China Tourism Group Duty Free Corporation Limited
Stock Abbreviation：CTG DUTY-FREE
A Share Stock Code：601888.SH
H Share Stock Code：01880.HK
2025
Environmental Social and
Governance Report
China Tourism Group Duty Free Corporation Limited 2025 Environmental Social and Governance ReportReport Preparation Notes
2025 Environmental Social Stock Abbreviation: CTG DUTY-FREE China Tourism Group Duty and Governance Report Stock Code: 601888.SH 01880.HK Free Corporation Limited
Report Preparation Notes
This report is the fifth Environmental Social and Governance Source of Information
Report (hereinafter “ESG Report” “this Report” or “the Report”)
issued by China Tourism Group Duty Free Corporation Limited The information provided in the Report have been obtained from
(hereinafter “CTG DUTY-FREE” “the company” or “we”). our official documents reports or relevant public materials of
the company and its subsidiary. Unless otherwise specified the
Reporting Scope currencies involved in the Report are all measured in CNY.Unless otherwise stated the scope of content disclosed in the Release Form of the Report
ESG Report is consistent with that of the company’s consolidated
financial report. The electronic version of this Report can be downloaded from the
company’s official website or obtained by following the WeChat
Reporting Period official account of “CTG DUTY-FREE Investor Relations”. This
Report is published in Simplified Chinese Traditional Chinese
The period of this Report is from 1 January to 31 December 2025. and English. In the event of any discrepancy between the three
Unless otherwise specified the data in this report are as of the end versions the Simplified Chinese version shall prevail.of 2025 or for this period.Basis of Preparation
This Report is prepared in accordance with the ESG Metrics
System for ESG Reports of Listed Companies Controlled by
Central State-owned Enterprises issued by the State-owned
Assets Supervision and Administration Commission of the State
Council (the “SASAC”) Guidelines No. 14 of Shanghai Stock
Exchange for Self-Regulation of Listed Companies – Sustainability
Report (Trial) (“Sustainability Report (Trial)”) and the Environmental
Social and Governance Reporting Code (“ESG Code”) Appendix Contact Information
C2 to the Rules Governing the Listing of Securities on the Main Address: No.2A-1 Dongzhimenwai Xiaojie DongCheng DistrictBoard of The Stock Exchange of Hong Kong Limited (“Hong Kong Beijing China.Stock Exchange”) and with reference to the following rules:
Phone: 010-8447 8888
* The Guidelines for State-owned Enterprises Directly under
the Central Government on Fulfi l l ing Corporate Social Email: cdfir@ctg.cn
Responsibilities issued by the SASAC;
* The Guidelines No. 1 for Application of Self-regulation Rules
for Listed Companies – Standardised Operation issued by the
Shanghai Stock Exchanges (the “SSE”);
* The Guidelines on Corporate Social Responsibility Reporting
in China released by Chinese Academy of Social Sciences
(“CASS-ESG 6.0”)
* Global Reporting Initiative’s Sustainability Reporting Standards
(“GRI Standards”)
* The Ten Principles of the United Nations Global Compact
* United Nations Sustainable Development Goals (SDGs)
Reporting Principles
Materiality: We identified key ESG issues through materiality
assessment the process and results of which have been disclosed
in this report.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
disclosed truthfully reflects 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 of information previously disclosed in the report for last
year to the largest extent.
01CONTENTS 01 Report Preparation Notes 138 Appendix04 Letter from the Chairman Topic 1 Topic 2138 Glossary of Terms
06 Key Sustainability Performance 140 ESG Metrics Continuing to Expand the Company’s Overseas Blending Traditional Culture to Craft
Metrics 146 Index Presence and Distribution Network as a Global Immersive Shopping Adventures
08 Honors and Awards Travel Retailer for Selected Brands
12 Sta tement o f the Board o f 17 Overseas Retail Expansion 21 Sanya International Duty-Free Shopping
Directors
17 Enhancing Channel Expansion Complex: Evolving from Shopping Mall
13 Basic information of the Company to Scenic Destination
18 Helping Chinese Brands Accelerate Their
Overseas Expansion 22 Haikou International Duty-Free Shopping
Complex
19 Capital Markets Engagement
24 Intangible Cultural Heritage Activities
19 Talent Development
0102
Principles of
Governance Prosperity
28 Robust Governance System for Long- 50 Upholding Original Beliefs and Mission to
term Stable Operations Ensure Trusted Business Operations
38 Enhancing Risk Management and Internal 62 Robust Green and Intelligent Supply
Controls and Upholding Business Ethics Chain
44 Enhancing Information Security and 70 Engaging in Good Initiatives to Act as a
Implementing Privacy Protection Responsible Corporate
0304
People Planet
84 Employee Rights and Promoting Their 106 Environmental Compliance Management
Interests 112 Addressing Climate Change to Protect
92 Operational Safety and Physical and the Environment
Mental Health 119 Green and Low-Carbon Operations for a
98 Enhancing Our Comprehensive Better Life
Training System to Support Employee
evelopmentChina Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Letter from the Chairman
Letter from the Chairman Dear stakeholdersThe year 2025 marked the conclusion of China’s 14th Five-Year Plan. collaborated to create a vibrant festive atmosphere through a trifecta
Amidst profound and complex shifts in the domestic and international of folk culture shopping promotions and cultural tourism experiences.landscape CTG DUTY-FREE is steadfast in upholding its core values This seamless integration of duty-free shopping with traditional Chinese
of being “courageous professional efficient cooperative innovative” culture offered consumers an unforgettable cultural celebration.while remaining committed to “Integrity in Operations and Excellence inService.” We have pressed forward with our sustainable development
strategy maintaining steady and sustained progress on our path to Innovation as the Engine: Fueling Value Creation
becoming a globally leading digital-intelligent travel retail operator Digital transformation stands as the company’s core initiative in
and continually meeting society’s growing aspirations for a better life. enhancing operational efficiency and unlocking our value creation
On behalf of the Board of Directors of CTG DUTY-FREE I would like potential. Throughout 2025 the company accelerated the development
to express my heartfelt thanks to those who have been long-time of its digital infrastructure. By optimising innovation systems deepening
supporters of the company. data platform capabilities advancing Project Nebula (星云项目 ) and
refining supply chain management we have injected robust momentum
Leading with Responsibility: Driving High-quality into our digital and intelligent evolution. Our One ID membership system
has surpassed 140 million registered user data points establishing itself
Development as an industry-leading scalable data asset repository. The full launch
As a vanguard of Chinese enterprises expanding globally our of Project Nebula has enabled a sophisticated data empowerment
international journey embodies the close alignment between national framework. This is driving deeper data value mining and application
strategy and corporate growth. It represents both a proactive response innovation providing precise market demand insights optimising sales
to upgrades to consumption and an essential pathway to developing conversion pathways and systematically enhancing the contextual
international markets. The company established its first overseas service capabilities of our data products – ultimately fuelling the growth
subsidiary in 2013 initiating its global presence. Over the past twelve of our online business.years we have expanded steadily accelerating internationalisation
over recent years. In 2025 we participated in the Shanghai Stock Governance as the Cornerstone: Bolstering Sustainable
Exchange’s European roadshow. We have now established integrated
capabilities for channel expansion brand globalisation retail operations Growth
market development and talent cultivation enabling our transition from We continue to place sustainable development governance at our core
a ‘single-model’ approach to ‘omni-channel operations’ and elevating integrating it into strategic decision-making and daily management
target markets from ‘duty-free retail’ to ‘travel retail’ and ‘premium to drive the synergistic development of environmental social and
retail.’ economic benefits. We uphold rigorous corporate governance
Beyond introducing international brands to meet Chinese consumer strengthen risk management and internal controls adhere to ethical
demand we have deepened our ‘China-chic globalisation’ strategy business practices and fortify defences to information security and
facilitating the expansion of premium domestic brands worldwide. privacy protection thereby laying a solid foundation for the company’s
Leveraging our extensive global distribution network and international long-term stable operations. We remain steadfast in conducting our
platform strengths we empower Chinese brands to navigate global business with integrity enforcing rigorous supply chain compliance and
markets. advancing our supply chains towards greener and smarter practices.Meanwhile we actively fulfil our social responsibilities harnessing
collective goodwill to support rural revitalisation and shared prosperity
Acting with Purpose: Building Hainan’s New Legacy
Mr. FAN Yunjun contributing to sustainable societal development.18 December 2025 saw the commencement of the Hainan Free In terms of employee care we prioritise employee rights and their
Trade Port island-wide customs closure operation. This high-level physical and mental well-being enhance training systems and
Chairman initiative signifies a new phase in Hainan’s development and opens a support professional growth. By fostering a safe working environment fresh chapter for of CTG DUTY-FREE after over a decade of deep- and cultivating an inclusive diverse corporate culture we give every
rooted commitment to the region. Seizing this strategic opportunity employee a sense of belonging and achievement within the company.the company established the Hainan Centre of Excellence (“Hainan Regarding environmental protection we proactively address climateCOE”). With a core mission of “Integrated Coordination Quality and change and promote green low-carbon operations. ThroughEfficiency Enhancement and Foundation Strengthening” the Hainan strengthened environmental compliance management the development
COE elevates operational efficiency and governance precision through of green buildings and the increased utilisation of renewable energy
upgraded management structures uniting our development efforts to we are effectively reducing carbon emissions safeguarding our blue
solidify the company’s leadership in global travel retail and underpinning skies and green landscapes and collaborating with society to create a
our high-quality growth. better life.Looking ahead guided by the principles of “Innovation CoordinationCulture as the Foundation: Curating Next-Gen Duty- Green Development Openness and Sharing” we will join hands with
Free Experiences our global partners to pursue high-quality sustainable development
and contribute to a brighter future of harmonious coexistence between
On 29 April 2025 cdf Sanya International Duty-Free Shopping humanity and nature.Complex located on Haitang Bay Sanya Hainan being honoured
as a National 4A Tourist Attraction. This marked the world’s first high-
grade tourist attraction developed with “duty-free commerce” at its
core representing a significant milestone for the company in integrating Mr. FAN Yunjun
cultural tourism with consumption. The Complex is reshaping Hainan’s Chairman
tourism consumption benchmarks through its matrix of international March 2026
luxury brands world-class architectural artistry and immersive
shopping environments injecting fresh impetus into the development of
the Hainan International Tourism Consumption Centre.Following UNESCO recognition of Chinese Spring Festival in 2025 we
dug deep into our traditional cultural heritage. Our six cdf Hainan stores
04 05China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Key Sustainability Performance Metrics
Key Sustainability Performance Metrics
Market Social
Ranked first
Ranked No.1 among China’s duty-free commodity 537000 14485 CNY37.14 million
operators
Selling over 537000 SKUs of goods There are 14485 total employees as at the end of 2025 We invested CNY37.14 million in operation safety
organised 1385 safety t ra in ings for 75400
Top two participants
We operate the two largest duty-free shops in the 1674 well-known brands 100% training coverage
world – Haikou International Duty-Free Shopping
1674 well-known brands in the world are in our duty-
Complex and Sanya International Duty-Free Shopping
free shops more than 78.85 training hours CNY16.88 million
Complex
The employee training coverage reaches 100% with Spent CNY16.88 mi l l ion in f ree a id in rura l
more than 788500 training hours in total revitalisation implemented 16 assistance projects
Nearly 2 million and helped raise CNY10.05 million in assistance
funds
The company provides duty-free commodity services
to nearly 200 million domestic and foreign tourists 59.84%
Most comprehensive every year Females in employees account for 59.84% and million
females in the Board of Directors account for 25% 53
With full coverage on on-board aircrafts borders foreign ships passenger stations railway stations diplomatists cruises
females in the senior managerial roles account for Nearly 53 million registered cdf members
and downtown channels we are the travel retail operator with the complete types of duty-free shops and the largest
25% and in middle managerial roles account for
number of retail stores in a single country worldwide
39.22%
Environmental
Green building certifications
Haikou International Duty-Free Shopping Complex 0.0156 tons of standard coal/m2 0.04 tCO 22e/m 0.09 tCO2e/CNY million of revenue
(Block No.1) obtained 2-star Green Bui lding
0.0156 tons of standard coal/m2 of comprehensive energy GHG emissions intensity for Scope 1 and 2: 0.04 tCO2e/m2 GHG emissions intensity for Scope 3 (Categories 6
Certification and LEED Gold certification
intensity and 7): 0.09 tCO2e/CNY million of revenue
Haikou International Duty-Free Shopping Complex
(Block No.4) obtained 2-star Green Building pre-
certification 77.37 million 34 certifications
Sanya International Duty-Free Shopping Complex The company provided 77.37 million shopping bags 34 stores/counters have received LEED certifications including 1 Platinum certification 31 LEED Gold certifications and 2
Phase 1 Plot 2 Hotel Project obtained 2-star Green that meet environmental requirements in the past four LEED Sliver certifications
Building pre-certification years and effectively reduced the generation of non-
degradable plastic waste
Sanya International Duty-Free Shopping Complex
Phase 3 Commercial Project obtained WELL Platinum
mid-term pre-certification and LEED Platinum pre-
certification * E xcept otherwise specified all the above are data as
of the end of 2025 or for the year 2025.
06 07China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Honors and Awards
Honors and Awards
ESG and CSR Awards Received in 2025:
Best ESG
Information
Disclosure Award
Received the Received the Listed in Honoured with the 2025
“Best ESG Information Disclosure Award” “Best Practices Case for Performance Presentations” “Top 100 Best ESG Practices among Listed Companies “Investor Relations Crystal Ball Award”from New Fortune award from the China Association for Public Companies in China by Wind-Large-cap Companies” “ESG Crystal Ball Award”
and “Best General Manager”
for listed companies
Received the Received the
Included in the Included in the “2025 Best ESG Practice Award for Listed Companies” “Annual ESG Excellence Enterprise”“2025 Enterprise Cases for Green “Steady and Sustainable: 2025 Report on Chinese jointly awarded by Value Online and Easy Board title at the 2025 Hong Kong Wealth Management SummitTransformation and ESG Practices” Enterprise ESG Leaders” Forum and the 12th “Top 100 Hong Kong Listed Companies”
by the All-China Environment Federation by SynTao Green Finance Awards Ceremony
08 09China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Honors and Awards
Governance and Investor Relations Awards
Received in 2025: Other awards:
Received the Received the title of
“German Design Award” and “2024 Cultural and Tourism Brand Value Influential“Travel Retail Superstars Award” Communication Enterprise”
from the Moodie Davitt Report at the 11th Culture and Tourism Integration and Innovation
Forum & High-Quality Development Impact Case Selection
hosted by Xinhuanet and academically supported by the
Chinese Society for Environmental Sciences
Received the Received the
“Best IR Hong Kong Listed Company “Best Listed Company”
(A+H Share)” award for the first time from the
from New Fortune “Golden Kunpeng”
China Financial Value Ranking by Hong
Kong Commercial Daily
Received the Received the Excellence Award from the
Awarded with “Investor Relations Award” “6th Central Enterprise Micro-film (Micro-video) Selection themed on Core Socialist Values”
“Best Practices in Investor Relations Management for and “Best Award Report” and the Excellence Award from theListed Companies in China” from the Hong Kong Investor Relations Association “Micro-videos for Grassroots Theoretical Propaganda of Central Enterprises in 2025”
from the China Association for Public Companies by the Party Committee Publicity Department of the State-owned Assets Supervision and Administration Commission (SASAC)
* Only included part of honors and awards here.
10 11China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Statement of the Board of Directors
Statement of the Board of Directors Basic information of the company
Company Overview
China Tourism Group Duty Free Corporation Limited (stock and other places in the Asia Pacific region and major domestic
abbreviation: CTG DUTY-FREE; stock code: 601888.SH 01880. border ports Sanya International Duty-Free Shopping Complex
HK) was listed on the Shanghai Stock Exchange in October 2009 Haikou International Duty-Free Shopping Complex and so on.(previously known as “China International Travel Service Co. China Duty Free Group has developed into a travel retailer with theLtd.” the stock abbreviation “China CITS”) and was listed on the most complete types of duty-free shops and the largest number of
Main Board of the Hong Kong Stock Exchange in August 2022. retail stores in a single country in the world.Our company mainly engages in duty-free business including the
wholesale and retail of duty-free commodities such as fragrance The “courageous professional efficient cooperative innovative”
luxury jewellery watch etc. Moreover the company is also corporate culture has been fostered during the company’s
involved in investing and developing commercial complexes with development over the years and it is with this culture that we face
duty-free business as the core. challenges bravely and overcome difficulties. In recent years the
company’s core functions and capabilities such as procurement
Over 40 years of rapid development the company has established operations channel expansion digitalisation and marketing have
long-term and stable cooperations with more than 1500 renowned been continuously enhanced. Our business has been steadily
brands worldwide. It has set up over 200 duty-free shops in over transformed and upgraded achieving leapfrog development.
30 provinces cities autonomous regions and special administrative
regions in China and also Japan Singapore Cambodia Sri In the future our organisation will maintain the continuous stable
Lanka and other places covering airports on-board aircrafts and healthy growth of the duty-free business adhering to the
borders passenger stations railway stations foreign cruise supply concept of “customer-centered market-oriented” with “duty-freediplomatists cruises and downtowns (offshore departures) in business” as the core to upgrade the value chain and “tourismthese regions. Its main sales channels cover large domestic hub retail” as the extension to upgrade the industrial chain to build a
In order to standardise the ESG management mechanism and During the reporting period the Strategy and Sustainability airports in Beijing Shanghai Guangzhou Chengdu Hangzhou and more globally competitive world-class travel retailer.enhance the quality of ESG management CTG DUTY-FREE has Committee of the Board of Directors was involved in assessing
Hong Kong SAR international airports in Singapore Cambodia
established an ESG governance structure where the Board of prioritising and managing ESG-related issues (including the
Directors holds the ultimate responsibility and decision-making company’s business risk). In accordance with the Sustainability
authority for ESG matters. Report (for Trial Implementation) issued by the Shanghai Stock
Exchange the committee reviewed the double-materiality Corporate Culture
The Board of Directors is ultimately accountable for the company’s assessment of sustainability-related topics and financially material
ESG strategy target management and information disclosure. This topics remain basically unchanged including: climate change
responsibility includes reviewing and approving major decisions tackling energy usage excellent service safety and quality of
and improvement proposals related to ESG. products employees supply chain security data security and
customer privacy protection.The Strategy and Sustainability Committee under the Board
of Directors is the primary responsible body and its key After carefully reviewing these topics the company has developed
responsibilities include: conducting research and providing advice corresponding targets and measures to manage them. Going
on the company’s ESG-related strategies policies and targets; forward we will update our sustainability-related management Brand Positioning Corporate Mission
overseeing and measuring progress towards ESG targets; strategy and implementation plans to reflect changes in the external
reviewing the company’s sustainability reporting and ESG-related environment and the circumstances and facts specific to the The representative of the Share the joy of
matters to ensure that they meet regulatory requirements and company to continuously enhance our sustainability capabilities. duty-free industry in China shopping and extend
stakeholder expectations; and supporting the Board of Directors to The largest luxury operator the enjoyment of travel
effectively fulfilling its ESG governance functions. The Report provides detailed information on the progress and in China
achievements regarding CTG DUTY-FREE’s ESG efforts in 2025
To ensure our ESG practices are systematic and standardised the and was approved by the Board of Directors in March 2026. Operation Concept
company establishes the ESG Leadership Group which is headed The Board of Directors and all directors of the company hereby Core Values
by the Chairman of the company; the deputy head of it is the guarantee that the information presented in this Report contains Customer centered Courageous
General Manager; and its members include heads of departments. no false records misleading statements or material omissions and market-orientedprofessional efficient
The ESG Leadership Group is responsible for managing and undertake joint and several liability for the authenticity accuracy cooperative innovative
coordinating the company’s ESG-related work which establishes and completeness of the information.and improves the company’s management system and operating
mechanism for ESG-related work and it also formulates ESG work
plans and integrates the company’s development strategy image
branding and operations with ESG concepts.
12 13China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Statement of the Board of Directors
Development Milestones 2022
After over 40 years’ development CTG DUTY-FREE has became the first- * Listing on the Hong Kong
class travel retailer in the world: 2020 Stock Exchange
* Grand opening of Haikou
* Acquired Hainan Duty-free
International Duty-Free
Co. Ltd.
1984 1996 2011 Shopping Complex the * We became the largest single duty-free
shop worldwide
The PRC State Council Our Heihe Border Duty Free Our Sanya Downtown Duty world’s largest travel
officially authorised the Store the first duty-free Free Store commenced retail operator; the * Ranked as the world’s
establishment of China shop on the border of Asian its business operation as membership system
1990 largest travel retail Duty Free Company countries was established 2006 the first offshore duty-free 2017 of cdf was officially operator for the three store in Hainan province launched marking a
Our Beijing Downtown consecutive years
We entered the international Acquired Sunrise Duty Free historic breakthrough
Duty Free Shop the first
market and established its (China) Co. Ltd. in online and offline
downtown duty-free store
first sales terminal in the interconnection 2023
in China commenced its
overseas market domesticand overseas
business operation interconnection Awarded the title of Model
for World-class Specialised
and Innovative Enterprise
by SASAC
200920142024
1989 2004 We are successfully listed * Our Sanya International 2021 A dedicated project team
An office of China Duty Free on the Shanghai Stock Duty-Free Complex was set up to support We remained the No.1 travel
Corporate was established We are selected as one of 1995 Exchange commenced its business 2018 China-chic products’ the franchised retailers for retail operator in the worldin Hong Kong SAR to operation as the first “going global” efforts
strengthen the overseas the 2008 Beijing Olympic
* Acquired Sunrise Duty
travel retail complex in leading the charge for this
high-quality products from
procurement and distribution Games
Free (Shanghai) Co. Ltd.China. It was the largest new trend in the travel
China’s established brands
capability of duty-free standalone duty-free retail industry
were released for trial sales * The first independent
merchandise store in the world in terms
in 10 duty-free stores cruise duty free shop
of sales area at that time
in China commenced its 2025
business operation
* Our first overseas
12 downtown duty-free
downtown duty-free store
stores newly opened/
commenced operation in
renovated and upgraded
Angkor Cambodia
14 15China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Topic 1
Overseas Retail Expansion
Topic 1: In its “go global” journey the company not only serves as a leading achieve synergies but it also proves that it is urgently necessary
example of how enterprises can align with key national strategies to to do so to seize opportunities amid consumption upgrading
and to further expand into global markets.Continuing to Expand the Case study
Company’s Overseas Presence Serving national strategies and responding proactively to the Belt and Road Initiative as a duty-free operator
and Distribution Network as In response to the call to serve and jointly advance the Belt and Road Initiative the To “promote cultural exchanges and business cooperation” CDFG Cambodiacompany announced its first overseas subsidiary – China Duty Free Group (Cambodia) Limited has adopted a growth model driven by “select brands a localised ecosystema Global Travel Retailer for Co. Ltd. (hereinafter referred to as “CDFG Cambodia Limited”)—in 2013 which and a duty-free experience hub”. In doing so CDFG Cambodia Limited has been marked a first among domestic duty-free retailers providing an effective example able to “select premium Chinese brands for overseas market tailor them to cater tofor the entire industry. Since then the company has been expanding its presence in local culture and make its duty-free stores a landmark”. CDFG Cambodia Limited
Selected Brands Cambodia. After 12 years’ effort the company has opened three downtown duty-free is playing a key role in helping China-chic products gain popularity in Cambodia
stores in Siem Reap Phnom Penh and Sihanoukville along with one airport duty-free such as iFLYTEK’s intelligent technology and Tong Ren Tang’s traditional Chinese
store covering three key tourist cities in Cambodia serving both international inbound medicine. With this approach CDFG Cambodia Limited is not only expanding
tourists and local consumers. These stores have become a highlight and key example offerings in the local market but also providing an avenue through which leading
of how the company is advancing economic cooperation and cultural exchanges Chinese brands can reach global audiences contributing to the spread of Chinese
In recent years while continuously expanding its global footprint CTG between the Chinese and Cambodian people. culture and cultural exchanges between these two countries.DUTY-FREE has developed robust capabilities in areas including sales
channel expansion brand globalisation retail operations marketing
and talent development. With these capabilities the company has
been able to transition from a “single-channel” to an “omni-channel”
operating model evolving from a “duty-free retailer” to a “travelretailer” and “premium retailer” for its target markets.cdf duty-free stores in Cambodia
Enhancing Channel Expansion
Proper tools are essential for success; and specifically channels of long-term development. The company not only facilitates the
are crucial for expanding sales business particularly in respect “bringing in” of international brands but also empowers the “goingglobal” of Chinese brands.In Hong Kong: The company opened a new MCM boutique at Hong Kong International I n C a m b o d i a : L e v e r a g i n g y e a r s o f
Airport; and it leveraged 52toys’ distribution business to activate over 1500 sales experience and resources in deepening duty-
touchpoints across Hong Kong with a focus on penetrating wholesale channels and free operations in the country the company
achieving steady growth in scale. Furthermore the company’s in-flight duty-free goods proactively adapted to market trends and
sale channel with Hong Kong Airlines facilitated the launch of 52toys blind boxes and created diversified consumption scenarios for
iFLYTEK headphones enabling China-chic products to precisely target high-end travel local residents and cross-border travellers
consumption scenarios. expanding taxable retail operations to unlock
broader market opportunities.In Macau: The company secured duty-free operating rights for Macau International
Airport and opened a new downtown concept store (Macau Peninsula Downtown Store) The company partnered with ANTA Group in its Southeast Asia “1000-store Plan”
at the landmark M8 Mall in the Historic Centre of Macau. This store complements the successfully launching taxable ANTA stores in key commercial hubs in Cambodia.existing airport and Taipa stores forming a three-pronged retail network to bolster the
company’s market presence.In Singapore: The company secured the bid and commenced operations for the Qeelin
In Japan: The company focused its efforts on overseas markets with strong potential. boutique in Changi Airport Terminal 3 (T3). The three stores – Qeelin T1 Qeelin T3 and
MCM T3 – are progressively producing a scale effect.In Vietnam: The company secured 10-year supply agreements for Hanoi and Phu Quoc
airports with a view to developing strategic markets with significant potential.The company successfully launched Melt Season and CHANDO pop-up stores at Narita International Airport marking
the debut of Chinese fragrance and cosmetics brands in Japanese airport duty-free channels.
16 17China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Topic 1
Capital Markets Engagement
Helping Chinese Brands Accelerate Their Overseas Expansion
Case study
We pursue common prosperity for a greater good. For China- The company has signed overseas distribution rights arrangements
chic brands working to go global the company has been able to with multiple leading China-chic brands including 52toys Top Toy The company participated in the Shanghai Stock Exchange’s European roadshow and ex-
support and help them drawing on the extensive experience it has Voolga iFLYTEK Yoose and Unitree covering three key product change event showcasing high-quality development to the international market
accumulated in overseas operations over the years based on the categories: technology emotional value and productivity and it
nature of the company’s main business duty-free retail and its has even secured exclusive regional distribution rights with some To align with China’s commitment to the high-standard
earlier globalisation. of the brands. Additionally as part of its efforts to create a diverse opening-up of its capital markets and facilitating cross-border
collaborative brand matrix the company has also developed
partnerships with major domestic groups like ANTA and FOSUN. capital investment and financing cooperation in June 2025 the
Case study company joined a delegation of high-quality listed companies
that were organised by the Shanghai Stock Exchange to travel
Hosting the CDFG Global Brands Meeting to explore new opportunities in global retail to London UK and Geneva Switzerland with the purpose
In March 2025 the company hosted the 2025 CDFG Global of conducting capital markets promotion and internationalBrands Meeting in Sanya Hainan themed “Redefine Frontiers exchange activities.and Synergise Futures”. Numerous investors industry experts
and partners from 224 brands around the world gathered to Through various formats including roadshows and one-on-
jointly explore innovative development opportunities in the
global travel retail industry. The company signed strategic one meetings the company engaged in in-depth discussions
cooperation agreements with eight well-known domestic with representatives from international investment banks
enterprises including Bloomage Biotech and Giant Biogene to insurance firms private banks asset management institutions
help accelerate their expansion into overseas markets promote wealth management institutions and family offices. At the
the deep integration of Chinese culture with global consumption event the company comprehensively demonstrated its
trends and enhance the cultural and commercial value of their
products. integrated strengths and development prospects across
multiple dimensions including its robust corporate governance
Supporting China-chic products in reaching a wider global audience at the China structure global market footprint and competitive advantages
International Consumer Products Expo 2025 within the global industrial chain. This effectively communicated
the vitality resilience and potential of the Chinese economy to
In April 2025 the fifth China International Consumer ProductsExpo themed “Share Open Opportunities Co-create a Better the international market. A representative from the Securities Affairs Department deliveredLife” was held in Hainan. As the largest consumer goods expo remarks at a roadshow event in Switzerland
in the Asia-Pacific region this year’s event featured a dedicated
“China-chic Brands” zone highlighting the rise of Chinese
brands. Through its six cdf stores in Hainan along with its online
platforms the company launched a variety of activities and
showcased innovative consumer scenarios at the expo with a Talent Development
view to helping those brands reach and resonate with a wider
global audience.To keep pace with the globalisation of its business the company provides diverse training programmes such as those covering China-chic
culture foreign language learning and diplomatic etiquette to comprehensively empower its employees.Signing a strategic cooperation agreement with Tong Ren Tang Group to promote
traditional Chinese medicine globally
Case study
In February 2025 the company signed an overseas strategic
cooperation agreement with Tong Ren Tang Group at a China- Organising groups visiting abroad continuously promoting high-quality talent cultivation for
Cambodia overseas health and cultural exchange event held opening-up
by Tong Ren Tang Group in Cambodia with the theme of“Everlasting Legacy along the Silk Road Universal Care for In 2025 the company organised 143 overseas visiting groups Road Initiative promoting industrial upgrading and consumptionAll”. By signing this agreement the two parties committed to with 387 person times for business purpose to France Italy upgrading through high-quality imports continuously meeting
promoting cultural and commercial exchanges between China Switzerland Spain the United Kingdom Singapore Cambodia people’s aspirations for a better life and cultivating a high-calibre
and Cambodia and to leveraging strengths in their respective Vietnam Sri Lanka Thailand South Korea Hong Kong Macao specialised talent pool to support China’s high-level opening-up.fields to further explore the practical value of traditional Chinese and other places. The purposes of these visitings include
Looking ahead the company will actively leverage its role as an
medicine. Through innovative dissemination methods and procurement and ordering overseas store tours participation in
industry leader and set an exemplary standard by building closer
global partnerships the company will also work with Tong Ren industry conferences brand negotiations and duty-free business
research and development of important projects greatly effectively collaborative networks expanding into overseas markets and Tang Group to co-create the future of the “big health” industry
accelerating the internationalisation of Chinese brands. Together
with the aim of providing diverse health solutions for the global guaranteeing the company’s foreign cooperation and exchange
population. deepening international cooperation in industrial and supply
with its global partners the company will co-create a new chapter
chains advancing the high-quality co-construction of the Belt and of high-quality development in the travel retail sector.As a leading global travel retailer China Duty Free Group will continue to leverage the strengths of its established global distribution network
supply chain management approach and insights into consumer trends to provide end-to-end support for brands – from marketing
promotion to sales channel expansion.
18 19China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Topic 2
Sanya International Duty-Free Shopping Complex:
Evolving from Shopping Mall to Scenic Destination
Topic 2:
The Sanya International Duty-Free Shopping Complex featuresthree world-class architectural art complexes – the “Begoniaflower” the “Shell” and the “Yacht” – connected by an iconic
Blending Traditional Culture landmark the Yunjie Bridge. Together they form a uniquely designed international architectural art-themed area.to Craft Immersive Shopping
In terms of the different experiences offered the area south of
Adventures Yunjie Bridge is the “Fashion & Art Gallery” highlighting the fusion
and exhibition of fashion and art. The area to the north is the
“Romantic Lifestyle Retreat” emphasising relaxed and romantic
leisure experiences. The complex offers global visitors highly
differentiated personalised and diverse sightseeing landscapes The dazzling panoramic view of Sanya International Duty-Free
along with leisure and entertainment experiences. It attracted 12.34 Shopping Complex
At Sanya’s Haitang Bay in Hainan cdf has made great efforts to create a model for integrated cultural-tourism development: million visitors in 2025.
1 September 2014 In 2020 In 2023 In April 2025 Case study
P h a s e 1 o f c d f S a n y a The opening of Phase 2 The Global Beauty Plaza was T h e c o m p l e x o f f i c i a l l y Expanding consumption boundaries
I n te rnat iona l Duty-Free (Yunjie Island Project) helped unveiled in Zone C; attained national AAAA-level
Shopping Complex which achieve a complementary tourist attraction status. During the 2025 May Day holiday Sanya International Duty-
opened on 1 September 2014 business mix; Free Shopping Complex attracted family travellers with diverse
covers an area of 120000 activities. It set up a “Outdoor Sports Zone” where children
square metres setting a new could participate in healthy activities such as tennis alongside
industry record and becoming their parents. The "Fun Plush Market" organised by the complex
the world’s largest standalone These milestones represent not merely physical expansion also offered children a novel entertainment experience in a
duty-free store at that time; and upgrading but are also innovative measures that aim to cute-themed environment immersive interactive scenarios first
promote the development of high-quality cultural and tourism releases of popular IP merchandise Hainan speciality plush
consumption. Each step forward underscores CDFG’s items and unique treasure hunt games.unwavering resolve and its efforts to deepen its roots in
Hainan.
20 21China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Topic 2
Case study Case study Case study
Shopping festival ignites new cdf Sanya International Duty-Free Haikou International Duty-Free City Hosts Diverse Events Through Concerts and
consumption vitality crafting fresh Shopping Complex celebrated its 11th Anniversary Celebrations
summer shopping experiences anniversary In 2025 Haikou International Duty-Free Shopping Complex
capitalised on the rising popularity of concerts (e.g. Eason Chan
4 July 2025 saw the opening of the “Shop in Hainan · 2025 On 1 September 2025 cdf Sanya International Duty-FreeFourth Hainan International Offshore Duty-Free Shopping Shopping Complex celebrated its 11th anniversary. To mark
Teens in Times Hua Chenyu Katy Perry). By collaborating with
the occasion the mall launched a series of campaigns fan clubs on check-in campaigns we effectively harnessed fan-Festival & Seventh cdf Hainan Duty-Free Shopping Festival”. including the “Hainan Private Salon” offered tenfold rewardpoints and hosted a Koi fish lottery. With the aim of being driven economies and converted celebrity traffic. Concurrently The duty-free complex leveraged the peak summer tourism a model for “trusted business operations and excellent multi-tiered benefits—including shopping discounts vouchersseason to launch the “cdf Outdoor Sports Season” attracting services” cdf Sanya International Duty-Free Shopping
Complex continuously provides quality services and targeted dining coupons transport support and experiential privileges—11 premium outdoor brands. We created immersive family- activities to attract tourists. Through initiatives such as drove footfall.friendly sporting scenarios seamlessly blending duty-free interactive “One-Day Store Manager” experiences and
shopping with parent-child tourism. themed parades we enhance brand-consumer engagement while creating a festive atmosphere. By providing generous
rewards and innovative environments the complex delivers
an immersive shopping experience for consumers.In July under the theme “Pets Love & Leisure in Haikou”
Haikou Internat ional Duty-Free Shopping Complex
established Hainan’s first “Pet-Friendly Social Space.” Threethemed zones and dedicated services delivered novel “pet-friendly” experiences for visitors.As one of Hainan’s inaugural pet-friendly malls (2024)
Haikou Internat ional Duty-Free Shopping Complex
introduced “Pet Care Kits” (containing strollers and waste
bags) and partnered with 18 F&B outlets to establish pet-
friendly dining areas. Our “Pet-Friendly Charter” standardised
services elevating pets from “permitted access” only to
Over the past 11 years cdf Sanya International Duty-Free Shopping tourist attraction. This journey has written a remarkable chapter in being a “premium experience” reflecting our humanistic care
Complex has evolved from a policy-driven entity to an innovation Hainan’s high-quality development providing steady momentum and commercial innovation.leader transforming from a dutyfree shopping landmark into a national for the construction of Hainan into an international tourism and
consumption centre.Haikou International Duty-Free Shopping Complex
Case study
Integrating oriental floral and Chinese garden aesthetics to create culturally immersive experiences
In October marking its 3rd anniversary Haikou International
Duty-Free Shopping Complex debuted a multi-dimensional
In May 2025 for the cdf Global Shopping Festival themed
“Carnival” interactive experience.around flowers the company created a New Chinese Aesthetic
space inside the Haikou International Duty-Free Complex atrium
The atrium was transformed into a “Skyline Secret Forest”
designed to reveal a unique vista at every turn. It launched
amusement park. Using “MAX Play Coins” consumers could
a Chinese style hair-pinned flower makeup experience
unlock five experiential zones—dining beverages games
offering customers a complete hair-pinned flower makeupshopping and entertainment—shifting from “transactionaland photography service. Drawing inspiration from traditionalshopping” to an “immersive stay.” Activities like clown
Chinese gardens the company specially crafted beautiful
parades and carnival theatres amplified recreational appeal
immersive spaces such as the Floral Charm Pavilion and the
making duty-free shopping a memorable leisure journey.Lucky Bell Pavilion providing photo opportunities that allowed
customers to encounter oriental aesthetics while shopping.
22 23China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Topic 2
Xi’an MacauIntangible Cultural Heritage Activities At cdf Xi’an Downtown Duty-Free Shop and cdf Xi’an Departure cdf Macau Grand Lisboa Palace Shop organised “WelcomingDuty-Free Shop staff greeted customers in Tang-style costumes the Year of the Snake Couplet Writing” activities so that
while offering complimentary costume experiences and visitors could experience the festival through brushwork. It also
traditional pastries and beverages were provided for sampling. participated in Macau’s iconic Chinese New Year Float Parade
During the 2025 Spring Festival the first Chinese New Year at Sai Van Lake Square on the third day of the lunar new year
following the successful inclusion of the Spring Festival on the
UNESCO Intangible Cultural Heritage list the company planned adding its own flair to the celebrations.and staged a series of Spring Festival celebration activities themed
“Welcoming the Year of the Snake with cdf”. The events which
were based on its duty-free policy combined aspects of traditional
Chinese culture with modern-day consumer demands.The company orchestrated a grand Spring Festival celebration
across its six stores in Hainan blending duty-free shopping with
traditional Chinese culture. Through folk heritage showcases
exclusive shopping perks and immersive cultural tourism
experiences the campaign cultivated an exuberant festive vibe
providing consumers with an unforgettable duty-free shopping
experience as well as the chance to enjoy traditional Chinese
culture at the same time.Xi’an Departure Xi’an Departure
Case study Duty-Free Shop Duty-Free Shop
Using duty-free shopping and intangible
cultural heritage (ICH) activities to refresh Hong
shopping experiences for the Chinese New Kong Cambodia
Year boosting the cultural tourism market in
Hainan DUTY ZERO by cdf at Hong Kong International Airport distributed During the festival period four cdf stores in Cambodia launched
spring couplets designed by emerging local artist Ho Wai-lam “New Year Fortune Draw” activities sharing auspicious Chinese
cdf Sanya International Duty-Free Shopping Complex designed
and launched a series of events highlighting the Spring ( 何 炜 霖 ) conveying sincere blessings through calligraphy and blessings in creative ways and drawing extensive customer
Festival. We used elements of traditional Chinese culture and promoting fine traditional culture. engagement.transformed them into a tangible interactive experience for
families. By deeply integrating ICH performances folk custom
experiences and public welfare initiatives we cultivated a
vibrant festive atmosphere and created an immersive cultural
spending experience for visitors. During the Chinese
New Year holiday cdf
On the main square an artistic installation in the shape of a Sanya International Duty- On the seventh day of thesnake with the slogan “Soaring to New Heights in the Year of Free Shopping Complex Chinese New Year thethe Snake” attracted a large number of tourists who took photos welcomed a total of complex received over
with it as a keepsake. Moreover carefully designed activities
including fish lantern dance parades ICH fire pot shows fire
knife craftsmanship displays traditional Chinese music and
Chinese-style live performances were staged to allow locals
and tourists to experience the festival atmosphere up close.We also set up five ICH handicraft experience zones – one for
calligraphy sugar painting paper-cutting lacquer fans and
rubbing prints respectively – which were popular among visitors
from all age groups. These handicraft activities allowed families 520000 84000
to enjoy joyful festive moments beyond shopping. visitors visitors
Vibrant festival celebrations extend beyond cdf Sanya International Duty-Free Shopping Complex:
Haikou
Moving forward the company will continue to optimise its
cdf Haikou International Duty-Free Shopping Complex curated a
series of Spring Festival celebrations rich in festive traditions under business model and pursue experiential innovation. We are fully
the theme “Welcoming the Year of the Snake with cdf”. The event committed to building a premium platform that integrates “diningfeatured traditional festive merchandise limited-edition spirits folk accommodation transportation sightseeing shopping and
calligraphy and debut premium products from our proprietary
brand “CDF Health”. The complex held various activities including entertainment” to offer a holistic travel experience.traditional cultural parades auspicious lion dance ceremonies
and a “God of Wealth” procession that created a New Year’s fair
ambience delivering an unforgettable festive experience.
24 25China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
01
Principles of
Governance
28 Robust Governance System for Long-term
Stable Operations
38 Enhancing Risk Management and Internal
Controls and Upholding Business Ethics
44 Enhanc i ng I n fo rma t i on Secu r i t y and
Implementing Privacy Protection
CTG DUTY-FREE actively responds to United Nations (UN)
Sustainable Development Goals (SDGs) 16 and 17 and
has been continuously improving corporate governance
and empowering corporate sustainability with ESG.China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
Professional backgrounds of Board members
Robust Governance System for Long-term Stable Operations
Environmental
protection/
Information energy
Name Business Retail industry Finance & Legal expert Digital conservation Management accounting transformation security/cyber and emission
Corporate Governance security reduction/
resource and
energy use
Robust Governance System
1 FAN Yunjun ? ? ? ?
The company has established a governance system consisting team. The executive management team serves as the company’s 2 LIU Kun ? ? ?of the Party Committee General Meeting of Shareholders the executive body exercising powers in accordance with the “Articles
3 WANG Xuan ? ?Board of Directors and the Management with a clear division of Association” and the authorisation of the Board responsible
of authority responsibilities and regular operations. The Party for operation implementation and administration. The Board of CHANG ? ?
Committee plays a leading role in “setting the direction managing Directors carries out its work strictly with the “Articles of Association” 4 Zhujunthe overall picture and ensuring implementation” performs decisive and the “Rules of Procedure of the Board of Directors”. Four special 5 WANG Yuehao ? ?
or directional oversight duties in major decision-making processes committees namely the Strategy and Sustainability Committee the 6 GE Ming ?
and implements the decisions and plans made by the CPC Central Audit and Risk Management Committee the Remuneration and
Committee and national development strategies. The General Evaluation Committee and the Nomination Committee have been 7 WANG Ying ?
Meeting of Shareholders represents the decision-making authority set up under the Board of Directors to provide consultation and 8 WANG Qiang ? ?
exercising its power in accordance with the law. The Board of advice to the Board on significant decisions. In 2025 the companyDirectors plays the role of “setting strategy making decisions and convened 4 shareholder meetings (including one each for A-share The company incorporated sustainable development governance into strategic decision-making and daily management strengthenedpreventing risks” exercising decision-making power on major and H-share holders) and 7 board meetings. The special committees awareness of sustainable development governance in a practically manner and constantly promoted standardisation and institutionalisation.operating management matters of the company in accordance with of the board of directors held 16 meetings in total. Among these Departments and affiliated companies have designated sustainability governance officers to oversee the implementation of relevant
legal procedures and the “Articles of Association” and enhances meetings the Board of Directors Strategy and Sustainability measures. For details please refer to the “Statement of the Board of Directors” section of this report.management and supervision of the executive management Committee held 2 meetings in total.CTG DUTY-FREE Sustainable Development Governance Structure
General Meeting of
Shareholders The highest decision-making authority for the company’s sustainable development matter
(Authority)
reviews and approves major decisions and improvement suggestions related to ESG
The Board
Board of Directors of Directors * Main Committee on Sustainability Governance
(Decision-making Body) * conducts research and makes recommendations on matters relating to the Company's sustainable
development including but not limited to vision targets and policies;
* studies the Company's sustainable development strategy and the material issues that stakeholders are
concerned about and put forward corresponding suggestions;
Board of Directors Audit and Board of Directors Board of Directors Strategy and Board of Directors Remuneration * tracks and inspects the implementation and improvement of sustainable development matter to ensure
Risk Management Committee Nomination Committee Sustainability Committee and Appraisal Committee The Strategy and that the management and decision-making mechanism of important sustainability issues including
but not limited to environment anti-corruption occupational safety and health comply with the
Sustainability Committee of requirements of relevant laws and regulations;
the Board of Directors * reviews the Company's reports on sustainable development matters and reports to the Board of
Management Directors.* Managing and coordinating the sustainable development related work
CTG DUTY-FREE has formed a corporate governance system including two female directors representing 25% of the board of
* leads the company's sustainable development work and establishes
The Sustainable Development Leadership
based on the “Articles of Association” and concerning the “Rules directors. Three independent directors are mainly drawn from first- and improves the company's management system and operating Group headed by the Chairman of theof Procedure of the General Meeting of Shareholders” the “Rules class universities research institutes and think tanks. They have mechanism for sustainable development related work;of Procedure of the Board of Directors” and the “Rules of Work held important positions in large state-owned enterprises financial company; the deputy head of it is the General * integrates the development strategy image brand and operations withof the General Manager” in accordance with the requirements enterprises and accounting firms and they possess strong Manager; and its members include heads of sustainable development concepts.of the Company Law and the Code of Governance for Listed professional qualifications and experience in financial audit legal each main departments
Companies. During the reporting period the company established risk control new retail and digital transformation. Their presence
and refined its “1+N” corporate governance system. It made high- enhances the diversity and complementarity of the company’s
quality revisions including the “Articles of Association” the “Rules Board in terms of the members’ experience and capabilities. Allof Procedure of the General Meeting of Shareholders” the “Rules directors have a term of three years and accessible for re-election Information Disclosureof Procedure of the Board of Directors” the “Independent Director when their term of office expires if eligible. Independent non-System” and the rules of procedure for special committees executive directors are not allowed to hold the position for moreThe company has formulated the “Information Disclosurethereby strengthening the foundation of corporate governance. than six consecutive years. In terms of educational background 3 As an A+H l isted company CTG DUTY-FREE has beenManagement System” to strengthen its management of information
We continued to enhance the operational mechanisms of the directors have doctorate degrees 4 have master’s degrees and addressing the differences in capital market regulatory concepts
disclosures including sustainable related information and protect
Board optimised the Board’s composition actively promoted one has a bachelor’s degree. The directors have a balanced mix and rules between the A-share market and the H-share market.investors’ legitimate rights and interests. The company discloseBoard member diversity and leveraged the effectiveness of special of knowledge and skills. They obtained degrees in various areas The company follows the principle of “early start frequentinformation truthfully accurately completely promptly and fairly incommittees with a view to substantially improving the quality and and possess experience from different industries and sectors. The communication and focus on quality and efficiency” to optimise its
strict compliance with the Company Law the Securities Law and
efficiency of decision-making. current Board is characterised by significant diversity in terms of system for regular reporting announcements and key information
other laws and regulations as well as the relevant regulations of the
skills experience knowledge gender age and other areas in disclosure and to regulate related-party transactions dividend
We are committed to cultivating a professional and diverse CSRC SSE HKEX. We continue to regard “zero-error” information compliance with the requirements on Board diversity. planning and other details. In line with SASAC’s requirements for
Board of Directors that aligns with the strategic positioning of disclosure as its basic goal and we are steadily improving our enhancing the quality of listed central enterprises the company
the company as a world-class tourism retail enterprise. As of 31 The company’s senior management consists of 8 executives information disclosure system accordingly to effectively protect prioritises investor needs by innovating disclosure content and
December 2025 the company’s Board comprised eight directors including 2 female executive representing 25% of senior shareholders’ right to know and enhance the effectiveness of our formats and continuously improving transparency and granularity.management personnel. information disclosures.
28 29China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
Investor Relations Case studyThe company str ict ly compl ies with the Company Law protect investor rights in 2025 the company revised the “Investor cdf successfully hosts the 2025 Investor Open Daythe Securities Law the Listed Company Investor Relations Relations Management System” actively responded to market
Management Guidance and other laws and regulations. To demand and carried out a series of appealing multi-tiered On 28 November 2025 to enhance cap i ta l market
improve corporate governance deliver greater overall value and investment activities for the capital market and investors. understanding of cdf’s value the company hosted its 2025Investor Open Day under the theme “Riding the Tide Embracingthe Ocean”. The event attracted over 300 participants including
2025 sovereign wealth funds public funds private equity funds and > > > > > > > > > > individual investors who collectively explored the company’s
new development opportunities under the Hainan offshore
Held 2 business tracking Staged 3 performance duty-free policy.exchange meetings presentations Conducted 74 investor surveys
During the site visit investors conducted their first on-site
inspection of the construction site and showroom model of
Sanya International Duty Free Shopping Complex Phase III
project and also visited Phase 1 project. The itinerary included
flagship brand boutiques the membership service zone and
cdf Health among multiple settings.Conducted 3 field research activities Interacted with about 3202 investors
Sustainable development strategy
CTG DUTY-FREE strategic vision and strategic objectives
including 2764 institutional investors
Held 126 strategy sessions Fielded over 1000
with brokers investor hotline inquiries Sent 100+ email responses Refine the green development working mechanism Focus on carbon peaking and carbon neutrality initiatives
integrating energy conservation and environmental to propel the comprehensive green transformation
protection concepts into daily operations for unified of operations. This includes implementing green
advancement. This involves strengthening construction practices throughout project
top- leve l des ign enhancing f inancia l
s u p p o r t i m p l e m e n t i n g r i g o r o u s lifecycles strengthening green supply
supervision and assessment and chain management and enhancing
intensifying awareness campaigns energy-saving and environmentally
to systematically drive the green protective operational capabilities.transformation of production and
operational models.To become a first-class
Guided by the needs of investors the company continuously improve the quality of investor relationship management and travel retail operator with
global competitiveness
enriches and improves the smooth investor communication convey corporate investment value to the market precisely and
international influence
channels to enhance pertinence and effectiveness. We also timely to promote high-quality development of the company. W e c o n t i n u o u s l y c o n d u c t and leading profitability. The company is intensi fy ing
env i ronmenta l publ ic wel fare its targeted assistance work as
Diversified Communication Mechanism activities vigorously promote the a central enterprise researching
concept of green consumption
and popularise green low-carbon and formulating post-transition period
energy-efficient and environmentally friendly support measures and exploring ways to
Investor relations Strategy sessions with The SSE
Investor reception day products. cdf provides customers with green deepen the shift from “one-way assistance” to emails brokers e-interactive services encompassing the pre-trip during-trip and
platform “collaborative innovation.”post-trip stages.Online and Offline
The investor Advocate for green consumption and build a Deepen rural revitalisation effortsinvestor research
hotline green service systemmeetings
Investor Relations
Roadshow WeChat official account
presentations Field research activities Performance and applet
The company’s presentations General Meetings of
official website Shareholders
30 31China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
Strategic positioning Planning for Sustainability
Co-creation
With high-quality development as our core direction we have
co-existence owned enterprise and we are preparing for a new stage ofco-sharing implemented the five development concepts of “innovation development under the direction and goals of medium and long-coordination going green openness and sharing”. CTG DUTY- term and are striving to achieve these goals.FREE actively fulfils its social responsibilities as a central state-
Take actions that promote shared development
For the country and society For customers
strategies and common prosperity
Stepping up rural vitalisation
Serve as a key driver of national strategies build a Commit to meeting people’s growing demand for a
first-class brand image and social influence maximise better life treating customers as co-creators of value Boosting regional economic development
value and meet unified political economic and social and delivering high-quality fashion products premium Improving of income distribution and sharing the
fruits of company development
responsibilities. services and lifestyle experiences.Purpose-driven Customer- Adhere to green development principles and 02
commitment centricity advocate for the peak emissions and carbon 01
neutrality goals
CTG DUTY- Strengthening green building capabilities and
FREE implementing “four savings and one conservation” Planning for
Improving green logistics capabilities to reduce Sustainability
shipping costs
Enhancing green warehousing capabilities to make
warehousing more intelligent 03 Actively participate in public service
For the industry For employees Building green duty-free complexes
Improvement of public service system
Promoting green consumption and facilitating the
green transformation of consumption Development of public service projects
Lead the industry in terms of scale efficiency and Share the fruits of corporate growth with employees
operational excellence foster collaborative and healthy empower them through value-driven development and
competition innovate alongside suppliers and partners serve as a platform for their professional advancement.and cultivate competitive-cooperative relationships with
peers.The company has been included in various domestic and international sustainability indexes demonstrating capital markets’ recognition of
the company’s ESG efforts.Collaboration Shared growth
Hang Seng (China A) Corporate Sustainability FTSE4Good Index Series
Benchmark Index (“HSCASUSB”)
Continuously improve
enterprise value
Hang Seng Stock Connect China A ESG Leaders Index CSI 800 ESG Benchmark index
Sustainability Targets Hang Seng Stock Connect China A ESG 50 Index CSI ESG 300 Growth Index
Hang Seng Stock Connect China A 300 ESG Index CSI Huaxia Bank ESG Index
Hang Seng Stock Connect China A 300 ESG Enhanced Index CSI 300 Carbon Neutrality Index
To build a central state-owned enterprise that
upholds the principles of integrity safety Hang Seng SCHK China Central Central State-owned
SSE 50 ESG Index
environmental awareness and harmony. Enterprises (SOEs) ESG Leaders Index
Hang Seng SCHK China Central SOEs ESG 40 Index SSE 180 ESG Benchmark index
32 33China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
CTG DUTY-FREE’s 2025 ESG performance and 2026 ESG targets Stakeholder Communication
Sector Achievement of 2025 ESG targets 2026 ESG targets Stakeholder Communication Mechanisms
* Continued to advocate energy conservation and emissions reduction and * Continue to advocate energy conservation The company attaches great importance to communication with management to better respond to their expectations and create
improved green operations management capabilities and energy efficiency and emissions reduction and improve green
* In 2025 the company strictly complied with laws and regulations related operations management capabilit ies and
stakeholders and actively builds a robust internal and external value for them.Green office to energy conservation and ecological environment protection and there energy efficiency communication platform. We pay attention to material issues
were no major violations or mass incidents. It was not punished or reported * Avoid major incidents involv ing energy conservation or environmental protection of concern to our stakeholders and continuously reinforce our by environmental protection departments at all levels and the level of
environmental compliance remained good violations and avoid penalties or notifications from environmental protection authorities
Stakeholders Stakeholder expectations Communication and participation mechanism Corporate response
* Haikou International Duty-Free Shopping Complex (Block No.1) obtained
2-star Green Building certification LEED Gold certification Improvement of market capitalisation
* Haikou International Duty-Free Shopping Complex (Block No.4) obtained and profitability
2-star Green Building pre-certification
* Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 Hotel * Fol low green bui lding standards in new Protecting shareholders’ rights and Periodic reports and announcements
Project obtained 2-star Green Building pre-certification construction projects and apply for green interests Prov is ion o f t ru th fu l and adequate Communication via SSE e-interactive
* Sanya International Duty-Free Shopping Complex Phase 3 Project obtained building certifications Standardisation corporate governance information disclosureplatform Official website new media
Green WELL platinum pre-certification mid term LEED platinum pre-certification * Cont inue to p romote energy-e f f i c ien t transformation of existing facilities Accurate information disclosure platforms telephone fax and emails Improvement performance and generate building * Increased the use of renewable energy China Travel Building (formerly
Haikou International Duty-Free Shopping Complex (Block No.1) has [built * Actively explore the use of new energy sources Shareholder/Investors Smooth investor communication
General Meeting of Shareholders profits Diversified investor communication
rooftop photovoltaic and car shed photovoltaic power generation facilities] * Facil itate brand partners to obtain LEED
p e r f o r m a n c e p r e s e n t a t i o n s channels
Improvement of ESG performance roadshows analyst meetings investor Improvement of ESG practices
* The under-construction Sanya International Duty-Free Shopping Complex certification Business Strategies reception day investor seminars
Phase 3 Commercial Project has approximately 18000 square meters of
photovoltaic installed on the roof Changes in Industry Policy
* Worked with brand partners to apply for LEED certifications: added 1 LEED Business Development Directions
platinum certification and 2 LEED gold certification
Meeting product quality
* The company revised the safety production responsibility system for all Product quality guarantee Communicat ion dur ing serv ice
employees clarifying the safety production responsibilities of the company’s process Good service qualityImprovement of shopping experience
leadership team various departments and positions * 100% coverage o f opera t iona l sa fe ty Diversified after-sales channels Improvement of the mechanism of after-* 100% coverage of operational safety responsibility signing 86 “Responsibility responsibility Consumers Protecting customers’ legitimate rights sales serviceLetters for Achieving Safety and Environmental Protection Goals” with various * 100% coverage o f opera t iona l sa fe ty and interests Customer satisfaction surveys Innovative service practicedepartments and affiliated enterprises and all employees signing “Safety and inspections (for all places)Environmental Protection Responsibility Letters” * 100% coverage of operational safety training
Operational * Held 1385 training sessions including external safety specialist training (for all staff) Enhancement of the remuneration and
safety safety production knowledge and skills new employee onboarding training * No safety accidents and no work-related welfare system
fire protection anti-terrorism construction safety occupational health fatalities throughout the year Guaranteed remuneration Improvement of the system for general
typical accident case warning education were organized with 75400 * Continue to enhance automation and smart Good working environment Employment contracts meetings of employee representatives
participants operations to empower operational safety
Improvement of communication Workers’ representative congresses Provision of a strong career development * Spent a total of CNY37.14 million in operational safety in 2025 * Guarantee investments in operational safety
mechanisms Seminars and condolence visits ladder* No production safety accidents hazardous incidents or other safety Employees
and environmental accidents that have caused serious social impacts Employee development and career Diversified staff trainings
happened and no casualties or significant property losses have occurred paths Various staff activities
* Completed the re-election for our headquarters trade union committees in Establishment of healthy and safe working
accordance with established policies and convened three sessions of the * Guarantee employee rights and interests environment
workers’ representative congresses which safeguard our employees’ rights * Caring for employees providing employee
Employees to be informed to participate to express and to supervise
benefits
* Guarantee investments in employee training Honest fair and provision of mutual Daily business exchanges
Legal perform of contracts and agreements
* Spent a total of CNY232 million in employee welfare * Guarantee investments in launching training benefits Business meetings and negotiations Arrangement for open and fair tendering* Carried out more than 1000 key training projects with a total of 160000
participants; and total training hours; exceeded 788500 hours; and on activities
Maintenance of long-term cooperation
Document correspondence Open and transparent business principles
average each employee participated in 55 training hours * Continue to diversify training courses Complying with business ethicsBusiness partners Procurement activities Collaborations on environmental Projects
Promotion of supply chain’s
Industry forums Continuous diversification of cooperation sustainable development model
* Conducted onboarding integrity training for 100% of new leaders * Conduct onboarding integrity training for 100% Research via site visit Actively participation in public services
Anti * Carried out 7 anti-commercial bribery and anti-corruption trainings for all of new leaders
Community engagement and
employees 3 anti-commercial bribery and anti-corruption trainings for * Conduct onboarding integrity training for 100% Development Public service activities Targeted assistance projectscorruption Managerial employees and one anti-corruption training for directors and of new joiners Public services supportadvocacy Targeted assistance Community development supportsupervisors including independent directors with a training coverage rate * Achieve a 100% coverage rate in annual anti- Communities Social development concerns Volunteer services Advocation of green development
of 100% corruption training
Participation in relevant trainings and
conferences Abiding by laws and policy requirements
* Invested CNY 16.88 million in non-reimbursable assistance funds Law-abiding compliant operations Daily communication and information Tax payment in accordance with laws
mobilised CNY 10.05 million in various types of support funds donated Undertaking social responsibility reporting Compliant information disclosure
school uniforms worth about CNY 0.6 million Government and Document notifications
* Supervised our employees serving as temporary cadres in Menglian county regulators Promotion of economic development Promoting regional economic development
and Ximeng county Yunnan province on the implementation of 16 support * Increased the company’s support for key Cooperation between government Increase of local employment
Public projects across the five pillars: industrial revitalisation talent revitalisation
targets with a v iew to improving rura l and enterprise
cultural revitalisation ecological revitalisation and organisational industries rural infrastructure and rural services revitalisation governance Performing duties as an associat ion
* [leverage the company’s influence in supply chain collaborate with * Closely monitor and respond to community Daily communication Member
multiple partners and explore the path of innovation and green sustainable and societal needs
Promotion of industry development Document notifications Participating in conferences and activities development from brand merchants to consumers]
Pa r t i c i pa t i on i n assoc i a t i ons ’ held by industry associations* Actively participate in environmental protection education community Industry associations
activities and other public welfare undertakings conferences and activities Sharing our experiences with a wide
audience
34 35China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
Double Materiality Assessment for Sustainability Topics CTG DUTY-FREE’s double materiality topics database
In accordance with the requirements from Sustainability Report We collect topics of concern to critical internal and external The company assesses the double materiality of sustainability materiality assessment matrix and finally identified 7 topics of both
(Trial) issued by the Shanghai Stock Exchange the company stakeholders includes employees management investors topics from the two dimensions of “financial materiality” and “impact financial materiality and impact materiality 14 topics of only impactconducted a double materiality assessment of key topics. consumers brand names etc. through questionnaires and materiality”. Based on an effective selection from the database and materiality but not financial materiality and 4 topics that are neither
Considering the unique characteristics of the travel retail industry interviews. Then we perform the double materiality assessment sufficient stakeholder engagement the company has depicted a of financial materiality nor of impact materiality.and its operational focus the company evaluated whether each and rank the results to identify the company’s financial material and
identified topic significantly impacts corporate value (hereinafter impact material environmental social and governance topics and Important
referred to as financial materiality) and whether its performance disclose them in the Report.in respect of these topics could substantially affect the economy 2
society and environment (hereinafter referred to as impact
materiality). 3 6 5
471112
CTG DUTY-FREE’s process for assessing the materiality of sustainability topics
81413
15
Identify the topics and form a database 17
16
01 We form a basic database based on the findings of To form the final database we incorporated macro 18the Sustainability Report (Trial) issued by the Shanghai policies key areas of the company’s sustainability work
Stock Exchange the ESG Code issued by the Hong feedback from stakeholders industry topics concerned
Kong Stock Exchange and the ESG Metrics System for by capital markets such as MSCI S&P DJSI CDP
ESG Reports of Listed Companies Controlled by Central Morningstar and topics disclosed by peer companies at
State-owned Enterprises issued by the SASAC; and in home and abroad. 19
combination with international sustainability frameworks 9
and disclosure standards such as the GRI standards 22 23
UN SDGs the Sustainability Accounting Standards Board 10
(SASB). 20 24
2125
Communication and survey with stakeholders
Not relevant
02 Prepare the online questionnaire to assess material Interv iew stakeholders to col lect feedback and Financial materialitysustainability topics and the questionnaire is designed suggestions on sustainable development practices from
to take into account two dimensions (financial materiality supply chain partners ESG specialist and others on CTG DUTY-FREE’s double materiality topics matrix
and impact materiality) then invite stakeholders to rate our sustainability practices and their views on future
the materiality of relevant topics; sustainability strategy.Financial materiality Impact materiality
Engaging with key stakeholders and experts
03 In terms of financial materiality the financial department The topics with potential financial materiality that had Environment Social Governanceidentified topics with potential financial materiality which been confirmed on a preliminary basis were then
were then reviewed and confirmed by the relevant compared against the company’s key areas of business
departments who are responsible for operational management SASB and disclosures of peer companies 1 Climate change tackling 11 Excellent service (Note) Anti-commercial bribery and 22
management of these topics. at home and abroad with no significant differences anticorruption
found. We then further screened the list of topics with 2 Environmental compliance management 12 Safety and quality of products (Note)
financial materiality. 23 Anti-unfair competition
3 Packaging material management 13 Employees
24 Communications with stakeholders
4 Waste disposal 14 Contributions to the society
Topic confirmation and approval 25 Due diligence
5 Energy usage 15 Supply chain security
04 The assessment results of the double material ity Relevant departments further strengthened sustainability 6 Usage of water resources Data security and customer privacy 16 assessment were then submitted to the Board’s Strategy management and disclosures regarding the approved protection
and Sustainability Committee under the Board for financially material topics. 7 Circular economy 17 Intellectual property protection
deliberation; Collaborating with brand partners to
8
promote environmental protection Response to national strategies and 18
rural revitalisation
Review and continuous follow-up 9 Pollutant discharge 19 Innovation-driven
10 Ecosystem and biodiversity protection
20 Ethics of science and technology
05 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. Equal treatment to small and 21
mediumsized enterprises
Note: The name of sustainability topics has minor revision in 2025.
3637
Impact materialityChina Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
In 2025 we continued to strengthen significant risk monitoring Deepening and expanding the study of
Enhancing Risk Management and Internal Controls and Upholding Business Ethics to identify relevant changes. For significant risks identified at the beginning of the year we continuously tracked and assessed them early warning indicators for risks
on a quarterly basis and adopted a checklist-based management
approach. By updating our risk registers and reviewing changes In order to further improve the company’s risk quantification
in the external environment we identified potential operational capabilities and enhance the scientific and practical design of early
risks and ensured that every identified significant risk was being warning indicators for risks the company has carried out a re-Risk Management monitored and controlled on an ongoing basis. In addition we inspection of early warning indicators for risks for the headquarters
accelerated the development of our tiered and categorised risk starting from its business objectives. Based on a retrospective
analysis of historical tracking data we have optimised and refinedThe company formulated the “Measures on Comprehensive Risk and management; clarify the collection collation and reporting of management system at the subsidiary level which enables us toconduct systematic assessments based on the nature of their the existing indicator system. At the same time key subsidiariesManagement” and the “Management Regulations on the Reporting significant operational risk events; and safeguard the company’sbusiness as well as their risk management capabilities and risk have been selected to serve as pilot entities in our effort to activelyof Significant Operational Risk Events” to establish an effective and stable operations and sustainable development. performance. For six Class A subsidiaries we have put in place an extend early warning and monitoring of risks to key third-level
comprehensive risk management system; improve risk prevention early warning framework comprising 91 key indicators spanning enterprises.operating performance financial position inventory compliance
Risk Management-related Governance Structure safety and environmental protection. We monitor these indicators In 2025 the company actively advanced the digitalisation of
on a quarterly basis to identify risk trends and patterns and risk management. By integrating with the company’s platform
The Board of Directors is the leadership group responsible for the company’s overall risk management potential risk points which informs our design of timely preventive development we achieved online and visual presentation of risk
Board of and is responsible for overseeing and supervising the company’s risk management to ensure its overall measures. information of key subsidiaries. This enhances the clarity of risk
Directors effectiveness. analysis and strengthens data-driven decision-making transitioning
Improving the evaluation report our risk management approach from experience-based to data-driven with risk governance precision and proactivity being
Audit and Risk Risk internal control and compliance responsibilities have been incorporated into the duties of the Audit
Management mechanism and strengthening the elevated.Committee under the and Risk Management Committee under the Board of Directors to refine the risk management corporate foundation for risk management
Board of Directors governance structure. Strengthening risk event handling
In order to strengthen overall analysis and trend analysis of internal
General The company’s general manager is responsible for guiding the company’s overall risk management and external risks and enhance the company’s basic capabilities In order to properly prevent and resolve the major business risks
approving risk management matters subject to its authorisation and authorising the company’s leads in
manager in respect of enterprise risk management the company has further of the company and its affiliated enterprises a comprehensive charge to be responsible for organising and promoting risk management. strengthened the risk assessment processes of key subsidiaries. investigation of risks and hidden dangers was organised in 2025.While offering guidance on the objectives methods and tools The company thoroughly investigated risk events in the business
Leads in charge of The company’s leads in charge of risk management preside over the daily work of comprehensive risk
of risk management reporting we are requiring for the first time areas of the headquarters and affiliated enterprises and the
management. They are accountable to the general manager and they exercise their risk management that key subsidiaries prepare their own risk management reports causes of risks were analysed in depth. We formulated disposal
risk management duties subject to the general manager’s authorisation. based on annual risk assessments. The company considers and resolution measures to properly prevent and resolve major
these risk management reports to be an important method for business risks and continuously improve the company’s business
comprehensively summarising evaluating and supervising the risk management capabilities.Departments in charge The departments in charge of comprehensive risk management are the Legal and Risk Control Department. management work of each key subsidiary. Gradually we will form
They are responsible for constructing and operating the comprehensive risk management system;of comprehensive risk organising coordinating supervising and inspecting risk management; and evaluating the effectiveness of a risk management model that entails “highlighting key points Conducting specific training on riskmanagement subsidiaries’ risk management. They provide professional advice for the company’s major risk decisions. hierarchical management and three-dimensional risk preventionand control” enabling quantitative full-coverage visualised compliance topics and cultivating a risk
management of operational risks across all the company’s management culture
Organising a company-wide risk assessment to study and determine the risk situation important sectors.in the coming year The company delivers training on compliance risk topics to all staff
on a quarterly basis to enhance their awareness of the importance
The company performs an annual assessment of material risks based on two dimensions: the possibility of risk and the magnitude of of compliance issues.impacts.Case study
* The first objective is to establish the risk classification of indicators and early warning thresholds are set andeach business fully apply the results of risk loss event cooperating with the risk management system that Specific Training on “Ensuring Compliance and Preventing Legal Risks When Trading State-analysis internal control supervision and inspection achieves daily full coverage and visual managementquantify the relevant criteria for risk analysis and form of operational risks across all the company’s important Owned Assets”a panoramic risk list for each business through bottom- sectors. In March 2025 we conducted a specific training on “Ensuringup aggregation of risks.Compliance and Preventing Legal Risks When Trading State-
* The third objective is to evaluate the probability and* The second objective is to further deepen and expand impact of each risk according to specific risks in the Owned Assets” with both in-person and virtual attendance
the study of risk early warning indicators the key risk database. The evaluation team comprises the options. The training was delivered by a partner from Zhong
business areas are selected and the selection of company’s management various departments and Lun Law Firm. To enhance our employees’ legal awareness the
industry indicators and the design of early warning key subsidiaries. Ultimately the team determines session addressed typical legal risks associated with the trading
thresholds are studied from both quantitative and the risk priorities for the coming year based on the of state-owned assets tailored to our governance business
qualitative aspects to form a holistic risk early warning comprehensive assessment and response plans are
indicator applicable to the company. Starting from the devised for the top 10 risks. The company monitors and model and the industry in which we operate. A total of 130+
existing system of early warning indicators for risk tracks its risk response on a quarterly basis to improve relevant staff members from CDF Investment Development the
the company has been optimising and refining how its risk response capabilities. Sanya Downtown Store and the Xinhaigang Store attended the
training.
38 39China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
The department consistently prioritises remedial actions and
Case study Compliance managementcoordinates efforts to develop effective actionable remedial
plans based on internal and external audit findings. This helps
Promoting the Spirit of the Constitution and Strengthening the Foundations of Compliance – enhance governance standards and address control weakness or Compliance serves as a cornerstone for the company’s sustainable
Launching Our Promotional Campaign to Observe National Constitution Day in 2025 deficiencies across audited units. In 2025 based on audit findings growth. To enhance lawful and compliant operations whilst
we established itemised remedial plans with detailed corrective
To mark National Constitution Day in meeting compliance risk mitigation requirements we have put in actions timelines and accountability assignment. Through rigorous
2025 in December we conducted place the “Compliance Management Measures” to continuously monitoring we ensured closed-loop resolution of issues and timely
a ser ies of promotional act iv i t ies strengthen our compliance policies and processes. We require completion of all corrective actions within reasonable deadlines.themed “Studying Promoting and For several subsidiaries we ordered immediate corrective actions that every key third-tier affiliate set up a Compliance CommitteeImplement ing Xi J inping Thought reflecting the effectiveness of our internal control enhancements. which is responsible for reviewing and implementing key rule of law
on the Rule of Law and Raising Our
Understanding and Awareness of Furthermore we strategically leveraged the remedial process
and compliance programmes. By ensuring law-based businessthe National Constitution”. During to drive systemic improvements incorporating recurring issues
operations management and governance we aim to create a
the campaign constitution-themed into our policy revisions and process optimisation initiatives. This
vertically integrated compliance governance structure across
approach successfully established preventive mechanisms to avoid the organisation. In May 2025 we officially appointed a Chief exhibition panels were on display in the
central areas of our office buildings. In recurrence of similar issues. Compliance Officer and established a total of 144 Compliance
an innovative manner we integrated Officers covering all key areas and critical departments across the
key constitutional principles into our Our Audit Department rigorously enforced accountability and put headquarters and its affiliates.compliance requirements for duty- in place controls to safeguard state-owned assets. Through robustfree operations delivering the key Law Safeguards Life in All Stages (《 法 internal controls they effectively drove the fulfilment of roles and In accordance with our Annual Compliance Review Plan wemessage that “the national Constitution 护 一 生》) a promotional film about the responsibilities and enhanced compliance awareness and a sense conducted and completed our annual compliance review for allis essential to law-based operations”. national Constitution was broadcast on
loop via digital screens in the lobby on the of responsibility among management at all levels. This helped business units in 2025. Covering both the headquarters and its In doing so we effectively incorporated
the spirit of the national Constitution first floor and the canteen on the second
create a clean and transparent business environment for the affiliates our annual compliance review identified 36 compliance
into our employees’ daily work routines. floor of the company’s premises. All
company. risk items. For each identified risk item we are systematically
departments were organised to view the tracking and monitoring the implementation status of the relevant
film through staggered scheduling. While fulfilling their supervisory responsibilities they also proactively remedial actions.expanded their service functions. By accurately identifying and
disclosing risks in audit reports and suggesting risk managementAt the end of the reporting period the company had not identified the company adopts a system of “centralised leadership and We have put in place specific channels for reporting cases of non-measures they provided critical insights for company-wideany long-term emerging risks that could have a significant impact hierarchical responsibilities” which combines the comprehensive compliance across all levels of the organisation. We have released decision-making and operational improvements. Moreover they
on future business. The company will continue to conduct risk management of internal control supervision and management the “Policy for Reporting Non-Compliance” along with detailed played a key role in the non-merchandise procurement review
assessments and analyse the potential impacts of emerging departments with the professional management of functional process effectively shifting risk control to earlier stages. This guidance on how to report and resolve cases of non-compliance.risks and formulate solutions if any long-term emerging risks are departments. According to the relevant regulatory provisions the proactive approach produced notable results in terms of reducing We have received resolved and closed 13 reported cases of non-identified.could have a significant impact on future business. The company formulated the “Management Regulations on Rectification procurement costs and enhancing resource utilisation efficiency. compliance since releasing the policy. We have also establishedcompany will continue to conduct risk assessments and analyse of Issues Identified in Internal Audits”. These regulations aim a specific non-compliance database which enables us to share
the potential impacts of emerging risks and formulate solutions if to standardise relevant rectification processes strengthen the The company carry out various internal evaluations for affiliated risk alerts or indicators with relevant departments ensuring timely
any long-term emerging risks are identified. implementation of audit rectification and improve the effectiveness companies to ensure the full coverage of corporate top-down follow-up and preventive actions.of audit oversights. They also seek to clarify rectif ication internal management. Annual internal self-assessment covers
Internal control management responsibilities rectification procedures result identification all affiliated companies the evaluated areas including social
supervision and inspection responsibility constraints and result responsibility safety and health environmental protection etc.In accordance with the -Basic Standards for Enterprise Internal implementation while improving the internal audit system. Core entities perform semi-annual internal self-assessment Anti-money laundering (AML)
Control the Application Guidelines for Enterprise Internal Control regarding focused areas. On-site internal supervisory assessment
the Guidelines for Corporate Internal Control Assessment and The company have initiated the systematic construction of an is implemented irregularly. External auditors carry out the auditingother regulations the company has formulated the “Management task of annual internal control. We str ict ly comply with the Anti-money Laundering Law internal control system conducted risk analysis and diagnosis ofMeasures on Internal Control”. A robust internal control system and other laws and regulations in the regions in which we business processes throughout the system urged relevant units to
is essential to our corporate governance and key to preventing implement rectifications according to the risk diagnosis report. We According to the annual plan the company has rolled out the
operate. Accordingly we have developed AML policies and
and managing risks and maintaining compliance. Based on this internal control oversight and evaluation of its affiliated companies. procedures such as “Know Your Customer” procedures also embed own requirements on risk management and control
principle we have established a positive cycle whereby we use The evaluation aims to comprehensively assess and review transaction monitoring and suspicious transaction reporting and into specific control points and maps specific responsibilities to
sound internal control policies and processes to effectively manage the formation of stores’ risk and internal control systems and recordkeeping. The company is constantly looking for ways to information in the risk database. In this way we ensure that the
risks and identify potential improvement opportunities. identify and rectify any potential risks and deficiencies. Following further improve its anti-money laundering measures. In addition we company’s internal control lists and programmes and internal this suggestions for rectification were proposed to promote provide AML training to our employees to ensure that they are kept
control system are vertically linked and horizontally consistent. the optimisation and standardisation of the stores’ internal abreast of laws regulations and updates to our AML policies and We place a high priority on developing a robust internal control Using the system we can generate useful management tools such control processes implementing the use and optimisation of the procedures.system which we consider essential to preventing potential as a practical internal control manual that reflects the company’s internal control manual and other management tools so that
significant risks. We mandate management at all levels of entities business reality as well as risk control blacklists and whitelists. employees pay closer attention to risk prevention and control inacross the company to fulfil their primary responsibilities and We have put in place the “Supervision and Management Measures Additionally the company implements the internal control an environment in which all employees actively participate andintegrate internal controls into their strategic planning operations for Preventing and Combating Smuggling Activities Exploiting evaluations and prepares the “Internal Control Evaluation Report” promote internal control.governance and oversight process. With the Legal and Risk Duty-Free Shopping Policies (Trial Implementation)”. Working with annually which is disclosed on the SSE website concurrently as
Control Department leading and coordinating the efforts we Customs to combat the practice of the “reselling duty-free goods” the Annual Report. During the reporting period the company conducted multiple
have developed a dual internal control structure – centralised CTG Duty Free makes efforts to raise the legal and compliance internal audits including an audit of the economic responsibilities
planning and oversight at the headquarters level and decentralised awareness of consumers by informing them of the consequences In 2025 our Audit Department fully implemented the national for employee termination at subsidiaries and an audit of subsidiary
implementation at the subsidiary level. In this way we have of such practices and strengthening self-supervision.strategic decisions and plans regarding audit work and fulfilled operations and management. In respect of expense management
advanced a vertically integrated internal control system that clearly its supervisory responsibilities in accordance with the law. internal auditors performed spot-checks of vouchers to inspect the
assigns roles and responsibilities at each level. They achieved significant achievements in promoting policy performance and compensation of enterprise leaders as well as
implementation standardising the exercise of power preventing the compliance of business expenses. In addition to ethical codes
The company has established a management and organisational and mitigating risks and deepening reforms. Throughout the year the audit also covered corporate governance strategic decision-
system for internal control comprising the Board of Directors they strictly carried out our annual audit plan with an increase making human resources management financial management
Operating Department Internal Control Construction Department procurement management project management investment in both audit scope and frequency providing robust support for
Internal Control Operations Department and Internal Control management information systems and other business areas.compliant operations.Supervision Department. For internal control management
40 41China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
Anti-Bribery and Anti-Corruption Case study
We strictly adhere to the Company Law and the Prevention Advocacy against corruption Specific Training on “Preventing Unfair Competition Risk and Protecting Our Legal Rights”of Bribery Ordinance. We have put in place the “Methods forEvaluating Clean Business Practices in Personnel Selection and The company continues cultivating an integrity-based culture to In December 2025 we conducted a specific training sessionAppointment” as well as processes to supervise its implementation create a stable and law-abiding operating environment. Throughout titled “Preventing Unfair Competition Risk and Protecting Ourat the company and subsidiary levels. Legal Rights” with both in-person and virtual attendance 2024 the company implemented the “Detailed Work Arrangements options. Delivered by a partner from JunHe Law Firm theof the Company’s CPC Committee in Implementing the Opinions session provided in-depth insights into how to determine and
System and Mechanisms on Strengthening the Development of an Integrity Culture in the identify typical infringement activities in the duty-free retailNew Era” “Detailed Measures of the Company’s CPC Committee industry including trademark confusion commercial defamationThe company has formulated a supervisory and management on Further Implementation of the Central Party Leadership’s Eight- false advertising and data-related unfair competition. Itsystem covering its headquarter and affiliated companies and point Decision” to reinforce the construction of a culture of integrity systematically addressed topics including how to align pre-
established a leading group and a coordinating group for upholding and the disciplinary structure. Moreover the company held various incident compliance processes with business scenarios how to
anti-corruption and compliance training sessions engaged in anti- build a robust early warning mechanism and how to respond anticorruption. The anti-corruption leading group convened two
meetings during the year to study and analyse the development corruption dialogue with new hires during the on-boarding process
to acts of unfair competition when they occur including
suggested procedures for evidence preservation (both online
of anti-corruption Party building anti-corruption trends and the staged educational seminars for all CTG DUTY-FREE employees and offline) and emergency handling protocols. Approximately
ecosystem of corporate politics and then draws up work plans. to warn against the dangers of corruption carried out educational 100 participants from our headquarters and affiliates attended
The coordinating group comprises Disciplinary Inspection Audit activities through the “cdf e-Party” application and strengthened the training session including professionals in legal affairs risk
Inspection the Party Office the General Office Human Resources education for company cadres to remind them to distance management compliance marketing branding e-commerce
Finance and Legal among other departments held one meeting themselves from corruption and stay committed to acting with and business units.during the year. They coordinate the supervision of all parties to integrity and complying with the law.enhance supervisory effectiveness in accordance with the working
rules. The company has formulated the Implementation Plan for In 2025 the company concluded one corruption lawsuit and no
the Comprehensive Oversight System 2025 with oversight by the corruption-related violations occurred during the year. The number Intellectual Property Right (IPR) Protection
Party organisation at the core to coordinate all oversight functions of effective corruption reports received was 0.achieve coordinated oversight and concerted management We attach great importance to works related to IPR and has As of 31 December 2025 the company had obtained the following
strengthen integrity risk mitigation efforts and enhance the formulated the “Brand Management Measures” and “Trademark intellectual property rights:mechanisms and systems for governance. Use Management System” which regulates the management and
use of IPRs including the standardised management of the Brand
Reporting Mechanisms Visual Identity (VI) system and the use of trademarks. Number of IPRs such as
trademarks and copyrights Number of valid Patents
The company accepts letters visits and telephone reports and
announces telephone numbers e-mail addresses and physical Anti-unfair competition
Case studymailboxes for reporting. Our staff must strictly comply with the Specific Training on “Identifying Trademarkconfidentiality and avoidance mechanism precisely control The company strictly abides by the Anti-monopoly Law of Infringement Activities and Protecting 108 19
the information scope and the clues of problems and strictly the People’s Republic of China and the Law of the People’sprohibit any disclosures regarding the case information and Trademark Rights”Republic of China against Unfair Competition and other laws and
disposal solution. As a protection measure for whistle-blowers regulations. We participate in fair market competition according to In September 2025 we organised a specific training titledthe company’s Disciplinary Inspection Committee enforces the business ethics and market rules and forbid commercial bribery. “Identifying Trademark Infringement Activities and Protecting“Rules on the Handling of Whistle-blowers’ Reports by Disciplinary We established a comprehensive retail terminal VI system which The company is fully committed to implementing relevant legal Trademark Rights”. Delivered by legal experts fromInspection and Supervision Organs” and other regulations strictly conveys the corporate philosophy culture and norms to the public provisions including prohibitions on entering into the arrangements JunZeJun Law Offices the session focused on key aspects
prohibits the revealing of whistle-blowers’ information and giving and eventually shapes a unique corporate image.with competitors that have a detrimental competitive effect or of trademark management and protection throughout the
priority to handling the accusations with a real name; retaliation arrangements with distributors customers and suppliers that trademark lifecycle including an introduction to trademarks
against whistleblowers is strictly prohibited; any identified instances and trademark rights (exclusive rights and registered may harm competition and consumer rights and prohibitions For trademarks with more comprehensive applications the
are met with severe disciplinary action; for anonymous reports and trademarks) and identification of trademark infringement on abuse of market dominance. We continuously optimise the company has a team of professional lawyers to monitor trademark
reporting materials unauthorised checks of the whistle-blowers’ activities legal consequences of these activities and legal company’s anti-bribery mechanism to ensure its effectiveness. We infringement both at the time of registration and use; we will defend
information are strictly forbidden. remedies. All relevant personnel from our headquarters are earnest in conducting self-examinations and self-rectifications our rights vigorously in the event of a violation.and affiliates spanning functions such as legal affairs
and we do not violate any laws regulations business ethics or risk management compliance marketing branding
Dedicated Supervision market rules in business activities or engage in any unfair trading e-commerce as well as business units were required to
practices that undermine fair competition. At the same time the attend the training session.The company regularly implements special supervisory inspections company is steadily integrating the concepts and values of anti-
including monitoring and reviews before festivals and holidays. unfair competition into the daily behaviour of its employees. The Case study
These approaches cover persons who are in leadership positions company continues to attract consumers by engaging in trusted
examine their performance of duties and scrutinise their business business operations and providing excellent services and we The company has been granted two patents further solidifying its technological
expenditures. Special supervisory inspections are also conducted continue to promote anti-corruption anti-monopoly and human
for compliance operations. rights protection initiatives in relation to our suppliers. competitive advantage in the industry
On 19 December 2025 the company's independentlydeveloped “graphical user interface for consumption datastatistics and visualisation analysis display of electronic devices”and “graphical user interface for visualisation analysis displayof warehouse logistics information of electronic devices”
successfully obtained patent authorisation from the National
Intellectual Property Administration (CNIPA). These patent grants
not only demonstrate the company’s continuous innovation
capabilities but also further solidify its technological competitive
advantage and leading position in the industry.
42 43China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
Development of information and data
Enhancing Information Security and Implementing Privacy Protection security systems
The company and affiliated companies have established and system of information technology standards which establishes
improved various cyber and information management systems principles and standards for the performance of information
and standards to suit the company’s digitalisation needs. CTG technology-related work. The company’s Board of Directors is the
DUTY-FREE formulated information security management systems highest responsibility and decision-making authority with regards
Governance that cover information security management network security to information security and privacy protection. The Information
management data management information encryption rules Technology (IT) Department is responsible for specific work
information security emergency plans and other aspects of in information security and privacy protection. The Brand and
In terms of information security according to relevant laws and We have established a clear organisational structure with information security management. In this way we have developed Marketing Department is responsible for carrying out the specific
regulations including the Cybersecurity Law of the People’s defined responsibilities – the Cybersecurity & Informatisation comprehensive information security management systems that work for customer privacy protection. To keep the team updated
Republic of China the Data Security Law of the People’s Republic Steering Group and the Cybersecurity Department. We have also feature well-defined responsibilities a clear division of labour with the latest IT knowledge IT staff members are required to
of China the Personal Information Protection Law of the People’s implemented a mature standardised multi-level data security and a combination of technology and management. In line with receive regular training. The company’s membership system
Republic of China the Regulations on Protecting the Security of incident reporting mechanism which defines the vertical path and national standards industry standards and the circumstances passes Level-3 Security Certification.Critical Information Infrastructure and the Administrative Measures frequency of reporting from operational personnel to management: specific to the duty-free industry we have developed our first
for the Multi-level Protection of Information Security we have
developed a system of cybersecurity policies.Strategy
Risks Impact Response
The reporting process includes: Reporting frequency:
* Each year the company regularly conducts one or two simulation exercises
emergency activation At least one report to management every six months; Cybersecurity * Poss ib le impacts such as data leakage system in t rus ion and using phishing and other social engineering attacks which allows employees to
At least one report to the Steering Group annually; and risks damage to brand reputation learn how to identify and respond to various cybersecurity threats in a real-life environment enhancing their security awareness.reporting to management Ad hoc reports driven by incidents or audits.* Leakage of membership information
escalation to the Steering Group may cause the business to lose high- * Encrypted storage and transmission of information data masking for customer end customers and incur costs in information hierarchical access management multi-measure access control
repairing damage to its brand. member information not exportable establishing a sound system log to protect
regulatory notification etc. * Duty-f ree consumers’ data may customers’ information.be abused in a way that results in * Regarding customer service scenarios that involve substantial user privacy
violations of offshore duty-free quotas
Additionally we emphasise the requirement for immediate reporting In terms of data security the company has established a data confidentiality protocols are centred on establishing the company’s data Customer such as the smuggling of duty-free ownership. The system employs private and hybrid cloud deployment models
in critical situations to ensure the company can effectively manage three-level organisational leadership system and has reinforced the privacy goods by “purchasing agents” (traders mandating that core knowledge bases and session data reside within physically
data security risks meet compliance requirements and provide responsibilities of each level based on the 2025 annual goals. The disclosure risk reselling duty-free goods) in Hainan. isolated private environments (e.g. AliCloud/Tencent Private Cloud). Data sharing
reliable support for business development. system includes: * I l l ega l c ross-border t rans fer o f with public large language models is strictly prohibited ensuring corporate data
consumers’ data may present a remains contained. Building upon this we implement stringent internal Role-
threat to the customs supervision Based Access Control (RBAC) to manage with precision access permissions to
system; Duty-free supply chain data training data and logs. This is complemented by SSL-encrypted transmission
that has been manipulated overseas channels and audit trails for all operations mitigating the risk of internal data
may present a danger to the safe breaches resulting from unauthorised access.distribution of strategic resources.Project Steering Group; The Cloud Resources Team consists of personnel from China
Telecom while the Development Team and Business Team are
Project Owner; and
made up of company personnel. The company continues to
Cloud Resources Team Development Team and Business Team. deepen the construction of the innovation consortium data platform
and has jointly developed the CTG Duty Free Big Data Cloud
Platform R&D project (中旅免税大数据云平台研发项目 ) with
China Telecom Cloud Technology Co. Ltd. In 2025 the platform
was continuously optimised and upgraded to enhance query
performance improve data warehouse integrity finish dashboard
development and enable natural language interaction.As online business develops the company places great importance To respect and protect customer privacy we strictly abide by
on achieving a high-level balance between data security and data the Personal Information Protection Law and other laws and
value extraction. According to the Group’s Administrative Measures regulations and develop our own policy documents such as the
for Research and Development Projects (Trial) the company “CDFG Privacy Policy” the “Privacy Protection for Customerstrengthens the security management of R&D information with a Services” and the “Checkpoints for Customer Services”.particular focus on ensuring the security of large model parameters The company updated its customer privacy policy which is
user profiles and related data. available to consumers and other stakeholders on its website
(http://www.ctgdutyfree. com.cn/p/yinsizhengce.html).
44 45China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Principles of Governance
Risks Impact Response Membership privacy protection
* The company deploys an independent Large Language Model (LLM) Firewall A customer can register cdf memberships at the system of member’s cancelled account information order records and
as the first line of defence in the underlying architecture of all AI projects. This
firewall intercepts and processes sensitive data before it reaches the model member terminal (cdf membership applet cdf membership App online behavioural data for 365 days. From day 366 onwards cdf
inference layer. By implementing sensitive data protection strategies the system cdf Membership Club and Cdf (Hainan) Smart Retail Technology retains only non-personally identifiable order information such as
can automatically identify and de-identify personal identity information such as
phone numbers ID cards and bank card numbers in user inputs in real time. and other cdf platform terminals) in a self-service manner. Once transaction records for compliance and regulatory purposes.This completely eliminates the risk of original privacy data being illegally obtained the information is entered the key parts of the personal data are
or retained by the large models. Additionally the system effectively defends
against malicious command injection through prompt attack protection features desensitised; and the customer has the right to access adjust The cdf membership “Service Agreement” and “Privacy Policy”
preventing data leaks or jailbreaks caused by misleading questions. This ensures and delete his/her personal information at any time. The company are published on the company’s official website. All new members
the confidentiality of data interactions from the outset.obtains personal information from the self-input of customers and manually tick the consent box during registration. Whenever the
* As for consumer-oriented shopping assistant applications our data confidentiality
focuses on preventing the leakage of internal business strategies and ensuring does not collect personal data from third parties (except when “Service Agreement” or “Privacy Policy” undergoes updates
that response content remains within controlled boundaries. The system uses required by law). The company undertakes to delete customer the official website promptly publishes the revised versions.Possible risks such as user privacy RAG (Retrieval-Augmented Generation) technology to construct a strict “domain *l eakage mode l ha l l uc ina t ions knowledge fence” forcing the model to only retrieve and respond within the
data within the time limit required by law and does not provide Furthermore all existing members must manually tick the consent
AI application
unauthorised information disclosure official product database and activity rules. Additionally safety instructions personal data to any third parties (except when required by law). box again upon their next login.risks and loss of control over digital live are embedded in the prompt engineering process to effectively block non-
streaming content in AI applications. official channel information. This mechanism not only prevents the model from
Following membership account cancellation cdf retains the original
generating hallucinations but also strictly guards against competitors attempting
to extract internal pricing strategies or induce the model to recommend
competing products through malicious probing thereby ensuring the
confidentiality and security of core business data. Value Creation of the Membership
* For digital person live streaming scenarios our data confidentiality guidelines
focus on real-time risk control of output content to prevent unauthorised System
information disclosure. The entire process implements a dual data management
approach of “pre-event + during-event”. Specifically before the live stream all To promote the cdf membership system the company continues In 2025 the company achieved a sophisticated balance between
script data must undergo both “AI automatic review + human recheck” verification
to ensure that they do not contain any undisclosed internal information. During to expand channels enrich members benefits and deepen data security and data value extraction. In terms of safety and
the live stream we rely on real-time monitoring and blocking mechanisms to cross-industry cooperation with third-party platforms. We compliance we successfully established a comprehensive
ensure that if sensitive keywords or signs of “out-of-control” behaviour deviating
from the pre-set data range are detected in the digital person’s voice stream accelerate the promotion of the all-channel store membership protection system that covers the entire lifecycle of internal data
the firewall will immediately cut off or replace the output thereby preventing platform to enhance the convenience of member consumption. We within the CTG Duty Free Big Data Cloud Platform fundamentally
information incidents caused by the generation of uncontrollable content. continuously deepen the integration of multi-channel ecosystems eliminating the risk of sensitive information leaks and fully meeting
* The company is committed to optimising its innovation system with a focus on and cross-industry collaborations to achieve complementary national laws regulations and regulatory requirements. In terms
full-chain protection. We continuously improve our funding support mechanisms internal resource advantages and data sharing. We also integrate of business value we released more high-value data for analysis
and have established a special budget for scientific and technological innovation
to ensure the efficient allocation of funds. We also strengthen organisational the private domain platforms for members and build and manage and decision-making empowering precise marketing and member
support by relying on the Innovation Committee for unified decision-making a unified private domain traffic pool thereby achieving deep operations in multiple scenarios and successfully converting
and the Innovation Committee Office for implementation providing a solid
organisational foundation for the standardised and orderly development of customer connections and precise marketing. compliance costs into core competitive advantages.innovative businesses. We continue to increase personnel support focusing on
key areas such as digital technology and data governance to build a professional
innovation talent team. Additionally we improve incentive mechanisms to
mobilise the enthusiasm and creativity of core backbone employees fully
stimulating the innovative vitality of researchers and promoting the development Collaboration with Suppliers
of the company’s innovative business.* The company has constructed a digital platform for customer services has
The company includes clauses on customer information security privacy protection and related measures in its cooperation agreements
advanced the development of the membership platform and has accelerated with suppliers and business partners.the promotion of the all-channel store membership platform to enhance
Digital the convenience of member consumption. We continue to deepen multi-* T h e d e v e l o p m e n t o f a r t i f i c i a l channel integration and cross-industry collaboration ecosystems optimising
transformation intelligence and information technology and upgrading the Big Data Cloud Platform R&D project with China Telecom w i l l s i g n i f i c a n t l y e n h a n c e t h e by improving query performance advancing data warehouse integrity and
opportunities operational efficiency of the company. completing dashboard development to achieve natural language interaction. We
also achieve complementary internal resource advantages and data sharing. Management of impacts risks and opportunities
* The company aims to enhance the intelligence level of customer service promote
the implementation of the “AI +” initiative and closely align with the core strategy
of “Application Leadership and Data-Driven Innovation” to deeply integrate large Seizing new opportunities in the digital age
model technology with tourism retail business scenarios.* We also advance the digital transformation and upgrading of the supply chain The company has built a data centre plat form to explore and compliant utilisation of data elements to leverage their value.actively expand the categories on the supply chain fulfilment platform and
explore the application breadth and depth of the digital procurement system compliance-related analyses of duty-free consumption data This fully unleashes the value of data enhancing our business
across all categories and channels. and island tax-free policies. We unlock the potential of data performance metrics.* We continuously optimise the retail system to ensure operational efficiency elements deepen data governance and promote the efficient
improvements and enhance the customer shopping experience.* The company is steadily advancing the Project Nebula (星云项目 ). We established
a unified One ID system for CTG Duty Free (中旅免税 ) members in 2025 driving
the growth of our online business. Metrics and Targets
To enhance staff awareness of customer privacy protection the In 2025 the company experienced no data security incidents or
company provides special training for all staff at least biannually. customer privacy breaches.
46 47China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
02
Prosperity
50 Upholding Original Beliefs and Mission to
Ensure Trusted Business Operations
62 Robust Green and Intelligent Supply Chain
70 Engaging in Good Initiatives to Act as a Re-
sponsible Corporate
CTG DUTY-FREE actively responds to United Nations
(UN) Sustainable Development Goals (SDGs) 4 10
11 12 and 15 and focus on meeting our social
responsibility pursuing excellence and providing
consumers with quality products and services.China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Upholding Original Beliefs and Mission to Ensure Strategy
Trusted Business Operations
Risks/
opportunities Impacts Response plans
CTG DUTY-FREE has formulated a “Service Quality Work Plan” * The company continuously carries out various training including leadership training professional skills training for front-line Inheriting and Elevating Quality Service staff and general knowledge training to ensure that employees at all levels possess professional service capabilities. The
designed to refine standards for business operations and service ultimate goal of the training is to accurately grasp customers’ core demands.quality thereby enhancing its service capabilities and standards The company has established a “Work Plan for Service Quality” * We also constantly improve our talent management and staff training system. We have been developing a system of service standards to produce a standardised library and training system covering areas such as product information customs
across all business lines. to improve our system of quality standards for businesses and policies platform-based policies after-sales standards and customer service rules and standards. In this way we aim to
Decreased customer
services improved its customer service capabilities and standards Declining customer minimise deviations from the company’s standards.satisfaction may lead to
across various business. satisfaction customer attrition * The company’s cdf Membership Club focuses on the five optimisations of expanded service channels standardised services timely services automated services and outcome-oriented services to effectively improve service quality maximise
consumer satisfaction and service efficiency
Governance * Prioritise resources for preferred customer activities and experiences; establish cross-departmental collaboration to collect
analyse and implement customer feedback for service process optimisation
* Continuously enhance our retail system to improve intelligent customer service capabilities; advance “AI plus” initiatives
In compliance with current laws and regulations such as the standards. Each subsidiary is required to put in place relevant aligned with our “Application-Driven Data-Powered” strategy integrating large-scale AI models with tourism retail scenarios
Consumer Rights Protection Law and the Personal Information policies aligned with their business characteristics and ensure the Information
Protection Law the company continues to improve its service effective implementation of these policies. Inadequate product asymmetry may cause * The company has been improving the disclosure of merchandise information to achieve the orderly classification of goods
information misunderstandings or the full disclosure of product information and fair and transparent prices.consumer complaints
disclosure negatively affecting * Duty-free goods and non-duty-free goods are showcased separately on different web portals to avoid misleading consumers.sales
Customer service system in Hainan Customer service system in Qianhai
* In strict adherence with the provisions of the Interim Measures for the Return without Reasons of Commodities Purchased
Online within Seven Days the company provides clear procedures and guidance on the return of goods without the need to
specify a reason and clearly identifies and confirms with consumers those goods that are not applicable under the policy in
the “cdf After-sales Service Management Policy in Hainan The “Customer Service Centre Management Policy” the May lead to customer accordance with the law. The company does not arbitrarily expand the scope of which goods are not applicable under the
dissatisfaction return of goods without specifying a reason.(for Physical Stores)” “After-sales Service Management “Business Rules for the Customer Service Centre” the Inappropriate
implementation of escalate sales return * In accordance with the instructions of the administrative guidance meeting for duty-free industries organised by the StatePolicy (for Online Malls)” and the “Detailed Rules for “After-sales and Return Rules for the Customer Service and exchange costs sales return/exchange Administration for Market Supervision (SAMR) the company headquarters arranged for its subsidiaries to jointly make aHandling Customer Complaints at Different Levels”. In Centre” the “Rules for the Use of Free Items to Address and negatively impact policies public commitment to society. The platform shopping guidance was revised to delete additional restrictions on the return product sales as well and replacement of goods. Only four categories of goods have been specified as not applicable under the policy of return of
2025 to benchmark against leading commercial service Customer Complaints for the Customer Service Centre” as our reputation goods within seven days without the need to specify a reason: near-expired goods damaged goods goods without plasticquality supervision models in the industry the cdf Sanya and the “Emergency Response Rules for the Customer packaging and goods with a short shelf-life. The applicability of the policy to particular goods is clearly specified on theproduct web portal. Consumers are asked to confirm their understanding of the “Shopping Guidance” and tick an additionalInternational Duty-Free Shopping Complex updated its Service Centre” check box for their acceptance of goods that cannot be returned or replaced within seven days without specifying a reason.“Monthly Service Quality Assessment Checklist” “Service* Put in place a closed-loop management process for customer feedback. Under this process we collect data on userQuality Inspection Checklist” “Sales Process Inspection experience and customer feedback in real time through the customer service system’s evaluation section after-sales ticketsChecklist” “Joint Inspection Checklist” and “Mystery and complaints; prepare and send the “Monthly Customer Service Centre Report” to the corresponding departments each
month for improvements or adjustments; set different response timeframes based on the gravity of the feedback/complaintsShopper Survey Form”. The Boao Duty-Free Shop revised to ensure the relevant issues are addressed in a timely manner.its Sales Department Management Regulations and * Establish a proactive customer satisfaction and Net Promoter Score (NPS) feedback mechanism implementing an omni-
promptly enhanced its service quality management system. channel and all-scenario monitoring system that covers both online and offline touchpoints. This system enables dynamic
real-time monitoring of customer satisfaction and NPS coupled with immediate risk warning capabilities. Through the closed-
loop management pathway of “monitoring - early warning - improvement - feedback” we ensure customer experience issues
are systematically resolved in a closed-loop manner significantly enhancing overall customer experience.Ineffective Failure to promptly * Establish a unified customer service centre system: We have implemented a centralised customer service hotline (4001100100)
customer feedback identify and resolve across all domestic stores and online e-commerce platforms. Through intelligent call routing and distribution intelligent issues may degrade service solutions standardised processes and unified service scripts we have established a rapid response mechanism thatmechanisms customer experience achieves a closed-loop management system for customer service data. This system enables “unified call intake - channel-specific distribution - closed-loop management of customer feedback across channels - unified data analytics”.* Develop a unified service scenario definition mechanism that covers all online and offline channels and scenarios. This
framework establishes a standardised service language system enhancing customer service operational efficiency. The
implementation of the “unified scenarios - unified analysis - unified improvement - unified feedback” closed-loop mechanism
significantly improves customer issue resolution efficiency.* Hainan DF prioritises service efficiency and quality monitoring through the establishment of a dedicated daily service report
and monitoring mechanism. This ensures real-time responses to specific service complaints and their resolution within 24
hours. To further reduce repeated complaints the company has implemented several mechanisms including a daily report
mechanism to track logistics and order status an order alert system for high-frequency returns and a dedicated follow-up
process for special customer complaints.* The company continues to integrate its online and offline channels providing consumers with “pre-sales sales and after-sales” tourism retail services that are both more convenient and of higher quality.* To address this we have taken the following measures before after and during sales respectively: before sales we have
established a robust training system to enhance employee professionalism and deliver standardised high-quality service
Insufficient digital support; we have optimised the performance of the core membership system and improved the user interface (UI) friendliness
Insufficient digital capabilities affect and overall user experience (UX) on the client side; we have introduced a simplified membership registration solution for
consumer shopping privacy-conscious users enabling one-click registration with only a phone number or email address and verification code.capabilities experiences and reduce This streamlined process ensures user privacy and data security while enhancing registration efficiency; we have added
customer satisfaction and enhanced self-service inquiry and online customer service functionalities; during sales we have optimised the in-store
environment to create a more convenient and seamless shopping experience; after sales we have standardised after-sales
service protocols and leverage digital tools to deliver consistent after-sales support;
* We launched the CDF NPS survey system integrating a digital questionnaire platform to automate Voice of the Customer (VoC)
initiatives. This system enables proactive survey collection data analysis report generation and optimisation tracking.
50 51China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Steadily Improving Customer Service Across All Stores in 2025 10. Monthly Smile Service Star: 12. Buddy Support Programme:
To strengthen customer retention we raise employee awareness of We harnessed the motivating power of role models to launch
its importance and emphasise customer loyalty. We ensure training this initiative covering product knowledge sales techniques
The Riyue Plaza Duty-Free Shop under Hainan DF extends beyond theory to practical job applications. Additionally CRM system maintenance Xiaohongshu ( “RedNote”) platform
we foster a culture of service excellence and sustain enthusiasm for operations and service skills enhancement and set clear goals forcontinuous improvement through the “Monthly Smile Service Star buddy partnerships.Election” initiative.
01. Enhanced customer service response: 06. Delivery of heartwarming services on the ground:
11. Effective utilisation of the Customer Relationship Management (CRM) System: 13. Enhanced employee capabilities:
Customer service personnel are granted sufficient authority based To enhance service quality during major holidays we create
on the product’s selling price to handle after-sales cases while a festive atmosphere and actively engage customers through By leveraging WeCom’s CRM module and integrating it with the First we have launched a specialised training programme to
resources dedicated to resolving them have been increased. These increased interaction and participation. Specifically we prepare ASC. Excellence Service Observation programme we enhance enhance store manager capabilities facilitating cross-store
measures have improved both customer satisfaction and case drinking water cookies and candy at the service desk; provide employee professional skills and enable standardised systematic exchanges for shared learning and strengthening the management
resolution rates. exquisite balloons for families with children; offer a pet-friendly customer relationship maintenance. By December 2025 the CRM team’s service leadership. Second we have launched the ASC
shopping experience; and supply convenient amenities such as system had accumulated over 178000 users. Repurchase revenue Excellence Service Observation programme to establish service
02. Proactive customer service initiatives: wheelchairs and baby strollers. These efforts ensure a seamless via the CRM has already increased 81.7% year-over-year as of benchmarks and identify exemplary models. Third we upgraded
and delightful shopping experience for our customers. December. the sales service manual to reflect current best practices. Fourth
We identify customers needing assistance before issues arise. This we organised a role-specific service skills competition to ignite
proactively prevents negative shopping experiences caused by employee passion for service excellence. Fifth we refined the
confusion about offshore duty-free policies promotions or brand 07. Optimisation of value-added services for premium annual Smile Service Star selection criteria to establish clear members:
locations. exemplary service standards.We enhance our staff’s professional service capabilities through a
tiered training system for beauty consultants coupled with regular
03. Optimisation of the “First-Contact Accountability System”: skills development training. We have introduced a dedicated one-
on-one beauty consultant model and have refined our customer
This system establishes that the first salesperson interacting with a profile management system to deliver highly personalised services.customer has the primary point of responsibility. It boosts service Our premium members now enjoy an upgraded service experience
quality and customer satisfaction by encouraging teamwork including customised skincare plans hand and facial massage
ensuring swift responses to inquiries reducing waiting times treatments intelligent skin analysis branded massage experiences
preventing issue shifting and improving resolution efficiency. (like Breo) and trials of professional beauty devices.
04. Optimisation of VIP reception services: 08. Store Manager Development Series:
We offer value-added VIP reception services for high-net-worth This comprehensive programme is designed to enhance the overall
customers. We continuously upgrade our VIP reception standards management capabilities of store managers through systematic Buddy Support Programme ASC Excellence Service Training
and have opened a public reservation window to enhance the one- training empowering them to drive efficient store operations and
on-one shopping experience of these customers. We also provide performance growth.priority checkout privileges to increase customer loyalty.
05. Optimisation of value-added services at the maintenance centre: 09. Upgrade of the sales service manual: The Boao Duty-Free Shop under Hainan DF
To strengthen our brand image we provide attentive and thoughtful The manual includes processes scripted dialogues and guidelines The Boao Duty-Free Shop has implemented a store manager
value-added services that enhance customer satisfaction and to help employees and customers understand our service inspection system to evaluate employee performance in key areas:
loyalty. These essential luxury care offerings include leather standards. The service manual is regularly updated to align with customer service appearance and grooming sales techniques
care jewellery cleaning watch demagnetisation and bracelet evolving business needs. This resource enables new employees to use of professional terminology and cross-selling abilities.adjustments ensuring customers feel confident in their purchases. quickly master service requirements and efficiently resolve work- Service quality is now incorporated into the monthly and annual
By delivering these premium after-sales services we aim to foster related issues. performance evaluations of all frontline staff. These assessments
long-term customer retention. continuously strengthen employee service awareness standardise
service behaviours and enhance customer service quality.ASC Excellent Service Training
52 53China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
03. Contextualised Service Standards 04. End-to-End Service Journey Support
cdf Sanya International Duty-Free Shopping Complex
We have developed personalised service systems tailored to Leveraging social platforms we have established an omnichanneldiverse consumer segments launching ten contextualised service service ecosystem combining “online precision reach with offlineEnhanced training system: In 2025 we delivered over 30 scenarios – including children’s craft workshops dedicated immersive experiences”. Transforming social media into our
customer service training sessions across a wide range of shopping assistants for seniors and pet-friendly services primary user touchpoint we have created a closed-loop decision-
topics including our brand knowledge appropriate service
procedures customer retention business etiquette and post- – achieving comprehensive coverage across all customer making journey. Since implementation we have published over
sales resolution. We provided a total of over 200 training groups. By mapping ten critical service touchpoints from pre- 800 original content pieces generating 680000+ impressions. Our
hours to more than 1600 frontline customer service personnel visit to post-departure we integrate Hainan’s regional cultural social platforms have garnered 30000+ engagements and 6000+
elements. Through personalised journey guidance multilingual comments establishing strong brand advocacy.consultation support and dedicated “Cultural Tourism Concierge”
Launch of our one-stop service mini-programme: On 15 accompaniment we deliver distinctive and memorable service
October 2025 we launched a one-stop service mini- experiences throughout the entire customer journey. For high-net-
programme for cdf Sanya International Duty-Free Shopping worth clients our division has pioneered VIC value-added services
Complex. Phase One upgrades included adding AR-based
navigation and smart parking solutions. blending tourism and cultural elements alongside enhanced
consumption privilege programmes. We consistently roll out
bespoke services and thematic activations aligned with seasonal
Enhanced services for high-net-worth customers: We are festivals and holidays.transforming our VIP lounges from conventional reception
spaces into a comprehensive platform that integrates
Premium Services Experiential Engagement and Strategic
Sales. By partnering with luxury brands we have developed
brand experience scenarios. In content strategy we have
cultivated signature salon IP programmes that weave together
cultural curation wellness innovation and travel experiences.Through curated activities such as local heritage appreciation
sessions China-chic product experiences and beauty
masterclasses led by industry experts we continuously
elevate our service value. Furthermore we have refined
one-on-one service processes by incorporating pre-service
preference surveys and post-service satisfaction tracking with
personalised product recommendations ensuring a closed-
loop service experience. Continuously Enhancing the After-sales Service Experience
We held the “Service Personnel of the Year” awards for the
second year in a row to recognise the most outstanding In alignment with the integrated after-sales service system of cdf Hainan we have put in place consistent service standards across Hainan
customer service individuals that lead by example and inspire including:
other staff members.Collaboration with government agencies: Secure delivery services: For delivery- Rapid response teams: We have formed
Through one-stop service solutions we related concerns we collaborate with SF a dedicated task force to handle common
have achieved a 100% resolution rate for Express to reinforce packaging for fragile issues offering customised off-island
Haikou International Duty-Free Shopping Complex customer issues by implementing on-site goods resulting in a 50% reduction in pickup services for customers unable to
joint operations to address complaints and related complaints. We have also introduced collect goods normally thereby maximising
public sentiment. security delivery cards and after-sales tips order retention.In 2025 Haikou International Duty-Free Shopping Complex and “standardised” to “individualised”. This provided systematic
enabling proactive service notifications to
systematically enhanced service quality and customer satisfaction support for the continuous improvement of customer satisfaction.reach 90% of customers.driving the transformation of services from “reactive” to “proactive”
01. Systematised Training Framework 02. Proactive Service Model
The mobile “Cultural Tourism Ambassador” service was launched.Throughout the year 133 specialised training sessions wereEmploying a tripartite model of “basic service + cultural tourismconducted across five key categories: brand knowledge business A tiered authorisation framework: Through Service assurance infrastructure: Our Robust risk prevention systems: We haveguidance + precision marketing” it breaks the limitations of
processes laws and regulations service innovation and etiquette/ the implementation of a tiered authorisation dedicated after-sales service team provides established a closed-loop risk management
traditional service counters. Service response times were reduced
service English. These sessions covered over 1500 participants framework we have expedited negotiation a 24/7 hotline and online customer service system to monitor ticket handling standards
from 3 minutes to 30 seconds achieving 100% immediate
accumulating more than 60 training hours consolidating the processes to achieve customer satisfaction channels. By adhering to the standards and implemented a dual review mechanism.response and on-site resolution with customer satisfactionprofessional foundation and service capabilities of frontline staff. and enhance the reso lu t ion ra te o f of a “97% or higher call centre answer This proactive approach enables earlyreaching 100%. Focusing on product-related customer complaints customer complaints. Additionally we rate a 10-second response time for online identification and resolution of operationalwe have innovatively established a “Rapid Complaint ResolutionThe “Ten Service Enhancement Initiatives” were implemented have strengthened inter-departmental customer service and a 99% or higher risks shifting from reactive to preventive risk Mechanism”. By proactively offering one-stop solutions wefocusing on the structured upgrading of employees’ comprehensive collaboration by establishing regular analysis customer sat isfact ion rate” we have management.significantly improve handling efficiency and customer satisfaction.competencies. Through daily image management in-depth and consultation sessions on product- significantly enhanced the efficiency of
brand knowledge learning multilingual scenario communication related and delivery issues continuously customer complaint resolution.Mechanisms for daily service story sharing customer request
and personalised service situation simulations we continuously striving to improve post-sales management
analysis and service process iteration have been established.strengthened service personnel’s professional image expertise practices.These guide the team to continuously accumulate individualised
and flexible response capabilities. This provides solid ability support
service cases extract emotional touchpoints and optimise service
for the “one guest one strategy” individualised service approach.flows during service practice. This promotes the organic integration
of “standards warmth and efficiency” enabling personalised
service that “varies by person and adapts to needs” to gradually
evolve into a core team competency that is transferable
measurable and sustainable.
54 55China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Cater for special needs groups and improve accessible facilities cdf Sanya International Duty-Free Shopping Complex
We consistently uphold the “people-oriented” service philosophy convenient and warm shopping environment for all customers In 2025 at cdf Sanya International Duty-Free Shopping Complex we further elevated our service offerings by building upon
systematically improves accessible facilities optimises service especially those special needs groups. existing convenience and inclusive support for special groups. We have:
procedures and system. We are committed to provide an equal Expanded the service scope:
The company sub stores provide accessible facilities. Increased the range of rental items from 6 (strollers
wheelchairs shawls baby carriers umbrellas child safety
harnesses) to 12 categories. New additions include: walking
sticks pet strollers pet backpacks pet leashes large dog
cages and vomit bags. This enhancement addresses a
broader range of customer needs.Increased the quantity of frequently rented items
Expanded stock levels for frequently rented items such as
strollers and wheelchairs to ensure uninterrupted service
supply during peak hours.Installed “First Aid Kits” at strategic locations
including 3 front desks 2 customer service centres and
6 key service locations within the visitor centre. These kits
include essential first aid supplies and emergency materials;
we have also installed 6 Automated External Defibrillators
(AEDs) in high-footfall areas. Our “Pet-friendly” policy Our dedicated pet-friendly
at cdf Sanya International e l eva to r a t cd f Sanya
D u t y - F r e e S h o p p i n g Internat ional Duty-Free
Complex Shopping Complex
Introduced a pet-friendly policy allowing customers to bring small dogs and cats with a shoulder height of ≤40 cm.Hainan DF Haikou International Duty-Free Shopping Complex
Optimisation of Accessibility Facilities and Service Processes
The Boao Duty-Free Shop: The Riyue Plaza Duty-Free Shop:
For elderly customers’ convenience magnifying and We provide convenient amenities like wheelchairs and 01 Warm & Accessible Wheelchair Service:
reading glasses are available at the cashier counter to baby strollers. Guests can enjoy complimentary drinking 04 Temperature-Controlled Drinking Water:
assist with viewing receipts and documents. We also water cookies and candy and families with children can We have established a “Real-time Response” mechanism.offer complimentary rental of children’s pushchairs and find colourful balloons available to enhance their shopping Customers do not need to go to fixed points; upon a Dedicated drinking water dispensers adjacent to each
wheelchairs within the store to ensure a smooth and experience. request made to any staff member or via the service hotline service desk provide both warm water (40-45°C) and hot
convenient shopping experience. personnel will deliver a wheelchair directly to their location
water (≥90°C) to cater to different customer preferences.enabling barrier-free access across all floors.
02 Personal Shopping Support System: 05 Clear Vision Service:
The “Personal Shopping Assistant” role provides one-to-one Service desks maintain a supply of cleaned and disinfected
escorted shopping for customers needing support assisting reading glasses for complimentary customer use helping
with navigation retrieving items and policy enquiries alleviate temporary visual difficulties.enhancing the independent shopping experience for those
with mobility challenges.
03 Health & Wellbeing Services:
Professional nurses stationed in service areas provide emergency medicines and supplies are available at key
complimentary blood pressure checks and health guidance service points including all service desks and customer
offering t imely support for patrons requir ing health service centres.monitoring. First-aid kits uniformly stocked with essential
56 57China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
2. Risk assessment and prioritisation
Commitment to the Protection of Children’s Rights
We employ a hybrid approach combining qualitative and quantitative our reputation are prioritised. By analysing customer satisfaction survey
assessments to determine the likelihood and impact of service quality risks. results we rank risks and focus on high-risk areas that could lead to severe
Risks with the most significant potential to affect customer experience and consequences.The company places the protection of children’s rights at the core of its children’s rights in our business activities. Through systematic service
corporate social responsibilities and business operations. We pledge design we strive to create a safe friendly and respectful commercial
significant improvement in service standardisation. In 2025 we conducted
strict compliance with all relevant laws and regulations concerning environment for children. Specific initiatives include: Customer Satisfaction Survey 2025 a total of 1198 specialised service quality inspections covering all business
Haikou International Duty-Free Shopping Complex processes. We have established a closed-loop management mechanismof “identifying issues – implementing remedial measures – reviewing forSafe & Convenient Travel Support: Emergency Health Support: At Haikou International Duty-Free Shopping Complex we have advanced improvement opportunities”.Dedicated stroller rental points at all service counters provide Service counters are equipped with dedicated children’s routine service quality monitoring by establishing a dual-control system Through multidimensional internal inspections and enhancements to
clean safety-compliant baby strollers. Drop-off at any service emergency supplies (e.g. plasters iodine swabs) to ensure integrating internal inspections and third-party evaluations. This approach
has comprehensively strengthened our service quality and customer management controls the incidence of service issues has decreased by
counter is supported ensuring convenient and safe shopping timely and appropriate initial care in unforeseen situations. experience management. 38.55% year-on-year directly enhancing customer satisfaction. Additionally
experiences for families. we coordinated 56 weekly joint inspections identifying 399 issues with a
Starting from July 2025 we have conducted five rounds of mystery shopper 100% rectification rate.monitoring accumulating 140 samples with an annual average score of
94.69%. This assessment covers six S stores taxed retail outlets and These routine inspections cover all critical areas such as staff appearance
01 02 other multi-category retail spaces as well as critical customer experience facility maintenance service environment and operational procedures. For
departments such as the Customer Service Department and Property identified issues relevant customer-facing departments strictly follow our
service quality standards and require the responsible teams to conduct
Lost Child Rapid Response: Instant Recognition & Encouragement: Management Department ensuring full-process and routine supervision of
core customer-facing service operations. specific reviews to ensure that the issues are adequately communicatedA dedicated “Immediate Response for Lost Service staff carry cartoon commendation investigated and resolved through performance-linked accountability andChildren” procedure is in place. Utilising the st ickers to provide immediate v is ible In parallel we have completed 90 special inspections of customer-facing training.public address system and coordinated staff 03 04 recognition for children demonstrating area environmental quality achieving an annual average score of 99.61.action immediate search and reassurance positive social behaviours in public spaces These inspections focused on key dimensions including professional
In 2025 at cdf Sanya International Duty-Free Shopping Complex we
appearance of customer-facing staff store environment maintenance public conducted 12 rounds of customer satisfaction surveys contacting 14400
efforts are activated to safeguard every (e.g. queuing patiently polite greetings) area property quality and standardised deployment and the updating of customers via telephone and collecting 1440 valid questionnaires achieving
child’s physical safety. supporting their socio-emotional development. materials and advertising campaigns. monthly targets for follow-up visits and questionnaires. The surveys show a
full satisfaction rate of 88.9%.We maintain dynamic tracking registry-based closed-loop management for
05 06 identified issues. For systematic service deficiencies we have in place an The survey design was based on the frontline service responsibilities of three
Controlled Energy Replenishment: Professional Childcare Service: enhanced mechanism for cross-departmental consultation and collaboration. key departments: Sales Customer Management and Engineering & Safety
The “Childcare Service Management Guidelines” define Through structured employee interviews performance metrics aligned with Management. It focused on their service attitudes and on-site operations Service staff carry individually wrapped healthy sweets.rectification outcomes and targeted training programmes we systematically with results – including verbatim customer feedback – shared with the
These are offered to children only after obtaining explicit parental service standards and safety protocols. Paid professional embed responsibility across all levels of operations. respective departments for improvement.consent ensuring energy replenishment occurs safely and within childcare is offered in the VIP lounge for eligible children
CDFG (Cambodia) Limited
controlled parameters. (aged 5-12 years old unaccompanied by adults). Prior to cdf Sanya International Duty-Free Shopping Complexservice commencement guardians must sign the “Childcare In 2025 Q4 CDFG (Cambodia) Limited resumed its customer surveyEntrustment Registration Form” to ensure clear responsibilities At cdf Sanya International Duty-Free Shopping Complex we proactively initiatives by conducting the Net Promoter Score and customer satisfaction
conduct routine service quality monitoring through mystery shopper
and compliant procedures. surveys. The survey results indicated opportunities for improvement in assessments specialised service quality inspections and weekly joint product pricing and membership benefits. Customers also expressed
inspections. demand for enhanced product assortment in fragrance and cosmetics
categories particularly perfumes as well as new luxury offerings.Since June 2025 we have completed 7 rounds of mystery shopper
assessments (with an average score of 89.77 in 2025) achieving a
3. Monitoring their effective handling. We established a customer feedback and self-review
mechanism clarified that customer feedback should be sent to the relevantImpact Risk and Opportunity Management Our network-wide monitoring includes real-time monitoring of the “Black front-line service teams and enhanced oversight over the improvementCat” platform and relevant government departments’ open channels to process. Based on our customer service-related key performance indicator
collect information related to service quality on a real-time basis. In this way (KPI) framework we systematically monitor key risk indicators (KRIs) and
We recognise that service quality are determinant to building we aim to stay up to date operate a closed-loop monitoring system and maintain regular reporting to senior management on service safety and
issue early warnings 24/7 for sensitive issues involving public opinion and quality risk monitoring. This structured approach provides data-driven
consumer trust brand reputation and sustainability. To this end distributes information to all departments and stores in a timely manner for support for strategic decision-making.we have put in place robust processes to identify assess prioritise
development. If we identify a negative media report or an announcement
monitor and manage risks and opportunities related to service 4. Management from regulators we establish a special team to communicate with relevant
quality. After classifying and evaluating customer complaints the company deals stakeholders as soon as possible to minimise any negative impact and
with them by applying corresponding handling strategies. Analysis and prevent any reputational damage to our group’s brand.judgment are steadily strengthened to take targeted preventive and control
1. Identification measures and prevent and eliminate adverse impacts on time. The company The “Detailed Rules for Handling Emergency Events for the Customer Servicedynamically tracks unexpected negative information and post-handling Centre” has been formulated which defines the severity of complaints the
developments and continuously monitors relevant information. Customer response measures required for customer services and feedback on the We regularly identify and assess risks across all business complaints are promptly summarised sorted out and reflected on upon their handling of issues. The customer service centre holds a specific drill on
processes. In addition we regularly collect customer feedback occurrence dissemination and handling to safeguard the company’s steady complaint handling every month to ensure that front-line customer service
representatives can understand and implement the requirements.through our customer satisfaction surveys customer suggestion
boxes as well as other means. We conduct consumer satisfaction Metrics and Targets
surveys annually to evaluate our performance in service delivery.To ensure minimal disruption to customers we obtain their explicit As at the end of 2025
We a lways s t r i ve to p rov ide complaints handled as a
authorisation via SMS before conducting the telephone interview. our customers with satisfactory Average hours used to handle proportion of total complaints
services. Our centralised call centre Total complaints received each complaint received during the year
achieves a 30% response rate
using the IVR system. In 2024 the
company’s customer satisfaction
To listen to customers’ voices cdf Hohhot installed a customer suggestion rate remained above 96%. Details
box and reviewed opinions received from time to time so as to improve regarding customer complaints
services in an all-round manner. hoursthe company received during the 20281 92 99.9%
reporting period:
58 59China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Product Safety and Quality 3. Risk monitoring
To maintain product safety and quality we have put in place a
robust monitoring process. We conduct regular internal quality
Governance inspections to uphold product-related standards. We have set up
a dedicated customer service hotline and online feedback platform
to encourage consumers to report any safety or quality concerns
The company strictly enforces procurement management measures quality and safety management for our imported commodities. enabling us to promptly identify and address potential issues. 监督审核合格通知书
and continuously monitors supplier selection and product quality We have strengthened safety and quality control for imported No. 440324Q3Q15555
中免國際有限公司:assurance. We issued the “Regulations on Safety Management commodities to ensure that the company meets its responsibilities 4. Risk management 我中心于 2024 年 12 月 03 日至 2024 年 12 月 06 日Quality-Risk Early Warnings Inspection and Testing for Imported and protects consumers’ rights and interests. 对贵方进行了年度监督审核，证实贵方的质量管理体系Building on the risk identification assessment and monitoring 持续有效运行，经评定决定，准予继续使用证书号为Commodities (Trial)” which standardises and institutionalises 00122Q310360R0M/4403认证证书和相应编号的 IQNet证processes we have also put in place effective controls to address 书。证书所载的名称、地址、认证范围、发证日期和有效日期等均无变化。
risks and opportunities related to product safety and quality. We 下次例行审核宜在 2025 年 10 月 27 日之前实施，最appoint control owners that oversee and coordinate product 晚应在 2025 年 12 月 27 日之前完成，否则可能导致证书Strategy 暂停。 safety and quality reviews and ensure these controls are operating 感谢贵方对我中心工作的一贯支持与配合，我们将一如既往的为您提供增值的认证服务。
effectively. We have continued to enhance our product safety 特此通知。
and quality management capabilities by upgrading our control
Risks Impacts Response plans processes for the latest technologies and methodologies. We have 2024年 12月 31日
* Actively work with suppliers to ensure product quality standards are met so that our users can shop with confidence; put in place emergency response plans and procedures to ensure
Poor product quality may * Strengthen communication to suppliers about the importance of investigating and resolving product quality issues. For details please refer rapid action in crisis situations. Furthermore we maintain a long-
result in f inancial losses to the chapter on “Robust Green and Intelligent Supply Chain” standing partnership and work with our suppliers to jointly enhance
due to unsold products or * Establish and continually refine product quality control systems and procedures safety and quality standards in the supply chain.Product quality risks trigger legal disputes and * For the proprietary brand “CDF Health” third-party testing institutions are engaged to implement quality inspection mechanisms including compensation costs after production quality control audits and production process audits. Should quality defects be identified relevant products are urgently
sales ultimately damaging withdrawn from all sales channels according to the severity of the issue. Customers who have purchased the products are notified via online
c o n s u m e r t r u s t a n d customer service SMS and other means and the products are recalled. Concurrently suppliers are engaged to coordinate and complete Notice on CDFI passing the annual quality
corporate reputation the product recall and return process. Where necessary the matter is reported to the relevant regulatory authorities; management system review
* Establish a crisis management mechanism for breaking public opinion incidents
Ma y l e a d t o i n v e n t o r y * Depending on the product category and specific circumstances we utilise appropriate disposal methods – including return shipping Metrics and Targets
Management risks b a c k l o g s r e s u l t i n g i n supplier returns or exchanges discount promotions buy-and-get promotions or customs-supervised destruction – as outlined in the
of near-expiry f i n a n c i a l l o s s e s a n d company’s Sales Department Management Regulations.products p o t e n t i a l l y d a m a g i n g * The company strives to reduce goods close to expiration by forecasting market demand flexibly deploying goods and improving During the reporting period the company did not experience any During the reporting period CDFI completed its annual audit of
corporate reputation procurement efficiency with the goal of enhancing resource use efficiency and operating effectiveness. product recovery (recall) events negative events (e.g. regulatory the quality management system (ISO9001) to provide assurance
* In terms of food and beverage safety the company has made every effort to establish and improve its comprehensive management penalties and negative news reports) or countermeasures for the regarding the adequacy and appropriateness of its internal controls
Potential product quality systems including those related to food management rules supervision and monitoring traceability cooperation inspection and testing company’s products or services. and refined management.issues may lead to financial to ensure the food safety of our pre-packaged goods. We adhere to standardised online and offline management standards with respect to
Food & beverage losses regulatory penalties food safety and exercise whole-process control in this area.safety risks and damage to consumer * In accordance with the Law on Product Quality the requirements of the commodity quality standards issued by the SAMR and the National Responsible Marketing
trust ultimately damaging Standardisation Administration and other laws and regulations the company has re-signed agreements with domestic liquor producers and
corporate reputation suppliers and the new agreements include the “Liquor Quality Assurance Agreement” which helps the company ensure the quality of its
products protect the rights and interests of consumers. We attach great importance to the management of advertisements misinterpretation maintaining professional integrity and regulatory
and new media marketing. In accordance with the Advertising Law compliance throughout promotional activities.Products requiring special and other laws and regulations the company has formulated relevantstorage condit ions face documents such as the “Regulations on the Management of Press To explore sustainable development strategies for its brands therisks of product damage * For chocolate that needs to be stored below 20 degrees our stores strictly enforce the storage and transportation standards provided by Release” and the “Marketing Activities Management Measures” to company has accelerated its transition towards digital management
Special storage c u s t o m e r c o m p l a i n t s suppliers and maintain daily temperature and humidity measurement records; strengthen management and control over marketing activities. The with the aim of becoming a global leader in this area. The company
requirements risks f i n a n c i a l l o s s e s a n d * We identify products that contain oil chemicals according to the suppliers’ shipping information in the early stage and check these items
regulatory penalties which properly when making declarations. company’s affiliated companies also formulate detailed management comprehensively adapted to the characteristics of duty-free industry
could ultimately damage regulations following their respective business conditions including and developed a membership system called OneID thereforecorporate reputation the “Regulations on the Management of Promotional Videos and formed CTG DUTY-FREE’s own member tracking system. BasedBrochures” “Regulations on Advertising and Publicity Management” on the results the company has been able to empower its brand;
“Regulations on the Management of Marketing Activities” and enhance collaboration consumer services and marketing activities;
“Regulations on the Management of External Publicity Information” and optimise tourism retail operations. Through this analysis work
etc. to regulate all aspects of marketing management. the company was able to effectively mine the commercial value of
Impact Risk and Opportunity Management its membership data and devise plans for how to use this data more
As the exclusive provider of dietary supplements under our effectively in the future.proprietary brand “CDF Health” we rigorously comply with China’s
1. Risk identification 2. Risk assessment and prioritisation Advertising Law Food Safety Law and the Interim Measures for the By the end of 2025 the volume of registered user data access
Review and Administration of Advertisements for Drugs Medical exceeded 140 million forming an industry-leading scaled data pool.To ensure product safety and quality we have put in place a robust For identified potential risks and opportunities we appropriately Devices Health Foods and Formula Foods for Special Medical
process to identify potential risks. We regularly review relevant assess them to determine their priorities. We evaluate each Purposes. All promotional materials undergo rigorous internal vetting The company has constructed a digital platform for customer
legal and regulatory requirements and industry standards to ensure identified risk based on its likelihood of occurrence and magnitude prior to release to ensure full regulatory compliance. For health services and accelerates the promotion of the all-channel store
our products meet the latest compliance expectations. We work and assign it a specific score to determine its priorities by using supplements we strictly adhere to the registered certification filing membership platform to enhance the convenience of member
closely with our suppliers to collect and analyse potential risk points a risk matrix. For high-priority risk factors we have developed documentation and advertising censorship. consumption. By leveraging this unified membership platform the
across the supply chain with a focus on raw material quality detailed mitigation strategies and contingency plans. We also company continues to expand channels enrich member benefits
manufacturing processes transportation conditions and other regularly update our risk assessments to ensure all identified risks We operate in full alignment with the Blue Hat certification standards and deepen cross-industry cooperation with third-party platforms.key areas. We also conduct internal audits and implement robust and opportunities are managed in a timely and effective manner. and advertising review/filing requirements when conducting We continue to deepen multi-channel integration and cross-
internal controls which enable us to identify and manage key risk promotional activities on social media platforms. For instance industry collaboration ecosystems to achieve complementary
factors that may impact product safety and quality. Additionally when disseminating content on platforms like Xiaohongshu and internal resource advantages and data sharing. We also integrate
we leverage customer feedback and market research results to similar channels the company avoids absolute or exaggerated the private domain platforms for members and build and manage a
understand consumer expectations regarding product safety and claims clearly labels suitable and unsuitable populations and unified private domain traffic pool thereby achieving deep customer
quality ensuring our offerings align with market needs. ensures accurate product information delivery to prevent consumer
connections and precise marketing.
60 61China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
The company continues to strengthen the refined operations of
its online malls self-media platforms and fan communities. By Strategy
collecting and analysing user profiles and behaviours it aggregates
specific audiences and enhances personalised interaction As a travel retailer supply chain security is key in delivering high- oversight of suppliers throughout their performance period and
experiences through tailored product recommendations mall search quality products and services to consumers. To this end we have
engine optimisation and marketing promotions. This approach aims actively works with suppliers to ensure product quality standards established and enhanced our supply chain management policies
to increase user stickiness satisfaction and loyalty thereby realising are met so that our users can shop with confidence.a new retail model of personalised marketing services. and processes to guard the “entrance gate”. We maintain robust
In addition to support the growth of online businesses the company
has launched the Nebula Project which enables the company to Risks Impact Mitigation measures
initiate a comprehensive system for detailed data empowerment.This system deeply advances the mining and application innovation * We have enhanced procurement process controls* The company regularly communicates with suppliers on how
of data value including precisely understanding market demands * The quality issues of procured goods may to further improve product quality. The company requires
and optimising sales conversion paths as well as systematically Quality issues with
procured goods impact marketability consequently affecting our suppliers to establish a mechanism for information exchange improving the scene-based service capabilities of data products. revenue and even reputation so that if the product recall process is triggered due to
product quality problems the company can take timely
The company continues to develop brand stories expand actions to protect the rights and interests of customers.communication channels and innovate new communication * Carefully select logistics and warehousing service providers
methods. News pictures videos activities and other publicity conduct on-site assessments of their storage facility safety
channels are used to showcase the new brand styles and narrow the and prioritise locations with elevated topography to avoid low-
distance between brands and consumers using rich brand content lying areas* Put in place the “Special Scenario Emergency Response Plan”
and diversified forms of expression. to establish standardised procedures for risk management
* Products damaged during transportation or related to typhoon-induced delivery disruptions or warehouse
In 2025 the company offered products from 1674 brands with storage due to extreme weather conditions (e.g. stock shortages. This includes early warning monitoring
more than 537000 SKUs. Products may typhoons heavy rains waterlogging) or other systems rapid response protocols resource coordination
suffer damage in incidents (e.g. fires theft) directly increases mechanisms and standardised customer communication
transportation or non-operating expenses. This may indirectly processes. We develop emergency response plans for
storage affect property insurance premium costs and natural disasters accidents social safety incidents etc. terms in subsequent years and could also detailing protocols for incident reporting on-site handling and
impact revenue through potential disruptions to personnel relocation.Robust Green and Intelligent Supply Chain product quality and delivery timelines. * The company also conducts quarterly training and drills on fire safety typhoon preparedness cargo security transport
safety and specialised equipment operations to validate plan
effectiveness and ensure that all staff possess the requisite
safety awareness and emergency response capabilities.* Purchase adequate property insurance coverage and closely
To continuously provide high-quality products and services to we actively collaborate with upstream and downstream partners to monitor market availability of similar insurance products
consumers we have put in place a sound and robust supply chain jointly build a green and smart supply chain. * Define precise storage requirements for different product
management system. Leveraging our strengths as a travel retailer categories; strengthen staff training programmes to improve
* Inadequate temperature/humidity control in inventory management capabilities; exert oversight and regular
storage areas may compromise product quality audits to ensure compliance
leading to increased non-operating expenses * Put in place robust policies to secure operational premises Supply Chain Security
potential revenue loss and reputational damage goods transport vehicles business partners and personnel;
Operational premises- * Weak management practices could result continuously upgrade storage infrastructure
related risks in inventory loss escalating non-operating * Perform monthly inspections of fire safety equipment to
expenses identify and address potential risks or hazards promptly
* The presence of fire safety hazards in storage * Rigorously implement access controls for warehouses with Governance facilities elevates the risk of fire leading to full surveillance coverage achieved throughout the warehouse
increased non-operating expenses premises. All warehouse access requires mandatory biometric authentication via facial recognition or fingerprint scanning.To improve procurement controls to standardise procurement Additionally intelligent locking systems have been deployed
practices and ensure supply security we have dedicated “Vehicle Safety Transportation Regulations and Training Protocols” for cargo transportation vehicles.responsible departments including the Supply Chain Management and the “Special Equipment Safe Operations Management * Inconsistent supplier deliveries may leadto product shortages impacting revenueDepartment General Manager’s Office Procurement Planning System”. These policies establish requirements for how our performance; * We optimise inventory management plans and strengthen risk internal control management by monitoring market fluctuations
Department and Contract Performance Department. Following products are stored shipped and delivered. * Excessive advance procurement could result
in overstocking increasing warehousing and and sales data to determine rational stock levels
the Bidding Law and the Implementation Regulations for the Law Inventory risks logistics costs for inventory management and * We use inventory monitoring and inventory alerts to promptly
In 2025 we updated our “Procurement Management Policy (Trial)” address overstocking or stockouts
of the Tender Law and relevant regulations for listed companies internal transfers;
* Failure to promptly identify inventory overstock * Prioritise optimised inventory allocation planning to prevent “Implementation Rules for Tender Procurement” “Implementationwe have put in place a robust system of supply chain security may escalate near-expiry product accumulation stockpiling or supply delaysRules for Non-Tender Procurement” “Centralised Procurementpolicies including a “Supplier Management Policy” “Management further affecting revenue performance.Management Policy” and other policies. We added more detailedPolicy for Contract Manufacturers of Branded Products (Trial)” * Non-comp l i ance w i th ou r es tab l i shed
provisions on supplier selection methods evaluation procedures procurement policies during the purchasing * Conduct regular training and awareness programmes for
“Interim Measures for Logistics Supplier Management” “Typhoon process may elevate procurement costs procurement management personnel and cross-departmentalperformance assessment criteria and tender procurementPrevention and Emergency Response Plan” the “Warehouse Fire negatively affecting operational efficiency and staff involved in procurement activities ensuring alignmentpractices while strictly enforcing procurement approval processes. Compliance risks profitability with standardised procurement policies and establish a Prevention and Emergency Response Plan” the “Warehousein procurement * Deviations from our established inventory centralised procurement platformGoods Anti-Theft and Safety Management Regulations” the and inventory management protocols could compromise * Provide warehouse staff with enhanced inventory management
management product quality potentially damaging our training to improve their skills in inventory control ensuring reputation and long-term revenue streams operational standardisation and accuracy
* Violations of relevant laws and regulations * Put in place a robust internal audit policy to monitor and
in procurement and inventory management evaluate import/export-related business activit ies for
operations may heighten legal risks further compliance and procedural integrity
threatening our reputation
62 63China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
* Strengthen procurement process management database. In addition to public procurement interested suppliers 1 Identification 3 Monitoring
should apply to relevant divisions for admission according to the
In the sourcing process of supplier the company established a procurement relationship and the management procedures. The company‘s interna l contro l team comprehens ive ly We continuously collect supply chain logs including information
unified supplier database strengthened supervision and review reviews supply chain operations collects and analyses data regarding critical incident reports emergencies unresolved issues
work and enhanced the management of supplier qualification Our proprietary brand CDF Health primarily relies on an ODM/ across all stages and conducts regular risk identification and and future plans. Key risk indicators are monitored in real-time
reviews selection performance evaluations incentives penalties OEM production model. In line with our supplier onboarding
and supervision. Suppliers are required to demonstrate a sound assessment processes. We have established risk information through supply chain management systems which are aligned policies we implement a rigorous supplier due-diligence process
commercial reputation tax compliance records sales performance channels to maintain close communication with suppliers with internal control early-warning mechanisms; regular reports during the qualification phase. This includes verification of
and product quality. They must possess the necessary professional logistics partners and industry associations ensuring timely on supply chain risk monitoring are provided to management to supplier credentials such as ISO 9001 and HACCP certifications
equipment technical capabilities and ongoing delivery capacity to updates on industry risks and developments to continuously support decision-making.assessment of their production capacity and after-sales service
fulfil contracts; and they must have quality control and assurance capabilities and site visits to evaluate potential suppliers before optimise supply chain processes and to achieve stable safe
measures and plans customer service support oriented to client adding them to our supplier database. For suppliers who pass and sustainable development of the supply chain.needs and no history of legal violations in business operations. We initial screening and preliminary evaluation we engage a third
conduct periodic performance evaluations and implement tiered party to conduct factory audits prior to formally partnering with 2 Assessment and prioritisation 4 Management
management of suppliers based on our evaluation of compliance them. Furthermore follow-up audits are conducted throughout
and service quality. the partnership where necessary. For product development and We conduct thorough risk assessments of existing suppliers Operational procedures are streamlined and standardised to avoid
production when finalising the product formula suppliers are covering their production capacity quality control and delivery supply chain security risks.In the process of selecting and approving suppliers we conduct required to produce samples for testing by an accredited third- capabi l i t ies. Histor ical data and experience are used to
research and studies on the supplier market steadily strengthen party laboratory. Third-party testing reports are updated annually. quantify the probability of identified risks escalating potential
supplier development and require that domestic suppliers be During mass production factory analysis certificates are verified
certified through a state-certified supervisory and management losses and safety hazards with a view to clari fying the for each batch. Additionally all incoming products undergo visual
information platform. The company reviews suppliers’ certification severity and urgency of risks. Based on these assessments inspection and labels traceability codes (if applicable) and product
information and business information runs checks to determine we formulate supplier classification strategies and engage in barcodes are cross-checked for accuracy and clarity before being
whether suppliers have any record of legal or regulatory violations accepted into inventory. heightened monitoring and management for high-risk suppliers.and strictly implements supplier audit and selection processes. Simultaneously we actively seek new high-quality suppliers to
* Tiered supplier management reduce reliance on single sources and diversify supply chain
* Supplier admission risks.According to the company’s “Supplier Management RegulationsFor public procurement projects such as open bidding open (Trial)” the company based on the results of dynamic evaluation
competitive negotiations and open inquiries the winning bidder or manages suppliers under a tiered system that includes:
the bid awardee can be directly included in the company’s supplier
Strengthening Supply Chain Risk Management to Counteract Extreme WeatherTo mitigate the impact of frequent extreme weather events Emergency Response Plan”. This initiative aims to achieve
Grade A (excellent suppliers) Grade C (suppliers subject to rectification) such as typhoons and heavy rainfall in Hainan on logistics “proactive risk anticipation and rapid efficient response”
operations the company systematically enhanced supply maximising distribution stability from warehouses to all pickup
When a division issues a procurement invitation Grade There are deficiencies that should be focused on and subjectchain risk management centred on its “Special Scenario points.A suppliers within the division should be given priority to to rectification. Generally procurement transactions shall be
participate in the procurement project within its scope suspended during the rectification period. For an individual
of business under the same commercial terms. Grade A supplier with which a procurement transaction cannot be
suppliers shall be downgraded to Grade B if they have not suspended the purchaser shall negotiate with the main
had procurement transactions with the division for one year person responsible inform the supplier to improve its service
since the date of the last completed contract. level and supply quality and try to develop or cultivate
alternative suppliers. Specific measures and mechanisms include:
Grade B (good suppliers) Grade D (suppliers should be phased out) 1. Establishing Tiered Early Warning and Proactive Response 3. Developing Diversified Stock-Shortage Solutions: For out-
Mechanisms: When meteorological authorities issue an of-stock or damaged goods identified during dispatch the
Orange (or higher) alert the system automatically triggers plan provides multiple resolutions including emergency
Suppliers with which there is regular business cooperation. Suppliers with which procurement transactions should be emergency protocols. Logistics teams must assess and
suspended for three years. store transfers split-order shipments complimentary gift apply to suspend online “Port Pickup” services within one compensation (Sanya Warehouse only) and customer
hour. Communication with pickup points and transport
service-led refund/re-mailing agreements. Execution
providers must be completed within two hours. Non-local
In according with the requirements of the SASAC the company dynamic evaluation results serve as an important basis for supplier orders will be prioritised for delivery three days before plans must be confirmed within 10 minutes of identifying
implements a supplier evaluation model that combines dynamic grading and selection. departure based on storage capacity. shortages prioritising the customer experience.evaluation and annual qualification inspection and under which the
2. Detailing Round-the-Clock Emergency Procedures: The
Impact Risk and Opportunity Management plan defines distinct daytime and nighttime response Results were significant: Through these meticulous time-protocols for sudden incidents like vehicle breakdowns. sensitive controls the company effectively reduced cargo
For example during operational hours alternative vehicle delays and customer complaints during extreme weather
or towing solutions must be formulated and reported
challenges including the 2025 typhoon season. Annual
Through effective risk and internal control management the optimising supply chain processes we enhance efficiency and within 30 minutes of an incident. Information must be customer complaint rates attributable to supply chain issues
company maintains its strong market reputation customer effectiveness ensuring the development of stable secure and relayed to customer services within 25 minutes enabling were contained at a remarkably low level of 0.000845%.satisfaction and industry-leading position. By continuously sustainable supply chains. them to notify consumers of delays within 30 minutes
ensuring closed-loop management.
64 65China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
identify optimal shipping routes and prioritise deliveries to reduce In 2025 the company continued to optimise the layout of its
Metrics and Targets carbon emissions. Additionally we conduct regular training for warehousing centres the warehousing centres covered a total area of
drivers and dispatchers to enhance their understanding and skills
The company’s key supply management metrics are as follows: in respect of efficient transportation and ensure that resource
utilisation is maximised for each trip. 546000
Metrics Tier 2 metrics Unit 2025 In warehouse management the company has fully applied artificial
intelligence (AI) and remote-control technologies to improve overall square metres
Total number of brand partner / Number 760 warehousing and logistics efficiency. A warehouse management
system is installed and adopted in each centre to standardise
Chinese Mainland Number 281 warehouse operations in a more scientific and reasonable way
to improve the efficiency of warehouse management. We have
Number of brand partners by Chinese Hong Kong SAR deployed the Internet of Things (IoT) and management control The company also uses the box-type robot it can pinpoint and
Number 207
geographical regio Macau SAR and Taiwan region systems such as automated guided vehicle (AGV) robots transport goods with specific SKUs enabling higher sorting
and autonomous case-handling robots (ACR) and automatic precision. The official launch of the box-type robot has significantly
equipment such as clothing hanging chains and four-way shuttles
Overseas Number 272 improved the overall operating capacity of the Qianhai e-commerce
for integrated storage handling and warehousing in logistics warehouse and doubled its order picking capacity resulting in an
centres in Shanghai Shenzhen and Hainan. These systems
Total number of non-brand suppliers error rate of less than 1/10000. Moreover the box-type robot / Number 1642 and equipment enable intelligent handling picking and sorting has also helped the warehouse surpass the previous height limits
and optimise processes for inbound warehousing inventory imposed by manual order picking. As a result the warehouse has
Chinese Mainland Number 1512 management replenishment sorting and shipping. Meanwhile been able to expand the number of shelf layers from 4 to 7 which
the company introduced and implemented a high-density racking has doubled its cargo box storage capacity from 4500 to 9000.Number of non-brand suppliers by Chinese Hong Kong SAR system using high-level pallet four-way shuttles. Utilising vertical
Number 95 In addition the box-type robot operates in a paperless manner by
geographical region Macau SAR and Taiwan region space significantly increased storage capacity per unit area. The skipping order printing. It substantially enhanced picking efficiency
system’s efficient automated storage and retrieval capabilities also and accuracy.Overseas Number 35 reduced equipment idling labour costs and energy consumption
thereby improving the overall utilisation efficiency of logistics
Total number of Level I resources.Classification of non-brand suppliers Number 170
suppliers
The company’s key supply chain security metrics are as follows:
Metric Unit 2025 Target
Major risk incidents occurring in supply chain Cases 0 0
Suppliers involved in major risk incidents
Number of suppliers 0 0
along the supply chai
Individuals involved in major risk incidents
Person 0 0
along the supply chain.AGV robots storage Clothing hanging chains
Intelligent Supply Chain Management
We are committed to digitalising and visualising the supply chain from business partners fully demonstrating the positive effects
system and improving its efficiency and resilience by improving of internal optimisation and restructuring within the pick-up point
information transparency. Through a visualised supply chain network.system we can monitor and track the logistics inventory deliveries
and other key indicators along the entire supply chain in real time. The company is clearly aware of the key role played by suppliers
Using visualised data the management and relevant teams can in the supply chain. Data exchange and supply chain integration
clearly understand the status and trend of the supply chain. A between suppliers manufacturers and distributors is achieved
digitalised supply chain system can be used to more accurately through a visualised platform and digitalised supply chain helping
predict demand optimise inventory management and achieve provide standardised and digitalised information of merchandise.rapid responses and flexible adjustments of the supply chain As a result operational efficiency is improved for enterprises and
reducing costs and risks. supply chain partners and they are able to engage in harmonious
win-win cooperation.In 2025 the company continued to optimise leased pick-up areas Four-way shuttles and AGV robots storage
personnel structures and vehicle distribution routes at ports and The company considers the geographical location and climate
airports in Hainan. This reduced pick-up and distribution costs. The of key suppliers in its supply chain management. Through the
company also successively took over off-island pick-up operations visualised intelligent supply chain platform logistics personnel can
66 67China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Establish green supply chain To achieve this goal we:
The company gives priority to partners who focus on environmental Usage rate of energy-saving lighting in company-owned warehouses
protection and sustainable development to ensure that all players Promote the comprehensive use of reusable load carriers Optimise the digitalisation of operational processes
involved in the supply chain are committed to emissions reduction
energy conservation and intelligent optimisation. 100% Customise supplier cartons in warehouses for reuse Continuously improve the supply chain information
as storage containers fitting rack dimensions. This system promoting end-to-end online operations for
secondary use saved approximately 7000 new cartons in orders handovers and warehousing.Green Transportation 2025.The company focuses on decarbonisation potential within the Prioritise using pallets from incoming supplier goods to Implement paperless warehouse management using greenhouse gas emissions. Furthermore the Haikou International
avoid purchasing new wooden pallets reducing timber fingerprint recognition systems for personnel access logistics process. Through technological upgrades management Duty-Free Shopping Complex aligned with the call to develop a
consumption. Fully adopt long-lasting reusable plastic registration instead of traditional paper records.optimisation and model innovation we are building an efficient and low-altitude economy by innovatively adopting drone delivery for pallets in bonded warehouses in Hainan for storage and
low-carbon green logistics system. duty-free goods. Departing from the complex drones can reach logistics replacing traditional single-use wooden pallets.the Haikou Railway South Port Terminal located 1 kilometre away
We promote the use of energy-saving lighting across all logistics in only 1 minute and 24 seconds reducing transportation costs Use recycled cartons and reusable biodegradable
centres. Comprehensive energy-saving retrofits of lighting by nearly 30% and cutting delivery times from 20 minutes to 3 eco-friendly plastic boxes as containers for warehouse
equipment were completed at the Sanya logistics base and the minutes. storage.Chengmai Comprehensive Bonded Zone warehouse achieving
a 100% usage rate of energy-saving lighting in company-owned We emphasise bui ld ing employee capabi l i t ies in energy
warehouses. conservation. Logistics centres organise specialised training Scientific and reasonable warehouse layout Use energy-saving and environmentally-friendly equipment
on optimising logistics routes warehousing processes and and facilities
We promote the use of new energy transport vehicles in the the energy-efficient operation of logistics equipment. Through
Consolidate scattered warehouses into integrated Use LED lighting
transportation segment and strive to optimise the loading efficiency practical case analysis and on-site demonstrations we strengthen warehousing and distribution centres.of logistics vehicles to minimise resource waste. To this end employees’ practical energy-saving skills turning conservation Optimise the loading capacity and utilisation of transport Comprehensively deploy electric forklifts
the company has deployed an advanced logistics transportation concepts into concrete actions. Additionally we conduct regular vehicles to avoid the unnecessary waste of transport
management system that intelligently analyses optimal loading training for drivers and dispatchers to enhance their understanding capacity enhancing logistics chain efficiency. Explore other clean energy equipment
plans based on real-time order data. Furthermore we have and skills in respect of efficient transportation urge our fleet
adjusted our policy to allow mixed-load transportation of duty-free operators to cultivate good driving habits strictly carry out daily
goods and non-dutiable items eliminating mandatory separate maintenance and fuel management and smartly select driving
shipments and ensuring each vehicle achieves maximum loading routes and ensure that resource utilisation is maximised for each Supplier ESG Management
efficiency reduce empty runs and partial loads thereby reducing trip.The company rigorously adheres to admission and evaluation The company proactively builds and participates in green supply
mechanisms. Beyond traditional metrics like quality cost and chain ecosystems. During supplier selection we encourage
delivery timelines sustainability elements including environmental increased adoption of eco-friendly products and services mandate
Green Warehousing protection and social responsibility are integrated into the core the use of sustainable packaging materials (e.g. recyclable
assessment framework. Specialised agreements are executed to materials glue-free cartons) and actively partner with stakeholders
The company is actively responding to national policies in emissions. We operationalise the “circular economy” concept in define mutual responsibilities and regular performance reviews are on innovative practices – such as promoting reusable transitthe comprehensive implementation and promotion of green warehousing operations. Our objective is: “No new purchase of conducted to collaborate with suppliers on improvements. packaging – to collectively reduce our environmental footprint.warehousing. We aim to reduce transportation costs and improve pallets no new purchase of single-use storage containers and
The company signs Sustainable Development Agreements withwarehousing efficiency in order to conserve energy and reduce We defined environmental requirements in procurement policies strong promotion of reusable operational tools during operations.”
suppliers to clarify responsibilities in respect of environmental and guidelines. For example we included goals for reducing
protection and social accountability. In terms of oversight we packaging waste to save resources and promote sustainable
conduct regular reviews to monitor suppliers’ environmental development. In 2025 we conducted in-depth communication
performance with a focus on their implementation of environmental with and audits of suppliers to ensure they meet the latest
policies and measures. The company conducts on-site visits environmental standards and requirements. For example
to supplier factories to verify the environmental sustainability of we give priority to suppliers with ISO 14001 certification for
packaging materials throughout production and transportation. environmental management systems. In terms of supervision we
Suppliers demonstrating strong performance receive higher have strengthened our mechanism for evaluating and monitoring
composite scores. Furthermore to prevent excessive packaging suppliers’ environmental performance. For procurement projects
procurement and reduce warehouse space utilisation we place exceeding CNY5 million during the prequalification stage bids
significant emphasis on evaluating our suppliers’ capability for are evaluated based on whether suppliers have obtained the
frequent small-volume deliveries. ISO 14001 certification. Shortlisted suppliers must demonstrate
robust environmental protection capabilities and submit Safety and
Civilised Construction Plans so we can ensure they will adhere to
local environmental requirements during operations.
68 69China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Engaging in Good Initiatives to Act as a Case study
Responsible Corporate Xiamen Downtown Duty-Free Store reopens facilitating the development of the region’s
duty-free economy
Creating Better Lives On 26 May 2025 the company’s Xiamen Downtown Duty-Free
Store reopened after a transformation and upgrade in line with
new policy. The store now features internationally renowned
brands across fashion & beauty luxury accessories and fine
We consistently fulfil our corporate mission through concrete company proactively advanced the development of downtown wines & spirits. As the first downtown duty-free store in Fujian
actions. We provide premium products and services creating duty-free stores. All 12 city stores commenced full operations with Province Xiamen Downtown Duty-Free Store complements
better lives for our customers while striving to become an advocate stable performance including: the renovation and upgrading of 6 existing port duty-free operations injecting fresh momentum
for quality living and happiness. existing stores in Sanya Dalian Qingdao Xiamen Shanghai and into the development of the region’s duty-free economy.Beijing; and the successful launch of 6 newly awarded stores in
In 2025 responding to new downtown duty-free policies the Shenzhen Guangzhou Chengdu Xi’an Tianjin and Fuzhou.Store Renovation and Upgrading Xiemen Downtown Duty-Free Store
Case study
Dalian Downtown Duty-Free Store launched a Mother’s Day campaign delivering
heart-warming shopping experiences
Sanya Downtown Duty-Free Store
During Mother’s Day 2025 cdf Dalian Downtown Duty-
Free Store curated exclusive shopping activities featuring
globally selected premium products and sincere promotions
to create heart-warming shopping experiences. As China’s
first downtown duty-free store opening after the new national Shanghai Downtown Duty-Free Store
policy implementation Dalian Downtown Duty-Free Store offers
diverse merchandise spanning cosmetics skincare perfumes
watches jewellery sunglasses wine and food. Capitalising on Beijing Downtown Duty-Free Store
policy advantages and channel strengths the store introduced
international first-tier brands alongside distinctive domestic chic
products achieving a unique fusion where global selections
meet local culture.Successful Opening of New Bid-Winning Stores
Case study
Case study
Responding to new policy cdf Qingdao Downtown Duty-Free Store completes a
transformation and upgrade CDFG unveils the first downtown duty-free store in Shenzhen advancing its development as
an international consumer hub
On 20 May 2025 the company’s Qingdao Downtown Duty-
Free Store completed its transformation and upgrade following On 26 August 2025 marking the 45th anniversary of
the release of the new downtown duty-free policy. The Shenzhen’s special economic zone cdf Shenzhen State-owned
store introduced over 100 internationally renowned brands Duty-free Commodities (Group) Co. Ltd. and Shum Yip Group
establishing a diversified duty-free product portfolio focused jointly launched the Shenzhen Downtown Duty-Free Store
on beauty & fragrance premium wines & spirits and fashion advancing the city’s development as an international consumer
accessories. As the company’s first downtown duty-free project hub and injecting new momentum into the Guangdong-Hong
in Shandong Province the store’s opening further strengthens Kong-Macao Greater Bay Area. Located on the first floor of
Qingdao’s duty-free commercial landscape caters to multi- Shum Yip Upperhills in Futian District’s core commercial area
tiered consumer demand and drives the retention of regional the 3000-square-metre project features both duty-free and
premium consumption. taxable product zones.Shenzhen Downtown Duty-Free Store
70 71China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Case study Promoting industry development
Guangzhou welcomes its first downtown duty-free store to energise the city as an As a leader in the travel retail sector CDFG actively participates in
international consumer hub major industry events such as the China International Consumer
Products Expo in Hainan and the China International Import Expo
(CIIE) and hosts events like the Global Brands Meeting. We
On 26 August 2025 the first downtown duty-free store opened
continuously drive innovation within the duty-free industry.in Guangzhou marking a significant step in Guangzhou’s
progress as an international consumer hub. Developed by Case study
CDFG Guangzhou Grandbuy Co. Ltd. Guangzhou Lingnan
Group Holdings Company Limited and Baiyun Airport the store CDFG Hosts 2025 CDFG Global Brands meeting fostering dialogue across the global travel
is strategically positioned in a central commercial district to
attract both local consumers and global visitors. retail industry
The design integrates Guangzhou’s “City of Flowers” identity In March 2025 the 2025 CDFG Global Brands Meeting introduce flagship stores and exclusive debut products through
with a China-chic-themed taxable area showcasing Guangcai themed “Redefine Frontiers Synergise Futures” was held in CDFG enriching product offerings and enhancing the service
porcelain ivory carving techniques and modern design to Sanya Hainan. The meeting focused on core topics including experience for global consumers.create culturally rich takeaway souvenirs. This “scene-based policy direction industry trends and cutting-edge technologiesconsumption + cultural experience” model fosters a new providing global brand partners with in-depth insights into
tourism retail ecosystem offering consumers a unique blend of the Chinese travel retail market. By building stronger bridges Domestic and China-chic products
urban identity regional culture and duty-free shopping while for communication and collaboration CDFG provides global
promoting China’s intangible cultural heritage. brand partners with more precise market positioning efficient
operational support and diversified marketing strategies
supporting their sustainable growth in the Chinese market.Mr. Fan Yunjun Chairman of CDFG delivered remarks at the
Case study conference. He stated that the company will adhere to the
cdf wins bids for Chengdu and Tianjin Downtown Duty-Free Stores advancing high-quality fundamental principles of “Integrity with Innovation Efficiency Enhancement and Integrated Development” to drive high-
growth in the duty-free industry and regional economic prosperity quality growth. He expressed CDFG’s commitment to providing
partner brands with deeper consumer insights and market
On 9 and 13 January 2025 cdf successfully secured bids for city and vital to the coordinated development of the Beijing- development opportunities. He also encouraged more brands to
the Chengdu and Tianjin Downtown Duty-Free Store projects. Tianjin-Hebei region will see its Downtown Duty-Free Store
As the economic technological innovation and international located at the Yanlord ISETAN department store within the Oldexchange hub of western China the Chengdu Downtown Duty- Town Commercial District. This store themed as a “Shopping cdf showcases at the 5th CIIE sharing new opportunities with global partnersFree Store is strategically positioned at the Yanlord Landmark Museum” aims to become a new urban consumption landmark
in the prime CBD location offering significant locational with extensive regional reach. April 2025 saw the 5th China International Consumer Products
advantages. Tianjin a key international consumption hub Expo held in Hainan creating opportunities for global enterprises
to access the Chinese market and for Chinese companies to
expand internationally. 2025 marks the year of Hainan Free
Trade Port’s customs closure the fifth consecutive CIIE and
the fifth consecutive year of cdf’s participation.Our main pavilion adopted the theme “Harmony in Structure”
( 方圆之间 ) featuring an open transparent layout with tailored
atmospheric and scenography designs for each product
category. This created a unique visitor experience where each
step revealed new products and vistas. Leveraging our brand
management expertise we featured multiple renowned brands
across diverse categories comprehensively presenting premium Our “Harmony in Structure” pavilion
domestic and international goods while demonstrating industry
Chengdu Downtown Duty-Free Store Tianjin Downtown Duty-Free Store leadership.Additionally we hosted a catwalk show in the atrium of
Haikou International Duty-Free Shopping Complex. Combining
an exhibition with a runway presentation this dynamicallyDowntown duty-free stores represent a significant opportunity + duty-paid” “offline + online” and “imported + domestic” goods.showcased apparel jewellery cosmetics and trending items.to shape urban commercial landscapes serve as platforms for This creates immersive new consumer experiences meeting This innovative retail concept unlocks consumer spending
promoting Chinese culture and act as incubators for China-chic customers’ growing aspirations for a better life while advancing the potential supports Hainan Free Trade Port’s development as a
brands. Leveraging our unique strengths the company is building high-quality growth of the regional duty-free sector and fostering global consumption hub and generates fresh opportunities foran integrated triple-element business model combining “duty-free local economic prosperity. worldwide retail innovation and travel retail development.High-end fashion show at Haikou International Duty-Free Shopping
Complex
72 73China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Volunteer Activities Case study
The company organises volunteer activities to demonstrate its Hainan DF and its affiliated stores conduct various volunteer service activities
corporate social responsibility and commitment striving to build
a distinctive volunteering brand. Haikou Meilan Airport Duty-Free
Shop Hainan DF Sanya Downtown Store and Hangzhou cdf have In 2025 Hainan DF’s volunteer service team had 322 registered these efforts contributed a total of 6252.3 hours of community
successively established dedicated volunteering teams. volunteers and organised 23 volunteer initiatives. Collectively service including:
On 12 March 2025 Hainan DF organised 17 Party members
from its employees to participate in a government-led volunteer
Case study tree-planting activity at Hainan University’s Guanlanhu Campus
in Haikou’s Longhua District. This effort aimed to enhance
Meilan Store launches the “Red Wingsail” Party Member Volunteer Service Team and ecological foundations and enrich the environmental legacies of
conducts various volunteer activities the development of the Hainan Free Trade Port.In March 2025 Hainan DF’s
Meilan Store formally launched
the “Red Wingsail” Party Member
Volunteer Service Team and On 21 March 2025 Hainan DF organised a public welfare
hos ted a f l ag p resen ta t ion donat ion event for “Earth Hour”. Employees act ive ly
ceremony to mark its off icial participated collecting 571 donated items including clothing
establ ishment. This init iat ive daily necessities educational supplies children’s books and
aimed to inspire Party member toys. These materials were then handed over to the Hainan-
volunteers to deliver the warmth based charitable organisation “Tong Aihui” for centralised
and care of the Party with passion collection and distribution to those in need.and professional expertise. Flag presentation ceremony for the “Red Wingsail” Party Member Volunteer Service Team
In May the “Red Wingsail” Party In July 2025 the general party branch and Youth League
Member Volunteer Service Team Committee of Riyue Store collaborated with the Youth League
selected Party members and Committee of Longhua District Haikou City to conduct a
active members to participate volunteer initiative focused on improving the living environment
in the all-ages-friendly hiking in Huaken Community Longhua District. This activity aimedevent “Walking with Twil ight to mitigate the risk of mosquito-borne diseases such asResonating with Happiness” chikungunya and dengue fever thereby enhancing public health
o rgan i sed by the Pub l i c i t y safety.Department of Meilan District in
Haikou. Volunteers assisted with
participant registration and supply Volunteer service photography session for Information session on offshore duty-free
distribution. Leveraging their the hiking event policies and preventing the resale of duty-
professional expertise they also free goods
conducted on-site presentations Case study
explaining the offshore duty-free Sanya Downtown Store launches diverse volunteer activities
shopping policies and shared
knowledge on preventing duty-
free goods reselling. In 2025 the Sanya Downtown Store conducted 20 volunteer
service activities covering ecological and environmental
protection traffic management and community services
In October the “Red Wingsail” Party Member Volunteer City. They delivered compassionate support including check- accumulating nearly 800 volunteer service hours.Service Team at Meilan Store collaborated closely with the in assistance crowd management organising competition First we further enhanced our “Clean the Blue Ocean Guardmarketing team to provide volunteer services at the 2025 materials and guiding guests exemplifying the brand’s warmth the Green Forest” initiative. Centred around key dates such as
Haikou Meilan Fishing Village Dragon Boat Race Grand Finals and social responsibilities. Arbor Day World Earth Day and National Ecology Day the
hosted by the Meilan District People’s Government of Haikou company organised young volunteers to carry out activities such
as mangrove conservation beach clean-ups and wind disaster
relief in areas including Tielu Port. A total of 11 activities were
held throughout the year involving approximately 200 volunteer
participations.Second we explored the “Culture & Tourism Pioneer”
( 文 旅 先 锋 ) service brand. Young volunteers were organised
to provide services at three major cultural and tourism events On 12 March 2025 the Sanya Downtown Store organised an Arborsuch as the Women’s Elite Marathon and a Jay Chou concert Day activity themed “Protecting Nature’s Verdure by ‘Cleaning thedemonstrating the positive spirit of the cdf youth. Blue Ocean Guarding the Green Forest’ Conserving Wetland PurityThird we promoted the regularisation of volunteer services. through Mangrove Maintenance” at Tielu Port Haitang Bay. The
By strengthening cooperation with local public welfare “CDF Pioneer”( 免 税 先 锋 ) volunteer team performed maintenance
organisations we carried out six regular activities such as caring on trees planted by the company in previous years.for children championing the volunteer spirit of “dedicationfriendship mutual support and progress”.
74 75China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Case study Overseas Social Responsibility
The company takes action to build a green marine network utilising diverse models to co- We actively fulfil our overseas social responsibilities contributing to
create an azure coastline the sustainable development of local communities.In 2025 cdf deepened its collaboration with Alipay by company has extended the “tap and donate” initiative offline.upgrading its philanthropic initiative through the “tap and donate On 22 April marking the 56th World Earth Day cdf partnered( 你 碰 我 捐 )” model. For every transaction completed using with Alipay and the SEE Foundation to conduct a seagrass Case study
Alipay’s “Tap to Pay” function at CTG DUTY-FREE stores we restoration activity at the Haikou Dongzhai Port Science
will donate CNY1 to the SEE Foundation for Halophila beccarii Academy Qukou Research Base. Over 40 participants – CDFG (Cambodia) Limited launches the “Cambodian Cultural Creations” Love & Charityrestoration. This creates a sustainable loop linking “commercial including representatives from cdf Alipay the SEE Foundation Journey to support child welfare Initiativesconsumption – environmental donation – ecological restoration”. and cdf members – successfully transplanted 120 planting
units of Halophila beccarii and Halophila ovalis restoring Since October 2014 CDFG (Cambodia) Limited has provided
To transform online philanthropy into tangible action the approximately 200 square metres of seagrass beds. targeted assistance to the Cambodia Children’s Art Orphanage under the theme “The Love & Charity Journey”. On 28
November 2025 CDFG (Cambodia) Limited launched the
“Cambodian Cultural Creations” Love & Charity Journey at
the orphanage with employees making voluntary donations
and actively participating. The initiative involved donating daily
necessities (such as original T-shirts cultural creation products
stationery and food & beverages) to the orphanage. Activities
such as interactive painting sessions provided companionship
and care supporting child welfare causes. This innovative
“Philanthropy + Cultural Creativity” model shapes cdf’s brand
image as equally prioritising commercial and social value
enhances its affinity within the Southeast Asian market and
increases consumer recognition of “cdf Cultural Creations”.Case study
Adhering to a “localisation” personnel strategy and building a China-Cambodia talent bridge
Over the past decade cdf has consistently upheld its ‘people-
oriented’ philosophy recruiting and training hundreds of Chinese
and Cambodian staff members and contributing to a localised and
high-performing talent pool for the company.The CDFG (Cambodia) team steadfastly implements a “localisation”
strategy with middle-management positions consistently filled
by Cambodian employees. This approach has directly created
The event featured a mangrove ecosystem tour with volunteers visiting the adjacent Dongzhai Port National Nature Reserve by boat. over 500 employment opportunities in Cambodia establishing
the company as a significant driver of local employment.Simultaneously the company persists in providing frontline staff
with Chinese language training using language and cultural bonds
as a bridge to foster communication.Case study
Hangzhou cdf actively engages in diverse public welfare initiatives We closely align with “national priorities Hong Kong’s strengths level upholding the principle of “patriots administering Hong Kong.”and corporate capabilities” to boost Hong Kong’s development We maintain a sustained focus on Hong Kong youth development
momentum through the extensive recruitment of local staff. Leveraging actively participating in government and Hong Kong Chinese
Hangzhou cdf established the “Qihang Vanguard Team” echinococcosis patients in Xizang Autonomous Region; and community networks we collaborate with grassroots organisations Enterprises Association youth employment and internship schemes.through its joint party branch to promote civilised shopping it continued its clothing donation programme cumulatively Hong Kong-based enterprises and universities to deliver community Initiatives include providing local job opportunities delivering patriotic
campaigns during Q2 2025; it participated in the China Charity contributing 117.4 kg of used garments to the China Charity volunteering staff discount programmes and support for competitions training programmes for Hong Kong employees and implementing
Federation’s “Paper for Love Initiative” to support treatment Federation by 2025. like the Hong Kong Inter-University Basketball Tournament. This mentorship programmes to support disadvantaged students thereby
for underprivileged children with congenital heart disease and consolidates patriotic and pro-Hong Kong sentiment at the grassroots fostering unity and cohesion among Hong Kong’s youth.
76 77China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Promoting the Comprehensive Revitalisation of Rural Areas to Create
The company has invested CNY 3 million in the Beautiful pottery lamps. The plan is to create a cultural and creative
a New Vision for the Modernisation of Agriculture and Rural Areas Village Enhancement Project for the Xuanfu Cultural street featuring over 20 businesses that integrate Dai
Block in Nayun Ancient Town Menglian county. The ethnic cuisine coffee tasting avocado tasting and small
investment includes the renovation of street facades specialty goods thereby expanding local industrial chains
buildings and walls as well as the construction of new to help residents create wealth.The company is committed to serving and advancing the national employees serving as temporary cadres in Menglian county and guardrails movable planters flowerpots and Dai ethnic
rural revitalisation strategy. To this end the company has Ximeng county Yunnan province on the implementation of 16
increased its support for key targets with a view to improving rural support projects across the five pillars: industrial revitalisation
industries rural infrastructure and rural governance. We have talent revitalisation cultural revitalisation ecological revitalisation
strived to increase agricultural efficiency boost rural vitality and and organisational revitalisation. Based on thorough research and
raise farmers’ incomes thereby providing fundamental support for taking into account local talent needs our employees organised
Chinese modernisation. training programmes targeting grassroots officials at the county
township and village levels as well as champions of rural
In 2025 the company invested CNY 16.88 mill ion in non- revitalisation and wealth creation and technical professionals. In
reimbursable assistance funds and mobilised CNY 10.05 million in 2025 they trained a total of 1690 participants providing significant
various types of support funds. Additionally the company donated support for rural revitalisation efforts in the two counties in terms of
school uniforms about CNY 0.6 million. We also supervised our talent development.Talent Revitalisation
Rural revitalisation hinges on talent.The company continues to help build a solid talent foundation for
rural revitalisation. In 2025 we organised a training programme
to upskill grassroots officials and champions of wealth creation in
Jinggu and Ning’er counties in Yunnan province; and 78 county
township and village officials and champions participated.A school uniform donation certificate from Ximeng county A school uniform donation certificate from Menglian county Focusing on industrial development trends and grassroots
governance these immersive learning sessions delivered strong
and sustainable endogenous momentum for the rural revitalisation
of Ximeng county.Industrial Revitalisation A visit to a key demonstration site at a vegetable industrial park in
Jinggu county
Industrial revitalisation forms the foundation for the comprehensive The company cares deeply about education in remote border
revitalisation of rural areas. areas. In 2025 we supported the recording classroom project
at Ximeng County Ethnic Primary School. This initiative aims to
enable more students to access diverse and abundant teaching
resources broaden professional development channels for
The company has invested CNY 2.1 million in Hui’e village sachets therapeutic food packages and Dai ethnic teachers facilitate the transition from traditional to smart classroom
and Jingmao village Jingxin township Menglian county medicinal herb bags. Additionally a product exhibition models and promote the sharing of high-quality educational
to cultivate Amomum ( 砂仁 ) under forest canopies. This and experience platform has been established to provide resources across regions.includes constructing a standardised processing facility technical training and career development opportunities.for Amomum introducing advanced planting techniques These efforts aim to enhance farmers’ production skills
and equipment and developing distinctive cultural and overall competencies thereby advancing agricultural
and tourism products such as Amomum foot soaking modernisation.The company continues to support the “Star of Hope: GoodTeachers” training programme. In 2025 the company organised
the selection of backbone teachers from 27 primary schools
across seven townships in Ximeng county to participate in an
exchange programme in Zhuhai city Guangdong province.This initiative is designed to enhance teachers’ subject-specific
expertise and improve teaching quality. Through our support for
faculty development in rural areas we are effectively narrowing
the urban-rural education gap and laying a solid educational
foundation for rural revitalisation.
78 79China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Prosperity
Cultural Revitalisation Organisational Revitalisation
Organisational revitalisation is key to advancing the modernisation
Rural revitalisation begins with prioritising the preservation of cultural heritage. of rural governance.The company supported Xiaoxinzhai a tradit ional The company also supported the “Washan Dancers”
settlement of the Wa ethnic group in Yuesong village Supporting Facilities Enhancement Project in Yong’e of
Yuesong township Ximeng county in its project to improve Mashan village Mengka town Ximeng county. This project
its living environment and enhance red cultural tourism. includes providing 80 sets of traditional ethnic costumes
This includes establishing a Party-building corner setting repairing the stage and improving stage facilities. These
up promotional exhibition boards collecting historical relics efforts effectively enhance the quality and visual impact of
from the Red Flag Militia Company’s battles exploring ethnic dance performances promote and preserve ethnic
the connotations of red frontier defence culture and culture and enrich the spiritual and cultural life of the local
constructing a red educational base in Ximeng county. community.These efforts are enhancing the visibility and influence
of the Wa ethnic settlement as a tourist attraction and
strengthening its cohesion.Kunming cdf signed co-construction agreements The company also organised leading officials from
with four grassroots Party organisations in Menglian Mengl ian county to attend a special ised trainingcounty and Ximeng county for 2024. By signing these programme in Shenzhen on “Embracing the Spiritagreements Kunming cdf committed to working with of Reform and Opening-up to Promote High-qualitythese organisations to hold joint Party-building activities Development in Menglian County”.exploring ways to enhance rural governance through
strengthened Party-building.Ecological Revitalisation Consumption-based Poverty Alleviation
Purchased distinctive agricultural products
The company mobilised its trade unions at various levels to purchase distinctive agricultural during the year
products from counties that had achieved poverty alleviation. In 2025 we spent a total of
Building a liveable and business-friendly harmonious and beautiful CNY 1.64 million on agricultural products from Menglian county and Ximeng county.countryside enhances the well-being of farmers. 1.64 million
We supported an upgrade project for Support for Local Rural Industrial Development
the traditional Dai ethnic settlement we successfully boosted the collective
in Hui’e vi l lage Jingxin township Hainan DF carefully selected and dispatched rural revitalisation task force members to income of the village by over
M e n g l i a n c o u n t y . T h e p r o j e c t work at the grassroots level to support rural revitalisation in Yongfu village Baisha county
includes improvements to roads and in Hainan. They provided significant industrial assistance which helped increase villagers’
ancillary facilities and renovations incomes and improve their livelihoods. By collaborating with trade unions on consumption-
to villagers’ courtyard walls gates based poverty alleviation initiatives in 2025 we successfully boosted the collective income
and coloured steel roofing as well as of the village by over CNY 260000. 260000
supplementary greening initiatives.These efforts have elevated the local
living and ecological environment while Leveraging Our Strengths as a Tourism Retailer
enhancing infrastructure for industrial
development directly benefiting 786 To capitalise on our advantages as aresidents from 158 households. tourism retailer we set up a “Xing Lv YunPin” store for local agricultural products at
Sanya International Duty-Free Shopping
Complex and Haikou International Duty-
Free Shopping Complex. By introducing
new distinctive agricultural products we
facilitated the sale of CNY 2.16 million
worth of goods from 7 counties for which
the group has been assigned to provide
The company continues to advance the construction of the project is designed to upgrade tourism facilities in the Likan sub- general assistance and 1 county for which
the group has been assigned to provide
Likan Rural Resort in Mengsuo village Mengsuo town Ximeng unit contributing to the creation of a beautiful liveable business- special assistance. Meanwhile employees
county. New drainage ditches and potable water pipelines have friendly and visitor-ready village. It will also diversify local tourism serving as temporary cadres in Menglian Our “Xing Lv Yun Pin” store at Sanya Our “Xing Lv Yun Pin” store at Haikou
been installed and work is ongoing on the constant-temperature offerings and promote the in-depth integration of agriculture county and Ximeng county helped sell International Duty-Free Shopping Complex International Duty-Free Shopping Complex
heating system for the rural complex’s swimming pool. The culture and tourism. distinctive agricultural products worth
CNY 1.38 million. These efforts opened up
market channels for distinctive agricultural
products from formerly impoverished
regions empowering local farmers to grow
their incomes.
80 81China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
03
People
84 Employee Rights and Promoting Their
Interests
92 Operational Safety and Physical and Mental
Health
98 Enhancing Our Comprehensive Training
System to Support Employee evelopment
CTG DUTY-FREE actively responds to United Nations
(UN) Sustainable Development Goals (SDGs) 3 5
and 8. As a people-oriented organization. We are
committed to safeguarding employee rights fostering
a culture of care and support. We cultivate a nurturing
environment that enables our employees’ professional
growth while creating a secure equitable and
dynamic workplace.China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Employee Rights and Promoting Their Interests Employment Management
In regards of prohibiting child labour we strictly abide by to identify any potential instances of child labour or forced labour.labour laws and regulations check ID card during on-boarding Any suspected cases are subject to immediate investigation and
procedures and forbid the employment of child labour. In terms of employment of underage workers is promptly terminated. During
Employment Management preventing forced labour we strictly prohibit restricting employees’ the reporting year our company did not have any violations of laws freedoms or forcing employees to work by collecting deposits and regulations involving child labour or forced labour
detaining documents or engaging in threats. We periodically review
We consistently uphold the “people-oriented” management philosophy has signed such as the Equal Remuneration Convention and the Elimination employee records and conduct ongoing operational monitoring
regarding talent management and strictly comply with the Labour Law of Discrimination in Respect of Employment and Occupation. We adhere to
the Labour Contract Law and other laws and regulations as well as the the principles of honesty trustworthiness fairness and justice in our dealings
international human rights and labour conventions and protocols that China with employees and we fully guarantee their rights and interests.Holiday and Working Hours Management
Governance We strictly observe regulatory requirements regarding national comprehensive working hours. We strictly enforce the monthly 174
statutory holidays employees are entitled to annual leave working hour working system. As for excess working hours weMeasures” which also establishes fundamental principles for comprehensive maternity leave marriage leave parental leave parental care arrange compensated leave or pay overtime according to labour The company has established a clear governance framework for employee
management. The responsibilities of the Human Resources Department performance evaluation and clarifies supervision mechanisms for employees’
leave for single-child families and additional blood donation leave laws and regulations. While we strictly adhere to the Labour Lawwork in the “Performance Management Measures for Headquarters parent-teacher conference leave etc. According to the company’s stipulation that employees’ monthly overtime shall not exceed 36 and its subordinate teams are defined in the “Headquarters DepartmentResponsibilities and Organisational Structure”. Meanwhile we have Employees”. situation we implement two working hour systems: standard and hours to effectively protect employees’ rights to rest.specified the implementation measures for tenure-based and contractualmanagement of managerial personnel in the “Performance Management The employee management of the company is coordinated by the HumanMeasures for Headquarters Employees” which establishes fundamental Resources Department/Party Committee Organisation Department with
principles for comprehensive performance evaluation and clarifies supervision teams for talent recruitment talent development and training compensation
mechanisms for employees’ work. Meanwhile we have specified the and benefits management performance management and employee
implementation measures for tenure-based and contractual management of relationship positions. Democratic Managementmanagerial personnel in the “Tenure-based and Contractual ManagementWe continue to improve its democratic management system which is we collect opinions from general meetings of employee representatives
based on the trade union and the workers’ representative congresses. to ensure that decisions are made through consultation and on an
The company’s trade union is committed to safeguarding collective equal basis. We then make public announcements to all employees
Strategy bargaining rights of employees; and it carries out its work following or notify the relevant departments or individuals after decisions are the Trade Union Law the Constitution of the Chinese Trade Union made. Employees may also appeal to the trade union through email
and other laws and plays a vital role in public affairs. The trade union WeChat in person talks and other channels. In 2025 our trade union
effectively promotes the participation of employees in the company’s completed the headquarters union leadership election in compliance
As a vital asset to our sustainable development our workforce is supported by comprehensive process management systems designed to democratic management and deliberations involving major issues with our established policies electing new committees including the
ensure regulatory compliance in our employment practices while effectively attracting and retaining top talent. concerning the vital interests of employees. When formulating Union Committee the Funds Audit Committee and the Women’s Work
revising and deciding rules regulations and material issues that are Committee. A total of three staff congress meetings were convened
directly related to the vital interests of our employees such as labour throughout the year to safeguard employees’ rights to information
Risks Impact Mitigation measures remuneration working hours rest and leave labour safety and health participation expression and oversight.management insurance and welfare employee training labour
Employee attrition may lead to delayed response times S t r e n g t h e n c o m p r e h e n s i v e c o m p e n s a t i o n discipline headcount management etc.Employee retention potentially compromising customer service quality over management optimise incentive mechanisms and
the short term; sustained turnover risks may undermine foster a supportive work environment through regular
risks our competitive advantage and brand reputation in the employee well-being initiatives
marketplace over the medium and long term.Comprehensive Remuneration Management with performance incentives
Inadequate professional skills or a failure to adapt to evolving Establish robust talent development frameworks
Employee market demands may negatively affect service delivery deliver tiered and categorised training programmes for
standards over the short term; persistent skill gaps could all employees organise skills competitions to promote The company adheres to the concepts of market-oriented managerial assessments. No systematic gender-based pay gap
performance risks undermine our competitive advantage and brand reputation continuous learning and performance improvement
over the medium and long term. remuneration regular reviews of applicable salary standards
was identified during the reporting period.are conducted determines remuneration standards based on
the “double benchmarking” principle and matches the incentive
level with the company’s development and talent strategy. The
company has established a performance and remuneration
management system which aligns with the prioritises performance
Recruitment Management and follows the principles of fairness positive motivation and
sustainable development. We set the basic and performance
The company has developed a comprehensive employee Our company has formulated hiring criteria according to the actual salary ratios based on market practices. In this regard the
recruitment system and has recruited our employees through needs of each position without imposing any restrictions related company determines the basic salary based on the position
on-campus recruitment job fairs recruitment agencies online duties personal capabilities and other factors. The performance to age gender ethnicity religious beliefs or other characteristics. salary is linked to the company’s comprehensive performance
recruitment platforms and internal recruitment. We sign labour For high-end talents we insist on a combination of external the department’s performance and the individual’s performance
contracts with employees. We adhere to the recruitment principle of introductions and internal trainings attracting more talents on a forming a mechanism of effective incentives and restraints. 60% of
focusing both on integrity and ability. We also respect differences selective basis and selecting the best candidates to target for annual remuneration for corporate managers at all levels is linked to
encourage diversity and prohibit any form of discrimination from recruitment. corporate performance assessments. Actual performance-based
upholding the principles of fairness impartiality and openness. pay correlates with both enterprise evaluation scores and individual Our Trade Union election conference in 2025
84 85China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
The company actively implements the spirit of common prosperity to sign contracts that reward them strictly in accordance with
to share the fruits of its corporate development with employees. In performance appraisal results. Tenure incentives are only awarded Metrics and Targets
addition to basic salaries we have implemented enhanced salary to managers who meet the contractual performance standards.safeguards for front-line staff and strengthened baseline protections We are actively exploring the implementation of an excess
for lower-income employees and employees whose positions profit-sharing mechanism with plans to apply this approach to > > > > > > > > > >
may expose them to hardship danger and heavy workload. eligible subsidiaries starting from 2026. Currently we have not
The company formulates “One Enterprise One Policy” wage yet introduced equity incentive programmes or employee stock
standards based on regional average wages and our salary levels ownership plans (ESOPs). However when appropriate we will As of 2025 total number of employees Females in the total employees
are significantly higher than the local minimum wage standards. apply medium-to-long-term incentives to eligible subsidiaries to
Any employees who work a full year and receive incomes below further stimulate their innovation and creativity. 59.84 %Females in the Board of Directors
this standard are compensated accordingly. In 2025 we further 25 %
optimised our compensation standards for front-line employees All employee compensation and welfare systems undergo rigorous 14485 Person
in Hainan increased the basic wage level for such employees by scrutiny during the formulation and revision stages to ensure Females in the senior managerial roles 25 %
more than 15%. they are aligned with corporate policies and legal and regulatory
requirements. Prior to implementation these systems are also Females in the middle managerial roles
The company is actively advancing medium-to-long-term incentive subject to strict review procedures conducted by the workers’ 39.22 %
mechanisms. In terms of medium-to-long-term incentives the representative congresses. Meanwhile the Party Committee
company comprehensively implements a system under which conducts inspections and specialised audits to comprehensively
corporate managers at all levels are contractually managed examine subsidiary enterprises’ salary and welfare performance on
on a tenure basis. Under the system managers are required an annual basis.Resignations Management 2025 2024
Unless exceptional circumstances arise we general ly do Those who should be given economic compensation according to
not voluntarily sever or terminate the labour relationship with the law will receive corresponding compensation according to the The number of ethnic The percentage of ethnic
employees. If it is necessary to terminate or rescind an employee’s legal requirements. The company generally does not try to restrict Total number of employees minority employees minority employees
labour contract we strictly follow the process in accordance with employees’ choice of new jobs. For cases involving competition
the requirements and procedures of labour laws and regulations. restrictions such restrictions are handled according to the signed
agreement.
14485 Person 16027 Person 1221 Person 1468 Person 8.43 % 9.16 %
Impact Risk and Opportunity Management
The percentage of ethnic minority
The number of foreign employees The percentage of foreign employees
We regularly review our employee management policies and practices and we have integrated employee-related risks into our enterprise- employees in the management
wide risk management process.
4.55 % 504 Person 3.14 %We have put in place a closed-loop management system for employee-related risk encompassing “Risk Identification – Risk Assessment 5.45 % 470 Person 3.24 %– Risk Mitigation – Risk Monitoring”. This systematic approach enables precise prevention and control of sustainability-related risks while
proactively identifying potential value creation opportunities thereby facilitating synergistic growth between ESG value and business value. The percentage of foreign The number of physically
employees in the management challenged employees Females in the Board of Directors
Risk Identification Risk Assessment
Risk Identification: We identify potential Risk Assessment: We assess each 0.91 % 0.91 % 120 Person 128 Person 25 % 36.36 %
risk points in regards of employee ident i f ied r isk and assign to i t a
r ights safeguard ing recru i tment certa in r isk level across our r isk
managemen t l abou r p r ac t i ces continuum based on its likelihood of Females in the senior Females in the middle
guidelines working hours and holiday Females in the managementoccurrence magnitude time horizon managerial roles managerial roles
pol ic ies employee par t ic ipat ion
mechanisms and comprehensive and irremediability. For high-priority
compensat ion management wi th risks we promptly initiate a dedicated
performance incentives. This systematic assessment and work with relevant 38.18 % 36.36 % 25 % 25 % 39.22 % 37.25 %
approach ensures full coverage of stakeholders to define the scope and
potential risk areas without blind spots. boundaries of their potential impact.Share of women in management positions in revenue-generating
functions (e.g. sales) as % of all such managers Total number of new employees
Risk Mitigation Risk Monitoring
We develop a specific risk mitigation Responsible departments regularly 37.08 % 36 % 1567 Person 1905 Person
strategy based on the assigned risk monitor and review how our employee
level to ensure accuracy and efficiency management processes are operating
in our response to the risk. to ensure the effectiveness of the Internal hire rate Employee productivity
controls in place.
54.33%45.35%352679376911
CNY/Person CNY/Person
86 87China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
The number of employees by gender The number of employees by employee category The number of new employees by age group
Over 60 50-60 40-49 30-39 22-29 Below 22
8668 Person 9252 Person 8 Person 102 Person 8 Person 102 Person 1055
59.84% 57.7% 0.06% 0.70% 0.05% 0.64% Person
Senior 55.38%
managerial roles 719
Male Middle Person 558
managerial roles 498 45.89% Person
General Person
Female 29.29%employees 31.78%
152158131141
5817 Person 6775 Person 14375 Person 15917 Person 40 Person
Person
0 10.08% 0 20 Person Person 40.16% 42.3% 99.24% 99.31% 9.70%
Person Person Person Person 6.88% 7.40%
20252024202520240.00%2.55%0.00%1.05%
20252024
The number of employees by age group
Over 60 50-60 40-49 30-39 22-29 Below 22
6670 Person 6871 Person
6616 Person 41.62% 42.87%
45.68% 5277 Person The number of new employees by ethnicity The number of new employees by nationality
36.43%13681570
106
93 Person
194 Person
Person 141 Person 93 1474 141 1764
Person 87.31%6.76% Person
82.42%
10.18% Person Person Person Person
1801 Person 5.93% 7.40% 5.93% 94.07% 7.40% 92.60%
12.43% 1799 Person
11.23% Han ethnic group
407 Person 378 Person 425 Person 254 Person Chinese ethnic 6 Person 8 Person Chinese
2.81% 2.61% 2.65% 1.58% minorities0.04% 0.05% nationality
Chinese Hong
2025 2024 Kong SAR Foreign
Macau SAR nationality
Taiwan region
2025 and overseas 2024 2025 2024
The number of employees by region
North China East China South China Central China Northwest Southwest Northeast Chinese Overseas
China China 9767 China Hong
8221
Person Kong SAR
Person
60.94% Macau SAR
56.75% and Taiwan
region Employee turnover rate
21842225
1949 2223 Person Person Total employee turnover rate 17.25 % of which employee voluntary turnover rate was
Person Person
10.48%
812
15.34%55108
42119550113.63%13.88%727539
13.45% Person Person Person
40238
Person Person Person
307 Person
5.61% Person Person
Person
2.91% Person 4.54% Employee turnover Employee turnover Employee turnover Employee turnover rate 0.75% 1.35% 3.46% 0.25% 1.48% 3.36%0.38% 1.92% rate by gender rate by category rate by age group by geographical region
2025 2024 Male 19.87 % 17.53 % Senior Chinese managerial 0 % 25 % Over 60 45.5 % 52.94 % Mainland 17.15 % 18.14 %
roles
Chinese
The number of new employees by gender The number of new employees by employee category Female 14.89 % 14.33 % Middle 0.98 % 50-605.88 % 17.94 % 12.53 % Hong Kong 17.98 % 30.54 %managerial
roles SAR Macau
2 Person 16 Person 0 Person 4 Person 40-49998 Person 1180 Person General 13.04 % 6.98 %
SAR and
0.13% 1.02% 0% Taiwan 63.71% 61.94% 0.21% employees 17.10 % 18.72 % region
Senior 30-39 14.93 % 11.73 %
managerial roles Overseas 18.54 % 16.14 %
Male Middle
managerial roles 21.51 % 19.23 %
General
Female
employees Below 22 11.27 % 48.58 %
569 Person 725 Person 1549 Person 1901 Person
36.29%38.06%98.85%99.79%
2025202420252024
20252024
88 89China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Care for Employees
Reading and sports activitiesBased on the principle of “understanding our people meeting their of life increases their happiness and satisfaction and generallyThe company organizes spring outing activities allow staff a bold challenge-embracing spirit. In 2025 we held staffneeds and addressing their difficulties” we continuously strive creates conditions that make employees “proud to work at CTG to relieve stress bond with colleagues and rejuvenate. We sports games for CTG DUTY-FREE’s subsidiaries branchesto care for our employees’ needs. Our company also improves DUTY-FREE”. participated in the group’s Third Staff Sports Games and won and associated entities in Beijing. This event which attracted
employees’ working conditions enhances and ensures their quality championships in five-a-side football basketball badminton over 400 participants effectively promoted fellowship and
track and field and fun sports team competition and won collaboration among these entities in Beijing while significantlysecond prize in table tennis. We also released a “Creative enhancing employees’ sense of belonging and their collectiveEmployee benefits Excellence Award” to recognise employees who demonstrated pride.In accordance with national and local regulations we have investigations to collect employees’ opinions. It sends warm and
designed and implemented a robust employee welfare policy. considerate blessings to employees on holidays and birthdays
While ensuring timely and full payment of social insurance based on their age tastes and living habits. The company
and housing provident funds for employees we also provide demonstrates care for various groups such as employees with
addit ional benefits including corporate pension plans difficulties and female employees. The company advocates an
supplementary medical insurance subsidised meals and inclusive culture and fully considers the needs of ethnic minority
extended healthcare coverage for employees’ minor children. employees. For example we have set up a halal canteen for Hui
This approach has enabled us to establish a social insurance- staff.based multi-tiered welfare system supplemented by additional
corporate welfare programmes. The total amount of employee In 2025 the company’s stores in Hainan region provided shuttle
benefits in 2025 is CNY232 million. bus for staff commute. At Sanya Downtown Store and Haikou The company’s staff sports event The group’s staff sports event Spring outing
Meilan Airport Duty-Free Shop under Hainan DF over 50%We have formulated the “Administrative Regulations on employees utilised shuttle buses for commuting significantlyAssistance for Sick Employees and the Collective Welfare of improving staff commute convenience.Trade Unions”. The company’s trade union conducts complete
Condolence and assistance Employee Interest Activities
In 2025 to demonstrate care for our people we conducted 48 congratulatory or condolence visits for employees who were getting We have established four employee interest groups and have set up sports clubs for yoga basketball badminton and football as
married giving birth experiencing bereavement and retiring offered four tributes to annual model workers and delivered heart- part of our effort to make these sports activities part of our permanent schedule. In 2025 we organised over 200 matches and related
warming greetings to staff members facing financial difficulties and front-line workers who were on duty during New Year’s Eve and activities across the four sports clubs.Spring Festival.Work environment
The company has regularly accessible
staff activity rooms that offer table
tennis treadmills and billiards. We
have put in place special mother-and-
baby care initiatives. Our upgraded and
renovated mother-and-baby rooms
received the “Maternity Care Room” Badminton club Basketball club Football club
accreditation from the Beijing Municipal
Federation of Trade Unions for providing
a safe and comfortable environment
for female employees during their
Our mother-and-baby room Our staff lounge pregnancy and breastfeeding periods. Festival activities
Facilities and Employee Services The subordinate trade unions carried out a series of activities to celebrate special days such as Spring Festival International Women’s
In 2025 we implemented upgrades to Day and May Fourth Youth.the headquarters’ staff cafeteria. Key
improvements included a renewal of dining
utensils and tableware the optimisation
of dining flow and service procedures an
enhanced quality of selected menu items
the addition of a light meal area and the
reconfiguration of functional zones such
as a water bar a suggestions board and
a food recommendation area. We also
established an Employee Cafeteria Dietary
Task Force to formalise communication
mechanisms regarding menu preferences.A systematic satisfaction survey was rolled
out across headquarters achieving a Spring Festival activity International Women’s Day activity May Fourth Youth Activity
dining satisfaction rate of 93.78% through Canteen at headquarters Food at canteen
continuous feedback loops and iterative
improvements.
90 91China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Special inspections were continuously carried out in densely
Operational Safety and Physical and Mental Health populated areas such as commercial complexes ongoing construction projects logistics centres and office buildings as well
as key areas:
Operational Safety Overseas hazard investigations: Leaders from Warehouse safety inspections: Comprehensive checks were CDFG (Cambodia) Limited led
organised in commercial complexes duty-free stores and
The company continues optimising its safety culture upholds the Hazard Management warehousing units focusing on issues such as multiple tenants
principle of “people first and life-centred” and fully implements the sharing the same warehouse space compliance of buildingpolicy of “safety first prevention prioritised and comprehensive fireproof materials and management of fire safety equipment;In 2025 the company continued to deepen its three-year initiative 13 safety hazard inspectionsmanagement” deeply integrating safety production into every for fundamental improvements in workplace safety as well as Fire safety special inspections: The company carried out strict
aspect of its operations and business processes. carrying out the “Thunderbolt” action and fire safety inspections. It inspections for non-compliant hot work operations flammable
developed specific plans refined various tasks and conducted a
Fulfilment of Responsibilities and combustible decorative insulation materials and blockages in total of 1765 safety inspections identifying 2504 hazards all of evacuation routes. Commercial complexes conducted daily patrols
which had been rectified at a 100% resolution rate. Invited external experts to conduct one on-site inspectionThe company strictly abides by laws and regulations such as before opening and after closing with key areas being inspected
the Work Safety Law the Law on the Prevention and Control of every 2 hours;
Occupational Diseases and continuously improves its institutionalsystem. It revised 7 regulations in 2025 including the “Detailed Special equipment inspections: The company conductedRules for Safety Environmental Protection and Occupational inspections on the operation and maintenance of elevators Conducted various safety inspection 1Health Assessment” and the “Regulations for Special Equipment escalators and lifting machinery strictly verifying their annualSafety Management.” It also conducted training sessions on the inspections and certification of operators;newly revised regulations such as “Work Safety Management Special investigations on ongoing construction projects:Measures” followed by online quizzes for the main responsible 1765 times Each store conducted a comprehensive inspection once a Focusing on high-risk and major projects such as lifting machinery persons deputy responsible persons and safety managers from scaffolding high-support formwork and deep excavations the month and a smaller-scale inspection once a weekvarious units with 432 participants all passing the assessment.Subsidiaries simultaneously improved their system construction company formulated a “Check Scoring Form” for the scoring and
to ensure full coverage throughout the entire production and ranking of each project’s subcontractor;
operations process. Overseas hazard investigations: Leaders from CDFG (Cambodia)
Limited led 13 safety hazard inspections and invited external
The company continuously enhances its responsibility system Identified various safety hazards experts to conduct one on-site inspection. Each store conducted
adjusting and optimising the composition and responsibilities
of the safety committee at various levels based on personnel a comprehensive inspection once a month and a smaller-scale
changes and actual production and operational needs. It inspection once a week.supervises each level of the enterprise to establish and improve 2504 items
the operational mechanisms for safety committees clarify the In 2025 the company innovated its hazard management
departments responsible for safety management and ensure mechanism to build a comprehensive safety defence system
that safety management personnel are adequately staffed and involving all employees. The company has formulated and issued
competent. By the end of 2025 the company had a total of 258 the "Implementation Plan for the Reward Mechanism for Internalsafety management personnel. In 2025 the company revised the Reporting of Accident Hazards.” It also developed a “Hazardoverall production safety responsibility system clearly defining the Rectification rate Report QR Code” and posted it in prominent locations across all
production safety responsibilities of the company’s leadership units to fully mobilise employee participation in hazard inspections.various departments and positions. The company signed 86 Throughout the year employees reported 147 hazards via“Responsibility Letters for Achieving Safety and Environmental
100 % QR code all of which were rectified. Rewards were given to Protection Goals” with various departments and affi l iated employees who reported the hazards. In December 2025 the enterprises with all employees having signed such “Safety and company organised cross-checks at key units with internal safetyEnvironmental Protection Responsibility Letters” achieving 100% experts to further enhance the quality and effectiveness of hazard
coverage of safety production responsibilities and promoting the management. The company also invited third-party experts to
shift from “full participation” to “full accountability” in production conduct 5 safety inspections and assessments throughout the
safety. year. These experts specialised in areas such as construction site
safety fire safety and electrical safety. By combining inspections
System Construction with training the company continuously improves its ability to
The company promotes standardised construction and actively identify and rectify on-site hazards.organises affiliated enterprises to carry out safety production
standardisation initiatives. Sanya International Duty-Free Shopping During key periods such as year-end the “Two Sessions” May
Complex invited professional teams to help it improve the Day and National Day comprehensive and all-encompassing safety
production safety management system develop standardised inspections are organised across all areas focusing on critical
manuals revise 12 regulations and complete certification for the aspects such as construction work fire safety electrical safety
ISO 9001 Quality Management System ISO 14001 Environmental and gas safety. A list of identified hazards has been compiled and
Management System and ISO 45001 Occupational Health and measures are taken to ensure that these issues are addressed and
Safety Management System. Haikou International Duty-Free resolved in a closed-loop manner. In response to extreme weather
Shopping Complex has established and revised its production events such as typhoons and heavy rainfall an early warning
safety and fire safety management systems in accordance with the and response mechanism has been established. We have also
Basic Norms for Enterprise Production Safety Standardisation (GB/
T 33000-2016) achieving systematic management of safety and refined flood and typhoon emergency plans reinforced facilities
fire protection as well as standardised job operations. and equipment and stockpiled emergency supplies to effectively
ISO 45001 Occupational Health and Safety mitigate the impact of typhoons such as “Wutip” “Tapah” “Mitag”
Management System Certif ication for Sanya and “Ragasa” as well as heavy rain and heat waves throughout the
year. This ensured the safety of duty-free complexes stores and
International Duty-Free Shopping Complex logistics centres during the flood season.
92 93China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Education and Training Contingency Management
In 2025 the company conducted a total of 383 emergency drills outbreak in a sales shop with an on-site emergency response
The company has always priorit ised including fire safety flood prevention high-altitude falls accident personnel evacuation and medical assistance exercises.workplace safety. In 2025 the company Training Participants reporting and local coordination response involving 16100
organised var ious types of t ra in ing participants. The Sanya Logistics Base Haikou Comprehensive Bonded
sessions including training lectures given Warehouse Beijing Winter Olympics Warehouse and various
by external safety experts essential During Occupational Safety Month and Fire Safety Promotion logistics centres each conducted fire safety emergency drills to
knowledge and skills for workplace safety 1385 75400 Month the company jointly organised fire emergency evacuation enhance the fire awareness and emergency response capabilities drills with the local fire department and CTG Property Management of warehouse managers.onboard training sessions for new recruits (Beijing) Company Limited ( 中 旅 物 业 ) with Mr. Chang Zhujun
fire safety anti-terrorism construction site sessions General Manager serving as overall commander of the drills.safety occupational health and studies Ongoing construction projects organised a total of 47 emergency
on typical accident cases totalling 1385 drills including fire safety high-altitude falls and typhoon and
sessions with 75400 participants. flood prevention. General contractors and participating units were actively involved effectively enhancing the collaborative emergency
response capabilities of on-site staff.Comprehensive workplace safety training Haikou International Duty-Free Shopping Complex jointly
conducted a large-scale comprehensive emergency drill with the
Haikou Municipal Fire Rescue Corps Xiuying District Fire Brigade
* The company invited external experts in fire safety to * The company organised 4 comprehensive safety training and Xinhai Coast Police Station. The deputy director of the Haikou
provide training for divisional safety managers and safety sessions for all staff featuring internal lectures and presentations Municipal Fire Rescue Corps observed and guided the exercise on-
officers at all levels. This aimed to strengthen employees’ by external professionals such as staff from the Hong Kong Fire site.awareness of fire safety enhance their ability to identify Services Department. Sanya International Duty-Free Shopping Complex jointly organised
hazards and improve their emergency response Haikou International Duty-Free Shopping Complex jointly
* CDFG Trading conducted training sessions on essential a large-scale comprehensive emergency response drill with the capabilities. Sanya Municipal Fire Brigade. The drill simulated a sudden fire conducts a large-scale comprehensive emergency drill with the knowledge and skills for workplace safety systematically
* The company included workplace safety training as a explaining core regulations such as the Law of the People’s Haikou Municipal Fire Rescue Corps
mandatory course for new recruits and integrated it into the Republic of China on Work Safety the Special Equipment Innovation Management
onboard training programme ensuring a 100% coverage Safety Law of the People's Republic of China the Emergency
rate. Response Law of the People's Republic of China and the Fire The company piloted the construction of an AI monitoring system into three levels of grids and assigning responsibilities to individuals at Sanya International Duty-Free Shopping Complex covering reducing the response time for emergencies to less than 3 minutes.Control Law of the People's Republic of China as well as* CDF Investment Development held 4 “Workplace Safety key areas such as mall entrances and exits parking lots major CDF Investment Development has implemented a safety inspection common safety terminology. After the training an online examGrand Lectures” events featuring online lectures by stores elevators and escalators corridors and passageways. system involving “project company’s safety committee office - was administered to effectively reinforce employees’ theoretical The system automatically detects abnormal situations such as engineering department and supervisory units - on-site engineers”
both internal and external experts to enhance the safety safety knowledge. illegal parking crowd gatherings smoke detection smoking and with checklists for each level of safety management to address
management skills of engineering managers across the fighting achieving a shift from “reactive supervision” to “proactive issues such as responsibility gaps and accumulated hazards.company. prevention.”
In 2025 the company continued to increase its investment
Contractors Training Intelligent safety experience centres have been established at the in workplace safety spending a total of RMB 37.14 million
sites of ongoing construction projects. The Haikou International throughout the year providing a solid foundation for production
Duty-Free Shopping Complex project uses an intelligent safety safety. The company and all its subsidiaries did not experience
helmet management system which enables real-time tracking of any production safety accidents near-misses or other serious
* For ongoing construction projects we actively carry out units. We have also drawn lessons from various accident cases personnel movements and voice warnings for hazardous areas safety or environmental incidents that caused a significant social
warning education activities promptly disseminating and actively conduct training including operations training fire eliminating blind spots in surveillance. Sanya International Duty- impact with no casualties or major property losses. As a result the
the central enterprise’s emergency video conference emergency response training scaffolding safety training and Free Shopping Complex actively employs smart fire safety systems production safety situation remained stable and positive.on workplace safety and the higher-level instructions to confined space operations training. and urban fire monitoring information platforms. The Sanya Taikoo
general contractors subcontractors and supervising project promotes the use of smart hazard management systems The company adheres to the principle of “people-oriented” with and intelligent safety helmet management systems achieving the the protection of employees’ physical and mental health at its core.standardised and normalised management of project hazards. We continues deepening the construction of our occupational
Fire Safety Training health management system steadily advancing various initiatives
The company has also innovated its management model to to ensure their effectiveness. Throughout the year the company
improve efficiency. Haikou International Duty-Free Shopping had no occupational disease incidents effectively safeguarding the
Complex implements a safety grid management system dividing it occupational health rights of all employees.* Haikou International Duty-Free Shopping Complex allowing them to experience the harsh realities of a fire scene
and Sanya International Duty-Free Shopping Complex firsthand. This provided employees with a direct and vivid
organised comprehensive fire-fighting practical training understanding of the dangers and consequences of fires. Metrics Tier 2 metrics Unit 2025 2024 2023
sessions for all employees so as to ensure that every
employee understand how to be able to and feel confident * Boao Duty-Free Store invited a fire prevention officer from the Employee Number of people 0 0 0
to put out fires. Qionghai City Fire Brigade’s Boao Detachment and a traffic
Work-related fatalities
Contractors Number of people 0 0 /
police officer from the Boao Branch of the Qionghai Municipal
The fatality rate of the
* CDF Investment Development organised on-site visits to Public Security Bureau to conduct fire safety and traffic safety Company’s employees due to / % 0 0 0
1
the fire safety education experience centre for employees training sessions. work-related injuries
Total number of work-related
injury cases / Cases 0 0 0
The company took initiatives such as Operational Safety Month safety knowledge competitions and fire-fighting skill practical Employee Days 0 0 0
Fire Prevention Publicity Month and Publicity Week for the Law training sessions to enhance employees’ safety awareness and Number of working days lost due to work-related injury
on the Prevention and Control of Occupational Diseases as operational skills. Additionally the company has established a bi- Contractors Days 0 0 /
opportunities to promote occupational safety laws and regulations monthly safety bulletin mechanism to regularly communicate safety Lost-time injury frequency Employee % 0 0 0
rate (per one million hours
through diverse forms including on-site learning at bulletin boards requirements and professional knowledge. Sanya International worked)2(LTIFR) Contractors % 0 0 /
banners online learning quizzes and experience centres. CDFG Duty-Free Shopping Complex has also set up a safety culture
Digital Technology launched mobile news push notifications and corridor to centrally promote 16 items across four categories:
safety knowledge competitions. Sanya International Duty-Free occupational safety fire safety fire facility exhibitions and security. 1 Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers*100%
Shopping Complex and Riyue Plaza Duty-Free Shop organised
2 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*1000000
94 95China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Physical and Mental Health Popularising Health Knowledge
Strengthening Management Systems Focusing on the 23rd promotion week for the Law of the People's health-themed lectures and training sessions were held across the
Republic of China on the Prevention and Control of Occupational company and its affiliated units reaching an audience of 12483The company continues to improve its occupational health strict adherence to occupational health management requirements Diseases from 25 April to 1 May 2025 with the theme “Caring people. These efforts further solidify the foundation of occupationalmanagement system conduct ing t ra in ing sess ions on across all levels of units. At the same time the company has for the Mental Health of Workers” the company organised multi- health work and significantly improve overall occupational health
“Occupational Health Management Regulations” to guide all integrated occupational health management with production level and diverse educational activities. A total of 154 occupational standards.affiliated enterprises in clearly defining the responsibilities of internal safety forming a coordinated work pattern characterised by “unifieddepartments and personnel for occupational health management. deployment collaborative advancement and joint management” Hainan DF invited professional lecturers from the Red Cross Society of China Hainan Branch to deliver a
This ensures responsibilities are effectively communicated and significantly enhancing the standardisation and precision of practical first aid and self-rescue seminar further enhancing employees’ emergency response and self-rescue
implemented at all levels. Throughout the year the company occupational health management. skills in handling emergency situations. Additionally Hainan DF invited experts from the Guangdong Provincial
Hospital of Traditional Chinese Medicine Hainan Branch to conduct a lecture on the prevention and control
ensured adequate personnel and resource allocation to promote of occupational diseases. Through on-site teaching and diagnosis the experts helped employees better
understand the importance of preventing and controlling occupational diseases.Enhancing Protective Measures
Focusing on key areas such as ongoing construction projects duty- Haikou International Duty-Free Shopping Complex held a total of 17 sessions of occupational disease prevention continuously optimise the working environment thereby effectively
knowledge seminars. It also played promotional videos in offices and staff canteens set up exhibition boards
free complexes and logistics centres the company conducted reducing the risk of occupational diseases and reinforcing with occupational disease prevention information established consultation desks for occupational health
multiple rounds of targeted inspections and rectifications for critical employee health safeguards. For ongoing construction projects promotion and distributed promotional booklets to educate employees about occupational disease prevention.occupational hazards such as noise dust high temperatures and regular inspections are conducted on the procurement distribution
toxic gases. In Sanya International Duty-Free Shopping Complex and use of personal protective equipment such as dust masks gas
and Haikou International Duty-Free Shopping Complex regular masks and protective gear. Additionally inspections are carried Sanya International Duty-Free Shopping Complex hired occupational health experts to conduct online training
checks are carried out on critical areas such as air conditioning out on the installation and maintenance of various occupational for all safety managers. The training systematically interprets the legal framework management requirements
and ventilation systems electrical and mechanical equipment health protection facilities and preventive measures in key work and preventive measures outlined in the Law of the People’s Republic of China on the Prevention and Control of
operation rooms and diesel generator rooms. The company also areas such as welding painting insulation and non-destructive Occupational Diseases. Additionally Sanya International Duty-Free Shopping Complex promoted occupationalorganised occupational health protection training for employees testing to continuously optimise the working environment. disease awareness and hosted online knowledge quizzes through its WeChat public account “Tax-ExemptionPioneer.”
improved protective facilities and strengthened daily monitoring to
The Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 hotel project collaborated with the
Enhancing Employee Welfare general contractor to provide occupational disease prevention training to on-site personnel (including staff of
contractors). Consultation desks were set up at the construction site and promotional materials were distributed
The company strictly complies with national and local requirements to disseminate knowledge about occupational disease prevention.The company organised various emergency drills related to
by promptly and fully paying work-related injury insurance for heatstroke sudden illnesses and other occupational health
all employees. In 2025 the total amount spent on work-related emergencies. In collaboration with the local Red Cross and fire
injury insurance for employees was RMB 530200 achieving department it conducted first-aid training sessions covering
100% coverage. The company continues to provide annual health topics such as cardiopulmonary resuscitation (CPR) automated
All stores have educated employees on occupational disease prevention laws and basic knowledge put up
check-ups for all employees and offers comprehensive medical external defibrillator (AED) use and fire-fighting practical exercises. posters and distributed learning materials to create a strong atmosphere of occupational disease prevention.insurance for employees and their minors including accident After assessment the trainees were issued relevant certificates
insurance critical illness insurance and medical insurance. For effectively improving their self-rescue and mutual rescue ability.employees dispatched abroad or travelling abroad on official
business the company provides cross-border medical coverage Caring for Mental Health
comprehensively alleviating the medical burden on employees.To enhance care for the mental health of our employees and
The company guarantees the precision of special protection and alleviate their work and life pressures the company has launched
provides sufficient subsidies for high-temperature operations during an EAP (Employee Assistance Programme) psychological support
the hot summer season. It encourages units to reduce outdoor plan. This includes a 24-hour hotline the publication of mental
work during peak heat hours and provides sufficient heat-relief health journals and collaboration with professional counselling
supplies and medication. The company also provided employees institutions to provide free psychological consultation services.with safety helmets safety belts dust masks and other personal These measures collectively build a robust mental health support
protective equipment that meet standards and regularly conducts network enhancing employee well-being.training and supervision on proper usage.Sanya International Duty-Free Shopping Complex Hainan DF invites professional lecturers from the provincial Red
distributes occupational health promotional materials Cross Society to deliver lectures on first aid and self-rescue
to both customers and employees knowledge
96 97China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Enhancing Our Comprehensive Training System to Key Training Programmes in 2025
Support Employee evelopment In 2025 we conducted over 1000 key training programmes engaging 160000 participants and delivering 788500 total training hours
resulting in an average of 55 training hours per employee.Employee Training In 2025 we delivered the following key training programmes at the corporate level:
For junior managers
Tiered Empowerment Training System April
For junior managers we conducted special ised training In April we conducted a specialised training programme designed to further enhance our
The company regards strategic development as the core goal programmes on team building store management and other organisational and personnel-related work as well as the competencies and capabilities of
of training and is committed to establishing a robust talent topics with a total of over 1500 participants. We also organised relevant cadres. Over 240 participants from the Organisation and Personnel line attended
development and training mechanism. Through a combination of participation in the “High-Potential Talent Programme” and other the training. The training programme focused on five themes: Ethics and Integrity
online and offline trainings and under the management principle specialised training programmes on SOE reform and brand Education Key Messages from Higher-Level Meetings Advanced Concepts Practical
of “grading and classification and training for all employees” we building offered by China Business Executives Academy Dalian Experience Sharing and Collaborative Problem-Solving on Key Challenges. With this
independently provide various trainings to stimulate learning and (CBEAD) the State-owned Assets Supervision and Administration five-pillar approach we provided insights into how we can think differently and work more Commission (SASAC) and their higher-level units. These initiatives
cultivate talented professionals who will support the company’s efficiently when conducting organisational and personnel-related work.attracted approximately 851 participants in total further enhancing
sustainable growth. the comprehensive qualities and management capabilities of our
junior managers.for senior management May to June
For frontline business personnel From May to June we carried out a capacity-building programme for cadres from the
Party Committee across our affiliates in Hainan. The training engaged over 70 participants
We held training sessions for senior management including focusing on addressing key challenges and bottlenecks in business operations inthe “Joint Study on the First Volume of Xi Jinping’s Economic For frontline business personnel we conducted specialised training Hainan. Through an integrated approach combining theory with practice instruction withWritings” “Expert-Led Seminars” and “Leadership Development programmes on sales excellence and visual merchandising. interactive sessions and learning with application the programme targeted three coreProgrammes”. These initiatives are designed to strengthen their These training programmes engaged over 80 participants from competencies: political acumen operational proficiency and managerial excellence. This
Party consciousness and political awareness. Additionally we our subsidiaries below a designated size effectively strengthening initiative has effectively enhanced the competencies and capabilities of our managerial
organised them to attend specialised training sessions conducted their overall competencies and practical skills. Category-specific personnel in our operations in Hainan.by the Organisation Department of the CPC Central Committee the knowledge training in cosmetics and fragrances as well as
Party School of the CPC Central Committee and higher-level units watches was conducted engaging more than 60 frontline sales August
covering topics such as Party discipline compliance management staff. This initiative has further enhanced their brand awareness and
innovation capabilities and financial competency enhancement. marketing capabilities. We also conducted mandatory professional In August in accordance with the requirements of the Group we conducted routine
With approximately 590 attendances recorded these programmes skills training courses on our “CTG DUTY-FREE Academy” online onboarding training for new employees. We invited guests from senior leadership to
have effectively elevated senior managers’ political awareness platform covering topics including customer service enhancement deliver key speeches to open the training. Over 50 participants attended this centralised
expanded their knowledge base and broadened their strategic sales techniques and AI-enabled store traffic generation. These training session. We adopted a “post-training evaluation” model ensuring all new
thinking capabilities. frontline-focused training programmes engaged approximately employees receive online learning modules and examination schedules within three days
8500 participants significantly strengthening their business skills. of joining achieving 100% coverage. Our onboarding training has significantly enhanced
our new employees’ sense of identity with the industry and the company and their sense
of belonging while instilling our shared mission. It has also helped new staff adapt to our
culture and understand their career development pathways to grow with the company.For middle management For fresh graduates
For middle management we conducted a comprehensive training For fresh graduates we have put in place an ongoing Management October
session targeting middle and grassroots managers and newly Trainee (MT) development programme. Aligned with our strategic
appointed managers and centralised training for management goals the programme adopts a structured approach combining In October we carried out the 2025 Annual Management Training Programme. We
teams from our subsidiaries below a designated size. These job rotation and research projects to accelerate the development adopted a structured approach combining on-site visits to benchmark enterprises
initiatives incorporate on-site visits to benchmark enterprises of young talent. This ensures a qualified talent pipeline for key roles
centralised training sessions and specific workshops. The training programme engaged
and helps enhance our core competitiveness. over 40 participants and focused on strengthening ethics and integrity education gaining
research projects and presentations enabling participants to gain experience from benchmark enterprises enhancing strategic capabilities with advanced
insights into industry-leading business practices and strategies. concepts and accelerating outcomes through strategic initiative workshops. With this
Additionally we required newly appointed managers to attend the four-pillar approach we have provided insights into how we can think differently and work
online training programmes conducted by their higher-level entities more efficiently when conducting management work.achieving a cumulative participation of over 110 trainees.The company consistently operates the “China Duty-Free Academy” online training platform for December
all staff effectively integrating internal and external instructional resources to deliver professional
and diversified curricula and continuously enrich course content. The “China Duty-Free Academy” In we conducted an in-person capacity-building programme for management personnel
online platform had achieved full staff coverage by the end of 2025. In 2025 courses for 20 across our affiliates. The training was structured around five key pillars: on-site visits
topics were introduced and 13 live training sessions were held resulting in a total of more than to benchmark enterprises ethics and integrity education high-performance team-
430000 attendances and 8.2 average training hours completed per employee. We achieved a driven customer service operational capability enhancement and innovation-driven
empowerment. Participants gained insights into industry-leading business practices
login rate of 90% on this learning platform. Concurrently to enhance learning engagement and and strategies. The programme also helped strengthen their internal control awareness
promptly disseminate educational resources the “China Duty-Free Academy” official WeChat equip them with advanced management principles and innovative business models and
account constantly releases course updates and knowledge-sharing content to employees. ultimately drive the efficient and sustainable operations of the affiliates.
98 99China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Training Programmes on AI In 2025 we conducted trainings as follows:In 2025 we actively promoted technological innovation and For frontline business staff we launched “AI-Enabled Store Traffic The total expenditure of employee training and developmentempowerment through job-specific training programmes aimed Generation and Private Domain Sales” as well as other training
at enhancing employee capabilities in cutting-edge fields such as courses focused on the practical application of AI tools in store
artificial intelligence (AI) and big data analytics. These initiatives are operations. Over 670 employees have completed these courses Metrics Tier 2 metrics Unit 2025 2024
designed to align with our transformation in the digital economy directly contributing to improved operational efficiency in our The total expenditure of employee
era thereby strengthening our core competitiveness. physical stores. training and development / CNY CNY 10.53 million CNY 9.54 million
Average cost of training and development
We sent senior and middle-level management personnel to For all employees we held a training series on AI-enabled smart per full-time employee / CNY/Person 726.87 595.55external training programmes including the “Training Programme office skills and practical tips. We adopted an instructor-ledon Artificial Intelligence for Central State-Owned Enterprises approach for this training series and live-streamed the training Male CNY 727.05 /Expenditure of employee training and(Leadership Programme for Technology Talent)” and the “Online sessions. This training series focused on addressing the application development by genderTraining Session on Enhancing Innovation Capabilities”. These of common AI tools to typical office scenarios including official Female CNY 726.73 /
technology innovation-themed training initiatives have further document writing PPT creation and data analysis. The series
33
strengthened their digital and intelligent mindset and innovation combined relevant theories with hands-on practices with the Senior managerial roles CNY 0 /
capabilities. aim of building basic office skills to more advanced data analytics Expenditure of employee training and
capabilities while engaging over 1200 participants in 2025. development by category Middle managerial roles CNY 10372.55 /
General employees CNY 658.83 /
50-60 CNY 726.35 /
40-49 CNY 726.95 /
Expenditure of employee training and
development by age group
30-39 CNY 727.51 /
22-29 CNY 726.6 /
Chinese Mainland CNY 751.2 /
Chinese Hong Kong SAR
Expenditure of employee training and
development by geographical region Macau SAR and CNY 482.71 /
Taiwan region
Photo from our first training session under the series Photo from our second training session under the series Overseas CNY 483.71 /
Percentage of employees trained / % 100 100
We have recorded and uploaded every classroom training session In 2025 the company cul t ivated internal resources by
to “CTG DUTY-FREE Academy” online platform which enables establishing a lecturer team which delivered a lecture series Male % 100 100
all employees to visit and access the content any time they want. called “Excellent Teachers and Excellent Courses”. The team Percentage of employees trained by gender
This training series is designed to help develop intelligent office delivered 12 live lectures which drew 9600 participants. This Female % 100 100
practices to improve work quality and efficiency. Furthermore “training-through-practice” approach strengthened internal trainers’other specialised training courses are also available on the “CTG comprehensive abilities. The company attaches importance to the Senior managerial roles % 100 100DUTY-FREE Academy” platform including the “Application Guide training of young talents and continues to carry out managementfor DeepSeek and the Practical Use Tips for DeepSeek”. These trainee training programmes. Average training hours completed per Middle managerial roles % 100 100
training courses have attracted over 2300 participants to date employee by category
effectively helping innovate how we work. General employees % 100 100
Professional Development Total training hours / hour 788500 633700
Average training hours completed / hour 55.07 40.03
Based on employees’ career development needs we continuously improve the talent management system and consolidate the foundation per employee
of talent management to offer smooth career development channels to assist employees in achieving their dreams and living up to their full
Male hour 53.42 26.79
potential. Average training hours completed
per employee by gender
Female hour 56.71 36.58
Delivered live lectures
In 2025 the company cultivated internal resources by establishing a lecturer
4team which delivered a lecture series called “Excellent Teachers and Excellent Senior managerial roles hour 138.22 142.45Courses”. The team delivered 12 live lectures which drew 9600 participants. Average training hours completed per
12 This “training-through-practice” approach strengthened internal trainers’ employee by category Middle managerial roles hour 114.23 75.05sessions comprehensive abilities. The company attaches importance to the training
of young talents and continues to carry out management trainee training General employees hour 53.74 34.90
programmes.Chinese Mainland hour 57.81 41.76
Chinese Hong Kong SAR
Average training hours completed per
employee by region Macau SAR Taiwan region hour 20.79 13.29Engaged over and overseas
Overseas hour 20.10 14.27
9600 participants
3 Our management’s training is coordinated at the group level and the group also covers their training cost.
4 As far as the training courses organised by the company are concerned there is no significant difference for employees at different
categories; however the senior management participated in more intense trainings subject to the requirement on the training hours in
the Regulations on the Education and Training of Cadres issued by the CPC Central Committee.
100 101China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report People
Professional Development our headquarters and subsidiaries. We have built multiple career
paths – including through annual rank promotions promotions Case study
based on professional reviews open recruitment of executives
Based on employees’ career development needs we continuously and an internal system for regular talent exchange – to align Our First “CTG Duty-Free Workmanship” Skills Competition
improve the talent management system and consol idate the development of each employee’s career with the overall
the foundation of talent management to offer smooth career development of the company’s talent.development channels to assist employees in achieving their We hosted our first “CTG Duty-Freedreams and living up to their full potential. Workmanship” skills competition on We adopted the Management by Objectives (MBO) Key 28 September 2025. The competition
Performance Indicators (KPI) and 360°Feedback for integrated
According to the actual circumstances of the company we have categor ies covered key ski l ls for employee performance management. Performance evaluations
established a ranking system covering all grades and types of key roles from sales and customer
positions based on a hierarchical management system and job are conducted at least once a year. The assessment includes services. 80 participants from our 17
qualification criteria. The company determines the function level both work performance and professional capability and the subsidiaries advanced to the finals
and rank of employees according to their abilities performance and performance assessment results are determined through the with 5 of them finally receiving the title
qualifications. We allow two-way movement between management ranking of the overall scores of employees responsible for the same of “Young Experts at Their Posts”. The
positions and professional positions and use a ranking system that tasks covering 100% of the employees. competition served as a reminder to our
reaches every level and grades horizontally and vertically across employees of the importance of training
and practising their professional skills
and motivated them to apply effective
solutions in their work to improve
productivity and efficiency.To strengthen the impact of “model workers” we continue to with the “National Women’s Civilised Posts” one individual
Case study identify and recognise outstanding individuals and teams that lead awarded with the “National Model Worker” and one individual
by example. In 2025 we have one individual awarded with the awarded with the “Hainan Provincial May 1st Labour Medal” one
In 2025 the company is committed to cultivating vocational “National March 8 Red-Banner Pacesetter” one team awarded awarded with team the “Hainan Provincial Workers’ Pioneer” and
talent. In terms of professional title reviews we proactively name two individuals “Model Worker at the group”.organise employees to participate in professional title evaluations
offered by both the Group and external professional institutions
across disciplines such as engineering accounting economics
auditing archival science and translation. The number of
employees successfully obtaining various professional titles
has steadily increased which plays a key role in continuously
strengthening our talent pool injecting robust impetus for the
realisation of our strategic objectives. In terms of vocational
skill level certification we conducted autonomous certification
for the “Merchandise Sales Associate” vocational category
at the subsidiary level through centralised coordination and
guidance. A total of 687 employees passed the certification (a
pass rate of 93%). Leveraging autonomous certification as a key
driver we have developed an effective integrated internal talent
development and certification system for skilled personnel
which further broadens their career advancement pathways. In
Our Coach Team at Sanya Downtown Duty-Free Store Our Customer Service Department at Haikou International Duty-Free Shopping Complex
doing so we are laying a solid foundation for the construction of received the “National Women’s Civilised Posts” award received the “Workers’ Pioneer” award from the Hainan Federation of Trade Unions
our talent pipeline. from the All-China Women’s FederationIn May 2025 we held our first “CTGOur skills certification examination site DUTY-FREE Story” sharing session. Three
outstanding female model workers were
invited to share their inspirational stories
at CTG DUTY-FREE. Through the sharing
Motivating Employees to Create Value session we further encouraged the spirit of model workers and promoted the value of
work and the pursuit of fine workmanship.Aligned with our corporate reform development and operational reforms into all aspects of our business operations. In doing so we Senior management also attended the
priorities we have established platforms to support employee are reinforcing our employees’ commitment in aligning with Party sharing session in person which added
growth and talent cultivation with the aim of maximising the guidance and positioning our industrial workforce as a driving force another level of motivation and inspiration
role of employees as the core workforce. In 2025 we deepened in the nation’s tourism development. We are also continuing to for our employees.reforms in the building of our industrial workforce by drafting the streamline career advancement channels for industrial workers.“Comprehensive Reform Plan for Building CTG DUTY FREE’sIndustrial Workforce”. We have integrated workforce-related
102 103China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
04
Planet
106 Environmental Compliance Management
112 Addressing Climate Change to Protect the
Environment
119 Green and Low-Carbon Operations for a
Better Life
CTG DUTY-FREE cares for the planet based on
its business features and in light of environmental
characteristics of its main business locations. We are
actively responding to UN SDGs 2 6 7 9 11 12
13 14 and 15 by engaging in multiple environmental
protection init iat ives such as water resource
management active responses to climate change
green and low-carbon operations and promote a
circular economy.China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
The company continues to carry out the standardisation stores. In October 2025 Sanya International Duty-Free Shopping
Environmental Compliance Management construction of energy conservation and environmental protection. Complex obtained ISO14001 environmental management system
During the reporting period CDFI passed its environmental certification driving waste reduction energy efficiency and eco-
management system (ISO14001) audit promoting the optimisation standards.of the business environment across Hong Kong and Macau
Environmental ComplianceIn accordance with the Environmental Protection Law the Law Assessment” and the “Implementation Rules for Accountabilityon Prevention and Control of Atmospheric Pollution the Law on in Safety Environmental Protection and Occupational Health 监督审核合格通知书Prevention and Control of Water Pollution the Law on Prevention Incidents”. It also revised its emergency response plan for No. 440324E3Q07368
中免國際有限公司:
and Control of Environmental Pollution Caused by Solid Wastes unexpected environmental incidents and organised a practical 我中心于 2024 年 12 月 03 日至 2024 年 12 月 06 日
对贵方进行了年度监督审核，证实贵方的环境管理体系the Energy Conservation Law of the People’s Republic of China drill. Over 120 employees participated in a full-process emergency 持续有效运行，经评定决定，准予继续使用证书号为
00123E35012R0M/4403 认证证书和相应编号的 IQNet 证
and other Chinese laws and regulations as well as the Measures response simulation of a chemical leakage thereby enhancing 书。证书所载的名称、地址、认证范围、发证日期和有效日期等均无变化。
for the Supervision and Administration of Energy Conservation the company’s capabilities in environmental risk prevention and 下次例行审核宜在 2025 年 11 月 17 日之前实施，最晚应在2025年12月31日之前完成，否则可能导致证书and Ecological Environmental Protection at Chinese Central State- control. 暂停。
感谢贵方对我中心工作的一贯支持与配合，我们将owned Enterprises the company has formulated the “Administrative 一如既往的为您提供增值的认证服务。特此通知。
Measures on Energy Conservation and Ecological Environmental During the reporting period the company complied with all
Protection. 2024年 12月 31日 applicable laws and regulations concerning energy conservation
and environmental protection with no significant regulatoryIn 2025 the company developed the “Implementation Rules violations or major incidents recorded nor any cases where it wasfor Safety Environmental Protection and Occupational Health punished or criticised by environmental protection authorities.Environmental management system (ISO14001) Environmental management system (ISO14001)
Emissions Management certificate of CDFI certificate of Sanya International Duty-Free
Shopping Complex
The company’s categories of emissions include greenhouse gas International Duty-Free Shopping Complex are equipped with
(GHG) emissions exhaust gases wastewater and solid waste. dedicated household waste rooms and kitchen waste refrigerators Preserving Biodiversity
In terms of emissions management the company attaches to support this initiative. Caterers within these complexes are
importance to controlling exhaust gases and GHG emissions and also required to classify kitchen garbage in strict accordance The Ministry of Ecology and Environment released China National The Company takes biodiversity conservation into consideration
takes up emissions reduction measures to improve air quality. For with relevant regulations with cleaning staff arranged to guide
wastewater and soil management the company is committed to Biodiversity Conservation Strategy and Action Plan (2023-2030) in the development and construction of the project and takes the customers on household waste classification. We have also signed
protecting water and soil resources in accordance with relevant waste recycling and disposal agreements with qualified professional which defines China’s biodiversity conservation strategy in the following main measures to minimise the impact of its operations
standards by taking appropriate treatment measures to meet the third parties to ensure the recycling and safe disposal of solid new era. The company concerns about and protects biodiversity on biodiversity
requirements for discharged wastewater. waste. In 2025 the Haikou International Duty-Free Shopping with action. We actively leverage our advantages to engage more
Complex conducted waste classification training to ensure its front- people to the cause of biodiversity protection.For solid waste management the company is strongly against line staff (especially newly hired employees) and service providers
dumping stacking and discharge of waste without permission and operating within the complex understand the classification and
performs its duties in terms of source reduction and classification of disposal requirements of different types of waste and reduction of
solid waste as required by law. It has established compliant waste the use of disposable items.storage processes and works with qualified third parties for waste Backfills topsoil dug out during the Prefers local plants for landscaping to
disposal under the laws and regulations to prevent environmental In terms of waste reduction cdf Cambodia a subsidiary of CDFI development and construction process
contamination. As for pollutant emissions it has established reduce the impact on the environment began replacing paper price tags with e-tags in July 2024 to reduce as environmental compensation.standardised pre-treatment facilities such as sedimentation tanks consumption of paper-based products. The Hong Kong Downtown and ecology.septic tanks and oil separators which are subject to regular Store introduced P-Life eco-material shopping bags (self-degrading)
inspection and maintenance to ensure the compliant emissions. to comply with new regulations on disposable plastic released by
For recyclable waste such as cartons subsidiaries implemented the Hong Kong government that were effective from 22 April. Our
the “Waste Cardboard Management Regulations” to standardise one-person stores in Macao promoted paperless operations and For example Sanya is located within a tropical marine and forest of Casuarina equisetifolia the project has introduced a
disposal. CDFI stores and warehouses established recycling eco-paper bags (no plastic). Meanwhile the Shenzhen Supply monsoon climate zone with high temperatures and a relatively variety of coastal-adapted species such as Hainan coconut
systems for cardboard and packaging materials to boost paper Chain Company eliminated VIP-specific packaging to curb the high humidity all the year round. This makes it home to diversified Terminalia macroptera red pandanus and beach cabbage.reuse. excess use of packaging materials. biological species and helps with the shaping of its healthy
benign and sustainable ecosystem. During the development During site selection and layout planning for the Haikou
We actively promote waste classification. For example both the The quantity of waste generated by the company in 2025 was as and construction of the Sanya International Duty-Free Shopping International Duty-Free Shopping Complex Project the company
Sanya International Duty-Free Shopping Complex and the Haikou follows: Complex Project we paid attention to the protection of the identified and assessed ecologically sensitive areas in order to
surrounding ecological environment and biodiversity and adopted avoid locating business activities near zones with rich biodiversity
various green construction technical measures to minimise fragile ecosystems or significant ecological functions. The project
the impact of the Project on the ecological environment and actively promotes the efficient utilisation of site space for greening
biodiversity such as enclosure noise control dust control etc. initiatives. At the Haikou International Duty-Free Shopping Complex
Selenium Ink The Sanya International Duty-Free Shopping Complex Phase 1 Plot (Plots 1 and 4) the green space ratio has been increased to Toner drum ribbon 2 Hotel Project located within a coastal woodland renovation area 30% and 35% respectively. Concurrently on-site rainwater outside the ecological conservation red lines prioritises enhancing retention facilities with capacities of 200m3 and 390m3 have been
35 18 4 the windbreak function of trees while strengthening the protection constructed to optimise the microclimate enrich local habitats for kg kg kg of tree species diversity and overall biodiversity within the biodiversity and achieve a synergistic improvement in ecological woodland. Building on the existing single-species coastal protective benefits and site functionality.
106 107China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Energy and Resource Usage Case study
The company organised activities for Energy Conservation Awareness Week and National
Governance Low-Carbon Day
From 23 June to 29 June 2025 the company organised an Complex and the Sanya International Duty-Free ShoppingThe company has issued the “Administrative Measures on Energy The company has reinforced its accountability mechanisms by Energy Conservation Awareness Week themed “Enhancing Complex used digital screens to show promotional videosConservation and Ecological Environmental Protection” and has signing 86 “Work Safety Energy Conservation and Environmental Energy Efficiency and Leading with Innovation” and a National and put up themed posters to enhance awareness of energy
set up the “Energy Conservation and Environmental Protection Protection Target Responsibility Agreements” with various Low-Carbon Day themed “Pioneering the Path to Carbon conservation. Retail stores at the airports and border crossingsLeadership Group” led by heads of the company. These have departments and affiliated enterprises. Through its OA online Reduction and Greening the Future.” Subsidiaries were mobilised set up information boards where staff shared low-carbon travel
put forward management requirements regarding procurement platform headquarters has also achieved full coverage by signing
production & operations green buildings green logistics the safety and environmental protection responsibility agreements to watch thematic promotional videos and issue energy-saving tips with travellers. Additionally the company issued an energy-
promotion of green consumption and the implementation of a green with all employees. Additionally CDF Investment Development and carbon reduction initiatives fostering a vibrant atmosphere. saving and carbon reduction initiative via its Wechat official
office and a low carbon lifestyle. The company has also improved has signed responsibility agreements with the general contractor During the events they displayed 200 posters hung 100 account and held themed activities aligned with Tree Planting Day
the rewards and punishment mechanism for energy conservation subcontractors and other relevant parties clearly assigning banners and distributed 300 brochures across construction and World Environment Day.and environmental protection and organised the publicity responsibilities to specific roles to mobilise personnel engagement sites. Furthermore the Haikou International Duty-Free Shopping
implementation training and assessment of various systems in energy conservation and environmental protection efforts.and action plans so as to solidly promote the systematisation
institutionalisation and standardisation of energy conservation and
environmental protection work.Strategy We focus on improving the management of energy and water
conservation according to the optimal operating strategy including:
Risks/
opportunities Impact Response
Saving Electricity Saving Water
Unlock the Reduce operational
energy-saving costs enhance Develop and promote sustainable building materials and technologies – such as natural daylightingpotential of energy efficiency and systems and smart temperature controls – on an ongoing basis. Refer to the “Green and Low- * The temperature of air conditioners in offices and dormitories shall * We have installed induction water faucets in restrooms for watergreen buildings cut greenhouse gas Carbon Operations for a Better Life” section for details. be no lower than 26°C in summer shall be turned off 20 minutes saving purposes.emissions before leaving and shall be powered off if left unattended for a
period of time. * Develop good habits and turn off the faucet after water use to prevent
water from running to waste.* Printers computers fans water heaters lighting and other power
Actively utilise supplies shall be turned off before leaving the place of work (and be
Reduce pollutant * Report spills drips and leaks to the Engineering and Property
renewable energy shifted to standby mode during non-office hours).and greenhouse gas Accelerate the construction of new energy infrastructure such as rooftop solar PV and PV carport Management Department in a timely manner for repair.to diversify and
emissions to improve air installations. See the “Green and Low-Carbon Operations for a Better Life” section for details.clean the energy
quality * Post energy-saving reminders near light switches and printers
supply encouraging employees to unplug devices after work to reduce
standby power consumption. Saving Gasoline
Strengthen ideological guidance by organising affiliated enterprises to conduct in-depth study of * We have established sound electricity conservation management * We strictly implement the Measures on Administration of Fuel Cards
President Xi Jinping’s important speeches and directives on carbon peaking and carbon neutrality. systems and equipment operation procedures to reduce unnecessary and Vehicles and resolutely prohibit the misuse of company vehicles
This helps firmly establish and implement the new development philosophy and ingrain the green office electricity equipment and non-office electricity consumption. and excessive refuelling.and low-carbon transformation.* We have regular maintenance and energy audits for HVAC systems * We develop fuel-efficient driving trainings for fleet operators strictly
Release the “Green and Low-Carbon Proposals” to encourage employees to lead the way in pumps fans elevators and lighting etc. to reduce energy
Foster energy- carry out daily maintenance and smartly select driving routes.carrying out low-carbon and energy-saving practices and in conveying green messages. consumption.saving awareness Maintain a positive
among all staff to corporate image to earnestablish a “Green greater customer favour Put up signs around offices to remind employees to turn off the lights and save water and organising Saving Office Suppliescdf” image publicity campaigns and training sessions on energy conservation and environmental protection.The Sanya International Duty-Free Shopping Complex launched a “Golden Ideas for Energy * Standardise paper usage requirements in office promote double-sidedConservation” campaign organised energy management training invited experts to explain energy- printing and a paperless office.saving technologies and conducted a public welfare activity titled “State-Owned EnterpriseOpenness for Ecological Protection.” These initiatives helped drive the concept of environmental * We adopt e-tag and e-billboard to reduce paper usage.protection promoting its widespread recognition.* We adopt an office supplies procurement system to bring about
online integrated procurement. This system helps centrally control
procurement quantities and amounts so as to improve procurement
efficiency cut expenses and reduce waste.
108 109China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
All duty-free complexes and stores manage energy and water consumption through optimal operational strategies:
Management of impacts risks and opportunities
Before the store opens no lights more than those required for The Haikou International Duty-Free Shopping Complex has
01 work routines shall be switched on; electricity equipment to 04 completed lighting circuit upgrades for its 131 duty-free stores The company’s routinely monitors all facets of energy utilisation We regularly conduct comprehensive risk assessments of our
meet operating needs shall only be turned on 10 minutes before converting the systems to independent circuits. Pre-business collecting and analysing stage-specific usage data while identifying existing energy utilisation processes. Leveraging historical data
opening; all electricity equipment and lights shall be turned off hours now activate only essential lighting with non-essential
electrical equipment powered down to minimise energy use. and assessing associated risks. The team also maintains and experience we quantify identified risk factors their probability after the closure.Radar motion sensors have been installed in back-of-house communication with environmental protection authorities at all of occurrence and potential losses to determine risk severity
spaces and garages to automate lighting control. Flood lighting
The Sanya Downtown Store proactively launched the schedules are dynamically adjusted to align with operational levels to stay updated with the latest relevant information. and urgency. These results then inform our energy utilisation
02 “Green Mall Low-Carbon Lifestyle” initiative to reduce energy needs and seasonal variations while decorative lighting management strategies.
consumption. It adjusts lighting and air conditioning strategies usage is strictly regulated. Additionally air conditioning units
based on real-time brightness and temperature levels within the operate based on real-time temperature readings with regular
complex. Water usage for landscaping and cooling towers is measurements conducted for optimisation. During transitional 01 Identification Assessment and 02
carefully managed. Timed sprinkler systems are used for garden seasons the fresh air system activates to provide supplementary prioritisation
irrigation to avoid high-volume hose watering. For water features climate control. Water feature operating hours are actively
staff periodically clean sludge from the bottom manually and add monitored and adjusted to ensure efficiency.algaecide (a chemical treatment) to extend the intervals between Monitoring Management
water changes.
05 Hainan DF’s Riyue Plaza Duty-Free Shop has carried out the following energy-saving measures: the implementation of a 03 04
The Sanya International Duty-Free Shopping Complex centralised control system for multi-split air conditioning units; enhanced equipment maintenance to improve operational We continuously collect energy usage data from all stages of The company reviews all aspects of energy use standardises 03 implemented significant energy-saving upgrades across its
facilities. In Zone C an intelligent central air conditioning control efficiency; and optimised lighting system configurations with consumption and implement BIM systems/energy management operational processes mitigates associated risks and implements
system was installed. This system monitors environmental data strictly electricity consumption controls. Additionally all airport platforms where feasible thereby enhancing the efficiency of
such as temperature and foot traffic in real-time automatically stores ensure non-essential lighting is turned off promptly during
multiple measures to reduce consumption.energy usage statistical analysis. By the end of the reporting
adjusting operating parameters. This has resulted in an 8% flight intervals.reduction in average daily energy consumption. Meanwhile period Sanya International Duty-Free Shopping Complex Haikou
renovations to the chiller plant systems in Zones A and B 06 Yunjie Island adopts a “peak shaving and valley filling” electricity
International Duty-Free Shopping Complex had both established
achieved annual energy savings of 12%. Separately the consumption model that aligns with its night-time economic these systems. The company regularly reviews progress on energy
installation of 200 LED lights in public spaces reduced energy activities forming a distinctive energy-saving pattern.consumption in those areas by 20%. conservation initiatives identifies potential areas for improvement
and formulates plans for the upcoming year’s energy-saving work.Metrics and Targets
Energy and Resource Consumption
The company mainly consumes electricity natural gas diesel gasoline and water during its daily operations. Our energy consumption
resource usage5 and intensity in 2025 are shown in the table below:
Metrics Unit 2025 2024
Case study
Electricity MWh 81441.39 85810.28
Promotion of building a zero-carbon island by Boao Duty-Free Store
Natural Gas m3 651573 562061
The Boao Duty-Free Store actively supports Dongyu Island’s its premises. Through activities like accumulating carbon credits
initiative to build a zero-carbon island and promote green travel. redeemable for rewards the store encourages sustainable Diesel Litre 132858 143182
During the 2025 Boao Forum for Asia the store worked closely practices. Gasoline Litre 152528 210526
with Dongyu Island to construct a “zero-carbon area” outside
Comprehensive energy consumption tce 11206 11617
Comprehensive energy intensity tce/m2 0.0156 0.0162
Water consumption m3 565780 537987
Water consumption intensity m3/m2 0.79 0.75
5 The statistic scope of natural gas electricity diesel gasoline includes the building of company’s headquarters Haikou International
Duty-Free Shopping Complex Sanya International Duty-Free Shopping Complex Sanya logistics base Sunrise Shanghai and Sunrise
China which have already covered the majority of the company’s operating area and revenue. The company will gradually expand the
statistical scope in the following years.
110 111China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Current scenario 1.5°C – Net-zero world scenario* 3°C – Greenhouse world scenario**
Addressing Climate Change to Protect the Environment
* Physical risk output of risk exposure * RCP 1.9 * RCP 6.0
based on 2021 benchmark * IEA Net-Zero by 2050 * IEA Stated Policies Scenarios (STEPS)
* NGFS Net-Zero 2050 * NGFS NDC scenario
Climate change is having a broad and far-reaching impact on the efforts and future plans for addressing climate change according
* SSP1 – Sustainability Shared Socio-Economic Pathway –world CTG DUTY-FREE analyses the potential challenges that to the framework of “Governance Strategy Impact risk and Fossil-fuelled developmentclimate change may bring actively deploys mitigation and adaption opportunity management Metrics and targets”.measures and explores opportunities. This section describes our
Risk impact under the 3°C3
Physical risk Risk impact of current Risk impact under the
Climate risk type 2 – scenario (hereinafter category scenario 1.5°C – scenario
“high emissions scenario”)Governance
responsibilities within their terms of reference. In addition the Extreme heat Extreme high Extreme high Extreme highWe have established an ESG governance structure which coversthe all-round governance on ESG matters including addressing company has also established the “Action Plan for Carbon Peakingclimate change. and Carbon Neutrality” and set up a “Leadership Group on CarbonExtreme cold Low Low LowPeaking and Carbon Neutrality”.The Board of Directors of the company is the highest decision-
making authority to address climate change and the Strategy We have made it clear that the Board of Directors has to Chronic risks Precipitation (heavy rain) High High High
and Sustainability Committee of the Board of Directors is the incorporate climate considerations into its review and instructions
committee assuming the primary responsibility. We established on strategies important action plans risk management policies
the ESG Leadership Group and it is headed by the Chairman annual budgets and business plans its formulation of performance Extreme snowfall Extreme low Extreme low Extreme low
of the company; the deputy head is the General Manager; and goals for organisations its monitoring on implementation and its
its members include heads of departments. ESG governance supervision on significant capital expenditure acquisitions andstructure strategy and the terms of reference of the Strategy divestitures. The ESG Leadership Group and the “Leadership Extreme wind Extreme low Extreme low Extreme lowand Sustainability Committee and the ESG Leadership Group Group on Carbon Peaking and Carbon Neutrality” provide supportplease refer to “Robust Governance System for Long-term Stable for this.Operations”. The Strategy and Sustainability Committee holds Coastal flooding High Medium Medium
meeting once a year and the ESG Leadership Group holds We steadily carry out the current status reviews strategy
regular meetings. By integrating ESG matters including responses formulation risk management and identification and tracking of
to climate change with daily operations and management the metrics and targets for risks and opportunities arising from climate Fluvial flooding Medium Medium Medium
concerned departments and subsidiaries perform their specific change that the company may be exposed to or can embrace.Acute risks Typhoons Extreme high Extreme high Extreme high
Strategy
Wildfire High High High
In view of the characteristics of the tourism retail industry and the transition risks related to low-carbon economic transformation
company’s medium to long-term business planning we continue (hereinafter “transition risks”). For physical risks we use a risk
to focus on and monitor business operations and risk management forecasting tool based on climate change scenarios (provided River low flow Extreme low Extreme low Extreme low
to identify quantify and manage potential threats and uncertainties by MSCI) to assess the potential business and financial impacts
caused by global climate change. We then analyse the potential subject to the geographical location of the company’s assets
impact of these risks on the company’s own operations and the their exposure and their hazard patterns. On this basis we have Subject to the assessment of the geographical location of the impact strategies mitigation and adaptation measures and
entire industry chain from upstream to downstream processes developed systematic response strategies in site selection company’s assets exposure and severity the company’s overall comprehensively analysed the related risks including direct loss
with the aim of safeguarding the steady development of the emergency management supply chain and inventory optimisation business was exposed to extremely low to moderate risk under operation interruption customer loss and the impact of supply
business. and online business development. We then integrated these all climate scenarios including extreme cold extreme snowfall chain disruption on all links of the company’s business value chain.strategies into the company’s daily business management to extreme wind fluvial flooding and river low flow. We identified We actively promote the climate adaptability design of buildings
We referred to the TCFD framework to identify the physical risks enhance its organisational resilience. physical risks with high or higher risk levels such as extreme creation for a more resilient supply chain online and offline
related to climate change (hereinafter “physical risks”) and the heat precipitation coastal flooding typhoons and wildfires and business integration and other measures improve the company’s
further elaborated on the targeted description in terms of impact ability to address climate risks enhance the durability and stability
assessment impact cycle scope of impact potential financial of business operations and continue to provide customers with Scenario analysis quality goods and services.Based on the analysis of chronic and acute physical risks under We selected the current scenario the relatively orderly pathway
different climate scenarios we comprehensively assess the toward 1.5°C set by the Network for Greening the Financial System
potential impact of physical risks on corporate strategy business (NGFS) (i.e. reaching net zero around 2050) alongside the climate
operations and financial conditions under different scenarios. We scenario of 3°C Nationally Determined Contributions (NDCs) set by * 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).
then prioritise climate risks optimise resource allocation and the NGFS (i.e. global warming of 3°C scenario around 2050) for
improve risk management. scenario analysis. ** 3-°C NGFS Nationally Determined Contributions “NDC” scenario: taking into consideration all pledged but not yet implemented policy measures. The estimated physical risks
would be slightly lower than in the Current Scenario case but still well above the Paris Agreement targets.
112 113China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Physical risk Climate risk Potential
category category Impact Assessment Impact cycle
Scope of
impact financial Strategies mitigation and adaptation measureimpact
Extreme high temperatures may Follow green standards for the construction of new buildings from their design and
High temperatures will increase demand for water supply and cause a very h igh r isk to the planning continue the energy-saving optimisation of existing facilities effectively
cooling in summer resulting in increased energy consumption company’s operations in Hainan reduce costs while saving energy and promote the use of clean energies.and equipment maintenance costs. Extreme high temperatures province the GBA and Southeast Increase in
may lead to excessive power loads increase safety hazards such Regularly check maintain and update in-store electrical circuit and facilities and Asia. Under the high emissions operating
as short circuits and fires and have an adverse impact on normal formulate emergency plans to deal with power supply interruptions such as by scenario the number of operations expenses
operations brought by power supply tension or power failures. with an extremely high risk will Medium and long-
Operation installing standby power supply system to prevent sudden power failure.Increased in
Extreme fur ther increase for example term Upstream investment Rigorously monitor cold-chain logistics to guarantee the quality of temperature-
heat Extreme high temperatures may also affect logistics and operations in Fujian province will sensitive products in hot weather strengthen inventory management and prepare transportat ion such as the storage and distr ibut ion of also be exposed to extremely high Decrease in goods in advance to deal with possible logistics delays.refrigerated goods or lead to traffic interruption in some areas risks. operating income
affecting commodity supplies and passenger flow in tourist Continue to expand the online business integrate online and offline businesses and
destinations. This wil l be the most common maintain a good momentum of development to minimize the adverse impact of climate
Chronic climate risk faced by the company. risk on the company’s offline business operations.risks
Geographical factors shall be fully considered when selecting sites for project
development to avoid the severe impact of disasters on infrastructure.Heavy precipitation may lead to road flooding traffic interruption Near ly ha l f o f the company’s Check waterproof facilities to ensure that the in-store waterproof facilities are effective
or potential safety hazards and reduce consumers’ willingness operation sites are exposed to Increase in and prepare necessary emergency supplies such as waterproof sandbags drainage
to go out and buy. In addition it may also lead to instability Operationa high or extremely high risk of operating
Medium and long- equipment emergency lighting etc.of supply or delayed delivery posing challenges to inventory precipitation especial ly certain Upstream expenses
management and customer services. termoperat ion s i tes located in the By optimising inventory management we can improve the inventory turnover rate Decrease in
Precipitation Yangtze River Delta Chongqing Downstream while maintaining adequate inventory to ensure the stability of the supply chain when Continuous heavy rain may affect the sales of some seasonal operating income
city and Fujian province. the logistics and transportation is interrupted.commodities such as outdoor products for summer.Adjust marketing strategies launch targeted promotional activities and encourage
consumers to place orders online.Coastal flooding may cause seawater to flood stores and Flood levees shall be built around stores and the threshold shall be raised to reduce
damage store facilities. Goods soaked in water may decay or get the possibility of seawater flooding. Sandbags waterproof baffles and other materials
damaged resulting in economic losses. shall be prepared for rapid deployment in case of floods.Coastal flooding may cause delays or interruptions in port Some operations of the company Develop a detailed emergency response plan including employee evacuation Operation
transportation and logistics facilities which may affect the located in Hainan province the Increase in customer evacuation goods transfer and other processes and conduct regular drills
Short medium and
supply chain thus affecting sales of goods. Coastal flooding GBA the Yangtze River Delta and Upstream operating to ensure that employees are familiar with the emergency process.long-term
Coastal may damage power and communication infrastructure leading the Bohai Rim region are exposed expensesDownstream By diversifying the supply chain we avoid heavy dependence on a single supply
flooding to power failures and communication interruptions in stores to high or extremely high risks. channel and improve the flexibility of the supply chain.affecting their normal operations.Adjust the inventory strategy avoid overstocking high-risk goods and take
Muddy water pollutants and pathogens left over after floods may appropriate moisture-proof and mold-resistant measures for goods that are vulnerable
pose risks to the health of employees and customers. to floods.Pay close attention to the forecast and early warning information follow the weather
forecast and make timely adjustments to the store operating plan according to the
Typhoons may blow down trees or billboards causing damage Some operations of the company extreme weather forecast.to the external structure of duty-free stores and threatening the located in Hainan province Fujian Increase in
Acute safety of these stores. Typhoons often bring heavy rainfall which province the GBA and the Yangtze Strengthen the maintenance and inspection of the store structure and fix and operating
risks may lead to the flooding of roads and surrounding areas thus River Delta are exposed to a very Short medium and reinforce it when necessary to ensure the structure is firm enough to withstand strong Operation expenses
Typhoons affecting the safe access to stores of customers and employees high level of typhoon risk. Under long-term
winds.and leading to business interruption. Typhoons may affect the the high emissions scenario the Decrease in Establish stable cooperation with suppliers to ensure timely replenishment of goods
logistics system leading to supply chain interruptions and delays number of high-risk operations operating income even when the supply chain is interrupted.in goods replenishment affecting store inventory and sales. slightly increases.Strengthen the safety training for employees to improve their awareness of and ability
to cope with typhoons.The actual losses caused by wildfires may increase additional
costs of maintenance.The smoke and particles generated by wildfire will seriously affect
the air quality resulting in reduced visibility and posing a threat Increase in
to the health of employees and that may affect the shopping S o m e o p e r a t i o n s i n H a i n a n province Heilongjiang province Short medium and Operation
operating
experience of customers leading to reduced passenger flow. expenses Establish a wildfire monitoring system to keep abreast of the fire development take Jilin province Anhui province are long-term Downstream preventive measures in advance to ensure the safety of employees and customers.Wildfires may lead to the blocked roads or traffic congestion exposed to high risk. Decrease in Wildfires
making it difficult for customers and employees to access the operating income
duty-free stores. If a wildfire spreads to the nearby airport or
port it may affect the supply chain and logistics of duty-free
stores.
114 115China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Transition risk impact assessment and response:
Risk category
Policy and legal risks Technology risk Market risk Reputation risk
National and local climate related polices may be tightened (such as Given the synergistic effect of information technology and energy As consumers become increasingly aware of lower- If the company fails to switch to a low-carbon Stakeholders are increasingly concerned about climate-
the carbon price mechanism stricter carbon emission compliance technology during our transition towards lower carbon and greener carbon alternatives and environmental protection they operation mode in time it may have a negative related issues and we may suffer from reputation risk
requirements and information disclosure requirements) which may operations the green innovative and intelligent management will opt for more environmentally friendly products impression on the company due to consumers’ if we fail to meet stakeholder expectations or if we
Description
increase the company’s management inputs and costs and may put requirements in supply chain (including transportation and packaging which will reduce the demand for traditional products preference to spend on a greener and stable platform engage in any behaviour that violates relevant laws and
the company under regulatory pressure without the timely improved links) and the operational maintenance requirements of online business and present related market risks for our partners and us affecting brand reputation and market share. regulations.compliance of management. will increase our technology costs.Impact cycle Medium and long-term Short medium and long-term Short medium and long-term Short medium and long-term Short medium and long-term
Scope of impact Operation Operation Downstream Downstream Operation
Potential financial
impact Increase in operating expenses Increase in asset investment Decrease in operating income Decrease in operating income Increase in operating expensesThe company is continuously monitoring the introduction and The company adheres to the transformation development We have established a smooth mechanism for We continued to convey “Green CTG DUTY- We have established a smooth mechanism forupdating of relevant policies and regulations and we study strategy advancing the integration of online and offline tourism communication with consumers to understand FREE” concept to the mass public through media communication with stakeholders and respond to
implementation requirements as they are released and formulate retail operations strengthening technology empowerment and their demands and preferences in a timely manner channels to boost customer confidence. their concerns in multiple ways.Strategies relevant measures on time. continuously elevating digitalisation intelligence and green and meet their needs for environmentally friendlyinitiatives. products. We have incorporated ESG considerations into our mitigation and The company is developing the “Work Plan for Implementing business operations via specific implementation tasksadaptation the Spirit of President Xi Jinping’s Important Speech on the Optimising resource allocation further increasing investments to continuously improve the quality of the company’s
Construction of an Ecological Civilisation and ‘Carbon Peaking in channel expansion and platform development and improving ESG disclosure while enhancing our communicationmeasures and Carbon Neutrality’”. In addition we are steadfastly promoting supply chain management digital innovation applications with stakeholders via regular release of ESG reports
the construction of an ecological civilisation as we work to build a marketing promotion and brand building to provide robust and other methods to disclose our efforts and
world-class green tourism retailer and pursue high-quality green support for sustainable growth. achievements.development.Climate opportunity impact assessment and response:
Area Description Impact cycle Scope of Potential financial impact impact Strategies mitigation and adaptation measures
The
company’s Short medium and Decrease in operating The construction of infrastructure with better climate resilience can help defend against climate disasters make full use of natural resources and Build climate resilient infrastructure Operation
operations long-term expenses efficiently save energy and reduce emissions. For details please refer to “Green and Low-Carbon Operations for a Better Life”.Collaborate with brand partners to Upstream As consumers prefer environmentally friendly green products we have collaborated with brand partners to promote sustainable green products
Short and medium-term Increase in operating income
Products promote green products Downstream to meet their consumption demands.and
services Short medium and To better cater to consumer shopping habits we have continued to enhance the integration of the on-line and off-line businesses to provide
Integrate online and off-line businesses Downstream Increase in operating income
long-term consumers with more convenient integrated services covering on-line and off-line channels.We have adhered to the use of recyclable and biodegradable green packaging have proactively promoted the automatic and intelligent
Decrease in operating upgrading of packaging and have been committed to applying single-sheet receipts and slim tape into the logistics chain.Promote green logistics & packaging Short and medium-term Upstream
expenses We have established a waste material recycling system to recycle packaging cartons wastepaper and other materials which helps extend the
life cycle of packaging materials and improve the overall utilisation efficiency of resources.Supply
Chain Compared with air transport ocean transport gives off less carbon emissions and provides a higher efficiency in energy conservation and Decrease in operating
Optimise freight transport Medium and long-term Upstream emissions reductions. Therefore we have worked with brands to gradually increase the proportion of sea transportation during the procurement
expenses
and transportation process.Short medium and Decrease in operating We have vigorously promoted the use of clean energy equipment and made full use of electric-powered forklift trucks to replace traditional
Promote the use of new energy tools Upstream
long-term expenses fuelled ones so as to reduce GHG emissions and environmental pollution.
116 117China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Risk Management Green and Low-Carbon Operations for a Better LifeWe have incorporated climate change risks into our overall risk management process. Please refer to “Enhancing Risk Management andInternal Controls and Upholding Business Ethics” for the risk management process.Green Building
Metrics and Targets
The company is committed to implementing the national Green to make our buildings efficient healthy and liveable while realising
Building Action Plan we promote the development of green harmonious coexistence nature throughout the entire life cycle of
Metrics related to climate change response include energy consumption and the resulting GHG emissions. buildings and are committed to extensively engage in resource buildings.conservation environmental protection and pollution reduction
Our greenhouse gas emissions6 are shown in the table below:
Green Planning
Metrics Unit 2025 2024 2023
Total GHG emissions Scope 1 and Scope 2 tCO e 27530 28540 24632 Based on the low-carbon technologies applied at Haikou design stage focus on constructing high-quality green buildings 2
International Duty-Free Shopping Complex’s project plots and that support sustainable development with reference to domestic
Including GHG emissions (scope 1)7 tCO2e 2940 2631 2056 with reference to low-carbon experience gained through other and international green building standards. During the Project’s
8 commercial projects the company has prepared the “Low-Carbon design stage a number of green and energy-saving technologies GHG emissions (Scope 2) tCO2e 24590 25909 22576Technology Guidelines for CDFG’s Investment in Tourism Retail were adopted that meet the standards for fabricated buildingsGHG emissions intensity for Scope 1 and 2 tCO2e/m2 0.04 0.04 0.04 Complexes (Commercial Hotel and Office Complexes)” (hereinafter and the standards for fully-furnished delivery. The smart and
referred to as the “Low-Carbon Technology Guidelines”) which effective technical measures taken include optimising the shape
GHG emissions (Scope 3)9 tCO2e 4740 / / designed to help reduce the carbon emissions of buildings and of the building envelope system integrating the design of the
Including Category 610 tCO promote energy efficiency. Going forward the company will refer to lighting and shading system in the atrium and adopting energy-2e 4680 / /
these guidelines when developing projects that involve the use of efficient heating ventilation and air conditioning (HVAC) equipment
Category 711 tCO2e 60 / / low-carbon technologies. temperature humidity and air quality monitoring systems the
concept of sponge cities primary wearable sensing devices (WSDs)
GHG emissions intensity for Scope 3 (Categories 6 and 7) tCO2e/RMB 1 million of revenue 0.09 / / Sanya International Duty-Free Shopping Complex Zone C irrigation with reclaimed municipal wastewater soundproofed
Commercial Project has adhered to the philosophy of resource construction materials and smart system integration management.conservation and environmental protection since its planning and
In light of the evolving conditions of the company’s operating governance strategy formulation risk management identification
location and the market dynamics we will constantly review and management of metrics and targets and work with all sectors
our practical activities and adjust our objectives and proposed of society to cope with climate change and achieve common
measures in a timely manner. We will further improve our sustainable development.
6 The statistic scope of GHG emissions includes the building of company’s headquarters Haikou International Duty-Free Shopping Complex Sanya International Duty-Free
Shopping Complex Sanya logistics base Sunrise Shanghai and Sunrise China which have already covered the majority of the company’s operating area and revenue. The
company will gradually expand the statistical scope in the following years.
7 Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determined with reference to * China
Energy Statistical Yearbook * IPCC 2006.
8 Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which is determined with reference to the Notice on
Reporting and Verification Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025 issued by the Ministry of Ecology and Environment of China.
9 In addition to the already included Category 6 and Category 7 we are currently reviewing Scope 3 GHG emissions across other categories and will disclose them when conditions
permit.
10 Scope 3 Category 6 GHG emissions (Business Travel) covers emissions from employee business trips via air travel high-speed rail ride-hailing/taxi services and hotel stays.
These emissions are calculated using the spend-based method with emission factors referenced from the China Products Carbon Footprint Factors Database.
11 Scope 3 Category 7 GHG emissions (Employee Commuting) includes only emissions generated by employees commuting via shuttle buses within the Hainan region. These
emissions are calculated using the activity data method with emission factors referenced from the following sources: the UK Department for Energy Security and Net Zero 2025
edition the Announcement on the Release of 2024 Electricity Carbon Footprint Factor Data and the Announcement on the Release of 2022 Electricity Carbon Dioxide Emission
Factors issued by China’s Ministry of Ecology and Environment.
118 119China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
The design of the Sanya International Duty-Free Shopping technologies the Project also boasts an optimised structural
Complex Phase 3 Project adopts a number of energy-saving green design and it has adopted a series of smart and efficient measures
technologies such as a photovoltaic pool roof a sunken green such as energy-efficient equipment green energy-saving building
plaza design a waterscape recycling system solar photothermal materials resource recycling and renewable resource use (the
technology a special acoustic design a fresh air filtration system “four innovative technologies”) as well as smart system integration
low-volatility coatings environmentally-friendly refrigerants a high- management to comprehensively promote carbon reduction at the
performance and multi-split variable frequency system and fresh-air source.heat recovery technology. In addition to these energy conservation
The coloured glaze dome of the atrium has Automatic remote metering system integrated energy management system and air quality
been effectively designed in terms of heat monitoring system (photo of Sanya International Duty-Free Shopping Complex Zone C)
insulation and daylighting (photo of Sanya
International Duty-Free Shopping Complex
Zone C)
Guided by the Green Building Evaluation Label the Sanya For the Sanya International Duty-Free Shopping Complex Phase 1
International Duty-Free Shopping Complex Phase 1 Plot 2 Hotel Plot 2 Hotel Project the company also conducted a comprehensive
Project demonstrates excellent resilience against natural disasters wind engineering study. This encompassed rigid model pressure
including high winds and torrential rain. Adhering to low-impact measurement wind tunnel tests wind-induced vibration analysis
development principles the project incorporates a sponge city- and pedestrian-level wind environment analysis. These studies
Curtain of Sanya International Duty-Free Light coloured pavement and sunshade structures in an outdoor square (photo of Sanya specific design. It intelligently utilises site space to implement eco- ensured the structural safety of the main building against wind
Shopping Complex Zone C International Duty-Free Shopping Complex Zone C) friendly rainwater infrastructure such as sunken green spaces loads and guaranteed that the luxury hotel would meet wind-
rain gardens and rainwater storage tanks. These features naturally induced vibration comfort requirements. Additionally a quantitative
During the early planning phase for the Haikou International Duty- BIM has been adopted in the design and construction process reduce stormwater runoff mitigate flood risks during heavy rainfall evaluation of pedestrian wind comfort was conducted guiding the
Free Shopping Complex Plot 4 we established clear carbon and the project will feature prefabricated buildings and fine control runoff pollution and protect the water environment. subsequent architectural landscape design to ensure outdoor wind
emissions control targets for the building’s entire lifecycle. We also decorations. Various intelligent high efficiency and energy-saving comfort would meet the project’s requirements.formulated carbon reduction pathways and technical measures capabilities such as building shape optimisation building space
prioritising the adoption of suitable technologies such as passive utilisation building insulation materials natural lighting design
design prefabricated construction healthy building principles and sponge cities rainwater recycling garbage classification charging
sponge city concepts. The project comprehensively addresses piles solar energy smart lighting convenient automated payment
performance indicators covering safety and durability health and and smart parking will be adopted to reduce the buildings’ energy
comfort resource conservation and environmental liveability. In consumption and ensure compliance with low-carbon standards.terms of green design the company optimises site layouts and For example the reclaimed water system of Haikou International
building forms based on topography and climate conditions fully Duty-Free Shopping Complex Plot 5 provides 8800 cubic metres
utilising natural lighting natural ventilation and shading designs of reclaimed water throughout the year which can be used for
to reduce operational energy consumption. Regarding resource outdoor landscaping.conservation and recycling the company has developed a strategy
for using green building materials. This strategy clearly specifies
requirements for green materials in key structural elements
and the building envelope prioritising low-carbon recyclable
options to reduce resource consumption and waste generation.Simultaneously the company enhances resource utilisation
efficiency through measures including rainwater harvesting
greywater reuse and waste classification and recycling.
120 121China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Carbon Footprint Management The under-construction Sanya International Duty-Free Shopping generation experiments using both monocrystalline silicon and
Complex Phase 3 Project features approximately 18000-square- cadmium telluride materials. The research also explores optimal
meters of photovoltaic (PV) panels on its roof. Concurrently external environmental conditions such as water depth providing
The company strives to meet the goals of carbon peaking and All construction projects undertaken by the company utilise to explore the most suitable solar power generation materials a valuable reference for future practical implementation. This workcarbon neutrality. To this end we are following the “Action Plan for prefabricated construction technology. The main structures of each for Sanya’s Haitang Bay and to enhance the safety reliability not only helps to optimise the design and application of underwaterCarbon Peaking and Carbon Neutrality” and we plan to prioritise project employ methods like “steel-truss with reinforced concrete and efficiency of the PV system design the project team has PV systems but also offers more reliable energy supply solutionscarbon emissions accounting as part of our effort to identify the slabs” or “prefabricated beams and columns with composite collaborated with the University of Science and Technology of for underwater equipment holding significant scientific importancecompany’s carbon footprint. We are also exploring new carbon slabs.” This approach achieves water conservation energy China. This collaboration involves conducting underwater PV power and practical value.reduction solutions that harness technological breakthroughs and efficiency material savings and reduced carbon emissions.innovations with the goal of optimising our energy structure and
using more clean energy. We fully leverage the market’s role in
resource allocation and actively participate in carbon trading to
reduce costs related to carbon reduction.The photovoltaic power generation facilities installed on the rooftop and carport of the China Tourism Group Plaza at the Haikou International Duty-Free
Shopping Complex Plot 1
Main features of the project:
Low-carbon image Integrated design Economic effectiveness Intelligent control
The Sanya International Duty-Free Shopping Complex Phase 1 Hotel Project employs a “steel truss with reinforced concrete slabs” method.Establishing a photovoltaic Integrating photovoltaic Through photovoltaic power With ECC an intelligent energy
carport system in the systems energy storage generation we can achieve the management system we can engage
charging space at the main systems and charging pile goal of self-generation for self- in energy management and orderly
entrance and exit areas of power distribution systems consumption in an automated dispatching covering photovoltaics energy
the park. as necessary to realise manner and feed any surplus storage charging piles (clusters) and theintegrated “generation electricity into the grid or power grid. In this way we will digitalise– storage – charging” consume all the self-generated our energy use and harness the Internet of
capabilities. electricity effectively reducing Things to connect multiple systems.power costs.The Sanya International Duty-Free Shopping Complex Phase 3 Project utilises a “prefabricated beams and columns with composite slabs” approach. 480kW Split-type Photovoltaic Carport
Charging Pile
To reduce embodied carbon emissions during the construction Total Installed Capacity
of the Sanya International Duty-Free Shopping Complex Phase
3 Project the company is working with suppliers to develop and
deploy low-carbon steel bars and low-carbon concrete. Selected
buildings within the project will be designed and constructed so as 540 KW
to achieve net-zero carbon certification.String Inverter Mono-crystalline Integrated Energy
We will increase the use of renewable energy including by Single-sided Solar Storage System
expanding the use of solar photovoltaic technology. China Duty- Module 550Wp 100kW/215kWh
Free (Haikou) Investment Development Co. Ltd. has signed
strategic cooperation agreements with photovoltaic manufacturersGenerate Green Electricity Annually Under the d i rect ion of the “Low-Carbon Duty-Free Shopping Complex and various airportand has devised an overall plan under which photovoltaic Techno l ogy Gu ide l i n es ” t he company comprehensive duty-free stores are also required
technology will be installed in stages for the Haikou International incorporates green building materials as much as to obtain environmental green certifications
Duty-Free Shopping Complex Project. The China Tourism Group
500000 possible during project construction. Suppliers such as “Certificate for Certification of China Plaza (formerly the Haikou International Duty-Free Shopping kWh of equipment and materials (such as cables air Environmental Labelling Product” “Environmental Complex Plot 1 Project) features rooftop and carport photovoltaic conditioners refrigerators diesel generators Management System Certification” “ISO14001”
(PV) power generation facilities. This system forms an integrated domestic water supply pumps air conditioning and “FSC Certification” etc.smart micro-grid combining PV generation energy storage and chilled water pumps oil separators etc.) for
charging/discharging capabilities with a total installed capacity of Sanya International Duty-Free Shopping Complex The Haikou International Duty-Free Shopping
540 kW. It is expected to generate 500000 kWh of green electricity Zone C project are all required to obtain the Complex Plot 5 Project actively promotes the
annually. For the Haikou International Duty-Free Shopping Complex Certificate for Environmental Management System application of new technologies and won the
Plot 4 Project a tailored renewable energy utilisation plan has been Certification and among which cables already Certificate for the Second Rank Achievement
developed to actively incorporate solar PV technology to enhance obtained carbon footprint assessment report. in Green Construction issued by the China
the building’s overall renewable energy utilisation rate. Props suppliers for Haikou International Duty- Construct ion Industry Associat ion for i ts
122 Free Shopping Complex Sanya International construction process control efforts. 123China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Embracing the circular economy During the construction process the company adopts the following management measures:
The company employs Building Information Modelling (BIM) Adoption of an environmentally-friendly architectural design and related materials to reduce any negative impact on the The Sanya International Duty-Free Shopping Complex Phase
technology throughout both the design and construction phases environment.1 Plot 2 Project implements sponge city design standards.of its projects. Utilising BIM functions such as 3D visualization Sponge city development and rainwater utilisation constitute key
A preference for reusable materials and equipment such as stainless steel glass products etc.design clash detection pipeline integration and optimisation circular economy practices within the water resources sector.and automated quantity take-offs the company achieves digital Through techniques encompassing infiltration retention storage Plastic material management of avoiding the use of one-off plastic products. If plastic materials are unavoidable choose
management across the entire project lifecycle – spanning design purification utilisation and drainage the project mitigates urban recyclable and biodegradable ones and fully recycle and reuse them by reducing damage and waste. Plastic waste resulting from
construction and operations & maintenance. This integrated waterlogging and rainwater runoff pollution thereby enabling construction is collected and disposed of by its type to avoid environmental pollution.approach enhances design quality reduces rework saves costs rainwater resource recovery. This approach simultaneously
and establishes a data foundation for future smart operations supplements urban water sources and reduces pressure on Classified management of construction waste through compliant collection and transportation reducing resource waste and
and maintenance. Additionally the company leverages BIM municipal water supply while improving the ecological environment. minimising environmental impact.technology to conduct building carbon emissions simulation It fosters a closed-loop system for water resources characterised
energy consumption analysis optimised material selection by “natural accumulation – recycling – ecological restoration” Mobile fume extractors with 99.9% filtration efficiency deployed for all on-site welding operations across ongoing projects. Energy-
and construction waste reduction simulation. This enables the supporting urban green low-carbon development. saving modifications were made to gas-shielded welding equipment by installing digital flow controllers reducing gas wastage by
integration of green and low-carbon principles throughout the 35%.entire project lifecycle. China Tourism Group Plaza (formerly Haikou International Duty-
Free Shopping Complex Plot 1 Project) employs a reclaimed water Solar-powered streetlights installed in temporary residential and office areas at project sites to conserve electricity.All ongoing construction projects are comprehensively adopting system utilising restroom greywater as its source. Combined
aluminium formwork with truss decking technology and with highly efficient water-saving irrigation methods such as drip Rainwater harvesting and recycling systems established. Collected rainwater undergoes sedimentation and filtration before being
prefabricated construction methods. This enhances formwork irrigation this comprehensively fulfils LEED requirements for reused for dust suppression landscape irrigation and concrete curing on-site enhancing water resource circularity.turnover efficiency while significantly reducing timber consumption. efficient water use establishing a resource circulation system.Building materials are classified and managed as recyclable Misting systems integrated into perimeter fencing at all ongoing construction sites for effective dust suppression.reusable or non-recyclable enabling multi-use and recycling During planning the Sanya International Duty-Free Shopping Complex
Water-sealing curtains and slope anchoring with shotcrete employed during construction to effectively prevent soil erosion and
to minimise construction waste. Additionally the projects utilise Phase 3 Project prioritised sustainable water resource management.water loss.factory prefabrication and centralised on-site processing thereby It incorporates not only water-saving fixtures but also actively
improving standardised operations while reducing repetitive tasks implements circular principles within its water management strategy. Implementation of environmental protection publicity and energy saving education.and material waste. Municipal reclaimed water is utilised for cooling tower make-up while
air conditioning condensate and harvested rainwater are recycled.Green Construction Management
Across all procurement projects we have further strengthened material conservation and environmental protection) are applied
environmental access mechanisms. During the qualification review throughout the whole process from planning development
stage whether bidders possess ISO 14001 certification is treated design and construction through to operations for properties
as a key assessment criterion prioritising suppliers with outstanding and commercial complex projects invested in and constructed
environmental management capabilities to ensure shortlisted by the company. Measures are taken to ensure safe construction
candidates possess robust environmental credentials. Building sites a clean environment on time delivery and sufficient funds.on this we explicitly require bidders to develop comprehensive We take the bidder’s possession of ISO 14001 certification as
specialised plans for safe and civilised construction practices. a key evaluation criterion prioritising suppliers with outstanding
These plans must provide detailed provisions for environmental environmental management capabilities to ensures shortlisted Installation of solar-powered streetlights in workers’ living quarters and office areas at ongoing project sites
protection measures throughout the construction phase including candidates possess robust environmental credentials. Furthermore
dust control noise management and waste disposal ensuring we explicitly require bidders to develop comprehensive specialised
all construction activities fully comply with local environmental plans for safe and civilised construction practices. These plans
regulations and standards at the project site. must provide detailed provisions for environmental protection
measures throughout the construction phase including dust
The company also implements green and low-carbon standards control noise management and waste disposal ensuring all
during construction processes to strengthen its green building construction activities fully comply with local environmental
credentials. The “four conservations and one protection” principles regulations and standards at the project site.(energy conservation land conservation water conservation
Implementation of rainwater collection devices on construction sites for recycling rainwater and construction drainage
124 125China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Green and Energy-Saving Operations
Sanya International Duty-Free Shopping Complex Project
Based on the operational data of Sanya International Duty-Free Shopping Complex Phase 1 and Phase 2 Phase 1 has reduced
energy use by more than 15% and Phase 2 has reduced energy use by more than 18%.Aspect Low Carbon & Environmental Protection Measures
* The building’s energy-efficient design complies with national standards. The design of the building’s shape orientation the distance between buildings
and window-to-wall ratio among other aspects were optimised to reduce overall energy consumption.* The facade curtain walls of Sanya International Duty-Free Shopping Complex Zone C adopt tempered double-silver ultra-white Low-E hollow glass
structures and double-silver coating technology to effectively prevent heat waves from penetrating inside which efficiently improves the performance of
the building’s thermal insulation without affecting the light transmission rate needed to keep the room bright.* The Low-E coating helps reflect outdoor thermal radiation prevents heat from entering the room and reduces the energy consumed by air conditioning.For buildings in climate zones with hot summers and warm winters this coating technology helps improve energy-saving efficiency and blocks most
Energy ultraviolet rays reducing the damage inflicted by ultraviolet rays on indoor furniture floors and fabrics and extending their useful lives.consumption * Intelligent elevator management: The escalators’ intelligent speed monitoring capabilities and the elevator group 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 than the indoor temperature in summer.* The building’s intelligent lighting considers the time of the day and scenarios to reduce electricity and energy consumption.* The building has been outfitted with a variety of intelligent control systems including intelligent office capabilities energy efficiency capabilities intelligent
lighting intelligent monitoring access control systems and vehicle management systems.* Adopting rainwater storage system and permeable pavement in the building’s “sponge city”: The permeable pavement has been used to efficiently
penetrate ground rainwater which reduces pressure on the drainage system and maintains the urban soil’s ecological balance.Leveraging the 2025 National Energy Conservation Promotion Week as a catalyst CDF Investment Development directed its subsidiaries to conduct Water and soil
energy-saving awareness campaigns. Activities included distributing pamphlets displaying promotional banners disseminating educational videos and * Sewage and wastewater classification treatment: Sewage is discharged into the municipal network after being treated by the outdoor septic tank and
organising training sessions resulting in over 3000 personnel receiving training throughout the year. resources kitchen sewage is discharged into the municipal is also network after being treated by oil separators twice.* Phase 2 also equipped with a river revetment and plant maintenance capabilities which enable the building to meet floodwater discharge requirements
thereby ensuring a stable riverside and preventing water and soil erosion.The Sanya International Duty-Free Shopping Complex Phase 1 Plot primary use of local and recycled building materials advanced * The high-efficiency oil fume purifier has been designed to the highest emission standard of 1.0mg/m3 which is stricter than the national standard for
2 Hotel Project and the Haikou International Duty-Free Shopping construction techniques tool stereotyping bare soil coverage for environmental protection and emissions in China. These measures effectively improve the park’s air quality.
Complex Hotel Project among others have each formulated dust suppression water-sprinkling devices on site to control dust Clean air * The building layout distance between buildings and ventilation placement have been optimised to improve on-site air circulation.a green construction programme. This programme includes and the recovery and comprehensive utilisation of construction * Phase 2 is equipped with an intelligent garage ventilation system. The induced ventilation system in the underground garage automatically controls the
measures for site environmental protection; comprehensive waste reducing resource consumption and environmental pollution operation of the garage fan according to the carbon monoxide concentration which improves air quality in the garage.utilisation of materials and resources; energy conservation and throughout all stages of the construction process to protect the * Noise and vibration control: Fans pumps and other equipment emit low noise and shock absorption devices have been deployed in relevant locations Noise management
comprehensive utilisation of energy; water conservation and natural surroundings to the furthest extent possible. Construction on the premises.comprehensive utilisation of water resources; land conservation waste materials generated during on-site operations are sorted
and construction land protection; construction waste management; and recycled in accordance with requirements then transported
noise pollution control; light pollution control; indoor environmental to licensed processors for reprocessing. The reclaimed materials
pollution control; and other measures. Multiple green technologies are subsequently used in manufacturing new building materials Haikou International Duty-Free Shopping Complex Project
and measures have been adopted for these Projects such as the thereby conserving natural resources.Aspect Low Carbon & Environmental Protection Measures
Reducing the heat island * The project reduces ground parking spaces uses light-coloured paving materials and uses light-coloured materials or highly reflective
effect coatings for roofing materials as much as possible.High efficiency water- * The project uses all Grade I sanitary ware to achieve high-efficiency water savings and the cooling tower’s water flow rate meets LEED
saving appliances requirements.Rainwater recycling * All on-site rainwater will be collected treated and reused for greening irrigation and road washing to save fresh water.In 2025 the Sanya International Duty-Free Shopping Complex Phase 3
Energy efficiency * A comprehensive energy consumption simulation has been conducted based on the design of the project envelope and the HVAC system Project and the Haikou International Duty-Free Shopping Complex (Block
optimisation the equipment’s energy efficiency and the indoor lighting power density. According to the simulation’s calculations the designed building will No.4) were each named as a reduce costs by 16.3% annually compared to the ASHRAE benchmark building.“Provincial-level Exemplary Construction Site High efficiency air * The project adopts G4+F8 medium – and high-efficiency filtration devices to guarantee indoor air quality. In addition to basic ventilation thefor Safety and Civilised Building in Hainan treatment volume of fresh air will be increased by 30% to avoid insufficient fresh air when there are many people in the building.Province”. * In addition to basic commissioning the project will also ensure that an efficient operational strategy is maintained for the energy consumption
Enhanced commissioning system and that timely support is provided for operations through functional testing and problem documentation of HVAC the HVAC control
system and the lighting system.Full life cycle assessment * The project has conducted a full life cycle assessment (LCA) of the new building to calculate the percentage reduction in various environmental The Sanya International Duty-Free Shopping Complex Phase 3 Project impact indicators of the new building compared to the benchmark building.was named as a “Provincial-level Exemplary Construction Site for Safetyand Civilised Building in Hainan Province”
126 127China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
The China Tourism Group Plaza (formerly Haikou Multiple intelligent control systems to achieve green and low-carbon operation of buildings
International Duty-Free Shopping Complex Plot 1 Project)
The Haikou International Duty-Free Shopping Complex Project systems intelligent lighting systems and other intelligent control
Adhering to the principle of “Efficiency Energy Conservation and Sustainability” the project integrates multiple low-carbon and Sanya International Duty-Free Shopping Complex Zone C are systems. During their operating periods the following measures
technologies and intelligent systems achieving a 23.8% reduction in overall energy consumption compared to the LEED equipped with building automation systems air quality monitoring have been taken to promote green and low-carbon operations:
baseline.Project Low Carbon & Environmental Protection Measures
* The comprehensive optimisation of electromechanical systems including the application of variable frequency drive (VFD) and group control technology
to domestic water pumps and lifts combined with high-efficiency chillers and VRF systems yields approximate annual electricity savings of 633500 kWh. Making full use of the building automation system taking into account the actual operating needs of the
* The installation of triple-silver Low-E insulated glass curtain walls a 110mm thick extruded polystyrene (XPS) roof slab and 80mm rock wool external wall projects to optimise operating strategies and realising intelligent group control of cold station equipment.insulation has significantly improved the thermal performance of the building envelope. Frequency conversion technology is also applied to the water system and air system to comprehensively
reduce the energy consumed by the transmission and distribution system of the refrigerator equipment and
* A low-voltage interconnection mode has been activated within the substation allowing transformer operations to be adjusted based on actual electrical the operation of air conditioning terminals so as to conserve energy and reduce consumption and carbon
load. This measure reduces transformer loss consumption by approximately 8000 kWh per month. emissions
Energy * Lighting usage measures have been implemented featuring an “every-other-light-on” configuration and a lights-off-when-unoccupied mode. Smart
lighting controls complemented by regular personnel patrols have reduced lighting electricity consumption by 55%.consumption Using the air quality monitoring system to perform real-time monitoring of indoor air quality (such as analysing
* Air conditioning operating strategies have been formulated through detailed analysis of equipment operational logic. New intelligent cooling tower carbon dioxide PM2.5 and other indicators) and enabling intelligent regulation of the fresh air system and air
temperature-based start-stop controls and variable frequency drives for air conditioning water pumps have been added. Consequently the coefficient of purification equipment to ensure that indoor air quality meets relevant standards.performance (COP) for the main chiller units has increased from a peak of 4.3 to 4.7 achieving a comprehensive energy reduction of 12%.* A comprehensive monitoring and metering system has been established. This integrates Building Management Systems (BMS) and Energy Management
Systems (EMS) via an Intelligent Building Management System (IBMS) platform enabling real-time monitoring of equipment operations and energy Using the intelligent lighting system which features refined lighting design and diversified lighting styles to
consumption. Operational data is automatically fed into the company’s energy management platform generating electronic statistical records that provide
data support for energy conservation and carbon reduction. exercise control of landscape lighting by zone point location system time interval and mode and create
multiple lighting scenes while saving energy consumed by the lighting system.* A greywater reuse system sourcing water from restroom wastewater has been implemented. This is combined with highly efficient irrigation methods
such as drip irrigation.Saving Water
* Daily readings are taken for key water meters to analyse abnormal usage patterns. This facilitates precise control over irrigation and public water usage
resulting in monthly water savings of 700 tonnes.The projects are also equipped with Intelligent Operations Centres (IOCs) which harness the Internet of Things passenger flow perception intelligent security solutions energy
consumption analysis and ticketing services among other tools to facilitate low-carbon operations.Case study
In 2025 the company conducted energy and water conservation renovations for existing buildings
through various initiatives to reduce operational costs
At the Haikou International Duty-Free Shopping Complex energy-saving
modifications were implemented in office areas. Over 1000 LED energy-
efficient luminaires were installed achieving a 60% reduction in lighting
energy consumption within the renovated zones. Additionally more than
50 water-saving faucets and sensor-activated flushing devices were fitted.
Precision irrigation upgrades for landscaping were also introduced curbing
water usage.The China Tourism Group Plaza (formerly Haikou International Duty-Free Adjusting the operations mode of transformers
Sanya International Duty-Free Shopping Complex Building A and Building
Shopping Complex Plot 1 Project) B underwent phased upgrades without disrupting operations. Guided
by the principles of resource conservation and environmental protection
the project addressed tenant requirements for mechanical and electrical
Sanya International Duty-Free Shopping (M&E) systems while integrating energy-efficient and green technologies.Through on-site technical assessments and analysis of historical operating
Complex Phase 1 Plot 2 Hotel Project data a comprehensive M&E retrofit methodology was developed. Key
upgrades included enhancement of M&E systems employing multiple green
The project’s annual operational energy consumption achieved a 13.3% reduction compared to the requirements stipulated in technologies: fresh air filtration systems eco-friendly refrigerants high-efficiency variable refrigerant flow (VRF) multi-split systems and fresh air
the national standard GB55015-2021 General Code for Energy Efficiency and Renewable Energy Application in Buildings. heat recovery technology. Necessary monitoring points regulating valves
and balancing valves were installed and overall system balancing was
Project Low Carbon & Environmental Protection Measures commissioned. This ensures the entire system operates with high efficiency and energy savings while meeting usage requirements.* The integrated system – comprising district cooling plants with chilled water sources variable flow water systems and high-efficiency terminal air- Energy-saving renovations at Haikou International Duty-Free
conditioning units – achieves an overall energy efficiency exceeding 10% above the required standard. An intelligent property management platform was established for the Shopping Complex in 2025
* Guest rooms and public areas are equipped with independently controlled air-conditioning balancing energy conservation with personal comfort. renovation of Sanya International Duty-Free Shopping Complex Building A
Energy and Building B. Centred on digital monitoring intelligent regulation and data-* The thermal performance of the building envelope surpasses the national energy-saving standard by over 15%. High-performance low-emissivity (low-E) driven decision-making the platform enhances the entire building energy
Consumption curtain wall glazing effectively reduces solar heat gain while maintaining panoramic sea views.actual demand thereby reducing unnecessary energy consumption.efficiency retrofit process. It collects real-time energy consumption data Simultaneously it accumulates energy consumption data models to
* All lighting products three-phase distribution transformers water pumps and fans meet or exceed Grade 2 energy efficiency under China’s current from water electricity gas HVAC lighting and other equipment. Utilising continuously optimise retrofit plans driving the transition of energy-saving
national standards. intelligent algorithms the platform precisely identifies high-consumption measures from extensive to precision approaches. This ultimately achieves a
* Air-source heat pumps supply domestic hot water with renewable energy contributing to over 26% of the total provision. equipment and anomalous energy usage points providing targeted win-win outcome of reducing operational costs and enhancing efficiency for
objectives for energy-saving retrofits. By integrating systems such as property management alongside advancing green low-carbon development.Saving Water * An intelligent energy management system covering three utilities – electricity water and cooling capacity – has been implemented alongside sponge city intelligent lighting smart access control chiller group control video security concepts water recycling and water conservation measures. and parking management it enables intelligent control and management
and automated operations including temperature regulation based on
Noise Control Acoustic insulation and vibration reduction measures have been optimised for noise control.
128 129China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Green Stores
By the end of 2025 the company had a total > > > > > > > > > >
Adhering to green operation principles we collaborate with brand partners to build eco-friendly stores and advance low-carbon
sustainable operations. stores/counters had received
LEED certification of of which at
As of the end of 2025 the company’s progress in applying green building measures for certain key projects is as follows: LEED Platinum certification LEED Gold certification LEED Silver certification
Haikou International Duty-Free Shopping Complex Sanya International Duty-Free Shopping Complex
(Block No.1) Zone C 34 1 store 31 stores 2 stores
NO.21-2-P-2025-3二星级绿色建筑标识证书
CERTIFICATE OF GREEN BUILDING LABEL
建筑名称:海口市国际免税城项目（地块一）
建筑类型:公共建筑
建筑面积:12.2万㎡
申请单位:中免（海口）投资发展有限公司、雅克设计有限公司 In September 2025 the SAINT LAURENT In September 2022 the De Beers shop at Sanya International Duty-Free关键技术指标指标值
建筑运行碳排放强度 kgCO2/(㎡.a)
围护结构热工性能(或建筑供暖空调负荷) 围护结构热工性能提高 10% CTG PLAZA SANYA INTERNATIONAL DUTY FREE SHOPPING COMPLEX BLOCK C
严寒和寒冷地区住宅建筑外窗传热系数降低比例比国家标准降低?%
中旅大厦 三亚国际免税城C区节水器具用水效率等级 全部达到2级
建筑隔声性能 房间隔声性能达到高限值； 楼板撞击隔声性能达到高限值 Haikou China Sanya China store at Sanya International Duty-Free Shopping Complex received LEED Gold certification.室内主要空气污染物浓度 比国家标准GB/T 18883限值降低 大于20%
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED
外窗气密、水密、抗风压性能 外窗气密、水密、抗风压性能符合国家标准规定，外窗洞口 BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.与外窗本体结合严密
LEED v4 LEED v4
全装修 全装修质量符合国家标准规定 BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENT BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENT
绿地率30.0%，达到规划指标%年径流总量控制率%
由可再生能源提供的生活用热水比例 ?%、 Shopping Complex rece ived LEED
可再生能源利用率由可再生能源提供的空调用冷量和热量比例?%、
由可再生能源提供的电量比例4.11%
非传统水源利用率绿化灌溉、车库及道路冲洗、洗车%；冲厕%；冷却补水%
绿色建材应用比例?%
October 2025 October 2023
以上指标为认定时标准工况数值，认定标准为《绿色建筑评价标准》GB/T50378?2019 Platinum certification.海南省住房和城乡建设厅 PETER TEMPLETON PETER TEMPLETON PRESIDENT & CEO PRESIDENT & CEO U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
2025年08月18日 U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
扫描二维码可见项目详细信息
DE BEERS SANYA HTB PERM STORE SHOP
Sanya China
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.
2-star Green Building LEED Gold certification 2-star Green Building LEED Gold certification In December 2021 the Armani Beauty
LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL
certification (obtained in 2025) (obtained in 2025) certification counter at Sanya International Duty-Free
September 2022
Shopping Complex received LEED Gold PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.certification.Haikou International Duty-Free Shopping Complex Sanya International Duty-Free Shopping Complex In October 2022 the Balenciaga shop at Sanya International Duty-Free
(Block No.4) Phase 1 Plot 2 Hotel Project Shopping Complex received LEED Gold certification.
In January 2022 the Cartier shop at Sanya International Duty-Free
Shopping Complex received LEED Gold certification.BALENCIAGA
SANYA HAITANG BAY
Sanya China
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.LEED v4
2-star Green Building pre- 2-star Green Building pre- INTERIOR DESIGN AND CONSTRUCTION: RETAIL
certification (obtained in 2025) certification (obtained in 2025)
October 2022
PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.In March 2022 the YSL Beauté counter In January 2023 the Lanc?me shop at Haikou International Duty-Free
at Sanya International Duty-Free Shopping Shopping Complex received LEED Gold certification.Complex received LEED Gold certification.Haikou International Duty-Free Shopping Complex Sanya International Duty-Free Shopping Complex
(Block No.5) Phase 3 Commercial Project
L'OREAL LANCOME HAIKOU XHG STORE
Haikou China
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.LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL
In April 2022 the Kiehl’s store at Sanya January 2023
PETER TEMPLETON PRESIDENT & CEO
International Duty-Free Shopping Complex U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.received LEED Gold certification.LEED Gold certification
In March 2023 the Helena Rubinstein shop at Haikou International Duty-
Free Shopping Complex received LEED Gold certification.In April 2022 the Lanc?me counter at
WELL Platinum mid-term LEED Platinum pre-
pre-certification certification Sanya International Duty-Free Shopping HELENA RUBINSTEIN CDFG HAIKOU XHG
(TRAVEL RETAIL ASIA PACIFIC)
Complex received LEED Gold certification. Haikou China
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.LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL
Haikou International Duty-Free Shopping Complex March 2023
PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
(Block No.6)
Plan to apply for 2-star Green
Building certification
130 131China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
In March 2023 the Kiehl’s shop at Haikou International Duty-Free In July 2023 the YSL shop at Haikou International Duty-Free Shopping In February 2024 the Maison Margiela shop at Sanya Duty-Free Shopping In June 2024 the Prada shop at Haikou International Duty-Free Shopping
Shopping Complex received LEED Gold certification. Complex received LEED Gold certification. Complex Block C received LEED Gold certification. Complex received LEED Gold certification.KIEHL'S CDFG HAIKOU XINHAIGANG MAISON MARGIELA TR APAC
(TRAVEL RETAIL ASIA PACIFIC) SAINT LAURENT HAIKOU XHG INT' L DUTY FREE CITY COMPLEX BLK C PRADA HAIKOU XINHAIGANG
Sanya China INTERNATIONALL DFS COMPLEX
Haikou China Haikou China 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.HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED Haikou China
BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED LEED v4
BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED
LEED v4 INTERIOR DESIGN AND CONSTRUCTION: RETAIL
BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.INTERIOR DESIGN AND CONSTRUCTION: RETAIL LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL
February 2024
March 2023 July 2023 June 2024
PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.??--
PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. PETER TEMPLETON PRESIDENT & CEO U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.In March 2023 the YSL Beauté shop at Haikou International Duty-Free In January 2024 the Helena Rubinstein shop at Sanya Duty-Free Shopping In March 2024 the Kiehl’s shop at Sanya Duty-Free Shopping Complex In August 2024 the Valentino shop at Sanya Duty-Free Shopping Complex
Shopping Complex received LEED Gold certification. Complex Block C received LEED Gold certification. Block C received LEED Gold certification. Block C received LEED Gold certification.YSL BEAUTé CDFG HAIKOU XINHAIGANG HELENA RUBINSTEIN TR APAC KIEHL’S TR APAC
(TRAVEL RETAIL ASIA PACIFIC) INT' L DUTY FREE CITY COMPLEX BLK C INT' L DUTY FREE CITY COMPLEX BLK C VALENTINO TR APAC
Sanya China Sanya China INT’L DUTY FREE CITY COMPLEX BLK CHaikou China
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED 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. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. Sanya China
LEED v4 HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED LEED v4 v4 BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL
LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL
March 2023 January 2024 March 2024
August 2024
PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.In April 2023 the De Beers shop at Haikou International Duty-Free In January 2024 the L’Oréal shop at Sanya Duty-Free Shopping Complex In April 2024 the Lanc?me shop at Sanya Duty-Free Shopping Complex In August 2025 the Kerastase counter at
Shopping Complex received LEED Gold certification. Block C received LEED Gold certification. Block C received LEED Gold certification. Sanya Duty-Free Shopping Complex Block
C received LEED Gold certification.L'ORéAL PARIS TR APAC LANC?ME TR APAC
DE BEERS HAIKOU XHG INT' L DUTY FREE CITY COMPLEX BLK C INT’L DUTY FREE CITY COMPLEX BLK C
Haikou China Sanya China Sanya China
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED 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. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.LEED v4 LEED v4 LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL
April 2023 January 2024 April 2024
PETER TEMPLETON PRESIDENT & CEO
PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.In May 2023 the Cartier shop at Haikou Meilan Airport Duty-Free Shop In January 2024 the SAINT LAURENT shop at Sanya Duty-Free Shopping In April 2024 the Prada Beauty shop at Haikou International Duty-Free In March 2026 the Moncler store at Sanya Duty-Free Shopping Complex
received LEED Gold certification. Complex Block C received LEED Gold certification. Shopping Complex received LEED Gold certification. Block C received LEED Gold certification.CARTIER HAIKOU YVES SAINT LAURENT TR APAC PRADA BEAUTY TR APAC
MEILAN INTERNATIONAL AIRPORT T2 INT' L DUTY FREE CITY COMPLEX BLK C INT’L DUTY FREE SHOPPING COMPLEX
Haikou China Sanya China Haikou China
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED 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. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.LEED v4 LEED v4 LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL
May 2023 January 2024 April 2024
PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.In June 2023 the Balenciaga shop at Haikou International Duty-Free In January 2024 the Prada Beauty shop at Sanya Duty-Free Shopping In April 2024 the SkinCeuticals shop at Sanya Duty-Free Shopping In May 2022 the Van Cleef & Arpels shop at Sanya International Duty-Free
Shopping Complex received LEED Gold certification. Complex Block C received LEED Gold certification. Complex Block C received LEED Gold certification. Shopping Complex received LEED Sliver certification.BALENCIAGA PRADA BEAUTY TR APAC SKINCEUTICALS TR APAC VAN CLEEF & ARPELS
HAIKOU XHG INT' L DUTY FREE CITY COMPLEX BLK C INT’L DUTY FREE CITY COMPLEX BLK C SANYA CDFG BOUTIQUE
Haikou City China Sanya China Sanya China Sanya China
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED 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.BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.LEED v4 v4.1 LEED v4 LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL LEED V4.1 ID+C: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL
June 2023 January 2024 April 2024 May 2022
PETER TEMPLETON PRESIDENT & CEO
PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.In July 2023 the Cartier shop at Haikou International Duty-Free Shopping In February 2024 the Armani shop at Sanya Duty-Free Shopping Complex In May 2024 the Shu uemura shop at Sanya Duty-Free Shopping Complex In July 2023 the Van Cleef & Arpels shop at Haikou International Duty-Free
Complex received LEED Gold certification. Block C received LEED Gold certification. Block C received LEED Gold certification. Shopping Complex received LEED Sliver certification.CARTIER SHU UEMURA TR APAC VAN CLEEF & ARPELS
HAIKOU NEW HABOUR MALL INT’L DUTY FREE CITY COMPLEX BLK C HAIKOU CDFG BOUTIQUE
Haikou China Sanya China Haikou China
HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED 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. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC. BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.LEED v4 LEED v4 LEED v4
INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL INTERIOR DESIGN AND CONSTRUCTION: RETAIL
July 2023 May 2024 July 2023
PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO PETER TEMPLETON PRESIDENT & CEO
U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC. U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.
132 133China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Packaging Material Collaborating with Brands to Implement Green Packaging
We have formulated unified environmental protection policies and guidelines Leveraging its supply chain influence the company collaborates with schemes minimalist packaging packaging take-back programmes and the
and adhere to the philosophy of “responsible packaging” and carries out brands to launch eco-themed initiatives. Examples include the “Sustainable introduction of eco-refills for products. This supply chain cooperation drivesSkincare Shared Environmental Care” campaign with Saint Laurent green low-carbon operations enabling customers to actively participate in
green packaging actions.L’OCCITANE and Kiehl’s. Actions encompass empty container recycling environmental protection practices.Reducing Packaging Material Usage Haikou International Duty-Free Shopping Complex Collaborates with L’OCCITANE on
We are committed to reducing packaging material usage thereby minimising We implemented the “circular economy” concept in packaging materials Empty Bottle Recycling Initiative
waste at source. To avoid resource waste and excessive packaging making “the vigorous promotion of the use of recyclable packaging materials” Haikou International Duty-Free Shopping Complex in partnership with
suppliers are required by the company to deliver their goods directly to their a key objective. To this end we eliminated single-use packaging and fully L’OCCITANE has deeply integrated an empty bottle recycling programmedestination skipping any unpacking and repacking procedures needed adopted reusable environmentally friendly returnable transit containers for into its duty-free shopping experience themed “Filled with the Beauty of theduring transportation. sorting and distribution processes. These durable crates which are designed World ”. As a practitioner of green transformation within the retail sector
the company and the brand have joined forces in this cross-sector initiative
to be used for multiple cycles significantly reduce demand for new boxes
to accept full-size empty containers from all brands under the L’OCCITANE
and waste generation. Group. This tangible action responds to the emerging trend of eco-conscious
consumption. Each cleaned empty bottle is given a new lease of life through
In 2025 the company’s Sanya Downtown Store achieved a full-year professional recycling processes transforming into eco-friendly merchandise
“zero procurement” of single-use transport packaging. Furthermore and practical items thereby perpetuating the ethos of cherishing resources.we established a closed-loop packaging material system creating a Between September 2023 and March 2025 the initiative collected 139
empties with participants eligible to exchange them for exclusive gifts.comprehensive reusable crate recovery network. Incoming cardboard boxes
from suppliers are classified and recovered by brand and specification.After sorting these are repurposed for store distribution. We ensure timely
recovery of each crate upon delivery completion enabling multiple reuse Collaborating with Oris to Promote Sustainable Watches and Cases
cycles based on its condition.We are collaborating with Oris to promote sustainable watches cases are smaller lighter and fully recyclable compared to previous
and cases. Its Aquis Upcycle Date watch is crafted from recycled packaging which will reduce the brand’s carbon emissions from
For our proprietary brand packaging we utilise environmentally friendly
PET plastic and the brand utilises sustainable watch cases. These packaging by 50%.materials. The CDF Health product line primarily consists of common
materials such as paperboard and acrylic ensuring effective product
CDF Health Product Presentation protection and essential display functionality while balancing cost efficiency
and practicality.We promote packaging automation and intelligent upgrades. The company
uses single-sheet receipts and slim tapes into the logistics chain and
explores the use of tape-free cartons at the end of the logistics chain. Tape-
free cartons are sealed entirely physically and they also allow consumers to
feel that they are participating in environmental protection initiatives during
the unpacking process. By making this change we hope to spread green
consumption among large numbers of consumers.The company insists on combining publicity with inspection to promote The Aquis Upcycle Date watch The watch box with sustainability concept
Air column bags have been replaced with honeycomb paper the implementation of a green philosophy. Kindly reminders are sent to
customers when they pick up goods to encourage them use their own
canvas bags or backpacks and to discourage misuse of environment-
friendly paper shopping bags. The company has set up a dedicated team Supporting Breitling’s Launch of Eco-Friendly Foldable and Reusable Watch Cases
to carry out occasional inspections on prohibited plastic items in the Hainan
area. Once identified items listed in the prohibited plastic item catalogue will The company supports Breitling in its use of eco-friendly foldable and
be sealed up. The sales process only adopts biodegradable recyclable and reusable watch cases crafted entirely from upcycled plastic bottles. This
environmentally friendly packaging materials. initiative demonstrates the brand’s efforts to reduce its environmental impact
and achieve sustainability. The compact and slim dimensions of these cases
We provide training and support delivering dedicated green packaging have reduced the average shipping distance by nearly 30% significantly
sessions to staff at logistics centres. This strengthens subordinate lowering transport-related carbon emissions. Breitling’s compact agile and
companies’ implementation capabilities and fosters the development of modular alternative is also leading innovation in watch industry packaging.sustainable packaging solutions. For instance the Haikou Meilan Airport It has been awarded the “Solar Impulse Efficient Solution” label by the
Duty-Free Shop of Hainan DF promoted minimalist packaging and refills Solar Impulse Foundation a label that recognises solutions with a positive
Open-top cartons have been replaced with tear-open designs to reduce
training staff in “right-sizing packaging” techniques. This prioritises reusing environmental and economic impact.adhesive tape usage
incoming delivery packaging for repackaging reducing material consumption
and transport emissions at source.
134 135China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Planet
Shopping Bag Management Saving FoodThe company rigorously implements China’s plastic restriction Cambodian Ministry of Environment’s regulations on plastic The company complies with the Anti-Food Waste Law and of the Chinese Communist Party on “advocating frugality and thriftpolicy treating plastic reduction as a critical initiative for the low- shopping bag dimensions replacing non-conforming products. implements the spirit of President Xi Jinping’s important instructions in the whole society”. We improve our employees’ awareness of
carbon transition and advancing comprehensive plastic pollution Kunming cdf utilises biodegradable shopping bags and FSC- and comments on “firmly combating extravagancy in foods” as saving food by taking actions during daily meals in staff canteens.control. It enforces a complete ban on non-compliant plastic certified paper carriers. well as the important requirements of the 20th National Congress
products strictly adheres to the prohibited items list and prohibits
procurement or use of plastic bags and tableware specified therein. In compliance with the Hainan Special Economic Zone Regulations
This prevents non-compliant plastic items from entering operational on Prohibiting Non-Degradable Disposable Plastic Products all
channels at source. Hainan subsidiaries exclusively use 100% biodegradable plastic Put up posters
bags. The Retail Operations Centre adheres to international advocating reducing
The company enhances awareness through in-store posters digital leftover food such aviation standards for duty-free packaging employing standard as “Clear Your Plate”
screen displays and staff engagement to educate customers sealed bags. Pursuing environmental efficiency and customer in the eye-catching
on plastic reduction. It encourages reduced plastic usage and convenience it maximises bag capacity by consolidating areas of canteens;
promotes eco-friendly alternatives like reusable shopping bags purchases into appropriately sized carriers thereby optimising
and water bottles fostering a “plastic-reduction” consumption cost-effectiveness.ethos. In 2025 the company provided more than 16.84 million
shopping bags meeting environmental protection requirements
and has provided over 77.37 million such bags over the past four
years effectively reducing the generation of non-degradable plastic
waste.Daily tracking of diner numbers The staff meal is Automated rice Set up a tableware Carry out anti-food
The company adheres to the use of recyclable and degradable enables dynamic meal portion in a buffet form to dispensers standardise recycling desk to waste awareness
green packaging and continuously develops and adopts adjustments. Small-portion dishes encourage staff to portions preventing discourage food activities.innovative eco-friendly packaging technologies such as reusable and pay-by-weight systems minimise only take the amount over-serving; waste and supervise
and biodegradable materials to promote sustainability and waste complemented by à la carte they need regular the effective
environmental protection. Packaging bags used by the company’s preparation of snacks and assorted menu refinements classification of
stores in Hainan are all made of biodegradable and environmentally whole-grain portions to diversify align with employee leftover food;
friendly materials. Cartons and gas columns used as filling materials offerings while reducing excess; preferences;
for e-commerce operations by CDFI are all made from recyclable
plastic bag
materials. CDFG (Cambodia) Limited strictly complies with the Degradable
Current Status of Packaging Material Usage:
Metrics Tier 2 metrics Unit 2025 2024
Total amount of packaging materials used by the company / Ton 659.38 505.23
Case study
Total amount of packaging materials used by the company in
/ Ton/millime CNY 0.017 0.009
unit operating income We Are the Clean Plate Champions
Paper Ton 467.50 404.13
In December 2025 the company headquarters’ staff canteen launched the “We Are the Clean Plate Champions” campaign against
Board Ton 0 0 food waste. This initiative championed
“civilised dining rigorous conservation waste reduction – cdf people in action”.Procurement quantity of packaging materials by category Plastic Ton 191.88 101.11
Glass Ton 0 0
Metal Ton 0 0
In 2025 > > > > > > > > > >
Procurement quantity of packaging materials that were Recyclable Ton 516.03 387.12
recyclable/non-recyclable Non-recyclable Ton 143.35 99.51 the total weight of food loss the total amount of food loss
and waste generated by the and waste used for alternative the total amount of and the intensity of food loss
Procurement quantity of packaging materials that were Reusable Ton 571.23 452.98 company was purposes was food discarded was and waste was
reusable/non-reusable Non-reusable Ton 88.15 45.40
Proportion of recyclable plastic
packaging % 100 / 24 tons 12 tons tons tons/personProcurement quantity of plastic packaging materials by 22 2 0.1
category Proportion of degradable plastic
packaging % 100 /
12 In 2025 the scope of the company’s food loss and waste statistics only covers Haikou International Duty-Free Shopping Complex.
136 137China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Appendix Term DefinitionThe 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)
make payment in duty-free shops or approved online sales windows where the tax-free policy is
Glossary of Terms Offshore duty-free policy refers to implemented and pick up goods from the island at designated areas of airports railway stations and
ports. The tax exemption policies for the island include customs duty import VAT and consumption
Term Definition tax
CTG DUTY-FREE the company our SASAC refers to The State-owned Assets Supervision and Administration Commission of the State Council
refers to China Tourism Group Duty Free Corporation Limited together with its affiliated companies
company we
CSRC refers to China Securities Regulatory Commission
ESG Report the Report this Report refers to The Environmental Social and Governance Report
SSE refers to Shanghai Stock Exchange
The reporting period the current year refers to From 1 January 2025 to 31 December 2025
HKEx refers to Stock Exchange of Hong Kong Limited
China Tourism Group refers to China Tourism Group Co. Ltd. Company Law refers to Company Law of the People’s Republic of China
CTS Holdings refers to China Travel Service (Holdings) Hong Kong Limited Securities Law refers to Securities Law of the People’s Republic of China
CDF Investment Development refers to CDF Investment Development Co. Ltd. Anti-money Laundering Law refers to Anti-money Laundering Law of the People’s Republic of China
Sanya Downtown Duty-Free Store refers to China Duty Free Group Sanya Downtown Duty Free Store Co. Ltd. Anti-Unfair Competition Law refers to Anti-Unfair Competition Law of the People’s Republic of China
Sunrise China refers to Sunrise Duty Free (China) Co. Ltd. Advertising Law refers to Advertising Law of the People’s Republic of China
Sunrise Shanghai refers to Sunrise Duty Free (Shanghai) Co. Ltd. Cybersecurity Law refers to Cybersecurity Law of the People’s Republic of China
Data Security Law refers to Data Security Law of the People's Republic of China
Hainan DF refers to Hainan Provincial Duty Free Co. Ltd.Personal Information Protection Law refers to Personal Information Protection Law of the People’s Republic of China
CDF International refers to China Duty Free International Limited
Anti-monopoly Law refers to Anti-monopoly Law of the People's Republic of China
CDFG (Cambodia) Limited refers to China Duty Free Group (Cambodia) Co. Ltd.Protection of Rights and Interests of
refers to Law of the People's Republic of China on the Protection of Rights and Interests of Consumers
Guangzhou Xinmian refers to Guangzhou Xinmian Duty Free Merchandise Co. Ltd. Consumers Law
CDFCS refers to China Duty Free Cruise Services Limited Product Quality Law refers to Product Quality Law of the People's Republic of China
Bidding law refers to Bidding Law of the People's Republic of China
Dalian cdf refers to Dalian Port China Duty Free Merchandise Co. Ltd.Implementation Regulations for the Law
Hangzhou cdf refers to CDFG Hangzhou Duty Free Merchandise Co. Ltd. refers to Implementation Regulations for the Law of the Tender Law of the People's Republic of Chinaof the Tender Law
Sanya Downtown Store refers to CDFG Sanya Downtown Duty-Free Store Co. Ltd. Labour Law refers to Labour Law of the People’s Republic of China
Haikou Meilan Airport Duty-Free Shop refers to Hainan Duty Free Haikou Meilan Airport Duty Free Store Co. Ltd. Labour Contract Law refers to Labour Contract Law of the People’s Republic of China
Shenyang cdf refers to CDFG Shenyang Duty Free Merchandise Trading Co. Ltd. Trade Union Law refers to Trade Union Law of the People’s Republic of China
Work Safety Law refers to Work Safety Law of the People’s Republic of China
Hohhot cdf refers to Hohhot China Duty Free Merchandise Co. Ltd.Law on the Prevention & Control of
Wuhan cdf refers to CDFG (Wuhan) Airport Duty Free Merchandise Co. Ltd. refers to Law of People’s Republic of China on the Prevention & Control of Occupational DiseasesOccupational Diseases
Chengdu cdf refers to CDFG Chengdu Airport Duty Free Merchandise Co. Ltd. Fire Control Law refers to Fire Control Law of the People's Republic of China
Shenzhen Supply Chain refers to China Duty Free (Shenzhen) Supply Chain Technology Co. Ltd. Environmental Protection Law refers to Environmental Protection Law of the People’s Republic of China
Prevention and Control of Air Pollution
CDFG Trading refers to CDFG (Beijing) Trading Co. Ltd. refers to Law of the People's Republic of China on Prevention and Control of Air Pollution
Law
CDFG Digital Technology refers to CDFG (Hainan) Digital Technology Co. Ltd. Prevention and Control of Water
refers to Law of the People's Republic of China on Prevention and Control of Water Pollution
Pollution Law
Imported goods that are exempt from customs duties value added tax (VAT) and consumption tax on
Duty-free merchandise refers to imports and domestically produced goods that are subject to tax rebates (VAT and consumption tax) Prevention and Control of Environmental refers to Prevention and Control of Environmental Pollution Caused by Solid Wastes
that are sold in duty-free shops Pollution Caused by Solid Wastes Law
With the approval of the General Administration of Customs business units set up sales sites and Energy Conservation Law refers to Energy Conservation Law of the People’s Republic of China
supervised warehouses for storing duty-free commodities in places approved by the State Council
Duty-free store refers to
of the people’s Republic of China or its authorized departments to sell duty-free commodities to Anti-food Waste Law refers to Anti-food Waste Law of the People’s Republic of China
specified sales targets
138 139China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
ESG Metrics Metrics Tier 2 metrics Unit 2025
Climate Change
Environmental Performance Metric
Total GHG emissions Scope 1 and Scope 22 tCO2e 27530
Metrics Tier 2 metrics Unit 2025
Including GHG emissions (scope 1)3 tCO2e 2940
Resource usage
GHG emissions (Scope 2)4 tCO2e 24590
Electricity1 MWh 81441.39
GHG emissions intensity for Scope 1 and 2 tCO2e/m
20.04
Natural Gas1 m3 651573
GHG emissions (Scope 3)5 tCO2e 4740
Diesel1 Litre 132858
Including Category 66 tCO2e 4680
Gasoline1 Litre 152528 Category 77 tCO2e 60
Comprehensive energy consumption tce 11206
tCO2e/RMB1 million of
GHG emissions intensity for Scope 3 (Categories 6 and 7) 0.09
Comprehensive energy intensity tce/m2 0.0156 revenue
Water consumption m3 565780 Emission
Water consumption intensity m3/m2 0.79 Tuner kg 35
Total amount of packaging materials used by the company Ton 659.38 Waste Selenium drum kg 18
Total amount of packaging materials used by the company in unit operating income Ton/RMB1000000 0.017 Ink ribbon kg 4
Paper Ton 467.50
Board Ton –
Procurement quantity of packaging materials by category Plastic Ton 191.88
Glass Ton –
Metal Ton –
Procurement quantity of packaging materials that were recyclable/ Recyclable Ton 516.03
non-recyclable Non-recyclable Ton 143.35
Procurement quantity of packaging materials that were reusable/ Reusable Ton 571.23
non-reusable Non-reusable Ton 88.15
Proportion of recyclable plastic
%100
packaging
Procurement quantity of plastic packaging materials by category
Proportion of degradable plastic
%100
packaging
2 The statistic scope of GHG emissions includes the building of company’s headquarters Haikou International Duty-Free Shopping Complex Sanya
International Duty-Free Shopping Complex Sanya logistics base Sunrise Shanghai and Sunrise China which have already covered the majority of the
company’s operating area and revenue. The company will gradually expand the statistical scope in the following years.
3 Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determined
with reference to * China Energy Statistical Yearbook * IPCC 2006.
4 Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which is determined with
reference to the Notice on Reporting and Verification Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025 issued by
the Ministry of Ecology and Environment of China.
5 In addition to the already included Category 6 and Category 7 we are currently reviewing Scope 3 GHG emissions across other categories and will
disclose them when conditions permit.
6 Scope 3 Category 6 GHG emissions (Business Travel) covers emissions from employee business trips via air travel high-speed rail ride-hailing/taxi
services and hotel stays. These emissions are calculated using the spend-based method with emission factors referenced from the China Products
Carbon Footprint Factors Database.
1 The statistic scope of natural gas electricity diesel gasoline and GHG emissions includes the building of company’s headquarters Haikou International 7 Scope 3 Category 7 GHG emissions (Employee Commuting) only includes GHG emissions generated by employees commuting via shuttle buses within
Duty-Free Shopping Complex Sanya International Duty-Free Shopping Complex Sanya logistics base Sunrise Shanghai and Sunrise China which the Hainan region. These emissions are calculated using the activity data method with emission factors referenced from the following sources: the UK
have already covered the majority of the company’s operating area and revenue. The company will gradually expand the statistical scope in the following Department for Energy Security and Net Zero 2025 edition the Announcement on the Release of 2024 Electricity Carbon Footprint Factor Data and the
years. Announcement on the Release of 2022 Electricity Carbon Dioxide Emission Factors issued by China’s Ministry of Ecology and Environment.
140 141China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Social Performance Metrics Metrics Tier 2 metrics Unit 2025
Male Person 569
Metrics Tier 2 metrics Unit 2025 The number of new employees by gender
Female Person 998
Hire
Senior managerial roles Person 2
Total number of employees Person 14485
The number of new employees by employee category Middle managerial roles Person 16
The number of ethnic minority employees Person 1221
General employees Person 1549
The percentage of ethnic minority employees % 8.43
Over 60 Person 0
The percentage of ethnic minority employees in the management % 5.45
50-60 Person 40
The number of foreign employees Person 470
40-49 Person 152
The percentage of foreign employees % 3.24 The number of new employees by age group
30-39 Person 498
The percentage of foreign employees in the management % 0.91
22-29 Person 719
The number of physically challenged employees Person 120
Below 22 Person 158
Females in the Board of Directors % 25
Han ethnic group Person 1368
Females in the management % 38.18
Chinese ethnic minorities Person 106
Females in the senior managerial roles % 25 The number of new employees by ethnicity
Chinese Hong Kong SAR
Females in the middle managerial roles % 39.22 Macau SAR Taiwan region Person 93
Share of women in management positions in revenue-generating functions (e.g. sales) as % of all such and overseas
%37.08
managers Chinese nationality Person 1474
The number of new employees by nationality
Total number of new employees Person 1567 Foreign nationality Person 93
Internal hire rate % 54.33 Male % 19.87
Employee turnover rate by gender
Employee productivity CNY/Person 352679 Female % 14.89
Male Person 5817 Senior managerial roles % 0
The number of employees by gender
Female Person 8668 Employee turnover rate by category Middle managerial roles % 0.98
Senior managerial roles Person 8 General employees % 17.10
The number of employees by employee category Middle managerial roles Person 102 Over 60 % 45.50
General employees Person 14375 50-60 % 17.94
Over 60 Person 6 40-49 % 13.04
Employee turnover rate by age group
50-60 Person 407 30-39 % 14.93
40-49 Person 1801 22-29 % 21.51
The number of employees by age group
30-39 Person 6616 Below 22 % 11.27
22-29 Person 5277 Chinese Mainland % 17.15
Below 22 Person 378 Chinese Hong Kong SAR
Employee turnover rate by geographical region % 17.98
North China Person 1949 Macau SAR and Taiwan region
East China Person 2223 Overseas % 18.54
South China Person 8221
Central China Person 55
Northwest China Person 108
The number of employees by region
Southwest China Person 421
Northeast China Person 195
Chinese Hong Kong SAR
Person 812
Macau SAR and Taiwan region
Overseas Person 501
142 143China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Metrics Tier 2 metrics Unit 2025 Metrics Tier 2 metrics Unit 2025
Health and Safety Supply Chain Management
The coverage of work-related injury insurance % 100 Total number of brand partners Number 760
The total amount of work-related injury insurance expenses CNY10000 53.02 Chinese Mainland Number 281
Total expenses in operations safety CNY10000 3714 Chinese Hong Kong SAR
Number of brand partners by geographical region Number 207
Macau SAR and Taiwan region
Safety trainings Session 1385
Overseas Number 272
Safety trainings participants 10000 People 7.54
Total number of non-brand suppliers Number 1642
Employee Person 0
Work-related fatalities Chinese Mainland Number 1512
Contractors Person 0
Chinese Hong Kong SAR
The fatality rate of the company’s employees due to work-related injuries8 % 0 Number of non-brand suppliers by geographical region Number 95
Macau SAR and Taiwan region
Total number of work-related injury cases Case 0
Overseas Number 35
Employee Day 0
Number of working days lost due to work-related injury Total number of Level I
Contractors Day 0 Classification of non-brand suppliers Number 170suppliers
Employee % 0 Supply Chain Security
Lost-time injury frequency rate (per one million hours worked)9 (LTIFR)
Contractors % 0 Major risk incidents occurring in supply chain Cases 0
Training and Development Suppliers involved in major risk incidents along the supply chain Number of suppliers 0
The total expenditure of employee training and development CNY CNY 10.53 million Individuals involved in major risk incidents along the supply chain. Person 0
Average cost of training and development per full-time employee CNY/Person 726.87 Product liability
Percentage of employees trained % 100 Percentage of the total number of products sold or shipped that need to
%0
Male % 100 be recalled for safety and wellness reasons
Percentage of employees trained by gender
Female % 100 Total complaints received Number 20281
Senior management % 100 Average hours used to handle each complaint Hour 92
Percentage of employees trained by category Middle management % 100 As at the end of 2025 complaints handled as a proportion of total % 99.9
complaints received during the year
General employee % 100
Intellectual property rights
Total training hours Hour 788500
Number of IPRs such as trademarks and copyrights at the end of 2025 Item 108
Average training hours completed per employee Hour 55.07
Number of valid patents Item 19
Male Hour 53.42
Average training hours completed per employee by gender Community investment
Female Hour 56.71
Total expenditure on rural revitalisation Free assistance funds CNY10000 1688
Senior management10 Hour 138.22
Number of various assistance projects implemented Number 16
Average training hours completed per employee by category Middle management Hour 114.23
Total amount of assist in introducing assistance funds CNY10000 1005
General employee Hour 53.74
Number of people trained Person 1690
Chinese Mainland Hour 57.81
Chinese Hong Kong SAR
Average training hours completed per employee by region Hour 20.79 Governance Performance Metrics
Macau SAR and Taiwan region
Overseas Hour 20.10 Metrics Tier 2 metrics Unit 2025
Anti-corruption
Sessions Time 7
Anti-corruption trainings for employees
Coverage % 100
Sessions Time 3
8 Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers * 100%; Anti-corruption trainings for management Coverage % 100
9 Lost-time injury frequency rate (per one million hours worked) (LTIFR) = number of lost time injuries/total number of man-hours worked in the accounting
period × 1000000 Duration Hour 3
10 As far as the training courses organised by the company are concerned there is no significant difference for employees at different categories; however Sessions Time 1
the senior management participated in more intense trainings subject to the requirement on the training hours in the Regulations on the Education and Anti-corruption trainings for director including independent director
Coverage % 100
Training of Cadres issued by the CPC Central Committee.
144 145China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Index ESG Metrics System for ESG Reports of Listed Companies Controlled by Central State-owned Enterprises Index
Shanghai Stock Exchange Sustainability Report (Trial) Index Disclosure of content Relevant section
Basic information of the Company and the Report Report Preparation Notes
Number Topic Relevant section in this report
ESG governance Robust Governance System for Long-term Stable Operations
1 Climate change tackling Addressing Climate Change to Protect the Environment
ESG risk and opportunities Enhancing Risk Management and Internal Controls and Upholding Business Ethics
2 Pollutant discharge No significant relevance1
Stakeholder engagement Robust Governance System for Long-term Stable Operations
3 Waste disposal Environmental Compliance Management
Materiality assessment Robust Governance System for Long-term Stable Operations
Green and Low-Carbon Operations for a Better Life
4 Ecosystem and biodiversity protection Green and Low-Carbon Operations for a Better Life2
Disclosure of content
5 Environmental compliance management Green and Low-Carbon Operations for a Better Life Location
Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics
6 Energy usage Green and Low-Carbon Operations for a Better Life
Environmental Aspect Metrics
7 Usage of water resources Environmental Compliance Management
Green and Low-Carbon Operations for a Better Life Fresh water consumption Green and Low-Carbon Operations for a Better Life
8 Circular economy Green and Low-Carbon Operations for a Better Life Water Recycled water consumption Green and Low-Carbon Operations for a Better Life
9 Rural revitalization Engaging in Charity Initiatives to Act as a Responsible Corporate Intensity of water consumption Green and Low-Carbon Operations for a Better Life
10 Contributions to the society Continuing to Expand the Company’s Overseas Presence and Distribution Network as Resource Fossil fuel consumption Green and Low-Carbon Operations for a Better Life
a Global Travel Retailer for Selected Brands Consumption Energy Total energy consumption Green and Low-Carbon Operations for a Better Life
Engaging in Charity Initiatives to Act as a Responsible Corporate
Energy consumption intensity Green and Low-Carbon Operations for a Better Life
11 Innovation-driven Upholding Original Beliefs and Mission to Ensure Trusted Business Operations
Operational Safety and Physical and Mental Health Packaging material usage Green and Low-Carbon Operations for a Better LifePackaging materials
Enhancing Our Comprehensive Training System to Support Employee Development Packaging material lightweight and reduction Green and Low-Carbon Operations for a Better Life
Green and Low-Carbon Operations for a Better Life
Wastewater discharge compliance Green and Low-Carbon Operations for a Better Life
12 Ethics of science and technology No significant relevance3 Effluents Wastewater management and reduction
Green and Low-Carbon Operations for a Better Life
13 Supply chain security Robust Green and Intelligent Supply Chain measures
Pollution Control
14 Equal treatment to small and medium-sized enterprises No significant relevance Exhausts Exhaust emission compliance Green and Low-Carbon Operations for a Better Life
15 Safety and quality of products and services Upholding Original Beliefs and Mission to Ensure Trusted Business Operations Legal compliance of solid waste disposal Green and Low-Carbon Operations for a Better Life
Solid waste
16 Data security and customer privacy protection Enhancing Information Security and Implementing Privacy Protection General industrial solid waste management Green and Low-Carbon Operations for a Better Life
17 Employees Employee Rights and Promoting Their Interests Sources and types of GHGs Green and Low-Carbon Operations for a Better Life
Operational Safety and Physical and Mental Health
Addressing Climate Change to Protect the Environment
Enhancing Our Comprehensive Training System to Support Employee Development GHG emissions management
Green and Low-Carbon Operations for a Better Life
18 Due diligence Risk Management4 Greenhouse gas emission
Scope 1 GHG emissions Green and Low-Carbon Operations for a Better Life
19 Communications with stakeholders Robust Governance System for Long-term Stable Operations
Climate Change Scope 2 GHG emissions Green and Low-Carbon Operations for a Better Life
20 Anti-commercial bribery and anti-corruption Enhancing Risk Management and Internal Controls and Upholding Business Ethics
GHG emissions intensity Green and Low-Carbon Operations for a Better Life
21 Anti-unfair competition Enhancing Risk Management and Internal Controls and Upholding Business Ethics
Emission reduction Addressing Climate Change to Protect the Environment
GHG mitigation management
22 Packaging material management Green and Low-Carbon Operations for a Better Life management Green and Low-Carbon Operations for a Better Life
23 Intellectual property protection Enhancing Risk Management and Internal Controls and Upholding Business Ethics Climate risk management Climate risk management Green and Low-Carbon Operations for a Better Life
24 Excellent service experience Upholding Original Beliefs and Mission to Ensure Trusted Business Operations Impacts of activities
Impacts of activities products and services on
Biodiversity products and services on Green and Low-Carbon Operations for a Better Life
25 Collaborating with brand partners to promote Green and Low-Carbon Operations for a Better Life biodiversity
biodiversity
environmental protection
Notes:
1. The topics of “pollutant discharge” and “ethics of science and technology” have relatively low relevance with the company’s core business and are
neither of financial materiality nor of impact materiality.
2. The topic of “ecosystem and biodiversity protection” has relatively low relevance with the company’s core business and is neither of financial materiality
nor of impact materiality. However it has also been taken into consideration for project development and construction and disclosed in the report.
3. The company’s accounts payable (including bills payable) balance as at the end of 2025 did not exceed RMB 30 billion or account for more than 50% of
total assets thereby not meeting the disclosure threshold for “Equal treatment to small and medium-sized enterprises.”
4. Due diligence details are disclosed in the relevant chapters.
146 147China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Disclosure of content Disclosure of content
Location Location
Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics
Low-carbon development Upholding Original Beliefs and Mission to Ensure Trusted
Low-carbon development target and strategic Production Standard Management Policies and
target and strategic Addressing Climate Change to Protect the Environment Business Operations
measures Measures
measures Operational Safety and Physical and Mental Health
Water utilisation management Green and Low-Carbon Operations for a Better Life Upholding Original Beliefs and Mission to Ensure Trusted
Quality Management
Resource management
Material usage management Green and Low-Carbon Operations for a Better Life Product Safety and Quality
Business Operations
measures
Upholding Original Beliefs and Mission to Ensure Trusted
Energy use and conservation management Green and Low-Carbon Operations for a Better Life Product Recall and Withdrawal
Business Operations
Addressing Climate Change to Protect the Environment
Green technologies and recycling Upholding Original Beliefs and Mission to Ensure Trusted
Green and Low-Carbon Operations for a Better Life Negative Events Related to Products or Services
Resource and Business Operations
Green building Renovation Green and Low-Carbon Operations for a Better Life
Environmental Product Upholding Original Beliefs and Mission to Ensure Trusted
Management Green initiatives and Addressing Climate Change to Protect the Environment
Customer Satisfaction
Green office and operations and Service Business Operations
System Measures measures Green and Low-Carbon Operations for a Better Life Management Customer Service & Upholding Original Beliefs and Mission to Ensure Trusted
Green procurement and green supply chain Customer Complaints and Handling
Robust Green and Intelligent Supply Chain Advocacy Business Operations
management
Enhancing Risk Management and Internal Controls and
Environmental public welfare activities Engaging in Good Initiatives to Act as a Responsible Corporate Customer Information and Privacy Protection Upholding Business Ethics
Green and low-carbon
Environmental management system certification Green and Low-Carbon Operations for a Better Life Enhancing Risk Management and Internal Controls and
certification R&D and Innovation Management System Upholding Business Ethics
Environmental Compliance Management
Environmental legal Enhancing Risk Management and Internal Controls and
Environmental emergency response plan Operational Safety and Physical and Mental Health R&D Innovation Achievements
compliance Upholding Business Ethics
Addressing Climate Change to Protect the Environment
Enhancing Risk Management and Internal Controls and
Social Aspect Metrics Intellectual Property Protection Upholding Business Ethics
Corporate Recruitment Policy and Implementation Employee Rights and Promoting Their Interests Supplier Selection and Management Robust Green and Intelligent Supply Chain
Employee Recruitment And Management of Suppliers
Employee Structure Employee Rights and Promoting Their Interests
Employment Number and Distribution of Suppliers Robust Green and Intelligent Supply Chain
Supply Chain
Avoiding Child Labor or Forced Labor Employee Rights and Promoting Their Interests
Security and Supply Chain Management Policies and Robust Green and Intelligent Supply Chain
Compensation Philosophy and Policy Employee Rights and Promoting Their Interests Management Measures
Supply Chain Management
Employee Compensation Working Hours and Rest Periods Employee Rights and Promoting Their Interests
Supply Chain Security Assurance and Emergency
Robust Green and Intelligent Supply Chain
Plan
and Benefits Compensation and Benefits Security Employee Rights and Promoting Their Interests
Taxes payment Tax Payment Situation Refer to the Annual Report or other corporate documents
Employee Democratic Management Employee Rights and Promoting Their Interests
Policies and Measures for Participating in Local
Occupational Health and Safety Management for Engaging in Good Initiatives to Act as a Responsible Corporate
Operational Safety and Physical and Mental Health Community building Community Construction
Employees
Contribution and Impact on the Local Community Engaging in Good Initiatives to Act as a Responsible Corporate
Employee Safety Risk Prevention and Control Operational Safety and Physical and Mental Health
Employee rights Policies and Measures for Participating in Social
Employee Health and Safety Response to Safety Accidents and Work-related Engaging in Good Initiatives to Act as a Responsible Corporate
Operational Safety and Physical and Mental Health Charity Activities
Injuries
Investment and Effectiveness of Participating in
Employee Rights and Promoting Their Interests Social welfare activities Engaging in Good Initiatives to Act as a Responsible Corporate
Employee Care and Assistance Social Charity Activities
Operational Safety and Physical and Mental Health
Upholding Original Beliefs and Mission to Ensure Trusted
Enhancing Our Comprehensive Training System to Support National strategic Construction of Accessible EnvironmentEmployee Motivation and Promotion Policy Business Operations
Employee Development response
Upholding Original Beliefs and Mission to Ensure Trusted
Employee Development and Enhancing Our Comprehensive Training System to Support Industrial Transformation
Employee Education and Training Business Operations
Training Employee Development
Rural Revitalisation and Regional Coordinated
Career Planning and Position Change Support for Enhancing Our Comprehensive Training System to Support Engaging in Good Initiatives to Act as a Responsible CorporateDevelopment
Employees Employee Development
National strategic response Continuing to Expand the Company’s Overseas Presence and Employee Satisfaction Employee Turnover Employee Rights and Promoting Their Interests Belt and Road Initiative and Overseas Fulfillment Distribution Network as a Global Travel Retailer for Selected
of Responsibilities
Brands
Upholding Original Beliefs and Mission to Ensure Trusted
Industry Features and Other Social Responsibility
Business Operations
Fulfillment
Engaging in Good Initiatives to Act as a Responsible Corporate
148 149China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Disclosure of content HKEX Appendix C2 Environmental Social and Governance Reporting Code Index
Location
Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics
Aspect Content Report Content
Governance Aspect Metrics
Part B: Mandatory Disclosure Requirements
Robust Governance System for Long-term Stable Operations
Governance Strategy Formulation Enhancing Risk Management and Internal Controls and A statement from the board Statement of the Board of Directors
Upholding Business Ethics
Reporting Principles Report Preparation Notes
Robust Governance System for Long-term Stable Operations
Governance Strategies and Governance Strategy Supervision Process Enhancing Risk Management and Internal Controls and Reporting Boundary Report Preparation Notes
Processes Upholding Business Ethics
Part C: “Comply or explain” Provisions
Robust Governance System for Long-term Stable Operations
Governance Strategy Approval and Review
Enhancing Risk Management and Internal Controls and
Process A. Environmental
Upholding Business Ethics
Governance Aspect A1: EmissionsParty Building Leadership Robust Governance System for Long-term Stable Operations
Strategy and
Organizational Ownership Responsibilities Robust Governance System for Long-term Stable Operations General Disclosure
Structure Organisation Structure and Functions of the Information on:
Board of Directors Supervisory Board and Robust Governance System for Long-term Stable Operations (a) the policies; and
Organisational composition A1 Environmental Compliance Management
Management (b) compliance with relevant laws and regulations that have a significant impact on
and functions
Appointment Procedures and Composition of the issuer relating to air and greenhouse gas emissions discharges into water
the Board of Directors Supervisory Board and Refer to the Annual Report or other corporate documents and land and generation of hazardous and non-hazardous waste.Management
Environmental Compliance Management
Compensation Plan for Directors and Supervisors Refer to the Annual Report or other corporate documents KPI A1.1 The types of emissions and respective emissions data.ESG Metrics
Compensation management Transparency of Board Compensation Refer to the Annual Report or other corporate documents
Total hazardous waste produced (in tonnes) and where appropriate intensity (e.g. Environmental Compliance Management
Reasonableness of Management Compensation Refer to the Annual Report or other corporate documents KPI A1.3
per unit of production volume per facility). ESG Metrics
Enhancing Risk Management and Internal Controls and
Internal control Internal Audit
Upholding Business Ethics Total non-hazardous waste produced (in tonnes) and where appropriate intensity
KPI A1.4 Environmental Compliance Management
Standardize Enhancing Risk Management and Internal Controls and (e.g. per unit of production volume per facility).Integrity Construction System Norms
governance Upholding Business Ethics
Integrity in Construction KPI A1.5 Description of emission target(s) set and steps taken to achieve them. Environmental Compliance Management
Enhancing Risk Management and Internal Controls and
Effectiveness of Integrity Construction Measures
Upholding Business Ethics Description of how hazardous and nonhazardous wastes are handled and a
KPI A1.6 Environmental Compliance Management
Investor Relations Management Strategy Robust Governance System for Long-term Stable Operations description of reduction target(s) set and steps taken to achieve them.Investor Relationship Investor Communication Robust Governance System for Long-term Stable Operations Aspect A2: Use of Resources
Management Construction of Investor Relations Management
Investor Relations Robust Governance System for Long-term Stable Operations
General Disclosure
Department
Management A2 Policies on the efficient use of resources including energy water and other raw Environmental Compliance Management
General Meeting of Shareholders Situation Refer to the Annual Report or other corporate documents
and Shareholder materials.Rights Shareholder Communication Situation Refer to the Annual Report or other corporate documentsShareholders’ equity Direct and/or indirect energy consumption by type (e.g. electricity gas or oil) in
Shareholders’ Right to Know and Participate in KPI A2.1 Environmental Compliance Management
Robust Governance System for Long-term Stable Operations total (kWh in ’000s) and intensity (e.g. per unit of production volume per facility).Decision-making
Creditors’ rights and benefits Credit Status Refer to the Annual Report or other corporate documents Water consumption in total and intensity (e.g. per unit of production volume per KPI A2.2 Environmental Compliance Management
Information disclosure Financial Information Disclosure Refer to the Annual Report or other corporate documents
facility).Transparency system Non-financial Information Disclosure 2025 Environmental Social and Governance Report KPI A2.3 Description of energy use efficiency target(s) set and steps taken to achieve them. Environmental Compliance Management
of information
disclosure Quality of information Regular Supervision Audit and Evaluation of All Enhancing Risk Management and Internal Controls and Description of whether there is any issue in sourcing water that is fit for purpose
disclosure Disclosed Information Upholding Business Ethics KPI A2.4 Environmental Compliance Management
water efficiency target(s) set and steps taken to achieve them.Robust Governance System for Long-term Stable Operations
Compliance Management System Enhancing Risk Management and Internal Controls and Total packaging material used for finished products (in tonnes) and if applicable KPI A2.5 Green and Low-Carbon Operations for a Better Life
Upholding Business Ethics with reference to per unit produced.Robust Governance System for Long-term Stable Operations Aspect A3: The Environment and Natural Resources
Compliance Construction of Compliance System Enhancing Risk Management and Internal Controls and
Upholding Business Ethics Environmental Compliance Management
General Disclosure
Robust Governance System for Long-term Stable Operations Addressing Climate Change to Protect the
A3 Policies on minimising the issuer’s significant impacts on the environment and
Specific Process of Compliance Review Enhancing Risk Management and Internal Controls and Environment
Compliance Upholding Business Ethics natural resources.and Risk Green and Low-Carbon Operations for a Better Life
Management Robust Governance System for Long-term Stable Operations
Risk Identification and Early Warning Enhancing Risk Management and Internal Controls and Environmental Compliance ManagementDescription of the significant impacts of activities on the environment and natural
Upholding Business Ethics KPI A3.1 Addressing Climate Change to Protect the resources and the actions taken to manage them.Robust Governance System for Long-term Stable Operations Environment
Risk management Risk Control and Tracking Enhancing Risk Management and Internal Controls and
Upholding Business Ethics
Robust Governance System for Long-term Stable Operations
Risk Reporting and Management Enhancing Risk Management and Internal Controls and
Upholding Business Ethics
150 151China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Aspect Content Report Content Aspect Content Report Content
B. Social Operating Practices
Employment and Labour Practices Aspect B5: Supply Chain Management
Aspect B1: Employment General Disclosure
B5 Robust Green and Intelligent Supply Chain
Policies on managing environmental and social risks of the supply chain.General Disclosure Information on:
(a) the policies; and KPI B5.1 Number of suppliers by geographical region. Robust Green and Intelligent Supply Chain
B1 Employee Rights and Promoting Their Interests
(b) compliance with relevant laws and regulations that have a significant impact on
Description of practices relating to engaging suppliers number of suppliers Upholding Original Beliefs and Mission to Ensure
the issuer
KPI B5.2 where the practices are being implemented and how they are implemented and Trusted Business Operations
Total workforce by gender employment type (for example full- or part-time) age monitored. Robust Green and Intelligent Supply Chain
KPI B1.1 Employee Rights and Promoting Their Interests
group and geographical region.Description of practices used to identify environmental and social risks along the
KPI B5.3 Robust Green and Intelligent Supply Chain
KPI B1.2 Employee turnover rate by gender age group and geographical region. Employee Rights and Promoting Their Interests supply chain and how they are implemented and monitored.Aspect B2: Health and Safety Description of practices used to promote environmentally preferable products and Robust Green and Intelligent Supply Chain
KPI B5.4
services when selecting suppliers and how they are implemented and monitored. Green and Low-Carbon Operations for a Better Life
General Disclosure Information on:
(a) the policies; and Aspect B6: Product Responsibility
B2 (b) compliance with relevant laws and regulations that have a significant impact on Operational Safety and Physical and Mental Health
General Disclosure
the issuer relating to providing a safe
Information on:
working environment and protecting employees from occupational hazards.(a) the policies; and Upholding Original Beliefs and Mission to Ensure
KPI B6
Number and rate of work-related fatalities occurred in each of the past three years (b) c ompliance with relevant laws and regulations that have a significant impact on Trusted Business Operations
KPI B2.1 Operational Safety and Physical and Mental Health
including the reporting year. the issuer relating to health and safety advertising labelling and privacy matters
relating to products and services provided and methods of redress.KPI B2.2 Lost days due to work injury. Operational Safety and Physical and Mental Health
Percentage of total products sold or shipped subject to recalls for safety and health Upholding Original Beliefs and Mission to Ensure
Description of occupational health and safety measures adopted and how they KPI B6.1
KPI B2.3 Operational Safety and Physical and Mental Health reasons. Trusted Business Operations
are implemented and monitored.Number of products and service related complaints received and how they are Upholding Original Beliefs and Mission to Ensure
Aspect B3: Development and Training KPI B6.2
dealt with. Trusted Business Operations
Upholding Original Beliefs and Mission to Ensure
Description of practices relating to observing and protecting intellectual property Enhancing Risk Management and Internal Controls
General Disclosure Trusted Business Operations KPI B6.3
rights. and Upholding Business Ethics
B3 Policies on improving employees’ knowledge and skills for discharging duties at Enhancing Our Comprehensive Training System to
work. Description of training activities. Support Employee Development Upholding Original Beliefs and Mission to Ensure
KPI B6.4 Description of quality assurance process and recall procedures.Operational Safety and Physical and Mental Health Trusted Business Operations
The percentage of employees trained by gender and employee category (e.g. Description of consumer data protection and privacy policies and how they are Enhancing Risk Management and Internal Controls
KPI B3.1 Employee Rights and Promoting Their Interests KPI B6.5
senior management middle management). implemented and monitored. and Upholding Business Ethics
The average training hours completed per employee by gender and employee Enhancing Our Comprehensive Training System to Aspect B7: Anti-corruption
KPI B3.2
category. Support Employee Development
General Disclosure
Aspect B4: Labour Standards Information on:
Enhancing Risk Management and Internal Controls
B7 (a) the policies; and
General Disclosure and Upholding Business Ethics
(b) compliance with relevant laws and regulations that have a significant impact on
Information on:
the issuer relating to bribery extortion fraud and money laundering.(a) the policies; and
B4 Employee Rights and Promoting Their Interests
(b) compliance with relevant laws and regulations that have a significant impact on Number of concluded legal cases regarding corrupt practices brought against the Enhancing Risk Management and Internal Controls
KPI B7.1
the issuer relating to preventing child issuer or its employees during the reporting period and the outcomes of the cases. and Upholding Business Ethics
and forced labour
Description of preventive measures and whistle-blowing procedures and how they Enhancing Risk Management and Internal Controls
KPI B7.2
Description of measures t o review employment practices to avoid child and forced are implemented and monitored. and Upholding Business Ethics
KPI B4.1 Employee Rights and Promoting Their Interests
labour.Enhancing Risk Management and Internal Controls
KPI B7.3 Description of anti-corruption training provided to directors and staff.KPI B4.2 Description of steps taken to eliminate such practices when discovered. Employee Rights and Promoting Their Interests and Upholding Business Ethics
Community
Aspect B8: Community Investment
General Disclosure
Policies on community engagement to understand the needs of the communities Engaging in Good Initiatives to Act as a Responsible
B8
where the issuer operates and to ensure its activities take into consideration the Corporate
communities’ interests.Focus areas of contribution (e.g. education environmental concerns labour needs Engaging in Good Initiatives to Act as a Responsible
KPI B8.1
health culture sport). Corporate
152 153China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
Aspect Content Report Content IFRS Sustainability Disclosure Standards – Index of Industry-based Disclosure Requirements
Engaging in Good Initiatives to Act as a Responsible
KPI B8.2 Resources contributed (e.g. money or time) to the focus area.Corporate Topics Metrics Unit 2025
Part D: Climate-related Disclosures Total energy consumed ton of standard coal Table of Environment KPIs
Energy Management in Retail
The governance body(s) responsible for oversight of climate-related risks and Addressing Climate Change to Protect the Percentage grid electricity % 89%& Distribution
opportunities Environment Percentage renewable % Continuous improvement on statistic
(I) Governance
Management’s role in the governance processes controls and procedures used to Addressing Climate Change to Protect the
monitor manage and oversee climate-related risks and opportunities Environment Activity Metric Metrics Unit 2025
Addressing Climate Change to Protect the
Climate-related risks and opportunities Retail locations Number Company overview
Environment Number of
Distribution centres Number 20
Addressing Climate Change to Protect the
Business model and value chain
Environment Retail space Square metres (m2) Continuous improvement on statistic
Total area
(II) Strategy
Strategy and decision-making Note 1 Distribution centres Square metres (m2) Robust Green and Intelligent Supply Chain
Financial position financial performance and cash flows Note 2
GRI Standards Index
Addressing Climate Change to Protect the
Climate resilience
Environment
GRI Standard Disclosure Location
The processes and related policies it uses to identify assess prioritise and monitor
climate-related risks GRI 1: Foundation 2021
The processes the issuer uses to identify assess prioritise and monitor climate- Report foundation including GRI content index and instructions Report Preparation Notes
(III) Risk Addressing Climate Change to Protect the 1 Foundation 2021
related opportunities for use etc GRI Standards Index
Management Environment
The extent to which and how the processes for identifying assessing prioritising GRI 2 General Disclosures 2021
and monitoring climate-related risks and opportunities are integrated into and The organization and its reporting practices
inform the issuer’s overall risk management process
2-1 Organizational details Report Preparation Notes
Addressing Climate Change to Protect the
Greenhouse gas emissions 2-2 Entities included in the organization’s sustainability reporting Report Preparation Notes
Environment
2-3 Reporting period frequency and contact point Report Preparation Notes
Addressing Climate Change to Protect the Environment
Climate-related transition risks
Note 3 2-4 Restatements of information No relevant incidents during the reporting period.Addressing Climate Change to Protect the Environment 2-5 External assurance Need further improvement
Climate-related physical risks
Note 3
Activities and workers
Addressing Climate Change to Protect the Environment
(IV) Metrics and Climate-related opportunities 2-6 Activities value chain and other business relationships Company Overview
Note 3
Targets
Employee Rights and Promoting Their Interests
Capital deployment Note 4
Operational Safety and Physical and Mental Health
2-7 Employees
Internal carbon prices Note 4 Enhancing Our Comprehensive Training System to Support
Employee Development
Remuneration Note 4
2-8 Workers who are not employees Operational Safety and Physical and Mental Health
IFRS Sustainability Disclosure Standards – Index of
Industry-based metrics
Industry-based Disclosure Requirements
Climate-related targets Note 4
Note 1: The company has identified the preliminary impacts of climate-related risks and opportunities and implemented corresponding mitigation measures.However a formal transition plan has not yet been developed. This will be initiated when conditions permit and subsequently disclosed.Note 2: The company has conducted a preliminary qualitative assessment of the financial impacts of climate change. Given the rapid growth of online
operations in recent years which may offset declines in the offline business affected by climate change the company has not yet conducted
quantitative financial impact calculations. This will be initiated when conditions permit and subsequently disclosed.Note 3: The company has identified preliminary climate-related physical risks transition risks and opportunities. Given the rapid growth of online operations in
recent years which may offset declines in the offline business affected by climate change the company has not yet conducted separate calculations
for the amount or percentage of assets or business activities particularly vulnerable to these climate-related factors. This will be initiated when
conditions permit and subsequently disclosed.Note 4: The company has not yet integrated climate-related risks and opportunities into capital allocation internal carbon pricing remuneration policies or
climate-related target setting. These will be advanced when practicable and disclosed in future reports.
154 155China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
GRI Standard Disclosure Location GRI Standard Disclosure Location
Governance Stakeholder engagement
2-9 Governance structure and composition Robust Governance System for Long-term Stable Operations 2-29 Approach to stakeholder engagement Robust Governance System for Long-term Stable Operations
2-10 Nomination and selection of the highest governance body Refer to the Annual Report. 2-30 Collective bargaining agreements Employee Rights and Promoting Their Interests
2-11 Chair of the highest governance body Refer to the Annual Report. GRI 3: Material Topics 2021
Role of the highest governance body in overseeing the Statement of the Board of Directors 3-1 Process to determine material topics Robust Governance System for Long-term Stable Operations
management of impacts Robust Governance System for Long-term Stable Operations
3-2 List of material topics Robust Governance System for Long-term Stable Operations
2-13 Delegation of responsibility for managing impacts Refer to the Annual Report.
3-3 Management of material topics Robust Governance System for Long-term Stable Operations
Statement of the Board of Directors
2-14 Role of the highest governance body in sustainability reporting GRI 201: Economic Performance 2016
Robust Governance System for Long-term Stable Operations
Key Sustainability Performance Metrics
2-15 Conflicts of interest Refer to the Annual Report. 201-1 Direct economic value generated and distributed
Refer to the Annual Report.
2-16 Communication of critical concerns Robust Governance System for Long-term Stable Operations
Financial implications and other risks and opportunities due to
201-2 Addressing Climate Change to Protect the Environment
Statement of the Board of Directors climate change
2-17 Collective knowledge of the highest governance body
Robust Governance System for Long-term Stable Operations
201-3 Defined benefit plan obligations and other retirement plans Employee Rights and Promoting Their Interests
2-18 Evaluation of the performance of the highest governance body Refer to the Annual Report.
201-4 Financial assistance received from government Refer to the Annual Report.
2-19 Remuneration policies Refer to the Annual Report.
GRI 202: Market Presence 2016
2-20 Process to determine remuneration Refer to the Annual Report.
Ratios of standard entry level wage by gender compared to
202-1 Employee Rights and Promoting Their Interests
2-21 Annual total compensation ratio Refer to the Annual Report. local minimum wage
Strategy policies and practices Proportion of senior management hired from the local
202-2 Need further improvement
community
Statement of the Board of Directors
2-22 Statement on sustainable development strategy
Robust Governance System for Long-term Stable Operations GRI 203: Indirect Economic Impacts 2016
Statement of the Board of Directors 203-1 Infrastructure investments and services supported Engaging in Good Initiatives to Act as a Responsible Corporate
Robust Governance System for Long-term Stable Operations
203-2 Significant indirect economic impacts Engaging in Good Initiatives to Act as a Responsible Corporate
2-23 Policy commitments Enhancing Risk Management and Internal Controls and
Upholding Business Ethics GRI 204: Procurement Practices 2016
Employee Rights and Promoting Their Interests 204-1 Proportion of spending on local suppliers Need further improvement
Statement of the Board of Directors GRI 205: Anti-corruption 2016
Robust Governance System for Long-term Stable Operations
Enhancing Risk Management and Internal Controls and 205-1 Operations assessed for risks related to corruption Need further improvement
2-24 Embedding policy commitments
Upholding Business Ethics Communication and training about anticorruption policies and Enhancing Risk Management and Internal Controls and
Upholding Original Beliefs and Mission to Ensure Trusted procedures Upholding Business Ethics
Business Operations
205-3 Confirmed incidents of corruption and actions taken No relevant incidents during the reporting period.
Enhancing Risk Management and Internal Controls and
GRI 206: Anti-competitive Behavior 2016
Upholding Business Ethics
2-25 Processes to remediate negative impacts
Upholding Original Beliefs and Mission to Ensure Trusted Legal actions for anti-competitive behavior anti-trust and Enhancing Risk Management and Internal Controls and 206-1
Business Operations monopoly practices Upholding Business Ethics
Upholding Original Beliefs and Mission to Ensure Trusted GRI 207: Tax 2019
2-26 Mechanisms for seeking advice and raising concerns
Business Operations 207-1 Approach to tax Refer to the Annual Report.Robust Governance System for Long-term Stable Operations 207-2 Tax governance control and risk management Refer to the Annual Report.Upholding Original Beliefs and Mission to Ensure Trusted
2-27 Compliance with laws and regulations Business Operations Stakeholder engagement and management of concerns related 207-3 Robust Governance System for Long-term Stable Operations
Employee Rights and Promoting Their Interests to tax
Green and Low-Carbon Operations for a Better Life 207-4 Country-by-country reporting Refer to the Annual Report.
2-28 Membership associations Robust Governance System for Long-term Stable Operations
156 157China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report Appendix
GRI Standard Disclosure Location GRI Standard Disclosure Location
GRI 301: Materials 2016 GRI 308: Supplier Environmental Assessment 2016
301-1 Materials used by weight or volume Green and Low-Carbon Operations for a Better Life 308-1 New suppliers that were screened using environmental criteria Robust Green and Intelligent Supply Chain
301-2 Recycled input materials used Green and Low-Carbon Operations for a Better Life 308-2 New suppliers that were screened using environmental criteria No relevant incidents during the reporting period.
301-3 Reclaimed products and their packaging materials Green and Low-Carbon Operations for a Better Life GRI 401: Employment 2016
GRI 302: Energy 2016 401-1 New employee hires and employee turnover Employee Rights and Promoting Their Interests
302-1 Energy consumption within the organization Green and Low-Carbon Operations for a Better Life Benefits provided to full-time employees that are not provided
401-2 Employee Rights and Promoting Their Interests
to temporary or part-time employees
302-2 Energy consumption outside of the organization Need further improvement
401-3 Parental leave Employee Rights and Promoting Their Interests
302-3 Energy intensity Green and Low-Carbon Operations for a Better Life
GRI 402: Labor/Management Relations 2016
302-4 Reduction of energy consumption Green and Low-Carbon Operations for a Better Life
402-1 Minimum notice periods regarding operational changes Need further improvement
302-5 Reductions in energy requirements of products and services Green and Low-Carbon Operations for a Better Life
GRI 403: Occupational Health and Safety 2018
GRI 303: Water and Effluents 2018
403-1 Occupational health and safety management system Operational Safety and Physical and Mental Health
303-1 Interactions with water as a shared resource Green and Low-Carbon Operations for a Better Life
403-2 Hazard identification risk assessment and incident investigation Operational Safety and Physical and Mental Health
303-2 Management of water discharge – related impacts Green and Low-Carbon Operations for a Better Life
403-3 Occupational health services Operational Safety and Physical and Mental Health
303-3 Water withdrawal Green and Low-Carbon Operations for a Better Life
Worker participation consultation and communication on
303-4 Water discharge Need further improvement 403-4 Operational Safety and Physical and Mental Health
occupational health and safety
303-5 Water consumption Need further improvement
403-5 Worker training on occupational health and safety Operational Safety and Physical and Mental Health
GRI 304: Biodiversity 2016
Employee Rights and Promoting Their Interests
403-6 Promotion of worker health
Operational sites owned leased managed in or adjacent to Operational Safety and Physical and Mental Health
304-1 protected areas and areas of high biodiversity value outside Green and Low-Carbon Operations for a Better Life Prevention and mitigation of occupational health and safety
protected areas 403-7 Operational Safety and Physical and Mental Healthimpacts directly linked by business relationships
Significant impacts of activities products and services on
304-2 Green and Low-Carbon Operations for a Better Life Workers covered by an occupational health and safety
biodiversity 403-8 Operational Safety and Physical and Mental Healthmanagement system
304-3 Habitats protected or restored Green and Low-Carbon Operations for a Better Life 403-9 Work-related injuries Operational Safety and Physical and Mental Health
IUCN Red List species and national conservation list species
304-4 No relevant incidents during the reporting period. 403-10 Work-related ill health Operational Safety and Physical and Mental Health
with habitats in areas affected by operations
GRI 404: Training and Education 2016
GRI 305: Emissions 2016
Enhancing Our Comprehensive Training System to Support
404-1 Average hours of training per year per employee
305-1 Direct (Scope 1) GHG emissions Green and Low-Carbon Operations for a Better Life Employee Development
305-2 Energy indirect (Scope 2) GHG emissions Green and Low-Carbon Operations for a Better Life Programs for upgrading employee skills and transition Enhancing Our Comprehensive Training System to Support
assistance programs Employee Development
305-3 Other indirect (Scope 3) GHG emissions Green and Low-Carbon Operations for a Better Life
Percentage of employees receiving regular performance and Enhancing Our Comprehensive Training System to Support
305-4 GHG emissions intensity Green and Low-Carbon Operations for a Better Life 404-3
career development reviews Employee Development
305-5 Reduction of GHG emissions Need further improvement
GRI 405: Diversity and Equal Opportunity 2016
305-6 Emissions of ozone-depleting substances (ODS) Need further improvement
Robust Governance System for Long-term Stable Operations
405-1 Diversity of governance bodies and employees
Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant Employee Rights and Promoting Their Interests
305-7 Need further improvement
air emissions 405-2 Ratio of basic salary and remuneration of women to men Need further improvement
GRI 306: Waste 2020 GRI 406: Non-discrimination 2016
306-1 Waste generation and significant waste related impacts Green and Low-Carbon Operations for a Better Life 406-1 Incidents of discrimination and corrective actions taken No relevant incidents during the reporting period.
306-2 Management of significant waste related impacts Green and Low-Carbon Operations for a Better Life GRI 407: Freedom of Association and Collective Bargaining 2016
306-3 Waste generated Environmental Compliance Management Operations and suppliers in which the right to freedom of
407-1 No relevant incidents during the reporting period.
306-4 Waste diverted from disposal Need further improvement association and collective bargaining may be at risk
306-5 Waste directed to disposal Need further improvement GRI 408: Child Labor 2016
Operations and suppliers at significant risk for incidents of child
408-1 No relevant incidents during the reporting period.
labor
GRI 409: Forced or Compulsory Labor 2016
Operations and suppliers at significant risk for incidents of
409-1 No relevant incidents during the reporting period.
forced or compulsory labor
158 159China Tourism Group Duty Free Corporation Limited * 2025 Environmental Social and Governance Report
GRI Standard Disclosure Location
GRI 410: Security Practices 2016
Security personnel trained in human rights policies or
410-1 Not applicable.
procedures
GRI 411: Rights of Indigenous Peoples 2016
411-1 Incidents of violations involving rights of indigenous peoples No relevant incidents during the reporting period.
GRI 413: Local Communities 2016
Operations with local community engagement impact
413-1 Engaging in Good Initiatives to Act as a Responsible Corporate
assessments and development programs
Operations with significant actual and potential negative impacts
413-2 No relevant incidents during the reporting period.
on local communities
GRI 414: Supplier Social Assessment 2016
414-1 New suppliers that were screened using social criteria Robust Green and Intelligent Supply Chain
414-2 Negative social impacts in the supply chain and actions taken No relevant incidents during the reporting period.
GRI 415: Public Policy 2016
415-1 Political contributions Not applicable.
GRI 416: Customer Health and Safety 2016
Assessment of the health and safety impacts of product and Upholding Original Beliefs and Mission to Ensure Trusted
service categories Business Operations
Incidents of non-compliance concerning the health and safety
416-2 No relevant incidents during the reporting period.
impacts of products and services
GRI 417: Marketing and Labeling 2016
Upholding Original Beliefs and Mission to Ensure Trusted
417-1 Requirements for product and service information and labeling
Business Operations
Incidents of non-compliance concerning product and service
417-2 No relevant incidents during the reporting period.
information and labeling
Incidents of non-compliance concerning marketing
417-3 No relevant incidents during the reporting period.
communications
GRI 418: Customer Privacy 2016
Substantiated complaints concerning breaches of customer
418-1 No relevant incidents during the reporting period.
privacy and losses of customer data
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