Environmental, Social and
Governance Report
2024
China Tourism Group Duty Free Corporation LimitedStock Abbreviation：CTG DUTY-FREEA Share Stock Code：601888.SHH Share Stock Code：01880.HK
China Tourism Group Duty Free Corporation Limited 2024 Environmental, Social and Governance Report
About this ReportEnvironmental, Socialand Governance Report
Stock Abbreviation: CTG DUTY-FREEStock Code: 601888.SH 01880.HK
China Tourism Group DutyFree Corporation Limited
2024
Reporting IntroductionThis report is the fourth Environmental, Social and Governance Report (hereinafter “ESG Report”, “this Report” or “the Report”) issued byChina Tourism Group Duty Free Corporation Limited (hereinafter “CTG DUTY-FREE”, “the company”, or “we”).Reporting ScopeUnless otherwise stated, the scope of content disclosed in the ESG Report is consistent with that of the company’s Annual Report.Reporting PeriodThe period of this Report is from 1 January to 31 December 2024. To enhance the readability of the Report, some contents or data refer toprevious years or extend to the date of disclosure of the Report.Source of InformationThe information and data provided in the Report have been obtained from our internal documents, statistical reports and ESG-relatedperformance summaries. Unless otherwise speci?ed, the currencies involved in the Report are all measured in CNY.Reporting GuidanceThis Report is prepared in accordance with theESG Metrics System for ESG Reports of Listed Companies Controlled by CentralState-owned Enterprisesissued by the State-owned Assets Supervision and Administration Commission of the State Council (the “SASAC”),Sustainability Report (Trial)issued by the Shanghai Stock Exchange, and theEnvironmental, Social and Governance Reporting Code(“ESGCode”), Appendix C2 to theRules Governing the Listing of Securities on the Main Boardof The Stock Exchange of Hong Kong Limited(“Hong Kong Stock Exchange”), and with reference to the following rules:
?TheGuidelines for State-owned Enterprises Directly under the Central Government on Ful?lling Corporate Social Responsibilities
issued by the SASAC;?TheGuidelines No. 1 for Application of Self-regulation Rules for Listed Companies – Standardised Operationissued by the ShanghaiStock Exchanges (the “SSE”);?TheGuidelines 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”)?TheTen Principles of the United Nations Global Compact
? United Nations Sustainable Development Goals (SDGs)
Reporting Principles
Materiality: We identi?ed key ESG issues through materiality assessment, the process and results of which have been disclosed in thisreport.Quantitative: For those indicators need calculation, calculation sources have been disclosed in this Report.Balance: This ESG report should provide an unbiased picture of the company’s performance, and to ensure that the information disclosedtruthfully re?ects the company’s performance in environmental, social and governance aspects.Consistency: We follow a consistent approach for disclosure statistics and maintain the same disclosure statistics for this report in respect ofinformation previously disclosed in the report for last year to the largest extent.
About This Report
Release Form of the Report
The electronic version of this Report can be downloaded from the company’s of?cial website or obtained byfollowing the WeChat official account of “CTG DUTY-FREE Investor Relations”. This Report is published inSimpli?ed Chinese, Traditional Chinese and English. In the event of any discrepancy between the three versions,the Simpli?ed Chinese version shall prevail.
CONTENTS
About This Report
Letter from the Chairman
Key SustainabilityPerformance Metrics
Honors and Awards
Statement of theBoard of Directors
Company Overview
Sustainability Milestones byMonth in 2024
Appendix
Glossary of Terms
ESG Metrics
Index
Meeting Our Responsibilitiesin Rural Revitalisation
With a Dual Focus, Co-Creatinga New Development Blueprint
Sailing with Momentum:
A Decade of Excellence
Topic 1Working Together to PromoteProsperity and Grow OurFootprint in Hainan
Conserving Energy and ReducingCarbon throughout theEntire Building Process
Combatting the Typhoon withDetermination and United Efforts
Green Alliance: Joining Hands withBrands to Open a New Chapter
Topic 2Pursuing a Green Future andCarrying Out ExcellentESG Initiatives
ESG Strategy: Clarifying KeyPriorities
Robust Governance System forLong-term Stable Operations
Complying with CommercialEthics to Reinforce Internal ControlCompliance
Principles ofGovernance
Upholding Original Beliefsand Mission to EnsureTrusted Business Operations
Robust, Green andIntelligent Supply Chain
Setting the Industry Benchmark forHigh-quality Development
Engaging in Charity Initiatives toAct as a Responsible Corporate
Prosperity
Employee Rights andPromoting Their Interests
Diversified Training toPromote Staff Development
Operational Safety andPhysical and Mental Health
People
Planet
Addressing Climate Change toProtect the Environment
Focusing on New Quality ProductiveForces to Develop a Circular Economy
Green and Low-CarbonOperations for a Better Life
Letter from the Chairman
Mr. FAN YunjunChairman
Letter from the Chairmanunder the circular economy model. To put our commitmentto green and low-carbon operations into practice, we haveimplemented a range of initiatives, such as reducing packagingmaterials and monitoring their utilisation. In addition, starting withdigitalising the devices that we use to deliver services, we havecarried out several comprehensive customer service improvementprogrammes, and we have put in place a standardised customerservice management system that features unified managementpractices, operational practices and standards.
Joining hands with stakeholders to drive green developmentWe are well aware that cooperation with stakeholders isessential to our sustainability. In 2024, the company continuedto deepen cooperation with brands, suppliers and consumers,advocate a green philosophy among consumers, and promotesustainability across the industry. We worked with brands to carryout environmental protection activities and marketed a rangeof ESG-certified products from suppliers to spread the “GreenCTG DUTY-FREE” message. At the same time, to respond to thechallenges presented by climate change, the company reducedits carbon emissions and improved its climate adaptability throughinitiatives such as green buildings and renewable energy. Inthe fight against Typhoon Yagi, we worked together to devisescience-based responses, which demonstrated our ability toeffectively safeguard against, mitigate and recover from disastersand further improved the company’s climate resilience.Implementing a people-oriented approach to ensureemployee welfareOur people are the company’s most valuable assets. In 2024,we continued to optimise systems that are designed to protectemployees’ rights and interests. We attach great importance toour people’s physical and mental health and provide them witha variety of training courses and career opportunities. During theyear, more than 830 key training programmes were implementedto help employees grow. We adhere to a safety-focused approachto production and operations to ensure that employees areworking in a safe and healthy environment. At the same time,the company actively promotes diversity and equal employmentand is committed to creating an inclusive and diverse corporateculture, so that every employee can enjoy a sense of belonging andachievement.
Joining hands to create a bright future
The pursuit of sustainability is a long-term, arduous task that wewill not be able to accomplish without our stakeholders’ supportand cooperation. Going forward, in 2025, we will be presented withboth challenges and opportunities. As a competitive and in?uentialplayer in the global travel retail industry, we will continue to worktogether with various parties to meet challenges, drive prosperityand deepen sustainability practices. In this way, we will strike abalance in pursuing environmental, social and economic results,respond to stakeholders’ expectations, and work towards a betterfuture in which humans coexist with nature.
Mr. FAN Yunjun
ChairmanMarch 2025
Dear stakeholders:
2024 marked the 40th anniversary of CTG DUTY-FREE, a keymilestone for the company. It was also a significant year for thecompany’s efforts to actively align itself with national strategies andforge ahead in pursuit of innovation and breakthroughs. Duringthe year, we acted in line with our corporate mission: Share thejoy of shopping and extend the enjoyment of travel. We are fullycommitted to pursuing high-quality development and took thecompany’s ESG and sustainability practices to new heights. Onbehalf 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.Responding to the government’s call and staying true toour original aspiration
We are aware at all times of our mission to serve nationalstrategies, as evidenced by the concrete actions we have takento fulfil our responsibilities in this regard. In 2024, the companycontinued to expand its strategic footprint in Hainan and contributetowards local efforts to build Hainan into a free trade port. To thisend, we added greater variety to our offshore duty-free brands,further improved our services and cultivated a more convenientshopping experience. At the same time, the company activelyresponded to the Belt and Road Initiative and executed itsoverseas business plans in an orderly manner. We opened newduty-free stores in various countries – including Singapore, SriLanka and Japan – to help Chinese brands go global. In addition,we continued to promote rural revitalisation by providing assistancefor our two paired counties. Meanwhile, our Xing Lv Yun Pin storesare selling local distinctive agricultural products to increase thevisibility of these goods in the national market and drive commonprosperity.
Engaging in trusted business operations and providingexcellent services
In 2024, we actively responded to President Xi’s call to turn policiesinto growth drivers. In line with our business philosophy, which isfocused on engaging in trusted business operations and providingexcellent services, we pursued service innovation to promote theupgrading of duty-free consumption and recognised outstandingstores in Sanya International Duty-Free Shopping Complexas demonstration sites for integrity and quality. We attachedimportance to building an integrity-oriented business system andestablishing a system of standards for services. In order to move inline with our global peers, we put forward the “Do everything in ourpower to ensure consumers are comfortable with shopping withus globally” value proposition after consulting with our employees.Meanwhile, we have put in place a service value system featuringeight categories of services and 98 standards as part of our effortto build our shopping complexes – including Sanya InternationalDuty-Free Shopping Complex – into models for the domestic travelretail industry.
Upholding integrity and pursuing innovation to empowersustainability
We steadfastly focus on our main responsibilities and activitiesand embrace technology to keep pace with the times. In 2024,the company adopted a pragmatic approach to technologicalinnovation. We increased R&D spend and leveraged emergingtechnologies such as 5G, Internet of Things, robots, big data, andAR/VR to drive efficiency and digitalisation across the company.At the same time, the company is actively exploring opportunities
Key Sustainability Performance Metrics
* Except otherwise speci?ed, all the above are data as of the end of 2024 or for the year 2024.
MarketFirst class
First-class travel retailer in the worldRanked No. 1 among travel retailers in the “Top 500Most Valuable Brands in China” rankings for the 21stconsecutive year
363,000
Selling over 363,000 SKUs of goods
Ranked firstRanked No.1 among China’s duty-free commodityoperatorsRanked No.1 among China’s travel retailers
Top twoWe operate the two largest duty-free shops in the world –Haikou International Duty-Free Shopping Complex andSanya International Duty-Free Shopping Complex
Most comprehensive
With full coverage on on-board aircrafts, borders,foreign ships, passenger stations, railway stations,diplomatists, cruises and downtown channels, we arethe travel retail operator with the complete types ofduty-free shops and the largest number of retail storesin a single country worldwide
1,524 well-known brands
About 1,524 well-known brands in the world are inour duty-free shops
Nearly 200 millionThe company provides duty-free commodity servicesto nearly 200 million domestic and foreign touristsevery year
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
Green building certificationsSanya International Duty-Free Shopping Complex ZoneC obtained 2-star Green Building certi?cation; HaikouInternational Duty-Free Shopping Complex (BlockNo.4) obtained 2-star Green Building pre-certi?cation
Social
CNY21.77 millionWe invested CNY21.77 million in operation safety,organised 770 safety trainings for 32,300 participants16,027 employeesThere are 16,027 total employees as at the end of2024
100% training coverage,more than 633,700 traininghours
The employee training coverage reaches 100%, withmore than 633,700 training hours in total.
57.7%
Females in employees account for 57.7%, andfemales in the Board of Directors and the SupervisoryCommittee account for 36.36%, females in the seniormanagerial roles account for 25% and in middlemanagerial roles account for 37.25%.
CNY13.72 million
Spent CNY13.72 million in free aid in rural revitalization,implemented 15 assistance projects and helped raiseCNY6.42 million in assistance funds
38.68 million
38.68 million registered cdf members
Environmental31 certifications31 stores/counters have received LEED certi?cations,including 29 LEED Gold certi?cations and 2 LEED Slivercerti?cations
60.53 million
The company provided 60.53 million shopping bagsthat meet environmental requirements in the past threeyears, and effectively reduced the generation of non-degradable plastic waste
0.0162 tons of standard
coal/m
0.0162 tons of standard coal/m
of comprehensiveenergy intensity
0.04 tonnes of carbon
dioxide equivalentGreenhouse gas emissions per square metre are 0.04tonnes of carbon dioxide equivalent
Key Sustainability Performance Metrics
Ranked ?rst in the ESG-V ratinglist released by Ji’an FintechCorporation. The company wasalso included on the “S-socialrating”, “G-supervisionmechanism rating” and “V-valuerating” (investment value) lists
Honors and Awards
Only included part of honors and awards here.
Included in 2024 ESG-Pioneer 100 Indexof Central Enterprises sponsored by
the Bureau of Social Responsibility underSASAC and Responsible Cloud ResearchInstitute
Received the “Best PracticesCase for PerformancePresentations” award from the
China Association for PublicCompaniesThe company was included in three listsof the Sino-Securities Index (华证指数):
the “2024 Top 100 Outstanding ESGPerformances among A-share ListedCompanies” (No. 33), the “2024 Top20 A-share Listed Companies in termsof Corporate Governance (G) BestPractices” (No. 3), and the “2024 Top10 ESG Performances among A-shareListed Companies in the ConsumerDiscretionary Industry” (No. 3)
Received the 2024
“National May DayLabour Award” from the
All-China Federation ofTrade Unions
Received the “2024
Excellent ESG Casesamong ChineseEnterprises” award from the
China Enterprise Reform andDevelopment Society andChina Comment Magazineunder Xinhua News AgencyReceived the 2024
Evergreen Awardfor SustainableDevelopment and theInternal Control from
Caijing Magazine
0102
0304
ESG and CSR Awards Received in 2024:
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report0809Honors and Awards
Received the “Best Practices in Investor Relations Management” award from the China Association for PublicCompanies. The company was also included in the Best Practices Cases in Investor Relations Management of ChineseListed Companies
Selected into the “Grade A (Excellent) Companies” in theInformation Disclosure Evaluation of the Shanghai StockExchange for nine consecutive years
Received the “2024 Best Practices Case forBoards of Directors of Listed Companies”
award from the China Association for PublicCompanies
Received the “Best Practices Case forPerformance Presentations” from the ChinaAssociation for Public Companies
External Governance and Investor Relations Awards Received in 2024:
Received the title of “Most Honoured Company” from theauthoritative international ?nancial magazine Institutional Investor (onboth lists of Asia Paci?c region and the Chinese Mainland), rankedsecond in the list of “Best Board of Directors” (in the list coveringAsia Paci?c and the Chinese Mainland), and ranked third in the listof “Overall ESG Performance” (in the list covering the ChineseMainland)
Included on the “Best IR among
Hong Kong Listed Companies(A+H)” list. The company wasthe only listed commercial retailcompany in the ranking
Received the “Best Capital MarketCommunication Award”, “Best InformationDisclosure Award” and “Best ESG Award” atthe 8th China IR Annual Awards
Recognised among the“Corporate GovernancePioneers” in the KPMGESG 50 Awards
Ranked ?rst in the selection of “China’s 500 MostValuable Brands of 2024” for the tourism servicesector by World Brand Lab
Brand Communication Awards Received in 2024:
Received the “2024 Whiskey Tourism Retailer”title in the China category of the Icons of Whiskyawards released by the global authoritative whiskeyindustry publication Whisky Magazine
Received the 2024 German Design Awardsponsored by the German Design Council
Received the title of “2024
In?uential Enterprise inCultural Tourism Brand ValueCommunication” at the 10th
Green Development Forum (绿色发展论坛)
Honors and Awards
Statement of the Board of Directors
In order to standardise the ESG management mechanism andenhance the quality of ESG management, CTG DUTY-FREEhas established an ESG governance structure with the Board ofDirectors having the highest responsibility and decision-makingauthority for ESG matters. The Board of Directors is ultimatelyresponsible for the company’s ESG strategy, target managementand information disclosure. This responsibility includes reviewingand approving major decisions and improvement suggestionsrelated to ESG. The Strategy and Sustainability Committee underthe Board of Directors is the main committee responsible, andits key responsibilities include: conducting research and advisingon 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 Directorsto effectively perform ESG governance functions. To ensure ourESG practices are systematic and standardised, the companyestablishes the ESG Leadership Group, which is headed by theChairman of the company; the deputy head of it is the GeneralManager; and its members include heads of departments. The ESGLeadership Group is responsible for managing and coordinatingthe company’s ESG-related work, which establishes and improvesthe company’s management system and operating mechanismfor ESG-related work, and it also formulates ESG work plans andintegrates the company’s development strategy, image, brandingand operations with ESG concepts.
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 performed a double-materialityassessment of sustainability-related topics and identi?ed six topicsof both financial materiality and impact materiality and 15 topicsof only impact materiality but not ?nancial materiality, with a viewto determining the prioritised topics. Financially material topicsinclude climate change, energy utilisation, product and servicesecurity and quality, employees, supply chain security, datasecurity, and customer privacy protection. After a careful review ofthese topics, the company developed corresponding targets andmeasures to manage the topics. Going forward, we will update oursustainability-related management strategy and implementationplans to reflect changes in the external environment and thecircumstances and facts speci?c to the company, to continuouslyimprove our sustainability capabilities.The Report provides detailed information on the progress andachievements regarding CTG DUTY-FREE’s ESG efforts in 2024and has obtained approval from the Board of Directors on 28March 2025. The Board of Directors and all directors of thecompany hereby guarantee that the information presented in thisReport is free from any false records, misleading statements ormaterial omissions, and undertake joint and several liabilities for theauthenticity, accuracy and completeness of the information.
Company Overview
Company Overview
Company Overview
Corporate Culture
Corporate
Mission
Share the joyof shoppingand extend theenjoyment of travel
CoreValuesCourageous,professional ef?cient,
cooperative,
innovative
Brandpositioning
The representative of theduty-free industry in ChinaThe largest luxury operator
in China
Operation
Concept
Customer-centered,market-oriented
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 170 duty-free shops in 28provinces, 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 dif?culties. 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.
Development MilestonesOver the past 40 years,the company has became the ?rst-class travel retailer in the world:
1984
The PRC State Council of?ciallyauthorised the establishment
of China Duty Free Company.
1989
An of?ce of China Duty FreeCorporate was established inHong Kong SAR to strengthenthe overseas procurementand distribution capability ofduty-free merchandise.
1995
high-quality productsfrom China’sestablished brandswere released for trialsales in 10 duty-freestores.
2004We are selected as one ofthe franchised retailers forthe 2008 Beijing Olympic
Games.
2009We are successfully listedon the Shanghai StockExchange.
1990Our Beijing DowntownDuty Free Shop,the ?rst downtownduty-free store inChina, commenced itsbusiness operation.
1996Our Heihe BorderDuty Free Store, the?rst duty-free shopon the border ofAsian countries was
established.
2006We entered theinternational marketand established its ?rstsales terminal in theoverseas market.
2011Our Sanya DowntownDuty Free Storecommenced itsbusiness operationas the ?rst offshoreduty-free store inHainan province.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
2014- Our Sanya International
Duty-Free Complexcommenced its businessoperation as the ?rst travelretail complex in China. Itwas the largest standaloneduty-free store in the worldin terms of sales area atthat time.- Our ?rst overseasdowntown duty-free storecommenced operation inAngkor, Cambodia.
2018- Acquired SunriseDuty Free (Shanghai)Co., Ltd.- The ?rst independentcruise duty free shopin China commencedits business operation.
2021
We remained the No.1 travelretail operator in the world.
2023
Awarded the title ofModel for World-class Specialised andInnovative Enterprise bySASAC.
2017Acquired Sunrise DutyFree (China) Co. Ltd.
2020
- Acquired Hainan
Duty-free Co., Ltd.
- We became theworld’s largest travelretail operator; themembership systemof cdf was of?ciallylaunched, marking ahistoric breakthroughin online and of?ineinterconnection,domesticand overseasinterconnection.
2022
- Listing on the Hong
Kong Stock Exchange
- Grand opening of
Haikou InternationalDuty-Free ShoppingComplex, the largestsingle duty-free shopworldwide
- Ranked as the world’s
largest travel retailoperator for the threeconsecutive years
2024
A dedicated projectteam was set up tosupport China-chicproducts’ “goingglobal” efforts, leadingthe charge for thisnew trend in the travelretail industry.
Company Overview
In Marchthe company’s cdf Boao Duty-Free Shop carefully designedand developed a comprehensiveservice plan for the Boao Forumfor Asia Annual Conference2024 in Boao, Hainan, andsuccessfully provided full, high-quality support for the event.
In March
the Sanya Downtown Store held alaunch ceremony for its volunteerservice brand “Jing Lan Hu Lv (净蓝护绿)” and a tree planting activitycalled “Dance with the Trees” in theQingmei Port Mangrove Reserve,Yalong Bay, Sanya.
In Aprilwe took action in response to theinstructions of President Xi Jinping tobuild cdf Sanya International Duty-Free Shopping Complex into a modelfor “trusted business operations andexcellent services”, with a focus onenhancing related systems and oursystem of service standards.
In Aprilwe participated in the 4th ChinaInternational Consumer ProductsExpo. In our elaborately designedpavilion covering a total area of 600square metres, we showcased thelatest trends in the industry, andattendees had the opportunity to seeand experience popular and eye-catching products and services.
In Mayin line with the relevant nationalstrategic plan, the companyestablished a dedicated project teamfor China-chic products that are“going global” in order to acceleratetheir progress and chart the pathfor this new trend in the travel retailindustry.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
Sustainability Milestonesby Month in 2024
In Mayas the event’s Diamond sponsor, weattended the 2024 TFWA Asia Paci?cExhibition & Conference in Singapore,where we discussed the latest trendsand opportunities facing the travelretail market.
In Junethe company integrated its platformproject teams and launched a newtravel service platform called ctgo,which connects with six business linesof China Tourism Group (certi?cates,buses, retail, scenic spots, hotels, andcredit cards), with the aim of providingbetter services and expanding ourmarket share in Hong Kong SAR.
In SeptemberChina Duty-Free International joinedhands with the cdf Macau GrandLisboa Palace Shop to attend thethird China (Macau) InternationalHigh-Quality Consumption Expo andHengqin World Bay Area Forum.During the event, they demonstratedthe exquisite craftsmanship of well-known watch brands and provided acomprehensive interactive experienceusing augmented reality (AR) andarti?cial intelligence (AI).
In the face of strong winds and heavy
rains brought by super typhoonsTrami and Yagi, our people workedtogether and took appropriate disasterprevention and mitigation measures,and we carried out ef?cient disasterrecovery and reconstruction work,showcasing our ability to respond andadapt to climate risks.
In November
as a Platinum partner, the companyattended the Trinity Forum in Ho ChiMinh City, Vietnam, which was co-hosted by The Moodie Davitt Report(an authoritative publisher in the globalduty-free and travel retail industry), ACIWorld and ACI Asia-Paci?c & MiddleEast.
Sustainability Milestones by Month in 2024
Delivered CNY13.72 millionin free aid
Helped raise CNY6.42 million inassistance fundsProvided training for
497 grassrootscadres
Provided training for84 champions in ruralrevitalisation and wealthcreation
Provided training for562 technicians
Meeting Our Responsibilities in Rural Revitalisation
Topic 1
CTG DUTY-FREE actively aligns itself with the national ruralrevitalisation strategy and leverages its travel retail channels.Special areas have been set up for agricultural products in our “XingLv Yun Pin” stores to expand market prospects for agriculturalproducts from counties recently lifted out of poverty and empowerfarmers.
2024 was a key year for comprehensively implementing the spirit ofthe 20th National Congress of the Communist Party of China andfor thoroughly implementing the 14th Five-Year Plan. It also markedthe 10th anniversary of Sanya International Duty-Free ShoppingComplex. In the past 10 years, we have achieved fruitful results.During this time, the company has successfully enhanced theimpact of its brand and injected vitality into the travel retail marketin Hainan.
In 2024, the company appointed employees to serve as temporarycadres in the two counties, and these individuals helped implement15 assistance programmes that are designed to revitalise localindustries, the local talent pool, the local culture, local ecosystemsand local organisations. During this effort, the company workedclosely with the two counties. In addition to allocating CNY279,000in paid assistance, the company helped raise CNY6.42 million inassistance funds and provided training for 497 grassroots cadres,84 champions in rural revitalisation and wealth creation, and 562technicians.
In line with theOpinions of the Central Committee of theCommunist Party of China and the State Council on EffectivelyPromoting the Comprehensive Revitalisation of Rural Areas throughLearning and Applying the Experience of the “Thousand VillagesDemonstration and Ten Thousand Villages Renovation” Project,the company actively ful?ls its social responsibilities, and steadilycontributes towards rural revitalisation in the two paired counties.In 2024, the company delivered CNY13.72 million in free aid toMenglian county and Ximeng county in Yunnan province, marking atotal of CNY39.19 million in contributions over the past three years.
Data for 2024
Working Together to Promote Prosperity andGrow Our Footprint in Hainan
CTG DUTY-FREE actively responds to United Nations (UN) Sustainable DevelopmentGoals (SDGs) 1, 2, 8, 10 and 12 by extensively engaging in rural revitalisation with a view topromoting common prosperity, and promoting local prosperity in the place of operation.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
▍Harnessing consumption to provide assistance and consolidate poverty alleviation achievements
▍Enhancing accountability for assistance and engaging in more exchanges
In 2024, the company strengthened exchanges with and paid more visits to Menglian county and Ximeng county in Yunnan province toconduct on-site surveys on assistance programmes and identify areas to focus on in the future. The company carried out work in a down-to-earth manner and successfully completed the assistance tasks set for the year. In accordance with theAgreement on Responsibilities forAssistance Work in 2024, we held four special Party committee meetings to assess the assistance work, changes in assistance programmesand donations of school uniforms in 2024. Leaders from the company conducted on-site inspections to supervise the implementation of theassistance programmes.
In an effort to promote consumption, the company has taken various measures, such as setting up “Xing Lv Yun Pin” – a special area foragricultural products at Sanya International Duty-Free Shopping Complex and Haikou International Duty-Free Shopping Complex, andestablishing WeChat groups among commissioned of?cials to facilitate the sales of local agricultural products and encourage farmers toparticipate in trade fairs. Harnessing our extensive customer resources, we have also strived to promote the sale of local speciality productsacross the country, which helps improve the brand awareness of agricultural products from counties recently lifted out of poverty.
On 27 December 2019, the Xing Lv Yun Pin stores fordistinctive agricultural products in Sanya International Duty-Free Shopping Complex opened for business. Based on thelocal characteristics of 7 cities and counties in 4 provincesfor which the group has been assigned to provide assistance(Ximeng county, Menglian county, Shangri-La city and Deqincounty in Yunnan province; Linxia city in Gansu province;Bazhou in Xinjiang province; and Lichuan county in Jiangxiprovince), the company tentatively launched products under 9brands across 8 categories, such as ice wine, beef jerky andhoney, which have been adapted to the tastes of consumers inthe Duty-Free Shopping Complex. The company continues toexplore and select high-quality goods with ethnic features fromthese counties. By leveraging duty-free stores to showcaseitems, the company is working to promote locally distinctivegoods in the nationwide market while also helping farmersincrease their income.
Fulfilling our responsibility while creating a new duty-free shopping experience
▼
Xing Lv Yun Pin store in Sanya InternationalDuty-Free Shopping Complex
During the reporting period, thecompany continued to promoteassistance through consumption,and purchased and helped selldistinctive agricultural productsworth more than CNY5.95 millionfrom the counties in order to helpresidents recently lifted out ofpoverty increase their income andconsolidate poverty alleviationachievements:
Trade unions at various levels across the company purchaseddistinctive agricultural products worth more than CNY
1.88
million from four counties recently lifted out of poverty, includingMenglian county and Ximeng county.The company’s Xing Lv Yun Pin stores in Sanya and Haikouhelped sell distinctive agricultural products worth more thanCNY
2.15
million from 7 counties for which the group has beenassigned to provide general assistance and 1 county for whichthe group has been assigned to provide special assistance.Employees serving as temporary cadres in Menglian county andXimeng county helped sell distinctive agricultural products worthmore than CNY
1.92
million.
Case study
Topic 1
▍Promoting the High-Quality Development of Rural Industries
Assistance in theCultural Sector
The company is dedicated to helping Menglian and Ximeng counties maintain their unique ethnic minority cultures, while also exploring thepath to rural revitalisation through the development of the cultural sector.
Assistance forRural Industry
We strive to use innovative business models to cultivate newindustries in rural areas. Under the government’s “One Industryin One County” strategy, we have been focusing on the avocadoindustry in Menglian County, carrying out assistance programmesfocusing on talent pools, the construction of bases and trademarkregistration to boost the local avocado industry, to empower localfarmers increase their income and reach rural revitalisation. CTGDUTY-FREE has invested more than CNY2.75 million in assistanceto help develop the local avocado industry in Menglian county andconsolidate poverty alleviation achievements since 2020.In terms of talent development, CTG DUTY-FREE has spent CNY1million in assistance funds implementing programmes designedto train skilled workers for the avocado industry and building anexchange and training centre where a series of trainings have beendelivered for a total of 4,575 participants. Through these efforts,we have helped improve the scienti?c and technological aspects of
▼A Hani ethnic restaurant inYongqian old village decoratedfor the Eni Juema Banquet
▼Aka Stage: an event venue forHani ethnic minorities in Yongqianold village▼Akha Swing: a wooden swing forfolk activities used by Hani ethnicminorities in Yongqian old village
▼A park used for ?shing by Haniethnic minorities in Yongqian oldvillage
local production and operations management and also improvedfarming techniques. At the same time, we have focused onweaknesses in the development of village-level collectively ownedenterprises. To this end, we invested CNY697,000 to help buildavocado sorting plants and promote industrial transformation andupgrading, which bene?ted 1,720 residents from 448 households.In addition, the company also attached importance to branding, asevidenced by its investment of CNY1.06 million to implement a FiveModernisations programme. Through a number of comprehensiveinitiatives including shooting promotional videos, buildingobservation sites and enhancing branding efforts, the companyhas helped improve the popularity of the Menglian avocado, whichhas been included in the national list of famous, special and newagricultural products. In 2024, the ?rst Menglian avocado festivalwas held. These measures have played an important role inpromoting the development of Menglian’s avocado industry.
▼A training session to improve farmers’
techniques for growing avocados
▼A training session to improve farmers’techniques for growing avocados
▼An on-site training session on avocado growingtechniques
▼
An avocado sorting plant
▼
An avocado sorting plant
▼Display boards at the avocado base in Mangjievillage, Nayun town
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
▍Improving living and working conditions to forge beautiful rural areas
In recent years, the company has increased support for ruralareas by helping them take advantage of local cultural and tourismresources. For example, the company has helped carry out aprogramme to develop a pastoral leisure resort in the Likan area ofMengsuo village, Mengsuo town, Ximeng county. The project aimsto develop a cultural and tourism resort that integrates sightseeing,?tness, entertainment, folklore and local customs to promote thedevelopment of relevant industries and increase local residents’income. Since 2022, we have spent CNY13.48 million on PhasesI and II of the project. So far, a leisure and entertainment area hasbeen built, which includes a food plaza, a beach and park, a ?shingarea, a pond with an enhanced landscape, a swimming poolconnected with mountain springs, a camping site and a karting
park. In 2024, the company took action to further improve livingfacilities and sewage treatment in the Likan area.The company has engaged with local residents in the area to helpincrease their income. First, the company employs local residentsin construction and operations. Second, the company providesguidance for villagers to start their businesses. For example,trolleys are available for free, and villagers can use them to sellsnacks and handicrafts. Third, the village can access new sourcesof income by using vacant houses and land to participate in theprogramme. The project is expected to bene?t 354 residents from71 households and deliver an increase of more than CNY7,000 inper capita income.
▼ The children’s beachsand park with waterwheels
▼The Love in Ximeng activity during theDouble Seventh Festival
▼An aerial view of the camping site and the
children’s karting park
▼ Comparison of before and after the Likan Leisure Resort was built
▼ The swimming pool
Topic 1
With a Dual Focus, Co-Creating a New Development BlueprintAdhering to the business philosophy of “engaging in trusted business operations and providing excellent services”, taking advantage ofthe favourable policies for Hainan Free Trade Port, we have opened six offshore duty-free stores in Haikou, Sanya and Boao, striking ageographical balance in an effort to fully cover visitors leaving Hainan by “plane, ship or train”. Moreover, Sanya International Duty-FreeShopping Complex and Haikou International Duty-Free Shopping Complex – located at the southern end and northern end of Hainan Island,respectively – are strongholds in our Hainan network and act as integrated tourism retailers with a dual focus on “duty-free retail and culturaltourism”, with duty-free business as the foundation.
Haikou InternationalDuty-Free Shopping Complex
CDFG SanyaAirport Duty-Free Store
Haikou MeilanInternational Airport
Qionghai BoaoDuty-Free Store
Haikou Riyue Square
Sanya InternationalDuty-Free Shopping Complex
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
Leveraging brands, services and creativity, the company has been able to steadily introduce premium-brand ?agship stores that offer aunique shopping experience and set an example for innovation in duty-free consumption in China.
[Low-res][Low-res]
The company is also committed to driving the upgrading of the tourism industry.Aligning with shared development goals and leveraging its comprehensiveindustrial chain advantages, it has participated in the China InternationalConsumer Products Expo for four consecutive years, establishing a “CDF NewConsumption Scenarios” exhibition zone at Haikou International Duty-FreeShopping Complex to showcase its industry leadership, promote innovativeconsumption models, and unleash consumer potential. Concurrently, thecompany’s Hainan stores launched promotional activities, leveraging the expo’sspill-over effects to expand and boost the tourism retail market.We are committed to continuously satisfying consumers’ growing demandsand pursuit of a better life. To this end, we are steadily introducing more brandsand better services and providing a more convenient and pleasurable retailexperience to Hainan’s offshore duty-free consumers, with a view to offeringtravellers the joy of “seeing the world and shopping at cdf”.
Topic 1
▍A Decade Retrospective: Building a Duty-Free BenchmarkThe complex’s journey has included both challenges and opportunities:
2009
In 2009, CDF opened Sanya’s firstdowntown duty-free store, achievinga “100-day miracle” and making duty-free retail history.
2011In 2011, the implementation of Hainan’s offshoreduty-free policy propelled the store into nationalleadership.
2014In 2014, Phase 1 of the complex debuted as the world’s largest standalone duty-free store, featuring a verylarge scale, numerous brands and advanced services, and marking China’s entry into the global, large-scaleduty-free retail market.Subsequently, the opening of Phase 2 and the operation of the Global Beauty Plaza in Zone C furtherpromoted the complex’s renewal and upgrading.
2022In 2022, President XiJinping’s on-site inspectionaffirmed its achievements,inspiring continuousservice innovation.The complex activelyresponded to PresidentXi’s call, continuouslyinnovated services, andimproved the shoppingexperience.
2024By 2024, when thecomplex celebratedits 10th anniversary, ithosted more than 850internationally famousbrands and hundredsof thousands of goods,solidifying its statusas a Hainan tourismlandmark.
Sailing with Momentum: A Decade of Excellence
Sanya International Duty-FreeShopping Complex welcome over
70 million visitors from aroundthe world
Supported by Hainan’s offshore duty-free policy and measures supporting domesticconsumption, Sanya International Duty-Free Shopping Complex – under the company– celebrated one decade of successful operations on 1 September 2024. As a leaderin China’s tourism retail sector, the company has upheld the principles of “Integrity inOperations, Excellence in Service”, enabling the complex to welcome over 70 million visitorsfrom around the world. This success has significantly redirected overseas consumptionback to China and bolstered Hainan’s duty-free market.As a key contributor to the Hainan Free Trade Port, the complex prioritises customer-centricinnovation, with a view to enhancing the shopping environment and upholding servicequality. By introducing diverse international and domestic brands, it offers consumersseamless and luxurious experiences, elevating its competitiveness in the domestic marketand supporting national economic policies.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
▍A Decade of Innovation: Pioneering Premium Services
▍A Decade Ahead: Celebrating a New Chapter
In 2024, the complex launched the “Integrity in Operations,Excellence in Service” pilot initiative, under which it established aservice framework that includes the ethos “Global Shopping withCare, Dedicated to You”, eight service pillars, and 98 operationalstandards. The complex strives to provide customers with anelegant and comfortable environment, sincere and caring services,and convenient and efficient experiences, and it is committedto building a service benchmark for the domestic tourism retailindustry.
Beyond physical amenities like luggage storage, wheelchair rentals,medicine kits, electronic navigation systems, AR navigation andpayment services, the complex is steadily promoting and advancingonline platforms, the member experience, tiered membershipsystems, and large model/AI-driven solutions in order to deliverseamless, one-stop luxury experiences.
For its 10th anniversary, the complex hosted high-pro?le events togive back to consumers and various segments of society. Underthe theme “Journey of a Thousand Miles, Embracing the Lightof Time”, we staged various activities such as “Ten Lucky OnesFree to Order”, “Ten Celebrities in the Store”, “Ten Invitationsto a Charter Flight Experience”, and “One Billion Cash CouponDelivery” to forge a deeper bond between the complex andconsumers. Meanwhile, luxury brand exhibitions and galas wereheld to showcase the company’s premium image, blending visualsplendour with world-class service.
Looking ahead, over the next decade, the complex will continue topursue its “Integrity in Operations, Excellence in Service” mission,with a view to building an organisation that promotes internationalconsumption and blends luxury, convenience, and personalisation.
Topic 1
CTG DUTY-FREE is actively responding to UN SDGs 9, 11, 12 and 13 by focusing greendevelopment, developing resilient buildings and implementing energy saving and carbonreduction throughout their life cycle, as active responses to climate change risk.
Pursuing a Green Future and Carrying OutExcellent ESG Initiatives
To address growing challenges from climate change and environmental issues, green development has become a global consensus inful?lling the mission of the new era. We are committed to pursuing a green future and taking productive, practical actions to incorporate ESGconcepts into our business.Conserving Energy and Reducing Carbon throughout the Entire Building ProcessThe company is committed to implementing the nationalGreen Building Action Planand strictly implements energy-saving standards fornewly constructed buildings. It has also formulated the “White Paper on Low-Carbon Planning for Construction Projects” in order to integratethe concept of sustainable development into every link of the design, construction and operation of buildings and ensure the quality of greenbuildings throughout their life cycle. We extensively engage in resource conservation, environmental protection and pollution reduction, tomake our buildings ef?cient, healthy and liveable while realising harmonious coexistence nature.
Topic 2
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
So far, the company’s progress in applying green building measures for certain key projects is as follows:
In 2024, China Duty-Free (Sanya)
Investment Development Co.,Ltd. was recognised as a “Near-Zero Carbon Pioneer in Cooling
Cooperation”.
Haikou International Duty-FreeShopping Complex (Block No.1)? 2-star Green Buildingpre-certi?cation? LEED Gold certi?cation application
in progress
Haikou International Duty-Free Shopping Complex(Block No.5)? LEED Gold certi?cation
Sanya International Duty-Free ShoppingComplex Phase 1 Plot 2 Hotel Project? 2-star Green Building pre-certi?cationapplication in progress
? LEED Gold certi?cation
Haikou International Duty-FreeShopping Complex (Block No.4)? 2-star Green Building pre-certi?cationHaikou International Duty-FreeShopping Complex (Block No.6)
? Plan to apply for 2-star GreenBuilding certi?cation
? 2-star Green Building
certi?cation
Sanya International Duty-FreeShopping Complex Phase 3Plans to apply for? 2-star Green Building? LEED Platinum? WELL Platinum? SITE Platinum certi?cations
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 INTERNATIONAL DUTY FREE SHOPPING COMPLEX
cdf海口国际免税城
Haikou, ChinaLEED v4BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENTMarch 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.
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, China
LEED v4BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENT
October 2023
Sanya International Duty-Free Shopping Complex Zone C
Topic 2
▍Green Planning
The design of the Sanya InternationalDuty-Free Shopping Complex Phase3 Project adopts a number of energy-saving green technologies, such as aphotovoltaic pool roof, a sunken greenplaza design, a waterscape recyclingsystem, solar photothermal technology,a special acoustic design, a fresh airfiltration system, low-volatility coatings,environmentally-friendly refrigerants, ahigh-performance and multi-split variablefrequency system and fresh-air heatrecovery technology. In addition to theseenergy conservation technologies, theProject also boasts an optimised structuraldesign, and it has adopted a series ofsmart and efficient measures, such asenergy-ef?cient equipment, green energy-saving building materials, resourcerecycling and renewable resource use (the“four innovative technologies”), as well assmart system integration management,to comprehensively promote carbonreduction at the source.
▼
The coloured glaze dome of the atrium has been effectivelydesigned in terms of heat insulation and daylighting (photo ofSanya International Duty-Free Shopping Complex Zone C)
▼
Automatic remote metering system, integratedenergy management system, and air qualitymonitoring system (photo of Sanya InternationalDuty-Free Shopping Complex Zone C)
▼
Light coloured pavement and sunshade structures in an outdoorsquare (photo of Sanya International Duty-Free Shopping ComplexZone C)▼
Curtain of Sanya International Duty-FreeShopping Complex Zone C
Based on the low-carbon technologies applied at Haikou International Duty-Free Shopping Complex’s project plots, and with reference to low-carbonexperience gained through other commercial projects, the company hasprepared the “Low-Carbon Technology Guidelines for CDFG’s Investmentin Tourism Retail Complexes (Commercial, Hotel and Office Complexes)”(hereinafter referred to as the “Low-Carbon Technology Guidelines”), whichdesigned to help reduce the carbon emissions of buildings and promoteenergy ef?ciency. Going forward, the company will refer to these guidelineswhen developing projects that involve the use of low-carbon technologies.Sanya International Duty-Free Shopping Complex Zone C Commercial Projecthas adhered to the philosophy of resource conservation and environmentalprotection since its planning and design stage, focus on constructing high-quality green buildings that support sustainable development with referenceto domestic and international green building standards. During the Project’sdesign stage, a number of green and energy-saving technologies were
adopted that meet the standards for fabricated buildings and the standardsfor fully-furnished delivery. The smart and effective technical measures takeninclude optimising the shape of the building envelope system, integratingthe design of the lighting and shading system in the atrium, and adoptingenergy-efficient heating, ventilation and air conditioning (HVAC) equipment,temperature, humidity and air quality monitoring systems, the concept ofsponge cities, primary wearable sensing devices (WSDs), irrigation withreclaimed municipal wastewater, soundproofed construction materials, andsmart system integration management. With these measures, the Projectwas able to satisfy the 2-star Green Building standards in the ?ve areas ofsafety and durability, health and comfortableness, convenience, resourceconservation, and friendly living spaces. Through the application of thesetechnologies, the Project met international standards for sustainable siteselection, indoor and outdoor water ef?ciency, energy consumption reduction,waste management, and indoor environmental quality, among other areas.The Project has obtained 2-star Green Building certi?cation.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
BIM has been adopted in the design and construction process, andthe project will feature prefabricated buildings and fine decorations.Various intelligent, high ef?ciency and energy-saving capabilities, suchas building shape optimisation, building space utilisation, buildinginsulation materials, natural lighting design, sponge cities, rainwaterrecycling, garbage classification, charging piles, solar energy, smartlighting, convenient automated payment, and smart parking will beadopted to reduce the buildings’ energy consumption and ensurecompliance with low-carbon standards. For example, the reclaimedwater system of Haikou International Duty-Free Shopping ComplexPlot 5 provides 8,800 cubic metres of reclaimed water throughout theyear, which can be used for outdoor landscaping.Meanwhile, the reclaimed water system of Haikou International Duty-Free Shopping Complex Plot 1 reclaims 12,000 cubic metres ofwater throughout the year for outdoor landscaping and waterscapereplenishment. The water used for the outdoor landscaping area(covering about 9,000 square metres) is entirely collected by thereclaimed water system. The installation of the reclaimed waterequipment was completed in 2024, and it will be put into use in 2025.▍Carbon Footprint ManagementThe company strives to meet the goals of carbon peaking and carbon neutrality. To this end, we are following the “Action Plan for CarbonPeaking and Carbon Neutrality”, and we plan to prioritise carbon emissions accounting as part of our effort to identify the company’s carbonfootprint. We are also exploring new carbon reduction solutions that harness technological breakthroughs and innovations, with the goalof optimising our energy structure and using more clean energy. We fully leverage the market’s role in resource allocation, and activelyparticipate in carbon trading to reduce costs related to carbon reduction.Under the direction of the “Low-Carbon Technology Guidelines”, thecompany incorporates green building materials as much as possibleduring project construction. Suppliers of equipment and materials(such as cables, air conditioners, refrigerators, diesel generators,domestic water supply pumps, air conditioning chilled water pumps,oil separators, etc.) for Sanya International Duty-Free ShoppingComplex Zone C project are all required to obtain the Certificate forEnvironmental Management System Certification, and among which,cables already obtained carbon footprint assessment report. Propssuppliers for Haikou International Duty-Free Shopping Complex,Sanya International Duty-Free Shopping Complex, and variousairport comprehensive duty-free stores are also required to obtainenvironmental green certi?cations such as “Certi?cate for Certi?cation ofChina Environmental Labelling Product”, “Environmental ManagementSystem Certi?cation”, “ISO14001” and “FSC Certi?cation”, etc.The Haikou International Duty-Free Shopping Complex Plot 5 Projectactively promotes the application of new technologies, and, in March2023, won the Certi?cate for the Second Rank Achievement in GreenConstruction issued by the China Construction Industry Association forits construction process control efforts.In terms of low-carbon planning, the company prepared the “White Paper on Low-Carbon Planning of Haikou International Duty-FreeShopping Complex” for the six plots of the Project. According to the company’s calculations, the carbon emissions from Haikou InternationalDuty-Free Shopping Complex Plot 1 and Haikou International Duty-Free Shopping Complex Plot 4 are approaching the standards for low-carbon buildings. After all plots are completed, the Project will be considered a pioneer among low carbon buildings. In the future, thecompany will use the low-carbon practices adopted for the Haikou International Duty-Free Shopping Complex Project in other projects, soas to deliver green messages and continuously explore low-carbon development initiatives.
Plot 5 provides8,800cubic metresof reclaimed water throughout the yearPlot 1 reclaims
12,000
cubic metres
of water throughout the year
Topic 2
▍Green Construction Management
During the construction process, the company adopts the following management measures to reducethe impact on the environment and natural resources:
For the construction of the company’s projects, CDF Investment Development requires that a green construction programme be formulated. Theprogramme includes site environmental protection, comprehensive utilisation of materials and resources, energy conservation and comprehensiveutilisation of energy, water conservation and comprehensive utilisation of water resources, land conservation and construction land protection,construction waste management, noise pollution control, light pollution control, indoor environmental pollution control and other measures. Multiplegreen technologies and measures have been adopted for these Projects, such as the primary use of local and recycled building materials, advancedconstruction techniques, tool stereotyping, bare soil coverage for dust suppression, water-sprinkling devices on the site to control dust, recoveryand comprehensive utilisation of construction waste, reducing resource consumption and environmental pollution throughout all stages of theconstruction process, to protect the natural surroundings to the largest extent. During the construction process, CDF Investment Development andits af?liates require the supervisory party to supervise the construction process to ensure that green measures are implemented strictly in accordancewith relevant national, provincial and municipal regulations. The supervisory party is also required to perform robust and timely inspections during theconstruction process to ensure that green construction measures are fully implemented.
Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 Hotel Project takes advantage of energy-efficient processes and constructiontechniques to reduce particulate and waste discharge at construction sites. During the construction process, six types of high-quality innovativebuilding materials (i.e., light-transmitting insulating glass, expanded perlite concrete, environmentally friendly latex paint, low-loss transformers, variablefrequency fans, and water pump equipment) were used for energy-saving and environmental protection purposes.
Adoption of an environmentally-friendly architectural design and related materials toreduce any negative impact on the environment.A preference for reusable materials and equipment, such as stainless steel, glassproducts, etc.Plastic material management of avoiding the use of one-off plastic products. If plasticmaterials are unavoidable, choose recyclable and biodegradable ones, and fullyrecycle and reuse them by reducing damage and waste. Plastic waste resulting fromconstruction is collected and disposed of by its type to avoid environmental pollution.Implementation of environmental protection publicity and education to enhance thepublic’s awareness and knowledge of environmental protection.
The company also implements green andlow-carbon standards during constructionprocesses to strengthen its green buildingcredentials. The “four conservations and oneprotection” principles (energy conservation,land conservation, water conservation,material conservation and environmentalprotection) are applied throughout the wholeprocess, from planning, development, design,and construction through to operations forproperties and commercial complex projectsinvested in and constructed by the company.Measures are taken to ensure safe constructionsites, a clean environment, on time delivery, andsuf?cient funds. Construction units are requiredto prepare comprehensive special schemeson green construction beginning at the designstage and establish effective support systemsto ensure that green construction is ful?lled asscheduled.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
Based on the operational data of SanyaInternational Duty-Free Shopping ComplexPhase 1 and Phase 2, Phase 1 hasreduced energy use by more than 15%,and Phase 2 has reduced energy use bymore than 18%.
▍Green and Energy-Saving Operations
Sanya International Duty-FreeShopping Complex Project
AspectLow Carbon & Environmental Protection Measures
Energyconsumption
The building’s energy-efficient design complies with national standards. The design of the building’sshape, orientation, the distance between buildings, and window-to-wall ratio, among other aspects, wereoptimised to reduce overall energy consumption.The facade curtain walls of Sanya International Duty-Free Shopping Complex Zone C adopt tempereddouble-silver ultra-white Low-E hollow glass structures and double-silver coating technology to effectivelyprevent heat waves from penetrating inside, which ef?ciently improves the performance of the building’sthermal insulation without affecting the light transmission rate needed to keep the room bright.The Low-E coating helps re?ect outdoor thermal radiation, prevents heat from entering the room, andreduces the energy consumed by air conditioning. For buildings in climate zones with hot summers andwarm winters, this coating technology helps improve energy-saving ef?ciency and blocks most ultravioletrays, reducing the damage in?icted by ultraviolet rays on indoor furniture, ?oors and fabrics and extendingtheir useful lives.Intelligent elevator management: The escalators’ intelligent speed monitoring capabilities and the elevatorgroup control system reduce power consumption.Intelligent fresh air control system: Fresh air is circulated into the buildings during transition seasons.Minimum fresh air volumes are used to operate the system when the outdoor temperature is higher thanthe indoor temperature in summer.The building’s intelligent lighting considers the time of the day and scenarios to reduce electricity andenergy consumption.The building has been out?tted with a variety of intelligent control systems, including intelligent of?cecapabilities, energy ef?ciency capabilities, intelligent lighting, intelligent monitoring, access control systems,and vehicle management systems.
Water
and soilresources
Adopting rainwater storage system and permeable pavement in the building’s “sponge city”: Thepermeable pavement has been used to ef?ciently penetrate ground rainwater, which reduces pressure onthe drainage system and maintains the urban soil’s ecological balance.Sewage and wastewater classi?cation treatment: Sewage is discharged into the municipal network afterbeing treated by the outdoor septic tank, and kitchen sewage is discharged into the municipal is alsonetwork after being treated by oil separators twice.Phase 2 also equipped with a river revetment and plant maintenance capabilities, which enable thebuilding to meet ?oodwater discharge requirements, thereby ensuring a stable riverside and preventingwater and soil erosion.We perform disinfection and algae-killing treatments on fountain water on a regular basis and removeand recycle sediment at the bottom of the pool by sewage suction pump to extend the fountain waterreplacement cycle and lower the frequency of water change.
Clean air
The high-ef?ciency oil fume puri?er 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. Thesemeasures effectively improve the park’s air quality.The building layout distance between buildings and ventilation placement have been optimised to improveon-site air circulation.Phase 2 is equipped with an intelligent garage ventilation system. The induced ventilation system in theunderground garage automatically controls the operation of the garage fan according to the carbonmonoxide concentration, which improves air quality in the garage.
Noisemanagement
Noise and vibration control: Fans, pumps and other equipment emit low noise, and shock absorptiondevices have been deployed in relevant locations on the premises.Haikou International Duty-FreeShopping Complex Project
Reducing the heat
island effect
The project reduces ground parking spaces, uses light-coloured paving materials, and uses light-coloured materials or highly re?ective coatings for roo?ng materials as much as possible.High ef?ciency water-saving appliances
The project uses all Grade I sanitary ware to achieve high-ef?ciency water savings, and the coolingtower’s water ?ow rate meets LEED requirements.Rainwater recycling
All on-site rainwater will be collected, treated, and reused for greening irrigation and road washing tosave fresh water.Energy ef?ciency
optimisation
A comprehensive energy consumption simulation has been conducted based on the design of theproject envelope and the HVAC system, the equipment’s energy ef?ciency and the indoor lighting powerdensity. According to the simulation’s calculations, the designed building will reduce costs by 16.3%annually compared to the ASHRAE benchmark building.High ef?ciency air
treatment
The project adopts G4+F8 medium- and high-ef?ciency ?ltration devices to guarantee indoor air quality.In addition to basic ventilation, the volume of fresh air will be increased by 30% to avoid insuf?cient freshair when there are many people in the building.
Enhancedcommissioning
In addition to basic commissioning, the project will also ensure that an ef?cient operational strategyis maintained for the energy consumption system and that timely support is provided for operationsthrough functional testing and problem documentation of HVAC, the HVAC control system and thelighting system.
Full life cycle
assessment
The project has conducted a full life cycle assessment (LCA) of the new building to calculate thepercentage reduction in various environmental impact indicators of the new building compared to thebenchmark building.
Topic 2
Case study
The Haikou International Duty-Free Shopping Complex Project and Sanya International Duty-Free Shopping Complex Zone C are equippedwith building automation systems, air quality monitoring systems, intelligent lighting systems and other intelligent control systems. Duringtheir operating periods, the following measures have been taken to promote green and low-carbon operations:
The company actively promoted the application of energy-savingequipment by installing energy-saving lighting, air conditioners,fans and other equipment in all duty-free complexes and stores,while eliminating equipment with high energy consumption,installing time control switches, and imposing strict limits onequipment usage. We also cleaned air conditioners on a regularbasis to improve their energy ef?ciency.Haikou International Duty-Free Shopping Complex and SanyaInternational Duty-Free Shopping Complex Zone C separatelymeasured power consumption, water consumption and naturalgas consumption, and used the integrated building managementsystem (IBMS) to compile monthly carbon emission statisticsand engage in related analysis.The Sanya International Duty-Free Shopping Complex BuildingA and Building B Renovation Project upgraded the buildings’control and energy management system to improve the comfort,safety, energy efficiency and management efficiency of thebuildings. Using the intelligent building management system,we are able to exercise centralised control over and coordinate
In 2024, the company conducted energy-saving renovations for existing buildingsthrough various initiatives
Making full use of the building automation system, taking intoaccount the actual operating needs of the projects to optimiseoperating strategies, and realising intelligent group control of coldstation equipment. Frequency conversion technology is alsoapplied to the water system and air system to comprehensivelyreduce the energy consumed by the transmission and distributionsystem of the refrigerator equipment and the operation of airconditioning terminals, so as to conserve energy and reduceconsumption and carbon emissions.
equipment in the buildings, so as to further optimise resourceuse and make the environment more comfortable.In August 2024, based on Hainan province’s policy of cancellingthe difference between peak and valley time-of-use (TOU)electricity prices, Sanya International Duty-Free ShoppingComplex Phase 2 carried out technical transformation of itsexisting ice storage system. Specifically, we renovated theair-conditioning circulation pipelines to directly connect therefrigerators with the terminals, which reduces pipeline loss,improves the thermal ef?ciency of the refrigeration system andlowers electricity costs. Statistics show that the average dailyenergy savings resulting from this renovation amount to 2,300kWh, and annual electricity savings are about 690 MWh.In addition, Sanya International Duty-Free Shopping ComplexPhase 2 has replaced the lighting equipment in its basementparking lot, logistics corridor and other public areas with LEDlamps, which are expected to save 10.5 MWh of electricityannually.
Using the air quality monitoring system to perform real-timemonitoring of indoor air quality (such as analysing carbondioxide, PM
2.5
and other indicators), and enabling intelligentregulation of the fresh air system and air purificationequipment, to ensure that indoor air quality meets relevantstandards.
Using the intelligent lighting system, which features re?nedlighting design and diversified lighting styles, to exercisecontrol of landscape lighting by zone, point location, system,time interval and mode and create multiple lighting sceneswhile saving energy consumed by the lighting system.
The projects are also equipped with Intelligent OperationsCentres (IOCs), which harness the Internet of Things,passenger flow perception, intelligent security solutions,energy consumption analysis and ticketing services, amongother tools, to facilitate low-carbon operations.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
We will increase the use of renewable energy, including by expanding theuse of solar photovoltaic technology. China Duty-Free (Haikou) InvestmentDevelopment Co., Ltd. has signed strategic cooperation agreements withphotovoltaic manufacturers, and has devised an overall plan under whichphotovoltaic technology will be installed in stages for the Haikou InternationalDuty-Free Shopping Complex Project. By the end of 2024, the intelligentoptical storage and charging microgrid system of the Haikou InternationalDuty-Free Shopping Complex Plot 1 Project was still under construction. Thesystem consists of a photovoltaic carport system, an energy storage systemand a charging/discharging system. According to the plan for this project,we will build a photovoltaic carport system with a capacity of 275.55kW, anenergy storage system with a capacity of 100kW/215kWh, and ?ve 360kWcharging pile systems and one 480kW charging pile system.
Main features of the project:
Combatting the Typhoon with Determination and United Efforts
▼
Night patrol at the Riyue PlazaDuty-Free Shop
▼
Reinforcement of doors andwindows at the Riyue PlazaDuty-Free Shop
▼
Reinforcement of doors andwindows at the Boao Duty-Free Store▼
Reinforcement of doors andwindows at the Meilan AirportDuty-Free Shop
In 2024, typhoons such as Super Typhoon Yagi and SevereTyphoon Bebinca landed in China, bringing unprecedentedchallenges to our business operations. However, in ?ghting againstthe storms, we demonstrated our strong coping capacity andclimate adaptability, and we worked together with determination toimplement scientific disaster prevention and mitigation measuresand conduct ef?cient post-disaster recovery and reconstruction.In order to effectively mitigate damage caused by typhoons andensure the safety of the company’s properties and employees,the company and its stores have formulated the “ComprehensiveEmergency Plan”, the “Emergency Plan for Typhoon Mitigation (andFlood Control”, the “Emergency Plan for Typhoon Prevention ofSanya International Duty-Free Shopping Complex”, the “EmergencyManagement Regulations” and other relevant requirements.CDF Investment Development also requires each project underconstruction to prepare a “Construction Plan for Flood, Typhoonand Lightning Prevention”. All affiliated enterprises are requiredto pay close attention to and strengthen monitoring and alertsfor extreme weather events such as typhoons. They must devisedetailed work plans, build robust defences, and prepare to preventand address typhoons such as Super Typhoon Yagi, SevereTyphoon Bebinca and Severe Tropical Storm Pulasan, so as tokeep our people and properties safe from harm.
During the pre-warning for Super Typhoon Yagi and the durationof its landfall, the company’s director and general manager Mr.CHANG Zhujun visited the front line personally and organised allunits in Hainan to quickly establish an emergency headquarters tocombat the typhoon. Specifically, he organised five coordinationvideo calls to track the dynamics of the typhoon in real time,issue typhoon prevention guidelines and safety tips, and gain afull understanding of Yagi’s impact on all units. He also deployedtargeted defence measures, and closely liaised with localemergency departments to set up an ef?cient and uni?ed commandsystem. Haikou International Duty-Free Shopping Complex, RiyuePlaza Duty-Free Shop, Sanya International Duty-Free ShoppingComplex, Meilan Airport Duty-Free Shop, China Duty-Free (Haikou)Investment Development Co., Ltd. and other units set up their ownrespective typhoon and flood prevention working groups, whichorganised Party-member management and employees to patrolkey areas such as duty-free stores, warehouses, and projectsunder construction. They also added wind barriers and storedsufficient sandbags, rain gear and other emergency supplies tostrengthen vulnerable areas, and transferred goods to safe areas tominimise the impact of typhoons.
Low-carbon image:
Establishing a photovoltaic carportsystem in the charging space atthe main entrance and exit areas ofthe park.
Integrated design:
Integrating photovoltaic systems,energy storage systems andcharging pile power distributionsystems as 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, or consumeall the self-generated electricity,effectively reducing power costs.
Intelligent control:
With ECC, an intelligent energymanagement system, we canengage in energy managementand orderly dispatching coveringphotovoltaics, energy storage,charging piles (clusters) and thepower grid. In this way, we willdigitalise our energy use andharness the Internet of Things toconnect multiple systems.
Mono-crystallineSingle-sidedSolar Module
550Wp
Photovoltaic
Carport
StringInverter
480kW Split-type
Charging Pile
IntegratedEnergy Storage
System100kW/215kWh
Topic 2
▼
Hainan DF volunteered to assist in post-disasterrecovery and reconstruction after Super Typhoon Yagi
▼
Post-typhoon warehouse inspection
▼
The Boao Duty-Free Store engaged inreconstruction work after Typhoon Trami
In the aftermath of the typhoons, all units of the company in Hainan “paid equal attention to two aspects” (“两手抓”), namely resumptionof work and production and post-disaster recovery. To this end, they thoroughly investigated and measured the damage suffered by eachunit, and carried out a “comprehensive and exhaustive” (“拉网式”) safety inspection and physical stocktaking of goods and materials in keyareas such as of?ces, stores, warehouses and staff dormitories. They also actively cooperated with government departments to carry outcomprehensive investigations to detect hidden safety hazards in key areas such as power facilities, ?re-?ghting facilities, fences, billboards,elevators and building facades, with a focus on preventing secondary hazards from building parts loosening and falling off, road collapse,engineering equipment failure, and post-disaster infectious diseases. Meanwhile, all units in Hainan also organised Party and “masscommando teams” (党群突击队) to carry out post-disaster clearance and siltation alongside government departments, facilitating urbanreconstruction.
▍Green Buildings with Excellent AdaptabilityWhen Hainan was hit by Super Typhoon Yagi, the company’s duty-free stores rose to the challenge:
? Haikou International Duty-Free Shopping Complex andSanya International Duty-Free Shopping Complex Zone C arestreamlined buildings, which reduced the damage inflicted byYagi. Haikou International Duty-Free Shopping Complex Plot1, Haikou International Duty-Free Shopping Complex Plot 4and the Sanya International Duty-Free Shopping ComplexPhase 1 Plot 2 hotel projects under construction are subject tostrict requirements in terms of the size of window sashes anddecorative components, and they are outfitted with reinforcedanti-falling fixtures. Wind tunnel tests have been conductedto determine the wind load of the projects, demonstratingthe safety of the projects’ structures and curtain walls undertyphoon conditions. For areas with high local wind speeds, westrengthened structures and curtain wall components to improvethe wind resistance and safety of indoor and outdoor sites.
? Haikou International Duty-Free Shopping Complex, Sanya
International Duty-Free Shopping Complex Zone C, HaikouInternational Duty-Free Shopping Complex Plot 1, HaikouInternational Duty-Free Shopping Complex Plot 4 and theSanya International Duty-Free Shopping Complex Phase 1Plot 2 hotel projects have been effectively designed to meetthe requirements of ecological adaptability and ecologicalprotection. For example, a variety of local plants have beenselected for their landscaping, which greatly improves theadaptability of the projects in typhoons and other severeweather conditions.
? The sites of Haikou International Duty-Free Shopping
Complex, Haikou International Duty-Free ShoppingComplex Plot 1, Haikou International Duty-FreeShopping Complex Plot 4 and the Sanya InternationalDuty-Free Shopping Complex Phase 1 Plot 2hotel projects are equipped with a large numberof permeable paving materials, rainwater storagetanks and sunken green spaces. As a result, theprojects are able to quickly collect rainwater in strongrainstorms, maximise the absorption and mitigationof rainwater by buildings, roads and green spaces,and leverage the role of green facilities in emissionsreduction, so as to relieve pressure on the urbandrainage pipe network.
China Tourism Group Duty Free Corporation Limited ? 2024 Environmental, Social and Governance Report
Case study
Case study
In March 2024, the company and Edrington Group held an activity in Sanya that wasthemed “jointly planting a marine forest”. On the day the activity was launched, volunteersplanted more than 360 seedlings, making a significant contribution to the mangrovereservation in Qingmei Port. The larger project, which started in November 2022, aims torestore the Sanya Mangrove Reserve. By November 2024, a total mangrove area of 30mu had been repaired and expanded, with more than 10,000 seedlings planted.
Green Alliance: Joining Hands with Brands to Open a New Chapter
Over the years, the company fully leverages its in?uence in the supply chain and connects upstream brands and downstream customers tocarry out green environmental protection activities. In this way, we convey the “green cdf” message and encourage customers to embracethe philosophy of sustainable consumption, with the goal of promoting the transition to a better consumption ecosystem, and promoting thedevelopment of the entire industry in a more green and sustainable direction.
8 June 2024 marked the 16th World Oceans Day and the 17th National Marine Publicity Day. On this special date, the SanyaDowntown Store, together with the Lancaster brand and Blue Ribbon Ocean Conservation Association, visited Wuzhizhou IslandTourist Area and Sanya Haichang Fantasy Town to carry out public welfare activities for marine conservation. The activities werethemed “Guarding the Pure Coral Reef with LAN (与LAN同行守护纯净珊瑚海)”. During the event, volunteers planted “trees”(precious coral seedlings) on the seabed, making a valuable contribution to the restoration of the marine ecosystem.
The company cooperated with partners to carry out “Coral Reef Conservation”
On 27 December 2024, the company’s sixduty-free stores in Hainan all launched the “payby tapping” payment service, which providesconsumers with a more convenient and ef?cientconsumption experience. At the same time, thesestores launched the “tap and donate (你碰我捐)”public welfare initiative. For every payment madeby tourists using the “pay by tapping” service inany CTG DUTY-FREE store, we will donate CNY1to the SEE Foundation to support the protectionand repair of seaweed beds in Hainan, with a dailylimit of 10,000 on the number of payments. Thiswas also the ?rst case in which the company hasincorporated “pay by tapping” into a charitableinitiative.
The company planted more than 10,000 saplings to jointly cultivate“a marine forest”
Case study
The company launched the “Blue Sea Action (蔚海行动)” public welfare project tomake every payment-by-tapping an act of charity
Topic 2
Principles of
Governance
CTG DUTY-FREE actively responds to United Nations (UN) SustainableDevelopment Goals (SDGs) 16 and 17, and has been continuously improvingcorporate governance and empowering corporate sustainability with ESG.
ESG Strategy: Clarifying Key Priorities38Robust Governance System for Long-termStable Operations
Complying with Commercial Ethics toReinforce Internal Control Compliance
▍Sustainable development strategyCTG DUTY-FREE strategic vision and strategic objectives in respect of the 14th Five-Year Plan
ESG Strategy: Clarifying Key Priorities
? For the country and society: Serve as a key driver ofnational strategies, build a first-class brand image andsocial influence, maximise value, and meet unified political,economic, and social responsibilities.? For customers: Commit to meeting people’s growingdemand for a better life, treating customers as co-creatorsof value, and delivering high-quality fashion products,premium services, and lifestyle experiences.? For the industry: Lead the industry in terms of scale,efficiency, and operational excellence, foster collaborativeand healthy competition, innovate alongside suppliers andpartners, and cultivate competitive-cooperative relationshipswith peers.? For employees: Share the fruits of corporate growthwith employees, empower them through value-drivendevelopment, and serve as a platform for their professionaladvancement.
Continuously improve enterprise value
Customers
Thecountry &
society
EmployeesIndustry
Customer-centricity
Purpose-drivencommitmentSharedgrowthCollaboration
Co-creation, co-existence,co-sharing
CTGDUTY-FREE
Strategic positioning:
To become a first-class travel retail operator with globalcompetitiveness, international influence and leading profitability.With a focus on customers and adapting to evolving marketdynamics, the company aims to consolidate its domestic duty-free leadership while optimising business structures, refining newretail models, accelerating international expansion, and driving
integrated development across online-offline platforms, duty-free and taxable goods, airport and city locations, domestic andinternational markets, and imported and domestic products. Byenhancing synergies in procurement, supply, and sales, pursuingdigital transformation and strengthening our capital operationscapabilities, we are confident that we will achieve high-quality,sustainable growth.
ESGTargets
To build a central state-owned enterprise that upholdsthe principles of integrity, safety, environmentalawareness, and harmony.
Principles of GovernanceProsperityPeoplePlanet
Planning for Sustainability
With high-quality development as our core direction, we have implemented the five development concepts of “innovation, coordination,going green, openness and sharing”. CTG DUTY-FREE actively fulfils its social responsibilities as a central state-owned enterprise, and weare preparing for a new stage of development under the direction and goals described in the 14th Five-Year Plan (14th FYP) and are strivingto achieve these goals.
The company has been included in various domestic and international sustainability indexes, demonstrating capital markets’ recognition ofthe company’s ESG efforts.
Stepping up rural vitalisationBoosting regional economic
developmentImproving of income distribution
and sharing the fruits of company
developmentStrengthening green building capabilities
and implementing “four savings and oneconservation”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
Planning forSustainability
Adhere to green development principlesand advocate for the peak emissions and
carbon neutrality goals
Take actions that promote shareddevelopment strategies and common
prosperity
Improvement of public service system Development of public service projects
Actively participate in public service
Hang Seng (China A) Corporate Sustainability
Benchmark Index (“HSCASUSB”)Hang Seng SCHK China Central Central State-owned Enterprises (SOEs) ESG Leaders IndexHang Seng SCHK China Central SOEs ESG 40 Index
Hang Seng SCHK China Central State-owned
Enterprises ESG Enhanced IndexHang Seng SCHK China Central State-owned
Enterprises ESG Index
FTSE4Good Index SeriesCSI 800 ESG Benchmark indexShanghai and Shenzhen 300 ESG Benchmark index
SSE 180 ESG Benchmark indexChina Reform Central- SOEs ESG Growth 100 Index
CTG DUTY-FREE’s 2024 ESG performance and 2025 ESG targetsSectorAchievement of 2024 ESG targets2025 ESG targets
Green office
? Continued to advocate energy conservation and emissions
reduction, fully implemented energy conservation andenvironmental protection initiatives, and thoroughly put the“Green and Low Carbon Initiative” into practice? In 2024, no major incidents involving energy conservation
or environmental protection violations occurred, andthe company received no penalties or notifications fromenvironmental protection authorities
? Continue to advocate energy conservation and emissionsreduction, and improve green operations managementcapabilities and energy efficiency? Avoid major incidents involving energy conservation orenvironmental protection violations and avoid penalties ornotifications from environmental protection authorities
Greenbuilding
? Sanya International Duty-Free Shopping Complex ZoneC obtained 2-star Green Building certification? Haikou International Duty-Free Shopping Complex (BlockNo.4) obtained 2-star Green Building pre-certification? Continuously optimised existing facilities’ energy
efficient transformation, and conducted carbon footprintmanagement? Worked with brand partners to apply for LEED certifications:
13 stores/counters obtained LEED certifications
? Follow green building standards in new constructionprojects and apply for green building certifications? Continue to promote energy-efficient transformation ofexisting facilities? Actively explore the use of new energy sources? Facilitate brand partners to obtain LEED certification
Operational
safety
? 129 responsibility pledges were signed regardingoperational safety targets, reflecting 100% coverage, andfull coverage of operational safety responsibility (for leads incharge) was achieved? Conducted routine inspection and expert diagnostic safety
inspection activities, and full coverage of operational safetyinspections (for all places) was achieved? Held 770 operational safety trainings, 218 themedlectures, drawing 32,300 participants, and full coverage ofoperational safety training (for all staff)? No safety accidents and no work-related fatalitiesthroughout the year? Enhanced automation and smart operations, diligently
staged emergency drills? Spent a total of CNY21.77 million in operational safety
? Achieve 100% signatures for the responsibility pledge
regarding operational safety targets and 100% coverage ofoperational safety responsibility? 100% coverage of operational safety inspections (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
Training
? Invested CNY9.54 million in employee training; total training
hours exceeded 633,700 hours; training coverage reached100% of personnel; and on average, each employeeparticipated in 40.03 training hours
? Guarantee investments in employee training? Guarantee investments in launching training activities? Continue to diversify training courses
Anti-corruptionadvocacy
? Conducted onboarding integrity training for 100% of new
leaders? Carried out seven anti-commercial bribery and anti-
corruption trainings for all employees, three anti-commercial
bribery and anti-corruption trainings for Managerial
employees, and one anti-corruption training for directors
and supervisors, including independent directors, with a
training coverage rate of 100%
? Conduct onboarding integrity training for 100% of newleaders? Conduct onboarding integrity training for 100% of new
joiners? Achieve a 100% coverage rate in annual anti-corruption
training
Publicservices
? Spent CNY13.72 million in free aid in rural revitalization,
implemented 15 assistance projects and helped raiseCNY6.42 million in assistance funds? The company fully leveraged its influence in the supply
chain and cooperates with multiple partners – from brandpartners to consumers – to jointly explore innovative pathsto green and sustainable development? Actively participate in environmental protection, education,
community activities and other public welfare undertakings
? Closely monitor and respond to community and societal
needs
Principles of GovernanceProsperityPeoplePlanet
▍Stakeholder Communication
Stakeholder Communication Mechanisms
The company attaches great importance to communication with stakeholders and actively builds a robust internal and externalcommunication platform. We pay attention to material issues of concern to our stakeholders and continuously reinforce our management tobetter respond to their expectations and create value for them.StakeholdersStakeholder expectationsCommunication and participation mechanismCorporate response
Shareholder/Investors
Improvement of marketcapitalisation and profitabilityProtecting shareholders’ rightsand interestsStandardisation corporategovernanceAccurate information disclosureSmooth investor communicationImprovement of ESGperformanceBusiness StrategiesChanges in Industry PolicyBusiness Development Directions
Periodic reports and announcementsCommunication via SSE e-interactive platformOfficial website, new media platforms,
telephone, fax and emails, General Meetingof Shareholders, performance presentations,roadshows, analyst meetings, investor receptionday, investor seminars
Provision of truthful and adequate
information disclosureImprovement performance and
generate profitsDiversified investor communication
channelsImprovement of ESG practices
Consumers
Product quality guaranteeImprovement of shopping
experienceProtecting customers’ legitimate
rights and interests
Communication during service processDiversified after-sales channelsCustomer satisfaction surveys
Meeting product qualityGood service qualityImprovement of the mechanism ofafter-sales serviceInnovative service practice
Employees
Guaranteed remunerationGood working environmentImprovement of communication
mechanismsEmployee development and
career paths
Employment contractsTrade union, general meetings of employeerepresentativesSeminars and condolence visits
Enhancement of the remuneration
and welfare systemImprovement of the system for
general meetings of employee
representativesProvision of a strong career
development ladderDiversified staff trainingsVarious staff activitiesEstablishment of healthy and safe
working environment
Businesspartners
Honest, fair, and provision ofmutual benefitsMaintenance 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
cooperation models
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
andregulators
Law-abiding compliantoperationsUndertaking social responsibilityPromotion of economic
development
Participation in relevant trainings, and conferencesDaily communication and information reportingDocument notificationsCooperation between government and enterprise
Abiding by laws and policyrequirementsTax payment in accordance with lawsCompliant information disclosurePromoting regional economicdevelopmentIncrease of local employmentIndustryassociations
Promotion of industry
development
Daily communicationDocument notificationsParticipation in associations’ conferences and
activities
Performing duties as an associationmemberParticipating in conferences
and activities held by industryassociationsSharing our experiences with a wideaudience
Double Materiality Assessment forSustainability 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).
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.
Identify the topics and form a database
● We form a basic database based on the findings of the Sustainability Report (Trial) issued by the Shanghai Stock
Exchange, the ESG Code issued by the Hong Kong Stock Exchange, and the ESG Metrics System for ESG Reportsof Listed Companies Controlled by Central State-owned Enterprises issued by the SASAC; and in combinationwith international sustainability frameworks and disclosure standards, such as the GRI standards, UN SDGs, theSustainability Accounting Standards Board (SASB).
● To form the final database, we incorporated macro policies, key areas of the company’s sustainability work, feedback
from stakeholders, industry topics concerned by capital markets such as MSCI, S&P DJSI, CDP, Morningstar, andtopics disclosed by peer companies at home and abroad.Communication and survey with stakeholders
● Prepare the online questionnaire to assess material sustainability topics, and the questionnaire is designed to take into
account two dimensions (financial materiality and impact materiality), then invite stakeholders to rate the materiality ofrelevant topics;
● Interview stakeholders to collect feedback and suggestions on sustainable development practices from supply chain
partners, ESG specialist and others, on our sustainability practices, and their views on future sustainability strategy.Engaging with key stakeholders and experts
● In terms of financial materiality, the financial department identified topics with potential financial materiality, which were then
reviewed and confirmed by the relevant departments who are responsible for operational management of these topics.
● The topics with potential financial materiality that had been confirmed on a preliminary basis were then compared
against the company’s key areas of business management, SASB and disclosures of peer companies at home andabroad, with no significant differences found. We then further screened the list of topics with financial materiality.
Topic confirmation and approval
● The assessment results of the double materiality assessment were then submitted to the Board’s Strategy and
Sustainability Committee under the Board for deliberation;
● Relevant departments further strengthened sustainability management and disclosures regarding the approved
financially material topics.
Review and continuous follow-up
● After the end of the reporting period, the company will organise stakeholders to give feedback on the contents of the
Report and prepare for the future sustainability management and disclosure.
CTG DUTY-FREE’s process for assessing the materiality of sustainability topics
Principles of GovernanceProsperityPeoplePlanet
CTG DUTY-FREE’s double materiality topics databaseThe company assesses the double materiality of sustainability topics from the two dimensions of “financial materiality” and “impactmateriality”. Based on an effective selection from the database and sufficient stakeholder engagement, the company has depicted amateriality assessment matrix and finally identified 6 topics of both financial materiality and impact materiality, 15 topics of only impactmateriality but not financial materiality, and 4 topics that are neither of financial materiality nor of impact materiality.
CTG DUTY-FREE’s double materiality topics matrix
The materiality on impacts of the economy, society, and environment
The materiality on impacts of the company’s finance
Important
Not relevantImportant
Environmental compliancemanagement, Packaging materialmanagement, Waste disposal,Usage of water resources, Circulareconomy, Collaborating with brandpartners to promote environmental
protection, Excellent service
experience, Contributions tothe society, Intellectual propertyprotection, Response to nationalstrategies and rural revitalization,Innovation-driven, Anti-commercialbribery and anti-corruption, Anti -unfair competition, Communications
with stakeholders, Due diligence
Climate change tackling,Energy usage, Safety and
quality of products andservices, Employees，Supply chain security，Datasecurity and customer privacy
protection
Pollutant discharge, Ecosystemand biodiversity protection, Ethicsof science and technology, Equaltreatment to small and medium-sized
enterprises
CategoryNumber
Sustainabilitytopics
Financialmateriality
Impactmateriality
Environment
Climate changetackling
??
Environmentalcompliancemanagement
?
Packaging materialmanagement
?
Waste disposal?
Energy usage??
Usage of waterresources
?
Circular economy?
Collaborating withbrand partnersto promoteenvironmentalprotection
?
Pollutant discharge
Ecosystem andbiodiversityprotection
Social
Excellent serviceexperience
?
Safety and qualityof products andservices
??
Employees??
Contributions to thesociety
?
Supply chainsecurity
??
Data security andcustomer privacyprotection
??
Intellectual propertyprotection
?
Response tonational strategiesand ruralrevitalization
?
Innovation-driven?
Ethics of scienceand technology
Equal treatment tosmall and medium-sized enterprises
Governance
Anti-commercialbribery and anti-corruption
?
Anti – unfaircompetition
?
Communicationswith stakeholders
?
Due diligence?
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”, the “Rules of Procedureof the Supervisory Board” and the “Rules of Work of the GeneralManager” in accordance with the requirements of the CompanyLaw and the Code of Governance for Listed Companies. Duringthe reporting period, the company established and refined its“1+N” corporate governance system. It made high-quality revisionsto 12 governance-related documents, including the “Articles ofAssociation”, the “Rules of Procedure of the General Meeting ofShareholders”, the “Rules of Procedure of the Board of Directors”,the “Independent Director System”, and the rules of procedurefor special committees, thereby strengthening the foundation ofcorporate governance. We continued to enhance the operationalmechanisms of the Board, optimised the Board’s composition,actively promoted Board member diversity, and leveraged theeffectiveness of special committees, with a view to substantiallyimproving the quality and efficiency of decision-making.As of 31 December 2024, the company’s Board comprisedeight directors, including two female directors, representing25% of the board of directors. Three independent directors aremainly drawn from first-class universities, research institutesand think tanks. They have held important positions in large
▍Corporate GovernanceRobust Governance System
Robust Governance System for Long-term Stable Operations
General Meetingof Shareholders(Authority)Board of Directors(Decision-makingBody)
SupervisoryCommittee(Supervisory Body)
Board of DirectorsAudit and RiskManagement Committee
Board of DirectorsNomination Committee
Board of DirectorsStrategy and SustainabilityCommittee
Board of DirectorsRemuneration andAppraisal CommitteeManagement
The company has established a governance system consistingof the Party Committee, General Meeting of Shareholders,the Board of Directors, the Supervisory Committee, and theManagement with a clear division of authority, responsibilities,and regular operations. The Party Committee plays a leadingrole in “setting the direction, managing the overall picture, andensuring implementation”, and implements the decisions and plansmade by the CPC Central Committee and national developmentstrategies. The General Meeting of Shareholders represents thehighest decision-making authority and plays an overall guidingrole in the company’s operation and development. The Board ofDirectors plays the role of “setting strategy, making decisions andpreventing risks”, exercising decision-making power on majorissues of the company in accordance with legal procedures andthe “Articles of Association”, and carrying out its work strictly withthe “Articles of Association” and the “Rules of Procedure of the
Board of Directors”. Four special committees, namely the Strategyand Sustainability Committee, the Audit and Risk ManagementCommittee, the Remuneration and Evaluation Committee andthe Nomination Committee, have been set up under the Boardof Directors to provide consultation and advice to the Boardon significant decisions. The Supervisory Committee, as thesupervisory body, is responsible for overseeing the performance ofthe Board and management. The management level is responsiblefor the operation, implementation, and administration, and issubject to the management of the Board of Directors and thesupervision of the Supervisory Committee. In 2024, the companyconvened 2 shareholders’ meetings, 15 board meetings, and 6supervisory board meetings. The special committees of the boardof directors held 19 meetings in total. Among these meetings, theBoard of Directors Strategy and Sustainability Committee held 4meetings in total.
state-owned enterprises, financial enterprises, and accountingfirms, and they possess strong professional qualifications andexperience in financial audit, legal risk control, new retail, anddigital transformation. Their presence enhances the diversityand complementarity of the company’s Board in terms of themembers’ experience and capabilities. We are committed tocultivating a professional and diverse Board of Directors that alignswith the strategic positioning of the company as a world-classtourism retail enterprise. All directors have a term of three years,and accessible for re-election when their term of office expires, ifeligible. Independent non-executive directors are not allowed tohold the position for more than six consecutive years. In termsof educational background, 3 directors have doctorate degrees,4 have master’s degrees, and one has a bachelor’s degree. Thedirectors have a balanced mix of knowledge and skills. Theyobtained degrees in various areas and possess experience fromdifferent industries and sectors. The current Board is characterisedby significant diversity in terms of skills, experience, knowledge,gender, age and other areas, in compliance with the requirementson Board diversity.The company’s Supervisory Board comprises three members,including two female members (67% representation). Thecompany’s senior management consists of 8 executives, including2 female executive, representing 25% of senior managementpersonnel.
Principles of GovernanceProsperityPeoplePlanet
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.
Professional backgrounds of Board membersName
BusinessManagement
Retailindustry
Finance &accounting
Legalexpert
Digitaltransformation
Informationsecurity/cyber
security
Environmental protection/energy conservation andemission reduction/resource
and energy use
1FAN Yunjun????2LIU Kun???3WANG Xuan??4CHANG Zhujun??5WANG Yuehao??6GE Ming?7WANG Ying?8WANG Qiang??
CTG DUTY-FREE Sustainable Development Governance Structure
TheBoard ofDirectorsThe Strategy andSustainability Committee ofthe Board of Directors MainCommittee on Sustainability
Governancethe Sustainable Development Leadership Groupis responsible for managing and coordinating the
sustainable development related work
? The highest decision-making authority for the company’s sustainable development matter
? conducts research and makes recommendations on matters relating to theCompany’s sustainable development, including but not limited to vision, targetsand policies;? studies the Company’s sustainable development strategy and the materialissues that stakeholders are concerned about and put forward correspondingsuggestions;? tracks and inspects the implementation and improvement of sustainabledevelopment matter to ensure that the management and decision-makingmechanism of important sustainability issues, including but not limited toenvironment, anti-corruption, occupational safety and health, comply with therequirements of relevant laws and regulations
? reviews the Company’s reports on sustainable development matters and
reports to the Board of Directors
? headed by the Chairman of the company; the deputy head of it
is the General Manager; and its members include heads of eachmain departments
? leads the company’s sustainable development work, and
establishes and improves the company’s management systemand operating mechanism for sustainable development relatedwork
? integrates the development strategy, image, brand and operations
with sustainable development concepts
▍Information DisclosureThe 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 the Company Law, the Securities Law andother 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.
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 for enhancing the quality oflisted central enterprises, the company prioritises investor needsby innovating disclosure content and formats and continuouslyimproving transparency and granularity. The company has beenawarded an A-grade evaluation for information disclosures by theSSE for the past nine consecutive years (fewer than 3% of listedcompanies have achieved this honour for nine consecutive years).
Held 3 business trackingexchange meetings
Staged 3 performancepresentations
Conducted 62 investor surveys and 4 fieldresearch activitiesHeld136 strategy sessionswith brokers
Fielded over1,000 investor hotlineinquiriesInteracted with about4,600 investors, including 3,556 institutional investors
Conducted126 diverse communication activities
Sent150+ email responses
In 2024, the company:
In 2024, the company improved its mechanism for investorrelations (IR) activities:
? Developed and executed annual IR plans and related scheduleswith clear timelines
? Conducted targeted IR activities for different groups based on
information disclosures made by the company? Based on the company’s business activities, innovated cdf-
specific IR activities that align with market initiatives
? Established mechanisms to monitor public sentiment and
provided proactive guidance to cultivate a positive perception of
the company in the market
? Enacted structured dividend distribution policies to strengthen
the value of the company as perceived by investors
Guided by the needs of investors, the company continuously enriches and improves the smooth investor communication channels toenhance pertinence and effectiveness. We also improve the quality of investor relationship management and convey corporate investmentvalue to the market precisely and timely to promote high-quality development of the company.
▍Investor RelationsThe company strictly complies with the Company Law, the Securities Law, the Listed Company Investor Relations Management Guidanceand other laws and regulations. To improve corporate governance, deliver greater overall value and protect investor rights, in 2024, thecompany revised the “Investor Relations Management System”, actively responded to market demand, and carried out a series of appealing,multi-tiered investment activities for the capital market and investors.
Principles of GovernanceProsperityPeoplePlanet
cdf-style Hainan sharing session – inviting investors to experience cdfCase study
Livestream performance presentation – pioneering a “zero distance” IR modelCase study
In April 2024, during the 4th China International ConsumerProducts Expo in Haikou, Hainan province, the company invitedkey institutional investors to gather for a research seminar onthe island. At the flagship Hainan store, we held a thematicsharing session titled “Looking at High Mountains, Gazing atLong Rivers”. The company’s representatives outlined cdf’sfuture strategies for Hainan’s offshore duty-free business and
engaged in in-depth discussions on investor concerns, includingbusiness enhancement measures, membership expansion/management, and customer service improvements. After thesession, investors participated in interactive brand experiences,giving them the chance to enjoy cdf’s premium servicesfirsthand.
On 5 June 2024, at the Shanghai Stock Exchange RoadshowCentre in Beijing, the company’s leadership held the 2023annual and 2024 Q1 performance presentation using a“livestream + onsite presentation + multi-platform interaction”approach. At the session, executives presented corporateupdates and addressed investor queries in detail. Using thisomni-channel approach, we were able to bridge communicationgaps between the company and institutional investors, retailinvestors and brokers, resolving concerns while directing thefocus of the market to key areas and providing informationregarding strategic adjustments that will be made in the future.This presentation was recognised as a “Best Practices Case forPerformance Presentations” by the China Association for PublicCompanies.
The investor
hotline
Strategy sessions withbrokers
The company’sofficial website
Online and Offlineinvestor researchmeetings
The SSEe-interactive
platformInvestor reception day
Investor relationsemails
Roadshowpresentations
Investor RelationsWeChat official accountand appletField research activitiesPerformancepresentations
General Meetings ofShareholders
Diversified Communication Mechanism
▍Compliance Management
Risk Management
The company formulated the “Measures on Comprehensive Risk Management” and the “Management Regulations on the Reporting ofSignificant Operational Risk Events”, to establish an effective and comprehensive risk management system; improve risk prevention andmanagement; clarify the collection, collation and reporting of significant operational risk events; and safeguard the company’s stableoperations and sustainable development.In terms of risk governance, the company has specified the top-level personnel responsible for operational risk management, the top-levelpersonnel responsible for monitoring and auditing risk management performance, and their relevant reporting lines.
Complying with Commercial Ethics to Reinforce Internal Control Compliance
Departments in chargeof comprehensive risk
management
The departments in charge of comprehensive risk management are the Legal andRisk Control Department. They are responsible for constructing and operating thecomprehensive risk management system; organising, coordinating, supervising,and inspecting risk management; and evaluating the effectiveness of subsidiaries’risk management. They provide professional advice for the company’s major riskdecisions.
Leads in charge ofrisk management
The company’s leads in charge of risk management preside over the daily work ofcomprehensive risk management. They are accountable to the general manager,and they exercise their risk management duties subject to the general manager’sauthorisation.
General manager
The company’s general manager is responsible for guiding the company’s overallrisk management, approving risk management matters subject to its authorisation,and authorising the company’s leads in charge to be responsible for organising andpromoting risk management.
Audit and RiskManagementCommittee under theBoard of Directors
Risk, internal control, and compliance responsibilities have been incorporated into theduties of the Audit and Risk Management Committee under the Board of Directors torefine the risk management corporate governance structure.
Board ofDirectors
The Board of Directors is the leadership group responsible for the company’soverall risk management, and for ensuring the effectiveness of comprehensive riskmanagement.
In this regard, the first objective is to establish the risk classificationof each business, fully apply the results of risk loss event analysis,internal control supervision and inspection, quantify the relevantcriteria for risk analysis, and form a panoramic risk list for eachbusiness through bottom-up aggregation of risks.The second objective is to further deepen and expand the studyof risk early warning indicators, the key business areas areselected, and the selection of industry indicators and the designof early warning thresholds are studied from both quantitative andqualitative aspects to form a holistic risk early warning indicatorapplicable to the company. Starting from the existing system ofearly warning indicators for risk, the company has been optimising
and refining how indicators and early warning thresholds are set,and cooperating with the risk management system that achievesdaily, full coverage, and visual management of operational risksacross all the company’s important sectors.The third objective is to evaluate the probability and impact ofeach risk according to specific risks in the risk database. Theevaluation team comprises the company’s management, variousdepartments, and key subsidiaries. Ultimately, the team determinesthe risk priorities for the coming year based on the comprehensiveassessment, and response plans are devised for the top 10 risks.The company monitors and tracks its risk response on a quarterlybasis to improve its risk response capabilities.
The company performs an annual assessment of material risks based on two dimensions: the possibility of risk and the magnitude ofimpacts. CTG DUTY-FREE trained the compliance risk topics to all staff quarterly to enhance their awareness.Organising a company-wide risk assessment to study and determine the risk situation in the coming year
Principles of GovernanceProsperityPeoplePlanet
Highlightingkey points
Hierarchicalmanagement
Three-dimensionalrisk preventionand control
To this end, we have initiated the systematic constructionof an internal control system, conducted risk analysis anddiagnosis of business processes throughout the system,urged relevant units to implement rectifications accordingto the risk diagnosis report, and put forward optimisationsuggestions for key issues, such as the company’s digitaltransformation, to support management decision-making andenhance the company’s overall operations and management.
The company also embeds its own requirements on riskmanagement and control into specific control points andmaps specific responsibilities to information in the riskdatabase. In this way, we ensure that the company’sinternal control lists and programmes and internal controlsystem are vertically linked and horizontally consistent.Using the system, we can generate useful managementtools, such as a practical internal control manual thatreflects the company’s business reality, as well as riskcontrol blacklists and whitelists.At the end of the reporting period, the company had not identified any long-term emerging risks that could have a significant impact onfuture business. The company will continue to conduct risk assessments and analyse the potential impacts of emerging risks and formulatesolutions if any long-term emerging risks are identified.
Conducting special training on risk compliance topics and cultivating a risk management cultureThe company delivers training on compliance risk topics to all staff on a quarterly basis to enhance their awareness of the importance ofcompliance issues.We have taken the following actions to create an effective risk management culture within the company:
According to the requirements of the company’s “14th Five-Year” strategic plan to comprehensively improve risk management and control,we comprehensively organise and implement tasks related to the risk management and control system and tasks related to the “year forstrengthening compliance management”. The company plans to establish a long-term management mechanism to enhance its overallmanagement and risk prevention capabilities.
Deepening and expanding the study of early warningindicators for risksIn 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.
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 2024.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.
Improving the evaluation report mechanism andstrengthening the foundation for risk management
In 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 tools ofrisk management reporting, we are requiring for the first time thatkey subsidiaries prepare their own risk management reports basedon annual risk assessments. The company considers these riskmanagement reports to be an important method for comprehensivelysummarising, evaluating and supervising the risk management workof each key subsidiary. Gradually, we will form a risk managementmodel that entails “highlighting key points, hierarchical management,and three-dimensional risk prevention and control,” enablingquantitative, full-coverage, visualised management of operational risksacross all the company’s important sectors.
In accordance with the -Basic Standards for Enterprise Internal Control,the Application Guidelines for Enterprise Internal Control, the Guidelinesfor Corporate Internal Control Assessment and other regulations, thecompany has formulated the “Management Measures on Internal Control”to establish a robust and comprehensive internal control system. Thecompany has established a management and organisational system forinternal control comprising the Board of Directors, Board of Supervisors,Operating Department, Internal Control Construction Department,Internal Control Operations Department, and Internal Control SupervisionDepartment. For internal control management, the company adopts asystem of “centralised leadership and hierarchical responsibilities”, whichcombines the comprehensive management of internal control supervisionand management departments with the professional management offunctional departments.
In 2024, with a focus on pursuing special achievements in theconstruction of the compliance system, we held the company-wide “Special Training for Compliance Management Work” session,providing training on compliance management tools and promotingthe use of such tools to all employees. We also held specialachievement planning meetings with key subsidiaries that havededicated compliance management departments, supervised theon-site implementation of compliance management projects, andpromoted the gradual improvement of subsidiaries’ compliancemanagement systems.
To reinforce professional leadership in respect of the rule of lawand compliance management, in 2024, key third-level enterprisesestablished compliance management committees to study andplan important compliance work; promote the implementation ofthe company’s rule of law governance, and compliance operationsand management; and form a work model that embeds compliancemanagement across the entire organisation from top to bottom.
In July 2024, a reporting platform for violations was establishedto accept reports of violations by the company’s enterprises andemployees at all levels, and the “Notice on Reporting Violations”and relevant guidelines for acceptance and disposal were issued.In addition, the company established a risk database for violationevents and violation reporting, and suspected cases of violations arerequired are required to be reported to relevant departments in apromptly manner.Specifically, the company established and piloted the CTG DUTY-FREE compliance administrator mechanism. The headquarters andsubordinate enterprises have set up compliance administratorsbased on their own specific conditions. By the end of 2024, a totalof 119 compliance administrators had been established, coveringall enterprises and key business areas and links. The complianceadministrators ensure that responsibilities in areas such as systemconstruction and compliance review are fulfilled in accordance withregulations.
By the end of 2024, a total of
compliance administrators
First, we strived to make special achievements in theconstruction of the compliance system.
Second, we strengthened organisational leadership andoverall coordination in compliance management.
Third, the company established and improved its violationreporting mechanism.
Fourth, we implemented a compliance administratormechanism.
Compliance management
To improve the company’s compliance regarding operationsand management and to meet corporate needs in preventingcompliance risks, the company has formulated the “ComplianceManagement Measures” to strengthen compliance management,and build an effective compliance management system. In 2024,the company’s compliance management focused on the following:
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 as thecompliance of business expenses. In addition to ethical codes, theaudit also covered corporate governance, strategic decision-making,human resources management, financial management, procurementmanagement, project management, investment management,information systems and other business areas.
Internal control management
The company implements the internal control evaluations and preparesthe “Internal Control Evaluation Report” annually, which is disclosed onthe SSE website concurrently as the Annual Report.The company carry out various internal evaluations for affiliated companies
to ensure the full coverage of corporate top-down internal management.Annual internal self-assessment covers all affiliated companies, theevaluated areas including social responsibility, safety and health,environmental protection, etc. Core entities perform semi-annual internalself-assessment regarding focused areas. On-site internal supervisoryassessment is implemented irregularly. External auditors carry out theauditing task of annual internal control.According to the relevant regulatory provisions, the company formulated
the “Management Regulations on Rectification of Issues Identified inInternal Audits”. These regulations aim to standardise relevant rectificationprocesses, strengthen the implementation of audit rectification, andimprove the effectiveness of audit oversights. They also seek to clarifyrectification responsibilities, rectification procedures, result identification,supervision and inspection, responsibility constraints, and resultimplementation, while improving the internal audit system.In 2024, the company revised the “Management Measures on InternalControl” to further optimise the organisation structure of internal control,improve the internal control supervision mechanism, ensure that the internalcontrol system always meets the needs of enterprise development, and laya solid foundation for the long-term stable development of the company.
Principles of GovernanceProsperityPeoplePlanet
On 13 September 2024, the company’s Legal and Risk ControlDepartment held a special training session on “Risk Preventionagainst Legal Violations by Employees,” which was attended byrelevant employees from the Sanya store, the Phoenix AirportDuty-Free Shop and IPRO Company (智科公司). The trainingwas offered in both online and in-person formats. The mainvenues for the offline training were the Beijing headquarters andcertain companies in Hainan. The training session, which wasattended by about 2,000 employees, was designed to furtherimprove the company’s compliance management, raise thelegal compliance awareness of employees and promote thedevelopment of a compliance culture.
▼
Special training on “Risk Prevention against Legal Violations byEmployees”
4 December 2024 marked the 11th National Constitution Day.According to the requirements of the Ministry of Justice’s“2024 National Constitution Week,” from 2 to 6 December, thecompany carried out the Constitution Publicity Week activitywith the theme of “Protecting Life with the Law.” On these days,we played promotional videos publicising legal topics on thecompany’s LED display screens.
▼
Constitution Publicity Week Activity: “Protecting Life with the Law”
On 29 March 2024, the company’s Legal and Risk Control Department held a special training session on compliance management,with more than 700 people participating. The training, which was delivered by members of the company’s compliance systemconstruction project team, focused on the necessity of the construction of the company’s compliance system, compliancemanagement requirements, the structure of the compliance management organisation, the responsibilities of compliance managementin respect of the “three lines of defence,” the operating mechanism and supporting tools for compliance management, and thespecific use of project results (the CTS duty-free compliance risk list, the general compliance control list, the compliance managementmanual, etc.).
Special training on “Risk Prevention against Legal Violations by Employees” wassuccessfully completedCase study
Anti-money laundering (AML)We strictly comply with the Anti-money Laundering Law and other laws and regulations in the regions in which we operate. Accordingly,we have developed AML policies and procedures, such as “Know Your Customer” procedures, transaction monitoring, and suspicioustransaction reporting and recordkeeping. The company is constantly looking for ways to further improve its anti-money laundering measures.In addition, we provide AML training to our employees to ensure that they are kept abreast of laws, regulations, and updates to our AMLpolicies and procedures.
The company conducted special training on compliance management
Case study
The company launched the activities of “Protecting Life with the Law” in Constitution Week
Case study
The 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 two meetingsduring the year. They coordinate the supervision of all parties toenhance supervisory effectiveness in accordance with the workingrules.
System and Mechanisms
The 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,strictly prohibits the revealing of whistle-blowers’ information andgiving priority to handling the accusations with a real name; foranonymous reports and reporting materials, unauthorised checksof the whistle-blowers’ information are strictly forbidden.
Reporting Mechanisms
The 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.
Dedicated Supervision
The 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’sEight-point Decision” to reinforce the construction of a culture ofintegrity and the disciplinary structure. Moreover, the company heldvarious anti-corruption and compliance training sessions, engagedin anti-corruption dialogue with new hires during the on-boardingprocess, staged educational seminars for all CTG DUTY-FREEemployees to warn against the dangers of corruption, carried outeducational activities through the “cdf e-Party” application, andstrengthened education for company cadres to remind them todistance themselves from corruption and stay committed to actingwith integrity and complying with the law.
Advocacy against corruption
The company has formulated the “Conclusive Evaluation Methodfor Personnel Selection and Appointment and Operational Integrity”in order to thoroughly meet the rigorous requirements for theParty’s governance, strengthen the selection and appointment ofcadres by the company’s CPC Committee, select honest peoplewith integrity, and prevent corrupt officials from being promoted.
Select and appoint cadres with integrity
the company conductedseven
anti-commercial bribery and anti-corruption training sessionsfor all employees
In 2024, the company conducted seven anti-commercial briberyand anti-corruption training sessions for all employees; threeanti-commercial bribery and anti-corruption training sessions formanagement personnel, each with a duration of 2 hours and acoverage rate of 100%; and one anti-corruption training session fordirectors and supervisors, including for independent directors, witha coverage rate of 100%.
In 2024, the company concluded one corruption lawsuit, and nocorruption-related violations occurred during the year. The numberof effective corruption reports received was 0.
Anti-corruption
▍Business Ethics
The company strictly abides by the Law of the People’s Republic of China Against Unfair Competition and other laws and regulations. Weparticipate in fair market competition according to business ethics and market rules and forbid commercial bribery, and we continuouslyoptimise the company’s anti-bribery mechanism to ensure its effectiveness. We are earnest in conducting self-examinations and self-rectifications, and we do not violate any laws, regulations, business ethics or market rules in business activities or engage in any unfairtrading practices that undermine fair competition. The company continues to attract consumers by engaging in trusted business operationsand providing excellent services, and we continue to promote anti-corruption, anti-monopoly, and human rights protection initiatives inrelation to our suppliers.Working with Customs to combat the practice of the “reselling duty-free goods”, CTG Duty Free makes efforts to raise the legal andcompliance awareness of consumers by informing them of the consequences of such practices and strengthening self-supervision.
Principles of GovernanceProsperityPeoplePlanet
Data Security and Customer PrivacyProtection
● Governance
Pursuant to relevant laws and regulations, including theCybersecurity Law of the People’s Republic of China, theData Security Law of the People’s Republic of China, thePersonal Information Protection Law of the People’s Republicof China, the Regulations on Protecting the Security of CriticalInformation Infrastructure, and the Administrative Measuresfor the Multi-level Protection of Information Security, we havedeveloped a system of cybersecurity policies, taking intoaccount the “Cybersecurity and Information Policy of ChinaTourism Group Duty-Free Corporation Limited.”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 asthe “CDFG Privacy Policy”.
Development of information and data security systems
The 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 managementsystems that cover information security management,network security management, data management, informationencryption rules, information security emergency plans andother aspects of information security management. In thisway, we have developed comprehensive information securitymanagement systems that feature well-defined responsibilities,a clear division of labour and a combination of technologyand management. In line with national standards, industrystandards, and the circumstances specific to the duty-freeindustry, we have developed our first system of informationtechnology standards, which establishes principles andstandards for the performance of information technology-related work. The company’s Board of Directors is the highestresponsibility and decision-making authority with regards toinformation security and privacy protection. The InformationTechnology (IT) Department is responsible for specific workin information security and privacy protection. The Brandand Marketing Department is responsible for carrying out thespecific work for customer privacy protection. To keep theteam updated with the latest IT knowledge, IT staff membersare required to receive regular training.
Customer privacy protection
We have developed relevant policies, including the “PrivacyProtection for Customer Services” and the “Checkpoints forCustomer Services”. In November 2024, the company updatedits customer privacy policy, which is available to consumersand other stakeholders on its website (http://www.ctgdutyfree.com.cn/p/yinsizhengce.html).
MetricsUnit
Number bythe end of 2024Number of IPRs,such as trademarks
and copyrights
Item72 (including 46 software
copyrights in 2024)Number of valid
patents
Item2Number of effective
patents perCNY100 million of
revenue
Item/CNY100 million
0.004
Number of software
programs perCNY100 million of
revenue
Item/CNY100 million
0.127
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.
Anti-unfair competition
The company has always strived to conduct its businessactivities in a legal, compliant and ethically responsible manner,strictly complying with relevant laws and regulations such as theAnti-monopoly Law of the People’s Republic of China and theLaw of the People’s Republic of China against Unfair Competition.The company is fully committed to implementing relevant legalprovisions, including prohibitions on entering into arrangementswith distributors, customers, and suppliers that may harmcompetition and consumer rights, and prohibitions on abuse ofmarket dominance. At the same time, the company is steadilyintegrating the concepts and values of anti-unfair competition intothe daily behaviour of its employees.
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.As of 31 December 2024, the company had obtained the followingintellectual property rights:
● StrategySecurity strategy
The company regularly carries out special actions relatedto information system security. We also incorporate datasecurity into our overall strategy and clearly define the typesof data security events, which include data tampering, datacounterfeiting, data leakage, social engineering, data theft, anddata interception.In 2024, we performed an analysis of the company’s networkarchitecture and its ability to prevent risks. To safeguard thecompany’s network, we applied an approach that combines“in-depth defence” and “active defence”. We developed an“in-depth defence” system that covers coordination at differentlevels, correlation analysis, and concerted actions; and an“active defence” system that can quickly and accuratelyperceive and prevent risks based on the sources, methods,and pathways of an attack.
CybersecurityThe company has revised the “Cybersecurity Policy of ChinaTourism Group Duty-Free Corporation Limited”. Under theguidance of the headquarters, all key subsidiaries are requiredto develop their cybersecurity policy, which should defineoverall objectives and responsibilities and cover cybersecuritymanagement, host security management, terminal securitymanagement, application development security management,and data security management, to ensure the company’snetwork and information systems operate in a safe, reliableand stable manner. The company has also established a soundemergency plan for cybersecurity incidents, which includesboth safeguards and emergency measures and defines thecentral leadership and responsibilities at each level. Underthe direction of the central team, we coordinate to mount aquick response and appropriately handle incidents; we takeprecautions first and also put in place emergency measures;and we adhere to the principle of “Those who are in chargeand those who handle operations bear responsibility”. Usingthis emergency system and its safeguards, and under thecentral leadership, we are able to coordinate, communicateeffectively, respond rapidly, and work efficiently to addressincidents.
Data securityThe company cooperates with leading domestic securityserver providers and adopts a variety of security protectionmeans to guarantee the security of key information systems.The company also establishes a reliable data backup plan toprovide double protection to ensure the information security ofour company.The company inspects its information system regularly forall types of operating and maintenance events and performschecks to safeguard the system’s health. Daily automatic ormanual inspections are carried out for key information systemto ensure that the information system operates in a routine andstable manner 24 hours per day. The company guaranteessound operations and maintenance for vital activities andevents and has formed a working mechanism to efficientlyresolve problems and rapidly rectify them afterwards.To improve the safety of employee work habits, raiseawareness of safety precautions, protect the company’sdata assets, and ensure that security threats are reported ina timely manner, the company conducted an online “SafetyAwareness Training” for all employees. The company providesdata security training for all staff at least biannually.
Customer privacy protection
In accordance with the Personal Information Protection Lawand our customer privacy protection policy, we take thefollowing measures to protect customers’ information:
Encrypted storage and transmission of information – Datamasking for customer information – Hierarchical accessmanagement – Multi-measure access control – Memberinformation not exportable – Establishing a sound system log –Membership system passes Level-3 Security CertificationA customer can register cdf memberships at the system ofmember terminal (cdf membership applet, cdf membershipApp, cdf Membership Club and other channels) in a self-service manner. Once the information is entered, the keyparts of the personal data are desensitised; and the customerhas the right to access, adjust and delete his/her personalinformation at any time. The company obtains personalinformation from the self-input of customers and does notcollect personal data from third parties (except when requiredby law). The company undertakes to delete customer datawithin the time limit required by law and does not providepersonal data to any third parties (except when required bylaw).
Define the central
leadership
CoordinateeffectivelyAppropriately
handleincidentsCommunicate
effectively
Respond rapidly
Work efficiently
Security andemergency
systemIndepth defenceActive defence
Principles of GovernanceProsperityPeoplePlanet
● Management of impacts, risks and opportunities● Metrics and Targets
In 2024, we carried out 46 privacy protection training sessionsfor customer service staff. With each session lasting 1 hour,we provided a total of 46 hours of training for each person;and we offered 30 online courses on information securityand privacy protection topics, including “Confidentiality –Confidentiality Obligations, Responsibilities and Awareness”,and the Data Security Law of the People’s Republic of China.
Data security:
Each year, the company regularly conducts one or twosimulation exercises using phishing and other social engineeringattacks, which allows employees to learn how to identifyand respond to various cybersecurity threats in a real-lifeenvironment, enhancing their security awareness.
Cybersecurity:
1. Dimensions of data security impact
1 Social impact
■Duty-free consumers’ data may be abused in a way that results in
violations of offshore duty-free quotas, such as the smuggling ofduty-free goods by “purchasing agents” (traders reselling duty-freegoods) in Hainan.
■Leakeage of passenger behaviour data may result in the data being
used for targeted scams, which would undermine social trust.2 Impact on the country
■Illegal cross-border transfer of consumers’ data may present a threat
to the customs supervision system.■Duty-free supply chain data that has been manipulated overseas may
present a danger to the safe distribution of strategic resources.
3 Impact on the business
■Leakage of membership information may cause the business to lose
high-end customers and incur costs in repairing damage to its brand.■ If the payment system becomes a target of online blackmail, duty-
free shops may suffer revenue loss.4 Impact on individuals
■ Leakage of biometric information may result in identity theft.■Analysis of consumption trails may result in the exposure of personal
trip information and privacy violations.
2. Risk management
1 Risk identification and assessment
■Maintaining a dynamic risk list, with a focus on monitoring the
following risks: membership system data leakage, supply chain data
tampering, etc.; regularly carrying out attack surface mapping, which
covers online malls’ API interfaces, offline self-service terminals and
other attack vectors.
2 Risk controls
■Technical protection: Applying the national security algorithm’s
encryption technology to customs declaration data.■Authority control: Implementing the principle of “separation
of powers”, with sensitive operations requiring dual biometric
authentication.
■Monitoring and early warning: The system is configured to detect
abnormal traffic and send alerts if transactions within a membership
account in a day exceed the set threshold.
3. Opportunity management
Realising the value of data; building a data centre; and exploringhow should we handle duty-free consumers’ data to complywith the offshore duty-free policy.
Casestudy
Conducting a complete security check on informationsystems and network boundaries to improve staff’scybersecurity awarenessIn 2024, the company’s headquarters and key subordinatecompanies developed a special company-wide workplan for cybersecurity, with a focus on system protectionplans. According to the plan, a central steering team anda special working group were set up. They conducteda complete security check over the company’s existinginformation systems and network boundaries, and carriedout enhancements for scanned vulnerabilities, phishingdrills, and safety training for staff. Through these efforts, weestablished a robust protection and response system, whichenables us to respond immediately and coordinate acrossdifferent levels to work efficiently and appropriately handle anyidentified incidents. We delivered a high-quality performancein the national-level cybersecurity drills. During the drills, weachieved our goal of “preventing every mock attack” andenhanced staff’s cybersecurity awareness.
Prosperity
CTG DUTY-FREE actively responds to United Nations (UN) SustainableDevelopment Goals (SDGs) 4, 10, 11, 12 and 15, and focus on meetingour social responsibility, pursuing excellence, and providing consumers withquality products and services.
Upholding Original Beliefs and Mission toEnsure Trusted Business Operations
Robust, Green and Intelligent Supply Chain66Setting the Industry Benchmark for High-quality Development
Engaging in Charity Initiatives to Act as aResponsible Corporate
Digitalisation and omni-channel are the developmental priorities ofthe tourism retail industry. The company continues to integrate itsonline and offline channels, providing consumers with “pre-sales,sales, and after-sales” tourism retail services that are both moreconvenient and of higher quality, fully meeting consumer shoppingneeds and ensuring consumers undergo a comfortable shoppingexperience throughout the entire process.
On 11 April 2022, President Xi Jinping visited Sanya International Duty-Free Shopping Complex. While there, he stressed the advantages ofleveraging China’s huge market size, the need to foster a favourable market environment with the necessity of trusted business operationsand excellent services in attracting customers, all with the aim of making a greater contribution to the development of “a free trade port withChinese characteristics”.▍Service Safety and QualityThe company actively carries out training on integrity and related business skills. We have also established a “Work Plan for Service Quality”to improve our system of quality standards for businesses and services and promote the “quality product” and “luxury product” strategies,demonstrating the company’s philosophy of “trusted business operations and excellent services”. The company has improved its customerservice capabilities and standards across various business lines to provide consumers with high-quality products and services.Governance
Upholding Original Beliefs and Mission to Ensure Trusted Business Operations
In compliance with current laws and regulations, such as theConsumer Rights Protection Law and the Personal InformationProtection Law, the company continues to improve its servicestandards, effectively carries out its work in accordance withestablished procedures and policies, and requires subordinatecompanies to develop their own policies.Customer service system in Hainan:
the “cdf After-sales Service Management Policy in Hainan(for Physical Stores)” and the “Detailed Rules for HandlingCustomer Complaints at Different Levels”Customer service system in Qianhai:
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” andthe “Emergency Response Rules for the Customer ServiceCentre”
Customer service system at Sunrise:
“cdf Sunrise’s Letter of Commitment on Making OutgoingCalls”, which applies to cdf Sunrise’s online staff when theymake outgoing calls in the after-sales stage or to handlecomplaints, and “cdf Sunrise’s Online Team ‘MysteryShopper’ System”, which applies to the online team when itis monitoring the service quality and information security ofoutside contractors.Each month, we develop a monthly inspection plan to monitorservice quality, and assign a monitoring team to carry outinspections across all service types in specified frequenciesdepending on whether it is peak sales season. The teamsummarises its findings in a monthly report, and includessuggested remedial actions for recurring issues, and sends thereport to the corresponding business departments and the humanresources department. The team requests that the businessdepartments develop a rectification plan, and the team provides thehuman resources department with service quality-related training,where necessary. The completion status of these rectification plansis reflected in the monthly inspection results.
Moreover, the company uses the quality services provided on itsmajor e-commerce platforms to demonstrate its responsibility,warmth, and commitment to customers. The company’s cdfMembership Club fully guarantees the quality of goods by the threedimensions of quality control of incoming goods, logistics services,and after-sales services, to strengthen the quality of goods andservices. It also focuses on the five optimisations of expandedservice channels, standardised services, timely services, automatedservices, and outcome-oriented services, to effectively improveservice quality, maximise consumer satisfaction and serviceefficiency, and increase consumer confidence and comfort in theirconsumptions.
the company has a training system in place to improvethe quality of talent and provide professional servicesupport.the company offers a convenient shopping experienceby upgrades to the membership system, calledOneID, and through optimising the store environment.the company has used digitalisation to standardise itsafter-sales services.
Forpre-sales
Duringsales
Forafter-sales
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Strategy
We also constantly improve our talent management and stafftraining system. We have been developing a system of servicestandards to produce a standardised library and training systemcovering areas such as product information, customs policies,platform-based policies, after-sales standards and customer servicerules and standards. In this way, we aim to minimise deviationsfrom the company’s standards. The company continuously carriesout various training, including leadership training, professionalskills training for front-line staff, and general knowledge training,to ensure that employees at all levels possess professional servicecapabilities. The ultimate goal of the training is to accurately graspcustomers’ core demands.
We have established a closed-loop management process for customer feedback. Under this process, we collect data on user experienceand customer feedback in real time through the customer service system’s evaluation section, after-sales tickets and complaints; prepareand send the “Monthly Customer Service Centre Report” to the corresponding departments each month and request that they makeimprovements or adjustments; and set different response timeframes based on the gravity of the feedback/complaints to ensure the relevantissues are addressed in a timely manner. During the reporting period, as part of cdf Hainan’s centralised overall planning, the companyestablished and improved after-sales service standards across Hainan Island to enhance the customer service experience.To ensure cdf Hainan’s after-sales service standards are consistent and of high-calibre and enhance the customer service experience, thecompany has updated the “After-sales Service Management Policy (for Physical Stores)” and the “After-sales Service Management Policy(for Online Malls)” and optimised the structure of the service team. We also took the following steps to ensure that after-sales services wereefficient and satisfactory:
The company has been improving the disclosure of merchandiseinformation to achieve the orderly classification of goods, thefull disclosure of product information, and fair and transparentprices. Duty-free goods and non-duty-free goods are showcasedseparately on different web portals to avoid misleading consumers.In strict adherence with the provisions of the Interim Measures forthe Return without Reasons of Commodities Purchased Onlinewithin Seven Days, the company provides clear procedures andguidance on the return of goods without the need to specify areason, and clearly identifies and confirms with consumers thosegoods that are not applicable under the policy in accordance withthe law. The company does not arbitrarily expand the scope ofwhich goods are not applicable under the return of goods withoutspecifying a reason.In accordance with the instructions of theadministrative guidance meeting for duty-freeindustries organised by the State Administrationfor Market Supervision (SAMR), the companyheadquarters arranged for its subsidiaries tojointly make a public commitment to society.The platform shopping guidance was revised todelete additional restrictions on the return andreplacement of goods. Only four categories ofgoods have been specified as not applicableunder the policy of return of goods within sevendays without the need to specify a reason:
near-expired goods, damaged goods, goodswithout plastic packaging, and goods with ashort shelf-life. The applicability of the policyto particular goods is clearly specified on theproduct web portal. Consumers are asked toconfirm their understanding of the “ShoppingGuidance” and tick an additional check boxfor their acceptance of goods that cannot bereturned or replaced within seven days withoutspecifying a reason.
4 Putting together a dedicated professional after-sales service team, setting up a
24-hour hotline service and enabling 24-hour access to online customer service toprovide a service guarantee; and improving efficiency in handling customer complaints,with the following goals: “the call centre answer rate should exceed 97%, responsesto online customer service inquiries should be made within 10 seconds, and thesatisfaction rate should exceed 99%”;5 Leveraging the smart customer service platform to make after-sales services traceable
and achieve consistency, transparency, and efficiency in how we handle them;
6 Advancing the digital transformation of customer services to realise the potential ofthe smart customer service system. The system features a chat robot that is available24/7 to answer questions and return calls, and the system enables self-services tobe processed instantly, significantly improving the efficiency of after-sales services. Byharnessing human-computer interaction in this way, we were able to increase the one-time answer rate to over 95%.
1 Engaging with relevant government agencies and establishing a co-working
mechanism with functional departments to implement the “Receive and Handle” rulefor customer complaints received on external channels;
2 Performing a detailed analysis of customer complaints, devising specific solutions for
specific types of complaints and implementing the “Respond with 30 minutes” ruleto improve efficiency in handling customer complaints and enquiries; and setting upa co-working station with relevant organisation to solve customer demands on siteduring major holidays;3 Handling customer complaints within a shorter timeframe and implementing proper
delegation of powers to reach a satisfactory solution with customers quickly andclose more customer complaints; and driving cross-departmental cooperation in theregular analysis and discussion of issues related to products and delivery orders toimprove after-sales management;
Management of impacts, risks and opportunities
Positive impacts:
To respond to customers’ voices, we assign more resources to customer-preferred activities or products, such as by putting popular storesin premier locations and staging promotional activities (in cdf Hainan). We obtain customer feedback, evaluate the feedback and determinehow it relates to different departments, and hold discussions about how to enhance and adjust processes, with a view to improving ourservice system and raising customer satisfaction.
Conducting customer satisfaction surveys and optimising service processes
stores across three channels, with a total of 9,176 questionnaires(user perspective) received; and we received an average scoreof 89.91 for the three areas from “Mystery Shoppers” (specialistperspective), which were used 153 times. In these surveys, wereceived better results from both perspectives than in the mid-yearsurvey.The company’s subordinate stores took measures to effectivelyimprove service efficiency. For example, the cdf Hainan storedesigned and implemented a three-step optimisation work plan inApril 2024. In step 1, the store established a customer feedbackand self-review mechanism, and clarified that customer feedbackshould be sent to the relevant front-line service teams. In addition,the store enhanced oversight over the improvement process,reducing the error rate to 3.84% (from 15.51%) in reviews oftickets on the smart customer service system. In step 2, the storeoptimised the return process and shortened handling time by nearly48 hours. Finally, in step 3, the store monitors service efficiencyand quality and prepares a special daily monitoring report to ensurethat special customer complaints receive responses in real timeand are handled within 24 hours. Meanwhile, the store preparesa mandatory daily report for logistics tickets, issues warnings forfrequently returned orders and follows up on the status of specialtickets to prevent recurring complaints, with the goal of furtherimproving service efficiency and quality.To listen to customers’voices, cdf Hohhot installeda customer suggestionbox and reviewed opinionsreceived from time to time soas to improve services in anall-round manner.
Every year, our company conducts consumer satisfaction surveys.Before we implement phone interviews, we seek customers’permission regarding their willingness to accept the survey throughSMS.In 2024, we conducted two customer satisfaction surveys – onefrom July to August and one from November to December –with a view to improving customer service. The survey, whichwas administered through the company’s physical stores, onlineplatforms and call centres, covered four areas: products, shoppingenvironment, services and membership. We used questionnairesand “Mystery Shoppers” to collect customer suggestions.We received an average score of 93.7 for the three areas in the Julyto August survey, which was conducted for nine stores across threechannels, with a total of 4,309 questionnaires (user perspective)received; and we received an average score of 86.46 for the threeareas from “Mystery Shoppers” (specialist perspective), which wereused 33 times. We summarised our overall findings in a singlereport and detailed the findings for each store in a separate report.We received an average score of 94.25 for the three areas in theNovember to December survey, which was expanded to include 22
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To meet their shopping needs and provide a better experience forcustomers, the company has taken the following steps:
Negative impacts: Our network-wide monitoring includes
real-time monitoring of the “Black Cat” platform and relevantgovernment departments’ open channels to collect informationon a real-time basis. In this way, we aim to stay up to date,operate a closed-loop monitoring system, and issue earlywarnings 24/7 for sensitive issues involving public opinion,and distributes information to all departments and stores ina timely manner for their effective handling. After classifyingand evaluating customer complaints, the company dealswith them by applying corresponding handling strategies.Analysis and judgment are steadily strengthened to taketargeted preventive and control measures and prevent andeliminate adverse impacts on time. The company dynamicallytracks unexpected negative information and post-handlingdevelopments, and continuously monitors relevant information.Customer complaints are promptly summarised, sorted outand reflected on upon their occurrence, dissemination andhandling to safeguard the company’s steady development. Ifwe identify a negative media report or an announcement fromregulators, we establish a special team to communicate withrelevant stakeholders as soon as possible to minimise anynegative impact and prevent any reputational damage to ourgroup’s brand.Emergency management: The “Detailed Rules for HandlingEmergency Events for the Customer Service Centre” hasbeen formulated, which defines the severity of complaints,the response measures required for customer services, andfeedback on the handling of issues. The customer servicecentre holds a specific drill on complaint handling every monthto ensure that front-line customer service representatives canunderstand and implement the requirements.Metrics and TargetsWe always strive to provide our customers with satisfactoryservices. Our centralised call centre achieves a 30% responserate using the IVR system. In 2024, the company’s customersatisfaction rate remained above 96%.
Set up a central call centre system, which provides aunified customer service hotline number (4001-100100),leverages smart technologies to transfer, distributeand process services, uses standardised processesand consistent script, and conducts centralised datacollection and analysis. Currently, the system has beenmade accessible through the membership hotline,the cdf Membership Club, in about 50 cdf stores inGuangzhou and Hangzhou, and cdf Sunrise;
Made duty-free shopping and pick-up easier forcustomers. For example, cdf Meilan introduced “liquorat airport stores”, “cross-store purchasing,” and “remotepurchasing of taxed items”, and cdf Boao introduced“pick-up upon return” in 2024;
Continuously carried out specific services at differentstores. For example, cdf Sun Moon Plaza launched awide range of personalised services, such as optometryservices, gift packaging and makeup customisation, andupgraded its maintenance centre to include leather care,jewellery cleaning, watch demagnetisation, and watchchain adjustment, to enhance the shopping experience.
Established a two-way interaction mechanism withconsumers in Hainan;, by embedded online customerservice access on the “product details” page, the“order” page, and the “service module” page, toimprove access to online customer service and servicerepresentatives for the cdf Membership Club and cdfHainan Mall; and contacted customers through multiplechannels to meet customers’ needs before, during andafter the sales.To mark the “10th anniversary of cdf Sanya International Duty-FreeShopping Complex,” the store upgraded its supporting servicefacilities and established a comprehensive tourist centre. Theseamenities, which have a large capacity, provide a wide rangeof functions and services, including 202 luggage lockers formanual luggage storage services, additional translation machines,umbrellas, child harnesses, baby stools, women’s shawls, andwomen’s supplies, and other services for children and women.
Details regarding customer complaints the company receivedduring the reporting period:
Total complaints received: 76,546Average hours used to handle each complaint:
141.81 hours
As at the end of 2024, complaints handled as a proportion oftotal complaints received during the year: 99.72%
The company provides accessible facilities to cater forspecial needs groups.
Going forward, as our customercomplaint management systemgrows more mature, we will disclosecustomer satisfaction metricsalongside “complaint handling” detailsin this report.
Case study
In July 2024, the company carried out a customer serviceenhancement project. We conducted industry research andinternal interviews, with a focus on the company’s eightrepresentative physical stores, three online platforms and callcentre. To ensure the feasibility of our service system, weconducted 24 one-on-one interviews with the front-line teamsfrom major stores, collected nearly 90 internal service charters,and benchmarked them against service charters from morethan 10 leading companies in the industry at home and abroad.Based on our findings, we updated CDFG’s service system,which now classifies customer services between physical
stores, online platforms and the customer service centre basedon their different natures. Moreover, as part of the servicesystem, we established processes, delegation of power andauthorisation rules, a KPI assessment policy, a central callcentre system, and an organisational structure for customerservices; and defined development goals in the short, mediumand long term. Starting with changing mindsets and concepts,and digital transformation, we aim to develop a standardisedcustomer service management framework comprised of uniformcontrols, standards and systems that operate consistently. Wehave already made significant progress in this regard.
cdf Hangzhou held multiple training sessions to help staff provide high-quality servicesTo upskill its front-line teams and ensure high-quality services, cdf Hangzhou carried out four training sessions on skills and tips toimprove customer services and product displays.
In 2024, the company launched the programme to build a model of “trusted business operations and excellent services,” as part of its effortto implement President Xi Jinping’s guidance on the importance of “attracting consumers with trusted operations and excellent servicesto accelerate the construction of a free trade port with Chinese characteristics”. We also launched a series on this topic on our WeChataccount to communicate what we have achieved through this programme, including our experience and practices in improving managementservice capabilities that can be applied across the company to support our effort to develop into a world-class company.
Enhancing our customer services and improving the customer servicemanagement system
Case study
In 2024, the company organised 182 overseas visiting groupswith 398 person times for business purpose to France, Italy,Japan, South Korea, Cambodia, Singapore, Vietnam, Sri Lanka,Switzerland, the United Kingdom, Hong Kong, Macao and otherplaces. The purposes of these visitings include procurementand ordering, overseas store tours, participation in industryconferences, brand learning and exchanges, and developmentof important projects, greatly promoted the high qualitydevelopment of outward looing economy.
In 2024, the company organised182 overseas visiting groups with 398person times for business purpose
Organising groups visiting abroad, to promote the high quality developmentof outward looing economyCase study
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Case study
Case study
Accelerating the effort to develop Sanya International Duty-Free Shopping Complex into anexample of “trusted business operations and excellent services”To develop a model of “trusted business operations andexcellent services”, Sanya International Duty-Free ShoppingComplex conducted multiple internal discussions and employeesurveys and benchmarked against peers. Through these efforts,the complex designed a system of service standards, comprisedof one value proposition, eight supporting pillars, and 98policies and standards. Under the service value proposition of“comfortable global shopping with a focus on you”, the complexaims to provide customers with sincere & patient, warm &meticulous, and professional & efficient services and establish
emotional connections with customers. The eight supportingpillars include: trusted operations as the cornerstone; an elegantand comfortable environment, sincere and considerate services,and a convenient and efficient experience as the three pillarsof customer services; and robust service standards, effectivetraining, sound service quality supervision, and comprehensivetechnical support as the four employees-related pillars.Meanwhile, the 98 policies and standards govern operationalprocesses before, during and after sales as well as supportingprocesses related to training, supervision and digitalisation.
▼
Staff training on “trusted business operations and excellent services”▼The launch ceremony for the programme to build a model of “trustedbusiness operations and excellent services”
The Malt & More Whisky Museum opened at the cdf Haikou International Duty-Free Shopping CentreIn November 2024, the Malt & More Whisky Museum opened on the 4th floor of the cdf Haikou International Duty-Free ShoppingCentre, to tell the story of black and gold whisky made from barley in Glencairn glasses.
▼
Inside the Malt & More Whisky museum
▍Product Safety and QualityGovernanceThe company has formulated a “Service Quality Work Plan”, andhas been providing employees with training on integrity cultureand related business skills. Meanwhile, the company’s “ServiceQuality Work Plan” aims to improve standards for business andservice quality, promote quality goods and boutique strategies, anduphold the concept of “trusted business operations and excellentservices”, with a view to comprehensively improving customerservice standards and ensuring the provision of quality goods andservices to consumers.Strategy, and management of impacts, risks andopportunitiesProduct Quality GuaranteeThe company strictly enforces procurement management measuresand continuously monitors supplier selection and product qualityassurance. In 2023, the company issued the “Regulations onSafety Management, Quality-Risk Early Warnings, Inspection andTesting for Imported Commodities (Trial)”, which standardises andinstitutionalises quality and safety management for our importedcommodities. We have strengthened safety and quality controlfor imported commodities to ensure that the company meets itsresponsibilities and protects consumers’ rights and interests.The company formulated the “Procurement ManagementMeasures” and strictly enforced the procurement approval process,including the methods and procedures for supplier selection,the methods used to assess suppliers, and supplier bidding andprocurement behaviour. For the supplier sourcing process, wehave strengthened the supervision and review of suppliers to guardthe “entrance gate”. The company has also established a list ofqualified suppliers and incorporated compliance performancerequirements into the evaluation process for suppliers. Wedynamically adjust the qualified suppliers list by promptly removingany suppliers involved in irregularities.The company regularly communicates with suppliers on how tofurther improve product quality. The company requires suppliersto establish a mechanism for information exchange, so that if the
product recall process is triggered due to product quality problems,the company can take timely actions to protect the rights andinterests of customers. The company attaches importance to thehandling of product quality problems, and actively works withsuppliers to ensure product quality standards are met, so that ourusers can shop with confidence.In terms of food and beverage safety, the company has made everyeffort to establish and improve its comprehensive managementsystems, including those related to food management rules,supervision and monitoring, traceability cooperation, inspection,and testing, to ensure the food safety of our pre-packagedgoods. We adhere to standardised online and offline managementstandards with respect to food safety and exercise whole-processcontrol in this area. In accordance with the Law on Product Quality,the requirements of the commodity quality standards issued by theSAMR and the National Standardisation Administration, and otherlaws and regulations, the company has re-signed agreements withdomestic liquor producers and suppliers, and the new agreementsinclude the “Liquor Quality Assurance Agreement”, which helpsthe company ensure the quality of its products, protect the rightsand interests of consumers. For goods with special storagerequirements, such as chocolate that needs to be stored below 20degrees, our stores strictly enforce the storage and transportationstandards provided by suppliers and maintain daily temperatureand humidity measurement records. We identify productsthat contain oil chemicals according to the suppliers’ shippinginformation in the early stage, and check these items properly whenmaking declarations.In respect of the management of goods close to expiration, thecompany disposes of them by means of return shipments, returnsto suppliers for exchange, selling them at a discount, offeringspecial promotions, and destroying them under the supervisionof customs in accordance with the product categories and actualcircumstances. The company strives to reduce goods close toexpiration by forecasting market demand, flexibly deploying goodsand improving procurement efficiency, with the goal of enhancingresource use efficiency and operating effectiveness.
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Metrics and Targets
During 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.In 2024, we actively introduced ESG-based products. As at the endof 2024, we had introduced 32 products that had been certifiedenvironmentally or socially by a third party, and we generatedincome of CNY22.24 million from those products in 2024.
▍Responsible Marketing
We attach great importance to the management of advertisementsand new media marketing. In accordance with the AdvertisingLaw and other laws and regulations, the company hasformulated relevant documents such as the “Regulations on theManagement of Press Release” and the “Marketing ActivitiesManagement Measures” to strengthen management and controlover marketing activities. The company’s affiliated companiesalso formulate detailed management regulations following theirrespective business conditions, including the “Regulations on theManagement of Promotional Videos and Brochures”, “Regulationson Advertising and Publicity Management”, “Regulations on theManagement of Marketing Activities” and “Regulations on theManagement of External Publicity Information”, etc. to regulate allaspects of marketing management.To explore sustainable development strategies for its brands,the company has accelerated its transition towards digitalmanagement with the aim of becoming a global leader in thisarea. The company comprehensively improved its data capabilitiesand 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;
▼Notice on CDFI passing theannual quality managementsystem review
In December 2024, CDFI completed itsannual audit of the quality managementsystem (ISO9001) to provideassurance regarding the adequacy andappropriateness of its internal controlsand refined management.
and optimise tourism retail operations. Through this analysis work,the company was able to effectively mine the commercial valueof its membership data and devise plans for how to use this datamore effectively in the future. In addition, the company carries outa refined approach to the operation of online malls, self-mediaplatforms and fan communities. The company collects andanalyses user profiles and behaviours, targets specific groups andprovides them with a more personalised interactive experience. Inthis way, we use personalised product recommendations, searchengines and marketing to enhance user stickiness, satisfaction, andloyalty, creating a new retail model that incorporates personalisedmarketing.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 narrowthe distance between brands and consumers using rich brandcontent and diversified forms of expression.In 2024, the company offered products from 1,524 brands withmore than 363,000 SKUs.
we had introduced32 products that had been certifiedenvironmentally or socially by a third party, and we generatedincome of CNY22.24 million from those products in 2024.
The company aims to establish a green supply chain to align its operations with the nation’s goal to construct an ecological civilisation.Based on standardisation and driven by green, intelligent, and innovation, the company has continuously been optimising its supply chainmanagement.▍Supply Chain Security
Robust, Green and Intelligent Supply Chain
Governance
The company has formulated the “Warehouse Goods Anti-Theft and Safety Management Regulations”, the “WarehouseFire Prevention and Emergency Response Plan”, the “VehicleSafety Transportation Regulations and Training Protocols”, the“Special Equipment Safe Operations Management System”,the “Typhoon Prevention and Emergency Response Plan”,the “Hainan Provincial Duty-Free Goods Co., Ltd. InternalAudit Regulations for Import-Export Activities”, and the“Hainan Provincial Duty-Free Goods Co., Ltd. Import-ExportBusiness Partner Management System”. In 2024, we updatedthe “Procurement Management Measures”, adding moredetailed provisions on supplier selection methods, evaluationprocedures, performance assessment criteria, and tenderprocurement practices, while strictly enforcing procurementapproval processes.The company has formulated more detailed regulationson the methods and procedures for supplier selection, themethods used to assess suppliers, and supplier biddingand procurement behaviour. During the year, we formulatedthe “Supplier Management System” to establish a unifiedsupplier database and enhance the management of supplierqualification reviews, selection, performance evaluations,incentives, penalties, and supervision. Suppliers are required todemonstrate a sound commercial reputation, tax compliancerecords, sales performance, and product quality. They mustpossess the necessary professional equipment, technicalcapabilities, and ongoing delivery capacity to fulfil contracts;and they must have quality control and assurance measuresand plans, customer service support oriented to client needs,and no history of legal violations in business operations. Weconduct periodic performance evaluations and implementtiered management of suppliers based on our evaluation ofcompliance and service quality.In the process of selecting and approving suppliers, weconduct research and studies on the supplier market, steadilystrengthen supplier development, and require that domesticsuppliers be certified through a state-certified supervisoryand management information platform. The company reviewssuppliers’ certification information and business information,runs checks to determine whether suppliers have any record oflegal or regulatory violations, and strictly implements supplieraudit and selection processes.
StrategySupplier admissionFor public procurement projects, such as open bidding, opencompetitive negotiations, and open inquiries, the winning bidderor the bid awardee can be directly included in the company’ssupplier database. In addition to public procurement, interestedsuppliers should apply to relevant divisions for admissionaccording to the procurement relationship and the managementprocedures.
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:
Grade A (excellent suppliers)
When a division issues a procurement invitation, Grade A supplierswithin the division should be given priority to participate in theprocurement project within its scope of business under the samecommercial terms. Grade A suppliers shall be downgraded toGrade B if they have not had procurement transactions with thedivision for one year since the date of the last completed contract.
Grade B (good suppliers)
Suppliers with which there is regular business cooperation.Grade C (suppliers subject to rectification)
There are deficiencies that should be focused on and subjectto rectification. Generally, procurement transactions shall besuspended during the rectification period. For an individual supplierwith which a procurement transaction cannot be suspended, thepurchaser shall negotiate with the main person responsible, informthe supplier to improve its service level and supply quality, and tryto develop or cultivate alternative suppliers.
Grade D (suppliers should be phased out)
Suppliers with which procurement transactions should besuspended for three years.In according with the requirements of the SASAC, the companyimplements a supplier evaluation model that combines dynamicevaluation and annual qualification inspection, and under whichthe dynamic evaluation results serve as an important basis forsupplier grading and selection.
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Impact, Risk, and Opportunity Management
Through effective risk and internal control management, the company maintains its strong market reputation, customer satisfaction, andindustry-leading position. By continuously optimising supply chain processes, we enhance efficiency and effectiveness, ensuring thedevelopment of stable, secure, and sustainable supply chains.
? Post-risk assessment and contingency measures: Wedevelop emergency response plans for natural disasters,accidents, social safety incidents, etc., detailing protocols forincident reporting, on-site handling, and personnel relocation.The company also conducts quarterly training and drills onfire 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.? We establish systems to safeguard our operational premises,goods, transport vehicles, business partners, and personnel.Regular warehouse safety self-inspections and inventorychecks are performed to identify and rectify potential hazardsand uphold the safety-first principle. At our warehouses,we have realised full surveillance coverage and put in placefacial and fingerprint recognition tools for access, as well asintelligent lock systems for transport vehicles.? The company implements internal audit systems to supervise
and inspect compliance in import/export activities.? We optimise inventory management plans by monitoring
market fluctuations and sales data to determine rational
stock levels; and we use inventory monitoring and inventory
alerts to promptly address overstocking or stockouts, and
take corresponding measures to make timely adjustments.
By optimising inventory management, we can reduce
inventory costs, improve the efficiency of capital use, and
reduce supply chain risks caused by inventory problems.? The company regularly communicates with suppliers on how
to further improve product quality. The company requires
suppliers to establish a mechanism for information exchange,
so that if the product recall process is triggered due to
product quality problems, the company can take timely
actions to protect the rights and interests of customers. The
company attaches importance to the handling of product
quality problems, and actively works with suppliers to ensure
product quality standards are met, so that our users can
shop with confidence.
1. Identification
The company comprehensively reviews supply chain operations,collects and analyses data across all stages, and conducts regularrisk identification and assessment processes. We have establishedrisk information channels to maintain close communication withsuppliers, logistics partners, and industry associations, ensuringtimely updates on industry risks and developments.
2. Assessment and prioritisation
Supplier evaluation and management plan: We conductthorough risk assessments of existing suppliers, covering theirproduction capacity, quality control, and delivery capabilities.Historical data and experience are used to quantify theprobability of identified risks escalating, potential losses, andsafety hazards, with a view to clarifying the severity and urgencyof risks. Based on these assessments, we formulate supplierclassification strategies and engage in heightened monitoringand management for high-risk suppliers.Simultaneously, we actively seek new high-quality suppliers toreduce reliance on single sources and diversify supply chain risks.
3. Monitoring
We continuously collect supply chain logs, including informationregarding critical incident reports, emergencies, unresolvedissues, and future plans. Key risk indicators are monitored inreal-time through supply chain management systems, whichare aligned with internal control early-warning mechanisms; andregular reports on supply chain risk monitoring are provided tomanagement to support decision-making.
4. Management
? Operational procedures are streamlined and standardised
to proactively mitigate risks.
Metrics and Targets
Data regarding the company’s suppliers in 2024 is as follows:
MetricsTier 2 metricsUnit2024Total number of brand partners/Number631Number of brand partners bygeographical region
Chinese MainlandNumber202Hong Kong SAR, Macau SAR and Taiwan regionNumber140
OverseasNumber289Total number of non-brand suppliers/Number3,392Number of non-brand suppliers bygeographical region
Chinese MainlandNumber3,326Hong Kong SAR, Macau SAR and Taiwan regionNumber0
OverseasNumber66Classification of non-brand suppliersTotal number of Level I suppliersNumber219
▍Green Supply ChainIntelligent Supply Chain
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.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 efficiency 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 canidentify optimal shipping routes and prioritise deliveries to reducecarbon emissions. We have implemented an advanced logisticstransportation management system that is able to intelligentlyanalyse optimal loading plans based on real-time order data. Inthis way, the company ensures each logistics vehicle achievesmaximum load efficiency, minimising empty runs and partial loadsand reducing fuel consumption and carbon emissions. Additionally,we conduct regular training for drivers and dispatchers to enhancetheir understanding and skills in respect of efficient transportationand ensure that resource utilisation is maximised for each trip.
▼ AGV robots storage
▼ Clothing hanging chains
▼ Four-way shuttles, and AGV robots storageThe company gives priority to partners who focus on
environmental protection and sustainable developmentto ensure that all players involved in the supply chain arecommitted to emissions reduction, energy conservation andintelligent optimisation.As of the end of the reporting period, the company’s warehousingcentres covered a total area of 586,000 square metres.
warehouse surpass the previous height limits imposed by manualorder picking. As a result, the warehouse has been able to expandthe number of shelf layers from 4 to 7, which has doubled its cargobox storage capacity from 4,500 to 9,000. In addition, the box-typerobot operates in a paperless manner by skipping order printing.The company has promoted robotic sorting in the SanyaE-Commerce warehouse, Sunrise Shanghai e-Commercewarehouse and other sites. The intelligent console intelligentlymonitors the entire process, which greatly improves pickingaccuracy and sorting efficiency. In 2024, the company installed anautomated sorting system at the Sunrise China Winter OlympicsWarehouse, enabling intelligent handling, picking, and sorting. Thissignificantly improved operational efficiency and storage density perunit area, and reduced land use and energy consumption.
Green WarehousingThe 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 reduceemissions.
The company adopts a scientific and reasonable warehouse
layout to integrate warehouses and ensure optimal loading
capacity and vehicle utilisation. In the process of warehouse
operations, goods are stored and handled taking into account
their characteristics and shipping requirements to minimise
inventory losses.The company gives priority to the use of energy-saving,
environmentally-friendly and recyclable logistics equipment and
facilities, such as LED lighting and clean energy equipment.The company has fully applied artificial intelligence (AI) and
remote control technologies to improve overall warehousing
and logistics efficiency, with a view to reducing costs,
increasing efficiency and promoting green development. A
warehouse management system is installed and adopted in
each centre to standardise warehouse operations in a more
scientific and reasonable way, to improve the efficiency of
warehouse management, and to reduce energy waste. We
have deployed the Internet of Things (IoT) and management
control systems, such as automated guided vehicle (AGV)
robots and autonomous case-handling robots (ACR), and
automatic equipment, such as clothing hanging chains
and four-way shuttles, for integrated storage, handling and
warehousing in logistics centres in Shanghai, Shenzhen and
Hainan. These systems and equipment enable intelligent
handling, picking and sorting and optimise processes for
inbound warehousing, inventory management, replenishment
sorting and shipping. Compared with traditional warehousing,
the operational efficiency and storage capacity per unit are
significantly improved, substantially reducing land use and
energy consumption.
The box-type robot can pinpoint and transport goods with specificSKUs, enabling higher sorting precision. The official launch of thebox-type robot has significantly improved the overall operatingcapacity of the Qianhai e-commerce warehouse and doubledits order picking capacity, resulting in an error rate of less than1/10,000. Moreover, the box-type robot has also helped the
Intelligent Supply Chain
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Supplier ESG Management
The company signs Sustainable Development Agreements withsuppliers to clarify responsibilities in respect of environmentalprotection and social accountability. During supplier qualificationassessments, we evaluate factors including product quality,pricing, delivery timelines, environmental compliance, andsocial responsibility. In addition, we regularly collect dataregarding suppliers’ sustainability and ESG performance, verifytheir environmental certification credentials (e.g. ISO 14001),and conduct annual risk assessments related to suppliers’environmental and social factors.Meanwhile, the company urges suppliers to use moreenvironmentally friendly products and services. For example,suppliers are asked to use recyclable materials, no-glue cartonsand other environmentally friendly packaging materials. Theenvironmental requirements and audits of suppliers are alsotightened.We recently updated the company’s procurement policies andguidelines, and defined environmental requirements in detail. For
example, we included goals for reducing packaging waste to saveresources and promote sustainable development. In 2024, weconducted in-depth communication with and audits of suppliersto ensure they meet the latest environmental standards andrequirements. For example, we give priority to suppliers with ISO14001 certification for environmental management systems. Interms of supervision, we have strengthened our mechanism forevaluating and monitoring suppliers’ environmental performance.For procurement projects exceeding CNY5 million, during theprequalification stage, bids are evaluated based on whethersuppliers have obtained the ISO 14001 certification. Shortlistedsuppliers must demonstrate robust environmental protectioncapabilities and submit Safety and Civilised Construction Plans sowe can ensure they will adhere to local environmental requirementsduring operations.In terms of oversight, we conduct regular reviews to monitorsuppliers’ environmental performance, with a focus on theirimplementation of environmental policies and measures.Meanwhile, the company fosters collaborative partnerships withsuppliers to advance shared sustainability goals.
On the global stage, the company is using international eventssuch as the China International Consumer Products Expo (CICPE),the Trinity Forum, and the Boao Forum for Asia (BFA) to tell a newstory about the tourism retail industry in China. We are calling forenhanced cooperation among all stakeholders to deliver a brightfuture for the industry.
Harnessing the 4th CICPE, China Duty Free Group launcheddiverse activities in Hainan to stimulate consumptionFrom 13 to 18 April 2024, the fourth China International ConsumerProducts Expo was held in Hainan province under the theme “ShareOpen Opportunities, Co-create a Better Life”, featuring over 4,000brands from 71 countries and regions. This marked the fourth yearin which the company has participated in the expo. The companyestablished a “CDF New Consumption Scenarios” exhibitionzone at the Haikou International Duty-Free Shopping Complex toshowcase innovative consumer experiences. Concurrently, thecompany’s Hainan stores actively launched promotional activities,
Setting the Industry Benchmark for High-quality Development
▼Opening up new consumption
scenarios and driving the “CICPE+ Duty-Free” consumption trend
▼ Fashion shows
▼The expo and consumptionpromotion activities created avibrant atmosphere
▼Promotional activities in cdf storesin Hainan
leveraging the expo’s spill-over effects to expand and support thetourism retail market.At the “CICPE Sub-Venue”, which was held for the first time in2024, the Haikou International Duty-Free Shopping Complexlaunched the themed campaign “Embrace New Consumption,Enjoy Duty-Free Shopping”. During the expo, it hosted pop-upexhibitions such as the “Latest Domestic Consumer Products”exhibition, a jade culture exhibition (“Jade Path”), Li ethnic culturalperformances (“Li Rhythms”), and an immersive interactive game(“Secret Forest”). Additionally, the complex set up two majorrunways for the “4th CICPE Fashion Week”, organising nine fashionshows (which included brands such as Mini Mode and StolenStores) and a fashion dialogue forum.This array of exhibitions and activities attracted significant attentionfrom expo attendees and tourists. During the event, HaikouInternational Duty-Free Shopping Complex received nearly 100,000visitors, representing a 35% increase compared to pre-expo foottraffic.
▍Following the Trends of the Time to Promote Industry Development
? Providing quality services during the Boao Forum for Asia
? Attending the Trinity Forum 2024, marking our second year of attendance
▼Sun Fang, Assistant General Manager of China Duty Free Group, delivereda keynote speech on the opening day of the forum
On 5 November 2024, the Trinity Forum – which was jointlyorganised by the Moodie Davitt China Travel Retail Report (theauthoritative media report in the global tourism retail industry),ACI World and ACI Asia-Pacific & Middle East – was heldin Ho Chi Minh City, Vietnam. The company attended theTrinity Forum 2024 as a Platinum Partner of the event. ZhaoFeng, Deputy General Manager of China Duty Free Group,participated in the forum, while Sun Fang, Assistant GeneralManager, delivered a keynote speech on the opening day.She shared insights on the recovery of China’s tourism andconsumer markets, the rise of domestic “Guochao” (China-chic)brands, and the company’s product selection and channelstrategies.
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The company participated in the TFWA Asia Pacific conference
? Attending the 2024 TFWA Asia Pacific Conference to explore opportunities in tourism retail
From 12 to 16 May 2024, the Tax Free World Association(TFWA) Asia Pacific Exhibition & Conference was held inSingapore. As a Diamond Sponsor, the company engaged infruitful exchanges with industry partners at the event. On 14May, during the “China Watch” seminar themed “Opportunitiesand Development”, the company’s personnel discussed trendsin the duty-free and tourism retail sectors.
The 2024 Boao Forum for Asia (BFA) Annual Conference was held in Boao, Hainan, from 26 to 29 March 2024. The company’sQionghai Boao Duty-Free Shop meticulously planned and implemented comprehensive service solutions that aligned with internationalconference standards to fully meet the diverse needs of attendees. The store successfully completed its mission of offering high-qualityservice support, contributing to the development of the Hainan Free Trade Port through concrete actions.
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▼Preview of the cdf Macau Watch & Jewellery Festival
? Participating in the third China (Macao) High-Quality
Consumption ExhibitionFrom 25 to 29 September 2024, the cdf Grand Lisboa PalaceShop, operated by CDFI, joined the third China (Macao) High-Quality Consumption Exhibition & Hengqin Global Bay AreasForum. At the event, we offered a preview of the cdf MacauWatch & Jewellery Festival under the theme “Journey ThroughTime”, showcasing exquisite craftsmanship from multiple watchbrands and delivering interactive experiences that combinedvisual, tactile, augmented reality (AR), and artificial intelligence(AI) elements.
▼
Grand opening of the 2024 Asian High Fashion Art Exhibition
? The 2024 Asian High Fashion Art Exhibition held its
grand opening at the cdf Sanya International Duty-Free Shopping Complex
On 15 October 2024, the Asian High Fashion Art Exhibitionofficially commenced at the You Art Centre (有时艺术中心) within the cdf Sanya International Duty-Free ShoppingComplex. The exhibition highlighted the unique charm of Asia’sfashion culture and served as a catalyst for advancing Sanya’sfashion consumption industry.
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First inaugural general assembly of the Association
? Supporting the establishment of the Hainan Offshore Duty-Free Association to drive the high-quality
development of the industry
In full alignment with President Xi Jinping’s series of important directives on the construction of the Hainan Free Trade Port and theinspiring speech he delivered during his inspection of the Sanya International Duty-Free Shopping Complex, the Hainan Offshore Duty-Free Association (“the Association”) was officially approved on 5 August 2024. This milestone heralds a new phase for Hainan’s offshoreduty-free sector and is expected to foster coordinated development among market entities, encourage the development of industryecosystems, and lead to the creation of a world-leading industrial cluster.The Association, which operates under the supervision of theDepartment of Commerce of Hainan Province, was jointlyinitiated by the Department of Commerce and eight entities:
China Duty Free Group (Hainan) Operation Headquarters Co.,Ltd.; China Duty Free (Haikou) International Duty-Free City Co.,Ltd.; Hainan Provincial Duty Free Co., Ltd.; Hainan TourismInvestment Duty-Free Co., Ltd. (海南旅投免税品有限公司);Global Consumer Goods (Hainan) Trading Co., Ltd. (全球消费精品(海南)贸易有限公司); CNSC (Sanya) Duty-Free Co.,Ltd. (中服(三亚)免税品有限公司); Shenzhen Duty-Free Group(Hainan) Operations Headquarters Co., Ltd. (深免集团(海南)运营总部有限公司); and Hainan Outlets Tourism DevelopmentCo., Ltd. The Association aims to foster a market environmentthat supports governmental coordination, competition andcollaboration among market players, collective promotionalefforts, and bargaining power in respect of global procurement.
▍Diligent industrial planning bears fruitful resultsAs a leader in duty-free business, the company has been building its presence in commercial complexes and cruises with a focus on duty-free business for many years, and it has maintained its leadership in the travel retail industry.The Dalian Downtown Store reopens, delivering new momentum in duty-free consumption
▼
Grand opening of the Dalian Downtown Store
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cdf Adora Magic City store▼
Interior of Adora Magic City
The cdf Adora Magic City store opened on the first made-in-China cruise ship
On 1 January 2024, the company opened a store on Adora Magic City, the first made-in-China cruise ship. Adora Magic City is 323.6metres long with 15 decks and can accommodate 5,246 guests. The cdf Adora Magic City store has an area of nearly 1,200 squaremetres and a collection of more than 200 well-known Chinese and foreign brands across a range of categories including cosmetics,wine, luxury jewellery and watches.
In August 2024, the Ministry of Finance, the Ministry ofCommerce, the Ministry of Culture and Tourism, theGeneral Administration of Customs, and the State TaxationAdministration issued a joint notice to refine downtown duty-free store policies and standardise management practices.On 31 December 2024, the company’s Dalian DowntownStore reopened, marking the first downtown duty-freestore launched under the new policy framework. Dalian – apivotal economic, trade, port, industrial, and tourism hub innortheastern China and a gateway for the internationalisationof the region – hosts the store on the ground floor of theNova Xinghai Centre (新星?星海中心), which is only twokilometres from iconic Xinghai Square. The store offers anarray of products spanning beauty and skincare, perfumesand fragrances, watches and jewellery, sunglasses, alcoholicbeverages, and gourmet foods, catering to varied consumerdemands. Leveraging policy advantages, the store also sellsdomestic “Guochao” (China-chic) brands, giving them equalexposure alongside international labels.
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▼
cdf’s duty-free store on the Astro Ocean cruise ship
▼The Astro Ocean cruise ship thathouses cdf’s duty-free store
The cdf store on Astro Ocean Piano Land opened for businessOn 25 July 2024, Piano Land, Astro Ocean’s first cruise ship, set sail from its home port in Shanghai. cdf’s duty-free store openedon the Piano Land cruise ship on the same day, offering a wide range of options and convenient shopping services for passengers.With a gross tonnage of 70,000, Piano Land is 261 metres long and 32 metres wide and has a capacity of 1,800. The duty-free storeon the cruise ship is located on the 6th and 7th floors, covering an area of 650 square metres. It features a comprehensive collectionof world-class luxury brands covering a wide range of categories including wine, leather goods, bags, accessories, sunglasses,cosmetics, perfume and food.
The first Wuliangye franchise store under the travel retail model opened in Sanya International Duty-Free
Shopping Complex
▼The first Wuliangye store under the travel retail model opened in SanyaInternational Duty-Free Shopping Complex
Although sales of domestic liquor products by duty-freestores are restricted under offshore duty-free policies, CTGDUTY-FREE has adopted a proactive approach and startedselling domestic liquor products in the Hainan travel retailmarket under an innovative duty-paid business model. On19 September 2024, the first Wuliangye store under thetravel retail model opened in Sanya International Duty-FreeShopping Complex, marking a new chapter in the partnershipbetween the two groups.
▍Telling China’s Story: CDF Expands GloballyThe company actively explores overseas markets in an effort to align with the long-term growth of international tourism. Building on itsestablished presence in Asia Pacific, in 2024, the company entered Japan, Singapore, and Sri Lanka and signed a strategic memorandum ofunderstanding (MOU) with Vietnam’s Imex Pan Pacific Group (IPP Group), marking significant milestones in the company’s global expansion.
Cambodia
▼Representatives from the tourism industry visiting the cdf Angkor Downtown Duty-Free Store▼The Siem Reap Tourism Development Forum
▼ CDF’s “Japan Duty Free GINZA” store in Tokyo’s Ginza district
At the end of 2024, the company had opened three downtown duty-free stores in Phnom Penh, Siem Reap and Sihanoukville, alongwith one airport duty-free store at Siem Reap-Angkor International Airport.During the 2024 Cambodia-China People-to-People Exchange Year, in order to deepen cultural, tourism, and service exchanges andcooperation between China and Cambodia, Deputy Governor of Siem Reap NGOUV SENGKAK and 22 tourism representatives visitedthe cdf Angkor Downtown Duty-Free Store and held the “Siem Reap Tourism Development Forum” to discuss collaboration in regionaltourism.
Japan
In 2024, the company actively explored the demand inoverseas markets for Guochao gold jewellery. As part of thiseffort, we opened “Japan Duty Free GINZA” – an airport-styledowntown store in Tokyo’s Ginza district – which features adedicated counter for Chow Tai Fook Jewellery, a renownedChinese luxury brand. Travellers and residents can placeduty-free orders at the store and then collect their goods atthe Haneda or Narita airport upon departure.
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▼
The Singapore Changi Airport store jointly operated by cdf and MCM
▼cdf Sri Lanka Duty-Free Store
▼cdf and Vietnam’s IPP Group signed a MOU and formally established astrategic partnership
On 30 October 2024, the company collaborated with theGerman high-end brand Modern Creation München (MCM)to launch a luxury store in Terminal 3 of the airport. This is thecompany’s second luxury store at the airport, reinforcing itscommitment to Singapore’s tourism retail market.
Vietnam
Singapore
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The Qeelin Boutique at Singapore Changi Airport
The Asia Pacific region is the key market for cdf’s expansion, and Singapore Changi Airport is also one of the most important marketsfor tourism retail. On 9 February 2024, the company partnered with Qeelin – a luxury jewellery brand under Kering Group – to open aboutique at Singapore Changi Airport.
Sri Lanka
On 6 November 2024, the company and Vietnam’s IPPGroup signed a MOU and formally established a strategicpartnership, with the aim of exploring opportunities in tourismand travel retail while fostering economic collaborationbetween China and Vietnam.
On 26 September 2024, the company officially opened its firstduty-free shop in Sri Lanka, cdf Sri Lanka Duty-Free Store,in the “The Mall” shopping centre in Port City Colombo. Thestore offers a diverse range of high-end products, coveringmore than 400 internationally famous brands, includingfashion accessories, renowned watches and jewellery,perfumes, famous wines, specialty food from around theworld and souvenirs. As the company’s first venture in SouthAsia, the store fills a gap in the local duty-free market andintroduces a premium shopping experience to the region.
“Guochao” (China-chic) brands going global
▼The “Guochao Summer Play” displayat the cdf Haikou International Duty-Free Shopping Complex
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The Guochao Cosmetics Hall atthe Haikou International Duty-FreeShopping Complex
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The Guochao × Sports catwalkshow
To implement the national strategy of vigorously promotingthe overseas expansion of Guochao products and fulfilling itsresponsibility as a central state-owned enterprise in advancingglobalisation, the company established the Guochao BrandOverseas Expansion Project Team in May 2024. Under thisinitiative, we aim to fully promote trendy domestic goodsaround the world and enhance the global influence of the“Made in China” brand. For the Guochao project, the companysigned a strategic cooperation agreement with the JinjiangMunicipal People’s Government and successfully organisedthe “Government-Enterprise Collaboration: Jointly ChartingDevelopment” special promotional event. Additionally, the “RisingTide Grand Event: Setting Sail for Global Markets” series forGuochao sports brands debuted at the Haikou InternationalDuty-Free Shopping Complex, generating total sales in excessof CNY100 million. With these efforts, we comprehensivelydeepened collaboration with Chinese sports enterprises, makingsignificant progress in the internationalisation of Chinese brands.Since establishing the Guochao Brand Overseas ExpansionProject in 2024, the company has made endeavours acrossmultiple fronts – including introducing brands, piloting businessmodels, engaging in brand collaborations on a trial basis,developing a Guochao zone, promoting 3C electronicsexports, expanding offerings of Chinese-style tea beverages,and supporting new energy vehicle initiatives – and achievedsubstantial results.Introducing brands. The project team has secured an intentionto cooperate with over 80 Guochao brands spanning apparel,sunglasses, electronics, fragrances, and cosmetics. Notablebrands such as KALME, Chamelo, iFLYTEK, Rellet, and Dr. Alvahave formally signed contracts with the company, demonstratingthe project’s strong brand appeal.Piloting business models. The team has actively exploredflexible cooperation frameworks, including in respect of trade,consignment, joint ventures, distribution, and self-operated
models, to accommodate diverse brand and market needs. Forinstance, we secured exclusive agency agreements in Thailandwith iFLYTEK and Chamelo, alongside a general agencyagreement for Asia Pacific tourism retail channels with Chamelo.In addition, we have opened a joint venture flagship store with52TOYS in Hong Kong, highlighting the project’s innovative andadaptable approach.Brand collaborations. We have made significant progress bypartnering with leading brands. In respect of these partnerships,iFLYTEK’s initial order is expected to reach 2,000 units, whileChamelo will operate on a pilot basis at the Sanya Haitang Baystore. 52TOYS is planning a pop-up store in the GLP GrandHall, and Bebebus will open its first outlet at New Town Plaza.These developments underscore the project’s effectiveness indriving brand collaboration.Developing a Guochao zone. A dedicated Guochao zone waslaunched at the Macau cdf Grand Lisboa Palace Shop, featuringover 10 cosmetics brands including Rellet, Dr. Alva, Comfy,and CHANDO. As part of this effort, we also collaborated witheBest, the largest Chinese e-commerce platform in Australia, toadvance the overseas expansion of domestic cosmetics brands,reflecting the project’s impact on regional development.Promoting 3C electronics exports. Discussions are underwaywith Thailand’s One Bangkok and Singapore’s Frasersretailers to establish 3C electronics pop-up stores, with a viewto facilitating the global outreach of brands like Bear HomeAppliances (小熊家电) and Usmile. These initiatives mark theproactive strides the project is making in the 3C sector.Chinese-style tea beverage initiatives. By engaging withleading brands such as CHAGEE and Molly Tea, we areexploring franchising and joint venture models, with plansto introduce these brands in overseas travel retail channels,underscoring the project’s commitment to promoting Chinesetea culture globally.
New energy vehicles. The project teamis exploring implementation pathwaysfor new energy vehicle agency anddistribution operations in Hong Kong, witha view to broadening product boundariesand pursuing innovative approaches andbreakthroughs in the new energy vehiclesector.
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▍Environmental Protection
The company leverages its strengths to actively promote green environmental practices, prioritising the concept that “development andenvironmental protection should go hand in hand” and exemplifying corporate social responsibility.Aligned with its strategic focus on Hainan, the company’s Sanya Downtown Store launched the “Clean the Blue Ocean, Guard the GreenForest ” volunteer initiative. For this campaign, which is tailored to the duty-free industry, we are collaborating with local organisations toconduct over 15 tree-planting, beach-cleaning, and ecological educational activities. These efforts received wide coverage from mediaoutlets such as Sanya Daily and People’s Daily. In 2024, the Sanya Downtown Store recruited 650 registered volunteers, investedapproximately CNY180,000, and organised 30+ eco-protection, traffic management, and community service initiatives, with over 2,500participants volunteering 1,000+ hours of service.
Engaging in Charity Initiatives to Act as a Responsible Corporate
▼On 22 April 2024, the company organised the “Cherish the Earth, ClearWaters” beach-cleaning campaign at Haitang Square in Haitang district
▼On 8 June 2024, a group of pioneers from the Sanya Downtown Store
transformed into “Guardians of the Blue Planet”, conducting marineconservation activities at Wuzhizhou Island Tourist Area and SanyaHaichang Fantasy Town
▼On 5 December 2024 (International Volunteer Day), the Sanya Downtown
Store organised 28 volunteers for the “Green Mountains, Clear Waters”ecological research activity at Nanta Reservoir in Yucai Ecological Zone,Sanya.
▼On 12 March 2024, we held the launch ceremony for the “Clean the BlueOcean, Guard the Green Forest” volunteer service brand and the “Journeyof Light: Dancing with the Forest” tree-planting activity at the Qingmei PortMangrove Reserve in Yalong Bay, Sanya
▼On 28 May 2024, leveraging the Haitang District Party Building Alliance
(党建大联盟交流平台), the Sanya Downtown Store participated in the“Haitang Vision” Phase 2 roadshow event titled “Building EcologicalCivilisation, Practising Green Development – Green Vitality”, underthe theme Haitang in Action. Focusing on fulfilling the company’sresponsibilities as a central enterprise and advancing ecologicalconservation, the branch promoted its “Integrity in Operations, Excellencein Service” model and secured second place in a competition among keycultural-tourism enterprises in the region
▼From 24 to 28 June 2024, the Sanya Downtown Store held “Clean the
Blue Ocean, Guard the Green Forest” week. During this time, nearly 100staff and volunteers undertook beach and forest cleanup efforts in threerounds at Coconut Island
Educational Support
On 29 May 2024, 28 Party members from the Sanya DowntownStore visited a children’s charity in Jiyang district, Sanya, toconduct the “Love Builds Dreams, Warmth Touches Hearts”initiative. They donated milk, bread, tissues, and other supplies to19 children with special needs (referred to as “Slow Angels” – thosefacing developmental delays, speech impairments, or mobilitychallenges due to congenital or acquired conditions), offering careand support for these individuals.
On 20 September 2024, the company collaborated withFrench brand Guerlain on a bee conservation project, visitingXuhui District New World Primary School in Shanghai topromote bee protection to 140 second-grade pupils throughthemed workshops, with a view to fostering environmentalawareness among young people.
Community Initiatives
The company has organised annual clothing donations for 16consecutive years to deliver care to those in need. In 2024,Hangzhou cdf donated 80 kilograms of used clothing to the ChinaCharity Federation, and Hohhot cdf launched a clothing drive viathe “White Whale Platform” to help keep people warm.
On 6 February 2024, in the run-up to Lunar New Year, the SanyaDowntown Store sent volunteers to the Jiyang District Elderly CareHome for the “Spring Warmth, Deep Compassion” event.
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The Sanya Downtown Store actively undertook efforts tomeet its social responsibility by prioritising local employmentand refining campus recruitment. In 2024, the store recruitedapproximately 50 graduates, contributing to regionaleconomic development and talent retention.
On 11 October 2024, the Riyue Store (日月店) partnered withHaikou Qiongshan District authorities to visit the Hongming ElderlyCare Home in Sanmenpo town, Haikou, offering companionshipand support to seniors who might otherwise have limitedopportunities to socialise.
On 5 March 2024, during peak hours at Sanya InternationalDuty-Free Shopping Complex, 30 volunteers in red vestsconducted a traffic safety campaign at a T-junction.
Additionally, the store dispatched a group of youngprofessionals to teach at youth night schools in Jiyang andHaitang districts, with a view to helping youth in Hainan FreeTrade Port acquire skills while enriching their leisure lives andnurturing their intellectual growth.
During the 9th “China Charity Day”, the Sanya DowntownStore co-hosted a charity bazaar in Haitang district topromote philanthropy, rallying local participation andadvancing charitable causes.
Following Typhoons Yagi and Trami, HainanDF staff engaged in post-disaster cleanup,debris removal, and sanitation efforts to helprestore the area.
On 5 March 2024, volunteers from the Meilan Storeprovided guidance, luggage assistance, and inquirysupport at Haikou Meilan International Airport,embodying the “Spirit of Lei Feng”.
In November 2024, volunteers from the Sanya Store assisted inmaintaining order at the 12th National Traditional Ethnic Games’wrestling venue and the hotel that housed the athletes.
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On 5 March 2024, the Riyue Store organised a blooddonation drive and received successful donations from 55people who contributed 12,300 millilitres of blood, a portionof which was used to provide emergency support for auniversity student.
On 30 September 2024, the Riyue Store participatedin Qiongshan district’s “75 Years of Glory: Party FlagsIlluminating Splendour” volunteer music gala in Haikou.
In February 2024, freezing rain and snowfall occurred inHubei province. In response, Wuhan cdf formed a volunteerteam of 11 people who donned eye-catching volunteer vestsand went straight to the front line to provide compassionateservices such as inquiry guidance and question-and-answerassistance for passengers, conveying warmth throughpractical actions.
In 2024, our subsidiaries established dedicated volunteer groups.For example, Chengdu cdf’s Youth League encouraged staffto register as volunteers on the official “Civilised Rongcheng”volunteer platform and actively participate in community volunteerservices, mandating 20 or more service hours per year. Meanwhile,Hangzhou cdf formed the “Qihang Pioneer Team” to addressurgent operational tasks through volunteer efforts.In 2024, the company conducted 59 ESG-related activities,including a number of volunteer initiatives, with 3,580 employeescontributing a total of 7,940 hours.
Overseas Social Responsibility
On 1 August 2024, CDFI organised volunteers for a tree-planting activity in Hong Kong’s country parks, with a view toenhancing green ecosystems and biodiversity. A total of 500 saplings, including Ardisia punctata, Daphniphyllum calycinum,and Helicia cochinchinensis, were planted, symbolising resilience in line with the concept of “rooting downward, growingupward, and standing firm against the wind”.
People
CTG DUTY-FREE actively responds to United Nations (UN) SustainableDevelopment Goals (SDGs) 3, 5 and 8. As a people-oriented organisation, wecare for our employees. We provide them with training and create a platformfor the company and our people to develop together.
Employee Rights and PromotingTheir Interests
Diversied Training to Promote StaffDevelopment
Operational Safety and Physical andMental Health
▍Employee Rights
We consistently uphold the “people-oriented” management philosophy regarding talent management and strictly comply with theLabour Law, the Labour Contract Law and other laws and regulations, as well as the international human rights and labour conventionsand protocols that China has signed, such as the Equal Remuneration Convention and the Elimination of Discrimination in Respectof Employment and Occupation. We respect the Declaration on Fundamental Principles and Rights at Work issued by InternationalLabour Organization (ILO) and Guiding Principles on Business and Human Rights by the UN. We adhere to the principles of honesty,trustworthiness, fairness and justice in our dealings with employees, and we fully guarantee their rights and interests.
● Governance
The company has established a clear governance framework for employee-related matters. The responsibilities of the Human ResourcesDepartment and its subordinate teams are defined in the “Headquarters Department Responsibilities and Organisational Structure”.Meanwhile, we have specified the implementation measures for tenure-based and contractual management of managerial personnel inthe “Performance Management Measures for Headquarters Employees”, which establishes fundamental principles for comprehensiveperformance evaluation and clarifies supervision mechanisms for employees’ work.
Employee Rights and Promoting Their Interests
● Strategy, Management of impacts, risks and
opportunitiesRecruitment ManagementThe 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 of focusing both on integrityand ability. We also respect differences, encourage diversity, andprohibit any form of discrimination from upholding the principles offairness, impartiality and openness. Our company has formulatedhiring criteria according to the actual needs of each positionwithout imposing any restrictions related to age, gender, ethnicity,religious beliefs or other characteristics. For high-end talents,we insist on a combination of external introductions and internaltrainings, attracting more talents on a selective basis, and selectingthe best candidates to target for recruitment.
Employment ManagementIn regards of prohibiting child labour, we strictly abide by labourlaws and regulations, check ID card during on-boarding proceduresand forbid the employment of child labour. In terms of preventingforced labour, we strictly prohibit restricting employees’ freedomsor forcing employees to work by collecting deposits, detainingdocuments, or engaging in threats. During the reporting year,our company did not have any violations of laws and regulationsinvolving child labour or forced labour.
Resignations Management
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.
Human Resources Department/PartyCommittee Organisation DepartmentGeneral Manager/Department HeadDeputy General Manager/GeneralManager Assistant/Deputy Department
Head/Department Head Assistant
Deputy General Manager/GeneralManager Assistant/Deputy Department
Head/Department Head Assistant
Organisation & Cadre
Management
Team Head
Organisation &Cadre Management
Specialist
Talent Recruitment
& AllocationTeam Head
Workforce Planning
Specialist
Talent Development
& TrainingTeam Head
Talent Development
& TrainingSpecialist
Compensation &Benefits Management
Team Head
Compensation
Management
Specialist
PerformanceManagement
Team Head
PerformanceManagement
Specialist
Employee Relations
Management
Team Head
Employee Relations
Management
SpecialistRecruitment &Allocation Team
Specialist
BenefitsManagement
Specialist
Principles of GovernanceProsperityPeoplePlanet
Holiday and Working Hours Management
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 andcomprehensive 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.Comprehensive Remuneration Management
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 performance salaryratios based on market practices. In this regard, the companydetermines the basic salary based on the position duties, personalcapabilities and other factors. The performance salary is linked tothe company’s comprehensive performance, the department’sperformance and the individual’s performance, forming amechanism of effective incentives and restraints.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. Thecompany formulates “One Enterprise, One Policy” wage standardsbased on regional average wages, and our salary levels aresignificantly higher than the local minimum wage standards. Anyemployees who work a full year and receive incomes below thisstandard are compensated accordingly.The company is actively advancing medium-to-long-term incentivemechanisms. In terms of medium – and long-term incentives, thecompany comprehensively implements a system under whichcorporate managers at all levels are contractually managed on atenure basis. Under the system, managers are required to signcontracts that reward them strictly in accordance with performanceappraisal results. Tenure incentives are only awarded tomanagers who meet the contractual performance standards. Thecompany has not yet implemented equity incentives or employeeshareholding plans. We will introduce such measures in eligibleenterprises when conditions mature.
In accordance with national and local policies, we have establishedand implemented a welfare system to make timely and completepayments of social insurance and housing provident funds foremployees; and we also offer annuities, supplementary medicalcare, canteen dining and other welfare programmes to ourstaff. In this way, we have built a multi-level welfare guaranteesystem based mainly on social insurance, with corporate welfareprogrammes acting as a supplement. 60% of annual remunerationfor corporate managers at all levels is linked to corporateperformance assessments. Actual performance-based paycorrelates with both enterprise evaluation scores and individualmanagerial assessments.Regarding remuneration compliance, all employee compensationand welfare systems undergo rigorous scrutiny during theformulation and revision stages to ensure they are aligned withcorporate policies and legal and regulatory requirements. Prior toimplementation, these systems are also subject to strict reviewprocedures conducted by the staff representative assembly.Meanwhile, the Party Committee conducts inspections andspecialised audits to comprehensively examine subsidiaryenterprises’ salary and welfare performance on an annual basis.Democratic Management
We continue to improve its democratic management system, whichis based on the trade union and the staff representative assembly.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 tradeunion effectively promotes the participation of employees in thecompany’s democratic management and deliberations involvingmajor issues concerning the vital interests of employees.When formulating, revising and deciding rules, regulations andmaterial issues that are directly related to the vital interests ofour employees, such as labour remuneration, working hours,rest and leave, labour safety and health management, insuranceand welfare, employee training, labour discipline, headcountmanagement, etc., we collect opinions from general meetingsof employee representatives to ensure that decisions are madethrough consultation and on an equal basis. We then make publicannouncements to all employees or notify the relevant departmentsor individuals after decisions are made. Employees may alsoappeal to the trade union through email, WeChat, inpersontalks and other channels. In 2024, the company implementedrequirements to strengthen the Women Employees Committee’sorganisational structure, studied the “Work Regulations for theTrade Union’s Women Employees Committee”, and enhancedwomen employees’ committees at the corporate and subsidiarylevels.
Share of women in management positions in revenue-generatingfunctions (e.g. sales) as % of all such managersTotal number of new employees1,905 Person
2,949 Person
36%
/
Internal hire rate
45.35%
%
● Metrics and Targets
20242023
Females in the management
36.36%
%
Females in the senior managerial roles
25%
%
Females in the middle managerial roles
37.25%
%
Total number of employeesThe number of ethnic minority employeesThe percentage of ethnic minority employees16,027 Person1,468 Person9.16%
16,789 Person1,169 Person6.96%
The number of physically
challenged employees
128 Person
Person
Females in the Board of Directorsand the Supervisory Committee
36.36%
37.5
%
The percentage of foreign employees
in the management
0.91%
/
The percentage of foreign employees
3.14%
2.67
%
The percentage of ethnic minorityemployees in the management
4.55%
%
The number of foreign employees504 Person
Person
Principles of GovernanceProsperityPeoplePlanet
The number of employees by gender
North ChinaNortheast ChinaEast ChinaNorthwest
China
Hong KongSAR, MacauSAR andTaiwan regionSouth andcentral China
SouthwestChina
Overseas
108 Person 0.64%
418 Person 2.49%
251 Person 1.50%
694 Person 4.13%484 Person 2.88%
2024
2023
2024
2023
40 Person 0.25%2,225 Person 13.88%
727 Person 4.54%
2,163 Person 12.88%
307 Person 1.92%
539 Person 3.36%238 Person 1.48%
202320249,767 Person 60.94%10,693 Person 63.69%
The number of employees by region
Seniormanagerial roles
Middlemanagerial roles
Generalemployees
The number of employees by employee category
20232024
10 Person 0.06%
8 Person 0.05%
15,917 Person 99.31%
217 Person 1.29%
16,562 Person 98.65%102 Person 0.64%
Over 6030-3940-49Below 2222-29
2024
2023
20242023
7 Person 0.04%
254 Person 1.58%
431 Person 2.57%
1,799 Person 11.22%
1,649 Person 9.82%423 Person 2.52%
425 Person 2.65%8 Person 0.05%
6,234 Person 37.13%8,045 Person 47.92%202320246,670 Person 41.62%6,871 Person 42.87%
The number of employees by age group
1,978 Person 11.78%
2,184 Person 13.63%
20232024
9,285 Person 55.3%6,775 Person 42.3%
7,504 Person 44.7%9,252 Person 57.7%
FemaleMale
50-60
The number of new employees by categoryThe number of new employees by gender
FemaleMaleSenior
managerial roles
Middlemanagerial roles
Generalemployees
| 20242023 | 20242023 |
1,180 Person 61.94%1,901 Person 99.79%725 Person 38.06%
The number of new employees by employee category0 Person 0.00%4 Person 0.21%
The number of new employees by nationality
The number of new employees by age group
Chinese nationalityForeign nationality
Han ethnicgroup
Chinese ethnicminorities
China’s Hong Kong SAR, MacauSAR, Taiwan region and overseas
202420232024
2023
2024
202320242023
1,764 Person 92.60%
558 Person 29.29%1,570 Person 82.41%1,055 Person 55.38%
The number of new employees by ethnicity
20 Person 1.05%0 Person 0.00%
141 Person 7.40%131 Person 6.88%194 Person 10.18%50-60Over 6030-39
40-49Below 2222-29
141 Person 7.40%
141 Person 7.40%
Employee turnover rate
Total employee turnover rate 15.71%, of which employee voluntary turnover rate was 9.63%.
Employee turnover rateby gender
Employee turnover rate by categoryEmployee turnover rate by age group
Employee turnover rate by
geographical region
MaleFemale
17.05%
16.09%
17.53%
14.33%
Seniormanagerialroles
25%
9.09%
52.94%
58.52%
Over 60
12.53%
14.99%
50-60
6.98%
8.95%
40-49
11.73%
12.22%
30-39
19.23%
19.55%
22-29
48.58%
39.57%
Below 22
5.88%
4.82%
Middlemanagerialroles
18.72%
16.77%
GeneralemployeesOverseas
16.14%
22.31%
18.14%
ChineseMainland
15.65%
China’s HongKong SAR,Macau SAR andTaiwan region
30.54%
31.01%
20242023
Principles of GovernanceProsperityPeoplePlanet
▍Employee CareBased on the principle of “understanding our people, meeting their needs and addressing their difficulties”, we continuously strive to carefor our employees’ needs. Our company also improves employees’ working conditions, enhances and ensures their quality of life, increasestheir happiness and satisfaction, and generally creates conditions that make employees “proud to work at CTG DUTY-FREE”.
▼ Halal canteen
▼ 2024 cdf dinner party and the “Auspicious Serpent Delivers Blessings and a Joyous New Year” Spring Festival activity organised by trade unions.
▼ Staff library
In terms of employee benefits, we have formulated the “AdministrativeRegulations on Assistance for Sick Employees and the Collective Welfareof Trade Unions”. The company’s trade union conducts completeinvestigations to collect employees’ opinions. It sends warm andconsiderate blessings to employees on holidays and birthdays based ontheir age, tastes and living habits. The company demonstrates care forvarious groups, such as employees with difficulties and female employees.The company advocates an inclusive culture and fully considers the needsof ethnic minority employees. For example, we have set up a halal canteenfor Hui staff. The total amount of employee benefits in 2024 is CNY248million.
Employee benefits
We enhance staff well-being and belonging through diverseactivities including literary salons, spring outings, networkingevents, and hiking.
Through tradeunion subgroups,the companyconducted over20 spring outings– including hiking,flower appreciation,exhibition visits,and sportingevents – with nearly400 employeesparticipating.
▼ Sports meeting▼ Hiking activities
Festival activities
Work environment
In terms of festival activities, the subordinatetrade unions carried out a series of activities tocelebrate special days, such as InternationalWomen’s Day, the “May Fourth Happy YouthHike”, “Infinite Childhood Sweetness” Children’sDay events, and “Ode to the Motherland”National Day choir competitions.
Reading and sports activitiesIn terms of reading and sports activities, we also stage cultural programmesand reading-sharing events to cultivate a “reading-friendly” culture. The“Embrace Nature: Autumn Trek” at Yanqi Lake’s Western Hills trailsallows staff to relieve stress, bond with colleagues, and rejuvenate. In2024, we participated in Group’s Second Staff Sports Games, and wonchampionships in five-a-side football, badminton and table tennis, and wonthird prize in 3x3 basketball. We also released a “Creative Excellence Award”to recognise employees who demonstrated a bold, challenge-embracingspirit.
▼ International Women’s Day activities
In addition, we provide comfortable nursing rooms, Safe and comfortablespaces for female staff to use during sensitive periods, to protect theprivacy and rights of breastfeeding mothers and generally show respect forfemale employees.In 2024, to demonstrate care for our people, we conducted 48congratulatory or condolence visits for employees who were gettingmarried, giving birth, experiencing bereavement, and retiring, offered fourtributes to annual model workers, and delivered heart-warming greetings tostaff members facing financial difficulties and front-line workers who wereon duty during New Year’s Eve and Spring Festival.
In terms of the work environment, we have madevarious efforts to improve office facilities, provideconvenient services, and ensure that employeesare satisfied with the company canteen. Ourcompany is fully committed to creating aconvenient and comfortable working environment.The company has regularly accessible staffactivity rooms that offer table tennis, treadmills,and billiards. In 2024, employee interest groupsorganised 229 activity sessions (drawing 1,884participants) for yoga, basketball, badminton, andfootball.
▼ Staff centre with 247 square metres
▼Employee recreational and sports centre:
equipped with central air conditioning, dancemirrors, soft seating, fitting rooms and othernecessary equipment and facilities
we conducted 48congratulatory orcondolence visits foremployees who weregetting married, giving birth,experiencing bereavement,and retiring, offeredfour tributes to annualmodel workers,
Principles of GovernanceProsperityPeoplePlanet
We have established talent-specific training systems that align with operations and international standards to build smooth career paths forour employees and provided them with a robust platform for their career development.▍Employee TrainingThe company regards strategic development as the core goal of training, and is committed to establishing a robust talent developmentand training mechanism. Through a combination of online and offline trainings, and under the management principle of “grading andclassification, and training for all employees”, we independently provide various trainings to stimulate learning and cultivate talentedprofessionals who will support the company’s sustainable growth. At the same time, the company adopts a multifaceted training approachto boost engagement and satisfaction.In 2024, the company conducted a variety of tiered training activities:
Diversified Training to Promote Staff Development
Type of trainingSeniormanagement
Senior management
Senior management
Middlemanagement
Middle management
Middle management
External offline programmes oncorporate strategy, innovation,and leadership to enhancepolitical awareness and strategicvision.
Front-line managers/
store managers
Front-line managers/
store managers
Front-line managers/
store managers
General staff
General staff
Training on internal controls, compliance,and market operations, supplemented bybenchmark enterprise visits and researchprojects, to strengthen awareness ofinternal control management and encourageinnovation in operating models.
Through live broadcasts, special online courses and other formats, the “China Duty-Free Academy” platform offered courses on product information, sales techniques,and office skills to further improve the comprehensive capabilities and practical skillsof employees in all lines. For a large number of front-line sales personnel, trainingfocused on comprehensive skills, covering enhanced customer services and onlinetraffic conversion, with a view to strengthening their comprehensive abilities.
With a focus on key areas such as corporatestrategy, innovative development, and leadership,we participated in specialised training coursesorganised by the Organisation Departmentof the CPC Central Committee, the State-owned Assets Supervision and AdministrationCommission (SASAC), the Central Academy ofSciences (中大院), other high-level authorities,and external institutions. The content included the“Online Special Course on Improving EnterpriseTechnology Innovation Mechanisms”, the “SpecialCourse on Promoting High-Quality DevelopmentResearch”, and “Central Enterprise ArtificialIntelligence Talent Training”. By participating inthese courses, our managers were able to enhancetheir political awareness and strategic thinking, andbroaden their international perspectives.
1. Organised participation in thematic training programmes
on political literacy, compliance management and marketingoperations, which were conducted by SASAC, the Academy ofGovernance (中大院) and other authorities. These programmesincluded the “Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era Study Programme for CentralEnterprise Cadres”, the “Rotational Training on the Spirit of theThird Plenary Session of the 20th CPC Central Committee”,and the “2024 State-Owned Enterprise ComplianceManagement Online Training”, accumulating approximately210+ attendances. In this way, middle managers were ableto comprehensively enhance their political awareness andadministrative capabilities. 2. Arranged for subsidiary enterprisemanagerial personnel to deepen their understanding of industry-leading management models and operational strategies throughintensive workshops, visits to exemplary enterprises, andresearch projects, holistically improving their managerial skills.
Leveraging our internal online learningplatform “China Duty-Free Academy”,diversified training formats including live-streamed lectures, thematic seminars andspecialised courses were used to delivercapability enhancement programmes onteam-building, compliance governance andstore operations. In 2024, total participation inthese courses exceeded 1,000 attendances.For newly promoted managers, we offer rolecognition and team leadership courses tofacilitate smooth role transitions. Managerswith 3-5 years’ tenure took innovationmindset and risk control courses,with a viewto comprehensively upgrading their skillsand injecting new momentum into businessdevelopment.
Leadership development
Technology innovation & intelligent empowerment training
We attended programmes offered by external professional institutions, includingthe “Online Specialised Course on Improving Enterprise Sci-Tech InnovationMechanisms”, “AI and Strategic Management”, and “Enterprise-wide Value ChainInnovation within Innovation Ecosystems – Singaporean Case Studies”, to enhancetheir digital and intelligent thinking and innovation capabilities.
Through our internal mobile platform “China Duty-Free Academy”, external expertsdelivered live-streamed courses such as “Innovative Thinking Enhancement” and“AI-powered Office Efficiency Improvement”, effectively elevating employees’technological innovation skills.
The company cultivated internal resources by establishing a lecturer team, which delivereda lecture series called “Excellent Teachers and Excellent Courses”. In 2024, the teamdelivered eight live lectures, which drew 1,500 participants. This “training-through-practice”approach strengthened internal trainers’ comprehensive abilities.The company attaches importance to the training of young talents and continues to carryout management trainee training programmes. Taking into account the company’s strategicbusiness objectives, we used the “job rotation and research” training format to accelerateprofessional growth, cultivate talent pipelines for critical roles, and enhance the corecompetitiveness of the company.
In 2024,830 key training
sessions were held.
We consistently operate the “China Duty-Free Academy” online training platform for all staff, effectively integrating internal and externalinstructional resources to deliver professional and diversified curricula and continuously enrich course content. The “China Duty-FreeAcademy” online platform had achieved full staff coverage (16,200 accounts) by the end of 2024. In 2024, courses for 26 topics wereintroduced, and 13 live training sessions were held, resulting in a total of more than 430,000 attendances and 8.2 average training hourscompleted per employee. Concurrently, to enhance learning engagement and promptly disseminate educational resources, the “ChinaDuty-Free Academy” official WeChat account constantly releases course updates and knowledge-sharing content to employees.In 2024, we conducted trainings as follows:
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 intensetrainings subject to the requirement on the training hours in the Regulations on the Education andTraining of Cadres issued by the CPC Central Committee.
In May, the company launcheda specialised director trainingprogramme, which offers 14customised online courses andexamination banks, with a view toimproving directors’ professionalskills.
In August, we held a six-day induction programme fornew employees that incorporated a corporate overview,professional ethics training, and outdoor team-buildingactivities. Trainees actively participated in the programme,demonstrated their individual strengths, and deepenedtheir understanding of our corporate values and coreoperations. These initiatives showcased the boundlesscreativity and youthful vigour of the new generation of “cdfpeople”, highlighting their perseverance, collaborative spiritand youthful energy.
In October, taking into account thecharacteristics of the duty-free industryand authentic business scenarios, weadopted an immersive “shared instruction+ group discussions + real-scenario drills”format for front-line sales training, furtherelevating sales staff’s comprehensivecompetencies and practical skills.
In November, the company organised intensiveoffline training for subsidiary enterprise managers,incorporating benchmark enterprise visits,research projects, and reporting sessions.This enabled our people to gain an in-depthunderstanding of industry-leading managementmodels and operating strategies, while alsostrengthening their internal control awareness,advancing modern management concepts, andpromoting efficient operations through innovativebusiness approaches.
From May to June, the company conducted learningpathway workshops for front-line sales positions, leveragingbest practices to develop 12 core courses and establish a“training-examination-archiving-certification” mechanism. In thisway, we are accelerating the cultivation of talent and effectivelyimproving the service quality of front-line sales personnel.
Percentage of employees trained100%
100%
The total expenditure of employee training and
development
CNY9.54 million
CNY
7.54
million
Average cost of training and developmentper full-time employee
595.55 CNY/Person
449.28 CNY/Person
Total training hours
633,700 hour
547,000hourAverage training hourscompleted per employee
40.03 hour
32.8 hour
Percentage of employees trained by gender
Percentage of employees trained by category
Average training hours completed
per employee by gender
Average training hours completed
per employee by category
Average training hours completed per
employee by region
2024
20232024
2023
2023
20232024
2024
100%
100%100%
100%
FemaleMale
Senior management Middle management General
employeeMaleFemale
30.3
hour
24.4
hour
26.79 hour
36.58 hour
Seniormanagement
MiddlemanagementGeneralemployee
142.45 hour41.76 hour
152.1 hour34.2
hour
75.05 hour13.29 hour
35.2
hour18.1
hour
34.90 hour
14.27 hour
32.7 hour
19.8 hour
OverseasChineseMainlandChinese HongKong SAR,Macau SAR andTaiwan region
20242023
Principles of GovernanceProsperityPeoplePlanet
Case study
▍Employee 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.According to the actual circumstances of the company, we have established a ranking system covering all grades and types of positionsbased on a hierarchical management system and job qualification criteria. The company determines the function, level and rank ofemployees according to their abilities, performance and qualifications. We allow two-way movement between management positions andprofessional positions and use a ranking system that reaches every level and grades horizontally and vertically across our headquarters andsubsidiaries. We have built multiple career paths – including through annual rank promotions, promotions based on professional reviews,open recruitment of executives, and an internal system for regular talent exchange – to align the development of each employee’s careerwith the overall development of the company’s talent. We adopted the Management by Objectives (MBO), Key Performance Indicators (KPI)and 360°Feedback for integrated employee performance management. Performance evaluations are conducted at least once a year. Theassessment includes both work performance and professional capability, and the performance assessment results are determined throughthe ranking of the overall scores of employees responsible for the same tasks, covering 100% of the employees.
▼ A vocational skills certification venue
Improving vocational skills to boost corporate development
The company’s trade union rigorously implements President Xi Jinping’s directives on industrial workforce development, organising“Duty-Free Artisans” labour and skills competitions to promote practice-driven learning and productivity.The Sanya Downtown Store’s trade union conducted 17 themed competitions under the “trusted business operations and excellentservices” model, engaging 3,389 participants. Meanwhile, the Haikou International Duty-Free Shopping Complex’s trade unionorganised sales and other professional skills competitions, with more than 500 participants. Guangzhou Xinmian’s trade unionorganised a beauty contest, and Shenzhen supply chain trade union actively organised employees to participate in CPR training andflower arrangement training. Through these competitions, we effectively communicated the company’s service value concepts whilealso enhancing employee skills and service quality.
The company is committed to cultivating vocational talent.In terms of professional title reviews, employees are activelyencouraged to review and apply for professional titles atall levels, and the company has seen steady growth in thenumber and quality of various professional and technicaltalents. In 2024, the number of professional certificationsheld by our engineering, accounting, auditing and archivalprofessionals grew 17% from the previous year. Meanwhile,the company’s subsidiaries obtained the authority to engagein self-accreditation for “merchandise sales” and “labourrelations coordinator” certifications, which aligns with theiroperational needs. In 2024, the company pioneered in-houseprimary/intermediate “merchandise sales” assessmentsusing evaluations that combine theory and practice, andfirst-time candidates achieved an 86% pass rate. In this way,we established an “internal cultivation + certification” talentdevelopment framework, effectively charting vocational careerpathways.
▍Operational SafetyWe vigorously carry out the establishment of a safety culture, cultivate and refine the safety culture system with the characteristics of CTGDUTY-FREE, firmly establish the safety concept of “people-oriented, service first, and safety first”, focusing on five major pillars of safety,including Party construction, law, mechanism, science and technology, and employee awareness, to achieve the goal of “zero accidents” inoperations safety.
Operational Safety and Physical and Mental Health
Party ConstructionThe company strictly abides by laws andregulations such as the Work Safety Law, the Lawon the Prevention and Control of OccupationalDiseases, and to promote regulatory complianceand policy evaluation, the company revised/established six safety management systems in2024, including the “Work Safety ManagementMeasures”, the “Regulations for Work SafetyCommittee Operations and Regular Meetings”,the “Work Safety Assessment and EvaluationRegulations”, the “Occupational HealthManagement Regulations”, and the “OverseasSafety Management Regulations and SafetyIncident Management Procedures”, forming asystematic, coherent and operationally effectiveregulatory framework.
Party organisations of the company at all levels give full play to their leading role, improving the system of “equal
responsibilities for CPC committees and government, dual responsibilities, and joint management”. All Party members
should play an exemplary role in performing their duties, and ensure the implementation from the five aspects of safety
regulations publicity, safety deployment implementation, safety funds investment, safety performance supervision, and
safety awareness enhancement. The company adheres to President Xi Jinping’s important statement on operations
safety to arm ourselves intellectually and to guide our practice. Party organisations at all levels give full play to their
leading role, improving the system of “equal responsibilities for CPC committees and government, dual responsibilities,
and joint management”. All Party members should play an exemplary role in performing their duties, and ensure the
implementation from the five aspects of safety regulations publicity, safety deployment implementation, safety funds
investment, safety performance supervision, and safety awareness enhancement.
In 2024, the company thoroughly implemented the guiding principles of the Third Plenary Session of the 20th
CPC Central Committee and President Xi Jinping’s directives on work safety, reinforcing organisational safety
awareness. The Party Committee organised four study sessions on the central government’s decisions and work
safety conferences, and convened two Work Safety Committee meetings and six thematic meetings, with the goal of
consolidating red-line awareness and bottom-line thinking to ensure we meet our responsibilities.
In terms of operations safety management, the company has persistentlyadvanced work safety standardization and has clarified the composition andresponsibilities of the Safety Committee. All large-scale stores and projects underconstruction are equipped with full-time safety management personnel as required,ensuring the smooth implementation of all safety work. Concurrently, we optimisedthe composition and responsibilities of Work Safety Committees at all levels inresponse to personnel changes and operational demands. Subsidiaries wereguided to refine committee mechanisms, establish dedicated safety departments,and deploy qualified full-time and part-time safety personnel. By the end of 2024,the company had 267 safety officers (46 full-time, 221 part-time), and our numberof certified safety engineers met regulatory requirements.The company actively encourages its subsidiaries to standardise productionsafety. The Sanya International Duty-Free Shopping Complex initiated acertification project and engaged expert consultants to develop systematicdocumentation, achieving comprehensive control over production safety andfire risk management. Under this project, the complex established standardisedoperational protocols, intrinsically safe facilities, and customised workplacelayouts to secure safety certification. Meanwhile, CDFI obtained certifications inthe three areas of Occupational Health & Safety, Environmental Managementand Quality Management, with a view to upholding internal controls and precisionmanagement.During the year, the company signed 129 copies of the Letter of Commitmentto Operational Safety, Energy Conservation and Environmental Protection,covering each department and affiliated company, to clarify management andassessment requirements, and reward and punishment standards, and guideand supervise companies at all levels in the detailed implementation of relatedmeasures. Each department and affiliated company are encouraged to sign theLetter of Commitment and shoulder its responsibility, so that the company canimplemented its main responsibilities. In December 2024, the company conductedsafety evaluations for its subsidiaries, shifting from post-incident response topreventive process control to enforce corporate accountability. Moreover, usingelectronically signed pledges on the OA system, we obtained energy conservationand environmental responsibility commitments from 100% of the company’s staff.At the same time, the company further strengthened production safetyresponsibilities for individuals who are primarily responsible. First, for the fourthconsecutive year, enterprise principals at all levels delivered 218 safety-themedlectures, spearheading regulatory compliance education and cultivatingorganisation-wide red-line awareness. Second, principals took the lead in carrying
Safety Compliance
out investigations of potential safety hazards, and they personally led 436 safetyinspections at construction sites, retail outlets, warehouses and staff dormitories toidentify operational risks.In terms of emergency management of safety risks, the company has formulated
the Contingency Plan for Operational Safety Accidents. Emergency management wasenhanced through annual drill plans, fire equipment training and realistic evacuationexercises. In 2024, subsidiaries conducted 326 emergency drills (including 84 jointexercises with local authorities and adjacent entities), engaging 17,400 participants.Through these efforts, we significantly improved the company’s crisis responsecapabilities, with a view to maintaining the safety of employees and protectingcustomers’ lives and property.
In terms of operations safety inspections and prevention and control, the
company continues to carry out the investigation and rectification of potentialsafety hazards; strengthen management of special equipment, fire safety, electricalsystems, construction, e-vehicle usage and gas usage; improve the quality andefficiency of the investigation and rectification of potential safety hazards; and fullyeliminate production safety accidents.The company insists on carrying out diagnostic troubleshooting and rectificationsunder the guidance of experts. In 2024, the company invited a group of externalexperts to carry out operational safety inspections and assessments on focusareas and major projects, including Sunrise Shanghai, Sunrise China and key areasin Hainan. This project was designed to promote reform, leverage inspections tocheck the effectiveness of training, and strengthen troubleshooting and governanceof safety hazards in critical premises such as the company’s tax-free complexes,projects under construction and logistics centres. Furthermore, the company’s WorkSafety Committee has strengthened oversight of hazard identification and heightenedscrutiny during critical periods (e.g. year-end, the “Two Sessions”, holidays andpeak seasons), with a view to bolstering overall safety management and preventingoperational safety accidents. We also undertake special initiatives such as pre-festivalsafety checks, fire safety self-audits, root-cause rectifications and special equipmentsafety inspections. In 2024, the company’s enterprises at various levels carried out atotal of 1,238 safety inspections, and identified and rectified 2,214 safety hazards.Under the “Internal Reward Management Measures for Work Safety HazardReporting”, an incentivised hazard reporting mechanism was trialled at the HaikouInternational Duty-Free Shopping Complex, mobilising all employees to activelyidentify and report potential risks and encouraging workforce engagement in safetystewardship.
Safety Mechanism
Principles of GovernanceProsperityPeoplePlanet
Science and Technology
Safety publicity
The company attaches importance to using safe, reliable, efficient and practical safety management technology to improve safety management. All ongoingconstruction projects in 2024 incorporated intelligent simulation safety experience centres. These centres use computerised optoelectronic technology toreplicate accident scenarios and enable immersive worker training, thereby enhancing our people’s emergency response capabilities.
The company continued to cultivate a culture of “safety publicity”.
Subsidiaries used diverse methods – includingbulletin boards, banners, online learning, “openlectures”, and quizzes – to promote awarenessof safety laws and regulations and educateemployees about safety issues.The company organised all subsidiaries to conductin-depth safety education campaigns, includingOperational Safety Month, Fire Prevention PublicityMonth, Publicity Week for the Law on the Preventionand Control of Occupational Diseases, andNational Safety Publicity and Consultation Day.External experts were invited to deliver fire safetytraining, while online safety knowledge tests wereadministered via OA systems and questionnaires.The company’s leadership team participated fully,with over 8,800 employees actively engaging in theseactivities.
For Production Safety Month in 2024, employeeswere organised to collectively watch promotionalvideos titled “Production Safety: Shouldering ourResponsibility”, and “Analysis and Warnings forTypical Cases Violating the Fire Protection Law”. Theyalso analysed case studies, such as the ShenzhenHappy Valley “10.27” equipment collision incident.
The Haikou International Duty-FreeShopping Complex project andthe Sanya International Duty-FreeShopping Complex Phase 3project deployed a smart safetyplatform that integrates personnelmanagement, training modules,safety inspection, controls for keyzones and safety accountabilityprofiling, substantially improvingon-site safety and oversight.
The Haikou International Duty-FreeShopping Complex projectimplemented an intelligent hardhatsystem to track worker trajectories,analyse personal protectiveequipment (PPE) compliance, issueaudio alerts in restricted zones,and enable incident reporting, withthe goal of eliminating blind spotsin monitoring.
The Sanya Duty-Free ShoppingComplex actively utilises smart fireprotection systems and an urbanfire monitoring information platform.Using a “QR codes + app + onlinesystems” approach, the complexengages in efficient, paperless fireinspection management to ensurethe rectification of potential hazards.
In addition, the Sanya Duty-FreeShopping Complex hasenhanced its public stakeholdermanagement platform by addingonline modules for three-level“hot work” approvals and safetypenalty notices. In this way, thecomplex has made its operationsmore paperless and achievedfull-process online applicationapproval, greatly improving theefficiency of stakeholder safetymanagement.
In 2024, the company invested CNY21.77 million in production safety, with a cumulative three-year investment of CNY85.24 million, and thissafety investment provided a strong guarantee for the safe development of the business. In the past three years, the company did not recordany safety accidents. During the reporting period, work-related fatalities and injuries for the company and its contractors were as follows:
MetricsTier 2 metricsUnit20242023Work-related fatalities
EmployeeNumber of people00ContractorsNumber of people0/The fatality rate of the Company’s employees due towork-related injuries
/%00Total number of work-related injury cases/Cases00Number of working days lost due to work-relatedinjury
EmployeeDays00
ContractorsDays0/Lost-time injury frequency rate (per one million hoursworked)
(LTIFR)
Employee%00
Contractors%0/
Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers*100%;
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*1,000,000
In 2024, the company organised and carried out 770 safety trainings for 32,300 participants, and 199 examinations on operational safety knowledge for26,500 participants. In addition, we compiled and issued the “Corporate Safety Culture Manual”, which covers safety concepts, management practices,behavioural norms, occupational health, emergency protocols, and safety knowledge. Extensive reading and study sessions were organised to encourageour people to practise safety principles in their daily work.
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▍Physical and Mental HealthWe are fully committed to fulfilling our duties as a people-oriented company and puts the safety andphysical and mental health of employees first. In 2024, the company revised and issued the “OccupationalHealth Management Regulations”, adjusted content related to organisational structures, job requirements,reporting mechanisms and other areas, and organised all subsidiaries to establish relevant systemssimultaneously to improve the standardisation of occupational health management. In terms of occupationalhealth management, the company provides benefits that includes annual physical examinations andcomprehensive medical insurance for employees, including accident insurance, serious disease insuranceand medical insurance. During the year, the company’s total amount of work-related injury insuranceexpenses is CNY539,100, with a coverage rate of 100% of employees. In addition, the company providesmedical insurance that covers overseas medical institutions for expatriate employees and those who areon overseas business trips, relieving employees of the burden of medical expenses while they are workingabroad. Paediatric medical insurance, regular traditional Chinese medicine (TCM) consultations and mentalhealth support programmes were also provided to support the physical and mental health of employees.CDFI passed its occupational health and safety management system (ISO45001) audit in December 2024.
▼Notice of Conformity
in the Annual Audit ofCDF International’sOccupational HealthManagement System
The company provides employees with a safe and healthy work environment to minimise workplace injuries. The company’s staff atconstruction sites may be exposed to a range of occupational hazards, including noise, dust, vibrations, toxic and harmful gases, andhigh temperatures. Meanwhile, merchandise handlers in logistics centres may be exposed to the occupational hazards of high and lowtemperatures. The company always pays attention to the physical and mental health of staff members and takes multiple measures toprevent occupational diseases:
Identification and rectification:
The company regularly updates and inspects employees’ workequipment to reduce accidents caused by equipment damage.We carry out troubleshooting and rectification actions againstoccupational hazard factors, examine the working status ofoccupational disease prevention facilities and the distributionand use of PPE, comprehensively check the implementation ofoccupational disease prevention measures for all units underconstruction, establish occupational health protection plansand emergency plans for occupational health accidents, andfocus on preventing and resolving potential risks in the field ofoccupational health.
▼Occupational health articles
were published on officialsocial media accounts
▼Hainan DF launched onlinetraining courses
▼At stores, occupational health
knowledge was promoted amongemployees and customers
▼Staff viewings of thematic videos
were organised
Special training:
We organise special training on occupational health, andpromote education on occupational health management,including the identification and prevention of occupationaldisease hazards, occupational disease classification andcategories, personal protective equipment, and employeeoccupational health rights, to reinforce the foundation of thecompany’s occupational health management.
Case study:
The company collects and publicises typical cases ofoccupational health, and studies and analyses incidents suchas deaths caused by inadequate implementation of heatstrokeprevention measures, administrative punishments for impropermanagement of occupational hazards, and failures to issueoccupational hazard notifications, to provide reminders andlessons for employees and increase their awareness of theimportance of occupational health management.
Organise Publicity Activities:
The company organised affiliated companies at all levels tostage activities for Publicity Week for the Law on the Preventionand Control of Occupational Diseases. We carried out a seriesof publicity and educational activities to promote educationrelated to occupational disease prevention and effectivelyraise employees’ awareness of occupational hazards. DuringPublicity Week, a total of 1,450 occupational health publicitymaterials were distributed; 158 themed lectures were held;and 129 educational reminder activities and 39 publicityconsultations were carried out. Through these efforts, wewere able to reach a total audience of 11,548, effectivelystrengthening the foundation of the company’s occupationalhealth management.
Principles of GovernanceProsperityPeoplePlanet
Case study
Case study
▼The Sanya Tangpan project organised free physical examinations for
construction personnel
▼The Haikou project held a special training session on the use of labourprotection appliances
During Publicity Week, the heads of the Sanya Downtown Store led a team to visit front-line staff to better understand occupational hazardsfacing each post and the implementation of preventive and control measures. CDF Investment Development organised specialised workersand operators, paint insulation professionals, and other operators at sites under construction to carry out education and training related tooccupational disease prevention, and checked the certification of specialised operators to ensure that 100% of the workers were certified.In addition, all stores held regular meetings to educate their staff about occupational disease prevention and control, and they displayedposters and played videos to cultivate a culture that upholds occupational disease prevention and control. Moreover, Sunrise Chinaorganised a lecture on first-aid and invited experts from Safety and Health Education to explain and demonstrate emergency treatments forhealth emergencies and heatstroke.
In 2024, the trade unions of the company’s subsidiaries organised the “Healthy Hangzhou, Co-creation and Co-sharing”, “Wellness CDF (健康沐免)” and cardiovascular prevention lecture series, and they also offered annual health checks, set up psychological counselling hotlinesand released stress management journals.
Free clinic visits for staff
In order to enhance the health awareness of employees, in November, the company’s trade union held the second “Caring forEmployee Health” free clinic activity. Physicians from external medical service organisations were invited to provide consultations andTCM physiotherapy for employees, serving more than 60 employees in total. At the event, a personalised conditioning programmewas developed based on employees’ conditions to guide them to seek medical treatment and live a healthy life.
Enhancing emergency response to provide customers with a safe andcomfortable shopping experience
On 26 November 2024, at a store on the third floor of ZoneA in the Sanya International Duty-Free Shopping Complex, acustomer suffered cardiac arrest and fainted, presenting anunexpected emergency. A team comprising trained medicalpersonnel from the store, sales staff and bystanders performedCPR within the critical 4-minute window and successfullyresuscitated the person. In 2024, Sanya International Duty-FreeShopping Complex properly handled 4 critical emergenciesand more than 150 incidents through refined protocols andcross-departmental coordination. Since 2020, the SanyaInternational Duty-Free Shopping Complex has organisedmore than 30 professional medical trainings, covering first-aidknowledge, methods for using basic medical supplies,emergency plans and on-site emergency response procedures.
Planet
CTG DUTY-FREE cares for the planet based on its business features and inlight of environmental characteristics of its main business locations. We areactively responding to UN SDGs 2, 6, 7, 9, 11, 12, 13, 14 and 15 by engagingin multiple environmental protection initiatives, such as water resourcemanagement, active responses to climate change, green and low-carbonoperations, and promote a circular economy.
Addressing Climate Change toProtect the Environment
Focusing on New Quality ProductiveForces to Develop a Circular Economy
Green and Low-Carbon Operationsfor a Better Life
Addressing Climate Change to Protect the EnvironmentClimate change is having a broad and far-reaching impact on the world, CTG DUTY-FREE analyses the potential challenges that climatechange may bring, actively deploys mitigation and adaption measures, and explores opportunities. This section describes our efforts andfuture plans for addressing climate change according to the framework of “Governance, Strategy, Impact, risk and opportunity management,Metrics and targets”.▍GovernanceWe 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 set up a “Leadership Group on Carbon Peakingand Carbon Neutrality”, please refer to “Green and Low-CarbonOperations for a Better Life”.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.
▍Strategy
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 thetransition 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.
Scenario analysis
Based on the analysis of chronic and acute physical risks under different climate scenarios, we comprehensively assess the potential impactof physical risks on corporate strategy, business operations and financial conditions under different scenarios. We then prioritise climaterisks, optimise resource allocation, and improve risk management.We selected the current scenario, the relatively orderly pathway toward 1.5°C set by the Network for Greening the Financial System (NGFS)(i.e., reaching net zero around 2050), alongside the climate scenario of 3°C Nationally Determined Contributions (NDCs) set by the NGFS (i.e.,global warming of 3°C scenario around 2050) for scenario analysis.
Principles of GovernanceProsperityPeoplePlanet
Physical risk
category
Climate risk type
Risk impact ofcurrent scenario
Risk impact under the
1.5°C – scenario
Risk impact under the3°C – scenario (hereinafter“high emissions scenario”)
Chronic risks
Extreme heatExtreme highExtreme highExtreme highExtreme coldLowLowLowPrecipitation (heavy rain)HighHighHigh
Extreme snowfallExtreme lowExtreme lowExtreme low
Extreme windExtreme lowExtreme lowExtreme low
Acute risks
Coastal floodingHighMediumMediumFluvial floodingMediumMediumMedium
TyphoonsExtreme highExtreme highExtreme highWildfiresHighHighHighRiver low flowExtreme lowExtreme lowExtreme low
Subject to the assessment of the geographical location of the company’s assets, exposure and severity, the company’s overall businesswas exposed to extremely low to moderate risk under all climate scenarios, including extreme cold, extreme snowfall, extreme wind, fluvialflooding, and river low flow. We identified physical risks with high or higher risk levels, such as extreme heat, precipitation, coastal flooding,typhoons and wildfires, and further elaborated on the targeted description in terms of impact, assessment, impact cycle, scope of impact,potential financial impact, strategies, mitigation and adaptation measures, and comprehensively analysed the related risks, including directloss, operation interruption, customer loss, and the impact of supply chain disruption on all links of the company’s business value chain. Weactively promote the climate adaptability design of buildings, creation for a more resilient supply chain, online and offline business integrationand other measures, improve the company’s ability to address climate risks, enhance the durability and stability of business operations, andcontinue to provide customers with quality goods and services.
Current scenario1.5°C – Net-zero world scenario3°C – Greenhouse world scenarioPhysical risk output of riskexposure based on 2021benchmark
RCP 1.9IEA Net-Zero by 2050NGFS Net-Zero 2050SSP1 – Sustainability
RCP 6.0IEA Stated PoliciesScenarios (STEPS)NGFS NDC scenarioShared Socio-Economic Pathway –Fossil-fuelled development
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. Theestimated physical risks would be slightly lower than in the Current Scenario case, but still well above the Paris Agreement targets.
Physicalriskcategory
Climate riskcategory
ImpactAssessment
Impact cycle
Scope ofimpact
Potential financial
impact
Strategies, mitigation and adaptation measures
Chronicrisks
Extreme heat
High temperatures will increase demand for water supply and coolingin summer, resulting in increased energy consumption and equipmentmaintenance costs. Extreme high temperatures may lead to excessivepower loads, increase safety hazards such as short circuits and fires,and have an adverse impact on normal operations brought by powersupply tension or power failures.Extreme high temperatures may also affect logistics andtransportation, such as the storage and distribution of refrigeratedgoods, or lead to traffic interruption in some areas, affectingcommodity supplies and passenger flow in tourist destinations.
Extreme high temperatures may cause a veryhigh risk to the company’s operations in Hainanprovince, the GBA and Southeast Asia. Under thehigh emissions scenario, the number of operationswith an extremely high risk will further increase,for example, operations in Fujian province will alsobe exposed to extremely high risks.This will be the most common climate risk facedby the company.
Medium andlong-term
OperationUpstream
Increase inoperating expensesIncreased ininvestmentDecrease inoperating income
Follow green standards for the construction of new buildings from their design and planning,continue the energy-saving optimisation of existing facilities, effectively reduce costs while savingenergy, and promote the use of clean energies.Regularly check, maintain, and update in-store electrical circuit and facilities, and formulateemergency plans to deal with power supply interruptions, such as by installing standby powersupply system to prevent sudden power failure.Rigorously monitor cold-chain logistics to guarantee the quality of temperature-sensitive productsin hot weather, strengthen inventory management, and prepare goods in advance to deal withpossible logistics delays.Continue to expand the online business, integrate online and offline businesses and maintain agood momentum of development to minimize the adverse impact of climate risk on the company’soffline business operations.
Precipitation
Heavy precipitation may lead to road flooding, traffic interruption orpotential safety hazards, and reduce consumers’ willingness to go outand buy. In addition, it may also lead to instability of supply or delayeddelivery, posing challenges to inventory management and customerservices.Continuous heavy rain may affect the sales of some seasonalcommodities, such as outdoor products for summer.
Nearly half of the company’s operation sitesare exposed to a high or extremely high risk ofprecipitation, especially certain operation siteslocated in the Yangtze River Delta, Chongqing cityand Fujian province.
Medium and
long-term
OperationUpstreamDownstream
Increase inoperating expensesDecrease inoperating income
Geographical factors shall be fully considered when selecting sites for project development toavoid the severe impact of disasters on infrastructure.Check waterproof facilities to ensure that the in-store waterproof facilities are effective, and preparenecessary emergency supplies, such as waterproof sandbags, drainage equipment, emergencylighting, etc.By optimising inventory management, we can improve the inventory turnover rate while maintainingadequate inventory, to ensure the stability of the supply chain when the logistics and transportationis interrupted.Adjust marketing strategies, launch targeted promotional activities, and encourage consumers toplace orders online.
Acute risks
Coastalflooding
Coastal flooding may cause seawater to flood stores and damagestore facilities. Goods soaked in water may decay or get damaged,resulting in economic losses.Coastal flooding may cause delays or interruptions in porttransportation and logistics facilities, which may affect the supplychain, thus affecting sales of goods. Coastal flooding may damagepower and communication infrastructure, leading to power failuresand communication interruptions in stores, affecting their normaloperations.Muddy water, pollutants and pathogens left over after floods maypose risks to the health of employees and customers.
Some operations of the company located inHainan province, the GBA, the Yangtze RiverDelta, and the Bohai Rim region are exposed tohigh or extremely high risks.
Short, mediumand long-term
OperationUpstreamDownstream
Increase inoperating expenses
Flood levees shall be built around stores and the threshold shall be raised to reduce the possibilityof seawater flooding. Sandbags, waterproof baffles and other materials shall be prepared for rapiddeployment in case of floods.Develop a detailed emergency response plan, including employee evacuation, customer evacuation,goods transfer and other processes, and conduct regular drills to ensure that employees arefamiliar with the emergency process.By diversifying the supply chain, we avoid heavy dependence on a single supply channel andimprove the flexibility of the supply chain.Adjust the inventory strategy, avoid overstocking high-risk goods, and take appropriate moisture-proof and mold-resistant measures for goods that are vulnerable to floods.
Typhoons
Typhoons may blow down trees or billboards, causing damage to theexternal structure of duty-free stores and threatening the safety ofthese stores. Typhoons often bring heavy rainfall, which may lead tothe flooding of roads and surrounding areas, thus affecting the safeaccess to stores of customers and employees and leading to businessinterruption. Typhoons may affect the logistics system, leading tosupply chain interruptions, and delays in goods replenishment,affecting store inventory and sales.
Some operations of the company located inHainan province, Fujian province, the GBA and theYangtze River Delta are exposed to a very highlevel of typhoon risk. Under the high emissionsscenario, the number of high-risk operationsslightly increases.
Short, mediumand long-term
OperationIncrease in
operating expensesDecrease inoperating income
Pay close attention to the forecast and early warning information, follow the weather forecast, andmake timely adjustments to the store operating plan according to the extreme weather forecast.Strengthen the maintenance and inspection of the store structure, and fix and reinforce it whennecessary to ensure the structure is firm enough to withstand strong winds.Establish stable cooperation with suppliers to ensure timely replenishment of goods even when thesupply chain is interrupted.Strengthen the safety training for employees to improve their awareness of and ability to cope withtyphoons.
Wildfires
The actual losses caused by wildfires may increase additional costs ofmaintenance.The smoke and particles generated by wildfire will seriously affect theair quality, resulting in reduced visibility and posing a threat to thehealth of employees, and that may affect the shopping experience ofcustomers, leading to reduced passenger flow.Wildfires may lead to the blocked roads or traffic congestion, makingit difficult for customers and employees to access the dutyfree stores.If a wildfire spreads to the nearby airport or port, it may affect thesupply chain and logistics of duty-free stores.
Some operations in Hainan province, Heilongjiangprovince, Jilin province, Anhui province areexposed to high risk.
Short, mediumand long-term
OperationDownstream
Increase inoperating expensesDecrease inoperating income
Establish a wildfire monitoring system to keep abreast of the fire development, take preventivemeasures in advance to ensure the safety of employees and customers.
Principles of GovernanceProsperityPeoplePlanet
Physicalriskcategory
Climate riskcategory
ImpactAssessmentImpact cycle
Scope of
impact
Potential financialimpact
Strategies, mitigation and adaptation measures
Chronicrisks
Extreme heat
High temperatures will increase demand for water supply and coolingin summer, resulting in increased energy consumption and equipmentmaintenance costs. Extreme high temperatures may lead to excessivepower loads, increase safety hazards such as short circuits and fires,and have an adverse impact on normal operations brought by powersupply tension or power failures.Extreme high temperatures may also affect logistics andtransportation, such as the storage and distribution of refrigeratedgoods, or lead to traffic interruption in some areas, affectingcommodity supplies and passenger flow in tourist destinations.
Extreme high temperatures may cause a veryhigh risk to the company’s operations in Hainanprovince, the GBA and Southeast Asia. Under thehigh emissions scenario, the number of operationswith an extremely high risk will further increase,for example, operations in Fujian province will alsobe exposed to extremely high risks.This will be the most common climate risk facedby the company.
Medium and
long-term
Operation
Upstream
Increase inoperating expensesIncreased ininvestmentDecrease inoperating income
Follow green standards for the construction of new buildings from their design and planning,continue the energy-saving optimisation of existing facilities, effectively reduce costs while savingenergy, and promote the use of clean energies.Regularly check, maintain, and update in-store electrical circuit and facilities, and formulateemergency plans to deal with power supply interruptions, such as by installing standby powersupply system to prevent sudden power failure.Rigorously monitor cold-chain logistics to guarantee the quality of temperature-sensitive productsin hot weather, strengthen inventory management, and prepare goods in advance to deal withpossible logistics delays.Continue to expand the online business, integrate online and offline businesses and maintain agood momentum of development to minimize the adverse impact of climate risk on the company’soffline business operations.
Precipitation
Heavy precipitation may lead to road flooding, traffic interruption orpotential safety hazards, and reduce consumers’ willingness to go outand buy. In addition, it may also lead to instability of supply or delayeddelivery, posing challenges to inventory management and customerservices.Continuous heavy rain may affect the sales of some seasonalcommodities, such as outdoor products for summer.
Nearly half of the company’s operation sitesare exposed to a high or extremely high risk ofprecipitation, especially certain operation siteslocated in the Yangtze River Delta, Chongqing cityand Fujian province.
Medium and
long-term
Operation
UpstreamDownstream
Increase inoperating expensesDecrease inoperating income
Geographical factors shall be fully considered when selecting sites for project development toavoid the severe impact of disasters on infrastructure.Check waterproof facilities to ensure that the in-store waterproof facilities are effective, and preparenecessary emergency supplies, such as waterproof sandbags, drainage equipment, emergencylighting, etc.By optimising inventory management, we can improve the inventory turnover rate while maintainingadequate inventory, to ensure the stability of the supply chain when the logistics and transportationis interrupted.Adjust marketing strategies, launch targeted promotional activities, and encourage consumers toplace orders online.
Acute risks
Coastalflooding
Coastal flooding may cause seawater to flood stores and damagestore facilities. Goods soaked in water may decay or get damaged,resulting in economic losses.Coastal flooding may cause delays or interruptions in porttransportation and logistics facilities, which may affect the supplychain, thus affecting sales of goods. Coastal flooding may damagepower and communication infrastructure, leading to power failuresand communication interruptions in stores, affecting their normaloperations.Muddy water, pollutants and pathogens left over after floods maypose risks to the health of employees and customers.
Some operations of the company located inHainan province, the GBA, the Yangtze RiverDelta, and the Bohai Rim region are exposed tohigh or extremely high risks.
Short, mediumand long-term
Operation
UpstreamDownstream
Increase inoperating expenses
Flood levees shall be built around stores and the threshold shall be raised to reduce the possibilityof seawater flooding. Sandbags, waterproof baffles and other materials shall be prepared for rapiddeployment in case of floods.Develop a detailed emergency response plan, including employee evacuation, customer evacuation,goods transfer and other processes, and conduct regular drills to ensure that employees arefamiliar with the emergency process.By diversifying the supply chain, we avoid heavy dependence on a single supply channel andimprove the flexibility of the supply chain.Adjust the inventory strategy, avoid overstocking high-risk goods, and take appropriate moisture-proof and mold-resistant measures for goods that are vulnerable to floods.
Typhoons
Typhoons may blow down trees or billboards, causing damage to theexternal structure of duty-free stores and threatening the safety ofthese stores. Typhoons often bring heavy rainfall, which may lead tothe flooding of roads and surrounding areas, thus affecting the safeaccess to stores of customers and employees and leading to businessinterruption. Typhoons may affect the logistics system, leading tosupply chain interruptions, and delays in goods replenishment,affecting store inventory and sales.
Some operations of the company located inHainan province, Fujian province, the GBA and theYangtze River Delta are exposed to a very highlevel of typhoon risk. Under the high emissionsscenario, the number of high-risk operationsslightly increases.
Short, mediumand long-term
OperationIncrease in
operating expensesDecrease inoperating income
Pay close attention to the forecast and early warning information, follow the weather forecast, andmake timely adjustments to the store operating plan according to the extreme weather forecast.Strengthen the maintenance and inspection of the store structure, and fix and reinforce it whennecessary to ensure the structure is firm enough to withstand strong winds.Establish stable cooperation with suppliers to ensure timely replenishment of goods even when thesupply chain is interrupted.Strengthen the safety training for employees to improve their awareness of and ability to cope withtyphoons.
Wildfires
The actual losses caused by wildfires may increase additional costs ofmaintenance.The smoke and particles generated by wildfire will seriously affect theair quality, resulting in reduced visibility and posing a threat to thehealth of employees, and that may affect the shopping experience ofcustomers, leading to reduced passenger flow.Wildfires may lead to the blocked roads or traffic congestion, makingit difficult for customers and employees to access the dutyfree stores.If a wildfire spreads to the nearby airport or port, it may affect thesupply chain and logistics of duty-free stores.
Some operations in Hainan province, Heilongjiangprovince, Jilin province, Anhui province areexposed to high risk.
Short, mediumand long-term
OperationDownstream
Increase inoperating expensesDecrease inoperating income
Establish a wildfire monitoring system to keep abreast of the fire development, take preventivemeasures in advance to ensure the safety of employees and customers.
Transition risk impact assessment and response:
Risk category
Policy and legal risksTechnology risk
Market riskReputation riskDescription
National and local climate related polices may be tightened(such as the carbon price mechanism, stricter carbonemission compliance requirements and informationdisclosure requirements), which may increase the company’smanagement inputs and costs, and may put the companyunder regulatory pressure without the timely improvedcompliance of management.
Given the synergistic effect of information technology andenergy technology, during our transition towards lowercarbon and greener operations, the green, innovative andintelligent management requirements in supply chain (includingtransportation and packaging links) and the operationalmaintenance requirements of online business will increase ourtechnology costs.
As consumers become increasingly aware oflower-carbon alternatives and environmentalprotection, they will opt for more environmentallyfriendly products, which will reduce the demandfor traditional products and present relatedmarket 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 stableplatform, affecting brand reputation and marketshare.
Stakeholders are increasingly concerned aboutclimate-related issues, and we may suffer fromreputation risk if we fail to meet stakeholderexpectations or if we engage in any behaviour thatviolates relevant laws and regulations.Impact cycleMedium and long-termShort, medium and long-term
Short, medium and long-termShort, mediumShort, medium and long-termScope of impactOperationOperation
DownstreamDownstreamOperationPotential financial impactIncrease in operating expensesIncrease in asset investment
Decrease in operating incomeDecrease in operating incomeIncrease in operating expenses
Strategies, mitigation andadaptation measures
The company is continuously monitoring the introductionand updating of relevant policies and regulations, and westudy implementation requirements as they are released andformulate relevant measures on time.The company is developing the “Work Plan for Implementingthe Spirit of President Xi Jinping’s Important Speech onthe Construction of an Ecological Civilisation and ‘CarbonPeaking and Carbon Neutrality’”. In addition, we aresteadfastly promoting the construction of an ecologicalcivilisation as we work to build a world-class green tourismretailer and pursue high-quality green development.
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 timelymanner and meet their needs for environmentallyfriendly products.
We continued to convey “Green CTG DUTY-FREE” concept to the mass public throughmedia channels 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 implementationtasks to continuously improve the quality of thecompany’s ESG disclosure, while enhancing ourcommunication with stakeholders via regular releaseof ESG reports and other methods to disclose ourefforts and achievements.Climate opportunity impact assessment and response:
AreaDescriptionImpact cycleScope of impactPotential financial impact
Strategies, mitigation and adaptation measures
Thecompany’soperations
Build climate resilient infrastructure
Short, medium and long-
term
OperationDecrease in operating expenses
The construction of infrastructure with better climate resilience can help defend against climate disasters, make full use of natural resources, and efficientlysave energy and reduce emissions. For details, please refer to “Conserving Energy and Reducing Carbon throughout the Entire Building Process”.Products andservices
Collaborate with brand partners to promote
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 products to meet theirconsumption 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 provide consumers withmore convenient, integrated services covering on-line and off-line channels.
Supply Chain
Promote green logistics & packagingShort and medium-termUpstreamDecrease in operating expenses
We have adhered to the use of recyclable and biodegradable green packaging, have proactively promoted the automatic and intelligent upgrading ofpackaging, 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 the life cycle ofpackaging materials and improve the overall utilisation efficiency of resources.Optimise freight transportMedium and long-termUpstreamDecrease in operating expenses
Compared with air transport, ocean transport gives off less carbon emissions, and provides a higher efficiency in energy conservation and emissionsreductions. Therefore, we have worked with brands to gradually increase the proportion of sea transportation during the procurement and transportationprocess.Promote the use of new energy tools
Short, medium and long-
term
UpstreamDecrease in operating expenses
We have vigorously promoted the use of clean energy equipment and made full use of electric-powered forklift trucks to replace traditional fuelled ones, soas to reduce carbon emissions and environmental pollution.
Principles of GovernanceProsperityPeoplePlanet
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 as the carbon price mechanism, stricter carbonemission compliance requirements and informationdisclosure requirements), which may increase the company’smanagement inputs and costs, and may put the companyunder regulatory pressure without the timely improvedcompliance of management.
Given the synergistic effect of information technology andenergy technology, during our transition towards lowercarbon and greener operations, the green, innovative andintelligent management requirements in supply chain (includingtransportation and packaging links) and the operationalmaintenance requirements of online business will increase ourtechnology costs.
As consumers become increasingly aware oflower-carbon alternatives and environmentalprotection, they will opt for more environmentallyfriendly products, which will reduce the demandfor traditional products and present relatedmarket 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 stableplatform, affecting brand reputation and marketshare.
Stakeholders are increasingly concerned aboutclimate-related issues, and we may suffer fromreputation risk if we fail to meet stakeholderexpectations or if we engage in any behaviour thatviolates relevant laws and regulations.
Impact cycleMedium and long-termShort, medium and long-termShort, medium and long-termShort, mediumShort, medium and long-term
Scope of impactOperationOperationDownstreamDownstreamOperation
Potential financial impactIncrease in operating expensesIncrease in asset investmentDecrease in operating incomeDecrease in operating incomeIncrease in operating expenses
Strategies, mitigation and
adaptation measures
The company is continuously monitoring the introductionand updating of relevant policies and regulations, and westudy implementation requirements as they are released andformulate relevant measures on time.The company is developing the “Work Plan for Implementingthe Spirit of President Xi Jinping’s Important Speech onthe Construction of an Ecological Civilisation and ‘CarbonPeaking and Carbon Neutrality’”. In addition, we aresteadfastly promoting the construction of an ecologicalcivilisation as we work to build a world-class green tourismretailer and pursue high-quality green development.
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 timelymanner and meet their needs for environmentallyfriendly products.
We continued to convey “Green CTG DUTY-FREE” concept to the mass public throughmedia channels 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 implementationtasks to continuously improve the quality of thecompany’s ESG disclosure, while enhancing ourcommunication with stakeholders via regular releaseof ESG reports and other methods to disclose ourefforts and achievements.
Climate opportunity impact assessment and response:
AreaDescriptionImpact cycleScope of impactPotential financial impactStrategies, mitigation and adaptation measures
Thecompany’soperations
Build climate resilient infrastructure
Short, medium and long-
term
OperationDecrease in operating expenses
The construction of infrastructure with better climate resilience can help defend against climate disasters, make full use of natural resources, and efficientlysave energy and reduce emissions. For details, please refer to “Conserving Energy and Reducing Carbon throughout the Entire Building Process”.
Products andservices
Collaborate with brand partners to promote
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 products to meet theirconsumption 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 provide consumers withmore convenient, integrated services covering on-line and off-line channels.
Supply Chain
Promote green logistics & packagingShort and medium-termUpstreamDecrease in operating expenses
We have adhered to the use of recyclable and biodegradable green packaging, have proactively promoted the automatic and intelligent upgrading ofpackaging, 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 the life cycle ofpackaging materials and improve the overall utilisation efficiency of resources.
Optimise freight transportMedium and long-termUpstreamDecrease in operating expenses
Compared with air transport, ocean transport gives off less carbon emissions, and provides a higher efficiency in energy conservation and emissionsreductions. Therefore, we have worked with brands to gradually increase the proportion of sea transportation during the procurement and transportationprocess.
Promote the use of new energy tools
Short, medium and long-
term
UpstreamDecrease in operating expenses
We have vigorously promoted the use of clean energy equipment and made full use of electric-powered forklift trucks to replace traditional fuelled ones, soas to reduce carbon emissions and environmental pollution.
▍Impact, Risk and Opportunity ManagementWe have incorporated climate change risks into our overall riskmanagement process. Please refer to “Complying with CommercialEthics to Reinforce Internal Control Compliance” for the riskmanagement process.We regularly monitor the development trends of climate risk,analyse the impact of risk on the company’s operations and supplychain, and take the initiative in developing mitigation and adaptationmeasures to improve the company’s resilience and adaptabilityto potential climate uncertainty in the future. To strengthen ourability to monitor climate-related impacts, all subsidiaries of thecompany intensified collaboration with meteorological authoritiesto obtain real-time disaster weather alerts and initiate timelydefensive and emergency responses. Dedicated personnel monitorrainfall and flood conditions, analyse potential risks to operationalsafety, issue early warnings, and implement pre-emptive mitigationmeasures. During extreme weather events such as floods, thesenior management of subsidiaries lead on-site inspections andoperations to identify risks, enforce emergency protocols, andensure rigorous implementation of flood season safety measures.Subsidiaries continuously refine their emergency response plansfor typhoons and floods, establish specialised rescue teams, andconduct regular disaster preparedness training and drills, with aview to enhancing their emergency support capabilities. Employeesreceive training in natural disaster prevention, risk avoidance, self-rescue, and mutual aid to improve their awareness and responseskills. Emergency supplies, including sandbags, pumps, torches,drinking water, and non-perishable food, are stockpiled to ensurethey can be rapidly deployed during any crisis. At the same time, allunits enforce rosters for 24/7 duties for critical roles and leadershipoversight during summer and flood seasons, ensuring uninterruptedcommunication and immediate reporting of emergencies.To address climate-related risks, we use advanced constructionmethodologies. For recent projects in Haikou and Sanya, HainanProvince – both typhoon-prone regions with maximum historicalwind speeds of grade 17 – we have integrated cutting-edgeengineering solutions.The design of the Haikou International Duty-Free ShoppingComplex incorporates advanced seismic damping technologies to
address issues arising from high seismic intensity, large structures,and irregular geometry. We also use structural analysis software(PKPM and midas Gen) and verification tools (Sausage andAbaqus) that meet international standards, and we have enlisteddomestic structural design experts to conduct rigorous reviews toensure safety, reliability, cost efficiency, and architectural feasibility.In foundation design, load-bearing tests were conducted for anti-floating anchor rods to balance safety and economy.The design of the Haikou International Duty-Free ShoppingComplex, the Sanya Regent Hotel Phase 1 project, and thecompany’s office building in Haikou, which are classified asirregular super high-rise structures, have undergone government-mandated seismic reviews conducted by national experts toguarantee their structural integrity.In addition, wind-induced vibration analyses and wind tunnelpressure simulations were conducted for the Haikou Duty-FreeShopping Complex, Sanya Duty-Free Shopping Complex Block C,and the Sanya Regent Hotel Phase 1 project to validate typhoonresistance and inform the design of their facades. The wind tunneltests replicated local climatic airflow patterns to assess andoptimise the buildings’ resilience against extreme weather, andensure the safety of main structures and enclosures. Structural andfacade reinforcements were applied to wind load-sensitive areasto enhance safety. For the Sanya Regent Hotel’s multi-platformdesign, the indoor pedestrian wind environment was assessed toenhance architectural quality, usability, and the guest experience.The design of the Haikou International Duty-Free ShoppingComplex, which has been operating since 2022, achieved a 15%reduction in steel usage compared to similar projects throughoptimised structural design, balancing functionality, safety, andlow-carbon principles. The building withstood Super TyphoonCapricorn in 2024, validating its robustness.The Sanya Regent Hotel Phase 1 (under construction) hasundergone wind engineering expert reviews and other site-specificanalyses. Reinforced concrete was used for the main tower’s corestructure, reducing steel consumption by about 45% and resultingin total cost savings of over CNY120 million.
▍Metrics and Targets
Metrics related to climate change response include energyconsumption and the resulting GHG emissions. Please refer to“Green and Low-Carbon Operations for a Better Life” for specificdata during the reporting period. As for green buildings as of theend of the reporting period, please refer to “Conserving Energy andReducing Carbon throughout the Entire Building Process”. Pleaserefer to “ESG Strategy: Clarifying Key Priorities” for relevant targets.
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 ourgovernance, 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.
Principles of GovernanceProsperityPeoplePlanet
The company prioritises new quality productive forces, with a view to drive sustainable development through innovation and circulareconomy initiatives.▍Circular Economy InitiativesThe company actively implements circular economy principles, adopting concrete measures in resource recycling, process transformation,and technological innovation.
Focusing on New Quality Productive Forces to Develop a Circular Economy
Green TransportationWe strive to optimise the loading efficiency of logistics vehicles tominimise resource waste. To this end, the company has deployedan advanced logistics transportation management system thatintelligently analyses optimal loading plans based on real-timeorder data. Furthermore, we have adjusted our policy to allowmixed-load transportation of duty-free goods and non-dutiableitems, eliminating mandatory separate shipments and ensuringeach vehicle achieves maximum loading efficiency. By reducingempty runs and partial loads, we are able to effectively lower fuelconsumption and carbon emissions. Additionally, we conductregular training for drivers and dispatchers to enhance their skillsin respect of efficient transportation and ensure optimal resourceutilisation for each delivery.In distribution, we actively promote efforts to replace traditionalsingle-use cardboard boxes with reusable plastic crates. Thesedurable crates, which are designed to be used for multiple cycles,significantly reduce demand for new boxes and waste generation.We have also established a robust crate recovery network toensure timely collection and reuse of crates after each delivery.Our logistics department facilitates the circular use of woodenpallets. When goods arrive at our warehouse, the used pallets areproperly kept and incorporated into our recycling system. Afterbeing unloaded, the pallets are stored, inspected, and cleanedbefore being reused in subsequent warehousing operations.This approach eliminates the need for purchases of new pallets,reduces costs, and minimises resource consumption.Furthermore, the Haikou International Duty-Free ShoppingComplex aligned with the call to develop a low-altitude economy byinnovatively adopting drone delivery for duty-free goods. Departingfrom the complex, drones can reach the Haikou Railway SouthPort Terminal, located 1 kilometre away, in only 1 minute and 24seconds, reducing transportation costs by nearly 30% and cuttingdelivery times from 20 minutes to 3 minutes.
Green Packaging
We have formulated unified environmental protection policiesand guidelines, and adhere to the philosophy of “responsiblepackaging” and carries out green packaging actions:
We respond to the national “plastic restriction” policies. Ourcompany rigorously implement plastic reduction and prohibitionmeasures. The company prohibits the purchase and use ofplastic bags and utensils listed in the banned plastics catalogue.We educate customers on reducing plastic use and promotealternatives. The company’s stores in Hainan and its duty-freestores in major airports all provide paper shopping bags for free,other packaging bags are made of biodegradable materials asrequired by environmental protection regulations. In 2024, thecompany provided more than 10.62 million shopping bags that metenvironmental protection requirements and provided 60.53 millionshopping bags that met environmental requirements in the pastthree years. The company effectively reduced the generation ofnon-degradable plastic waste.In compliance with the Hainan Special Economic Zone Regulationson Prohibiting Non-Degradable Disposable Plastic Products, allHainan subsidiaries exclusively use 100% biodegradable plasticbags. Meanwhile, Sunrise Shanghai strictly adheres to internationalaviation standards for duty-free packaging, uses certified sealedbags and strives to increase product capacity per bag to reducecosts.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.Reduce the packaging materials used. To avoid resource wasteand excessive packaging, suppliers are required by the companyto deliver their goods directly to their destination, skipping anyunpacking and repacking procedures needed during transportation.Our duty-free stores use sealing bags that meet internationalstandards by strictly following the duty-free packaging requirementsof International Aviation. We also try to put all goods into oneshopping bag of an appropriate size, to make it easy for customersto carry around, practising the principles of environmentalprotection and resource conservation.
Establish a materials recovery system. The company has alsoestablished a system to recycle waste materials, extend thelife cycle of packaging materials and improve the utilisation ofresources. For example, the company recycles cartons used duringthe logistics process and reuses them as containers on storageshelves, alternative turnover boxes during transportation, andpacking boxes for the transfer of outbound goods, so as to reducethe quantity of newly purchased cartons.Promote packaging automation and intelligent upgrades. Thecompany uses single-sheet receipts and slim tapes into thelogistics chain, and explores the use of tape-free cartons at theend of the logistics chain. Tape-free cartons are sealed entirelyphysically, and they also allow consumers to feel that they areparticipating in environmental protection initiatives during theunpacking process. By making this change, we hope to spreadgreen consumption among large numbers of consumers.The company insists on combining publicity with inspection topromote the implementation of a green philosophy. Stores activelypopularise the knowledge of plastic prohibition and restriction tocustomers, and guide them on how to implement plastic reductionand waste classification. Kindly reminders are sent to customerswhen they pick up goods, to encourage them use their own canvasbags or backpacks, and to discourage misuse of environment-friendly paper shopping bags. The company has set up adedicated team to carry out occasional inspections on prohibitedplastic items in the Hainan area. Once identified, items listed in theprohibited plastic item catalogue will be sealed up.
▼ Air column bags have been replaced with honeycomb paper
▼Open-top cartons have been replaced with tear-open designs to reduce
adhesive tape usage
We cooperate with subordinate companies and stores to jointlyexplore best practices in green packaging, including in respect ofpackaging material selection, packaging process optimisation andpackaging waste management. We provide training and supportto strengthen subordinate companies’ implementation capabilitiesand foster the development of sustainable packaging solutions.Through this cooperation, the company works alongside itssubordinate companies and stores to contribute to environmentalprotection and advance efforts around green packaging.
Implementation plan:
1 Collect, classify and reuse supplier pallets and cartons;2 Improve the upstream and downstream information system for the supplychain to reduce paper usage;3 Purchase only environmentally friendly, biodegradable and recyclable
packaging materials;4 Ensure that logistics tools meet the requirements for recycling.
Current Status of Packaging Material Usage
MetricsTier 2 metricsUnit2024
Total amount of packaging materials used by the company/Ton505.23Total amount of packaging materials used by the companyin unit operating income
/Ton/CNY10,0000.009Procurement quantity of packaging materials by category
PaperTon404.13
BoardTon0
PlasticTon101.11
GlassTon0
MetalTon0Procurement quantity of packaging materials that wererecyclable/non-recyclable
RecyclableTon387.12
Non-recyclableTon99.51Procurement quantity of packaging materials that werereusable/non-reusable
ReusableTon452.98
Non-reusableTon45.40
The proportion of degradable plastic packaging of the company’s plastic packaging materials are 100%.
We set specific goals:
No new pallet purchases; eliminate
single-use storage containers;
Mandate environmentally friendly,degradable, and recyclablematerials.
Principles of GovernanceProsperityPeoplePlanet
Innovation Empowers Energy Conservation and
Consumption Reduction
▍Innovation-Driven Development
The company prioritises scientific and technological innovation as a cornerstone of its development strategy, positioning it as a core driver ofhigh-quality growth.
▼The company’s Duty-Freeand Duty-Paid OmnichannelMembership Integration andManagement EnhancementProject received a Merit Awardat the same competition▼The company’s cdf Data CentrePlatform won the Bronze Awardat the 18th “Revitalisation Cup”National Youth Vocational SkillsCompetition (Innovation andEfficiency Competition)
Innovation Empowers Digital Transformation
Adhering to an innovation-driven philosophy, the company iscommitted to vigorously advancing technological innovation,increasing R&D investment, and applying cutting-edge technologiessuch as 5G, IoT, robotics, big data, and AR/VR to enhanceoperational efficiency and digital capabilities across all businesssegments. The company participates in the State-owned AssetsSupervision and Administration Commission’s (SASAC) InnovationConsortium project; and under this initiative, we are leading the firstlarge-scale big data platform research initiative for China’s duty-free industry. In 2024, the company achieved remarkable successin technological innovation.At the Sanya Downtown Store, we have implemented systemsincluding the customs declaration system, the warehousemanagement system (WMS), the transportation managementsystem, the GPS tracking system, and the order sorting/pickupsystem. With these tools, we can engage in real-time datacollection, dynamically analyse big data and gain end-to-endoperational visibility, allowing us to swiftly identify and resolveanomalies.
Virtualisation andcloud computing:
We use virtualisation technology to virtualise servers andstorage devices, improving the utilisation efficiency ofhardware resources and reducing their energy consumptionlevels. We have also migrated part of the workload ontocloud platforms to share resources and for better scalability,while avoiding energy wastage caused by excessiveequipment procurement.Green data
centreconstruction:
We have optimised the design and operation of data centresto reduce their energy consumption through the adoption ofefficient servers, energy-saving air-conditioning systems incomputer rooms, and green cooling technologies. We alsouse renewable energy, such as solar and wind energy, topower data centres and reduce carbon emissions.
Remote working
and videoconferencing:
We promote remote working and video conferences toreduce commuting time and business travel for our people,leading to a reduction in energy consumption and carbonemissions. With informatisation tools and platforms, remotecollaboration and communication between staff can beachieved that improve work efficiency and save energy.
Dataoptimisation and
compression:
We reduce the energy required for data storage andtransmission through data compression and optimisation.Data compression algorithms, de-duplication, andcompression technologies are used to reduce the demandfor, and energy consumed by, storage devices.
Innovation Empowers OperationsBy deploying equipment to collect data regarding product weightand volume, the company has built a foundational database thatwill support future optimisations to operations. Innovation Empowers Supply ChainsBy adopting electronic smart locks, we can monitor logisticsvehicles in real time. Alerts are triggered immediately for anomaliessuch as unauthorised stops or tampering, enabling the companyto quickly respond to safeguard goods and determine whetheremergency measures should be taken.The Sanya Downtown Store recycles supplier delivery cartonsbased on their size and composition and reuses them for storage,transport, and repackaging. Through these efforts, we are ableto reduce single-use carton purchases by over 600,000 unitsannually, preserving nearly 20,000 trees. Meanwhile, by reusingsupplier pallets, the company reduced purchases of new pallets by6,000 units, saving nearly 300 trees. By establishing the upstreamand downstream information system for the supply chain, thecompany has become more paperless, and digital supply chainsystems have reduced paper usage. Using these tools, the SanyaDowntown Store is saving 1.8 million sheets of A4 paper annually.We have contracted with a dedicated recyclable materials serviceprovider to recover packaging materials, including cardboard andplastic pallets.Fingerprint locks and AI facial recognition have replaced paper-based inventory logs, further promoting paperless operations.
The company continues to improve the four key capabilities of “green building, green warehousing, green duty-free complexes, and greenconsumption”, and promote green and low-carbon production and lifestyles.Green and Low-Carbon Operations for a Better Life
▍Environmental Protection and Standardised OperationsIn accordance with the Environmental Protection Law, the Law on Prevention and Control of Atmospheric Pollution, the Law on Preventionand Control of Water Pollution, the Law on Prevention and Control of Environmental Pollution Caused by Solid Wastes, the EnergyConservation Law of the People’s Republic of China and other Chinese laws and regulations, as well as the Measures for the Supervisionand Administration of Energy Conservation and Ecological Environmental Protection at Chinese Central State-owned Enterprises, thecompany has formulated the “Administrative Measures on Energy Conservation and Ecological Environmental Protection”, which stipulatesthe strict control of pollutant discharges and the prohibition of the arbitrary discarding, stockpiling, and dumping of solid waste, as a move toavoid environmental pollution.During the reporting year, the company had no cases where it acted against the laws and regulations on energy conservation andenvironmental protection, nor any cases where it was punished or criticised by environmental protection authorities.Reducing Our Impact on the Environment and Natural ResourcesTo reduce the significant impact of our activities on the environment and natural resources and promote resource recycling, we haveconstructed green buildings and launched sustainable concept stores, actively applying prefabricated buildings and recyclable materials toreduce carbon emissions during the construction process.The company has signed “Responsibility Letters for Achieving Safety Production, Energy Conservation and Environmental Protection Goals”(the “Letters”) with all departments and subsidiaries, to resolutely reduce and prevent potential contamination during the construction,production, and operating process.Emissions ManagementThe company’s categories of emissions include greenhouse gas (GHG) emissions, exhaust gases, wastewater, and solid waste. In termsof emissions management, the company attaches importance to controlling exhaust gases and GHG emissions, and takes up emissionsreduction measures to improve air quality. For wastewater and soil management, the company is committed to protecting water andsoil resources in accordance with relevant standards by taking appropriate treatment measures to meet the requirements for dischargedwastewater.For solid waste management, the company is strongly against dumping, stacking, and discharge of waste without permission, and performsits duties in terms of source reduction and classification of solid waste as required by law. It has established compliant waste storageprocesses and works with qualified third parties for waste disposal under the laws and regulations to prevent environmental contamination.As for pollutant emissions, it has established standardised pre-treatment facilities such as sedimentation tanks, septic tanks and oilseparators, which are subject to regular inspection and maintenance to ensure the compliant emissions. For recyclable waste such ascartons, subsidiaries implemented the “Waste Cardboard Management Regulations” to standardise disposal. CDFI stores and warehousesestablished recycling systems for cardboard and packaging materials to boost paper reuse.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 Downtown Store introduced P-Life eco-material shopping bags (self-degrading)to comply with new regulations on disposable plastic released by the Hong Kong government that were effective from 22 April. Our one-person stores in Macao promoted paperless operations and eco-paper bags (no plastic). Meanwhile, the Shenzhen Supply Chain Companyeliminated VIP-specific packaging to curb the excess use of packaging materials.
Principles of GovernanceProsperityPeoplePlanet
Backfills topsoildug out during thedevelopment andconstruction processas environmentalcompensation.
Prefers local plantsfor landscaping toreduce the impact onthe environment andecology.
The quantity of waste generated by the company in 2024 was as follows:
MetricsUnit2024Tonerkg113Selenium drumkg5
▍Green Operations and Low-carbon Living
● Governance
The company has issued the “Administrative Measures on Energy Conservation and Ecological Environmental Protection” and the “ActionPlan for Carbon Peaking and Carbon Neutrality”, and has set up the “Energy Conservation and Environmental Protection Leadership Group”and the “Carbon Peaking and Carbon Neutrality Leadership Group” led by heads of the company. These have put forward managementrequirements regarding procurement, production & operations, green buildings, green logistics, the promotion of green consumption andthe implementation of a green office and a lowcarbon lifestyle. The company has also improved the rewards and punishment mechanismfor energy conservation and environmental protection, and organised the publicity, implementation, training and assessment of varioussystems and action plans, so as to solidly promote the systematisation, institutionalisation and standardisation of energy conservation andenvironmental protection work.
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.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,
For example, Sanya is located within a tropical marineand monsoon climate zone with high temperatures anda relatively high humidity all the year round. This makes ithome to diversified biological species, and helps with theshaping of its healthy, benign, and sustainable ecosystem.During the development and construction of the SanyaInternational Duty-Free Shopping Complex Project, we paidattention to the protection of the surrounding ecologicalenvironment and biodiversity, and adopted various greenconstruction technical measures to minimise the impact ofthe Project on the ecological environment and biodiversity,such as enclosure, noise control, dust control, etc..
Green Office and Low-Carbon Operations
● Strategy, Management of impacts, risks and opportunities
We are focused on implementing the “carbon peaking and carbon neutrality” goals to promote our all-round energy-saving andenvironmental protection initiatives. We also actively build upon our management methods and strengthen our green operations andmanagement capabilities, as part of our continuous efforts to promote energy utilisation efficiency and improve the energy conservation andutilisation of our commercial complexes and duty-free stores.
We focus on improving the management of energy conservation and green operations by controlling energy and water consumptionaccording to the optimal operating strategy, including:
We fully promote garbage classification. For example, SanyaInternational Duty-Free Shopping Complex, Haikou International Duty-Free Shopping Complex are equipped with independent domesticgarbage rooms and kitchen waste refrigerators to facilitate garbageclassification. Caterers in these shopping malls are also required toclassify kitchen garbage in strict accordance with relevant regulations,with cleaning staff arranged to guide customers on domestic garbageclassification. We have also signed waste recycling agreements andgarbage disposal agreements with qualified professional third partiesto ensure recycling and the safe disposal of solid wastes.We put green philosophy into practice by creating a favourableatmosphere for “anyone to make savings, in any scenario, at anytime”. For example, we organised subsidiaries to learn and implementthe spirit of President Xi Jinping’s important speeches and instructionsand his comments on carbon peaking and carbon neutrality, as partof our continuing efforts to further promote the transformation togreen and low-carbon development. We released the “Green andLow-Carbon Proposals” to encourage employees to lead the way incarrying out low-carbon and energy-saving practices and in conveyinggreen messages. Other measures include putting up signs aroundoffices to remind employees to turn off the lights and save waterand organising publicity campaigns and training sessions on energyconservation and environmental protection.
Saving Electricity
The temperature of air conditioners inoffices and dormitories shall be no lowerthan 26 °C in summer, shall be turned off20 minutes before leaving, and shall bepowered off if left unattended for a periodof time.Printers, computers, fans, water heaters,lighting and other power supplies shall beturned off before leaving the place of work(and be shifted to standby mode during non-office hours).Before the store opens, no lights more thanthose required for work routines shall beswitched on; electricity equipment to meetoperating needs shall only be turned on10 minutes before opening; all electricityequipment and lights shall be turned offafter the closure.We have established sound electricityconservation management systems andequipment operation procedures to reduceunnecessary office electricity equipment andnon-office electricity consumption.We have regular maintenance and energyaudits for HVAC systems, pumps, fans,elevators, and lighting, etc., to reduceenergy consumption.
We have installed induction water faucets in restrooms forwater saving purposes.Develop good habits and turn off the faucet after wateruse to prevent water from running to waste.Report spills, drips and leaks to the Engineering andProperty Management Department in a timely manner forrepair.
Saving Water
We strictly implement the Measures on Administration ofFuel Cards and Vehicles, and resolutely prohibit the misuseof company vehicles and excessive refuelling.We develop fuel-efficient driving trainings for fleet operators,strictly carry out daily maintenance, and smartly selectdriving routes.SavingGasoline
We promote a paperless office.We adopt e-tag and e-billboard to reduce paper usage.We adopt an office supplies procurement system to bringabout online integrated procurement. This system helpscentrally control procurement quantities and amounts, soas to improve procurement efficiency, cut expenses, andreduce waste.
Saving OfficeSupplies
Duty-free complexes are equipped with an IOC smart buildingintegrated management platform, which supports real time quantitativeanalysis of energy consumption data and indicators, and identificationof energy consumption abnormalities, to explore more energy savingopportunities and reduce energy consumption costs.We actively promote the application of energy-saving equipmentby installing energy-saving lighting, air conditioners, fans and otherequipment in all duty-free complexes and stores, while eliminatingequipment with high energy consumption, installing time controlswitches, and imposing strict limits on usage. We also maintain airconditioning systems on a regular basis to improve their energyefficiency.We focus on improving the management of energy conservationand green operations by controlling energy and water consumptionacross all duty-free complexes and stores according to the optimaloperating strategy. We also formulate classified management systemsand operating plans for equipment and facilities based on their actualconditions, define red lines for daily energy consumption, and carryout regular maintenance and statistical analysis on energy consumingequipment and facilities, as a means of reducing energy consumption.
Principles of GovernanceProsperityPeoplePlanet
The company continues to carry out the standardisation construction of energyconservation and environmental protection. In December 2024, CDFI passed itsenvironmental management system (ISO14001) audit, driving waste reduction, energyefficiency, and eco-standards across Hong Kong and Macau stores.▼
Environmental management system
(ISO14001) certificate
The company continues to promote green complex energy optimisation
In 2024, the company upgraded lighting, air conditioners, fans and other equipment for green complexes:
? Block C of Sanya International Duty-Free ShoppingComplex Installed timers to shorten HVAC operationhours; Energy saving renovations have also been carriedout for the lighting systems in public areas of, Block A andBlock B, we replaced T5 fluorescent tubes with LED strips(saving about 12,684 kWh/month);
? Sanya International Duty-Free Shopping
Complex formulated an operation strategyfor air conditioning fan equipment basedon weather temperature and passengerflow changes. We adjusted HVACschedules and temperature settings(from 21°C to 24-25°C for return airtemperature), cutting electricity use ofBlock A and Block B by 787,000 kWhcompared with 2023;
? Haikou International Duty-Free
Shopping Complex saved about15,500 kWh of electricity per monthby renovating the air source airconditioning return air outlet, installingaluminum buckle lights on the flyingladder, and installing radar inductioncontrollers in the parking lot andlogistics channel lighting systems;
? In 2024, Haikou International Duty-
Free Shopping Complex carried outthe renovation of logistics channelsand staircase lighting, installed radarsensors to achieve “lights off whenpeople leave”. During flight intervals,airport stores should promptly turn offnon-essential lighting facilities to reduceelectricity consumption;
? In August 2024, Haikou
Riyue Plaza Duty-Free Shopimplemented a multi splitair conditioning centralisedcontrol system, whichenabled centralised controlof air conditioning start andstop, real-time monitoringand analysis of energyconsumption, and dynamicadjustment of environmentaltemperature, further reducingenergy consumption;
? CDFG (Cambodia) Limited replacedall lighting facilities with LED lightingto reduce electricity consumption.A monitoring mechanism for theuse, maintenance, and procurementof office equipment had beenestablished, with regular evaluationsof equipment operation andperformance status, and approvalfor the replacement of high energyconsuming equipment. It alsoreplaced high fuel consumptionvehicles with those who have betterfuel saving performance;
? The under-construction
Haikou International Duty-FreeShopping Complex (Plots 1and 4) plans to install 2,500m? of solar photovoltaic panelson rooftops and bicycle shedcanopies, with a total installedcapacity of 635 kW. Scheduledfor full commissioning by 2026,the system is expected togenerate approximately 1,270MWh annually. Solar-generatedelectricity will prioritise internalconsumption, with surpluspower sold to grid operators.
? In collaboration with brand partners, the
company has integrated green designprinciples into shop and counter renovations,as well as exhibition stand construction, utilisingeco-friendly materials to support brands inobtaining LEED certification. These efforts aimto create consumer spaces that harmonisefashion with environmental sustainability,amplifying collective conservation impact.
Case study
Metrics and TargetsEnergy ConsumptionThe company mainly consumes electricity, natural gas, diesel, gasoline, and water during its daily operations. Our energy consumption,resource usage, greenhouse gas emission and intensity
in 2024 are shown in the table below:
MetricsUnit20242023ElectricityMWh85,810.2874,773.52Natural Gasm
562,061326,352DieselLitre143,182145,046GasolineLitre210,526203,336Comprehensive energy consumptiontce11,61710,026.57Comprehensive energy intensitytce/m
0.01620.0177
Water consumptionm
537,987391,373.54Water consumption intensitym
/m
0.750.69
Greenhouse Gas EmissionsOur greenhouse gas emissions
from energy use in 2024 are shown in the table below:
MetricsUnit20242023Total greenhouse gas emissionstCO
e28,54024,632Greenhouse gas emissions intensitytCO
e/m
0.040.04
Direct greenhouse gas emissions (Scope 1 emissions)
tCO
e2,6312,056Indirect greenhouse gas emissions (Scope 2 emissions)
tCO
e25,90922,576
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, Sunrise Shanghai and Sunrise China, which have already covered the majority of the company’s operating area and revenue. The company will graduallyexpand the statistical scope in the following years.
The statistic scope of natural gas, electricity, diesel, gasoline, and the resulting GHG emissions includes the building of company’s headquarters, Haikou International Duty-Free
Shopping Complex, Sanya International Duty-Free Shopping Complex, Sunrise Shanghai and Sunrise China, which have already covered the majority of the company’s operating areaand revenue. The company will gradually expand the statistical scope in the following years.
Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determined with reference to ① China EnergyStatistical Yearbook ② IPCC 2006.
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.
Principles of GovernanceProsperityPeoplePlanet
31 stores/counters had received
LEED certification, of which
Supporting brandsin obtaining LEED
certification
29 stores/counters
had received LEED Goldcertification and
2 stores/counters had
received LEED Silvercertification.
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-Free Shopping 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 ShoppingComplex received LEED Goldcertification.In April 2022, the Lanc?me counterat Sanya International Duty-FreeShopping Complex received LEED Goldcertification.In September 2022, the De Beers shop at Sanya InternationalDuty-Free Shopping Complex received LEED Gold certification.
In October 2022, the Balenciaga shop at Sanya InternationalDuty-Free Shopping Complex received LEED Goldcertification.
In January 2023, the Lanc?me shop at Haikou InternationalDuty-Free Shopping Complex received LEED Goldcertification.
In March 2023, the Helena Rubinstein shop at HaikouInternational Duty-Free Shopping Complex received LEEDGold certification.
In March 2023, the Kiehl’s shop at Haikou International Duty-Free Shopping Complex received LEED Gold certification.
By the end of 2024, the company had a total of
In March 2023, the YSL Beauté shop at Haikou InternationalDuty-Free Shopping Complex received LEED Gold certification.
In April 2023, the De Beers shop at Haikou International Duty-Free Shopping Complex received LEED Gold certification.
In May 2023, the Cartier shop at Haikou Meilan Airport Duty-Free Shop received LEED Gold certification.
In June 2023, the Balenciaga shop at Haikou InternationalDuty-Free Shopping Complex received LEED Gold certification.
In July 2023, the Cartier shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In July 2023, the YSL shop at Haikou International Duty-FreeShopping Complex received LEED Gold certification.
In January 2024, the Helena Rubinstein shop at SanyaDuty-Free Shopping Complex Block C received LEED Goldcertification.
In January 2024, the L’Oréal shop at Sanya Duty-Free ShoppingComplex Block C received LEED Gold certification.
In January 2024, the SAINT LAURENT shop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
In January 2024, the Prada Beauty shop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
Principles of GovernanceProsperityPeoplePlanet
In February 2024, the Armani shop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
In February 2024, the Maison Margiela shop at Sanya Duty-Free Shopping Complex Block C received LEED Goldcertification.
In March 2024, the Kiehl’s shop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
In April 2024, the Lanc?me shop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
In April 2024, the Prada Beauty shop at Haikou InternationalDuty-Free Shopping Complex received LEED Goldcertification.
In May 2024, the Shu uemura shop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
In April 2024, the SkinCeuticals shop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
In June 2024, the Prada shop at Haikou International Duty-Free Shopping Complex received LEED Gold certification.
In August 2024, the Valentinoshop at Sanya Duty-FreeShopping Complex Block C received LEED Gold certification.
In May 2022, the Van Cleef & Arpels shop at SanyaInternational Duty-Free Shopping Complex received LEEDSliver certification.
In July 2023, the Van Cleef & Arpels shop at HaikouInternational Duty-Free Shopping Complex received LEEDSliver certification.
Saving FoodThe company complies with the Anti-Food Waste Law and implements the spirit of President Xi Jinping’s important instructions andcomments on “firmly combating extravagancy in foods”, as well as the important requirements of the 20th National Congress of the ChineseCommunist Party on “advocating frugality and thrift in the whole society”. We improve our employees’ awareness of saving food by takingactions during daily meals in staff canteens.
? Prepare food in batches based on the number of staff to beserved as reported by each department, and offer smallerservings to prevent waste;? The staff meal is in a buffet form to encourage staff to onlytake the amount they need;? Offer mixed coarse-grains to enrich food variety and reducewaste;? Set up a tableware recycling desk to discourage food wasteand supervise the effective classification of leftover food;? Carry out anti-food waste awareness activities, for exampleSunrise Shanghai has established a dedicated team to savefood and combat food waste behaviours. The team helpsimprove diners’ food waste awareness through publicityactivities and by equipping canteens with dedicated staff toencourage good dining behaviours.In 2024, the total weight of food loss and waste generated
by the company was 101.89 tons
, the total amount of foodloss and waste used for alternative purposes was 28.89tons, the total amount of food discarded was 73 tons, andthe intensity of food loss and waste was 0.039 tons/person.
▍Green Transportation with Lower Emissions
▼
Certificate of Membership by
Transported Asset ProtectionAssociation (TAPA)
▼
Certificate of Membership by
World Cargo Alliance (WCA)
We are well aware of the synergistic effect of the supply chain and havecollaborated with brands to optimise freight modes, gradually increasethe proportion of ocean transportation in the procurement process. Ourcompany has also continued to strengthen communication and exchangeswith suppliers and relevant authorities in Hainan province, to expand thenumber of categories and products shipped by sea to reduce carbonemissions further. Our efforts in this area have received massive attentionand support from many brands supplier groups in the industry.With the goal of raising transportation efficiency and reducing energyconsumption in its transportation processes to facilitate the constructionof a green transportation system, and we have obtained the TAPA
andWCA
certifications.
In 2024, the scope of the company’s food loss and waste statistics only covers Sunrise Shanghai and the Haikou International Duty-Free Shopping Complex.
TAPA: Transported Asset Protection Association
WCA: World Cargo Alliance
? Put up posters advocating reducing leftover food, such as
“Clear Your Plate” in the eye-catching areas of canteens;
The National Development Plan for Comprehensive Transport Servicesduring the 14th Five-year Plan Period specifies accelerating theconstruction of a clean and low-carbon green transportation system byencouraging enterprises to adopt integrated, efficient, green, and low-carbon freight and logistics systems. The company acts as a role model inthe building of a green transportation system.We have vigorously promoted the use of clean energy equipment andmade full use of electric powered forklift trucks to replace traditional fuelledones, to reduce carbon emission and environmental pollution, at the endof the reporting period, the proportion of electric forklifts in the companyhad reached 100%.The company makes continuous efforts to build an advanced andappropriate warehousing system by combining warehouses scatteredacross key areas to form an integrated warehouse distribution centre,and by leveraging big data and intelligent route optimisation algorithmtechnology to coordinate transportation routes with improved logisticsefficiency for duty-free goods by sea, land and air. Such measures helpmaximise carrying capacity, thereby reducing the number of trips needed,the amount of energy consumed, and carbon emissions throughout thetransportation process. For long-distance transportation, the companyopts to ship by sea with relatively low carbon emissions per unit wherepossible. For short-distance land transportation, the company strictlyregulates the use of vehicles to ensure that they meet the standards foremissions in their operation regions.
Appendix
Glossary of TermsTermDefinitionCTG DUTY-FREE, the company,our company, we
refers toChina Tourism Group Duty Free Corporation Limited together with its af?liated companiesESG Report, the Report, thisReport
refers toThe Environmental, Social and Governance ReportThe reporting period, the currentyear
refers toFrom 1 January 2024 to 31 December 2024China 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.CDFIrefers 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-FreeShop
refers 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.Duty-free merchandiserefers toImported goods that are exempt from customs duties, value added tax (VAT) and consumption tax on
imports and domestically produced goods that are subject to tax rebates (VAT and consumption tax) thatare sold in duty-free shopsDuty-free storerefers toWith the approval of the General Administration of Customs, business units set up sales sites and
supervised warehouses for storing duty-free commodities in places approved by the State Council of thepeople’s Republic of China or its authorized departments to sell duty-free commodities to speci?ed salestargets
Appendix
TermDefinition
Offshore duty-free policyrefers toThe tax preference policy is to implement import duty-free shopping with limited value, limited quantity
and limited variety for passengers leaving the island by plane, train, or ship (excluding departures), makepayment in duty-free shops or approved online sales windows where the tax-free policy is implemented,and pick up goods from the island at designated areas of airports, railway stations and ports. The taxexemption policies for the island include customs duty, import VAT and consumption taxSASACrefers 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 ProtectionLaw
refers 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 Interestsof Consumers 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 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 AirPollution Law
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 ofEnvironmental Pollution Caused bySolid 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 ChinaProduct Quality Lawrefers toProduct Quality Law of the People’s Republic of China
Appendix
ESG Metrics
Environmental Performance Metrics
MetricsTier 2 metricsUnit2024
Resource usageElectricity
MWh85,810.28Natural Gas
m
562,061Diesel
Litre143,182Gasoline
Litre210,526Comprehensive energy consumptiontce11,617Comprehensive energy intensitytce/m
0.0162
Water consumptionm
537,987Water consumption intensitym
/m
0.75
Total amount of packaging materials used by the companyTon505.23Total amount of packaging materials used by the company inunit operating income
Ton/CNY10,0000.009
Procurement quantity of packaging materials by category
PaperTon404.13BoardTon
PlasticTon101.11GlassTon
MetalTon
Procurement quantity of packaging materials that wererecyclable/non-recyclable
RecyclableTon
387.12
Non-recyclableTon
99.51
Procurement quantity of packaging materials that werereusable/non-reusable
ReusableTon
452.98
Non-reusableTon
45.4
MetricsTier 2 metricsUnit2024
Climate ChangeTotal greenhouse gas emissions
tCO
e28,540Greenhouse gas emissions intensitytCO
e/m
0.04
Direct greenhouse gas emissions (Scope 1 emissions)
tCO
e2,631Indirect greenhouse gas emissions (Scope 2 emissions)
tCO
e25,909EmissionWaste
Tonerkg113kgkg5
Notes:
1. 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, 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.
2. The statistic scope of natural gas, electricity, diesel, gasoline, and the resulting GHG emissions includes the building of company’s headquarters, Haikou International Duty-
Free Shopping Complex, Sanya International Duty-Free Shopping Complex, Sunrise Shanghai and Sunrise China, which have already covered the majority of the company’soperating 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 determined with reference to
①ChinaEnergy Statistical Yearbook
②IPCC 2006.
4. Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which are determined with reference to the
Noticeon Reporting and Veri?cation Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025issued by the Ministry of Ecology and Environment ofChina.
Appendix
Social Performance MetricsMetricsTier 2 MetricsUnit2024HireTotal number of employeesPerson16,027The number of ethnic minority employeesPerson1,468The percentage of ethnic minority employees%9.16The percentage of ethnic minority employees in the management%4.55The number of foreign employeesPerson504The percentage of foreign employees%3.14The percentage of foreign employees in the management%0.91The number of physically challenged employeesPerson128Females in the Board of Directors and the Supervisory Committee%36.36Females in the management%36.36Females in the senior managerial roles%25Females in the middle managerial roles%37.25Share of women in management positions in revenue-generatingfunctions (e.g. sales) as % of all such managers
%36Total number of new employeesPerson1,905Internal hire rate%45.35Employee productivityCNY/Person376,911The number of employees by gender
FemalePerson6,775MalePerson9,252The number of employees by employee category
Senior managerial rolesPerson8Middle managerial rolesPerson102General employeesPerson15,917
The number of employees by age group
Over 60Person850-60Person42540-49Person1,79930-39Person6,67022-29Person6,871Below 22Person254
MetricsTier 2 MetricsUnit2024
The number of employees by region
North ChinaPerson2,184East ChinaPerson2,225South and central ChinaPerson9,767Northwest ChinaPerson40Southwest ChinaPerson307Northeast ChinaPerson238Hong Kong SAR, Macau SARand Taiwan region
Person727OverseasPerson539The number of new employees by gender
MalePerson725FemalePerson1,180The number of new employees by employee category
Senior managerial rolesPerson0Middle managerial rolesPerson4General employeesPerson1,901
The number of new employees by age group
Over 60Person050-60Person2040-49Person13130-39Person55822-29Person1,055Below 22Person141The number of new employees by ethnicity
Han ethnic groupPerson1,570Chinese ethnic minoritiesPerson194China’s Hong Kong SAR, MacauSAR, Taiwan region and overseas
Person141The number of new employees by nationality
Chinese nationalityPerson1,764Foreign nationalityPerson141
Appendix
MetricsTier 2 MetricsUnit2024Employee turnover rate by gender
Male%17.53Female%14.33Employee turnover rate by category
Senior managerial roles%25Middle managerial roles%5.88General employees%18.72
Employee turnover rate by age group
Over 60%52.9450-60%12.5340-49%6.9830-39%11.7322-29%19.23Below 22%48.58Employee turnover rate by geographical region
Chinese Mainland%18.14China’s Hong Kong SAR, MacauSAR and Taiwan region
%30.54Overseas%16.14Health and SafetyThe coverage of work-related injury insurance%100The total amount of work-related injury insurance expensesCNY10,00053.91Total expenses in operations safetyCNY10,0002,177Safety trainingsSession770Safety trainings participants10,000 People3.23Work-related fatalities
EmployeePerson0ContractorsPerson0The fatality rate of the company’s employeesdue to work-related injuries
%0Total number of work-related injury casesCase
Number of working days lost due to work-related injury
EmployeeDay0ContractorsDay0Lost-time injury frequency rate(per one million hours worked)
(LTIFR)
Employee%0Contractors%0
MetricsTier 2 MetricsUnit2024Training and DevelopmentThe total expenditure of employee training and development CNY10,000954.48Average cost of training and development per full-time employeeCNY/Person595.55Percentage 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 hours10,000 hours63.37Average training hours completed per employeeHour40.03Average training hours completed per employee by gender
MaleHour26.79FemaleHour36.58Average training hours completed per employee by category
Senior management
Hour142.45Middle managementHour75.05General employeeHour34.9Average training hours completed per employee by region
Chinese MainlandHour41.76Chinese Hong Kong SAR,Macau SAR and Taiwan region
Hour13.29OverseasHour14.27Supply Chain ManagementTotal number of brand partnersNumber631Number of brand partners by geographical region
Chinese MainlandNumber202Hong Kong SAR,Macau SAR and Taiwan region
Number140OverseasNumber289Total number of non-brand suppliersNumber3,392Number of non-brand suppliers by geographical region
Chinese MainlandNumber3,326Hong Kong SAR,Macau SAR and Taiwan region
Number0OverseasNumber66Classification of non-brand suppliersTotal number of Level I suppliersNumber219
Appendix
MetricsTier 2 MetricsUnit2024Product liabilityPercentage of the total number of products sold or shipped thatneed to be recalled for safety and wellness reasons
%0Total complaints receivedNumber76,546Average hours used to handle each complaintHour141.81As at the end of 2024, complaints handled as a proportion of totalcomplaints received during the year
%99.72Intellectual property rightsNumber of IPRs, such as trademarks andcopyrights at the end of 2024
Item72Number of IPRs, such as trademarks and copyrights during 2024Item42Number of valid patentsItem2Number of effective patents per CNY100 million of revenueItem/CNY100 million0.004Number of software programs per CNY100 million of revenueItem/CNY100 million0.127Community investmentTotal expenditure on rural revitalization
Free assistance fundsCNY10,0001,372Paid assistance fundsCNY10,00027.9Number of various assistance projects implementedNumber15Total amount of assist in introducing assistance fundsCNY10,000642Number of grassroots cadres trainedPerson497Number of champions in rural revitalisation andwealth creation trained
Person84Number of technicians trainedPerson562
Notes:
5. Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers * 100%;
6. Lost-time injury frequency rate (per one million hours worked) (LTIFR) = number of lost time injuries/total number of man-hours worked in the accounting period * 1,000,000
7. As far as the training courses organised by the company are concerned, there is no signi?cant difference for employees at different categories; however, the senior management
participated in more intense trainings subject to the requirement on the training hours in theRegulations on the Education and Training of Cadresissued by the CPC CentralCommittee.
Governance Performance Metrics
MetricsTier 2 MetricsUnit2024Anti-corruptionAnti-corruption trainings for employees
SessionsTime7Coverage%100Anti-corruption trainings for management
SessionsTime3Coverage%100DurationHour2Anti-corruption trainings for director and supervisor,including independent director
SessionsTime7Coverage%100
Appendix
IndexShanghai Stock Exchange Sustainability Report (Trial) IndexNumberTopicRelevant section in this report1Climate change tacklingAddressing Climate Change to Protect the Environment2Pollutant dischargeNo signi?cant relevance
3Waste disposalGreen 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 resourcesGreen and Low-Carbon Operations for a Better Life8Circular economyFocusing on New Quality Productive Forces to Develop a Circular Economy9Rural revitalizationMeeting our responsibilities in rural revitalisation10Contributions to the societyGreen Alliance: Joining Hands with Brands to Open a New Chapter
Engaging in Charity Initiatives to Act as a Responsible Corporate11Innovation-drivenFocusing on New Quality Productive Forces to Develop a Circular Economy12Ethics of science and technologyNo signi?cant relevance
13Supply chain securityRobust, Green and Intelligent Supply Chain14Equal treatment to small and medium-sized
enterprises
Robust Governance System for Long-term Stable Operations15Safety and quality of products and servicesUpholding Original Beliefs and Mission to Ensure Trusted Business Operations16Data security and customer privacy
protection
Complying with Commercial Ethics to Reinforce Internal Control Compliance17EmployeesEmployee Rights and Promoting Their Interests
Diversi?ed Training to Promote Staff Development
Operational Safety and Physical and Mental Health18Due diligenceCompliance Management
1119Communications with stakeholdersStakeholder Communication20Anti-commercial bribery and anti-corruptionBusiness Ethics21Anti – unfair competitionBusiness Ethics22Packaging material managementGreen and Low-Carbon Operations for a Better Life23Intellectual property protectionFocusing on New Quality Productive Forces to Develop a Circular Economy24Excellent service experienceUpholding Original Beliefs and Mission to Ensure Trusted Business Operations25Collaborating with brand partners to promote
environmental protection
Green Alliance: Joining Hands with Brands to Open a New ChapterNotes:
8. Neither the company nor its subsidiaries have been included in the list of enterprises that are legally required to disclose environmental information. This topic holds neither
?nancial materiality nor impact materiality.
9. The company’s operation activities have no signi?cant impact on the ecosystem and biodiversity, but we also take it into consideration for project development and construction,
and disclosed in the report.
10. The company does not engage in scienti?c research or technological development within ethics-sensitive domains; this topic is not applicable.
11. Due diligence regarding sustainability-related adverse impacts or risks is described in relevant issue-speci?c chapters.
131130Appendix
Disclosure of content
Location/NoteTier 1 MetricsTier 2 MetricsTier 3 Metrics
Climate Change
Greenhouse gasemission
Sources and types of GHGsGreen and Low-Carbon Operations for a Better LifeGHG emissions management
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessAddressing Climate Change to Protect the EnvironmentGreen 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
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessAddressing Climate Change to Protect the EnvironmentGreen and Low-Carbon Operations for a Better LifeClimate risk managementClimate risk management
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessCombatting the Typhoon with Determination and United EffortsAddressing Climate Change to Protect the EnvironmentGreen and Low-Carbon Operations for a Better LifeBiodiversity
Impacts of activities,products and services onbiodiversity
Impacts of activities, products andservices on biodiversity
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessGreen and Low-Carbon Operations for a Better Life
Resource andEnvironmentalManagement SystemMeasures
Low-carbon developmenttarget and strategicmeasures
Low-carbon development targetand strategic measures
ESG Strategy: Clarifying Key PrioritiesAddressing Climate Change to Protect the EnvironmentResource managementmeasures
Water utilisation managementGreen and Low-Carbon Operations for a Better LifeMaterial usage management
Focusing on New Quality Productive Forces to Develop a CircularEconomyGreen and Low-Carbon Operations for a Better LifeEnergy use and conservationmanagement
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessGreen and Low-Carbon Operations for a Better Life
Green initiatives andmeasures
Green technologies and recycling
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessAddressing Climate Change to Protect the EnvironmentFocusing on New Quality Productive Forces to Develop a CircularEconomyGreen and Low-Carbon Operations for a Better LifeGreen building Renovation
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessGreen office and operations
Addressing Climate Change to Protect the EnvironmentFocusing on New Quality Productive Forces to Develop a CircularEconomyGreen and Low-Carbon Operations for a Better LifeGreen procurement and greensupply chain management
Robust, Green and Intelligent Supply ChainFocusing on New Quality Productive Forces to Develop a CircularEconomyEnvironmental public welfareactivities
Green Alliance: Joining Hands with Brands to Open a NewChapterEngaging in Charity Initiatives to Act as a Responsible CorporateGreen and low-carboncertification
Environmental managementsystem certification
Green and Low-Carbon Operations for a Better LifeEnvironmental legalcompliance
Environmental emergencyresponse plan
Combatting the Typhoon with Determination and United Efforts
Operational Safety and Physical and Mental Health
Addressing Climate Change to Protect the Environment
ESG Metrics System for ESG Reports of Listed Companies Controlled by Central State-owned Enterprises IndexDisclosure of contentRelevant sectionBasic information of the Company and the ReportAbout this reportESG governanceESG STRATEGY: CLARIFYING KEY PRIORITIESESG risk and opportunitiesComplying with Commercial Ethics to Reinforce Internal Control ComplianceStakeholder engagementRobust Governance System for Long-term Stable OperationsMateriality assessmentRobust Governance System for Long-term Stable Operations
Disclosure of content
Location/NoteTier 1 MetricsTier 2 MetricsTier 3 MetricsEnvironmental Aspect indicators
ResourceConsumption
Water
Fresh water consumptionGreen and Low-Carbon Operations for a Better LifeRecycled water consumption
Conserving Energy and Reducing Carbon throughout the EntireBuilding ProcessIntensity 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 usage
Focusing on New Quality Productive Forces to Develop a CircularEconomyPackaging material lightweightand reduction
Focusing on New Quality Productive Forces to Develop a CircularEconomy
Pollution Control
Effluents
Wastewater discharge complianceGreen and Low-Carbon Operations for a Better LifeWastewater management andreduction measures
Green and Low-Carbon Operations for a Better LifeExhaustsExhaust emission compliance
Green and Low-Carbon Operations for a Better Life
Conserving Energy and Reducing Carbon throughout the Entire
Building ProcessSolid waste
Legal compliance of solid wastedisposal
Green and Low-Carbon Operations for a Better LifeGeneral industrial solid wastemanagement
Green and Low-Carbon Operations for a Better Life
133132Appendix
Disclosure of content
Location/NoteTier 1 MetricsTier 2 MetricsTier 3 Metrics
National strategicresponse
Taxes paymentTax Payment SituationRefer to the 2024 Annual Report or other corporate documents
Community building
Policies and Measures forParticipating in Local CommunityConstruction
Meeting our responsibilities in rural revitalisationWith a Dual Focus, Co-Creating a New Development BlueprintSailing with Momentum: A Decade of ExcellenceSetting the Industry Benchmark for High-quality DevelopmentEngaging in Charity Initiatives to Act as a Responsible CorporateContribution and Impact on theLocal Community
Meeting our responsibilities in rural revitalisationWith a Dual Focus, Co-Creating a New Development BlueprintSailing with Momentum: A Decade of ExcellenceSetting the Industry Benchmark for High-quality DevelopmentEngaging in Charity Initiatives to Act as a Responsible Corporate
Social welfare activities
Policies and Measures forParticipating in Social CharityActivities
Meeting our responsibilities in rural revitalisationEngaging in Charity Initiatives to Act as a Responsible CorporateInvestment and Effectiveness ofParticipating in Social CharityActivities
Meeting our responsibilities in rural revitalisationEngaging in Charity Initiatives to Act as a Responsible CorporateConstruction of AccessibleEnvironment
Upholding Original Beliefs and Mission to Ensure TrustedBusiness Operations
National strategicresponse
Industrial Transformation
Upholding Original Beliefs and Mission to Ensure TrustedBusiness OperationsSetting the Industry Benchmark for High-quality DevelopmentRural Revitalisation and RegionalCoordinated Development
Meeting our responsibilities in rural revitalisationWith a Dual Focus, Co-Creating a New Development BlueprintSetting the Industry Benchmark for High-quality DevelopmentBelt and Road Initiativeand Overseas Fulfillment ofResponsibilities
Setting the Industry Benchmark for High-quality DevelopmentIndustry Features and Other SocialResponsibility Fulfillment
Setting the Industry Benchmark for High-quality Development
Disclosure of content
Location/NoteTier 1 MetricsTier 2 MetricsTier 3 MetricsSocial aspect indicators
Employee rights
Employee RecruitmentAnd Employment
Corporate Recruitment Policy andImplementation
Employee Rights and Promoting Their InterestsEmployee StructureEmployee Rights and Promoting Their InterestsAvoiding Child Labor or ForcedLabor
Employee Rights and Promoting Their InterestsEmployee Compensationand Benefits
Compensation Philosophy andPolicy
Employee Rights and Promoting Their InterestsWorking Hours and Rest PeriodsEmployee Rights and Promoting Their InterestsCompensation and BenefitsSecurity
Employee Rights and Promoting Their InterestsEmployee DemocraticManagement
Employee Rights and Promoting Their InterestsEmployee Health andSafety
Occupational Health and SafetyManagement for Employees
Operational Safety and Physical and Mental HealthEmployee SafetyRisk Prevention and Control
Operational Safety and Physical and Mental HealthResponse to Safety Accidents andWork-related Injuries
Operational Safety and Physical and Mental HealthEmployee Care and Assistance
Employee Rights and Promoting Their Interests
Operational Safety and Physical and Mental HealthEmployee Developmentand Training
Employee Motivation andPromotion Policy
Diversified Training to Promote Staff DevelopmentEmployee Education and TrainingDiversified Training to Promote Staff DevelopmentCareer Planning and PositionChange Support for Employees
Diversified Training to Promote Staff DevelopmentEmployee SatisfactionEmployee TurnoverEmployee Rights and Promoting Their Interests
Product and ServiceManagement
Product Safety andQuality
Production Standard ManagementPolicies and Measures
Upholding Original Beliefs and Mission to Ensure Trusted
Business Operations
Operational Safety and Physical and Mental HealthQuality Management
Upholding Original Beliefs and Mission to Ensure Trusted
Business OperationsProduct Recall and Withdrawal
Upholding Original Beliefs and Mission to Ensure Trusted
Business OperationsNegative Events Related toProducts or Services
Upholding Original Beliefs and Mission to Ensure Trusted
Business OperationsCustomer Service &Advocacy
Customer Satisfaction
Upholding Original Beliefs and Mission to Ensure Trusted
Business OperationsCustomer Complaints andHandling
Upholding Original Beliefs and Mission to Ensure Trusted
Business OperationsCustomer Information and PrivacyProtection
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceR&D
R&D and Innovation ManagementSystem
Focusing on New Quality Productive Forces to Develop a Circular
EconomyInnovation Achievements
Focusing on New Quality Productive Forces to Develop a Circular
EconomyIntellectual Property Protection
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceSupply ChainSecurity andManagement
Management of Suppliers
Supplier Selection andManagement
Robust, Green and Intelligent Supply ChainNumber and Distribution ofSuppliers
Robust, Green and Intelligent Supply ChainSupply ChainManagement
Supply Chain ManagementPolicies and Measures
Robust, Green and Intelligent Supply ChainSupply Chain Security Assuranceand Emergency Plan
Robust, Green and Intelligent Supply Chain
135134Appendix
Disclosure of content
Location/NoteTier 1 MetricsTier 2 MetricsTier 3 MetricsTransparencyof informationdisclosure
Information disclosuresystem
Financial Information DisclosureRefer to the 2024 Annual Report or other corporate documentsNon-financial InformationDisclosure
2024 Environmental, Social and Governance ReportQuality of informationdisclosure
Regular Supervision, Audit,and Evaluation of All DisclosedInformation
Complying with Commercial Ethics to Reinforce Internal Control
Compliance
Compliance and RiskManagement
Compliance
Compliance Management System
Robust Governance System for Long-term Stable Operations
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceConstruction of ComplianceSystem
Robust Governance System for Long-term Stable Operations
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceSpecific Process of ComplianceReview
Robust Governance System for Long-term Stable Operations
Complying with Commercial Ethics to Reinforce Internal Control
Compliance
Risk management
Risk Identification and EarlyWarning
Robust Governance System for Long-term Stable Operations
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceRisk Control and Tracking
Robust Governance System for Long-term Stable Operations
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceRisk Reporting and Management
Robust Governance System for Long-term Stable Operations
Complying with Commercial Ethics to Reinforce Internal Control
Compliance
Disclosure of content
Location/NoteTier 1 MetricsTier 2 MetricsTier 3 MetricsGovernance Aspect indicators
Governance Strategyand OrganizationalStructure
Governance Strategiesand Processes
Governance Strategy Formulation
ESG Strategy: Clarifying Key PrioritiesRobust Governance System for Long-term Stable OperationsComplying with Commercial Ethics to Reinforce Internal ControlComplianceGovernance Strategy SupervisionProcess
ESG Strategy: Clarifying Key PrioritiesRobust Governance System for Long-term Stable OperationsComplying with Commercial Ethics to Reinforce Internal ControlComplianceGovernance Strategy Approvaland Review Process
Robust Governance System for Long-term Stable OperationsComplying with Commercial Ethics to Reinforce Internal ControlComplianceParty Building LeadershipRobust Governance System for Long-term Stable OperationsOrganisationalcomposition andfunctions
Ownership ResponsibilitiesRobust Governance System for Long-term Stable OperationsOrganisation Structure andFunctions of the Board ofDirectors, Supervisory Board, andManagement
Robust Governance System for Long-term Stable OperationsAppointment Procedures andComposition of the Board ofDirectors, Supervisory Board, andManagement
Refer to the 2024 Annual Report or other corporate documentsCompensationmanagement
Compensation Plan for Directorsand Supervisors
Refer to the 2024 Annual Report or other corporate documentsTransparency of BoardCompensation
Refer to the 2024 Annual Report or other corporate documentsReasonableness of ManagementCompensation
Refer to the 2024 Annual Report or other corporate documentsStandardizegovernance
Internal controlInternal Audit
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceIntegrity in Construction
Integrity Construction SystemNorms
Complying with Commercial Ethics to Reinforce Internal Control
ComplianceEffectiveness of IntegrityConstruction Measures
Complying with Commercial Ethics to Reinforce Internal Control
Compliance
Investor RelationsManagement andShareholder Rights
Investor RelationshipManagement
Investor Relations ManagementStrategy
Robust Governance System for Long-term Stable OperationsInvestor CommunicationRobust Governance System for Long-term Stable OperationsConstruction of Investor RelationsManagement Department
Robust Governance System for Long-term Stable OperationsShareholders’ equity
General Meeting of ShareholdersSituation
Refer to the 2024 Annual Report or other corporate documentsShareholder CommunicationSituation
Refer to the 2024 Annual Report or other corporate documentsShareholders’ Right to Know andParticipate in Decision-making
Robust Governance System for Long-term Stable OperationsCreditors’ rights andbenefits
Credit StatusRefer to the 2024 Annual Report or other corporate documents
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 PrinciplesAbout this reportReporting BoundaryAbout this reportPart C: “Comply or explain” ProvisionsA. EnvironmentalAspect A1: EmissionsA1
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuer relating to air and greenhousegas emissions, discharges into water and land, and generation ofhazardous and non-hazardous waste.
Green and Low-Carbon Operations for a Better LifeKPI A1.1The types of emissions and respective emissions data.Green and Low-Carbon Operations for a Better LifeKPI A1.2[Repealed 1 January 2025]KPI A1.3
Total hazardous waste produced (in tonnes) and, where appropriate,intensity (e.g. per unit of production volume, per facility).
Green and Low-Carbon Operations for a Better Life
ESG MetricsKPI A1.4
Total non-hazardous waste produced (in tonnes) and, whereappropriate, intensity (e.g. per unit of production volume, per facility).
Need further improvementKPI A1.5Description of emission target(s) set and steps taken to achieve them.Green and Low-Carbon Operations for a Better LifeKPI A1.6
Description of how hazardous and nonhazardous wastes are handled,and a description of reduction target(s) set and steps taken to achievethem.
Green and Low-Carbon Operations for a Better Life
Appendix
AspectContentReport Content
Aspect A2: Use of ResourcesA2
General DisclosurePolicies on the efficient use of resources, including energy, water andother raw materials.
Green and Low-Carbon Operations for a Better LifeKPI A2.1
Direct and/or indirect energy consumption by type (e.g. electricity, gasor oil) in total (kWh in ’000s) and intensity (e.g. per unit of productionvolume, per facility).
Green and Low-Carbon Operations for a Better LifeKPI A2.2
Water consumption in total and intensity (e.g. per unit of productionvolume, per facility).
Green and Low-Carbon Operations for a Better LifeKPI A2.3
Description of energy use efficiency target(s) set and steps taken toachieve them.
Green and Low-Carbon Operations for a Better LifeKPI A2.4
Description of whether there is any issue in sourcing water that is fit forpurpose, water efficiency target(s) set and steps taken to achieve them.
Green and Low-Carbon Operations for a Better LifeKPI A2.5
Total packaging material used for finished products (in tonnes) and, ifapplicable, with reference to per unit produced.
Focusing on New Quality Productive Forces to
Develop a Circular EconomyAspect A3: The Environment and Natural ResourcesA3
General DisclosurePolicies on minimising the issuer’s significant impacts on theenvironment and natural resources.
Conserving Energy and Reducing Carbon throughout
the Entire Building Process
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 environmentand natural resources and the actions taken to manage them.
Conserving Energy and Reducing Carbon throughout
the Entire Building Process
Green and Low-Carbon Operations for a Better LifeAspect A4: Climate ChangeA4[Repealed 1 January 2025]KPI A4.1[Repealed 1 January 2025]
B. Social
Employment and Labour PracticesAspect B1: EmploymentB1
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a
significant impact on the issuer
Employee Rights and Promoting Their InterestsKPI B1.1
Total workforce by gender, employment type (for example, full – or part-time), age group 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 Interests
AspectContentReport ContentAspect B2: Health and SafetyB2
General Disclosure Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a
significant impact on the issuer relating to providing a safe workingenvironment 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 pastthree years including 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, andhow they are implemented and monitored.
Operational Safety and Physical and Mental HealthAspect B3: Development and TrainingB3
General DisclosurePolicies on improving employees’ knowledge and skills for dischargingduties at work. Description of training activities.
Upholding Original Beliefs and Mission to Ensure
Trusted Business Operations
Diversified Training to Promote Staff Development
Operational Safety and Physical and Mental HealthKPI B3.1
The percentage of employees trained by gender and employeecategory (e.g. senior management, middle management).
Operational Safety and Physical and Mental Health
Diversified Training to Promote Staff DevelopmentKPI B3.2
The average training hours completed per employee by gender andemployee category.
Diversified Training to Promote Staff DevelopmentAspect B4: Labour StandardsB4
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asignificant impact on the issuer relating to preventing child andforced labour
Employee Rights and Promoting Their InterestsKPI B4.1
Description of measures t o review employment practices to avoid childand forced labour.
Employee Rights and Promoting Their InterestsKPI B4.2Description of steps taken to eliminate such practices when discovered.Employee Rights and Promoting Their InterestsOperating PracticesAspect B5: Supply Chain ManagementB5
General DisclosurePolicies on managing environmental and social risks of the supplychain.
Upholding Original Beliefs and Mission to Ensure
Trusted Business Operations
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 ofsuppliers where the practices are being implemented, and how they areimplemented and monitored.
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 risksalong the supply chain, and how they are implemented and monitored.
Robust, Green and Intelligent Supply ChainKPI B5.4
Description of practices used to promote environmentally preferableproducts and services when selecting suppliers, and how they areimplemented and monitored.
Robust, Green and Intelligent Supply Chain
Focusing on New Quality Productive Forces to
Develop a Circular Economy
Appendix
AspectContentReport Content
Aspect 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 matters relating to products andservices provided and methods of redress.
Upholding Original Beliefs and Mission to EnsureTrusted Business OperationsKPI B6.1
Percentage of total products sold or shipped subject to recalls forsafety and health reasons.
Upholding Original Beliefs and Mission to EnsureTrusted Business OperationsKPI B6.2
Number of products and service related complaints received and howthey are dealt with.
Upholding Original Beliefs and Mission to EnsureTrusted Business Operations
KPI B6.3
Description of practices relating to observing and protecting intellectualproperty rights.
Complying with Commercial Ethics to ReinforceInternal Control ComplianceKPI B6.4Description of quality assurance process and recall procedures.
Upholding Original Beliefs and Mission to EnsureTrusted Business OperationsKPI B6.5
Description of consumer data protection and privacy policies, and howthey are implemented and monitored.
Complying with Commercial Ethics to ReinforceInternal Control ComplianceAspect 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, fraudand money laundering.
Complying with Commercial Ethics to ReinforceInternal Control ComplianceKPI B7.1
Number of concluded legal cases regarding corrupt practices broughtagainst the issuer or its employees during the reporting period and theoutcomes of the cases.
Complying with Commercial Ethics to ReinforceInternal Control ComplianceKPI B7.2
Description of preventive measures and whistle-blowing procedures,and how they are implemented and monitored.
Complying with Commercial Ethics to ReinforceInternal Control ComplianceKPI B7.3Description of anti-corruption training provided to directors and staff.
Complying with Commercial Ethics to ReinforceInternal Control ComplianceCommunityAspect B8: Community InvestmentB8
General DisclosurePolicies on community engagement to understand the needs of thecommunities where the issuer operates and to ensure its activities takeinto consideration the communities’ interests.
Meeting our responsibilities in rural revitalisationEngaging in Charity Initiatives to Act as aResponsible CorporateKPI B8.1
Focus areas of contribution (e.g. education, environmental concerns,labour needs, health, culture, sport).
Meeting our responsibilities in rural revitalisationEngaging in Charity Initiatives to Act as aResponsible CorporateKPI B8.2
Resources contributed (e.g. money or time) to the focusarea.
Meeting our responsibilities in rural revitalisationEngaging in Charity Initiatives to Act as aResponsible CorporatePart D: Climate-related Disclosures(I) Governance
The governance body(s) responsible for oversight of climate-relatedrisks and opportunities
Addressing Climate Change to Protect theEnvironment(II) StrategyClimate-related risks and opportunities.
Addressing Climate Change to Protect theEnvironment(III) Risk Management
The processes and related policies it uses to identify, assess, prioritiseand monitor climate-related risks
Addressing Climate Change to Protect theEnvironment(IV) Metrics and Targets
Greenhouse gas emissions
Addressing Climate Change to Protect theEnvironmentGreen and Low-Carbon Operations for a Better LifeClimate-related transition risks
Addressing Climate Change to Protect theEnvironmentClimate-related physical risks
Addressing Climate Change to Protect theEnvironment
GRI Standards IndexGRI StandardDisclosureLocation/NoteGRI 1: Foundation 20211 Foundation 2021
Report foundation, including GRI content index and instructions foruse, etc
About this reportGRI Standards IndexGRI 2 General Disclosures 2021The organization and its reporting practices2-1Organizational detailsAbout this report2-2Entities included in the organization’s sustainability reportingAbout this report2-3Reporting period, frequency and contact pointAbout this report2-4Restatements 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 InterestsDiversified Training to Promote Staff DevelopmentOperational Safety and Physical and Mental Health2-8Workers who are not employeesOperational Safety and Physical and Mental HealthGovernance2-9Governance structure and composition
Robust Governance System for Long-term StableOperations2-10Nomination and selection of the highest governance bodyRefer to the 2024 Annual Report.2-11Chair of the highest governance bodyRefer to the 2024 Annual Report.2-12
Role of the highest governance body in overseeing the managementof impacts
Statement of the Board of DirectorsRobust Governance System for Long-term StableOperations2-13Delegation of responsibility for managing impactsRefer to the 2024 Annual Report.2-14Role of the highest governance body in sustainability reporting
Statement of the Board of DirectorsRobust Governance System for Long-term StableOperations2-15Conflicts of interestRefer to the 2024 Annual Report.2-16Communication of critical concernsESG Strategy: Clarifying Key Priorities2-17Collective knowledge of the highest governance body
Statement of the Board of DirectorsRobust Governance System for Long-term StableOperationsESG Strategy: Clarifying Key Priorities2-18Evaluation of the performance of the highest governance bodyRefer to the 2024 Annual Report.2-19Remuneration policiesRefer to the 2024 Annual Report.2-20Process to determine remunerationRefer to the 2024 Annual Report.2-21Annual total compensation ratioRefer to the 2024 Annual Report.
Appendix
GRI StandardDisclosureLocation/NoteStrategy, policies and practices2-22Statement on sustainable development strategy
Statement of the Board of DirectorsESG Strategy: Clarifying Key Priorities2-23Policy commitments
Statement of the Board of DirectorsESG Strategy: Clarifying Key PrioritiesComplying with Commercial Ethics to ReinforceInternal Control ComplianceEmployee Rights and Promoting Their Interests2-24Embedding policy commitments
Statement of the Board of DirectorsESG Strategy: Clarifying Key PrioritiesComplying with Commercial Ethics to ReinforceInternal Control ComplianceUpholding Original Beliefs and Mission to EnsureTrusted Business Operations2-25Processes to remediate negative impacts
ESG Strategy: Clarifying Key PrioritiesComplying with Commercial Ethics to ReinforceInternal Control ComplianceUpholding Original Beliefs and Mission to EnsureTrusted Business Operations2-26Mechanisms for seeking advice and raising concerns
ESG Strategy: Clarifying Key PrioritiesUpholding Original Beliefs and Mission to EnsureTrusted Business Operations2-27Compliance with laws and regulations
Robust Governance System for Long-term StableOperationsUpholding Original Beliefs and Mission to EnsureTrusted Business OperationsEmployee Rights and Promoting Their InterestsGreen and Low-Carbon Operations for a BetterLife2-28Membership associations
Setting the Industry Benchmark for High-qualityDevelopmentStakeholder engagement2-29Approach to stakeholder engagementESG Strategy: Clarifying Key Priorities2-30Collective bargaining agreementsEmployee Rights and Promoting Their InterestsGRI 3: Material Topics 20213-1Process to determine material topicsESG Strategy: Clarifying Key Priorities3-2List of material topicsESG Strategy: Clarifying Key Priorities3-3Management of material topicsESG Strategy: Clarifying Key PrioritiesGRI 201: Economic Performance 2016201-1Direct economic value generated and distributed
Key Sustainability Performance MetricsRefer to the 2024 Annual Report.201-2
Financial implications and other risks and opportunities due toclimate change
Addressing Climate Change to Protect theEnvironment201-3Defined benefit plan obligations and other retirement plansEmployee Rights and Promoting Their Interests201-4Financial assistance received from governmentRefer to the 2024 Annual Report.
GRI StandardDisclosureLocation/NoteGRI 202: Market Presence 2016202-1
Ratios of standard entry level wage by gender compared to localminimum wage
Employee Rights and Promoting Their Interests202-2Proportion of senior management hired from the local communityNeed further improvementGRI 203: Indirect Economic Impacts 2016203-1Infrastructure investments and services supported
Meeting our responsibilities in rural revitalisation
With a Dual Focus, Co-Creating a New
Development Blueprint
Sailing with Momentum: A Decade of Excellence203-2Significant indirect economic impacts
Meeting our responsibilities in rural revitalisation
With a Dual Focus, Co-Creating a New
Development Blueprint
Sailing with Momentum: A Decade of ExcellenceGRI 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
Complying with Commercial Ethics to Reinforce
Internal Control Compliance205-3Confirmed 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, and monopolypractices
Complying with Commercial Ethics to Reinforce
Internal Control ComplianceGRI 207: Tax 2019207-1Approach to taxRefer to the 2024 Annual Report.207-2Tax governance, control, and risk managementRefer to the 2024 Annual Report.207-3
Stakeholder engagement and management of concerns related totax
ESG Strategy: Clarifying Key Priorities207-4Country-by-country reportingRefer to the 2024 Annual Report.GRI 301: Materials 2016301-1Materials used by weight or volume
Focusing on New Quality Productive Forces to
Develop a Circular Economy301-2Recycled input materials used
Focusing on New Quality Productive Forces to
Develop a Circular Economy301-3Reclaimed products and their packaging materials
Focusing on New Quality Productive Forces to
Develop a Circular EconomyGRI 302: Energy 2016302-1Energy consumption within the organization
Green and Low-Carbon Operations for a Better
Life302-2Energy consumption outside of the organizationNeed further improvement302-3Energy intensity
Green and Low-Carbon Operations for a Better
Life302-4Reduction of energy consumption
Conserving Energy and Reducing Carbon
throughout the Entire Building Process
Green and Low-Carbon Operations for a Better
Life302-5Reductions in energy requirements of products and servicesNeed further improvement
Appendix
GRI StandardDisclosureLocation/NoteGRI 303: Water and Effluents 2018303-1Interactions with water as a shared resource
Conserving Energy and Reducing Carbonthroughout the Entire Building ProcessGreen and Low-Carbon Operations for a BetterLife303-2Management of water discharge – related impacts
Conserving Energy and Reducing Carbonthroughout the Entire Building ProcessGreen and Low-Carbon Operations for a BetterLife303-3Water withdrawal
Green and Low-Carbon Operations for a BetterLife303-4Water 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
Conserving Energy and Reducing Carbonthroughout the Entire Building ProcessAddressing Climate Change to Protect theEnvironmentGreen and Low-Carbon Operations for a BetterLife304-2
Significant impacts of activities, products and services onbiodiversity
Conserving Energy and Reducing Carbonthroughout the Entire Building ProcessAddressing Climate Change to Protect theEnvironmentGreen and Low-Carbon Operations for a BetterLife304-3Habitats protected or restored
Green and Low-Carbon Operations for a BetterLife304-4
IUCN Red List species and national conservation list species withhabitats in areas affected by operations
No relevant incidents during the reporting period.GRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissions
Green and Low-Carbon Operations for a Better
Life305-2Energy indirect (Scope 2) GHG emissions
Green and Low-Carbon Operations for a Better
Life305-3Other indirect (Scope 3) GHG emissionsNeed further improvement305-4GHG emissions intensity
Green 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 significant airemissions
Need further improvementGRI 306: Waste 2020306-1Waste generation and significant waste related impacts
Green and Low-Carbon Operations for a Better
Life306-2Management of significant waste related impacts
Green and Low-Carbon Operations for a Better
Life306-3Waste generatedNeed further improvement306-4Waste diverted from disposalNeed further improvement306-5Waste directed to disposalNeed further improvementGRI 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 StandardDisclosureLocation/NoteGRI 401: Employment 2016401-1New employee hires and employee turnoverEmployee Rights and Promoting Their Interests401-2
Benefits provided to full-time employees that are not provided totemporary 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 safety impactsdirectly linked by business relationships
Operational Safety and Physical and Mental Health403-8
Workers covered by an occupational health and safety managementsystem
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 employeeDiversified Training to Promote Staff Development404-2
Programs for upgrading employee skills and transition assistanceprograms
Diversified Training to Promote Staff Development404-3
Percentage of employees receiving regular performance and careerdevelopment reviews
Diversified Training to Promote Staff 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 of associationand 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 of forced orcompulsory labor
No relevant incidents during the reporting period.
Appendix
GRI StandardDisclosureLocation/NoteGRI 410: Security Practices 2016410-1Security personnel trained in human rights policies or proceduresNot 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, impact assessments,and development programs
Meeting our responsibilities in rural revitalisationEngaging in Charity Initiatives to Act as aResponsible CorporateWith a Dual Focus, Co-Creating a NewDevelopment Blueprint413-2
Operations with significant actual and potential negative impacts onlocal 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 and servicecategories
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.417-3Incidents of non-compliance concerning marketing communicationsNo relevant incidents during the reporting period.GRI 418: Customer Privacy 2016418-1
Substantiated complaints concerning breaches of customer privacyand losses of customer data
No relevant incidents during the reporting period.