(Yicai Global) Oct. 10 -- Guangzhou Baiyun International Airport Co. [SHA:600004] has signed a joint operating agreement with China Duty Free Group Co. (CDFG) on a project for duty free shops in the airport's Terminal 2 departure lounge, and anticipates a revenue of CNY1.26 billion (USD192million).
The operating period is eight years from Feb. 1 next year to Jan. 31, 2026. Per the agreement, CDFG will operate a duty-free shop with floorspace of nearly 3,600 square meters in the current Terminal 2 at Baiyun Airport, and the airport will take a cut of the sales of CDFG at a differential rate each month, Baiyun Airport announced Oct. 9.
CDFG is a wholly state-owned company, and a wholly-owned subsidiary of China International Travel Service Co. Its core business is sales of duty-free goods. the company's net profit reached CNY1.73 billion last year.
Established in 1984, CDFG is the only state-owned specialist company the State Council has authorized to operate duty-free businesses nationwide and to exercise unified management of the national excise-exempt industry. The company has established long-term cooperation with over 300 top luxury brands in the world to provide inbound and outbound passengers, international sailors, diplomats and Hainan off-island travelers with duty-free shopping services for more than one-thousand types of commodities from over 20 main categories. Setting up over 200 duty-free shops in 30 provinces, cities and autonomous regions (including Hong Kong, Macao and Taiwan), CDFG has become the duty-free operator with the most extensive coverage and the most retail outlets in a single country.