FAST NEWS: CTG Duty Free’s vice chairman leaves to retire

The Latest: Duty-free store operator China Tourism Group (CTG) Duty Free Corp. Ltd. (1880.HK; 601888.SH) announced Thursday its executive director and vice-chairman Chen Guoqiang has retired from the company.

Looking Up: The announcement stated that Chen confirmed he had no disagreement with the company and the board.

Take Note: The company’s top management has changed frequently in recent years. Peng Hui became chairman in 2022, only to be succeeded by Li Gang in February last year. But Li passed away eight months later and his job was taken over by Wang Xuan. The vice chairman’s departure could add to investor concerns about the frequent changes in the company’s top management.

Digging Deeper: CTG Duty Free operates nearly 200 duty free retail stores in China, and listed in Shanghai in 2009 and Hong Kong in 2022. The company’s six stores in Hainan province were big beneficiaries after China relaxed its duty-free shopping limits on the southern vacation island in 2020, and accounted for 59% of its revenue last year. But as consumer sentiment has weakened with China’s slowing economy, CTG’s revenue in the first half of this year dropped by 12.8% to 31.27 billion yuan ($4.4 billion) year-on-year, while its net profit also fell by 15% to 3.29 billion yuan.

Market Reaction: CTG Duty Free’s Hong Kong shares rose on Friday, closing up 0.5% to HK$41.4 at the midday break. The stock now trades near the lower end of its 52-week range.

Translation by A. Au

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