Market Dynamics - The ultra-luxury car market in China is undergoing significant structural changes driven by policy, economic conditions, technological advancements, and cultural shifts[5]. - By 2025, the threshold for identifying high-priced vehicles will drop to 900,000 RMB, impacting traditional luxury brands to adapt through subsidies and flexible pricing strategies[5]. Economic Environment - In 2024, the average disposable income per capita in China is projected to be 41,314 RMB, with a consumption expenditure of 38,230 RMB, both growing at approximately 5%[6]. - The number of high-net-worth families in China has been declining, leading to reduced consumer confidence and pressure on the ultra-luxury car market[6]. Technological Advancements - Breakthroughs in battery technology and AI are enhancing the performance and user experience of electric vehicles, but challenges remain in safety, supply chain stability, and cost control[9]. - The evolution of autonomous driving technology is becoming a competitive battleground among major car manufacturers, shifting consumer perceptions of driving needs[9]. Consumer Behavior - A survey indicates that 44% of consumers prefer brands like Maybach and Rolls-Royce, while 42% are inclined towards personalized versions of ultra-luxury cars[89][102]. - The preference for SUVs is evident, with 40% of consumers favoring this model type, reflecting a balance between luxury and practicality[101]. Brand Value Preferences - Consumers prioritize brand recognition (72%), performance (81%), and unique design (70%) when evaluating ultra-luxury cars, with financial value being less significant[52][63]. - The demand for personalized services, such as one-on-one remote engineering support, is high among ultra-luxury car owners, indicating a desire for exclusive experiences[106]. Market Trends - The shift from a seller's market focused on "incremental expansion" to a buyer's market characterized by "stock competition" is reshaping the competitive landscape[10]. - The emergence of new wealth classes and changing consumer values are driving a transition from ostentatious consumption to a focus on personal satisfaction and unique experiences[49].

Report Summary 1. Report Industry Investment Rating The report does not mention the industry investment rating. 2. Core Viewpoints - In 2024, the RMB exchange rate showed resilience in a complex macro - background. The nominal effective exchange rate index of the RMB increased, and it appreciated against a basket of currencies. Although it depreciated against the US dollar, it was less than most currencies. However, due to the continuous "inversion" of the Sino - US interest rate spread, there was always adjustment pressure on the RMB exchange rate. [8][15] - In 2025, changes in domestic and foreign macro - events may intensify the volatility of the RMB exchange rate. The scale of domestic incremental counter - cyclical regulatory policies and the overseas political and economic situation, especially Trump's re - election, will have an impact on the RMB exchange rate. The differentiation of Sino - US monetary policies may also cause adjustment pressure on the RMB exchange rate against the US dollar. [9][37] - In the short term, macro - prudential tools are crucial for stabilizing the RMB exchange rate, while in the long term, it depends on positive and effective macro - policies. [10][44] 3. Summary by Directory 2024 RMB Exchange Rate Review - **RMB exchange rate trend is highly consistent with China's economic fundamentals**: In 2024, China's GDP growth rate and PMI showed a pattern of "high at the beginning, low in the middle, and rising at the end". The RMB exchange rate against a basket of currencies followed a similar trend. Policy introductions since late September 2024 boosted the GDP growth rate in the fourth quarter and the RMB exchange rate. [8][17] - **The RMB exchange rate remained resilient against the backdrop of a strong US dollar**: In 2024, the "strong US dollar" was a key feature in the international foreign exchange market. Most developed and emerging market currencies depreciated against the US dollar, but Asian currencies, including the RMB, showed resilience due to strong economic performance. The RMB's relatively small depreciation against the US dollar led to its appreciation against a basket of currencies. [9][20] - **The continuous "inversion" of the Sino - US interest rate spread created adjustment pressure on the RMB exchange rate**: The difference in the 10 - year government bond yields between China and the US widened in 2024. The inflation trends in the two countries led to different trends in their 10 - year government bond yields, and the Sino - US interest rate spread and the RMB exchange rate against the US dollar were strongly correlated. [29][32] 2025 RMB Exchange Rate Outlook - **Changes in domestic and foreign macro - events may intensify the volatility of the RMB exchange rate**: In 2025, the domestic expectation of more incremental counter - cyclical regulatory policies and Trump's re - election as the US president will make the global economic and trade pattern more volatile, which may magnify the exchange rate fluctuations of the RMB against the US dollar. [37][38] - **The differentiation of Sino - US monetary policies creates adjustment pressure on the RMB exchange rate**: China may implement more aggressive monetary easing policies, while the US will be more cautious about interest rate cuts due to inflation and tariff policies. The resulting continuous "inversion" of the Sino - US interest rate spread will be a "pressure source" for the RMB exchange rate against the US dollar in 2025. [40][43] - **Stabilizing the RMB exchange rate depends on macro - prudential tools in the short term and positive macro - policies in the long term**: The central bank has increased its regulation of the RMB exchange rate, and short - term regulatory measures have achieved certain results. In the long run, expanding domestic demand, promoting innovation, and ensuring economic stability are the cornerstones for stabilizing the RMB exchange rate. [44][45]

Investment Rating - The report does not explicitly provide an investment rating for the car rental industry, but it highlights significant growth trends and opportunities within the sector. Core Insights - The report identifies six key trends regarding the car rental preferences of young people, particularly focusing on the Z generation and millennials, indicating a shift in travel behavior and preferences towards car rentals as a primary mode of transportation for leisure and travel experiences [4][5]. Summary by Sections Introduction - The report discusses the increasing popularity of car rentals among young people, especially during peak travel seasons like the Spring Festival, with a notable rise in social media discussions about the "joy of renting a car" [4][5]. Trend 1: Increased Rental Frequency - Z generation rents cars more frequently, while millennials tend to rent for longer durations. In 2024, 47.2% of young renters reported renting 3-4 times a year, with 36.8% renting for 4-5 days at a time [6][7][8]. Trend 2: Preference for Local Travel - 71.5% of young renters prefer short-distance trips, with Shanghai being the top destination city. This trend reflects a growing interest in local tourism and weekend getaways [9][10][11]. Trend 3: Diverse Experiences - Young renters seek unique experiences, with popular activities including camping (30.3%), business trips (28.3%), and outdoor fruit picking (27.1%). This indicates a shift towards experiential travel rather than traditional sightseeing [12][13]. Trend 4: Preference for New Energy Vehicles - The report highlights that the preferred brands for 00s are Ideal and Xiaomi, showcasing a trend towards new energy vehicles among younger renters [15][16][19]. Trend 5: Importance of Reliability - Over 50% of young renters prefer using direct rental companies, valuing reliability and brand reputation over convenience. The top factors influencing their choice include vehicle variety, brand legitimacy, and ease of rental processes [22][23][24]. Trend 6: Information Sources - Douyin (TikTok) has emerged as a primary source of information for young renters, with a significant number using various platforms to research rental options before making decisions [25][26][28].

Investment Rating - The report indicates a positive outlook for the hotel industry, highlighting emerging trends and consumer preferences that suggest growth opportunities in the sector. Core Insights - The hotel experience is evolving from merely a place to stay to a multifunctional leisure destination, with consumers increasingly valuing comfort, amenities, and location accessibility [5][68]. - Social media discussions reveal a significant shift in consumer preferences, emphasizing high cost-performance ratios and unique experiences over traditional luxury [16][17]. - The rise of family-oriented travel is driving demand for kid-friendly hotels, with a notable increase in bookings for family vacations [47][48]. Summary by Sections Section 1: Value for Money - High cost-performance remains a key factor in hotel selection, with many consumers prioritizing value over price [12][16]. - Despite the focus on affordability, some higher-priced hotels are still favored due to their superior amenities and experiences [17][18]. - The average price of high-end hotels has decreased by over 10% during peak seasons, making them more attractive to consumers [14][17]. Section 2: Family-Friendly Hotels - The demand for family-oriented hotels is surging, with a 40% increase in family travel bookings in the first half of 2024 compared to the previous year [47]. - Popular family hotels are often located near scenic areas and offer a range of activities for both children and adults [47][48]. - Features such as child-friendly amenities and engaging activities for families are becoming essential for hotel offerings [48][49]. Section 3: Staycation Trends - The concept of staycation is gaining traction, with consumers seeking local hotel experiences that provide relaxation and leisure without extensive travel [59][60]. - Social media engagement around staycations has significantly increased, indicating a shift in consumer behavior towards enjoying hotel amenities and local attractions [56][59]. - Dining and entertainment options within hotels are becoming critical factors in consumer decision-making [61][62]. Section 4: Industry Performance - Despite a general trend of price reductions to boost occupancy rates, certain hotel brands like Atour and Huazhu are achieving significant revenue growth [69]. - Atour reported a revenue increase of 46.7% year-on-year, demonstrating the effectiveness of their service offerings [69]. - Huazhu continues to expand its market presence with over 10,000 operational hotels, leveraging its scale to outperform competitors [69].