The HQ Completes 3rd CB Payment... "Full Effort to Expand Domestic and International Duty-Free Store Business"

[Asia Economy Reporter Yoo Hyun-seok] The HQ (formerly Gamma Nu) announced on the 21st that the payment of 3 billion KRW for convertible bonds (CB) has been completed. With the completion of the third round of CB payment, the final CB payment is scheduled for the 30th.

With the secured funds, The HQ plans to focus on expanding its domestic and international duty-free shop business. The company explained that this is expected to improve performance this year.

China has conducted vaccinations focusing on potential high-risk areas for COVID-19 such as major cities, border regions, and port cities. From December last year to the 10th of this month, a cumulative total of 164.47 million doses of domestically developed vaccines such as Sinovac and Sinopharm have been administered. Ahead of the Beijing Winter Olympics next year, vaccination campaigns are being intensified by providing vaccination incentives to form herd immunity through vaccinating 70-80% of the Chinese population.

Recently, the Hainan duty-free shop, which has rapidly grown solely through domestic consumption in China, is attracting attention, and as the vaccination rate increases, the growth of Hainan duty-free shops is expected to accelerate further due to overseas travelers. Accordingly, sales related to The HQ’s Hainan duty-free shop business are also expected to expand.

A company official said, “Chinese daigou, major players in the domestic duty-free industry, are visiting the Hainan domestic duty-free shops where they do not have to undergo self-quarantine, so The HQ’s Hainan duty-free business is expected to gain more momentum,” adding, “Since the end of last year, major countries such as the UK, the US, and China, which have accelerated COVID-19 vaccination, are showing movements toward economic reopening, so meaningful achievements can be made in domestic and international duty-free shop businesses.”

He continued, “Based on the recovery of the IP (Inbound Platform) business performance and the results of the Hainan duty-free shop business, we plan to expand into various related businesses.”