This article only represents the author's own views.

Are the happy days really back for duty free shopping in China, following a brutal three years during the pandemic? Or was last year’s strong rebound just a fleeting illusion?

The answer could lie in the latest financial reports from China Tourism Group Duty Free Corp. Ltd. (1880.HK; 601888.SH), including a 2023 annual results report published last month that showed a sharp post-Covid recovery, followed by first-quarter 2024 results last week that looked far less upbeat. The annual results showed the company’s revenue and profit grew by 24% and 33.5%, respectively, last year from 2022. The post-Covid rebound, combined with cost savings from rent reduction deals it reached with Chinese airports at the end of last year, briefly returned the company to investor favor.