Core Viewpoint - The announcement details the daily related transactions of Shanghai Jin Jiang International Hotel Co., Ltd., emphasizing that these transactions are normal business operations priced at market rates and do not significantly depend on related parties, ensuring no adverse impact on the company's ongoing operations [1][2]. Summary by Sections Daily Related Transactions Review - The board of directors approved the proposal regarding the execution of daily related transactions for 2024 and the anticipated transactions for 2025, with three directors from Jin Jiang International Group abstaining from the vote due to their association [1][2]. - Independent directors unanimously agreed to submit the proposal to the board, stating that the transactions align with the company's development needs and adhere to principles of openness, fairness, and justice [2]. 2024 Daily Related Transactions Execution - The company engaged in various related transactions, including procurement of goods and services, with actual amounts differing from estimates due to market conditions and operational needs [3][4]. - Specific transactions included: - Procurement of hotel supplies and food, with an estimated amount of 2,000 million RMB and actual spending of 157 million RMB [4]. - Management service expenses totaling 9,500 million RMB, with actual expenses of 9,033 million RMB [4]. - Labor remuneration and social insurance fees amounting to 10,000 million RMB, with actual costs of 6,322 million RMB [4][5]. 2025 Expected Daily Related Transactions - The company anticipates various related transactions for 2025, including: - Procurement of goods and services, with expected amounts for various categories such as hotel supplies and management services [6][7]. - Estimated amounts for technical service fees and other income sources, with significant variances noted from previous years [7][8]. Leasing and Financial Transactions - The company has outlined expected leasing income and expenses, with anticipated leasing income of 1,000 million RMB and expenses of 23,000 million RMB for 2025 [8][9]. - Financial transactions include interest income and expenses related to deposits and loans with Jin Jiang Financial Company, both estimated at 10,000 million RMB [9][10]. Related Party Relationships - Jin Jiang International Group is identified as the controlling shareholder of Jin Jiang Capital, which in turn is the controlling shareholder of the company [9][10]. - The company engages in various operational collaborations with related parties to enhance brand influence and operational efficiency, particularly in the hotel management sector [10][11]. Impact and Purpose of Related Transactions - The related transactions are designed to support the company's operational needs and enhance brand visibility, particularly for new mid-range hotel brands and international collaborations [11][12]. - The company emphasizes that these transactions do not adversely affect its financial status or ongoing operations, aligning with the overall interests of the company and its shareholders [12].

Overview - The company signed a financial service framework agreement with Jinjiang Finance Company to continue receiving financial services until June 30, 2028 [1][6] Related Transactions - The agreement constitutes a related party transaction as both the company and Jinjiang Finance are controlled by Jinjiang International Group [1][4] - As of March 31, 2025, the company had a loan balance of 1,192.91 million RMB and a deposit balance of 3,465.13 million RMB with Jinjiang Finance [1] Financial Institution Details - Jinjiang Finance Company was established in October 1997 with a registered capital of 1 billion RMB and is a non-bank financial institution [2] - The company holds 85.50% of Jinjiang Finance, while Jinjiang International Group holds 9.50% and Shanghai Jinjiang Hotel Co., Ltd. holds 5% [2] Financial Data - As of December 31, 2024, Jinjiang Finance reported total assets of 11,369.66 million RMB, equity of 1,637.52 million RMB, and a net profit of 52.07 million RMB [3] Service Details - Jinjiang Finance will provide various financial services, ensuring that interest rates and fees are not higher than those charged by domestic commercial banks [5][9] - The maximum daily loan balance is capped at 6.7 billion RMB, and the maximum daily deposit balance is capped at 5 billion RMB [5] Purpose and Impact - The agreement allows the company to better monitor and allocate funds, benefiting from Jinjiang Finance's understanding of its operations and providing quicker services compared to other banks [7][9] Approval Process - The agreement was approved by the company's board and will be submitted for shareholder approval, with related shareholders abstaining from voting [4][8]

证券代码：600754/900934 证券简称：锦江酒店/锦江B股 公告编号：2025-009 上海锦江国际酒店股份有限公司 关于会计政策变更的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重 大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： ? 根据中华人民共和国财政部（以下简称"财政部"）于 2023 年 10 月发布的《企业 会计准则解释第 17 号》（财会〔2023〕21 号）（以下简称"准则解释 17 号"）以 及 2024 年 12 月发布的《企业会计准则解释第 18 号》（财会〔2024〕24 号）（以 下简称"准则解释 18 号"）的相关规定，上海锦江国际酒店股份有限公司（以下简 称"公司"）对公司会计政策进行相应变更，本次会计政策变更对公司的财务状况 和经营成果无重大影响。 一、本次会计政策变更概述 （一）变更原因 财政部于 2023 年 10 月发布了准则解释 17 号，规定了"关于流动负债与非流动负 债的划分"、"关于供应商融资安排的披露"、"关于售后租回交易的会计处理"的相 关内容，该解释规定自 2024 年 1 月 1 日起施行。 ...

Core Points - The company plans to purchase Directors and Officers (D&O) liability insurance to enhance governance and risk management for its board members and senior management [1][2] - The decision to purchase the insurance will be submitted for approval at the upcoming annual shareholders' meeting [2] Group 1: D&O Liability Insurance Plan - The D&O liability insurance aims to protect the legal rights of the company's directors, supervisors, and senior management [1] - The company will authorize the board and potentially the management team to handle all matters related to the purchase of the D&O insurance, including selecting the insurance company and determining the insurance terms [1] Group 2: Approval Process - The company held meetings on March 31, 2025, to discuss the D&O insurance proposal, with all directors and supervisors abstaining from voting on the matter [2] - The proposal will be directly submitted for review at the 2024 annual shareholders' meeting [2]

公司代码：600754/900934 公司简称：锦江酒店/锦江 B 股 上海锦江国际酒店股份有限公司 上海锦江国际酒店股份有限公司全体股东： ）内部控制制度和评价办 法，在内部控制日常监督和专项监督的基础上，我们对公司于2024年12月31日（内部控制评价报告基准 日）的内部控制有效性进行了评价。 一. 重要声明 按照企业内部控制规范体系的规定，建立健全和有效实施内部控制，评价其有效性，并如实披露 内 部控制评价报告是公司董事会的责任。监事会对董事会建立和实施内部控制进行监督。经理层负责组织 领导企业内部控制的日常运行。公司董事会、监事会及董事、监事、高级管理人员保证本报告内容不存 在任何虚假记载、误导性陈述或重大遗漏，并对报告内容的真实性、准确性和完整性承担个别及连带法 律责任。 公司内部控制的目标是合理保证经营管理合法合规、资产安全、财务报告及相关信息真实完整， 提 根据《企业内部控制基本规范》及其配套指引的规定和其他内部控制监管要求（以下简称"企业内 部控制规范体系"），结合上海锦江国际酒店股份有限公司（以下简称"公司" 高经营效率和效果，促进实现发展战略。由于内部控制存在的固有局限性，故仅能为实现上述 ...

Core Viewpoint - Shanghai Jin Jiang International Hotel Co., Ltd. reported a decline in revenue and net profit for the year 2024, primarily due to a decrease in the performance of its limited-service hotels and challenges in the hospitality market [13][14]. Company Overview - The company operates in the hospitality and catering industry, focusing on full-service and limited-service hotel operations, as well as food and beverage services [5][8]. - As of December 31, 2024, the total number of shares was 1,070,044,063, with a proposed cash dividend of RMB 3.80 per 10 shares [2]. Financial Performance - Total assets as of December 31, 2024, were RMB 46,109.97 million, a decrease of 8.85% from the previous year [9]. - The company reported a total revenue of RMB 14,062.98 million, down 4% year-on-year, and a net profit attributable to shareholders of RMB 911.03 million, a decline of 9.06% [9][13]. - The net profit after deducting non-recurring gains and losses was RMB 539.49 million, a decrease of 30.32% compared to the previous year [9][14]. Business Segments - The hotel business generated revenue of RMB 13,821.99 million, a decrease of 4.02%, while the operating profit increased by 2.3% to RMB 167.46 million [14][15]. - Full-service hotels achieved revenue of RMB 238.31 million, a significant increase of 49.57%, while limited-service hotels reported revenue of RMB 13,582.68 million, down 4.62% [15][16]. - The company opened 1,515 new hotels during the year, resulting in a net increase of 968 hotels [16]. Market Position - The company operates a total of 13,416 hotels with 1,290,988 rooms as of December 31, 2024, with limited-service hotels making up 99.37% of the total [16]. - The revenue from limited-service hotels in mainland China accounted for 69.20% of the total hotel business revenue [15]. Future Outlook - The company aims to enhance its global competitiveness through digital transformation, cost control, and optimizing its operational model [21].

Financial Performance - The company’s operating revenue for the first half of 2024 reached ¥6,892,028,466.55, a slight increase of 0.23% compared to ¥6,876,064,377.12 in the same period of 2023[19]. - Net profit attributable to shareholders for the first half of 2024 was ¥847,570,586.95, representing a significant increase of 59.15% from ¥532,554,459.49 in the previous year[19]. - The net cash flow from operating activities decreased by 23.09% to ¥2,051,522,730.58, down from ¥2,667,391,090.31 in the same period last year[19]. - The total assets as of June 30, 2024, were ¥48,728,506,107.40, a decrease of 3.67% from ¥50,587,036,854.93 at the end of 2023[19]. - The net assets attributable to shareholders increased to ¥17,000,867,838.98, reflecting a growth of 1.94% compared to ¥16,677,035,288.57 at the end of 2023[19]. - Basic earnings per share for the first half of 2024 were ¥0.7921, up 59.15% from ¥0.4977 in the same period of 2023[20]. - The weighted average return on equity increased to 4.96%, up by 1.91 percentage points from 3.05% in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥388,515,172.07, a 4.02% increase from ¥373,493,083.47 in the same period last year[19]. - The company reported a total non-recurring gains of RMB 459,055,414.88, primarily from the disposal of subsidiaries and government subsidies[22]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 1.20 CNY per 10 shares to all shareholders for the first half of 2024[3]. - The board of directors approved the profit distribution plan on August 29, 2024, with all directors present at the meeting[2]. - The total number of shares for profit distribution will be based on the total share capital after accounting for any changes due to convertible bonds or share buybacks[3]. - The company has not proposed any capital reserve transfer to increase share capital for the first half of 2024[3]. - The company plans to maintain the same per-share distribution amount in the event of changes in capital structure[72]. Operational Overview - The main business segments include full-service hotel operations, limited-service hotel operations, and food and beverage services, focusing on high-quality experiences for guests[23]. - The company operates high-end hotels under a full-service model, which includes both full management and franchise agreements[23]. - Limited-service hotels are designed for mass consumption, providing basic services and focusing on accommodation[24]. - The company’s food and beverage operations include both direct management and franchise models, with revenue primarily from dining services[24]. - The hotel industry is closely linked to tourism and business activities, with tourism being a rapidly growing sector in China's economy[25]. Market Expansion and Strategy - The company implemented a "12+3+1" brand development strategy, aiming to establish 12 mature brands by 2028 and cultivate 3 core mid-to-high-end brands[26]. - The company has expanded its limited-service hotel chain to 338 cities across 31 provinces and regions in mainland China, as well as 57 countries and regions overseas[32]. - The company aims to strengthen its core competitiveness through digital transformation and integration of global platforms[28]. - The company is classified under the H category of the lodging and catering industry, specifically in the accommodation sector[25]. Environmental Initiatives - The company has implemented various environmental protection measures, including energy management and pollution control, to promote sustainable development[75]. - The company has established standards for green materials to ensure compliance with environmental regulations[75]. - Jin Jiang Hotels launched a "sustainable development themed concept room" that incorporates green building technologies and recycled materials, aiming to reduce carbon emissions and promote low-carbon hotel operations[77]. - The company has implemented a green operation initiative, including the installation of oil-water separators and wastewater recycling systems, which helps reduce natural resource waste and prevent water pollution[78]. - Jin Jiang Hotels has recycled 1 ton of old bed linen, resulting in a reduction of 445 MJ in energy consumption and a decrease of 103 kg CO2 equivalent in greenhouse gas emissions[78]. Risks and Challenges - The company faces risks related to rising operational costs, particularly in fixed asset depreciation and rental expenses, which could negatively impact profitability if not matched by revenue growth[61]. - The company is exposed to risks from franchise management, as it cannot fully control the operations of franchised hotels, which may affect brand reputation and revenue[62]. - The company’s overseas subsidiaries are also affected by macroeconomic fluctuations in their respective countries, impacting overall financial performance[60]. - The company emphasizes the importance of maintaining competitive expansion rates to avoid losing market share to competitors in the limited-service hotel sector[62]. Financial Management - The company reported a significant increase in other current assets, reaching ¥510,019,547.62, a growth of 30.96% compared to the previous year[47]. - The company’s total foreign assets amounted to ¥158.52 billion, accounting for 32.53% of total assets[50]. - The company has committed to ensuring the safety and independence of deposits in its financial company, with full guarantees provided for all funds deposited[93]. - The company has not reported any significant related party transactions during the reporting period[94]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 74,932, including 54,907 A-share shareholders and 20,025 B-share shareholders[99]. - The largest shareholder, Shanghai Jinjiang Capital Co., Ltd., holds 482,007,225 shares, accounting for 45.05% of the total shares[100]. - The second-largest shareholder, Hong Kong Central Clearing Limited, decreased its holdings by 1,943,596 shares, holding 20,969,788 shares, which is 1.96% of the total[100]. - The total number of shares held by the top ten shareholders remains unchanged during the reporting period[99]. Corporate Governance - The company has appointed Mao Xiao as the new CEO, effective June 7, 2024[70]. - The company has elected Xu Ming, Mao Xiao, and Ai Gengyun as directors for the current board term[71]. - The company has approved a stock incentive plan to grant up to 8 million shares, representing approximately 0.748% of the total share capital[73]. Compliance and Reporting - The financial statements for the first half of 2024 were prepared in accordance with Chinese accounting standards and are unaudited[2]. - The company ensures the accuracy and completeness of the financial report, with key executives affirming its integrity[2]. - The company has not disclosed any new strategies or future outlook in the provided documents[98].

Dividend and Capital Management - The company plans to distribute a cash dividend of RMB 5.00 per 10 shares based on a total share capital of 1,070,044,063 shares as of December 31, 2023[2]. - The company has no plans for capital reserve transfer to increase share capital for the 2023 fiscal year[2]. - The company has not disclosed any plans for capital increase or share issuance in the current report[2]. - The company has a cash dividend policy that mandates at least 50% of the net profit attributable to shareholders be distributed as cash dividends when conditions are met[162]. - For the fiscal year 2022, the company declared a cash dividend of 0.60 RMB per 10 shares, totaling 535,022,031.50 RMB, which represents 53.41% of the net profit attributable to shareholders[166]. Financial Performance - The company's operating revenue for 2023 reached approximately RMB 14.65 billion, representing a 29.53% increase compared to RMB 11.31 billion in 2022[24]. - Net profit attributable to shareholders was approximately RMB 1.00 billion, a significant increase of 691.14% from RMB 126.62 million in the previous year[24]. - The net profit after deducting non-recurring gains and losses was approximately RMB 774.27 million, recovering from a loss of RMB 206.65 million in 2022[24]. - Cash flow from operating activities amounted to approximately RMB 5.16 billion, a 177.59% increase from RMB 1.86 billion in the previous year[24]. - Total assets as of December 31, 2023, were approximately RMB 50.59 billion, reflecting a 3.68% increase from RMB 48.79 billion at the end of 2022[24]. - The company's net assets attributable to shareholders decreased by 2.91% to approximately RMB 16.68 billion from RMB 17.18 billion in 2022[24]. Audit and Compliance - The board of directors confirmed the authenticity, accuracy, and completeness of the annual report, with no false records or major omissions[5]. - The company has received a standard unqualified audit report from Deloitte Huayong Certified Public Accountants for the 2023 financial statements[4]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[4]. - The annual report is printed in both Chinese and English, with the Chinese version prevailing in case of discrepancies[6]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[143]. Market and Operational Strategy - The company plans to continue expanding its market presence and invest in new product development to enhance customer experience[24]. - The average room rate and occupancy rate are expected to improve, contributing to revenue growth in the upcoming quarters[24]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[24]. - New technology initiatives are being implemented to optimize operational efficiency and enhance service delivery[24]. - The company aims to enhance its core competitiveness in management, branding, network, and talent[111]. Hotel Operations and Performance - The hotel business achieved consolidated revenue of CNY 1,439,954,000, a year-on-year increase of 29.97%[35]. - The operating profit for the hotel business reached CNY 163,688,000, up 494.04% compared to the previous year[35]. - The net profit attributable to the hotel business segment was CNY 76,831,000, an increase of CNY 95,247,000 year-on-year[35]. - The company opened 1,407 new hotels in 2023, resulting in a net increase of 888 hotels, bringing the total to 12,448 hotels by December 31, 2023[37]. - Revenue from limited-service hotels in mainland China was CNY 994,531,000, a growth of 33.68% year-on-year[40]. Employee and Management Changes - The total remuneration for senior management during the reporting period amounted to 5.9286 million yuan[136]. - The company appointed Mr. Mao Xiao as Vice President, with a term consistent with the current board of directors[137]. - Mr. Wang Guoxing resigned as Chairman of the Supervisory Board due to age reasons, and Ms. Guan Lijuan was elected as the new Chairman[137]. - The company’s management compensation is linked to the completion of annual operational targets, reflecting a performance-based approach[141]. - The company has seen changes in its supervisory board, with a new chairperson elected to replace the outgoing member due to age reasons[142]. Environmental and Social Responsibility - The company invested approximately 22.20 million yuan in environmental protection during the reporting period[175]. - Jin Jiang Hotels recycled 3.13 tons of old linens, resulting in a reduction of 208,034 MJ in energy consumption and a decrease of 23,012 kg in greenhouse gas emissions in 2023[181]. - The "Green Stay" initiative, in collaboration with Alipay, saw participation from 6,248 guests, leading to the issuance of 574 kg of green energy credits[182]. - Jin Jiang Hotels replaced small plastic toiletries with large bottles and biodegradable materials, achieving 100% replacement in some brands by 2023[182]. - The company allocated 50 million yuan to the construction and operation of public libraries, supporting children's education and rural development[186]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations, which can negatively impact consumer spending on domestic travel and dining, affecting financial performance[116]. - Rising operational costs, particularly in fixed asset depreciation and rental expenses, pose a risk to the company's profitability if average room rates and occupancy do not increase correspondingly[117]. - The company acknowledges the risk of franchise management, where it cannot fully control the operations of franchised hotels, potentially impacting brand reputation and revenue[116]. - The company is exposed to foreign exchange risks due to operations in multiple currencies, including Euro, GBP, and USD, which may impact future operations[124]. - The company recognizes the competitive pressure in the limited-service hotel sector, particularly in second and third-tier cities, which may affect its market coverage and customer satisfaction if expansion lags behind competitors[117].

Financial Performance - The company's operating revenue for Q3 2023 reached RMB 4.156 billion, representing a 33.63% increase compared to RMB 3.051 billion in Q3 2022[5] - Net profit attributable to shareholders was RMB 167.81 million, a significant increase of 169.28% from RMB 62.25 million in the same period last year[5] - The basic earnings per share rose to RMB 0.4223, reflecting a 169.28% increase compared to RMB 0.1568 in Q3 2022[5] - The net cash flow from operating activities increased by 173.39%, amounting to RMB 1.913 billion compared to RMB 1.596 billion in the previous year[5] - Total operating revenue for the first three quarters of 2023 reached ¥10,962,239,542.63, a significant increase of 32.7% compared to ¥8,260,358,676.70 in the same period of 2022[36] - Net profit attributable to shareholders of the parent company for the first three quarters of 2023 was ¥975,016,162.69, a significant rise from ¥51,760,899.77 in the previous year[38] - The company reported a total comprehensive income of ¥1,220,199,972.30 for the first three quarters of 2023, compared to ¥161,162,576.81 in the same period of 2022[38] Assets and Liabilities - Total assets as of September 30, 2023, were RMB 49.93 billion, a 3.14% increase from RMB 48.41 billion at the end of 2022[5] - The total liabilities reached RMB 32,333.68 million, reflecting a growth of 5.07% year-on-year[16] - The total assets of the company as of September 30, 2023, amounted to 49,925.36 million RMB, an increase from 48,407.02 million RMB at the end of 2022[33] - Total liabilities increased to ¥32,333,684,266.79 in Q3 2023 from ¥30,773,514,295.66 in Q3 2022, marking an increase of 5.1%[37] Hotel Operations - The company completed the acquisition of 90% of WeHotel in June 2023, which contributed to the financial data for Q3 2023[6] - The total number of ordinary shareholders at the end of the reporting period was 61,282, with the largest shareholder holding 45.05% of the shares[12] - The total number of effective members reached 196.91 million as of September 30, 2023[15] - The number of newly opened hotels in Q3 2023 was 313, resulting in a net increase of 197 hotels[20] - As of September 30, 2023, the total number of hotels in operation reached 12,138, with a total of 1,152,332 rooms[20] - The total number of hotels opened as of September 30, 2023, was 10,929, an increase from 10,723 as of June 30, 2023[44] Revenue Streams - The limited service hotel business generated combined revenue of RMB 4,091.09 million from July to September 2023, up 34.25% year-on-year[19] - The revenue from initial service fees was 185 million RMB, an increase of 81.82% compared to the same period last year, while the continuous franchise fee revenue reached 1,058.03 million RMB, up by 28.18% year-on-year[23] - The company's limited service hotel business in mainland China achieved consolidated revenue of 2,863.57 million RMB from July to September 2023, representing a year-on-year growth of 41.32%[23] - The food and beverage business achieved consolidated revenue of 65.08 million RMB from July to September 2023, a growth of 3.65% compared to the same period last year[28] Market Expansion and Strategy - The company plans to continue expanding its market presence and enhancing its service offerings to drive future growth[29] - The company continues to focus on expanding its hotel network and enhancing operational efficiency through strategic initiatives[49] Performance Metrics - The average occupancy rate for all opened hotels in Q3 2023 was 71.67%, up from 68.72% in Q2 2023[45] - The average room price for all opened hotels in Q3 2023 was CNY 265.60, compared to CNY 254.54 in Q2 2023, reflecting an increase of approximately 4.2%[45] - RevPAR for mid-scale hotels in mainland China was 215.47 RMB, reflecting a year-on-year increase of 33.30%, while the RevPAR for economy hotels rose by 53.03% to 129.46 RMB[27] - The average occupancy rate for mid-range hotels increased to 70.82%, up 14.24% year-over-year, while economy hotels saw a rise to 61.88%, up 11.41%[48] - Revenue per available room (RevPAR) for all operating hotels reached €46.15, indicating growth compared to earlier periods[50]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2022, representing a year-on-year increase of 15%[13]. - The company's operating revenue for the first half of 2022 was approximately CNY 5.04 billion, a decrease of 4.18% compared to CNY 5.26 billion in the same period of 2021[21]. - The net profit attributable to shareholders for the first half of 2022 was a loss of approximately CNY 118 million, a significant decline from a profit of CNY 4.65 million in the same period of 2021, representing a decrease of 2,637.79%[21]. - The EBITDA for the first half of 2022 was RMB 300 million, reflecting a 20% increase year-on-year[13]. - The net cash flow from operating activities increased by 24.03% to approximately CNY 806 million, compared to CNY 650 million in the first half of 2021[21]. - The company reported a significant decrease in investment income, down 51.22% to RMB 83.18 million, primarily due to the impact of COVID-19 on its restaurant operations[56]. - The company reported a total of 1,233 hotels under the Louvre Group, with 984 located in Europe and 249 in regions outside Europe[67]. Market Expansion and Strategy - The company plans to expand its hotel portfolio by opening 20 new hotels by the end of 2023, focusing on key urban areas[13]. - Market expansion efforts include targeting international tourists, with a goal to increase foreign guest bookings by 30% in the next year[13]. - The company continues to explore market expansion opportunities in the hotel management sector, particularly in the economy hotel segment[27]. - The company plans to open 1,200 new limited-service hotels and sign 2,200 new contracts in 2022[53]. - The company has established a comprehensive brand matrix with 39 brands categorized into different tiers to enhance brand value and support high-quality development[31]. Operational Efficiency and Technology - The company is investing in new technology for contactless check-in and enhanced customer service, aiming to improve guest experience[13]. - The company has implemented a digital transformation strategy, focusing on creating a digital hotel experience and enhancing operational efficiency through technology[32]. - The company has transitioned to eco-friendly materials for room supplies, such as using straw for toothbrushes and biodegradable packaging[102]. Financial Integrity and Compliance - The company has no non-operational fund occupation by controlling shareholders or related parties, ensuring financial integrity[4]. - There are no violations of decision-making procedures regarding external guarantees, maintaining compliance with regulations[4]. - The company has outlined potential risks in the hospitality industry, including market volatility and competition, in its management discussion[5]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations, which could negatively impact financial performance due to reduced consumer spending[75]. - Rising operational costs, particularly in fixed asset depreciation and rental expenses, pose a risk to profitability as the company expands its direct-operated stores[76]. - The management of franchise stores presents a risk, as the company cannot fully control the operations of franchisees, potentially affecting brand reputation and revenue[76]. - The company faces risks related to goodwill impairment from acquisitions of Louvre Group, Plateno Group, and Vienna Hotels, which could negatively impact current and future earnings if their operational performance deteriorates[80]. Environmental and Social Responsibility - The company has committed to sustainable practices, focusing on energy conservation and pollution reduction, aligning with national environmental standards[98]. - The company has implemented measures to control water, heat, air, and noise pollution during construction activities[98]. - The company encourages green travel and promotes the use of eco-friendly products among guests[101]. Corporate Governance and Leadership - The company appointed Shen Li as the new CEO and CFO, replacing Zhu Qian and ensuring continuity in leadership[90]. - The board of directors underwent a significant change, with four members not re-elected and new members elected to the tenth board[91]. - The company held its annual general meeting on June 16, 2022, where several key resolutions were passed, including the approval of the 2021 annual financial report[90]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 36,315, including 15,350 A-share shareholders and 20,965 B-share shareholders[123]. - The largest shareholder, Shanghai Jinjiang Capital Co., Ltd., holds 45.05% of the shares, totaling 482,007,225 shares[125]. - The company has not experienced any changes in its share capital structure during the reporting period[122]. Cash Flow and Investment Activities - The net cash flow from investment activities was RMB 281,554,858.43, a significant improvement from a negative RMB 145,580,305.12 in the first half of 2021[150]. - The net cash flow from financing activities was negative at RMB -1,912,219,464.27, compared to a positive RMB 3,442,853,932.10 in the same period last year[150]. - The company reported a significant increase in cash inflow from investment income to RMB 398,466,710.01, compared to RMB 280,273,379.62 in the first half of 2021[153].