxinzhai, a traditionalsettlement of the Wa ethnic group in Yuesong village,Yuesong township, Ximeng county, in its project to improveits living environment and enhance red cultural tourism.This includes establishing a Party-building corner, settingup promotional exhibition boards, collecting historical relicsfrom the Red Flag Militia Company’s battles, exploringthe connotations of red frontier defence culture, andconstructing a red educational base in Ximeng county.These efforts are enhancing the visibility and influenceof the Wa ethnic settlement as a tourist attraction andstrengthening its cohesion.
The company also supported the “Washan Dancers”Supporting Facilities Enhancement Project in Yong’e ofMashan village, Mengka town, Ximeng county. This projectincludes providing 80 sets of traditional ethnic costumes,repairing the stage, and improving stage facilities. Theseefforts effectively enhance the quality and visual impact ofethnic dance performances, promote and preserve ethnicculture, and enrich the spiritual and cultural life of the localcommunity.
The company continues to advance the construction of theLikan Rural Resort in Mengsuo village, Mengsuo town, Ximengcounty. New drainage ditches and potable water pipelines havebeen installed, and work is ongoing on the constant-temperatureheating system for the rural complex’s swimming pool. The
We supported an upgrade project forthe traditional Dai ethnic settlementin Hui’e village, Jingxin township,Menglian county. The projectincludes improvements to roads andancillary facilities, and renovationsto villagers’ courtyard walls, gates,and coloured steel roofing, as well assupplementary greening initiatives.These efforts have elevated the localliving and ecological environment whileenhancing infrastructure for industrialdevelopment, directly benefiting 786residents from 158 households.
Building a liveable and business-friendly, harmonious and beautiful
countryside enhances the well-being of farmers.
project is designed to upgrade tourism facilities in the Likan sub-unit, contributing to the creation of a beautiful, liveable, business-friendly, and visitor-ready village. It will also diversify local tourismofferings and promote the in-depth integration of agriculture,culture and tourism.
Organisational Revitalisation
Kunming cdf signed co-construction agreementswith four grassroots Party organisations in Mengliancounty and Ximeng county for 2024. By signing theseagreements, Kunming cdf committed to working withthese organisations to hold joint Party-building activities,exploring ways to enhance rural governance throughstrengthened Party-building.
Support for Local Rural Industrial Development
Hainan DF carefully selected and dispatched rural revitalisation task force members towork at the grassroots level to support rural revitalisation in Yongfu village, Baisha countyin Hainan. They provided signi?cant industrial assistance, which helped increase villagers’incomes and improve their livelihoods. By collaborating with trade unions on consumption-based poverty alleviation initiatives in 2025, we successfully boosted the collective incomeof the village by over CNY 260,000.
Leveraging Our Strengths as a Tourism Retailer
To capitalise on our advantages as atourism retailer, we set up a “Xing Lv YunPin” store for local agricultural products atSanya International Duty-Free ShoppingComplex and Haikou International Duty-Free Shopping Complex. By introducingnew distinctive agricultural products, wefacilitated the sale of CNY 2.16 millionworth of goods from 7 counties for whichthe group has been assigned to providegeneral assistance and 1 county for whichthe group has been assigned to providespecial assistance. Meanwhile, employeesserving as temporary cadres in Mengliancounty and Ximeng county helped selldistinctive agricultural products worthCNY 1.38 million. These efforts opened upmarket channels for distinctive agriculturalproducts from formerly impoverishedregions, empowering local farmers to growtheir incomes.
Our “Xing Lv Yun Pin” store at SanyaInternational Duty-Free Shopping Complex
Our “Xing Lv Yun Pin” store at HaikouInternational Duty-Free Shopping Complex
Organisational revitalisation is key to advancing the modernisationof rural governance.
Consumption-based Poverty Alleviation
The company mobilised its trade unions at various levels to purchase distinctive agriculturalproducts from counties that had achieved poverty alleviation. In 2025, we spent a total ofCNY 1.64 million on agricultural products from Menglian county and Ximeng county.
Purchased distinctive agricultural productsduring the year
1.64
million
we successfully boosted the collectiveincome of the village by over
260,000
The company also organised leading officials fromMenglian county to attend a specialised trainingprogramme in Shenzhen on “Embracing the Spiritof Reform and Opening-up to Promote High-qualityDevelopment in Menglian County”.
8081
People
Employee Rights and Promoting TheirInterestsOperational Safety and Physical and MentalHealthEnhancing Our Comprehensive TrainingSystem to Support Employee evelopment
CTG DUTY-FREE actively responds to United Nations(UN) Sustainable Development Goals (SDGs) 3, 5and 8. As a people-oriented organization. We arecommitted to safeguarding employee rights, fosteringa culture of care and support. We cultivate a nurturingenvironment that enables our employees’ professionalgrowth, while creating a secure, equitable, anddynamic workplace.
People
People
Employee Rights and Promoting Their Interests
RisksImpactMitigation measuresEmployee retentionrisks
Employee attrition may lead to delayed response times,potentially compromising customer service quality overthe short term; sustained turnover risks may undermineour competitive advantage and brand reputation in themarketplace over the medium and long term.
Strengthen comprehensive compensationmanagement, optimise incentive mechanisms, andfoster a supportive work environment through regularemployee well-being initiativesEmployeeperformance risks
Inadequate professional skills or a failure to adapt to evolvingmarket demands may negatively affect service deliverystandards over the short term; persistent skill gaps couldundermine our competitive advantage and brand reputationover the medium and long term.
Establish robust talent development frameworks,deliver tiered and categorised training programmes forall employees, organise skills competitions to promotecontinuous learning and performance improvement
StrategyAs a vital asset to our sustainable development, our workforce is supported by comprehensive process management systems designed toensure regulatory compliance in our employment practices, while effectively attracting and retaining top talent.
GovernanceThe company has established a clear governance framework for employeemanagement. The responsibilities of the Human Resources Departmentand its subordinate teams are defined in the “Headquarters DepartmentResponsibilities and Organisational Structure”. Meanwhile, we havespecified the implementation measures for tenure-based and contractualmanagement of managerial personnel in the “Performance ManagementMeasures for Headquarters Employees”, which establishes fundamentalprinciples for comprehensive performance evaluation and clarifies supervisionmechanisms for employees’ work. Meanwhile, we have specified theimplementation measures for tenure-based and contractual management ofmanagerial personnel in the “Tenure-based and Contractual Management
Measures” which also establishes fundamental principles for comprehensiveperformance evaluation and clarifies supervision mechanisms for employees’work in the “Performance Management Measures for HeadquartersEmployees”.The employee management of the company is coordinated by the HumanResources Department/Party Committee Organisation Department, withteams for talent recruitment, talent development and training, compensationand benefits management, performance management, and employeerelationship positions.
Employment ManagementWe consistently uphold the “people-oriented” management philosophyregarding talent management and strictly comply with the Labour Law,the Labour Contract Law and other laws and regulations, as well as theinternational human rights and labour conventions and protocols that China
has signed, such as the Equal Remuneration Convention and the Eliminationof Discrimination in Respect of Employment and Occupation. We adhere tothe principles of honesty, trustworthiness, fairness and justice in our dealingswith employees, and we fully guarantee their rights and interests.
Recruitment Management
The company has developed a comprehensive employeerecruitment system and has recruited our employees throughon-campus recruitment, job fairs, recruitment agencies, onlinerecruitment platforms and internal recruitment. We sign labourcontracts with employees. We adhere to the recruitment principle offocusing both on integrity and ability. We also respect differences,encourage diversity, and prohibit any form of discrimination fromupholding the principles of fairness, impartiality and openness.
Our company has formulated hiring criteria according to the actualneeds of each position without imposing any restrictions relatedto age, gender, ethnicity, religious beliefs or other characteristics.For high-end talents, we insist on a combination of externalintroductions and internal trainings, attracting more talents on aselective basis, and selecting the best candidates to target forrecruitment.
Holiday and Working Hours Management
comprehensive working hours. We strictly enforce the monthly 174working hour working system. As for excess working hours, wearrange compensated leave or pay overtime according to labourlaws and regulations. While we strictly adhere to the Labour Lawstipulation that employees’ monthly overtime shall not exceed 36hours to effectively protect employees’ rights to rest.
The company adheres to the concepts of market-orientedremuneration, regular reviews of applicable salary standardsare conducted, determines remuneration standards based onthe “double benchmarking” principle and matches the incentivelevel with the company’s development and talent strategy. Thecompany has established a performance and remunerationmanagement system, which aligns with the prioritises performanceand follows the principles of fairness, positive motivation andsustainable development. We set the basic and performancesalary ratios based on market practices. In this regard, thecompany determines the basic salary based on the positionduties, personal capabilities and other factors. The performancesalary is linked to the company’s comprehensive performance,the department’s performance and the individual’s performance,forming a mechanism of effective incentives and restraints. 60% ofannual remuneration for corporate managers at all levels is linked tocorporate performance assessments. Actual performance-basedpay correlates with both enterprise evaluation scores and individual
managerial assessments. No systematic gender-based pay gapwas identified during the reporting period.
Employment Management
In regards of prohibiting child labour, we strictly abide bylabour laws and regulations, check ID card during on-boardingprocedures and forbid the employment of child labour. In terms ofpreventing forced labour, we strictly prohibit restricting employees’freedoms or forcing employees to work by collecting deposits,detaining documents, or engaging in threats. We periodically reviewemployee records and conduct ongoing operational monitoring
to identify any potential instances of child labour or forced labour.Any suspected cases are subject to immediate investigation, andemployment of underage workers is promptly terminated. Duringthe reporting year, our company did not have any violations of lawsand regulations involving child labour or forced labour
Our Trade Union election conference in 2025
We strictly observe regulatory requirements regarding nationalstatutory holidays, employees are entitled to annual leave,maternity leave, marriage leave, parental leave, parental careleave for single-child families and additional blood donation leave,parent-teacher conference leave, etc. According to the company’ssituation, we implement two working hour systems: standard and
Democratic Management
We continue to improve its democratic management system, which isbased on the trade union and the workers’ representative congresses.The company’s trade union is committed to safeguarding collectivebargaining rights of employees; and it carries out its work followingthe Trade Union Law, the Constitution of the Chinese Trade Unionand other laws and plays a vital role in public affairs. The trade unioneffectively promotes the participation of employees in the company’sdemocratic management and deliberations involving major issuesconcerning the vital interests of employees. When formulating,revising and deciding rules, regulations and material issues that aredirectly related to the vital interests of our employees, such as labourremuneration, working hours, rest and leave, labour safety and healthmanagement, insurance and welfare, employee training, labourdiscipline, headcount management, etc.,
we collect opinions from general meetings of employee representativesto ensure that decisions are made through consultation and on anequal basis. We then make public announcements to all employeesor notify the relevant departments or individuals after decisions aremade. Employees may also appeal to the trade union through email,WeChat, in person talks and other channels. In 2025, our trade unioncompleted the headquarters union leadership election in compliancewith our established policies, electing new committees including theUnion Committee, the Funds Audit Committee, and the Women’s WorkCommittee. A total of three staff congress meetings were convenedthroughout the year to safeguard employees’ rights to information,participation, expression, and oversight.
Comprehensive Remuneration Management with performance incentives
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Risk IdentificationRisk Identification: We identify potentialrisk points in regards of employeerights safeguarding, recruitmentmanagement, labour practicesguidelines, working hours and holidaypolicies, employee participationmechanisms, and comprehensivecompensation management withperformance incentives. This systematicapproach ensures full coverage ofpotential risk areas without blind spots.
Risk Assessment
Risk Assessment: We assess eachidentified risk and assign to it acertain risk level across our riskcontinuum, based on its likelihood ofoccurrence, magnitude, time horizon,and irremediability. For high-priorityrisks, we promptly initiate a dedicatedassessment and work with relevantstakeholders to define the scope andboundaries of their potential impact.Risk MitigationWe develop a specific risk mitigationstrategy, based on the assigned risklevel, to ensure accuracy and efficiencyin our response to the risk.
Risk Monitoring
Responsible departments regularlymonitor and review how our employeemanagement processes are operating,to ensure the effectiveness of thecontrols in place.
The company actively implements the spirit of common prosperityto share the fruits of its corporate development with employees. Inaddition to basic salaries, we have implemented enhanced salarysafeguards for front-line staff and strengthened baseline protectionsfor lower-income employees and employees whose positionsmay expose them to hardship, danger and heavy workload.The company formulates “One Enterprise, One Policy” wagestandards based on regional average wages, and our salary levelsare significantly higher than the local minimum wage standards.Any employees who work a full year and receive incomes belowthis standard are compensated accordingly. In 2025, we furtheroptimised our compensation standards for front-line employeesin Hainan, increased the basic wage level for such employees bymore than 15%.The company is actively advancing medium-to-long-term incentivemechanisms. In terms of medium-to-long-term incentives, thecompany comprehensively implements a system under whichcorporate managers at all levels are contractually managedon a tenure basis. Under the system, managers are required
to sign contracts that reward them strictly in accordance withperformance appraisal results. Tenure incentives are only awardedto managers who meet the contractual performance standards.We are actively exploring the implementation of an excessprofit-sharing mechanism, with plans to apply this approach toeligible subsidiaries starting from 2026. Currently, we have notyet introduced equity incentive programmes or employee stockownership plans (ESOPs). However, when appropriate, we willapply medium-to-long-term incentives to eligible subsidiaries tofurther stimulate their innovation and creativity.All employee compensation and welfare systems undergo rigorousscrutiny during the formulation and revision stages to ensurethey are aligned with corporate policies and legal and regulatoryrequirements. Prior to implementation, these systems are alsosubject to strict review procedures conducted by the workers’representative congresses. Meanwhile, the Party Committeeconducts inspections and specialised audits to comprehensivelyexamine subsidiary enterprises’ salary and welfare performance onan annual basis.
Unless exceptional circumstances arise, we generally donot voluntarily sever or terminate the labour relationship withemployees. If it is necessary to terminate or rescind an employee’slabour contract, we strictly follow the process in accordance withthe requirements and procedures of labour laws and regulations.
Those who should be given economic compensation according tothe law will receive corresponding compensation according to thelegal requirements. The company generally does not try to restrictemployees’ choice of new jobs. For cases involving competitionrestrictions, such restrictions are handled according to the signedagreement.
Resignations Management
Impact, Risk, and Opportunity Management
We regularly review our employee management policies and practices and we have integrated employee-related risks into our enterprise-wide risk management process.We have put in place a closed-loop management system for employee-related risk, encompassing “Risk Identification – Risk Assessment– Risk Mitigation – Risk Monitoring”. This systematic approach enables precise prevention and control of sustainability-related risks, whileproactively identifying potential value creation opportunities, thereby facilitating synergistic growth between ESG value and business value.
Metrics and Targets
20242025
The percentage of ethnic minorityemployees in the management
5.45 %
4.55 %
The number of foreign employees
Person
Person
The percentage of foreign employees
3.24 %
3.14 %
0.91 %
0.91 %
The percentage of foreignemployees in the management
Person
PersonThe number of physicallychallenged employees
25 %
36.36 %
Females in the Board of Directors
38.18 %
36.36 %
Females in the management
25 %
25 %
Females in the seniormanagerial roles
39.22 %
37.25 %
Females in the middlemanagerial roles
Total number of employees
14,485Person
16,027
Person
The number of ethnicminority employees
1,221Person
1,468
Person
The percentage of ethnicminority employees
8.43 %
9.16 %
Total number of new employees
1,567Person
1,905
PersonShare of women in management positions in revenue-generatingfunctions (e.g. sales) as % of all such managers
37.08 %
36 %
352,679
376,911
Employee productivityInternal hire rate
54.33 %
45.35 %
CNY/Person
CNY/Person
>>>>>>>>>>
14,485
PersonAs of 2025, total number of employees
59.84 %
Females in the Board of Directors
25 %Females in the middle managerial roles
39.22 %
Females in the senior managerial roles
25 %
Females in the total employees
8687
People
202520252024
The number of employees by genderThe number of employees by employee category
2024Female
Middlemanagerial rolesGeneralemployeesMale
Seniormanagerial roles
9,252 Person
57.7%
8,668 Person
59.84%
8 Person
0.05%
8 Person
0.06%
102 Person
0.64%
102 Person
0.70%
6,775 Person
42.3%
5,817 Person
40.16%
15,917 Person
99.31%
14,375 Person
99.24%
2025202520242024
The number of new employees by genderThe number of new employees by employee category
FemaleMale
Middlemanagerial rolesGeneralemployeesSeniormanagerial roles
1,180 Person
61.94%
998 Person
63.71%
0 Person0%2 Person
0.13%
4 Person
0.21%
16 Person
1.02%
725 Person
38.06%
569 Person
36.29%
1,901 Person
99.79%
1,549 Person
98.85%
The number of employees by region
2,225Person
13.88%
2,223Person
15.34%
Person
0.25%
Person
0.75%
Person
0.38%
Person
4.54%
Person
5.61%
Person
1.92%
Person
2.91%
Person
3.36%
Person
3.46%
Person
1.48%
Person
1.35%
2,184Person
13.63%
1,949Person
13.45%
9,767Person
60.94%
8,221Person
56.75%
The number of employees by age group
50-6030-39Below 22Over 6040-4922-29
20252024
20242025
1,799 Person
11.23%
1,801 Person
12.43%
6,670 Person
41.62%
6,616 Person
45.68%
6,871 Person
42.87%
5,277 Person
36.43%
425 Person
2.65%
407 Person
2.81%
8 Person
0.05%
6 Person
0.04%
254 Person
1.58%
378 Person
2.61%
North China Northeast
ChinaEast China Northwest
China
ChineseHongKong SAR,Macau SARand TaiwanregionSouth ChinaCentral ChinaSouthwest
China
Overseas
2025202520242024
The number of new employees by ethnicity The number of new employees by nationality
Chinese ethnicminoritiesChinese HongKong SAR,Macau SAR,Taiwan regionand overseas
Han ethnic group
1,570Person
82.42%
1,368Person
87.31%
Person
10.18%
Person
6.76%
Person
7.40%
Person
5.93%
ForeignnationalityChinesenationality
1,764Person
92.60%
1,474Person
94.07%
Person
7.40%
Person
5.93%
20252024
Employee turnover
rate by gender
Employee turnoverrate by age groupEmployee turnover
rate by category
Employee turnover rateby geographical region
Male
17.53 %
19.87 %
Female
14.33 %
14.89 %
45.5 %
52.94 %
17.94 %
12.53 %
13.04 %
6.98 %
14.93 %
11.73 %
21.51 %
19.23 %
11.27 %
48.58 %
Over 6050-6040-4930-3922-29Below 22
Seniormanagerialroles
0 %25 %
0.98 %
5.88 %
17.10 %
18.72 %
Overseas
18.54 %
16.14 %
17.15 %
ChineseMainland
18.14 %
Employee turnover rate
Over 6030-39Below 2250-6040-4922-29
The number of new employees by age group
20242025
Person
6.88%
Person
9.70%
Person
29.29%
Person
31.78%
1,055Person
55.38%
Person
45.89%
Person
1.05%
Person
2.55%
Person
0.00%
Person
0.00%
Person
7.40%
Person
10.08%
Total employee turnover rate
17.25 %
of which employee voluntary turnover rate was
10.48 %
MiddlemanagerialrolesGeneralemployees
ChineseHong KongSAR, MacauSAR andTaiwanregion
17.98 %
30.54 %
8889
People
Care for Employees
In accordance with national and local regulations, we havedesigned and implemented a robust employee welfare policy.While ensuring timely and full payment of social insuranceand housing provident funds for employees, we also provideadditional benefits, including corporate pension plans,supplementary medical insurance, subsidised meals, andextended healthcare coverage for employees’ minor children.This approach has enabled us to establish a social insurance-based, multi-tiered welfare system, supplemented by additionalcorporate welfare programmes. The total amount of employeebenefits in 2025 is CNY232 million.We have formulated the “Administrative Regulations onAssistance for Sick Employees and the Collective Welfare ofTrade Unions”. The company’s trade union conducts complete
Canteen at headquartersFood at canteen
Our mother-and-baby roomOur staff lounge
The company has regularly accessiblestaff activity rooms that offer tabletennis, treadmills, and billiards. Wehave put in place special mother-and-baby care initiatives. Our upgraded andrenovated mother-and-baby roomsreceived the “Maternity Care Room”accreditation from the Beijing MunicipalFederation of Trade Unions for providinga safe and comfortable environmentfor female employees during theirpregnancy and breastfeeding periods.
Employee benefits
In 2025, to demonstrate care for our people, we conducted 48 congratulatory or condolence visits for employees who were gettingmarried, giving birth, experiencing bereavement, and retiring, offered four tributes to annual model workers, and delivered heart-warming greetings to staff members facing financial difficulties and front-line workers who were on duty during New Year’s Eve andSpring Festival.
Condolence and assistance
In 2025, we implemented upgrades tothe headquarters’ staff cafeteria. Keyimprovements included a renewal of diningutensils and tableware, the optimisationof dining flow and service procedures, anenhanced quality of selected menu items,the addition of a light meal area, and thereconfiguration of functional zones suchas a water bar, a suggestions board, anda food recommendation area. We alsoestablished an Employee Cafeteria DietaryTask Force to formalise communicationmechanisms regarding menu preferences.A systematic satisfaction survey was rolledout across headquarters, achieving adining satisfaction rate of 93.78% throughcontinuous feedback loops and iterativeimprovements.
Work environment
Facilities and Employee Services
Based on the principle of “understanding our people, meeting theirneeds and addressing their difficulties”, we continuously striveto care for our employees’ needs. Our company also improvesemployees’ working conditions, enhances and ensures their quality
investigations to collect employees’ opinions. It sends warm andconsiderate blessings to employees on holidays and birthdaysbased on their age, tastes and living habits. The companydemonstrates care for various groups, such as employees withdifficulties and female employees. The company advocates aninclusive culture and fully considers the needs of ethnic minorityemployees. For example, we have set up a halal canteen for Huistaff.In 2025, the company’s stores in Hainan region provided shuttlebus for staff commute. At Sanya Downtown Store and HaikouMeilan Airport Duty-Free Shop under Hainan DF, over 50%employees utilised shuttle buses for commuting, significantlyimproving staff commute convenience.
of life, increases their happiness and satisfaction, and generallycreates conditions that make employees “proud to work at CTGDUTY-FREE”.
Reading and sports activities
The company organizes spring outing activities, allow staffto relieve stress, bond with colleagues, and rejuvenate. Weparticipated in the group’s Third Staff Sports Games, and wonchampionships in five-a-side football, basketball, badminton,track and field, and fun sports team competition, and wonsecond prize in table tennis. We also released a “CreativeExcellence Award” to recognise employees who demonstrated
The company’s staff sports eventThe group’s staff sports eventSpring outing
Employee Interest Activities
We have established four employee interest groups, and have set up sports clubs for yoga, basketball, badminton, and football, aspart of our effort to make these sports activities part of our permanent schedule. In 2025, we organised over 200 matches and relatedactivities across the four sports clubs.
Badminton clubBasketball clubFootball club
Festival activities
The subordinate trade unions carried out a series of activities to celebrate special days, such as Spring Festival, International Women’sDay, and May Fourth Youth.
Spring Festival activityInternational Women’s Day activityMay Fourth Youth Activity
a bold, challenge-embracing spirit. In 2025, we held staffsports games for CTG DUTY-FREE’s subsidiaries, branchesand associated entities in Beijing. This event, which attractedover 400 participants, effectively promoted fellowship andcollaboration among these entities in Beijing, while significantlyenhancing employees’ sense of belonging and their collectivepride.
9091
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Operational Safety and Physical and Mental HealthOperational SafetyThe company continues optimising its safety culture, upholds theprinciple of “people first and life-centred,” and fully implements thepolicy of “safety first, prevention prioritised, and comprehensivemanagement,” deeply integrating safety production into everyaspect of its operations and business processes.
Fulfilment of ResponsibilitiesThe company strictly abides by laws and regulations such astheWork Safety Law, the Law on the Prevention and Control ofOccupational Diseases, and continuously improves its institutionalsystem. It revised 7 regulations in 2025, including the “DetailedRules for Safety, Environmental Protection, and OccupationalHealth Assessment” and the “Regulations for Special EquipmentSafety Management.” It also conducted training sessions on thenewly revised regulations such as “Work Safety ManagementMeasures”, followed by online quizzes for the main responsiblepersons, deputy responsible persons, and safety managers fromvarious units, with 432 participants all passing the assessment.Subsidiaries simultaneously improved their system constructionto ensure full coverage throughout the entire production andoperations process.The company continuously enhances its responsibility system,adjusting and optimising the composition and responsibilitiesof the safety committee at various levels based on personnelchanges and actual production and operational needs. Itsupervises each level of the enterprise to establish and improvethe operational mechanisms for safety committees, clarify thedepartments responsible for safety management, and ensurethat safety management personnel are adequately staffed andcompetent. By the end of 2025, the company had a total of 258safety management personnel. In 2025, the company revised theoverall production safety responsibility system, clearly defining theproduction safety responsibilities of the company’s leadership,various departments, and positions. The company signed 86“Responsibility Letters for Achieving Safety and EnvironmentalProtection Goals” with various departments and affiliatedenterprises, with all employees having signed such “Safety andEnvironmental Protection Responsibility Letters,” achieving 100%coverage of safety production responsibilities and promoting theshift from “full participation” to “full accountability” in productionsafety.System ConstructionThe company promotes standardised construction, and activelyorganises affiliated enterprises to carry out safety productionstandardisation initiatives. Sanya International Duty-Free ShoppingComplex invited professional teams to help it improve theproduction safety management system, develop standardisedmanuals, revise 12 regulations, and complete certification for theISO 9001 Quality Management System, ISO 14001 EnvironmentalManagement System, and ISO 45001 Occupational Health andSafety Management System. Haikou International Duty-FreeShopping Complex has established and revised its productionsafety and fire safety management systems in accordance with theBasic Norms forEnterprise Production Safety Standardisation (GB/T 33000-2016), achieving systematic management of safety andfire protection, as well as standardised job operations.
2,504
itemsIdentified various safety hazards
Conducted various safety inspection
1,765
times
100 %
Rectification rate
Hazard Management
In 2025, the company continued to deepen its three-year initiativefor fundamental improvements in workplace safety, as well ascarrying out the “Thunderbolt” action and fire safety inspections. Itdeveloped specific plans, refined various tasks and conducted atotal of 1,765 safety inspections, identifying 2,504 hazards, all ofwhich had been rectified at a 100% resolution rate.
ISO 45001 Occupational Health and SafetyManagement System Certification for SanyaInternational Duty-Free Shopping Complex
Special inspections were continuously carried out in denselypopulated areas such as commercial complexes, ongoingconstruction projects, logistics centres, and office buildings, as wellas key areas:
In 2025, the company innovated its hazard managementmechanism to build a comprehensive safety defence systeminvolving all employees. The company has formulated and issuedthe "Implementation Plan for the Reward Mechanism for InternalReporting of Accident Hazards.” It also developed a “HazardReport QR Code” and posted it in prominent locations across allunits to fully mobilise employee participation in hazard inspections.Throughout the year, employees reported 147 hazards viaQR code, all of which were rectified. Rewards were given toemployees who reported the hazards. In December 2025, thecompany organised cross-checks at key units with internal safetyexperts to further enhance the quality and effectiveness of hazardmanagement. The company also invited third-party experts toconduct 5 safety inspections and assessments throughout theyear. These experts specialised in areas such as construction sitesafety, fire safety, and electrical safety. By combining inspectionswith training, the company continuously improves its ability toidentify and rectify on-site hazards.During key periods such as year-end, the “Two Sessions”, MayDay and National Day, comprehensive and all-encompassing safetyinspections are organised across all areas, focusing on criticalaspects such as construction work, fire safety, electrical safety,and gas safety. A list of identified hazards has been compiled, andmeasures are taken to ensure that these issues are addressed andresolved in a closed-loop manner. In response to extreme weatherevents such as typhoons and heavy rainfall, an early warningand response mechanism has been established. We have alsorefined flood and typhoon emergency plans, reinforced facilitiesand equipment, and stockpiled emergency supplies to effectivelymitigate the impact of typhoons such as “Wutip,” “Tapah,” “Mitag,”and “Ragasa,” as well as heavy rain and heat waves throughout theyear. This ensured the safety of duty-free complexes, stores, andlogistics centres during the flood season.
Warehouse safety inspections: Comprehensive checks were
organised in commercial complexes, duty-free stores, andwarehousing units, focusing on issues such as multiple tenantssharing the same warehouse space, compliance of buildingfireproof materials, and management of fire safety equipment;
Fire safety special inspections: The company carried out strictinspections for non-compliant hot work operations, flammableand combustible decorative insulation materials, and blockages inevacuation routes. Commercial complexes conducted daily patrolsbefore opening and after closing, with key areas being inspectedevery 2 hours;
Special equipment inspections: The company conducted
inspections on the operation and maintenance of elevators,escalators, and lifting machinery, strictly verifying their annualinspections and certification of operators;
Special investigations on ongoing construction projects:
Focusing on high-risk and major projects such as lifting machinery,scaffolding, high-support formwork, and deep excavations, thecompany formulated a “Check Scoring Form” for the scoring andranking of each project’s subcontractor;
Overseas hazard investigations: Leaders from CDFG (Cambodia)
Limited led 13 safety hazard inspections and invited externalexperts to conduct one on-site inspection. Each store conducteda comprehensive inspection once a month and a smaller-scaleinspection once a week.
Each store conducted a comprehensive inspection once amonth and a smaller-scale inspection once a week
Invited external experts to conduct one on-site inspection
Overseas hazard investigations: Leaders fromCDFG (Cambodia) Limited led
safety hazard inspections
9293
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The company took initiatives such as Operational Safety Month,Fire Prevention Publicity Month, and Publicity Week for the Lawon the Prevention and Control of Occupational Diseases asopportunities to promote occupational safety laws and regulationsthrough diverse forms, including on-site learning at bulletin boards,banners, online learning, quizzes and experience centres. CDFGDigital Technology launched mobile news push notifications andsafety knowledge competitions. Sanya International Duty-FreeShopping Complex and Riyue Plaza Duty-Free Shop organised
Education and TrainingThe company has always prioritisedworkplace safety. In 2025, the companyorganised various types of trainingsessions, including training lectures givenby external safety experts, essentialknowledge and skills for workplace safety,onboard training sessions for new recruits,fire safety, anti-terrorism, construction sitesafety, occupational health, and studieson typical accident cases, totalling 1,385sessions with 75,400 participants.
75,400ParticipantsTraining1,385
sessions
Comprehensive workplace safety training? The company invited external experts in fire safety to
provide training for divisional safety managers and safetyofficers at all levels. This aimed to strengthen employees’awareness of fire safety, enhance their ability to identifyhazards, and improve their emergency responsecapabilities.? The company included workplace safety training as amandatory course for new recruits and integrated it into theonboard training programme, ensuring a 100% coveragerate.? CDF Investment Development held 4 “Workplace SafetyGrand Lectures” events, featuring online lectures byboth internal and external experts, to enhance the safetymanagement skills of engineering managers across thecompany.
? The company organised 4 comprehensive safety trainingsessions for all staff, featuring internal lectures and presentationsby external professionals such as staff from the Hong Kong FireServices Department.? CDFG Trading conducted training sessions on essentialknowledge and skills for workplace safety, systematicallyexplaining core regulations such as theLaw of the People’sRepublic of China on Work Safety, theSpecial EquipmentSafety Law of the People's Republic of China, theEmergencyResponse Law of the People's Republic of Chinaand theFireControl Law of the People's Republic of China, as well ascommon safety terminology. After the training, an online examwas administered to effectively reinforce employees’ theoreticalsafety knowledge.
Contractors Training? For ongoing construction projects, we actively carry out
warning education activities, promptly disseminatingthe central enterprise’s emergency video conferenceon workplace safety and the higher-level instructions togeneral contractors, subcontractors, and supervising
units. We have also drawn lessons from various accident casesand actively conduct training, including operations training, fireemergency response training, scaffolding safety training, andconfined space operations training.
Fire Safety Training? Haikou International Duty-Free Shopping Complexand Sanya International Duty-Free Shopping Complexorganised comprehensive fire-fighting practical trainingsessions for all employees, so as to ensure that everyemployee understand how to, be able to and feel confidentto put out fires.? CDF Investment Development organised on-site visits to
the fire safety education experience centre for employees,
allowing them to experience the harsh realities of a fire scenefirsthand. This provided employees with a direct and vividunderstanding of the dangers and consequences of fires.
? Boao Duty-Free Store invited a fire prevention officer from the
Qionghai City Fire Brigade’s Boao Detachment and a trafficpolice officer from the Boao Branch of the Qionghai MunicipalPublic Security Bureau to conduct fire safety and traffic safetytraining sessions.safety knowledge competitions and fire-fighting skill practicaltraining sessions to enhance employees’ safety awareness andoperational skills. Additionally, the company has established a bi-monthly safety bulletin mechanism to regularly communicate safetyrequirements and professional knowledge. Sanya InternationalDuty-Free Shopping Complex has also set up a safety culturecorridor, to centrally promote 16 items across four categories:
occupational safety, fire safety, fire facility exhibitions, and security.
MetricsTier 2 metricsUnit202520242023Work-related fatalities
EmployeeNumber of people000ContractorsNumber of people00/The fatality rate of theCompany’s employees due to
work-related injuries
/%000Total number of work-related
injury cases
/Cases000Number of working days lost
due to work-related injury
EmployeeDays000ContractorsDays00/Lost-time injury frequencyrate (per one million hoursworked)
(LTIFR)
Employee%000Contractors%00/
1 Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers*100%2 Lost-time injury frequency rate (per one million hours worked) (LTIFR) = number of lost time injuries/total number of man-hours workedin the accounting period*1,000,000
Contingency ManagementIn 2025, the company conducted a total of 383 emergency drills,including fire safety, flood prevention, high-altitude falls, accidentreporting, and local coordination response, involving 16,100participants.During Occupational Safety Month and Fire Safety PromotionMonth, the company jointly organised fire emergency evacuationdrills with the local fire department and CTG Property Management(Beijing) Company Limited (中旅物业), with Mr. Chang Zhujun,General Manager, serving as overall commander of the drills.Ongoing construction projects organised a total of 47 emergencydrills, including fire safety, high-altitude falls, and typhoon andflood prevention. General contractors and participating units wereactively involved, effectively enhancing the collaborative emergencyresponse capabilities of on-site staff.Haikou International Duty-Free Shopping Complex jointlyconducted a large-scale comprehensive emergency drill with theHaikou Municipal Fire Rescue Corps, Xiuying District Fire Brigade,and Xinhai Coast Police Station. The deputy director of the HaikouMunicipal Fire Rescue Corps observed and guided the exercise on-site.Sanya International Duty-Free Shopping Complex jointly organiseda large-scale comprehensive emergency response drill with theSanya Municipal Fire Brigade. The drill simulated a sudden fire
outbreak in a sales shop, with an on-site emergency response,personnel evacuation, and medical assistance exercises.The Sanya Logistics Base, Haikou Comprehensive BondedWarehouse, Beijing Winter Olympics Warehouse, and variouslogistics centres each conducted fire safety emergency drills toenhance the fire awareness and emergency response capabilitiesof warehouse managers.
Innovation Management
The company piloted the construction of an AI monitoring systemat Sanya International Duty-Free Shopping Complex, coveringkey areas such as mall entrances and exits, parking lots, majorstores, elevators and escalators, corridors, and passageways.The system automatically detects abnormal situations such asillegal parking, crowd gatherings, smoke detection, smoking, andfighting, achieving a shift from “reactive supervision” to “proactiveprevention.”Intelligent safety experience centres have been established at thesites of ongoing construction projects. The Haikou InternationalDuty-Free Shopping Complex project uses an intelligent safetyhelmet management system, which enables real-time tracking ofpersonnel movements and voice warnings for hazardous areas,eliminating blind spots in surveillance. Sanya International Duty-Free Shopping Complex actively employs smart fire safety systemsand urban fire monitoring information platforms. The Sanya Taikooproject promotes the use of smart hazard management systemsand intelligent safety helmet management systems, achieving thestandardised and normalised management of project hazards.The company has also innovated its management model toimprove efficiency. Haikou International Duty-Free ShoppingComplex implements a safety grid management system, dividing it
into three levels of grids and assigning responsibilities to individuals,reducing the response time for emergencies to less than 3 minutes.CDF Investment Development has implemented a safety inspectionsystem involving “project company’s safety committee office -engineering department, and supervisory units - on-site engineers,”with checklists for each level of safety management to addressissues such as responsibility gaps and accumulated hazards.In 2025, the company continued to increase its investmentin workplace safety, spending a total of RMB 37.14 millionthroughout the year, providing a solid foundation for productionsafety. The company and all its subsidiaries did not experienceany production safety accidents, near-misses, or other serioussafety or environmental incidents that caused a significant socialimpact, with no casualties or major property losses. As a result, theproduction safety situation remained stable and positive.The company adheres to the principle of “people-oriented”, withthe protection of employees’ physical and mental health at its core.We continues deepening the construction of our occupationalhealth management system, steadily advancing various initiativesto ensure their effectiveness. Throughout the year, the companyhad no occupational disease incidents, effectively safeguarding theoccupational health rights of all employees.
Haikou International Duty-Free Shopping Complex jointlyconducts a large-scale comprehensive emergency drill with theHaikou Municipal Fire Rescue Corps
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Physical and Mental Health
Enhancing Employee WelfareThe company strictly complies with national and local requirementsby promptly and fully paying work-related injury insurance forall employees. In 2025, the total amount spent on work-relatedinjury insurance for employees was RMB 530,200, achieving100% coverage. The company continues to provide annual healthcheck-ups for all employees and offers comprehensive medicalinsurance for employees and their minors, including accidentinsurance, critical illness insurance, and medical insurance. Foremployees dispatched abroad or travelling abroad on officialbusiness, the company provides cross-border medical coverage,comprehensively alleviating the medical burden on employees.The company guarantees the precision of special protection, andprovides sufficient subsidies for high-temperature operations duringthe hot summer season. It encourages units to reduce outdoorwork during peak heat hours and provides sufficient heat-reliefsupplies and medication. The company also provided employeeswith safety helmets, safety belts, dust masks, and other personalprotective equipment that meet standards, and regularly conductstraining and supervision on proper usage.
The company organised various emergency drills related toheatstroke, sudden illnesses, and other occupational healthemergencies. In collaboration with the local Red Cross and firedepartment, it conducted first-aid training sessions coveringtopics such as cardiopulmonary resuscitation (CPR), automatedexternal defibrillator (AED) use, and fire-fighting practical exercises.After assessment, the trainees were issued relevant certificates,effectively improving their self-rescue and mutual rescue ability.
Caring for Mental HealthTo enhance care for the mental health of our employees andalleviate their work and life pressures, the company has launchedan EAP (Employee Assistance Programme) psychological supportplan. This includes a 24-hour hotline, the publication of mentalhealth journals, and collaboration with professional counsellinginstitutions to provide free psychological consultation services.These measures collectively build a robust mental health supportnetwork, enhancing employee well-being.
Strengthening Management Systems
The company continues to improve its occupational healthmanagement system, conducting training sessions on“Occupational Health Management Regulations” to guide allaffiliated enterprises in clearly defining the responsibilities of internaldepartments and personnel for occupational health management.This ensures responsibilities are effectively communicated andimplemented at all levels. Throughout the year, the companyensured adequate personnel and resource allocation to promote
strict adherence to occupational health management requirementsacross all levels of units. At the same time, the company hasintegrated occupational health management with productionsafety, forming a coordinated work pattern characterised by “unifieddeployment, collaborative advancement, and joint management,”significantly enhancing the standardisation and precision ofoccupational health management.
Enhancing Protective Measures
Focusing on key areas such as ongoing construction projects, duty-free complexes, and logistics centres, the company conductedmultiple rounds of targeted inspections and rectifications for criticaloccupational hazards such as noise, dust, high temperatures, andtoxic gases. In Sanya International Duty-Free Shopping Complexand Haikou International Duty-Free Shopping Complex, regularchecks are carried out on critical areas such as air conditioningand ventilation systems, electrical and mechanical equipmentoperation rooms, and diesel generator rooms. The company alsoorganised occupational health protection training for employees,improved protective facilities, and strengthened daily monitoring to
continuously optimise the working environment, thereby effectivelyreducing the risk of occupational diseases and reinforcingemployee health safeguards. For ongoing construction projects,regular inspections are conducted on the procurement, distribution,and use of personal protective equipment such as dust masks, gasmasks, and protective gear. Additionally, inspections are carriedout on the installation and maintenance of various occupationalhealth protection facilities and preventive measures in key workareas such as welding, painting, insulation, and non-destructivetesting, to continuously optimise the working environment.
Popularising Health KnowledgeFocusing on the 23rd promotion week for theLaw of the People'sRepublic of China on the Prevention and Control of OccupationalDiseasesfrom 25 April to 1 May 2025, with the theme “Caringfor the Mental Health of Workers,” the company organised multi-level and diverse educational activities. A total of 154 occupational
Haikou International Duty-Free Shopping Complex held a total of 17 sessions of occupational disease preventionknowledge seminars. It also played promotional videos in offices and staff canteens, set up exhibition boardswith occupational disease prevention information, established consultation desks for occupational healthpromotion, and distributed promotional booklets to educate employees about occupational disease prevention.Sanya International Duty-Free Shopping Complex hired occupational health experts to conduct online trainingfor all safety managers. The training systematically interprets the legal framework, management requirements,and preventive measures outlined in theLaw of the People’s Republic of China on the Prevention and Control ofOccupational Diseases. Additionally, Sanya International Duty-Free Shopping Complex promoted occupationaldisease awareness and hosted online knowledge quizzes through its WeChat public account, “Tax-ExemptionPioneer.”
Hainan DF invited professional lecturers from the Red Cross Society of China Hainan Branch to deliver apractical first aid and self-rescue seminar, further enhancing employees’ emergency response and self-rescueskills in handling emergency situations. Additionally, Hainan DF invited experts from the Guangdong ProvincialHospital of Traditional Chinese Medicine, Hainan Branch, to conduct a lecture on the prevention and controlof occupational diseases. Through on-site teaching and diagnosis, the experts helped employees betterunderstand the importance of preventing and controlling occupational diseases.
The Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 hotel project collaborated with thegeneral contractor to provide occupational disease prevention training to on-site personnel (including staff ofcontractors). Consultation desks were set up at the construction site, and promotional materials were distributedto disseminate knowledge about occupational disease prevention.
All stores have educated employees on occupational disease prevention laws and basic knowledge, put upposters, and distributed learning materials to create a strong atmosphere of occupational disease prevention.
health-themed lectures and training sessions were held across thecompany and its affiliated units, reaching an audience of 12,483people. These efforts further solidify the foundation of occupationalhealth work and significantly improve overall occupational healthstandards.
Sanya International Duty-Free Shopping Complexdistributes occupational health promotional materialsto both customers and employees
Hainan DF invites professional lecturers from the provincial RedCross Society to deliver lectures on first aid and self-rescueknowledge9697
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The company consistently operates the “China Duty-Free Academy” online training platform forall staff, effectively integrating internal and external instructional resources to deliver professionaland diversified curricula and continuously enrich course content. The “China Duty-Free Academy”online platform had achieved full staff coverage by the end of 2025. In 2025, courses for 20topics were introduced, and 13 live training sessions were held, resulting in a total of more than430,000 attendances and 8.2 average training hours completed per employee. We achieved alogin rate of 90% on this learning platform. Concurrently, to enhance learning engagement andpromptly disseminate educational resources, the “China Duty-Free Academy” official WeChataccount constantly releases course updates and knowledge-sharing content to employees.
Employee Training
Enhancing Our Comprehensive Training System toSupport Employee evelopment
Tiered Empowerment Training SystemThe company regards strategic development as the core goalof training, and is committed to establishing a robust talentdevelopment and training mechanism. Through a combination ofonline and offline trainings, and under the management principleof “grading and classification, and training for all employees”, weindependently provide various trainings to stimulate learning andcultivate talented professionals who will support the company’ssustainable growth.
We held training sessions for senior management, includingthe “Joint Study on the First Volume of Xi Jinping’s EconomicWritings”, “Expert-Led Seminars”, and “Leadership DevelopmentProgrammes”. These initiatives are designed to strengthen theirParty consciousness and political awareness. Additionally, weorganised them to attend specialised training sessions conductedby the Organisation Department of the CPC Central Committee, theParty School of the CPC Central Committee, and higher-level units,covering topics such as Party discipline, compliance management,innovation capabilities, and financial competency enhancement.With approximately 590 attendances recorded, these programmeshave effectively elevated senior managers’ political awareness,expanded their knowledge base, and broadened their strategicthinking capabilities.
for senior management
For middle management, we conducted a comprehensive trainingsession targeting middle and grassroots managers and newlyappointed managers, and centralised training for managementteams from our subsidiaries below a designated size. Theseinitiatives incorporate on-site visits to benchmark enterprises,research projects, and presentations, enabling participants to gaininsights into industry-leading business practices and strategies.Additionally, we required newly appointed managers to attend theonline training programmes conducted by their higher-level entities,achieving a cumulative participation of over 110 trainees.
For middle management
For junior managers, we conducted specialised trainingprogrammes on team building, store management, and othertopics, with a total of over 1,500 participants. We also organisedparticipation in the “High-Potential Talent Programme” and otherspecialised training programmes on SOE reform and brandbuilding, offered by China Business Executives Academy, Dalian(CBEAD), the State-owned Assets Supervision and AdministrationCommission (SASAC), and their higher-level units. These initiativesattracted approximately 851 participants in total, further enhancingthe comprehensive qualities and management capabilities of ourjunior managers.
For junior managers
For frontline business personnel, we conducted specialised trainingprogrammes on sales excellence and visual merchandising.These training programmes engaged over 80 participants fromour subsidiaries below a designated size, effectively strengtheningtheir overall competencies and practical skills. Category-specificknowledge training in cosmetics and fragrances, as well aswatches was conducted, engaging more than 60 frontline salesstaff. This initiative has further enhanced their brand awareness andmarketing capabilities. We also conducted mandatory professionalskills training courses on our “CTG DUTY-FREE Academy” onlineplatform, covering topics including customer service enhancement,sales techniques, and AI-enabled store traffic generation. Thesefrontline-focused training programmes engaged approximately8,500 participants, significantly strengthening their business skills.
For frontline business personnel
For fresh graduates, we have put in place an ongoing ManagementTrainee (MT) development programme. Aligned with our strategicgoals, the programme adopts a structured approach combiningjob rotation and research projects to accelerate the developmentof young talent. This ensures a qualified talent pipeline for key rolesand helps enhance our core competitiveness.
For fresh graduates
Key Training Programmes in 2025In 2025, we conducted over 1,000 key training programmes, engaging 160,000 participants and delivering 788,500 total training hours,resulting in an average of 55 training hours per employee.In 2025, we delivered the following key training programmes at the corporate level:
April
In April, we conducted a specialised training programme, designed to further enhance ourorganisational and personnel-related work as well as the competencies and capabilities ofrelevant cadres. Over 240 participants from the Organisation and Personnel line attendedthe training. The training programme focused on five themes: Ethics and IntegrityEducation, Key Messages from Higher-Level Meetings, Advanced Concepts, PracticalExperience Sharing, and Collaborative Problem-Solving on Key Challenges. With thisfive-pillar approach, we provided insights into how we can think differently and work moreefficiently when conducting organisational and personnel-related work.
May to June
From May to June, we carried out a capacity-building programme for cadres from theParty Committee across our affiliates in Hainan. The training engaged over 70 participants,focusing on addressing key challenges and bottlenecks in business operations inHainan. Through an integrated approach combining theory with practice, instruction withinteractive sessions, and learning with application, the programme targeted three corecompetencies: political acumen, operational proficiency, and managerial excellence. Thisinitiative has effectively enhanced the competencies and capabilities of our managerialpersonnel in our operations in Hainan.AugustIn August, in accordance with the requirements of the Group, we conducted routineonboarding training for new employees. We invited guests from senior leadership todeliver key speeches to open the training. Over 50 participants attended this centralisedtraining session. We adopted a “post-training evaluation” model, ensuring all newemployees receive online learning modules and examination schedules within three daysof joining, achieving 100% coverage. Our onboarding training has significantly enhancedour new employees’ sense of identity with the industry and the company and their senseof belonging while instilling our shared mission. It has also helped new staff adapt to ourculture and understand their career development pathways to grow with the company.
October
In October, we carried out the 2025 Annual Management Training Programme. Weadopted a structured approach combining on-site visits to benchmark enterprises,centralised training sessions, and specific workshops. The training programme engagedover 40 participants and focused on strengthening ethics and integrity education, gainingexperience from benchmark enterprises, enhancing strategic capabilities with advancedconcepts, and accelerating outcomes through strategic initiative workshops. With thisfour-pillar approach, we have provided insights into how we can think differently and workmore efficiently when conducting management work.
December
In , we conducted an in-person capacity-building programme for management personnelacross our affiliates. The training was structured around five key pillars: on-site visitsto benchmark enterprises, ethics and integrity education, high-performance team-driven customer service, operational capability enhancement, and innovation-drivenempowerment. Participants gained insights into industry-leading business practicesand strategies. The programme also helped strengthen their internal control awareness,equip them with advanced management principles and innovative business models, andultimately drive the efficient and sustainable operations of the affiliates.
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In 2025, we actively promoted technological innovation andempowerment through job-specific training programmes, aimedat enhancing employee capabilities in cutting-edge fields such asartificial intelligence (AI) and big data analytics. These initiatives aredesigned to align with our transformation in the digital economyera, thereby strengthening our core competitiveness.We sent senior and middle-level management personnel toexternal training programmes, including the “Training Programmeon Artificial Intelligence for Central State-Owned Enterprises(Leadership Programme for Technology Talent)” and the “OnlineTraining Session on Enhancing Innovation Capabilities”. Thesetechnology innovation-themed training initiatives have furtherstrengthened their digital and intelligent mindset and innovationcapabilities.
Training Programmes on AI
9,600
participantsEngaged over
Delivered live lectures
sessions
Photo from our second training session under the seriesPhoto from our first training session under the series
For frontline business staff, we launched “AI-Enabled Store TrafficGeneration and Private Domain Sales”, as well as other trainingcourses focused on the practical application of AI tools in storeoperations. Over 670 employees have completed these courses,directly contributing to improved operational efficiency in ourphysical stores.For all employees, we held a training series on AI-enabled smartoffice skills and practical tips. We adopted an instructor-ledapproach for this training series and live-streamed the trainingsessions. This training series focused on addressing the applicationof common AI tools to typical office scenarios, including officialdocument writing, PPT creation, and data analysis. The seriescombined relevant theories with hands-on practices, with theaim of building basic office skills to more advanced data analyticscapabilities, while engaging over 1,200 participants in 2025.
We have recorded and uploaded every classroom training sessionto “CTG DUTY-FREE Academy” online platform, which enablesall employees to visit and access the content any time they want.This training series is designed to help develop intelligent officepractices to improve work quality and efficiency. Furthermore,other specialised training courses are also available on the “CTGDUTY-FREE Academy” platform, including the “Application Guidefor DeepSeek and the Practical Use Tips for DeepSeek”. Thesetraining courses have attracted over 2,300 participants to date,effectively helping innovate how we work.
In 2025, the company cultivated internal resources byestablishing a lecturer team, which delivered a lecture seriescalled “Excellent Teachers and Excellent Courses”. The teamdelivered 12 live lectures, which drew 9,600 participants. This“training-through-practice” approach strengthened internal trainers’comprehensive abilities. The company attaches importance to thetraining of young talents and continues to carry out managementtrainee training programmes.
The total expenditure of employee training and developmentMetricsTier 2 metricsUnit20252024The total expenditure of employeetraining and development
/CNYCNY 10.53 millionCNY 9.54 millionAverage cost of training and development
per full-time employee
/CNY/Person726.87595.55Expenditure of employee training anddevelopment by gender
MaleCNY727.05/FemaleCNY726.73/Expenditure of employee training anddevelopment by category
Senior managerial roles
CNY0
/Middle managerial rolesCNY10,372.55/
General employeesCNY658.83/
Expenditure of employee training and
development by age group
50-60CNY726.35/40-49CNY726.95/30-39CNY727.51/22-29CNY726.6/
Expenditure of employee training anddevelopment by geographical region
Chinese MainlandCNY751.2/Chinese Hong Kong SAR,
Macau SAR and
Taiwan region
CNY482.71/OverseasCNY483.71/
Percentage of employees trained/%100100Percentage of employees trained by gender
Male%100100Female%100100
Average training hours completed per
employee by category
Senior managerial roles%100100Middle managerial roles%100100
General employees%100100
Total training hours/hour788,500633,700Average training hours completed
per employee
/hour55.0740.03
Average training hours completed
per employee by gender
Malehour53.4226.79Femalehour56.7136.58
Average training hours completed per
employee by category
Senior managerial roles
hour138.22142.45Middle managerial roleshour114.2375.05
General employeeshour53.7434.90
Average training hours completed per
employee by region
Chinese Mainlandhour57.8141.76Chinese Hong Kong SAR,Macau SAR, Taiwan region
and overseas
hour20.7913.29Overseashour20.1014.27
3 Our management’s training is coordinated at the group level, and the group also covers their training cost.4 As far as the training courses organised by the company are concerned, there is no significant difference for employees at differentcategories; however, the senior management participated in more intense trainings subject to the requirement on the training hours inthe Regulations on the Education and Training of Cadres issued by the CPC Central Committee.
In 2025, we conducted trainings as follows:
Professional DevelopmentBased on employees’ career development needs, we continuously improve the talent management system and consolidate the foundationof talent management to offer smooth career development channels to assist employees in achieving their dreams and living up to their fullpotential.
In 2025, the company cultivated internal resources by establishing a lecturerteam, which delivered a lecture series called “Excellent Teachers and ExcellentCourses”. The team delivered 12 live lectures, which drew 9,600 participants.This “training-through-practice” approach strengthened internal trainers’comprehensive abilities. The company attaches importance to the trainingof young talents and continues to carry out management trainee trainingprogrammes.
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Our skills certification examination site
In 2025, the company is committed to cultivating vocationaltalent. In terms of professional title reviews, we proactivelyorganise employees to participate in professional title evaluationsoffered by both the Group and external professional institutionsacross disciplines such as engineering, accounting, economics,auditing, archival science, and translation. The number ofemployees successfully obtaining various professional titleshas steadily increased, which plays a key role in continuouslystrengthening our talent pool, injecting robust impetus for therealisation of our strategic objectives. In terms of vocationalskill level certification, we conducted autonomous certificationfor the “Merchandise Sales Associate” vocational categoryat the subsidiary level through centralised coordination andguidance. A total of 687 employees passed the certification (apass rate of 93%). Leveraging autonomous certification as a keydriver, we have developed an effective integrated internal talentdevelopment and certification system for skilled personnel,which further broadens their career advancement pathways. Indoing so, we are laying a solid foundation for the construction ofour talent pipeline.
Professional DevelopmentBased on employees’ career development needs, we continuouslyimprove the talent management system and consolidatethe foundation of talent management to offer smooth careerdevelopment channels to assist employees in achieving theirdreams and living up to their full potential.According to the actual circumstances of the company, we haveestablished a ranking system covering all grades and types ofpositions based on a hierarchical management system and jobqualification criteria. The company determines the function, leveland rank of employees according to their abilities, performance andqualifications. We allow two-way movement between managementpositions and professional positions and use a ranking system thatreaches every level and grades horizontally and vertically across
our headquarters and subsidiaries. We have built multiple careerpaths – including through annual rank promotions, promotionsbased on professional reviews, open recruitment of executives,and an internal system for regular talent exchange – to alignthe development of each employee’s career with the overalldevelopment of the company’s talent.We adopted the Management by Objectives (MBO), KeyPerformance Indicators (KPI) and 360°Feedback for integratedemployee performance management. Performance evaluationsare conducted at least once a year. The assessment includesboth work performance and professional capability, and theperformance assessment results are determined through theranking of the overall scores of employees responsible for the sametasks, covering 100% of the employees.
Motivating Employees to Create ValueAligned with our corporate reform, development, and operationalpriorities, we have established platforms to support employeegrowth and talent cultivation, with the aim of maximising therole of employees as the core workforce. In 2025, we deepenedreforms in the building of our industrial workforce by drafting the“Comprehensive Reform Plan for Building CTG DUTY FREE’sIndustrial Workforce”. We have integrated workforce-related
reforms into all aspects of our business operations. In doing so, weare reinforcing our employees’ commitment in aligning with Partyguidance and positioning our industrial workforce as a driving forcein the nation’s tourism development. We are also continuing tostreamline career advancement channels for industrial workers.
We hosted our first “CTG Duty-FreeWorkmanship” skills competition on28 September 2025. The competitioncategories covered key skills forkey roles from sales and customerservices. 80 participants from our 17subsidiaries advanced to the finals,with 5 of them finally receiving the titleof “Young Experts at Their Posts”. Thecompetition served as a reminder to ouremployees of the importance of trainingand practising their professional skills,and motivated them to apply effectivesolutions in their work to improveproductivity and efficiency.
Our First “CTG Duty-Free Workmanship” Skills Competition
Our Coach Team at Sanya Downtown Duty-Free Storereceived the “National Women’s Civilised Posts” awardfrom the All-China Women’s Federation
Our Customer Service Department at Haikou International Duty-Free Shopping Complexreceived the “Workers’ Pioneer” award from the Hainan Federation of Trade Unions
In May 2025, we held our first “CTGDUTY-FREE Story” sharing session. Threeoutstanding female model workers wereinvited to share their inspirational storiesat CTG DUTY-FREE. Through the sharingsession, we further encouraged the spirit ofmodel workers, and promoted the value ofwork and the pursuit of fine workmanship.Senior management also attended thesharing session in person, which addedanother level of motivation and inspirationfor our employees.
To strengthen the impact of “model workers”, we continue toidentify and recognise outstanding individuals and teams that leadby example. In 2025, we have one individual awarded with the“National March 8 Red-Banner Pacesetter”, one team awarded
with the “National Women’s Civilised Posts”, one individualawarded with the “National Model Worker”, and one individualawarded with the “Hainan Provincial May 1st Labour Medal,” oneawarded with team the “Hainan Provincial Workers’ Pioneer”, andname two individuals “Model Worker at the group”.Case study
Case study
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Planet
Environmental Compliance ManagementAddressing Climate Change to Protect theEnvironmentGreen and Low-Carbon Operations for aBetter Life
CTG DUTY-FREE cares for the planet based onits business features and in light of environmentalcharacteristics of its main business locations. We areactively responding to UN SDGs 2, 6, 7, 9, 11, 12,13, 14 and 15 by engaging in multiple environmentalprotection initiatives, such as water resourcemanagement, active responses to climate change,green and low-carbon operations, and promote acircular economy.
Planet
Planet
Environmental Compliance Management
Environmental ComplianceIn accordance with the Environmental Protection Law, the Lawon Prevention and Control of Atmospheric Pollution, the Law onPrevention and Control of Water Pollution, the Law on Preventionand Control of Environmental Pollution Caused by Solid Wastes,the Energy Conservation Law of the People’s Republic of Chinaand other Chinese laws and regulations, as well as the Measuresfor the Supervision and Administration of Energy Conservationand Ecological Environmental Protection at Chinese Central State-owned Enterprises, the company has formulated the “AdministrativeMeasures on Energy Conservation and Ecological EnvironmentalProtection.In 2025, the company developed the “Implementation Rulesfor Safety, Environmental Protection and Occupational Health
The company continues to carry out the standardisationconstruction of energy conservation and environmental protection.During the reporting period, CDFI passed its environmentalmanagement system (ISO14001) audit, promoting the optimisationof the business environment across Hong Kong and Macau
Preserving BiodiversityThe Ministry of Ecology and Environment released China NationalBiodiversity Conservation Strategy and Action Plan (2023-2030),which defines China’s biodiversity conservation strategy in thenew era. The company concerns about and protects biodiversitywith action. We actively leverage our advantages to engage morepeople to the cause of biodiversity protection.
Toner
kg
Seleniumdrum
kg
Inkribbon
kg
Environmental management system (ISO14001)
certificate of CDFI
Environmental management system (ISO14001)
certificate of Sanya International Duty-Free
Shopping Complex
Backfills topsoil dug out during thedevelopment and construction processas environmental compensation.
Prefers local plants for landscaping toreduce the impact on the environmentand ecology.
Emissions ManagementThe company’s categories of emissions include greenhouse gas(GHG) emissions, exhaust gases, wastewater, and solid waste.In terms of emissions management, the company attachesimportance to controlling exhaust gases and GHG emissions, andtakes up emissions reduction measures to improve air quality. Forwastewater and soil management, the company is committed toprotecting water and soil resources in accordance with relevantstandards by taking appropriate treatment measures to meet therequirements for discharged wastewater.For solid waste management, the company is strongly againstdumping, stacking, and discharge of waste without permission, andperforms its duties in terms of source reduction and classification ofsolid waste as required by law. It has established compliant wastestorage processes and works with qualified third parties for wastedisposal under the laws and regulations to prevent environmentalcontamination. As for pollutant emissions, it has establishedstandardised pre-treatment facilities such as sedimentation tanks,septic tanks and oil separators, which are subject to regularinspection and maintenance to ensure the compliant emissions.For recyclable waste such as cartons, subsidiaries implementedthe “Waste Cardboard Management Regulations” to standardisedisposal. CDFI stores and warehouses established recyclingsystems for cardboard and packaging materials to boost paperreuse.We actively promote waste classification. For example, both theSanya International Duty-Free Shopping Complex and the Haikou
International Duty-Free Shopping Complex are equipped withdedicated household waste rooms and kitchen waste refrigeratorsto support this initiative. Caterers within these complexes arealso required to classify kitchen garbage in strict accordancewith relevant regulations, with cleaning staff arranged to guidecustomers on household waste classification. We have also signedwaste recycling and disposal agreements with qualified professionalthird parties to ensure the recycling and safe disposal of solidwaste. In 2025, the Haikou International Duty-Free ShoppingComplex conducted waste classification training to ensure its front-line staff (especially newly hired employees), and service providersoperating within the complex understand the classification anddisposal requirements of different types of waste and reduction ofthe use of disposable items.In terms of waste reduction, cdf Cambodia, a subsidiary of CDFI,began replacing paper price tags with e-tags in July 2024 to reduceconsumption of paper-based products. The Hong Kong DowntownStore introduced P-Life eco-material shopping bags (self-degrading)to comply with new regulations on disposable plastic released bythe Hong Kong government that were effective from 22 April. Ourone-person stores in Macao promoted paperless operations andeco-paper bags (no plastic). Meanwhile, the Shenzhen SupplyChain Company eliminated VIP-specific packaging to curb theexcess use of packaging materials.The quantity of waste generated by the company in 2025 was asfollows:
For example, Sanya is located within a tropical marine andmonsoon climate zone with high temperatures and a relativelyhigh humidity all the year round. This makes it home to diversifiedbiological species, and helps with the shaping of its healthy,benign, and sustainable ecosystem. During the developmentand construction of the Sanya International Duty-Free ShoppingComplex Project, we paid attention to the protection of thesurrounding ecological environment and biodiversity, and adoptedvarious green construction technical measures to minimisethe impact of the Project on the ecological environment andbiodiversity, such as enclosure, noise control, dust control, etc.The Sanya International Duty-Free Shopping Complex Phase 1 Plot2 Hotel Project, located within a coastal woodland renovation areaoutside the ecological conservation red lines, prioritises enhancingthe windbreak function of trees while strengthening the protectionof tree species diversity and overall biodiversity within thewoodland. Building on the existing single-species coastal protective
forest of Casuarina equisetifolia, the project has introduced avariety of coastal-adapted species, such as Hainan coconut,Terminalia macroptera, red pandanus, and beach cabbage.During site selection and layout planning for the HaikouInternational Duty-Free Shopping Complex Project, the companyidentified and assessed ecologically sensitive areas in order toavoid locating business activities near zones with rich biodiversity,fragile ecosystems, or significant ecological functions. The projectactively promotes the efficient utilisation of site space for greeninginitiatives. At the Haikou International Duty-Free Shopping Complex(Plots 1 and 4), the green space ratio has been increased to30% and 35%, respectively. Concurrently, on-site rainwaterretention facilities with capacities of 200m? and 390m? have beenconstructed to optimise the microclimate, enrich local habitats forbiodiversity, and achieve a synergistic improvement in ecologicalbenefits and site functionality.
Assessment” and the “Implementation Rules for Accountabilityin Safety, Environmental Protection and Occupational HealthIncidents”. It also revised its emergency response plan forunexpected environmental incidents and organised a practicaldrill. Over 120 employees participated in a full-process emergencyresponse simulation of a chemical leakage, thereby enhancingthe company’s capabilities in environmental risk prevention andcontrol.During the reporting period, the company complied with allapplicable laws and regulations concerning energy conservationand environmental protection, with no significant regulatoryviolations or major incidents recorded, nor any cases where it waspunished or criticised by environmental protection authorities.
stores. In October 2025, Sanya International Duty-Free ShoppingComplex obtained ISO14001 environmental management systemcertification, driving waste reduction, energy efficiency, and eco-standards.
The Company takes biodiversity conservation into considerationin the development and construction of the project and takes thefollowing main measures to minimise the impact of its operationson biodiversity,
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中免國際有限公司:
我中心于2024年12月03日至2024年12月06日对贵方进行了年度监督审核，证实贵方的环境管理体系持续有效运行，经评定决定，准予继续使用证书号为00123E35012R0M/4403认证证书和相应编号的IQNet证书。证书所载的名称、地址、认证范围、发证日期和有效日期等均无变化。 下次例行审核宜在2025年11月17日之前实施，最晚应在2025年12月31日之前完成，否则可能导致证书暂停。
感谢贵方对我中心工作的一贯支持与配合，我们将一如既往的为您提供增值的认证服务。特此通知。
2024年12月31日
China Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance Report106107
Planet
Energy and Resource Usage
The company organised activities for Energy Conservation Awareness Week and NationalLow-Carbon Day
We focus on improving the management of energy and waterconservation according to the optimal operating strategy, including:
? The temperature of air conditioners in of?ces and dormitories shallbe no lower than 26°C in summer, shall be turned off 20 minutesbefore leaving, and shall be powered off if left unattended for aperiod of time.? Printers, computers, fans, water heaters, lighting and other powersupplies shall be turned off before leaving the place of work (and beshifted to standby mode during non-of?ce hours).
? Post energy-saving reminders near light switches and printers,encouraging employees to unplug devices after work to reducestandby power consumption.? We have established sound electricity conservation managementsystems and equipment operation procedures to reduce unnecessaryof?ce electricity equipment and non-of?ce electricity consumption.? We have regular maintenance and energy audits for HVAC systems,pumps, fans, elevators, and lighting, etc., to reduce energyconsumption.
? We have installed induction water faucets in restrooms for watersaving purposes.? Develop good habits and turn off the faucet after water use to prevent
water from running to waste.? Report spills, drips and leaks to the Engineering and PropertyManagement Department in a timely manner for repair.
? Standardise paper usage requirements in office, promote double-sidedprinting and a paperless office.? We adopt e-tag and e-billboard to reduce paper usage.? We adopt an office supplies procurement system to bring aboutonline integrated procurement. This system helps centrally controlprocurement quantities and amounts, so as to improve procurementefficiency, cut expenses, and reduce waste.
? We strictly implement the Measures on Administration of Fuel Cards
and Vehicles, and resolutely prohibit the misuse of company vehicles
and excessive refuelling.? We develop fuel-ef?cient driving trainings for ?eet operators, strictly
carry out daily maintenance, and smartly select driving routes.Saving O?ce Supplies
Saving WaterSaving Electricity
Saving Gasoline
Risks/opportunities
ImpactResponse
Unlock theenergy-savingpotential ofgreen buildings
Reduce operationalcosts, enhanceenergy efficiency, andcut greenhouse gasemissions
Develop and promote sustainable building materials and technologies – such as natural daylightingsystems and smart temperature controls – on an ongoing basis. Refer to the “Green and Low-Carbon Operations for a Better Life” section for details.
Actively utiliserenewable energyto diversify andclean the energysupply
Reduce pollutantand greenhouse gasemissions to improve airquality
Accelerate the construction of new energy infrastructure, such as rooftop solar PV and PV carportinstallations. See the “Green and Low-Carbon Operations for a Better Life” section for details.
Foster energy-saving awarenessamong all staff toestablish a “Greencdf” image
Maintain a positivecorporate image to earngreater customer favour
Strengthen ideological guidance by organising affiliated enterprises to conduct in-depth study ofPresident Xi Jinping’s important speeches and directives on carbon peaking and carbon neutrality.This helps firmly establish and implement the new development philosophy and ingrain the greenand low-carbon transformation.Release the “Green and Low-Carbon Proposals” to encourage employees to lead the way incarrying out low-carbon and energy-saving practices and in conveying green messages.Put up signs around offices to remind employees to turn off the lights and save water and organisingpublicity campaigns and training sessions on energy conservation and environmental protection.The Sanya International Duty-Free Shopping Complex launched a “Golden Ideas for EnergyConservation” campaign, organised energy management training, invited experts to explain energy-saving technologies, and conducted a public welfare activity titled “State-Owned EnterpriseOpenness for Ecological Protection.” These initiatives helped drive the concept of environmentalprotection, promoting its widespread recognition.
Strategy
The company has issued the “Administrative Measures on EnergyConservation and Ecological Environmental Protection”, and hasset up the “Energy Conservation and Environmental ProtectionLeadership Group” led by heads of the company. These haveput forward management requirements regarding procurement,production & operations, green buildings, green logistics, thepromotion of green consumption and the implementation of a greenoffice and a low carbon lifestyle. The company has also improvedthe rewards and punishment mechanism for energy conservationand environmental protection, and organised the publicity,implementation, training and assessment of various systemsand action plans, so as to solidly promote the systematisation,institutionalisation and standardisation of energy conservation andenvironmental protection work.
The company has reinforced its accountability mechanisms bysigning 86 “Work Safety, Energy Conservation, and EnvironmentalProtection Target Responsibility Agreements” with variousdepartments and affiliated enterprises. Through its OA onlineplatform, headquarters has also achieved full coverage by signingsafety and environmental protection responsibility agreementswith all employees. Additionally, CDF Investment Developmenthas signed responsibility agreements with the general contractor,subcontractors, and other relevant parties, clearly assigningresponsibilities to specific roles to mobilise personnel engagementin energy conservation and environmental protection efforts.
Governance
From 23 June to 29 June 2025, the company organised anEnergy Conservation Awareness Week themed “EnhancingEnergy Efficiency and Leading with Innovation” and a NationalLow-Carbon Day themed “Pioneering the Path to CarbonReduction and Greening the Future.” Subsidiaries were mobilisedto watch thematic promotional videos and issue energy-savingand carbon reduction initiatives, fostering a vibrant atmosphere.During the events, they displayed 200 posters, hung 100banners, and distributed 300 brochures across constructionsites. Furthermore, the Haikou International Duty-Free Shopping
Complex and the Sanya International Duty-Free ShoppingComplex used digital screens to show promotional videosand put up themed posters to enhance awareness of energyconservation. Retail stores at the airports and border crossingsset up information boards, where staff shared low-carbon traveltips with travellers. Additionally, the company issued an energy-saving and carbon reduction initiative via its Wechat officialaccount and held themed activities aligned with Tree Planting Dayand World Environment Day.
Case study
108109
Planet
Energy and Resource ConsumptionThe company mainly consumes electricity, natural gas, diesel, gasoline, and water during its daily operations. Our energy consumption,resource usage
, and intensity in 2025 are shown in the table below:
MetricsUnit20252024ElectricityElectricity
MWhMWh81,441.3981,441.3985,810.2885,810.28
Natural GasNatural Gasmm
651,573651,573562,061562,061
DieselDieselLitreLitre132,858132,858143,182143,182
GasolineGasoline
LitreLitre152,528152,528210,526210,526
Comprehensive energy consumptionComprehensive energy consumptiontcetce11,20611,20611,61711,617Comprehensive energy intensityComprehensive energy intensitytce/mtce/m
0.01560.01560.01620.0162
Water consumptionWater consumptionmm
565,780565,780537,987537,987
Water consumption intensityWater consumption intensitymm
/m/m
0.790.790.750.75
5 The statistic scope of natural gas, electricity, diesel, gasoline includes the building of company’s headquarters, Haikou International
Duty-Free Shopping Complex, Sanya International Duty-Free Shopping Complex, Sanya logistics base, Sunrise Shanghai and SunriseChina, which have already covered the majority of the company’s operating area and revenue. The company will gradually expand thestatistical scope in the following years.
All duty-free complexes and stores manage energy and water consumption through optimal operational strategies:
Before the store opens, no lights more than those required forwork routines shall be switched on; electricity equipment tomeet operating needs shall only be turned on 10 minutes beforeopening; all electricity equipment and lights shall be turned offafter the closure.The Sanya Downtown Store proactively launched the“Green Mall, Low-Carbon Lifestyle” initiative to reduce energyconsumption. It adjusts lighting and air conditioning strategiesbased on real-time brightness and temperature levels within thecomplex. Water usage for landscaping and cooling towers iscarefully managed. Timed sprinkler systems are used for gardenirrigation to avoid high-volume hose watering. For water features,staff periodically clean sludge from the bottom manually and addalgaecide (a chemical treatment) to extend the intervals betweenwater changes.The Sanya International Duty-Free Shopping Compleximplemented significant energy-saving upgrades across itsfacilities. In Zone C, an intelligent central air conditioning controlsystem was installed. This system monitors environmental datasuch as temperature and foot traffic in real-time, automaticallyadjusting operating parameters. This has resulted in an 8%reduction in average daily energy consumption. Meanwhile,renovations to the chiller plant systems in Zones A and Bachieved annual energy savings of 12%. Separately, theinstallation of 200 LED lights in public spaces reduced energyconsumption in those areas by 20%.
The Haikou International Duty-Free Shopping Complex hascompleted lighting circuit upgrades for its 131 duty-free stores,converting the systems to independent circuits. Pre-businesshours now activate only essential lighting, with non-essentialelectrical equipment powered down to minimise energy use.Radar motion sensors have been installed in back-of-housespaces and garages to automate lighting control. Flood lightingschedules are dynamically adjusted to align with operationalneeds and seasonal variations, while decorative lightingusage is strictly regulated. Additionally, air conditioning unitsoperate based on real-time temperature readings, with regularmeasurements conducted for optimisation. During transitionalseasons, the fresh air system activates to provide supplementaryclimate control. Water feature operating hours are activelymonitored and adjusted to ensure efficiency.
Hainan DF’s Riyue Plaza Duty-Free Shop has carried outthe following energy-saving measures: the implementation of acentralised control system for multi-split air conditioning units;enhanced equipment maintenance to improve operationalefficiency; and optimised lighting system configurations withstrictly electricity consumption controls. Additionally, all airportstores ensure non-essential lighting is turned off promptly duringflight intervals.
Yunjie Island adopts a “peak shaving and valley filling” electricity
consumption model that aligns with its night-time economicactivities, forming a distinctive energy-saving pattern.
The company’s routinely monitors all facets of energy utilisation,collecting and analysing stage-specific usage data while identifyingand assessing associated risks. The team also maintainscommunication with environmental protection authorities at alllevels to stay updated with the latest relevant information.
We regularly conduct comprehensive risk assessments of ourexisting energy utilisation processes. Leveraging historical dataand experience, we quantify identified risk factors, their probabilityof occurrence, and potential losses to determine risk severityand urgency. These results then inform our energy utilisationmanagement strategies.
Identification
ManagementAssessment and
prioritisationMonitoringWe continuously collect energy usage data from all stages ofconsumption and implement BIM systems/energy managementplatforms where feasible, thereby enhancing the efficiency ofenergy usage statistical analysis. By the end of the reportingperiod, Sanya International Duty-Free Shopping Complex, HaikouInternational Duty-Free Shopping Complex had both establishedthese systems. The company regularly reviews progress on energyconservation initiatives, identifies potential areas for improvement,and formulates plans for the upcoming year’s energy-saving work.
The company reviews all aspects of energy use, standardisesoperational processes, mitigates associated risks, and implementsmultiple measures to reduce consumption.
Management of impacts, risks and opportunities
Metrics and Targets
Promotion of building a zero-carbon island by Boao Duty-Free StoreThe Boao Duty-Free Store actively supports Dongyu Island’sinitiative to build a zero-carbon island and promote green travel.During the 2025 Boao Forum for Asia, the store worked closelywith Dongyu Island to construct a “zero-carbon area” outside
its premises. Through activities like accumulating carbon creditsredeemable for rewards, the store encourages sustainablepractices.
Case study
China Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance Report110111
Planet
Addressing Climate Change to Protect the Environment
Climate change is having a broad and far-reaching impact on theworld, CTG DUTY-FREE analyses the potential challenges thatclimate change may bring, actively deploys mitigation and adaptionmeasures, and explores opportunities. This section describes our
Physical riskcategory
Climate risk type
Risk impact of current
scenario
Risk impact under the
1.5°C
– scenario
Risk impact under the 3°C
– scenario (hereinafter“high emissions scenario”)
Chronic risks
Extreme heatExtreme highExtreme highExtreme highExtreme coldLowLowLowPrecipitation (heavy rain)HighHighHighExtreme snowfallExtreme lowExtreme lowExtreme lowExtreme windExtreme lowExtreme lowExtreme low
Acute risks
Coastal floodingHighMediumMediumFluvial floodingMediumMediumMediumTyphoonsExtreme highExtreme highExtreme highWildfireHighHighHighRiver low flowExtreme lowExtreme lowExtreme low
Current scenario? Physical risk output of risk exposurebased on 2021 benchmark
1.5°C – Net-zero world scenario
*? RCP 1.9? IEA Net-Zero by 2050? NGFS Net-Zero 2050? SSP1 – Sustainability
3°C – Greenhouse world scenario
**
* 1.5-°C NGFS orderly “Net-Zero 2050” scenario: the adoption of the net zero emissions by 2050 scenario, that is, the global energy sector achieving net zero CO2 emissions by
2050 is consistent with limiting the global temperature rise to 1.5°C with no temperature overshoot (with a 50% probability).** 3-°C NGFS Nationally Determined Contributions “NDC” scenario: taking into consideration all pledged but not yet implemented policy measures. The estimated physical riskswould be slightly lower than in the Current Scenario case, but still well above the Paris Agreement targets.
? RCP 6.0? IEA Stated Policies Scenarios (STEPS)? NGFS NDC scenarioShared Socio-Economic Pathway –Fossil-fuelled development
In view of the characteristics of the tourism retail industry and thecompany’s medium to long-term business planning, we continueto focus on and monitor business operations and risk managementto identify, quantify and manage potential threats and uncertaintiescaused by global climate change. We then analyse the potentialimpact of these risks on the company’s own operations and theentire industry chain, from upstream to downstream processes,with the aim of safeguarding the steady development of thebusiness.We referred to the TCFD framework to identify the physical risksrelated to climate change (hereinafter “physical risks”) and the
transition risks related to low-carbon economic transformation(hereinafter “transition risks”). For physical risks, we use a riskforecasting tool based on climate change scenarios (providedby MSCI) to assess the potential business and financial impactssubject to the geographical location of the company’s assets,their exposure and their hazard patterns. On this basis, we havedeveloped systematic response strategies in site selection,emergency management, supply chain and inventory optimisation,and online business development. We then integrated thesestrategies into the company’s daily business management, toenhance its organisational resilience.
Strategy
We have established an ESG governance structure, which coversthe all-round governance on ESG matters, including addressingclimate change.The Board of Directors of the company is the highest decision-making authority to address climate change, and the Strategyand Sustainability Committee of the Board of Directors is thecommittee assuming the primary responsibility. We establishedthe ESG Leadership Group, and it is headed by the Chairmanof the company; the deputy head is the General Manager; andits members include heads of departments. ESG governancestructure, strategy and the terms of reference of the Strategyand Sustainability Committee and the ESG Leadership Group,please refer to “Robust Governance System for Long-term StableOperations”. The Strategy and Sustainability Committee holdsmeeting once a year, and the ESG Leadership Group holdsregular meetings. By integrating ESG matters, including responsesto climate change, with daily operations and management, theconcerned departments and subsidiaries perform their specific
responsibilities within their terms of reference. In addition, thecompany has also established the “Action Plan for Carbon Peakingand Carbon Neutrality” and set up a “Leadership Group on CarbonPeaking and Carbon Neutrality”.We have made it clear that the Board of Directors has toincorporate climate considerations into its review and instructionson strategies, important action plans, risk management policies,annual budgets and business plans, its formulation of performancegoals for organisations, its monitoring on implementation, and itssupervision on significant capital expenditure, acquisitions anddivestitures. The ESG Leadership Group and the “LeadershipGroup on Carbon Peaking and Carbon Neutrality” provide supportfor this.We steadily carry out the current status reviews, strategyformulation, risk management, and identification and tracking ofmetrics and targets for risks and opportunities arising from climatechange that the company may be exposed to or can embrace.
Governance
Based on the analysis of chronic and acute physical risks underdifferent climate scenarios, we comprehensively assess thepotential impact of physical risks on corporate strategy, businessoperations and financial conditions under different scenarios. Wethen prioritise climate risks, optimise resource allocation, andimprove risk management.
Scenario analysis
We selected the current scenario, the relatively orderly pathwaytoward 1.5°C set by the Network for Greening the Financial System(NGFS) (i.e., reaching net zero around 2050), alongside the climatescenario of 3°C Nationally Determined Contributions (NDCs) set bythe NGFS (i.e., global warming of 3°C scenario around 2050) forscenario analysis.
efforts and future plans for addressing climate change accordingto the framework of “Governance, Strategy, Impact, risk andopportunity management, Metrics and targets”.
Subject to the assessment of the geographical location of thecompany’s assets, exposure and severity, the company’s overallbusiness was exposed to extremely low to moderate risk underall climate scenarios, including extreme cold, extreme snowfall,extreme wind, fluvial flooding, and river low flow. We identifiedphysical risks with high or higher risk levels, such as extremeheat, precipitation, coastal flooding, typhoons and wildfires, andfurther elaborated on the targeted description in terms of impact,assessment, impact cycle, scope of impact, potential financial
impact, strategies, mitigation and adaptation measures, andcomprehensively analysed the related risks, including direct loss,operation interruption, customer loss, and the impact of supplychain disruption on all links of the company’s business value chain.We actively promote the climate adaptability design of buildings,creation for a more resilient supply chain, online and offlinebusiness integration and other measures, improve the company’sability to address climate risks, enhance the durability and stabilityof business operations, and continue to provide customers withquality goods and services.
112113
Planet
Physical riskcategory
Climate riskcategory
ImpactAssessmentImpact cycle
Scope ofimpact
Potentialfinancial
impact
Strategies, mitigation and adaptation measure
Chronicrisks
Extreme
heat
High temperatures will increase demand for water supply andcooling in summer, resulting in increased energy consumptionand equipment maintenance costs. Extreme high temperaturesmay lead to excessive power loads, increase safety hazards suchas short circuits and fires, and have an adverse impact on normaloperations brought by power supply tension or power failures.Extreme high temperatures may also affect logistics andtransportation, such as the storage and distribution ofrefrigerated goods, or lead to traffic interruption in some areas,affecting commodity supplies and passenger flow in touristdestinations.
Extreme high temperatures maycause a very high risk to thecompany’s operations in Hainanprovince, the GBA and SoutheastAsia. Under the high emissionsscenario, the number of operationswith an extremely high risk willfurther increase, for example,operations in Fujian province willalso be exposed to extremely highrisks.This will be the most commonclimate risk faced by the company.
Medium and long-
term
OperationUpstream
Increase inoperatingexpensesIncreased ininvestmentDecrease inoperating income
Follow green standards for the construction of new buildings from their design andplanning, continue the energy-saving optimisation of existing facilities, effectivelyreduce costs while saving energy, and promote the use of clean energies.Regularly check, maintain, and update in-store electrical circuit and facilities, andformulate emergency plans to deal with power supply interruptions, such as byinstalling standby power supply system to prevent sudden power failure.Rigorously monitor cold-chain logistics to guarantee the quality of temperature-sensitive products in hot weather, strengthen inventory management, and preparegoods in advance to deal with possible logistics delays.Continue to expand the online business, integrate online and offline businesses andmaintain a good momentum of development to minimize the adverse impact of climaterisk on the company’s offline business operations.
Precipitation
Heavy precipitation may lead to road flooding, traffic interruptionor potential safety hazards, and reduce consumers’ willingnessto go out and buy. In addition, it may also lead to instabilityof supply or delayed delivery, posing challenges to inventorymanagement and customer services.Continuous heavy rain may affect the sales of some seasonalcommodities, such as outdoor products for summer.
Nearly half of the company’soperation sites are exposed toa high or extremely high risk ofprecipitation, especially certainoperation sites located in theYangtze River Delta, Chongqingcity and Fujian province.
Medium and long-
term
OperationUpstreamDownstream
Increase inoperatingexpensesDecrease inoperating income
Geographical factors shall be fully considered when selecting sites for projectdevelopment to avoid the severe impact of disasters on infrastructure.Check waterproof facilities to ensure that the in-store waterproof facilities are effective,and prepare necessary emergency supplies, such as waterproof sandbags, drainageequipment, emergency lighting, etc.By optimising inventory management, we can improve the inventory turnover ratewhile maintaining adequate inventory, to ensure the stability of the supply chain whenthe logistics and transportation is interrupted.Adjust marketing strategies, launch targeted promotional activities, and encourageconsumers to place orders online.
Acuterisks
Coastalflooding
Coastal flooding may cause seawater to flood stores anddamage store facilities. Goods soaked in water may decay or getdamaged, resulting in economic losses.Coastal flooding may cause delays or interruptions in porttransportation and logistics facilities, which may affect thesupply chain, thus affecting sales of goods. Coastal floodingmay damage power and communication infrastructure, leadingto power failures and communication interruptions in stores,affecting their normal operations.Muddy water, pollutants and pathogens left over after floods maypose risks to the health of employees and customers.
Some operations of the companylocated in Hainan province, theGBA, the Yangtze River Delta, andthe Bohai Rim region are exposedto high or extremely high risks.
Short, medium and
long-term
OperationUpstreamDownstream
Increase inoperatingexpenses
Flood levees shall be built around stores and the threshold shall be raised to reducethe possibility of seawater flooding. Sandbags, waterproof baffles and other materialsshall be prepared for rapid deployment in case of floods.Develop a detailed emergency response plan, including employee evacuation,customer evacuation, goods transfer and other processes, and conduct regular drillsto ensure that employees are familiar with the emergency process.By diversifying the supply chain, we avoid heavy dependence on a single supplychannel and improve the flexibility of the supply chain.Adjust the inventory strategy, avoid overstocking high-risk goods, and takeappropriate moisture-proof and mold-resistant measures for goods that are vulnerableto floods.
Typhoons
Typhoons may blow down trees or billboards, causing damageto the external structure of duty-free stores and threatening thesafety of these stores. Typhoons often bring heavy rainfall, whichmay lead to the flooding of roads and surrounding areas, thusaffecting the safe access to stores of customers and employeesand leading to business interruption. Typhoons may affect thelogistics system, leading to supply chain interruptions, and delaysin goods replenishment, affecting store inventory and sales.
Some operations of the companylocated in Hainan province, Fujianprovince, the GBA and the YangtzeRiver Delta are exposed to a veryhigh level of typhoon risk. Underthe high emissions scenario, thenumber of high-risk operationsslightly increases.
Short, medium and
long-term
Operation
Increase inoperatingexpensesDecrease inoperating income
Pay close attention to the forecast and early warning information, follow the weatherforecast, and make timely adjustments to the store operating plan according to theextreme weather forecast.Strengthen the maintenance and inspection of the store structure, and fix andreinforce it when necessary to ensure the structure is firm enough to withstand strongwinds.Establish stable cooperation with suppliers to ensure timely replenishment of goodseven when the supply chain is interrupted.Strengthen the safety training for employees to improve their awareness of and abilityto cope with typhoons.
Wildfires
The actual losses caused by wildfires may increase additionalcosts of maintenance.The smoke and particles generated by wildfire will seriously affectthe air quality, resulting in reduced visibility and posing a threatto the health of employees, and that may affect the shoppingexperience of customers, leading to reduced passenger flow.Wildfires may lead to the blocked roads or traffic congestion,making it difficult for customers and employees to access theduty-free stores. If a wildfire spreads to the nearby airport orport, it may affect the supply chain and logistics of duty-freestores.
Some operations in Hainanprovince, Heilongjiang province,Jilin province, Anhui province areexposed to high risk.
Short, medium and
long-term
OperationDownstream
Increase inoperatingexpensesDecrease inoperating income
Establish a wildfire monitoring system to keep abreast of the fire development, takepreventive measures in advance to ensure the safety of employees and customers.
114115
Planet
Climate opportunity impact assessment and response:
AreaDescriptionImpact cycle
Scope ofimpact
Potential financialimpact
Strategies, mitigation and adaptation measures
Thecompany’soperations
Build climate resilient infrastructure
Short, medium andlong-term
Operation
Decrease in operatingexpenses
The construction of infrastructure with better climate resilience can help defend against climate disasters, make full use of natural resources, andefficiently save energy and reduce emissions. For details, please refer to “Green and Low-Carbon Operations for a Better Life”.Products
andservices
Collaborate with brand partners topromote green products
Short and medium-term
UpstreamDownstream
Increase in operating income
As consumers prefer environmentally friendly green products, we have collaborated with brand partners to promote sustainable green productsto meet their consumption demands.Integrate online and off-line businesses
Short, medium and
long-term
DownstreamIncrease in operating income
To better cater to consumer shopping habits, we have continued to enhance the integration of the on-line and off-line businesses to provideconsumers with more convenient, integrated services covering on-line and off-line channels.
SupplyChain
Promote green logistics & packagingShort and medium-termUpstream
Decrease in operating
expenses
We have adhered to the use of recyclable and biodegradable green packaging, have proactively promoted the automatic and intelligentupgrading of packaging, and have been committed to applying single-sheet receipts and slim tape into the logistics chain.We have established a waste material recycling system to recycle packaging, cartons, wastepaper, and other materials, which helps extend thelife cycle of packaging materials and improve the overall utilisation efficiency of resources.Optimise freight transportMedium and long-termUpstream
Decrease in operating
expenses
Compared with air transport, ocean transport gives off less carbon emissions, and provides a higher efficiency in energy conservation andemissions reductions. Therefore, we have worked with brands to gradually increase the proportion of sea transportation during the procurementand transportation process.Promote the use of new energy tools
Short, medium and
long-term
Upstream
Decrease in operating
expenses
We have vigorously promoted the use of clean energy equipment and made full use of electric-powered forklift trucks to replace traditionalfuelled ones, so as to reduce GHG emissions and environmental pollution.
Transition risk impact assessment and response:
Risk category
Policy and legal risksTechnology riskMarket riskReputation risk
Description
National and local climate related polices may be tightened (such asthe carbon price mechanism, stricter carbon emission compliancerequirements and information disclosure requirements), which mayincrease the company’s management inputs and costs, and may putthe company under regulatory pressure without the timely improvedcompliance of management.
Given the synergistic effect of information technology and energytechnology, during our transition towards lower carbon and greeneroperations, the green, innovative and intelligent managementrequirements in supply chain (including transportation and packaginglinks) and the operational maintenance requirements of online businesswill increase our technology costs.
As consumers become increasingly aware of lower-carbon alternatives and environmental protection, theywill opt for more environmentally friendly products,which will reduce the demand for traditional productsand present related market risks for our partners and us
If the company fails to switch to a low-carbonoperation mode in time, it may have a negativeimpression on the company due to consumers’preference to spend on a greener and stable platform,affecting brand reputation and market share.
Stakeholders are increasingly concerned about climate-related issues, and we may suffer from reputation riskif we fail to meet stakeholder expectations or if weengage in any behaviour that violates relevant laws andregulations.
Impact cycleMedium and long-termShort, medium and long-termShort, medium and long-termShort, medium and long-termShort, medium and long-term
Scope of impactOperationOperationDownstreamDownstreamOperation
Potential financial
impact
Increase in operating expensesIncrease in asset investmentDecrease in operating incomeDecrease in operating incomeIncrease in operating expenses
Strategies,mitigation andadaptationmeasures
The company is continuously monitoring the introduction andupdating of relevant policies and regulations, and we studyimplementation requirements as they are released and formulaterelevant measures on time.The company is developing the “Work Plan for Implementingthe Spirit of President Xi Jinping’s Important Speech on theConstruction of an Ecological Civilisation and ‘Carbon Peakingand Carbon Neutrality’”. In addition, we are steadfastly promotingthe construction of an ecological civilisation as we work to build aworld-class green tourism retailer and pursue high-quality greendevelopment.
The company adheres to the transformation developmentstrategy, advancing the integration of online and offline tourismretail operations, strengthening technology empowerment, andcontinuously elevating digitalisation, intelligence, and greeninitiatives.Optimising resource allocation, further increasing investmentsin channel expansion and platform development, and improvingsupply chain management, digital innovation applications,marketing promotion, and brand building to provide robustsupport for sustainable growth.
We have established a smooth mechanism forcommunication with consumers to understandtheir demands and preferences in a timely mannerand meet their needs for environmentally friendlyproducts.
We continued to convey “Green CTG DUTY-FREE” concept to the mass public through mediachannels to boost customer confidence.
We have established a smooth mechanism forcommunication with stakeholders and respond totheir concerns in multiple ways.We have incorporated ESG considerations into ourbusiness operations via specific implementation tasksto continuously improve the quality of the company’sESG disclosure, while enhancing our communicationwith stakeholders via regular release of ESG reportsand other methods to disclose our efforts andachievements.
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Green and Low-Carbon Operations for a Better LifeGreen BuildingMetrics related to climate change response include energy consumption and the resulting GHG emissions.Our greenhouse gas emissions
are shown in the table below:
MetricsUnit202520242023Total GHG emissions Scope 1 and Scope 2tCO
e27,53028,54024,632
Including, GHG emissions (scope 1)
tCO
e2,9402,6312,056GHG emissions (Scope 2)
tCO
e24,59025,90922,576GHG emissions intensity for Scope 1 and 2tCO
e/m
0.040.040.04GHG emissions (Scope 3)
tCO
e4,740//Including, Category 6
tCO
e4,680//Category 7
tCO
e60//GHG emissions intensity for Scope 3 (Categories 6 and 7)tCO
e/RMB 1 million of revenue0.09//
6 The statistic scope of GHG emissions includes the building of company’s headquarters, Haikou International Duty-Free Shopping Complex, Sanya International Duty-Free
Shopping Complex, Sanya logistics base, Sunrise Shanghai and Sunrise China, which have already covered the majority of the company’s operating area and revenue. Thecompany will gradually expand the statistical scope in the following years.7 Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determined with reference to①ChinaEnergy Statistical Yearbook② IPCC 2006.8 Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which is determined with reference to the Notice on
Reporting and Verification Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025 issued by the Ministry of Ecology and Environment of China.9 In addition to the already included Category 6 and Category 7, we are currently reviewing Scope 3 GHG emissions across other categories and will disclose them when conditionspermit.10 Scope 3 Category 6 GHG emissions (Business Travel) covers emissions from employee business trips via air travel, high-speed rail, ride-hailing/taxi services, and hotel stays.These emissions are calculated using the spend-based method, with emission factors referenced from the China Products Carbon Footprint Factors Database.11 Scope 3 Category 7 GHG emissions (Employee Commuting) includes only emissions generated by employees commuting via shuttle buses within the Hainan region. Theseemissions are calculated using the activity data method, with emission factors referenced from the following sources: the UK Department for Energy Security and Net Zero 2025edition, the Announcement on the Release of 2024 Electricity Carbon Footprint Factor Data, and the Announcement on the Release of 2022 Electricity Carbon Dioxide EmissionFactors issued by China’s Ministry of Ecology and Environment.
Metrics and Targets
Risk ManagementWe have incorporated climate change risks into our overall risk management process. Please refer to “Enhancing Risk Management andInternal Controls, and Upholding Business Ethics” for the risk management process.
In light of the evolving conditions of the company’s operatinglocation and the market dynamics, we will constantly reviewour practical activities and adjust our objectives and proposedmeasures in a timely manner. We will further improve our
governance, strategy formulation, risk management, identification,and management of metrics and targets, and work with all sectorsof society to cope with climate change and achieve commonsustainable development.
The company is committed to implementing the national GreenBuilding Action Plan, we promote the development of greenbuildings and are committed to extensively engage in resourceconservation, environmental protection and pollution reduction,
to make our buildings efficient, healthy and liveable while realisingharmonious coexistence nature throughout the entire life cycle ofbuildings.
Green Planning
Based on the low-carbon technologies applied at HaikouInternational Duty-Free Shopping Complex’s project plots, andwith reference to low-carbon experience gained through othercommercial projects, the company has prepared the “Low-CarbonTechnology Guidelines for CDFG’s Investment in Tourism RetailComplexes (Commercial, Hotel and Office Complexes)” (hereinafterreferred to as the “Low-Carbon Technology Guidelines”), whichdesigned to help reduce the carbon emissions of buildings andpromote energy efficiency. Going forward, the company will refer tothese guidelines when developing projects that involve the use oflow-carbon technologies.Sanya International Duty-Free Shopping Complex Zone CCommercial Project has adhered to the philosophy of resourceconservation and environmental protection since its planning and
design stage, focus on constructing high-quality green buildingsthat support sustainable development with reference to domesticand international green building standards. During the Project’sdesign stage, a number of green and energy-saving technologieswere adopted that meet the standards for fabricated buildingsand the standards for fully-furnished delivery. The smart andeffective technical measures taken include optimising the shapeof the building envelope system, integrating the design of thelighting and shading system in the atrium, and adopting energy-efficient heating, ventilation and air conditioning (HVAC) equipment,temperature, humidity and air quality monitoring systems, theconcept of sponge cities, primary wearable sensing devices (WSDs),irrigation with reclaimed municipal wastewater, soundproofedconstruction materials, and smart system integration management.
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During the early planning phase for the Haikou International Duty-Free Shopping Complex Plot 4, we established clear carbonemissions control targets for the building’s entire lifecycle. We alsoformulated carbon reduction pathways and technical measures,prioritising the adoption of suitable technologies such as passivedesign, prefabricated construction, healthy building principles, andsponge city concepts. The project comprehensively addressesperformance indicators covering safety and durability, health andcomfort, resource conservation, and environmental liveability. Interms of green design, the company optimises site layouts andbuilding forms based on topography and climate conditions, fullyutilising natural lighting, natural ventilation, and shading designsto reduce operational energy consumption. Regarding resourceconservation and recycling, the company has developed a strategyfor using green building materials. This strategy clearly specifiesrequirements for green materials in key structural elementsand the building envelope, prioritising low-carbon, recyclableoptions to reduce resource consumption and waste generation.Simultaneously, the company enhances resource utilisationefficiency through measures including rainwater harvesting,greywater reuse, and waste classification and recycling.
BIM has been adopted in the design and construction process,and the project will feature prefabricated buildings and finedecorations. Various intelligent, high efficiency and energy-savingcapabilities, such as building shape optimisation, building spaceutilisation, building insulation materials, natural lighting design,sponge cities, rainwater recycling, garbage classification, chargingpiles, solar energy, smart lighting, convenient automated payment,and smart parking will be adopted to reduce the buildings’ energyconsumption and ensure compliance with low-carbon standards.For example, the reclaimed water system of Haikou InternationalDuty-Free Shopping Complex Plot 5 provides 8,800 cubic metresof reclaimed water throughout the year, which can be used foroutdoor landscaping.
Guided by the Green Building Evaluation Label, the SanyaInternational Duty-Free Shopping Complex Phase 1 Plot 2 HotelProject demonstrates excellent resilience against natural disasters,including high winds and torrential rain. Adhering to low-impactdevelopment principles, the project incorporates a sponge city-specific design. It intelligently utilises site space to implement eco-friendly rainwater infrastructure, such as sunken green spaces,rain gardens, and rainwater storage tanks. These features naturallyreduce stormwater runoff, mitigate flood risks during heavy rainfall,control runoff pollution, and protect the water environment.
For the Sanya International Duty-Free Shopping Complex Phase 1Plot 2 Hotel Project, the company also conducted a comprehensivewind engineering study. This encompassed rigid model pressuremeasurement wind tunnel tests, wind-induced vibration analysis,and pedestrian-level wind environment analysis. These studiesensured the structural safety of the main building against windloads and guaranteed that the luxury hotel would meet wind-induced vibration comfort requirements. Additionally, a quantitativeevaluation of pedestrian wind comfort was conducted, guiding thesubsequent architectural landscape design to ensure outdoor windcomfort would meet the project’s requirements.
The design of the Sanya International Duty-Free ShoppingComplex Phase 3 Project adopts a number of energy-saving greentechnologies, such as a photovoltaic pool roof, a sunken greenplaza design, a waterscape recycling system, solar photothermaltechnology, a special acoustic design, a fresh air filtration system,low-volatility coatings, environmentally-friendly refrigerants, a high-performance and multi-split variable frequency system and fresh-airheat recovery technology. In addition to these energy conservation
technologies, the Project also boasts an optimised structuraldesign, and it has adopted a series of smart and efficient measures,such as energy-efficient equipment, green energy-saving buildingmaterials, resource recycling and renewable resource use (the“four innovative technologies”), as well as smart system integrationmanagement, to comprehensively promote carbon reduction at thesource.
Curtain of Sanya International Duty-FreeShopping Complex Zone C
Light coloured pavement and sunshade structures in an outdoor square (photo of SanyaInternational Duty-Free Shopping Complex Zone C)
The coloured glaze dome of the atrium hasbeen effectively designed in terms of heatinsulation and daylighting (photo of SanyaInternational Duty-Free Shopping ComplexZone C)
Automatic remote metering system, integrated energy management system, and air qualitymonitoring system (photo of Sanya International Duty-Free Shopping Complex Zone C)
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Carbon Footprint ManagementThe company strives to meet the goals of carbon peaking andcarbon neutrality. To this end, we are following the “Action Plan forCarbon Peaking and Carbon Neutrality”, and we plan to prioritisecarbon emissions accounting as part of our effort to identify thecompany’s carbon footprint. We are also exploring new carbonreduction solutions that harness technological breakthroughs andinnovations, with the goal of optimising our energy structure andusing more clean energy. We fully leverage the market’s role inresource allocation, and actively participate in carbon trading toreduce costs related to carbon reduction.
The Sanya International Duty-Free Shopping Complex Phase 1 Hotel Project employs a “steel truss with reinforced concrete slabs” method.
The Sanya International Duty-Free Shopping Complex Phase 3 Project utilises a “prefabricated beams and columns with composite slabs” approach.
480kW Split-typeCharging Pile
String InverterMono-crystalline
Single-sided SolarModule 550Wp
Integrated EnergyStorage System100kW/215kWh
Photovoltaic Carport
To reduce embodied carbon emissions during the constructionof the Sanya International Duty-Free Shopping Complex Phase3 Project, the company is working with suppliers to develop anddeploy low-carbon steel bars and low-carbon concrete. Selectedbuildings within the project will be designed and constructed so asto achieve net-zero carbon certification.We will increase the use of renewable energy, including byexpanding the use of solar photovoltaic technology. China Duty-Free (Haikou) Investment Development Co., Ltd. has signedstrategic cooperation agreements with photovoltaic manufacturers,and has devised an overall plan under which photovoltaictechnology will be installed in stages for the Haikou InternationalDuty-Free Shopping Complex Project. The China Tourism GroupPlaza (formerly the Haikou International Duty-Free ShoppingComplex Plot 1 Project) features rooftop and carport photovoltaic(PV) power generation facilities. This system forms an integratedsmart micro-grid combining PV generation, energy storage, andcharging/discharging capabilities, with a total installed capacity of540 kW. It is expected to generate 500,000 kWh of green electricityannually. For the Haikou International Duty-Free Shopping ComplexPlot 4 Project, a tailored renewable energy utilisation plan has beendeveloped to actively incorporate solar PV technology to enhancethe building’s overall renewable energy utilisation rate.
Total Installed Capacity
KW
500,000
kWhGenerate Green Electricity Annually
All construction projects undertaken by the company utiliseprefabricated construction technology. The main structures of eachproject employ methods like “steel-truss with reinforced concreteslabs” or “prefabricated beams and columns with compositeslabs.” This approach achieves water conservation, energyefficiency, material savings, and reduced carbon emissions.
The photovoltaic power generation facilities installed on the rooftop and carport of the China Tourism Group Plaza at the Haikou International Duty-FreeShopping Complex Plot 1Main features of the project:
Low-carbon imageEstablishing a photovoltaiccarport system in thecharging space at the mainentrance and exit areas ofthe park.
Integrated design
Integrating photovoltaicsystems, energy storagesystems and charging pilepower distribution systemsas necessary to realiseintegrated “generation– storage – charging”capabilities.
Economic effectiveness
Through photovoltaic powergeneration, we can achieve thegoal of self-generation for self-consumption in an automatedmanner and feed any surpluselectricity into the grid, orconsume all the self-generatedelectricity, effectively reducingpower costs.
Intelligent control
With ECC, an intelligent energymanagement system, we can engagein energy management and orderlydispatching covering photovoltaics, energystorage, charging piles (clusters) and thepower grid. In this way, we will digitaliseour energy use and harness the Internet ofThings to connect multiple systems.
The under-construction Sanya International Duty-Free ShoppingComplex Phase 3 Project features approximately 18,000-square-meters of photovoltaic (PV) panels on its roof. Concurrently,to explore the most suitable solar power generation materialsfor Sanya’s Haitang Bay and to enhance the safety, reliability,and efficiency of the PV system design, the project team hascollaborated with the University of Science and Technology ofChina. This collaboration involves conducting underwater PV power
generation experiments using both monocrystalline silicon andcadmium telluride materials. The research also explores optimalexternal environmental conditions, such as water depth, providinga valuable reference for future practical implementation. This worknot only helps to optimise the design and application of underwaterPV systems but also offers more reliable energy supply solutionsfor underwater equipment, holding significant scientific importanceand practical value.
Under the direction of the “Low-CarbonTechnology Guidelines”, the companyincorporates green building materials as much aspossible during project construction. Suppliersof equipment and materials (such as cables, airconditioners, refrigerators, diesel generators,domestic water supply pumps, air conditioningchilled water pumps, oil separators, etc.) forSanya International Duty-Free Shopping ComplexZone C project are all required to obtain theCertificate for Environmental Management SystemCertification, and among which, cables alreadyobtained carbon footprint assessment report.Props suppliers for Haikou International Duty-Free Shopping Complex, Sanya International
Duty-Free Shopping Complex, and various airportcomprehensive duty-free stores are also requiredto obtain environmental green certificationssuch as “Certificate for Certification of ChinaEnvironmental Labelling Product”, “EnvironmentalManagement System Certification”, “ISO14001”and “FSC Certification”, etc.The Haikou International Duty-Free ShoppingComplex Plot 5 Project actively promotes theapplication of new technologies, and won theCertificate for the Second Rank Achievementin Green Construction issued by the ChinaConstruction Industry Association for itsconstruction process control efforts.
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Embracing the circular economyThe company employs Building Information Modelling (BIM)technology throughout both the design and construction phasesof its projects. Utilising BIM functions such as 3D visualizationdesign, clash detection, pipeline integration and optimisation,and automated quantity take-offs, the company achieves digitalmanagement across the entire project lifecycle – spanning design,construction, and operations & maintenance. This integratedapproach enhances design quality, reduces rework, saves costs,and establishes a data foundation for future smart operationsand maintenance. Additionally, the company leverages BIMtechnology to conduct building carbon emissions simulation,energy consumption analysis, optimised material selection,and construction waste reduction simulation. This enables theintegration of green and low-carbon principles throughout theentire project lifecycle.All ongoing construction projects are comprehensively adoptingaluminium formwork with truss decking technology andprefabricated construction methods. This enhances formworkturnover efficiency while significantly reducing timber consumption.Building materials are classified and managed as recyclable,reusable, or non-recyclable, enabling multi-use and recyclingto minimise construction waste. Additionally, the projects utilisefactory prefabrication and centralised on-site processing, therebyimproving standardised operations while reducing repetitive tasksand material waste.
The Sanya International Duty-Free Shopping Complex Phase1 Plot 2 Project implements sponge city design standards.Sponge city development and rainwater utilisation constitute keycircular economy practices within the water resources sector.Through techniques encompassing infiltration, retention, storage,purification, utilisation and drainage, the project mitigates urbanwaterlogging and rainwater runoff pollution, thereby enablingrainwater resource recovery. This approach simultaneouslysupplements urban water sources and reduces pressure onmunicipal water supply, while improving the ecological environment.It fosters a closed-loop system for water resources characterisedby “natural accumulation – recycling – ecological restoration”,supporting urban green, low-carbon development.China Tourism Group Plaza (formerly Haikou International Duty-Free Shopping Complex Plot 1 Project) employs a reclaimed watersystem utilising restroom greywater as its source. Combinedwith highly efficient water-saving irrigation methods such as dripirrigation, this comprehensively fulfils LEED requirements forefficient water use, establishing a resource circulation system.During planning, the Sanya International Duty-Free Shopping ComplexPhase 3 Project prioritised sustainable water resource management.It incorporates not only water-saving fixtures but also activelyimplements circular principles within its water management strategy.Municipal reclaimed water is utilised for cooling tower make-up, whileair conditioning condensate and harvested rainwater are recycled.
Green Construction Management
Across all procurement projects, we have further strengthenedenvironmental access mechanisms. During the qualification reviewstage, whether bidders possess ISO 14001 certification is treatedas a key assessment criterion, prioritising suppliers with outstandingenvironmental management capabilities to ensure shortlistedcandidates possess robust environmental credentials. Buildingon this, we explicitly require bidders to develop comprehensivespecialised plans for safe and civilised construction practices.These plans must provide detailed provisions for environmentalprotection measures throughout the construction phase, includingdust control, noise management, and waste disposal, ensuringall construction activities fully comply with local environmentalregulations and standards at the project site.The company also implements green and low-carbon standardsduring construction processes to strengthen its green buildingcredentials. The “four conservations and one protection” principles(energy conservation, land conservation, water conservation,
material conservation and environmental protection) are appliedthroughout the whole process, from planning, development,design, and construction through to operations for propertiesand commercial complex projects invested in and constructedby the company. Measures are taken to ensure safe constructionsites, a clean environment, on time delivery, and sufficient funds.We take the bidder’s possession of ISO 14001 certification asa key evaluation criterion, prioritising suppliers with outstandingenvironmental management capabilities to ensures shortlistedcandidates possess robust environmental credentials. Furthermore,we explicitly require bidders to develop comprehensive specialisedplans for safe and civilised construction practices. These plansmust provide detailed provisions for environmental protectionmeasures throughout the construction phase, including dustcontrol, noise management, and waste disposal, ensuring allconstruction activities fully comply with local environmentalregulations and standards at the project site.
Installation of solar-powered streetlights in workers’ living quarters and office areas at ongoing project sites
Implementation of rainwater collection devices on construction sites for recycling rainwater and construction drainage
During the construction process, the company adopts the following management measures:
Adoption of an environmentally-friendly architectural design and related materials to reduce any negative impact on theenvironment.A preference for reusable materials and equipment, such as stainless steel, glass products, etc.Plastic material management of avoiding the use of one-off plastic products. If plastic materials are unavoidable, chooserecyclable and biodegradable ones, and fully recycle and reuse them by reducing damage and waste. Plastic waste resulting fromconstruction is collected and disposed of by its type to avoid environmental pollution.Classified management of construction waste through compliant collection and transportation, reducing resource waste andminimising environmental impact.Mobile fume extractors with 99.9% filtration efficiency deployed for all on-site welding operations across ongoing projects. Energy-saving modifications were made to gas-shielded welding equipment by installing digital flow controllers, reducing gas wastage by35%.Solar-powered streetlights installed in temporary residential and office areas at project sites to conserve electricity.Rainwater harvesting and recycling systems established. Collected rainwater undergoes sedimentation and filtration before beingreused for dust suppression, landscape irrigation, and concrete curing on-site, enhancing water resource circularity.Misting systems integrated into perimeter fencing at all ongoing construction sites for effective dust suppression.Water-sealing curtains and slope anchoring with shotcrete employed during construction to effectively prevent soil erosion andwater loss.Implementation of environmental protection publicity and energy saving education.
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Leveraging the 2025 National Energy Conservation Promotion Week as a catalyst, CDF Investment Development directed its subsidiaries to conductenergy-saving awareness campaigns. Activities included distributing pamphlets, displaying promotional banners, disseminating educational videos, andorganising training sessions, resulting in over 3,000 personnel receiving training throughout the year.The Sanya International Duty-Free Shopping Complex Phase 1 Plot2 Hotel Project and the Haikou International Duty-Free ShoppingComplex Hotel Project, among others, have each formulateda green construction programme. This programme includesmeasures for site environmental protection; comprehensiveutilisation of materials and resources; energy conservation andcomprehensive utilisation of energy; water conservation andcomprehensive utilisation of water resources; land conservationand construction land protection; construction waste management;noise pollution control; light pollution control; indoor environmentalpollution control; and other measures. Multiple green technologiesand measures have been adopted for these Projects, such as the
In 2025, the Sanya International Duty-Free Shopping Complex Phase 3Project and the Haikou International Duty-Free Shopping Complex (Block
No.4) were each named as a
“Provincial-level Exemplary Construction Sitefor Safety and Civilised Building in Hainan
Province”.
primary use of local and recycled building materials, advancedconstruction techniques, tool stereotyping, bare soil coverage fordust suppression, water-sprinkling devices on site to control dust,and the recovery and comprehensive utilisation of constructionwaste, reducing resource consumption and environmental pollutionthroughout all stages of the construction process, to protect thenatural surroundings to the furthest extent possible. Constructionwaste materials generated during on-site operations are sortedand recycled in accordance with requirements, then transportedto licensed processors for reprocessing. The reclaimed materialsare subsequently used in manufacturing new building materials,thereby conserving natural resources.
Green and Energy-Saving Operations
AspectLow Carbon & Environmental Protection Measures
Energyconsumption
? The building’s energy-efficient design complies with national standards. The design of the building’s shape, orientation, the distance between buildings,
and window-to-wall ratio, among other aspects, were optimised to reduce overall energy consumption.? The facade curtain walls of Sanya International Duty-Free Shopping Complex Zone C adopt tempered double-silver ultra-white Low-E hollow glassstructures and double-silver coating technology to effectively prevent heat waves from penetrating inside, which efficiently improves the performance ofthe building’s thermal insulation without affecting the light transmission rate needed to keep the room bright.? The Low-E coating helps reflect outdoor thermal radiation, prevents heat from entering the room, and reduces the energy consumed by air conditioning.For buildings in climate zones with hot summers and warm winters, this coating technology helps improve energy-saving efficiency and blocks mostultraviolet rays, reducing the damage inflicted by ultraviolet rays on indoor furniture, floors and fabrics and extending their useful lives.? Intelligent elevator management: The escalators’ intelligent speed monitoring capabilities and the elevator group control system reduce powerconsumption.? Intelligent fresh air control system: Fresh air is circulated into the buildings during transition seasons. Minimum fresh air volumes are used to operate thesystem when the outdoor temperature is higher than the indoor temperature in summer.? The building’s intelligent lighting considers the time of the day and scenarios to reduce electricity and energy consumption.? The building has been outfitted with a variety of intelligent control systems, including intelligent office capabilities, energy efficiency capabilities, intelligent
lighting, intelligent monitoring, access control systems, and vehicle management systems.Water and soil
resources
? Adopting rainwater storage system and permeable pavement in the building’s “sponge city”: The permeable pavement has been used to efficiently
penetrate ground rainwater, which reduces pressure on the drainage system and maintains the urban soil’s ecological balance.? Sewage and wastewater classification treatment: Sewage is discharged into the municipal network after being treated by the outdoor septic tank, and
kitchen sewage is discharged into the municipal is also network after being treated by oil separators twice.? Phase 2 also equipped with a river revetment and plant maintenance capabilities, which enable the building to meet floodwater discharge requirements,
thereby ensuring a stable riverside and preventing water and soil erosion.Clean air
? The high-efficiency oil fume purifier has been designed to the highest emission standard of 1.0mg/m?, which is stricter than the national standard for
environmental protection and emissions in China. These measures effectively improve the park’s air quality.? The building layout distance between buildings and ventilation placement have been optimised to improve on-site air circulation.? Phase 2 is equipped with an intelligent garage ventilation system. The induced ventilation system in the underground garage automatically controls the
operation of the garage fan according to the carbon monoxide concentration, which improves air quality in the garage.Noise management
? Noise and vibration control: Fans, pumps and other equipment emit low noise, and shock absorption devices have been deployed in relevant locations
on the premises.
Sanya International Duty-Free Shopping Complex ProjectBased on the operational data of Sanya International Duty-Free Shopping Complex Phase 1 and Phase 2, Phase 1 has reducedenergy use by more than 15%, and Phase 2 has reduced energy use by more than 18%.
AspectLow Carbon & Environmental Protection MeasuresReducing the heat island
e?ect
? The project reduces ground parking spaces, uses light-coloured paving materials, and uses light-coloured materials or highly reflectivecoatings for roofing materials as much as possible.
High e?ciency water-
saving appliances
? The project uses all Grade I sanitary ware to achieve high-efficiency water savings, and the cooling tower’s water flow rate meets LEED
requirements.Rainwater recycling? All on-site rainwater will be collected, treated, and reused for greening irrigation and road washing to save fresh water.
Energy e?ciencyoptimisation
? A comprehensive energy consumption simulation has been conducted based on the design of the project envelope and the HVAC system,
the equipment’s energy efficiency and the indoor lighting power density. According to the simulation’s calculations, the designed building will
reduce costs by 16.3% annually compared to the ASHRAE benchmark building.High e?ciency airtreatment
? The project adopts G4+F8 medium – and high-efficiency filtration devices to guarantee indoor air quality. In addition to basic ventilation, the
volume of fresh air will be increased by 30% to avoid insufficient fresh air when there are many people in the building.Enhanced commissioning
? In addition to basic commissioning, the project will also ensure that an efficient operational strategy is maintained for the energy consumption
system and that timely support is provided for operations through functional testing and problem documentation of HVAC, the HVAC control
system and the lighting system.Full life cycle assessment
? The project has conducted a full life cycle assessment (LCA) of the new building to calculate the percentage reduction in various environmental
impact indicators of the new building compared to the benchmark building.
Haikou International Duty-Free Shopping Complex Project
The Sanya International Duty-Free Shopping Complex Phase 3 Projectwas named as a “Provincial-level Exemplary Construction Site for Safetyand Civilised Building in Hainan Province”
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ProjectLow Carbon & Environmental Protection Measures
Energyconsumption
? The comprehensive optimisation of electromechanical systems, including the application of variable frequency drive (VFD) and group control technologyto domestic water pumps and lifts, combined with high-efficiency chillers and VRF systems, yields approximate annual electricity savings of 633,500 kWh.? The installation of triple-silver Low-E insulated glass curtain walls, a 110mm thick extruded polystyrene (XPS) roof slab, and 80mm rock wool external wallinsulation has significantly improved the thermal performance of the building envelope.? A low-voltage interconnection mode has been activated within the substation, allowing transformer operations to be adjusted based on actual electricalload. This measure reduces transformer loss consumption by approximately 8,000 kWh per month.? Lighting usage measures have been implemented, featuring an “every-other-light-on” configuration and a lights-off-when-unoccupied mode. Smartlighting controls, complemented by regular personnel patrols, have reduced lighting electricity consumption by 55%.? Air conditioning operating strategies have been formulated through detailed analysis of equipment operational logic. New intelligent cooling towertemperature-based start-stop controls and variable frequency drives for air conditioning water pumps have been added. Consequently, the coefficient ofperformance (COP) for the main chiller units has increased from a peak of 4.3 to 4.7, achieving a comprehensive energy reduction of 12%.? A comprehensive monitoring and metering system has been established. This integrates Building Management Systems (BMS) and Energy ManagementSystems (EMS) via an Intelligent Building Management System (IBMS) platform, enabling real-time monitoring of equipment operations and energyconsumption. Operational data is automatically fed into the company’s energy management platform, generating electronic statistical records that providedata support for energy conservation and carbon reduction.Saving Water
? A greywater reuse system, sourcing water from restroom wastewater, has been implemented. This is combined with highly efficient irrigation methods
such as drip irrigation.? Daily readings are taken for key water meters to analyse abnormal usage patterns. This facilitates precise control over irrigation and public water usage,
resulting in monthly water savings of 700 tonnes.
The China Tourism Group Plaza (formerly Haikou International Duty-FreeShopping Complex Plot 1 Project)
Adjusting the operations mode of transformers
The China Tourism Group Plaza (formerly HaikouInternational Duty-Free Shopping Complex Plot 1 Project)
Adhering to the principle of “Efficiency, Energy Conservation, and Sustainability”, the project integrates multiple low-carbontechnologies and intelligent systems, achieving a 23.8% reduction in overall energy consumption compared to the LEEDbaseline.
ProjectLow Carbon & Environmental Protection MeasuresEnergyConsumption
? The integrated system – comprising district cooling plants with chilled water sources, variable flow water systems, and high-efficiency terminal air-
conditioning units – achieves an overall energy efficiency exceeding 10% above the required standard.? Guest rooms and public areas are equipped with independently controlled air-conditioning, balancing energy conservation with personal comfort.? The thermal performance of the building envelope surpasses the national energy-saving standard by over 15%. High-performance low-emissivity (low-E)
curtain wall glazing effectively reduces solar heat gain while maintaining panoramic sea views.? All lighting products, three-phase distribution transformers, water pumps, and fans meet or exceed Grade 2 energy efficiency under China’s current
national standards.? Air-source heat pumps supply domestic hot water, with renewable energy contributing to over 26% of the total provision.Saving Water
? An intelligent energy management system covering three utilities – electricity, water, and cooling capacity – has been implemented, alongside sponge city
concepts, water recycling, and water conservation measures.Noise Control
Acoustic insulation and vibration reduction measures have been optimised for noise control.
Sanya International Duty-Free ShoppingComplex Phase 1 Plot 2 Hotel Project
The project’s annual operational energy consumption achieved a 13.3% reduction compared to the requirements stipulated inthe national standard GB55015-2021, General Code for Energy Efficiency and Renewable Energy Application in Buildings.
Multiple intelligent control systems to achieve green and low-carbon operation of buildings
In 2025, the company conducted energy and water conservation renovations for existing buildingsthrough various initiatives to reduce operational costs
At the Haikou International Duty-Free Shopping Complex, energy-savingmodifications were implemented in office areas. Over 1,000 LED energy-efficient luminaires were installed, achieving a 60% reduction in lightingenergy consumption within the renovated zones. Additionally, more than50 water-saving faucets and sensor-activated flushing devices were fitted.Precision irrigation upgrades for landscaping were also introduced, curbingwater usage.Sanya International Duty-Free Shopping Complex Building A and BuildingB underwent phased upgrades without disrupting operations. Guidedby the principles of resource conservation and environmental protection,the project addressed tenant requirements for mechanical and electrical(M&E) systems while integrating energy-efficient and green technologies.Through on-site technical assessments and analysis of historical operatingdata, a comprehensive M&E retrofit methodology was developed. Keyupgrades included enhancement of M&E systems employing multiple greentechnologies: fresh air filtration systems, eco-friendly refrigerants, high-efficiency variable refrigerant flow (VRF) multi-split systems, and fresh airheat recovery technology. Necessary monitoring points, regulating valves,and balancing valves were installed, and overall system balancing wascommissioned. This ensures the entire system operates with high efficiencyand energy savings while meeting usage requirements.An intelligent property management platform was established for therenovation of Sanya International Duty-Free Shopping Complex Building Aand Building B. Centred on digital monitoring, intelligent regulation, and data-driven decision-making, the platform enhances the entire building energyefficiency retrofit process. It collects real-time energy consumption datafrom water, electricity, gas, HVAC, lighting, and other equipment. Utilisingintelligent algorithms, the platform precisely identifies high-consumptionequipment and anomalous energy usage points, providing targetedobjectives for energy-saving retrofits. By integrating systems such asintelligent lighting, smart access control, chiller group control, video security,and parking management, it enables intelligent control and management,and automated operations including temperature regulation based on
Energy-saving renovations at Haikou International Duty-FreeShopping Complex in 2025
The projects are also equipped with Intelligent Operations Centres (IOCs), which harness the Internet of Things, passenger flow perception, intelligent security solutions, energyconsumption analysis and ticketing services, among other tools, to facilitate low-carbon operations.
Making full use of the building automation system, taking into account the actual operating needs of theprojects to optimise operating strategies, and realising intelligent group control of cold station equipment.Frequency conversion technology is also applied to the water system and air system to comprehensivelyreduce the energy consumed by the transmission and distribution system of the refrigerator equipment andthe operation of air conditioning terminals, so as to conserve energy and reduce consumption and carbonemissions
Using the intelligent lighting system, which features refined lighting design and diversified lighting styles, toexercise control of landscape lighting by zone, point location, system, time interval and mode and createmultiple lighting scenes while saving energy consumed by the lighting system.
Using the air quality monitoring system to perform real-time monitoring of indoor air quality (such as analysingcarbon dioxide, PM2.5 and other indicators), and enabling intelligent regulation of the fresh air system and airpurification equipment, to ensure that indoor air quality meets relevant standards.
The Haikou International Duty-Free Shopping Complex Projectand Sanya International Duty-Free Shopping Complex Zone C areequipped with building automation systems, air quality monitoring
systems, intelligent lighting systems and other intelligent controlsystems. During their operating periods, the following measureshave been taken to promote green and low-carbon operations:
actual demand, thereby reducing unnecessary energy consumption.Simultaneously, it accumulates energy consumption data models tocontinuously optimise retrofit plans, driving the transition of energy-savingmeasures from extensive to precision approaches. This ultimately achieves awin-win outcome of reducing operational costs and enhancing efficiency forproperty management alongside advancing green, low-carbon development.
Case study
128129
Planet
Green StoresAdhering to green operation principles, we collaborate with brand partners to build eco-friendly stores and advance low-carbon,sustainable operations.
In September 2025, the SAINT LAURENTstore at Sanya International Duty-FreeShopping Complex received LEEDPlatinum certification.In December 2021, the Armani Beautycounter at Sanya International Duty-FreeShopping Complex received LEED Goldcertification.In January 2022, the Cartier shop at Sanya International Duty-FreeShopping Complex received LEED Gold certification.
In March 2022, the YSL Beauté counterat Sanya International Duty-Free ShoppingComplex received LEED Gold certification.
In April 2022, the Kiehl’s store at SanyaInternational Duty-Free Shopping Complexreceived LEED Gold certification.
In April 2022, the Lanc?me counter atSanya International Duty-Free ShoppingComplex received LEED Gold certification.
In October 2022, the Balenciaga shop at Sanya International Duty-FreeShopping Complex received LEED Gold certification.
In January 2023, the Lanc?me shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In March 2023, the Helena Rubinstein shop at Haikou International Duty-Free Shopping Complex received LEED Gold certification.
In September 2022, the De Beers shop at Sanya International Duty-FreeShopping Complex received LEED Gold certification.
By the end of 2025, the company had a total
>>>>>>>>>>of which at
LEED Platinum certification
store
LEED Silver certification
storesLEED Gold certification
stores34
stores/counters had receivedLEED certification of
Haikou International Duty-Free Shopping Complex(Block No.6)Plan to apply for 2-star Green
Building certification
As of the end of 2025, the company’s progress in applying green building measures for certain key projects is as follows:
Haikou International Duty-Free Shopping Complex(Block No.1)
2-star Green Buildingcertification (obtained in 2025)
LEED Gold certification
(obtained in 2025)
Sanya International Duty-Free Shopping ComplexZone C
2-star Green Building
certification
LEED Gold certification
Sanya International Duty-Free Shopping ComplexPhase 3 Commercial Project
WELL Platinum mid-term
pre-certification
LEED Platinum pre-
certification
Haikou International Duty-Free Shopping Complex
(Block No.5)
LEED Gold certification
Haikou International Duty-Free Shopping Complex
(Block No.4)
2-star Green Building pre-certification (obtained in 2025)
Sanya International Duty-Free Shopping ComplexPhase 1 Plot 2 Hotel Project
2-star Green Building pre-certification (obtained in 2025)
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
BALENCIAGASANYA HAITANG BAYSanya, ChinaLEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAILOctober 2022
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.L'OREAL LANCOME HAIKOU XHG STOREHaikou, ChinaLEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAILJanuary 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.HELENA RUBINSTEIN CDFG HAIKOU XHG(TRAVEL RETAIL ASIA PACIFIC)Haikou, ChinaLEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAILMarch 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.DE BEERS SANYA HTB PERM STORE SHOPSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
September 2022
NO.212P20253
二星级绿色建筑标识证书CERTIFICATEOFGREENBUILDINGLABEL建筑名称:海口市国际免税城项目（地块一）建筑类型:公共建筑建筑面积:12.2万㎡申请单位:中免（海口）投资发展有限公司、雅克设计有限公司
关键技术指标指标值
建筑运行碳排放强度kgCO
/(㎡.a)围护结构热工性能(或建筑供暖空调负荷)围护结构热工性能提高10%严寒和寒冷地区住宅建筑外窗传热系数降低比例比国家标准降低?%节水器具用水效率等级全部达到2级建筑隔声性能房间隔声性能达到高限值；楼板撞击隔声性能达到高限值室内主要空气污染物浓度比国家标准GB/T18883限值降低大于20%外窗气密、水密、抗风压性能外窗气密、水密、抗风压性能符合国家标准规定，外窗洞口与外窗本体结合严密全装修全装修质量符合国家标准规定绿地率30.0%，达到规划指标%年径流总量控制率%可再生能源利用率
由可再生能源提供的生活用热水比例?%、
由可再生能源提供的空调用冷量和热量比例?%、由可再生能源提供的电量比例4.11%非传统水源利用率绿化灌溉、车库及道路冲洗、洗车%；冲厕%；冷却补水%绿色建材应用比例?%以上指标为认定时标准工况数值，认定标准为《绿色建筑评价标准》GB/T50378?2019
海南省住房和城乡建设厅2025年08月18日
扫描二维码可见项目详细信息
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETER TEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
Haikou, ChinaLEED v4BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENT
October 2025
中旅大厦
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETER TEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
SANYA INTERNATIONAL DUTY FREE SHOPPING COMPLEX BLOCK C
三亚国际免税城C区
Sanya, ChinaLEED v4BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENT
October 2023
CTG PLAZAChina Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance Report130131
Planet
In March 2023, the Kiehl’s shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In March 2023, the YSL Beauté shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In January 2024, the Helena Rubinstein shop at Sanya Duty-Free ShoppingComplex Block C received LEED Gold certification.
In April 2023, the De Beers shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In January 2024, the L’Oréal shop at Sanya Duty-Free Shopping ComplexBlock C received LEED Gold certification.
In May 2023, the Cartier shop at Haikou Meilan Airport Duty-Free Shopreceived LEED Gold certification.
In January 2024, the SAINT LAURENT shop at Sanya Duty-Free ShoppingComplex Block C received LEED Gold certification.
In March 2026, the Moncler store at Sanya Duty-Free Shopping ComplexBlock C received LEED Gold certification.
In June 2023, the Balenciaga shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In January 2024, the Prada Beauty shop at Sanya Duty-Free ShoppingComplex Block C received LEED Gold certification.
In July 2023, the Cartier shop at Haikou International Duty-Free ShoppingComplex received LEED Gold certification.
In February 2024, the Armani shop at Sanya Duty-Free Shopping ComplexBlock C received LEED Gold certification.
In July 2023, the YSL shop at Haikou International Duty-Free ShoppingComplex received LEED Gold certification.
In February 2024, the Maison Margiela shop at Sanya Duty-Free ShoppingComplex Block C received LEED Gold certification.
In March 2024, the Kiehl’s shop at Sanya Duty-Free Shopping ComplexBlock C received LEED Gold certification.
In August 2024, the Valentino shop at Sanya Duty-Free Shopping ComplexBlock C received LEED Gold certification.
In April 2024, the Lanc?me shop at Sanya Duty-Free Shopping ComplexBlock C received LEED Gold certification.
In August 2025, the Kerastase counter atSanya Duty-Free Shopping Complex BlockC received LEED Gold certification.
In April 2024, the Prada Beauty shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In May 2022, the Van Cleef & Arpels shop at Sanya International Duty-FreeShopping Complex received LEED Sliver certification.In April 2024, the SkinCeuticals shop at Sanya Duty-Free ShoppingComplex Block C received LEED Gold certification.
In July 2023, the Van Cleef & Arpels shop at Haikou International Duty-FreeShopping Complex received LEED Sliver certification.In May 2024, the Shu uemura shop at Sanya Duty-Free Shopping ComplexBlock C received LEED Gold certification.
In June 2024, the Prada shop at Haikou International Duty-Free ShoppingComplex received LEED Gold certification.
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
HELENA RUBINSTEIN, TR APACINT' L DUTY FREE CITY COMPLEX BLK C
Sanya, China
v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
January 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
DE BEERS HAIKOU XHGHaikou, ChinaLEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAILApril 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.L'OR?AL PARIS, TR APACINT' L DUTY FREE CITY COMPLEX BLK CSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
January 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
CARTIER HAIKOUMEILAN INTERNATIONAL AIRPORT T2
Haikou, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
May 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
YVES SAINT LAURENT, TR APACINT' L DUTY FREE CITY COMPLEX BLK CSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
January 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.BALENCIAGAHAIKOU XHG
Haikou City, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
June 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
PRADA BEAUTY, TR APACINT' L DUTY FREE CITY COMPLEX BLK CSanya, China
v4.1LEED V4.1 ID+C: RETAIL
January 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.CARTIERHAIKOU NEW HABOUR MALLHaikou, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
July 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
SAINT LAURENT HAIKOU XHGHaikou, ChinaLEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
July 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED
BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
PRADA BEAUTY, TR APACINT’L DUTY FREE SHOPPING COMPLEX
Haikou, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
April 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.VAN CLEEF & ARPELSSANYA CDFG BOUTIQUESanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
May 2022
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.KIEHL'S CDFG HAIKOU XINHAIGANG(TRAVEL RETAIL ASIA PACIFIC)Haikou, ChinaLEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
March 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.YSL BEAUT? CDFG HAIKOU XINHAIGANG
(TRAVEL RETAIL ASIA PACIFIC)
Haikou, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
March 2023
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.MAISON MARGIELA, TR APACINT' L DUTY FREE CITY COMPLEX BLK CSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
February 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.KIEHL’S, TR APACINT' L DUTY FREE CITY COMPLEX BLK CSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
March 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.LANC?ME, TR APACINT’L DUTY FREE CITY COMPLEX BLK CSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
April 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.SKINCEUTICALS, TR APACINT’L DUTY FREE CITY COMPLEX BLK CSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
April 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
SHU UEMURA, TR APACINT’L DUTY FREE CITY COMPLEX BLK C
Sanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
May 2024
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.VALENTINO, TR APACINT’L DUTY FREE CITY COMPLEX BLK CSanya, China
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
August 2024
PRADA HAIKOU XINHAIGANGINTERNATIONALL DFS COMPLEX
Haikou, China
HASFULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
LEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
June 2024
??
PETER TEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHEDBY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.
PETERTEMPLETON, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
VAN CLEEF & ARPELSHAIKOU CDFG BOUTIQUE
Haikou, ChinaLEED v4INTERIOR DESIGN AND CONSTRUCTION: RETAIL
July 2023
vChina Tourism Group Duty Free Corporation Limited ? 2025 Environmental, Social and Governance Report132133
Planet
CDF Health Product Presentation
We promote packaging automation and intelligent upgrades. The companyuses single-sheet receipts and slim tapes into the logistics chain, andexplores the use of tape-free cartons at the end of the logistics chain. Tape-free cartons are sealed entirely physically, and they also allow consumers tofeel that they are participating in environmental protection initiatives duringthe unpacking process. By making this change, we hope to spread greenconsumption among large numbers of consumers.The company insists on combining publicity with inspection to promotethe implementation of a green philosophy. Kindly reminders are sent tocustomers when they pick up goods, to encourage them use their owncanvas bags or backpacks, and to discourage misuse of environment-friendly paper shopping bags. The company has set up a dedicated teamto carry out occasional inspections on prohibited plastic items in the Hainanarea. Once identified, items listed in the prohibited plastic item catalogue willbe sealed up. The sales process only adopts biodegradable, recyclable andenvironmentally friendly packaging materials.We provide training and support, delivering dedicated green packagingsessions to staff at logistics centres. This strengthens subordinatecompanies’ implementation capabilities and fosters the development ofsustainable packaging solutions. For instance, the Haikou Meilan AirportDuty-Free Shop of Hainan DF promoted minimalist packaging and refills,training staff in “right-sizing packaging” techniques. This prioritises reusingincoming delivery packaging for repackaging, reducing material consumptionand transport emissions at source.
Air column bags have been replaced with honeycomb paper
Open-top cartons have been replaced with tear-open designs to reduceadhesive tape usage
Packaging MaterialWe have formulated unified environmental protection policies and guidelines,and adhere to the philosophy of “responsible packaging” and carries outgreen packaging actions.Reducing Packaging Material UsageWe are committed to reducing packaging material usage, thereby minimisingwaste at source. To avoid resource waste and excessive packaging,suppliers are required by the company to deliver their goods directly to theirdestination, skipping any unpacking and repacking procedures neededduring transportation.
We implemented the “circular economy” concept in packaging materials,making “the vigorous promotion of the use of recyclable packaging materials”a key objective. To this end, we eliminated single-use packaging and fullyadopted reusable, environmentally friendly, returnable transit containers forsorting and distribution processes. These durable crates, which are designedto be used for multiple cycles, significantly reduce demand for new boxesand waste generation.In 2025, the company’s Sanya Downtown Store achieved a full-year“zero procurement” of single-use transport packaging. Furthermore,we established a closed-loop packaging material system, creating acomprehensive reusable crate recovery network. Incoming cardboard boxesfrom suppliers are classified and recovered by brand and specification.After sorting, these are repurposed for store distribution. We ensure timelyrecovery of each crate upon delivery completion, enabling multiple reusecycles based on its condition.For our proprietary brand packaging, we utilise environmentally friendlymaterials. The CDF Health product line primarily consists of commonmaterials such as paperboard and acrylic, ensuring effective productprotection and essential display functionality while balancing cost efficiencyand practicality.
Haikou International Duty-Free Shopping Complex, in partnership withL’OCCITANE, has deeply integrated an empty bottle recycling programmeinto its duty-free shopping experience, themed “Filled with the Beauty of theWorld ”. As a practitioner of green transformation within the retail sector,the company and the brand have joined forces in this cross-sector initiativeto accept full-size empty containers from all brands under the L’OCCITANEGroup. This tangible action responds to the emerging trend of eco-consciousconsumption. Each cleaned empty bottle is given a new lease of life throughprofessional recycling processes, transforming into eco-friendly merchandiseand practical items, thereby perpetuating the ethos of cherishing resources.Between September 2023 and March 2025, the initiative collected 139empties, with participants eligible to exchange them for exclusive gifts.
Haikou International Duty-Free Shopping Complex Collaborates with L’OCCITANE onEmpty Bottle Recycling Initiative
The watch box with sustainability conceptThe Aquis Upcycle Date watch
Collaborating with Brands to Implement Green Packaging
schemes, minimalist packaging, packaging take-back programmes, and theintroduction of eco-refills for products. This supply chain cooperation drivesgreen, low-carbon operations, enabling customers to actively participate inenvironmental protection practices.
Collaborating with Oris to Promote Sustainable Watches and Cases
cases are smaller, lighter, and fully recyclable compared to previouspackaging, which will reduce the brand’s carbon emissions frompackaging by 50%.
Supporting Breitling’s Launch of Eco-Friendly, Foldable, and Reusable Watch CasesThe company supports Breitling in its use of eco-friendly, foldable, andreusable watch cases, crafted entirely from upcycled plastic bottles. Thisinitiative demonstrates the brand’s efforts to reduce its environmental impactand achieve sustainability. The compact and slim dimensions of these caseshave reduced the average shipping distance by nearly 30%, significantlylowering transport-related carbon emissions. Breitling’s compact, agile, andmodular alternative is also leading innovation in watch industry packaging.It has been awarded the “Solar Impulse Efficient Solution” label by theSolar Impulse Foundation, a label that recognises solutions with a positiveenvironmental and economic impact.
Leveraging its supply chain influence, the company collaborates withbrands to launch eco-themed initiatives. Examples include the “SustainableSkincare, Shared Environmental Care” campaign with Saint Laurent,L’OCCITANE, and Kiehl’s. Actions encompass empty container recycling
We are collaborating with Oris to promote sustainable watchesand cases. Its Aquis Upcycle Date watch is crafted from recycledPET plastic, and the brand utilises sustainable watch cases. These
134135
Planet
Shopping Bag Management
The company rigorously implements China’s plastic restrictionpolicy, treating plastic reduction as a critical initiative for the low-carbon transition and advancing comprehensive plastic pollutioncontrol. It enforces a complete ban on non-compliant plasticproducts, strictly adheres to the prohibited items list, and prohibitsprocurement or use of plastic bags and tableware specified therein.This prevents non-compliant plastic items from entering operationalchannels at source.The company enhances awareness through in-store posters, digitalscreen displays, and staff engagement to educate customerson plastic reduction. It encourages reduced plastic usage andpromotes eco-friendly alternatives like reusable shopping bagsand water bottles, fostering a “plastic-reduction” consumptionethos. In 2025, the company provided more than 16.84 millionshopping bags meeting environmental protection requirementsand has provided over 77.37 million such bags over the past fouryears, effectively reducing the generation of non-degradable plasticwaste.The company adheres to the use of recyclable and degradablegreen packaging and continuously develops and adoptsinnovative eco-friendly packaging technologies, such as reusableand biodegradable materials, to promote sustainability andenvironmental protection. Packaging bags used by the company’sstores in Hainan are all made of biodegradable and environmentallyfriendly materials. Cartons and gas columns used as filling materialsfor e-commerce operations by CDFI are all made from recyclablematerials. CDFG (Cambodia) Limited strictly complies with the
MetricsTier 2 metricsUnit20252024Total amount of packaging materials used by the company/Ton659.38505.23Total amount of packaging materials used by the company in
unit operating income
/Ton/millime CNY0.0170.009
Procurement quantity of packaging materials by category
PaperTon467.50404.13BoardTon00PlasticTon191.88101.11GlassTon00MetalTon00
Procurement quantity of packaging materials that were
recyclable/non-recyclable
RecyclableTon516.03387.12Non-recyclableTon143.3599.51Procurement quantity of packaging materials that were
reusable/non-reusable
ReusableTon571.23452.98Non-reusableTon88.1545.40
Procurement quantity of plastic packaging materials by
category
Proportion of recyclable plasticpackaging
%100/Proportion of degradable plasticpackaging
%100/
Current Status of Packaging Material Usage:
Cambodian Ministry of Environment’s regulations on plasticshopping bag dimensions, replacing non-conforming products.Kunming cdf utilises biodegradable shopping bags and FSC-certified paper carriers.In compliance with the Hainan Special Economic Zone Regulationson Prohibiting Non-Degradable Disposable Plastic Products, allHainan subsidiaries exclusively use 100% biodegradable plasticbags. The Retail Operations Centre adheres to internationalaviation standards for duty-free packaging, employing standardsealed bags. Pursuing environmental efficiency and customerconvenience, it maximises bag capacity by consolidatingpurchases into appropriately sized carriers, thereby optimisingcost-effectiveness.
Saving FoodThe company complies with the Anti-Food Waste Law andimplements the spirit of President Xi Jinping’s important instructionsand comments on “firmly combating extravagancy in foods”, aswell as the important requirements of the 20th National Congress
We Are the Clean Plate Champions
In December 2025, the company headquarters’ staff canteen launched the “We Are the Clean Plate Champions” campaign againstfood waste. This initiative championed
“civilised dining, rigorous conservation, waste reduction – cdf people in action”.
Put up postersadvocating reducingleftover food, suchas “Clear Your Plate”in the eye-catchingareas of canteens;
Daily tracking of diner numbersenables dynamic meal portionadjustments. Small-portion dishesand pay-by-weight systems minimisewaste, complemented by à la cartepreparation of snacks and assortedwhole-grain portions to diversifyofferings while reducing excess;
The staff meal isin a buffet form toencourage staff toonly take the amountthey need, regularmenu refinementsalign with employeepreferences;
Automated ricedispensers standardiseportions, preventingover-serving;
Set up a tablewarerecycling desk todiscourage foodwaste and supervisethe effectiveclassification ofleftover food;
Carry out anti-foodwaste awarenessactivities.
In 2025
>>>>>>>>>>
tons
12 In 2025, the scope of the company’s food loss and waste statistics only covers Haikou International Duty-Free Shopping Complex.
the total weight of food lossand waste generated by thecompany was
tons
the total amount of food lossand waste used for alternativepurposes was
tons
the total amount offood discarded was
0.1
tons/person
and the intensity of food lossand waste was
of the Chinese Communist Party on “advocating frugality and thriftin the whole society”. We improve our employees’ awareness ofsaving food by taking actions during daily meals in staff canteens.
Degradable plastic bag
Case study
136137
Appendix
AppendixGlossary of TermsTermDefinitionCTG DUTY-FREE, the company, ourcompany, we
refers toChina Tourism Group Duty Free Corporation Limited together with its affiliated companiesESG Report, the Report, this Reportrefers toThe Environmental, Social and Governance ReportThe reporting period, the current yearrefers toFrom 1 January 2025 to 31 December 2025China Tourism Grouprefers toChina Tourism Group Co., Ltd.CTS Holdingsrefers toChina Travel Service (Holdings) Hong Kong LimitedCDF Investment Developmentrefers toCDF Investment Development Co., Ltd.Sanya Downtown Duty-Free Storerefers toChina Duty Free Group Sanya Downtown Duty Free Store Co., Ltd.Sunrise Chinarefers toSunrise Duty Free (China) Co., Ltd.Sunrise Shanghairefers toSunrise Duty Free (Shanghai) Co., Ltd.Hainan DFrefers toHainan Provincial Duty Free Co., Ltd.CDF Internationalrefers toChina Duty Free International LimitedCDFG (Cambodia) Limitedrefers toChina Duty Free Group (Cambodia) Co., Ltd.Guangzhou Xinmianrefers toGuangzhou Xinmian Duty Free Merchandise Co., Ltd.CDFCSrefers toChina Duty Free Cruise Services LimitedDalian cdfrefers toDalian Port China Duty Free Merchandise Co., Ltd.Hangzhou cdfrefers toCDFG Hangzhou Duty Free Merchandise Co., Ltd.Sanya Downtown Storerefers toCDFG Sanya Downtown Duty-Free Store Co., Ltd.Haikou Meilan Airport Duty-Free Shoprefers toHainan Duty Free Haikou Meilan Airport Duty Free Store Co., Ltd.Shenyang cdfrefers toCDFG Shenyang Duty Free Merchandise Trading Co., Ltd.Hohhot cdfrefers toHohhot China Duty Free Merchandise Co., Ltd.Wuhan cdfrefers toCDFG (Wuhan) Airport Duty Free Merchandise Co., Ltd.Chengdu cdfrefers toCDFG Chengdu Airport Duty Free Merchandise Co., Ltd.Shenzhen Supply Chainrefers toChina Duty Free (Shenzhen) Supply Chain Technology Co., Ltd.CDFG Tradingrefers toCDFG (Beijing) Trading Co., Ltd.CDFG Digital Technologyrefers toCDFG (Hainan) Digital Technology Co., Ltd.Duty-free merchandiserefers to
Imported goods that are exempt from customs duties, value added tax (VAT) and consumption tax onimports and domestically produced goods that are subject to tax rebates (VAT and consumption tax)that are sold in duty-free shopsDuty-free storerefers to
With the approval of the General Administration of Customs, business units set up sales sites andsupervised warehouses for storing duty-free commodities in places approved by the State Councilof the people’s Republic of China or its authorized departments to sell duty-free commodities tospecified sales targets
TermDefinitionOffshore duty-free policyrefers to
The tax preference policy is to implement import duty-free shopping with limited value, limited quantityand limited variety for passengers leaving the island by plane, train, or ship (excluding departures),make payment in duty-free shops or approved online sales windows where the tax-free policy isimplemented, and pick up goods from the island at designated areas of airports, railway stations andports. The tax exemption policies for the island include customs duty, import VAT and consumptiontaxSASACrefers toThe State-owned Assets Supervision and Administration Commission of the State CouncilCSRCrefers toChina Securities Regulatory CommissionSSErefers toShanghai Stock ExchangeHKExrefers toStock Exchange of Hong Kong LimitedCompany Lawrefers toCompany Law of the People’s Republic of ChinaSecurities Lawrefers toSecurities Law of the People’s Republic of ChinaAnti-money Laundering Lawrefers toAnti-money Laundering Law of the People’s Republic of ChinaAnti-Unfair Competition Lawrefers toAnti-Unfair Competition Law of the People’s Republic of ChinaAdvertising Lawrefers toAdvertising Law of the People’s Republic of ChinaCybersecurity Lawrefers toCybersecurity Law of the People’s Republic of ChinaData Security Lawrefers toData Security Law of the People's Republic of ChinaPersonal Information Protection Lawrefers toPersonal Information Protection Law of the People’s Republic of ChinaAnti-monopoly Lawrefers toAnti-monopoly Law of the People's Republic of ChinaProtection of Rights and Interests ofConsumers Law
refers toLaw of the People's Republic of China on the Protection of Rights and Interests of ConsumersProduct Quality Lawrefers toProduct Quality Law of the People's Republic of ChinaBidding lawrefers toBidding Law of the People's Republic of ChinaImplementation Regulations for the Lawof the Tender Law
refers to Implementation Regulations for the Law of the Tender Law of the People's Republic of ChinaLabour Lawrefers toLabour Law of the People’s Republic of ChinaLabour Contract Lawrefers toLabour Contract Law of the People’s Republic of ChinaTrade Union Lawrefers toTrade Union Law of the People’s Republic of ChinaWork Safety Lawrefers toWork Safety Law of the People’s Republic of ChinaLaw on the Prevention & Control ofOccupational Diseases
refers toLaw of People’s Republic of China on the Prevention & Control of Occupational DiseasesFire Control Lawrefers toFire Control Law of the People's Republic of ChinaEnvironmental Protection Lawrefers toEnvironmental Protection Law of the People’s Republic of ChinaPrevention and Control of Air PollutionLaw
refers toLaw of the People's Republic of China on Prevention and Control of Air PollutionPrevention and Control of WaterPollution Law
refers toLaw of the People's Republic of China on Prevention and Control of Water PollutionPrevention and Control of EnvironmentalPollution Caused by Solid Wastes Law
refers toPrevention and Control of Environmental Pollution Caused by Solid WastesEnergy Conservation Lawrefers toEnergy Conservation Law of the People’s Republic of ChinaAnti-food Waste Lawrefers toAnti-food Waste Law of the People’s Republic of China
138139
Appendix
ESG MetricsEnvironmental Performance MetricMetricsTier 2 metricsUnit2025Resource usageElectricity
MWh81,441.39Natural Gas
m
651,573Diesel
Litre132,858Gasoline
Litre152,528Comprehensive energy consumptiontce11,206Comprehensive energy intensitytce/m
0.0156
Water consumptionm
565,780Water consumption intensitym
/m
0.79
Total amount of packaging materials used by the companyTon659.38Total amount of packaging materials used by the company in unit operating incomeTon/RMB1,000,0000.017
Procurement quantity of packaging materials by category
PaperTon467.50BoardTon–PlasticTon191.88GlassTon–MetalTon–Procurement quantity of packaging materials that were recyclable/non-recyclable
RecyclableTon516.03Non-recyclableTon143.35Procurement quantity of packaging materials that were reusable/non-reusable
ReusableTon571.23Non-reusableTon88.15Procurement quantity of plastic packaging materials by category
Proportion of recyclable plasticpackaging
%100Proportion of degradable plasticpackaging
%100
MetricsTier 2 metricsUnit2025Climate ChangeTotal GHG emissions Scope 1 and Scope 2
tCO
e27,530Including, GHG emissions (scope 1)
tCO
e2,940GHG emissions (Scope 2)
tCO
e24,590GHG emissions intensity for Scope 1 and 2tCO
e/m
0.04
GHG emissions (Scope 3)
tCO
e4,740Including, Category 6
Category 7
tCO
e4,680tCO
e60GHG emissions intensity for Scope 3 (Categories 6 and 7)
tCO
e/RMB1 million ofrevenue
0.09
Emission
Waste
Tunerkg35Selenium drumkg18Ink ribbonkg4
2 The statistic scope of GHG emissions includes the building of company’s headquarters, Haikou International Duty-Free Shopping Complex, Sanya
International Duty-Free Shopping Complex, Sanya logistics base, Sunrise Shanghai and Sunrise China, which have already covered the majority of thecompany’s operating area and revenue. The company will gradually expand the statistical scope in the following years.3 Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determinedwith reference to①China Energy Statistical Yearbook② IPCC 2006.4 Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which is determined with
reference to the Notice on Reporting and Verification Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025 issued bythe Ministry of Ecology and Environment of China.5 In addition to the already included Category 6 and Category 7, we are currently reviewing Scope 3 GHG emissions across other categories and will
disclose them when conditions permit.6 Scope 3 Category 6 GHG emissions (Business Travel) covers emissions from employee business trips via air travel, high-speed rail, ride-hailing/taxiservices, and hotel stays. These emissions are calculated using the spend-based method, with emission factors referenced from the China ProductsCarbon Footprint Factors Database.7 Scope 3 Category 7 GHG emissions (Employee Commuting) only includes GHG emissions generated by employees commuting via shuttle buses withinthe Hainan region. These emissions are calculated using the activity data method, with emission factors referenced from the following sources: the UKDepartment for Energy Security and Net Zero 2025 edition, the Announcement on the Release of 2024 Electricity Carbon Footprint Factor Data, and theAnnouncement on the Release of 2022 Electricity Carbon Dioxide Emission Factors issued by China’s Ministry of Ecology and Environment.1 The statistic scope of natural gas, electricity, diesel, gasoline and GHG emissions includes the building of company’s headquarters, Haikou International
Duty-Free Shopping Complex, Sanya International Duty-Free Shopping Complex, Sanya logistics base, Sunrise Shanghai and Sunrise China, whichhave already covered the majority of the company’s operating area and revenue. The company will gradually expand the statistical scope in the followingyears.140141
Appendix
Social Performance MetricsMetricsTier 2 metricsUnit2025HireTotal number of employeesPerson14,485The number of ethnic minority employeesPerson1,221The percentage of ethnic minority employees%8.43The percentage of ethnic minority employees in the management%5.45The number of foreign employeesPerson470The percentage of foreign employees%3.24The percentage of foreign employees in the management%0.91The number of physically challenged employeesPerson120Females in the Board of Directors%25Females in the management%38.18Females in the senior managerial roles%25Females in the middle managerial roles%39.22Share of women in management positions in revenue-generating functions (e.g. sales) as % of all suchmanagers
%37.08Total number of new employeesPerson1,567Internal hire rate%54.33Employee productivityCNY/Person352,679The number of employees by gender
MalePerson5,817FemalePerson8,668The number of employees by employee category
Senior managerial rolesPerson8Middle managerial rolesPerson102General employeesPerson14,375
The number of employees by age group
Over 60Person650-60Person40740-49Person1,80130-39Person6,61622-29Person5,277Below 22Person378
The number of employees by region
North ChinaPerson1,949East ChinaPerson2,223South ChinaPerson8,221Central ChinaPerson55Northwest ChinaPerson108Southwest ChinaPerson421Northeast ChinaPerson195Chinese Hong Kong SAR,Macau SAR and Taiwan region
Person812OverseasPerson501
MetricsTier 2 metricsUnit2025The number of new employees by gender
MalePerson569FemalePerson998The number of new employees by employee category
Senior managerial rolesPerson2Middle managerial rolesPerson16General employeesPerson1,549
The number of new employees by age group
Over 60Person050-60Person4040-49Person15230-39Person49822-29Person719Below 22Person158The number of new employees by ethnicity
Han ethnic groupPerson1,368Chinese ethnic minoritiesPerson106Chinese Hong Kong SAR,Macau SAR, Taiwan regionand overseas
Person93The number of new employees by nationality
Chinese nationalityPerson1,474Foreign nationalityPerson93Employee turnover rate by gender
Male%19.87Female%14.89Employee turnover rate by category
Senior managerial roles%0Middle managerial roles%0.98General employees%17.10
Employee turnover rate by age group
Over 60%45.5050-60%17.9440-49%13.0430-39%14.9322-29%21.51Below 22%11.27Employee turnover rate by geographical region
Chinese Mainland%17.15Chinese Hong Kong SAR,Macau SAR and Taiwan region
%17.98Overseas%18.54
142143
Appendix
MetricsTier 2 metricsUnit2025
Health and SafetyThe coverage of work-related injury insurance%100The total amount of work-related injury insurance expensesCNY10,00053.02Total expenses in operations safetyCNY10,0003,714Safety trainingsSession1,385Safety trainings participants10,000 People7.54Work-related fatalities
EmployeePerson0ContractorsPerson0The fatality rate of the company’s employees due to work-related injuries
%0Total number of work-related injury casesCase0Number of working days lost due to work-related injury
EmployeeDay0ContractorsDay0Lost-time injury frequency rate (per one million hours worked)
(LTIFR)
Employee%0Contractors%0Training and DevelopmentThe total expenditure of employee training and developmentCNYCNY 10.53 millionAverage cost of training and development per full-time employeeCNY/Person726.87Percentage of employees trained%100Percentage of employees trained by gender
Male%100Female%100Percentage of employees trained by category
Senior management%100Middle management%100General employee%100Total training hoursHour788,500Average training hours completed per employeeHour55.07Average training hours completed per employee by gender
MaleHour53.42FemaleHour56.71Average training hours completed per employee by category
Senior management
Hour138.22Middle managementHour114.23General employeeHour53.74Average training hours completed per employee by region
Chinese MainlandHour57.81Chinese Hong Kong SAR,Macau SAR and Taiwan region
Hour20.79OverseasHour20.10
MetricsTier 2 metricsUnit2025Supply Chain ManagementTotal number of brand partnersNumber760Number of brand partners by geographical region
Chinese MainlandNumber281Chinese Hong Kong SAR,Macau SAR and Taiwan region
Number207OverseasNumber272Total number of non-brand suppliersNumber1,642Number of non-brand suppliers by geographical region
Chinese MainlandNumber1,512Chinese Hong Kong SAR,Macau SAR and Taiwan region
Number95OverseasNumber35Classification of non-brand suppliers
Total number of Level Isuppliers
Number170
Supply Chain Security
Major risk incidents occurring in supply chainCases0Suppliers involved in major risk incidents along the supply chainNumber of suppliers0Individuals involved in major risk incidents along the supply chain.Person0Product liabilityPercentage of the total number of products sold or shipped that need tobe recalled for safety and wellness reasons
%0Total complaints receivedNumber20,281Average hours used to handle each complaintHour92As at the end of 2025, complaints handled as a proportion of totalcomplaints received during the year
%99.9
Intellectual property rightsNumber of IPRs, such as trademarks and copyrights at the end of 2025Item108Number of valid patentsItem19Community investment
Total expenditure on rural revitalisationFree assistance fundsCNY10,0001,688Number of various assistance projects implementedNumber16Total amount of assist in introducing assistance fundsCNY10,0001,005Number of people trainedPerson1,690Governance Performance Metrics
MetricsTier 2 metricsUnit2025Anti-corruptionAnti-corruption trainings for employees
SessionsTime7Coverage%100Anti-corruption trainings for management
SessionsTime3Coverage%100DurationHour3Anti-corruption trainings for director, including independent director
SessionsTime1Coverage%100
8 Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers * 100%;9 Lost-time injury frequency rate (per one million hours worked) (LTIFR) = number of lost time injuries/total number of man-hours worked in the accountingperiod × 1,000,00010 As far as the training courses organised by the company are concerned, there is no significant difference for employees at different categories; however,
the senior management participated in more intense trainings subject to the requirement on the training hours in the Regulations on the Education andTraining of Cadres issued by the CPC Central Committee.144145
Appendix
IndexShanghai Stock Exchange Sustainability Report (Trial) IndexNumberTopicRelevant section in this report
1Climate change tacklingAddressing Climate Change to Protect the Environment2Pollutant dischargeNo significant relevance
3Waste disposalEnvironmental Compliance Management
Green and Low-Carbon Operations for a Better Life4Ecosystem and biodiversity protectionGreen and Low-Carbon Operations for a Better Life
5Environmental compliance managementGreen and Low-Carbon Operations for a Better Life6Energy usageGreen and Low-Carbon Operations for a Better Life7Usage of water resourcesEnvironmental Compliance Management
Green and Low-Carbon Operations for a Better Life8Circular economyGreen and Low-Carbon Operations for a Better Life9Rural revitalizationEngaging in Charity Initiatives to Act as a Responsible Corporate10Contributions to the societyContinuing to Expand the Company’s Overseas Presence and Distribution Network as
a Global Travel Retailer for Selected Brands
Engaging in Charity Initiatives to Act as a Responsible Corporate11Innovation-drivenUpholding Original Beliefs and Mission to Ensure Trusted Business Operations
Operational Safety and Physical and Mental Health
Enhancing Our Comprehensive Training System to Support Employee Development
Green and Low-Carbon Operations for a Better Life12Ethics of science and technologyNo significant relevance
13Supply chain securityRobust, Green and Intelligent Supply Chain14Equal treatment to small and medium-sized enterprisesNo significant relevance15Safety and quality of products and servicesUpholding Original Beliefs and Mission to Ensure Trusted Business Operations16Data security and customer privacy protectionEnhancing Information Security and Implementing Privacy Protection17EmployeesEmployee Rights and Promoting Their Interests
Operational Safety and Physical and Mental Health
Enhancing Our Comprehensive Training System to Support Employee Development18Due diligenceRisk Management
19Communications with stakeholdersRobust Governance System for Long-term Stable Operations20Anti-commercial bribery and anti-corruptionEnhancing Risk Management and Internal Controls, and Upholding Business Ethics21Anti-unfair competitionEnhancing Risk Management and Internal Controls, and Upholding Business Ethics22Packaging material managementGreen and Low-Carbon Operations for a Better Life23Intellectual property protectionEnhancing Risk Management and Internal Controls, and Upholding Business Ethics24Excellent service experienceUpholding Original Beliefs and Mission to Ensure Trusted Business Operations25Collaborating with brand partners to promote
environmental protection
Green and Low-Carbon Operations for a Better Life
Notes:
1. The topics of “pollutant discharge” and “ethics of science and technology” have relatively low relevance with the company’s core business and are
neither of financial materiality nor of impact materiality.
2. The topic of “ecosystem and biodiversity protection” has relatively low relevance with the company’s core business and is neither of financial materiality
nor of impact materiality. However, it has also been taken into consideration for project development and construction, and disclosed in the report.
3. The company’s accounts payable (including bills payable) balance as at the end of 2025 did not exceed RMB 30 billion or account for more than 50% of
total assets, thereby not meeting the disclosure threshold for “Equal treatment to small and medium-sized enterprises.”
4. Due diligence details are disclosed in the relevant chapters.
ESG Metrics System for ESG Reports of Listed Companies Controlled by Central State-owned Enterprises Index
Disclosure of contentRelevant sectionBasic information of the Company and the ReportReport Preparation NotesESG governanceRobust Governance System for Long-term Stable OperationsESG risk and opportunitiesEnhancing Risk Management and Internal Controls, and Upholding Business EthicsStakeholder engagementRobust Governance System for Long-term Stable OperationsMateriality assessmentRobust Governance System for Long-term Stable Operations
Disclosure of content
LocationTier 1 MetricsTier 2 MetricsTier 3 Metrics
Environmental Aspect Metrics
ResourceConsumption
Water
Fresh water consumptionGreen and Low-Carbon Operations for a Better LifeRecycled water consumptionGreen and Low-Carbon Operations for a Better LifeIntensity of water consumptionGreen and Low-Carbon Operations for a Better LifeEnergy
Fossil fuel consumptionGreen and Low-Carbon Operations for a Better LifeTotal energy consumptionGreen and Low-Carbon Operations for a Better LifeEnergy consumption intensityGreen and Low-Carbon Operations for a Better LifePackaging materials
Packaging material usageGreen and Low-Carbon Operations for a Better LifePackaging material lightweight and reductionGreen and Low-Carbon Operations for a Better Life
Pollution Control
Effluents
Wastewater discharge complianceGreen and Low-Carbon Operations for a Better LifeWastewater management and reductionmeasures
Green and Low-Carbon Operations for a Better LifeExhaustsExhaust emission complianceGreen and Low-Carbon Operations for a Better LifeSolid waste
Legal compliance of solid waste disposalGreen and Low-Carbon Operations for a Better LifeGeneral industrial solid waste managementGreen and Low-Carbon Operations for a Better Life
Climate Change
Greenhouse gas emission
Sources and types of GHGsGreen and Low-Carbon Operations for a Better LifeGHG emissions management
Addressing Climate Change to Protect the Environment
Green and Low-Carbon Operations for a Better LifeScope 1 GHG emissionsGreen and Low-Carbon Operations for a Better LifeScope 2 GHG emissionsGreen and Low-Carbon Operations for a Better LifeGHG emissions intensityGreen and Low-Carbon Operations for a Better LifeEmission reductionmanagement
GHG mitigation management
Addressing Climate Change to Protect the Environment
Green and Low-Carbon Operations for a Better LifeClimate risk managementClimate risk managementGreen and Low-Carbon Operations for a Better LifeBiodiversity
Impacts of activities,products and services onbiodiversity
Impacts of activities, products and services onbiodiversity
Green and Low-Carbon Operations for a Better Life
146147
Appendix
Disclosure of content
LocationTier 1 MetricsTier 2 MetricsTier 3 Metrics
Resource andEnvironmentalManagementSystem Measures
Low-carbon developmenttarget and strategicmeasures
Low-carbon development target and strategicmeasures
Addressing Climate Change to Protect the EnvironmentResource managementmeasures
Water utilisation managementGreen and Low-Carbon Operations for a Better LifeMaterial usage managementGreen and Low-Carbon Operations for a Better LifeEnergy use and conservation managementGreen and Low-Carbon Operations for a Better Life
Green initiatives andmeasures
Green technologies and recycling
Addressing Climate Change to Protect the Environment
Green and Low-Carbon Operations for a Better LifeGreen building RenovationGreen and Low-Carbon Operations for a Better LifeGreen office and operations
Addressing Climate Change to Protect the Environment
Green and Low-Carbon Operations for a Better LifeGreen procurement and green supply chainmanagement
Robust, Green and Intelligent Supply ChainEnvironmental public welfare activitiesEngaging in Good Initiatives to Act as a Responsible CorporateGreen and low-carboncertification
Environmental management system certificationGreen and Low-Carbon Operations for a Better LifeEnvironmental legalcompliance
Environmental emergency response plan
Environmental Compliance ManagementOperational Safety and Physical and Mental HealthAddressing Climate Change to Protect the Environment
Social Aspect Metrics
Employee rights
Employee Recruitment AndEmployment
Corporate Recruitment Policy and ImplementationEmployee Rights and Promoting Their Interests
Employee StructureEmployee Rights and Promoting Their Interests
Avoiding Child Labor or Forced LaborEmployee Rights and Promoting Their InterestsEmployee Compensationand Benefits
Compensation Philosophy and PolicyEmployee Rights and Promoting Their Interests
Working Hours and Rest PeriodsEmployee Rights and Promoting Their Interests
Compensation and Benefits SecurityEmployee Rights and Promoting Their Interests
Employee Democratic ManagementEmployee Rights and Promoting Their Interests
Employee Health and Safety
Occupational Health and Safety Management for
Employees
Operational Safety and Physical and Mental Health
Employee Safety Risk Prevention and ControlOperational Safety and Physical and Mental Health
Response to Safety Accidents and Work-related
Injuries
Operational Safety and Physical and Mental Health
Employee Care and Assistance
Employee Rights and Promoting Their InterestsOperational Safety and Physical and Mental HealthEmployee Development andTraining
Employee Motivation and Promotion Policy
Enhancing Our Comprehensive Training System to SupportEmployee Development
Employee Education and Training
Enhancing Our Comprehensive Training System to SupportEmployee Development
Career Planning and Position Change Support for
Employees
Enhancing Our Comprehensive Training System to SupportEmployee DevelopmentEmployee SatisfactionEmployee TurnoverEmployee Rights and Promoting Their Interests
Disclosure of content
LocationTier 1 MetricsTier 2 MetricsTier 3 Metrics
Productand ServiceManagement
Product Safety and Quality
Production Standard Management Policies andMeasures
Upholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsOperational Safety and Physical and Mental HealthQuality Management
Upholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsProduct Recall and Withdrawal
Upholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsNegative Events Related to Products or Services
Upholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsCustomer Service &Advocacy
Customer Satisfaction
Upholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsCustomer Complaints and Handling
Upholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsCustomer Information and Privacy Protection
Enhancing Risk Management and Internal Controls, andUpholding Business EthicsR&D
R&D and Innovation Management System
Enhancing Risk Management and Internal Controls, andUpholding Business EthicsInnovation Achievements
Enhancing Risk Management and Internal Controls, andUpholding Business EthicsIntellectual Property Protection
Enhancing Risk Management and Internal Controls, andUpholding Business EthicsSupply ChainSecurity andManagement
Management of Suppliers
Supplier Selection and ManagementRobust, Green and Intelligent Supply ChainNumber and Distribution of SuppliersRobust, Green and Intelligent Supply ChainSupply Chain Management
Supply Chain Management Policies andMeasures
Robust, Green and Intelligent Supply ChainSupply Chain Security Assurance and EmergencyPlan
Robust, Green and Intelligent Supply Chain
National strategicresponse
Taxes paymentTax Payment SituationRefer to the Annual Report or other corporate documentsCommunity building
Policies and Measures for Participating in LocalCommunity Construction
Engaging in Good Initiatives to Act as a Responsible CorporateContribution and Impact on the Local CommunityEngaging in Good Initiatives to Act as a Responsible CorporateSocial welfare activities
Policies and Measures for Participating in SocialCharity Activities
Engaging in Good Initiatives to Act as a Responsible CorporateInvestment and Effectiveness of Participating inSocial Charity Activities
Engaging in Good Initiatives to Act as a Responsible CorporateConstruction of Accessible Environment
Upholding Original Beliefs and Mission to Ensure Trusted
Business Operations
National strategic response
Industrial Transformation
Upholding Original Beliefs and Mission to Ensure Trusted
Business OperationsRural Revitalisation and Regional CoordinatedDevelopment
Engaging in Good Initiatives to Act as a Responsible CorporateBelt and Road Initiative and Overseas Fulfillmentof Responsibilities
Continuing to Expand the Company’s Overseas Presence and
Distribution Network as a Global Travel Retailer for Selected
BrandsIndustry Features and Other Social ResponsibilityFulfillment
Upholding Original Beliefs and Mission to Ensure Trusted
Business Operations
Engaging in Good Initiatives to Act as a Responsible Corporate
148149
Appendix
Disclosure of content
LocationTier 1 MetricsTier 2 MetricsTier 3 Metrics
Governance Aspect Metrics
GovernanceStrategy andOrganizationalStructure
Governance Strategies andProcesses
Governance Strategy Formulation
Robust Governance System for Long-term Stable OperationsEnhancing Risk Management and Internal Controls, andUpholding Business EthicsGovernance Strategy Supervision Process
Robust Governance System for Long-term Stable OperationsEnhancing Risk Management and Internal Controls, andUpholding Business EthicsGovernance Strategy Approval and ReviewProcess
Robust Governance System for Long-term Stable OperationsEnhancing Risk Management and Internal Controls, andUpholding Business EthicsParty Building LeadershipRobust Governance System for Long-term Stable OperationsOrganisational compositionand functions
Ownership ResponsibilitiesRobust Governance System for Long-term Stable OperationsOrganisation Structure and Functions of theBoard of Directors, Supervisory Board, andManagement
Robust Governance System for Long-term Stable OperationsAppointment Procedures and Composition ofthe Board of Directors, Supervisory Board, andManagement
Refer to the Annual Report or other corporate documentsCompensation management
Compensation Plan for Directors and SupervisorsRefer to the Annual Report or other corporate documentsTransparency of Board CompensationRefer to the Annual Report or other corporate documentsReasonableness of Management CompensationRefer to the Annual Report or other corporate documentsStandardizegovernance
Internal controlInternal Audit
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsIntegrity in Construction
Integrity Construction System Norms
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsEffectiveness of Integrity Construction Measures
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsInvestor RelationsManagementand ShareholderRights
Investor RelationshipManagement
Investor Relations Management StrategyRobust Governance System for Long-term Stable OperationsInvestor CommunicationRobust Governance System for Long-term Stable OperationsConstruction of Investor Relations ManagementDepartment
Robust Governance System for Long-term Stable OperationsShareholders’ equity
General Meeting of Shareholders SituationRefer to the Annual Report or other corporate documentsShareholder Communication SituationRefer to the Annual Report or other corporate documentsShareholders’ Right to Know and Participate inDecision-making
Robust Governance System for Long-term Stable OperationsCreditors’ rights and benefitsCredit StatusRefer to the Annual Report or other corporate documentsTransparencyof informationdisclosure
Information disclosuresystem
Financial Information DisclosureRefer to the Annual Report or other corporate documentsNon-financial Information Disclosure2025 Environmental, Social and Governance ReportQuality of informationdisclosure
Regular Supervision, Audit, and Evaluation of AllDisclosed Information
Enhancing Risk Management and Internal Controls, and
Upholding Business Ethics
Complianceand RiskManagement
Compliance
Compliance Management System
Robust Governance System for Long-term Stable Operations
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsConstruction of Compliance System
Robust Governance System for Long-term Stable Operations
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsSpecific Process of Compliance Review
Robust Governance System for Long-term Stable Operations
Enhancing Risk Management and Internal Controls, and
Upholding Business Ethics
Risk management
Risk Identification and Early Warning
Robust Governance System for Long-term Stable Operations
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsRisk Control and Tracking
Robust Governance System for Long-term Stable Operations
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsRisk Reporting and Management
Robust Governance System for Long-term Stable Operations
Enhancing Risk Management and Internal Controls, and
Upholding Business Ethics
HKEX Appendix C2 Environmental, Social and Governance Reporting Code Index
AspectContentReport ContentPart B: Mandatory Disclosure Requirements
A statement from the boardStatement of the Board of DirectorsReporting PrinciplesReport Preparation NotesReporting BoundaryReport Preparation Notes
Part C: “Comply or explain” ProvisionsA. Environmental
Aspect A1: Emissions
A1
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on
the issuer relating to air and greenhouse gas emissions, discharges into waterand land, and generation of hazardous and non-hazardous waste.
Environmental Compliance ManagementKPI A1.1The types of emissions and respective emissions data.
Environmental Compliance Management
ESG MetricsKPI A1.3
Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g.per unit of production volume, per facility).
Environmental Compliance Management
ESG MetricsKPI A1.4
Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity(e.g. per unit of production volume, per facility).
Environmental Compliance ManagementKPI A1.5Description of emission target(s) set and steps taken to achieve them.Environmental Compliance ManagementKPI A1.6
Description of how hazardous and nonhazardous wastes are handled, and adescription of reduction target(s) set and steps taken to achieve them.
Environmental Compliance ManagementAspect A2: Use of ResourcesA2
General DisclosurePolicies on the efficient use of resources, including energy, water and other rawmaterials.
Environmental Compliance ManagementKPI A2.1
Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) intotal (kWh in ’000s) and intensity (e.g. per unit of production volume, per facility).
Environmental Compliance ManagementKPI A2.2
Water consumption in total and intensity (e.g. per unit of production volume, perfacility).
Environmental Compliance ManagementKPI A2.3Description of energy use efficiency target(s) set and steps taken to achieve them.Environmental Compliance ManagementKPI A2.4
Description of whether there is any issue in sourcing water that is fit for purpose,water efficiency target(s) set and steps taken to achieve them.
Environmental Compliance ManagementKPI A2.5
Total packaging material used for finished products (in tonnes) and, if applicable,with reference to per unit produced.
Green and Low-Carbon Operations for a Better LifeAspect A3: The Environment and Natural ResourcesA3
General DisclosurePolicies on minimising the issuer’s significant impacts on the environment andnatural resources.
Environmental Compliance Management
Addressing Climate Change to Protect the
Environment
Green and Low-Carbon Operations for a Better LifeKPI A3.1
Description of the significant impacts of activities on the environment and naturalresources and the actions taken to manage them.
Environmental Compliance Management
Addressing Climate Change to Protect the
Environment
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AspectContentReport ContentB. Social
Employment and Labour Practices
Aspect B1: EmploymentB1
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact onthe issuer
Employee Rights and Promoting Their InterestsKPI B1.1
Total workforce by gender, employment type (for example, full- or part-time), agegroup and geographical region.
Employee Rights and Promoting Their InterestsKPI B1.2Employee turnover rate by gender, age group and geographical region.Employee Rights and Promoting Their InterestsAspect B2: Health and SafetyB2
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact onthe issuer relating to providing a safeworking environment and protecting employees from occupational hazards.
Operational Safety and Physical and Mental HealthKPI B2.1
Number and rate of work-related fatalities occurred in each of the past three yearsincluding the reporting year.
Operational Safety and Physical and Mental HealthKPI B2.2Lost days due to work injury.Operational Safety and Physical and Mental HealthKPI B2.3
Description of occupational health and safety measures adopted, and how theyare implemented and monitored.
Operational Safety and Physical and Mental HealthAspect B3: Development and TrainingB3
General DisclosurePolicies on improving employees’ knowledge and skills for discharging duties atwork. Description of training activities.
Upholding Original Beliefs and Mission to Ensure
Trusted Business Operations
Enhancing Our Comprehensive Training System to
Support Employee Development
Operational Safety and Physical and Mental HealthKPI B3.1
The percentage of employees trained by gender and employee category (e.g.senior management, middle management).
Employee Rights and Promoting Their InterestsKPI B3.2
The average training hours completed per employee by gender and employeecategory.
Enhancing Our Comprehensive Training System to
Support Employee DevelopmentAspect B4: Labour StandardsB4
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on
the issuer relating to preventing childand forced labour
Employee Rights and Promoting Their InterestsKPI B4.1
Description of measures t o review employment practices to avoid child and forcedlabour.
Employee Rights and Promoting Their InterestsKPI B4.2Description of steps taken to eliminate such practices when discovered.Employee Rights and Promoting Their Interests
AspectContentReport ContentOperating PracticesAspect B5: Supply Chain ManagementB5
General DisclosurePolicies on managing environmental and social risks of the supply chain.
Robust, Green and Intelligent Supply ChainKPI B5.1Number of suppliers by geographical region.Robust, Green and Intelligent Supply ChainKPI B5.2
Description of practices relating to engaging suppliers, number of supplierswhere the practices are being implemented, and how they are implemented andmonitored.
Upholding Original Beliefs and Mission to Ensure
Trusted Business Operations
Robust, Green and Intelligent Supply ChainKPI B5.3
Description of practices used to identify environmental and social risks along thesupply chain, and how they are implemented and monitored.
Robust, Green and Intelligent Supply ChainKPI B5.4
Description of practices used to promote environmentally preferable products andservices when selecting suppliers, and how they are implemented and monitored.
Robust, Green and Intelligent Supply Chain
Green and Low-Carbon Operations for a Better LifeAspect B6: Product ResponsibilityKPI B6
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on
the issuer relating to health and safety, advertising, labelling and privacy mattersrelating to products and services provided and methods of redress.
Upholding Original Beliefs and Mission to Ensure
Trusted Business OperationsKPI B6.1
Percentage of total products sold or shipped subject to recalls for safety and healthreasons.
Upholding Original Beliefs and Mission to Ensure
Trusted Business OperationsKPI B6.2
Number of products and service related complaints received and how they aredealt with.
Upholding Original Beliefs and Mission to Ensure
Trusted Business OperationsKPI B6.3
Description of practices relating to observing and protecting intellectual propertyrights.
Enhancing Risk Management and Internal Controls,
and Upholding Business EthicsKPI B6.4Description of quality assurance process and recall procedures.
Upholding Original Beliefs and Mission to Ensure
Trusted Business OperationsKPI B6.5
Description of consumer data protection and privacy policies, and how they areimplemented and monitored.
Enhancing Risk Management and Internal Controls,
and Upholding Business EthicsAspect B7: Anti-corruptionB7
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on
the issuer relating to bribery, extortion, fraud and money laundering.
Enhancing Risk Management and Internal Controls,
and Upholding Business EthicsKPI B7.1
Number of concluded legal cases regarding corrupt practices brought against theissuer or its employees during the reporting period and the outcomes of the cases.
Enhancing Risk Management and Internal Controls,
and Upholding Business EthicsKPI B7.2
Description of preventive measures and whistle-blowing procedures, and how theyare implemented and monitored.
Enhancing Risk Management and Internal Controls,
and Upholding Business EthicsKPI B7.3Description of anti-corruption training provided to directors and staff.
Enhancing Risk Management and Internal Controls,
and Upholding Business EthicsCommunityAspect B8: Community InvestmentB8
General DisclosurePolicies on community engagement to understand the needs of the communitieswhere the issuer operates and to ensure its activities take into consideration thecommunities’ interests.
Engaging in Good Initiatives to Act as a Responsible
CorporateKPI B8.1
Focus areas of contribution (e.g. education, environmental concerns, labour needs,health, culture, sport).
Engaging in Good Initiatives to Act as a Responsible
Corporate
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AspectContentReport Content
KPI B8.2Resources contributed (e.g. money or time) to the focus area.
Engaging in Good Initiatives to Act as a ResponsibleCorporate
Part D: Climate-related Disclosures(I) Governance
The governance body(s) responsible for oversight of climate-related risks andopportunities
Addressing Climate Change to Protect theEnvironmentManagement’s role in the governance processes, controls and procedures used tomonitor, manage and oversee climate-related risks and opportunities
Addressing Climate Change to Protect theEnvironment
(II) Strategy
Climate-related risks and opportunities
Addressing Climate Change to Protect theEnvironmentBusiness model and value chain
Addressing Climate Change to Protect theEnvironmentStrategy and decision-makingNote 1Financial position, financial performance and cash flowsNote 2Climate resilience
Addressing Climate Change to Protect theEnvironment(III) RiskManagement
The processes and related policies it uses to identify, assess, prioritise and monitorclimate-related risks
Addressing Climate Change to Protect theEnvironmentThe processes the issuer uses to identify, assess, prioritise and monitor climate-related opportunitiesThe extent to which, and how, the processes for identifying, assessing, prioritisingand monitoring climate-related risks and opportunities are integrated into andinform the issuer’s overall risk management process
(IV) Metrics andTargets
Greenhouse gas emissions
Addressing Climate Change to Protect theEnvironmentClimate-related transition risks
Addressing Climate Change to Protect the EnvironmentNote 3Climate-related physical risks
Addressing Climate Change to Protect the EnvironmentNote 3Climate-related opportunities
Addressing Climate Change to Protect the EnvironmentNote 3Capital deploymentNote 4Internal carbon pricesNote 4RemunerationNote 4Industry-based metrics
IFRS Sustainability Disclosure Standards – Index ofIndustry-based Disclosure RequirementsClimate-related targetsNote 4
Note 1: The company has identified the preliminary impacts of climate-related risks and opportunities and implemented corresponding mitigation measures.
However, a formal transition plan has not yet been developed. This will be initiated when conditions permit and subsequently disclosed.Note 2: The company has conducted a preliminary qualitative assessment of the financial impacts of climate change. Given the rapid growth of online
operations in recent years, which may offset declines in the offline business affected by climate change, the company has not yet conducted
quantitative financial impact calculations. This will be initiated when conditions permit and subsequently disclosed.Note 3: The company has identified preliminary climate-related physical risks, transition risks, and opportunities. Given the rapid growth of online operations in
recent years, which may offset declines in the offline business affected by climate change, the company has not yet conducted separate calculations
for the amount or percentage of assets or business activities particularly vulnerable to these climate-related factors. This will be initiated when
conditions permit and subsequently disclosed.Note 4: The company has not yet integrated climate-related risks and opportunities into capital allocation, internal carbon pricing, remuneration policies, or
climate-related target setting. These will be advanced when practicable and disclosed in future reports.
IFRS Sustainability Disclosure Standards – Index of Industry-based Disclosure RequirementsTopicsMetricsUnit2025Energy Management in Retail& Distribution
Total energy consumedton of standard coalTable of Environment KPIsPercentage grid electricity%89%Percentage renewable%Continuous improvement on statisticActivity MetricMetricsUnit2025Number of
Retail locationsNumberCompany overviewDistribution centresNumber20Total area
Retail spaceSquare metres (m?)Continuous improvement on statisticDistribution centresSquare metres (m?)Robust, Green and Intelligent Supply ChainGRI Standards IndexGRI StandardDisclosureLocationGRI 1: Foundation 20211 Foundation 2021
Report foundation, including GRI content index and instructionsfor use, etc
Report Preparation NotesGRI Standards IndexGRI 2 General Disclosures 2021The organization and its reporting practices2-1Organizational detailsReport Preparation Notes2-2Entities included in the organization’s sustainability reportingReport Preparation Notes2-3Reporting period, frequency and contact pointReport Preparation Notes2-4Restatements of informationNo relevant incidents during the reporting period.2-5External assuranceNeed further improvementActivities and workers2-6Activities, value chain and other business relationshipsCompany Overview2-7Employees
Employee Rights and Promoting Their InterestsOperational Safety and Physical and Mental HealthEnhancing Our Comprehensive Training System to SupportEmployee Development2-8Workers who are not employeesOperational Safety and Physical and Mental Health
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Appendix
GRI StandardDisclosureLocationGovernance2-9Governance structure and compositionRobust Governance System for Long-term Stable Operations2-10Nomination and selection of the highest governance bodyRefer to the Annual Report.2-11Chair of the highest governance bodyRefer to the Annual Report.2-12
Role of the highest governance body in overseeing themanagement of impacts
Statement of the Board of DirectorsRobust Governance System for Long-term Stable Operations2-13Delegation of responsibility for managing impactsRefer to the Annual Report.2-14Role of the highest governance body in sustainability reporting
Statement of the Board of DirectorsRobust Governance System for Long-term Stable Operations2-15Conflicts of interestRefer to the Annual Report.2-16Communication of critical concernsRobust Governance System for Long-term Stable Operations2-17Collective knowledge of the highest governance body
Statement of the Board of DirectorsRobust Governance System for Long-term Stable Operations2-18Evaluation of the performance of the highest governance bodyRefer to the Annual Report.2-19Remuneration policiesRefer to the Annual Report.2-20Process to determine remunerationRefer to the Annual Report.2-21Annual total compensation ratioRefer to the Annual Report.Strategy, policies and practices2-22Statement on sustainable development strategy
Statement of the Board of DirectorsRobust Governance System for Long-term Stable Operations2-23Policy commitments
Statement of the Board of DirectorsRobust Governance System for Long-term Stable OperationsEnhancing Risk Management and Internal Controls, andUpholding Business EthicsEmployee Rights and Promoting Their Interests2-24Embedding policy commitments
Statement of the Board of DirectorsRobust Governance System for Long-term Stable OperationsEnhancing Risk Management and Internal Controls, andUpholding Business EthicsUpholding Original Beliefs and Mission to Ensure TrustedBusiness Operations2-25Processes to remediate negative impacts
Enhancing Risk Management and Internal Controls, andUpholding Business EthicsUpholding Original Beliefs and Mission to Ensure TrustedBusiness Operations2-26Mechanisms for seeking advice and raising concerns
Upholding Original Beliefs and Mission to Ensure TrustedBusiness Operations2-27Compliance with laws and regulations
Robust Governance System for Long-term Stable OperationsUpholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsEmployee Rights and Promoting Their InterestsGreen and Low-Carbon Operations for a Better Life2-28Membership associationsRobust Governance System for Long-term Stable Operations
GRI StandardDisclosureLocationStakeholder engagement2-29Approach to stakeholder engagementRobust Governance System for Long-term Stable Operations2-30Collective bargaining agreementsEmployee Rights and Promoting Their InterestsGRI 3: Material Topics 20213-1Process to determine material topicsRobust Governance System for Long-term Stable Operations3-2List of material topicsRobust Governance System for Long-term Stable Operations3-3Management of material topicsRobust Governance System for Long-term Stable OperationsGRI 201: Economic Performance 2016201-1Direct economic value generated and distributed
Key Sustainability Performance MetricsRefer to the Annual Report.201-2
Financial implications and other risks and opportunities due toclimate change
Addressing Climate Change to Protect the Environment201-3Defined benefit plan obligations and other retirement plansEmployee Rights and Promoting Their Interests201-4Financial assistance received from governmentRefer to the Annual Report.GRI 202: Market Presence 2016202-1
Ratios of standard entry level wage by gender compared tolocal minimum wage
Employee Rights and Promoting Their Interests202-2
Proportion of senior management hired from the localcommunity
Need further improvementGRI 203: Indirect Economic Impacts 2016203-1Infrastructure investments and services supportedEngaging in Good Initiatives to Act as a Responsible Corporate203-2Significant indirect economic impactsEngaging in Good Initiatives to Act as a Responsible CorporateGRI 204: Procurement Practices 2016204-1Proportion of spending on local suppliersNeed further improvementGRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruptionNeed further improvement205-2
Communication and training about anticorruption policies andprocedures
Enhancing Risk Management and Internal Controls, and
Upholding Business Ethics205-3Confirmed incidents of corruption and actions takenNo relevant incidents during the reporting period.GRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
Enhancing Risk Management and Internal Controls, and
Upholding Business EthicsGRI 207: Tax 2019207-1Approach to taxRefer to the Annual Report.207-2Tax governance, control, and risk managementRefer to the Annual Report.207-3
Stakeholder engagement and management of concerns relatedto tax
Robust Governance System for Long-term Stable Operations207-4Country-by-country reportingRefer to the Annual Report.
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GRI StandardDisclosureLocationGRI 301: Materials 2016301-1Materials used by weight or volumeGreen and Low-Carbon Operations for a Better Life301-2Recycled input materials usedGreen and Low-Carbon Operations for a Better Life301-3Reclaimed products and their packaging materialsGreen and Low-Carbon Operations for a Better LifeGRI 302: Energy 2016302-1Energy consumption within the organizationGreen and Low-Carbon Operations for a Better Life302-2Energy consumption outside of the organizationNeed further improvement302-3Energy intensityGreen and Low-Carbon Operations for a Better Life302-4Reduction of energy consumptionGreen and Low-Carbon Operations for a Better Life302-5Reductions in energy requirements of products and servicesGreen and Low-Carbon Operations for a Better LifeGRI 303: Water and Effluents 2018303-1Interactions with water as a shared resourceGreen and Low-Carbon Operations for a Better Life303-2Management of water discharge – related impactsGreen and Low-Carbon Operations for a Better Life303-3Water withdrawalGreen and Low-Carbon Operations for a Better Life303-4Water dischargeNeed further improvement303-5Water consumptionNeed further improvementGRI 304: Biodiversity 2016304-1
Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas
Green and Low-Carbon Operations for a Better Life304-2
Significant impacts of activities, products and services onbiodiversity
Green and Low-Carbon Operations for a Better Life304-3Habitats protected or restoredGreen and Low-Carbon Operations for a Better Life304-4
IUCN Red List species and national conservation list specieswith habitats in areas affected by operations
No relevant incidents during the reporting period.GRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissionsGreen and Low-Carbon Operations for a Better Life305-2Energy indirect (Scope 2) GHG emissionsGreen and Low-Carbon Operations for a Better Life305-3Other indirect (Scope 3) GHG emissionsGreen and Low-Carbon Operations for a Better Life305-4GHG emissions intensityGreen and Low-Carbon Operations for a Better Life305-5Reduction of GHG emissionsNeed further improvement305-6Emissions of ozone-depleting substances (ODS)Need further improvement305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significantair emissions
Need further improvementGRI 306: Waste 2020306-1Waste generation and significant waste related impactsGreen and Low-Carbon Operations for a Better Life306-2Management of significant waste related impactsGreen and Low-Carbon Operations for a Better Life306-3Waste generatedEnvironmental Compliance Management306-4Waste diverted from disposalNeed further improvement306-5Waste directed to disposalNeed further improvement
GRI StandardDisclosureLocationGRI 308: Supplier Environmental Assessment 2016308-1New suppliers that were screened using environmental criteriaRobust, Green and Intelligent Supply Chain308-2New suppliers that were screened using environmental criteriaNo relevant incidents during the reporting period.GRI 401: Employment 2016401-1New employee hires and employee turnoverEmployee Rights and Promoting Their Interests401-2
Benefits provided to full-time employees that are not providedto temporary or part-time employees
Employee Rights and Promoting Their Interests401-3Parental leaveEmployee Rights and Promoting Their InterestsGRI 402: Labor/Management Relations 2016402-1Minimum notice periods regarding operational changesNeed further improvementGRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management systemOperational Safety and Physical and Mental Health403-2Hazard identification, risk assessment, and incident investigationOperational Safety and Physical and Mental Health403-3Occupational health servicesOperational Safety and Physical and Mental Health403-4
Worker participation, consultation, and communication onoccupational health and safety
Operational Safety and Physical and Mental Health403-5Worker training on occupational health and safetyOperational Safety and Physical and Mental Health403-6Promotion of worker health
Employee Rights and Promoting Their Interests
Operational Safety and Physical and Mental Health403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
Operational Safety and Physical and Mental Health403-8
Workers covered by an occupational health and safetymanagement system
Operational Safety and Physical and Mental Health403-9Work-related injuriesOperational Safety and Physical and Mental Health403-10Work-related ill healthOperational Safety and Physical and Mental HealthGRI 404: Training and Education 2016404-1Average hours of training per year per employee
Enhancing Our Comprehensive Training System to Support
Employee Development404-2
Programs for upgrading employee skills and transitionassistance programs
Enhancing Our Comprehensive Training System to Support
Employee Development404-3
Percentage of employees receiving regular performance andcareer development reviews
Enhancing Our Comprehensive Training System to Support
Employee DevelopmentGRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employees
Robust Governance System for Long-term Stable Operations
Employee Rights and Promoting Their Interests405-2Ratio of basic salary and remuneration of women to menNeed further improvementGRI 406: Non-discrimination 2016406-1Incidents of discrimination and corrective actions takenNo relevant incidents during the reporting period.GRI 407: Freedom of Association and Collective Bargaining 2016407-1
Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
No relevant incidents during the reporting period.GRI 408: Child Labor 2016408-1
Operations and suppliers at significant risk for incidents of childlabor
No relevant incidents during the reporting period.GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers at significant risk for incidents offorced or compulsory labor
No relevant incidents during the reporting period.
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GRI StandardDisclosureLocation
GRI 410: Security Practices 2016410-1
Security personnel trained in human rights policies orprocedures
Not applicable.GRI 411: Rights of Indigenous Peoples 2016411-1Incidents of violations involving rights of indigenous peoplesNo relevant incidents during the reporting period.GRI 413: Local Communities 2016413-1
Operations with local community engagement, impactassessments, and development programs
Engaging in Good Initiatives to Act as a Responsible Corporate413-2
Operations with significant actual and potential negative impactson local communities
No relevant incidents during the reporting period.GRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteriaRobust, Green and Intelligent Supply Chain414-2Negative social impacts in the supply chain and actions takenNo relevant incidents during the reporting period.GRI 415: Public Policy 2016415-1Political contributionsNot applicable.GRI 416: Customer Health and Safety 2016416-1
Assessment of the health and safety impacts of product andservice categories
Upholding Original Beliefs and Mission to Ensure Trusted
Business Operations416-2
Incidents of non-compliance concerning the health and safetyimpacts of products and services
No relevant incidents during the reporting period.GRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labeling
Upholding Original Beliefs and Mission to Ensure Trusted
Business Operations417-2
Incidents of non-compliance concerning product and serviceinformation and labeling
No relevant incidents during the reporting period.417-3
Incidents of non-compliance concerning marketingcommunications
No relevant incidents during the reporting period.GRI 418: Customer Privacy 2016418-1
Substantiated complaints concerning breaches of customerprivacy and losses of customer data
No relevant incidents during the reporting period.