Core Insights - H World Group-S reported its interim unaudited financial performance on August 20, showing a revenue of RMB 11.8 billion (approximately USD 1.7 billion) for the first half of 2025, representing a 3.5% increase compared to the first half of 2024 [1] - The net profit attributable to H World Group Limited was RMB 2.4 billion (approximately USD 340 million), an increase from RMB 1.7 billion in the first half of 2024 [1] - As of June 30, 2025, the company operated a total of 12,137 hotels [1]

Hotel Operations - As of June 30, 2025, H World Group operated a total of 12,137 hotels and 1,184,915 rooms, with 595 hotels opened in Q2 2025[6] - The number of leased and owned hotels as of June 30, 2025, was 2,130, while manachised and franchised hotels totaled 2,829, indicating a net addition of 452 hotels during the quarter[75] - The total number of hotels in operation as of June 30, 2025, was 12,137, with 2,947 hotels in the pipeline[84] - The company had a total of 12,016 hotels as of June 30, 2025, with 2,925 hotels in the pipeline, reflecting ongoing expansion efforts[77] - As of June 30, 2025, 3 hotels were temporarily closed due to repair and renovation[81] Financial Performance - Hotel turnover increased 15.0% year-over-year to RMB26.9 billion in Q2 2025, while revenue rose 4.5% year-over-year to RMB6.4 billion (US$897 million)[4] - Net income attributable to H World was RMB1.5 billion (US$215 million) in Q2 2025, up from RMB1.1 billion in Q2 2024[4] - Adjusted EBITDA (non-GAAP) for Q2 2025 was RMB2.3 billion (US$317 million), compared to RMB2.0 billion in Q2 2024[4] - For the first half of 2025, total revenue was RMB11.8 billion (US$1.7 billion), a 3.5% increase from the first half of 2024[16] - Total revenue for the quarter ended June 30, 2025, was RMB 6,426 million (approximately US$ 897 million), representing an increase from RMB 5,395 million in the previous quarter[64] - Net income for the quarter ended June 30, 2025, was RMB 1,559 million (approximately US$ 217 million), compared to RMB 899 million in the previous quarter, reflecting a growth of 73.3%[64] - Adjusted EBITDA for the six months ended June 30, 2025, reached RMB 3,766 million, up from RMB 3,461 million in the same period last year, reflecting an increase of 8.8%[68] - The adjusted net income attributable to H World Group for the quarter ended June 30, 2025, was RMB 1,349 million, compared to RMB 775 million in the same quarter of the previous year, an increase of 73.7%[68] Occupancy and Revenue Metrics - The occupancy rate for Legacy-Huazhu hotels was 81.0% in Q2 2025, down from 82.6% in Q2 2024[10] - Legacy-DH segment achieved an 8.1% year-over-year blended RevPAR increase in Q2 2025, driven by a 5.6 percentage-point increase in occupancy rate[15] - Average daily room rate (ADR) for leased and owned hotels decreased by 2.7% year-over-year to RMB 375[78] - Occupancy rate for leased and owned hotels was 85.6%, down 2.3 percentage points year-over-year[78] - RevPAR for leased and owned hotels declined by 5.3% year-over-year to RMB 321[78] - Same-hotel RevPAR for economy hotels decreased by 8.2% year-over-year to RMB 194[79] - Average daily room rate (ADR) for manachised and franchised hotels increased by 8.7% year-over-year to EUR 112[83] - Occupancy rate for manachised and franchised hotels improved by 7.1 percentage points year-over-year to 63.8%[83] - RevPAR for manachised and franchised hotels rose by 20.8% year-over-year to EUR 72[83] Cash Flow and Dividends - Operating cash inflow in the first half of 2025 was RMB3.2 billion (US$452 million), compared to RMB3.1 billion in the first half of 2024[37] - The company declared a cash dividend of approximately US$250 million for the first half of 2025, equating to US$0.081 per ordinary share[9] - The Board approved a cash dividend of approximately US$250 million for the first half of 2025, equating to US$0.081 per ordinary share[39] - The company has no dividends payable as of June 30, 2025[61] Costs and Expenses - Hotel operating costs in the first half of 2025 were RMB7.4 billion (US$1.0 billion), nearly unchanged from RMB7.3 billion in the first half of 2024[25] - SG&A expenses in the second quarter of 2025 were RMB969 million (US$135 million), a 5.4% year-over-year increase, primarily due to an increase in SBC[25] - Income from operations in the second quarter of 2025 was RMB1.8 billion (US$250 million), reflecting a 13.7% year-over-year increase[28] - Operating margin in the second quarter of 2025 improved to 27.8%, up from 25.6% in the same quarter of 2024[29] - EBITDA (non-GAAP) in the second quarter of 2025 was RMB2.5 billion (US$344 million), compared to RMB1.9 billion in the same quarter of 2024[32] Assets and Liabilities - Total current assets increased from RMB 13,215 million as of December 31, 2024, to RMB 15,668 million as of June 30, 2025[61] - Total liabilities rose from RMB 50,281 million as of December 31, 2024, to RMB 52,486 million as of June 30, 2025[62] - Cash and cash equivalents increased from RMB 7,474 million to RMB 10,145 million during the same period[61] - Operating lease right-of-use assets slightly increased from RMB 24,992 million to RMB 25,073 million[61] - The depreciation and amortization expense for the quarter ended June 30, 2025, was RMB 255 million, slightly lower than RMB 259 million in the previous quarter[70] - The company experienced a foreign exchange loss of RMB 366 million for the quarter ended June 30, 2025, compared to a gain of RMB 12 million in the same quarter of the previous year[68]

Financial Performance - In Q2 2025, the company achieved total revenue of 6.426 billion RMB, a year-on-year increase of 4.52% [1] - The net profit attributable to shareholders for Q2 2025 was 1.544 billion RMB, reflecting a year-on-year increase of 44.7% [1] - For the first half of 2025, total revenue reached 11.821 billion RMB, up 3.46% year-on-year, with net profit attributable to shareholders at 2.438 billion RMB, an increase of 41.25% [1] Dividend Announcement - The company proposed a cash dividend of 0.081 USD per ordinary share for the first half of 2025 [1] Hotel Operations - As of June 30, 2025, the company operated 12,016 hotels, including 547 leased and owned hotels, and 11,469 managed and franchised hotels [1] - The total number of operating hotel rooms was 1,159,086, with 80,587 rooms in leased and owned hotels, and 1,078,499 rooms in managed and franchised hotels [1] - There are 2,925 hotels in the pipeline, comprising 8 leased and owned hotels, and 2,917 managed and franchised hotels [1] Strategic Insights - The CEO highlighted that despite a slight decline in average revenue per available room, strong operating profit growth was achieved due to network expansion [2] - The company opened 595 hotels in the quarter and aims to open a total of 2,300 hotels in 2025 [2] - The company remains cautious about the short-term industry outlook due to macroeconomic uncertainties, increased supply, and weak business travel demand, but maintains optimism for long-term growth in China's tourism and hotel industry [2] International Operations - The Legacy-DH segment reported an 8.1% year-on-year increase in average revenue per available room in Q2 2025, driven by a 5.6 percentage point increase in occupancy rate [2] - The company plans to continue enhancing hotel operations, focusing on cost reduction and efficiency, while developing its asset-light portfolio [2]

格隆汇8月20日丨华住集团-S(01179.HK)发布公告，于2025年第二季度，收入同比增长4.5%至人民币64 亿元，接近先前所公布收入较2024年第二季度增长1%至5%的指引的上限。归属于华住集团有限公司净 利润为人民币15亿元，相比之下2024年第二季度为人民币11亿元及上一季度为人民币894百万元。于 2025年第二季度，EBITDA（非公认会计准则）为人民币25亿元，相比之下2024年第二季度为人民币19 亿元及上一季度为人民币16亿元。董事会已批准宣派及派付2025年上半年普通现金股息每股普通股 0.081美元，或每股美国预托股份0.81美元，总额约为250百万美元。 ...

华住集团-S(01179)发布公告，该公司将于2025年9月19日派发中期股息每股0.081美元。 ...

Core Viewpoint - H World Group Limited reported strong financial results for the second quarter and first half of 2025, driven by network expansion and an asset-light strategy, despite a modest decline in revenue per available room (RevPAR) [5][22]. Financial Performance - Total revenue for the second quarter of 2025 was RMB6.4 billion (US$897 million), a 4.5% year-over-year increase, with revenue from the Legacy-Huazhu segment increasing by 5.7% to RMB5.1 billion [5][8]. - Net income attributable to H World Group Limited was RMB1.5 billion (US$215 million) in Q2 2025, reflecting a 44.7% year-over-year increase [22]. - EBITDA (non-GAAP) for Q2 2025 was RMB2.5 billion (US$344 million), compared to RMB1.9 billion in Q2 2024 [23][24]. Operational Highlights - As of June 30, 2025, H World operated 12,137 hotels with 1,184,915 rooms, including 12,016 hotels from Legacy-Huazhu and 121 from Legacy-DH [2][41]. - The company opened 595 hotels in Q2 2025, contributing to a total of 2,947 hotels in the pipeline [2][5]. - The average daily room rate (ADR) for Legacy-Huazhu was RMB290, down from RMB296 in Q2 2024, while the occupancy rate was 81.0% [6]. Segment Performance - Revenue from manachised and franchised hotels in Q2 2025 was RMB2.8 billion (US$400 million), representing a 22.8% year-over-year increase [12][13]. - Revenue from the Legacy-DH segment was RMB1.3 billion, showing a slight increase of 0.1% year-over-year [5][9]. - Adjusted EBITDA from the Legacy-Huazhu segment was RMB2.1 billion in Q2 2025, compared to RMB1.9 billion in Q2 2024 [24][25]. Cash Flow and Dividend - Operating cash inflow for Q2 2025 was RMB2.7 billion (US$371 million) [26]. - The board declared a cash dividend of approximately US$250 million, equating to US$0.081 per ordinary share [29]. Guidance - For Q3 2025, H World expects revenue growth in the range of 2%-6%, or 4%-8% excluding Legacy-DH, with manachised and franchised revenue growth projected at 20%-24% [30].

EF001 免責聲明 EF001 | 發行人所發行上市權證/可轉換債券的相關信息 | | | --- | --- | | 發行人所發行上市權證/可轉換債券 | 不適用 | | 其他信息 | | | 其他信息 | 不適用 | | 發行人董事 | | | 於本公告日期，董事會包括董事季琦先生（執行董事長）、鄭潔女士（執行董事）及 Justin Martin LEVERENZ先生；獨立董事吳炯 | | | 先生、許廷芳先生、曹蕾女士及張懌女士。 | | 第 2 頁 共 2 頁 v 1.1.1 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | | --- | --- | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | 股票發行人現金股息公告 | | | 發行人名稱 | 華住集團有限公司 | | 股份代號 | 01179 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 宣派及派付普通股息 | | 公告日期 | 2025年8月20日 ...

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) [Important Notice and Dividend Declaration](index=1&type=section&id=Important%20Notice%20and%20Dividend%20Declaration) Huazhu Group Limited announced its unaudited financial results for the second quarter and interim period ended June 30, 2025, and declared an ordinary cash dividend totaling approximately US$250 million for the first half of 2025 - The Company has provided this earnings announcement as an interim report to shareholders for the six months ended June 30, 2025, in accordance with Rule 13.48(1) of the HKEX Listing Rules[3](index=3&type=chunk) H1 2025 Cash Dividend Declaration | Metric | Amount/Date | | :--- | :--- | | Dividend Per Ordinary Share | US$0.081 | | Dividend Per ADS | US$0.81 | | Total Dividend Amount | Approx. US$250 million | | Record Date | Close of Business on September 9, 2025 | | Ordinary Share Payment Date | On or around September 19, 2025 | | ADS Payment Date | On or around September 26, 2025 | [Q2 and Interim 2025 Performance Highlights](index=3&type=section&id=Q2%20and%20Interim%202025%20Performance%20Highlights) Huazhu Group achieved robust financial and operational growth in Q2 2025, with year-over-year increases in hotel turnover and revenue, significant improvements in net income and EBITDA, and continued hotel network expansion under its asset-light strategy Q2 2025 Key Financial and Operational Metrics | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Hotels in Operation | 12,137 | | | Hotel Turnover | **RMB 26.9 billion** | **15.0%** | | Revenue | **RMB 6.4 billion (US$897 million)** | **4.5%** | | Manachised and Franchised Revenue | **RMB 2.9 billion (US$400 million)** | **22.8%** | | Net Income Attributable to Huazhu Group Limited | **RMB 1.5 billion (US$215 million)** | **44.7% (vs. Q2 2024)** | | EBITDA (Non-GAAP) | **RMB 2.5 billion (US$344 million)** | **31.6% (vs. Q2 2024)** | | Adjusted EBITDA (Non-GAAP) | **RMB 2.3 billion (US$317 million)** | **15.0% (vs. Q2 2024)** | - Legacy-Huazhu segment revenue increased by **5.7%** year-over-year to **RMB 5.1 billion**, while Legacy-DH segment revenue remained largely flat year-over-year at **RMB 1.3 billion**[7](index=7&type=chunk) - For the first half of 2025, the Board declared a cash dividend totaling approximately **US$250 million**, or **US$0.081** per ordinary share[7](index=7&type=chunk) [Q3 2025 Performance Guidance](index=4&type=section&id=Q3%202025%20Performance%20Guidance) Huazhu Group anticipates mid-to-low single-digit revenue growth for Q3 2025, with manachised and franchised revenue expected to maintain strong growth momentum Q3 2025 Revenue Guidance | Metric | Growth Range (vs. Q3 2024) | | :--- | :--- | | Total Revenue | **2% to 6%** | | Total Revenue (Excluding DH) | **4% to 8%** | | Manachised and Franchised Revenue | **20% to 24%** | [Operating Performance Analysis](index=4&type=section&id=Operating%20Performance%20Analysis) [Hotel Network Overview](index=4&type=section&id=Hotel%20Network%20Overview) As of June 30, 2025, Huazhu Group operated over 12,000 hotels and nearly 1.2 million rooms globally, with almost 3,000 hotels in the pipeline, primarily within its Legacy-Huazhu business Hotel Network Overview as of June 30, 2025 | Metric | Count | | :--- | :--- | | Global Hotels in Operation | 12,137 | | Global Rooms in Operation | 1,184,915 | | Hotels in Pipeline | 2,947 | | Legacy-Huazhu Hotels in Operation | 12,016 | | Legacy-DH Hotels in Operation | 121 | - In Q2 2025, Legacy-Huazhu business opened **595** hotels (**594** of which were manachised and franchised hotels) and closed a total of **143** hotels[9](index=9&type=chunk)[53](index=53&type=chunk) [Legacy-Huazhu Operating Performance](index=4&type=section&id=Legacy-Huazhu%20Operating%20Performance) Legacy-Huazhu continued its hotel network expansion in Q2 2025, but experienced slight year-over-year declines in ADR, occupancy rate, and RevPAR, with same-store performance also showing a decrease Legacy-Huazhu Hotel and Room Count (as of June 30, 2025) | Metric | Count | | :--- | :--- | | Hotels in Operation | 12,016 | | Leased and Owned Hotels | 547 | | Manachised and Franchised Hotels | 11,469 | | Rooms in Operation | 1,159,086 | | Hotels in Pipeline | 2,925 | Legacy-Huazhu Q2 2025 Key Operating Metrics | Metric (RMB) | Q2 2024 | Q1 2025 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | ADR | 296 | 272 | 290 | **-1.9%** | | Occupancy Rate | 82.6% | 76.2% | 81.0% | **-1.6 percentage points** | | Blended RevPAR | 244 | 208 | 235 | **-3.8%** | Legacy-Huazhu Mature Hotel Same-Store Performance (Q2 2025) | Metric | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Same-Store RevPAR | RMB 253 | RMB 233 | **-7.9%** | | Same-Store ADR | RMB 300 | RMB 287 | **-4.6%** | | Same-Store Occupancy Rate | 84.1% | 81.1% | **-2.9 percentage points** | [Legacy-DH Operating Performance](index=5&type=section&id=Legacy-DH%20Operating%20Performance) Legacy-DH achieved significant RevPAR growth in Q2 2025, primarily driven by an increase in occupancy rate, despite a stable ADR Legacy-DH Hotel and Room Count (as of June 30, 2025) | Metric | Count | | :--- | :--- | | Hotels in Operation | 121 | | Leased Hotels | 65 | | Manachised and Franchised Hotels | 56 | | Rooms in Operation | 25,829 | | Hotels in Pipeline | 22 | Legacy-DH Q2 2025 Key Operating Metrics | Metric (EUR) | Q2 2024 | Q1 2025 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | ADR | 120 | 107 | 120 | **-0.1%** | | Occupancy Rate | 68.3% | 61.1% | 73.9% | **+5.6 percentage points** | | Blended RevPAR | 82 | 65 | 88 | **+8.1%** | [CEO Commentary](index=5&type=section&id=CEO%20Commentary) CEO Jin Hui highlighted strong operating profit growth driven by the asset-light strategy and network expansion, expressing optimism for the long-term growth of China's travel and hospitality industry while remaining cautious about short-term macroeconomic uncertainties - The Company opened **595** hotels in Q2, on track to achieve its full-year 2025 target of opening a total of **2,300** hotels[12](index=12&type=chunk) - Despite macroeconomic uncertainties, increased supply, and weak business travel demand, the Company remains optimistic about the long-term growth of China's travel and hospitality industry[12](index=12&type=chunk) - Legacy-DH segment achieved an **8.1%** year-over-year increase in blended RevPAR in Q2 2025, primarily driven by a **5.6 percentage point** increase in occupancy rate[12](index=12&type=chunk) [Financial Performance Analysis](index=6&type=section&id=Financial%20Performance%20Analysis) [Revenue Analysis](index=6&type=section&id=Revenue%20Analysis) Huazhu Group's total revenue grew by **4.5%** year-over-year in Q2 2025, primarily driven by the strong expansion of its manachised and franchised hotel network, with this business model's revenue contribution continuously increasing Total Revenue Overview (RMB in millions) | Revenue Source | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Leased and Owned Hotels | 3,681 | 2,789 | 3,401 | 6,780 | 6,190 | | Manachised and Franchised Hotels | 2,334 | 2,499 | 2,865 | 4,397 | 5,364 | | Other | 133 | 107 | 160 | 249 | 267 | | **Total Revenue** | **6,148** | **5,395** | **6,426** | **11,426** | **11,821** | - Total revenue for Q2 2025 was **RMB 6.4 billion (US$897 million)**, a **4.5%** year-over-year increase. Legacy-Huazhu segment revenue grew **5.7%** year-over-year to **RMB 5.1 billion**, while Legacy-DH segment revenue remained largely flat year-over-year at **RMB 1.3 billion**[13](index=13&type=chunk)[51](index=51&type=chunk) - Total revenue for H1 2025 was **RMB 11.8 billion (US$1.7 billion)**, a **3.5%** increase compared to H1 2024. Legacy-Huazhu revenue increased by **5.6%** year-over-year, while Legacy-DH revenue decreased by **4.9%** year-over-year[14](index=14&type=chunk)[52](index=52&type=chunk) [Leased and Owned Hotel Revenue](index=6&type=section&id=Leased%20and%20Owned%20Hotel%20Revenue) Leased and owned hotel revenue decreased year-over-year in both Q2 and H1 2025, reflecting the company's ongoing strategy to reduce this business model Leased and Owned Hotel Revenue (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 3,681 | 3,401 | **-7.6%** | | Legacy-Huazhu | 2,395 | 2,130 | **-11.1%** | | Legacy-DH | 1,286 | 1,271 | **-1.2%** | - Revenue from leased and owned hotels for H1 2025 was **RMB 6.2 billion (US$864 million)**, a year-over-year decrease of **8.7%**[14](index=14&type=chunk) [Manachised and Franchised Hotel Revenue](index=6&type=section&id=Manachised%20and%20Franchised%20Hotel%20Revenue) Manachised and franchised hotel revenue achieved strong growth in both Q2 and H1 2025, becoming the primary driver of the company's revenue increase, with its revenue contribution significantly rising Manachised and Franchised Hotel Revenue (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,334 | 2,865 | **+22.8%** | | Legacy-Huazhu | 2,305 | 2,829 | **+22.7%** | | Legacy-DH | 32 | 41 | **+28.1%** | - Revenue from manachised and franchised hotels for H1 2025 was **RMB 5.4 billion (US$749 million)**, a **22.0%** year-over-year increase, accounting for **45.4%** of total revenue (compared to **38.5%** in H1 2024)[16](index=16&type=chunk) [Other Revenue](index=7&type=section&id=Other%20Revenue) Other revenue increased in both Q2 and H1 2025, primarily from businesses such as IT products and services, procurement platforms, and Huazhu Mall Other Revenue (RMB in millions) | Period | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | | Amount | 133 | 160 | 249 | 267 | [Operating Costs and Expenses Analysis](index=7&type=section&id=Operating%20Costs%20and%20Expenses%20Analysis) In Q2 2025, Huazhu Group's total operating costs and expenses slightly increased year-over-year, but hotel operating costs as a percentage of revenue decreased due to the asset-light strategy, leading to double-digit operating profit growth Total Operating Costs and Expenses (RMB in millions) | Expense Type | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Hotel Operating Costs | (3,731) | (3,604) | (3,752) | (7,296) | (7,356) | | Other Operating Costs | (6) | (11) | (11) | (15) | (22) | | Selling and Marketing Expenses | (317) | (243) | (309) | (577) | (552) | | General and Administrative Expenses | (602) | (512) | (660) | (1,111) | (1,172) | | Pre-opening Expenses | (19) | (3) | (12) | (27) | (15) | | **Total Operating Costs and Expenses** | **(4,675)** | **(4,373)** | **(4,744)** | **(9,026)** | **(9,117)** | [Hotel Operating Costs](index=7&type=section&id=Hotel%20Operating%20Costs) Hotel operating costs in Q2 2025 slightly increased by **0.6%** year-over-year, but as a percentage of revenue, they decreased by **2.3 percentage points** year-over-year due to the implementation of the asset-light strategy - Hotel operating costs for Q2 2025 were **RMB 3.8 billion (US$523 million)**, a slight year-over-year increase of **0.6%**[17](index=17&type=chunk) - As the Company continues to execute its asset-light strategy, hotel operating costs as a percentage of revenue decreased by **2.3 percentage points** year-over-year[17](index=17&type=chunk) - Hotel operating costs for H1 2025 were **RMB 7.4 billion (US$1.0 billion)**, largely flat compared to **RMB 7.3 billion** in H1 2024[18](index=18&type=chunk) [Selling, General and Administrative Expenses](index=8&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) Selling, general and administrative expenses increased by **5.4%** year-over-year in Q2 2025, primarily due to higher share-based compensation, but would have decreased by **1.0%** year-over-year excluding share-based compensation Selling, General and Administrative Expenses (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | SG&A | 919 (317+602) | 969 (309+660) | **+5.4%** | | Excluding Share-based Compensation | | | **-1.0%** | - Selling, general and administrative expenses for H1 2025 were **RMB 1.7 billion (US$241 million)**, compared to **RMB 1.7 billion** in H1 2024[19](index=19&type=chunk) [Operating Profit](index=8&type=section&id=Operating%20Profit) Operating profit increased by **13.7%** year-over-year in Q2 2025, with the operating profit margin rising to **27.8%**, primarily due to the increased revenue contribution from manachised and franchised businesses Operating Profit (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Profit | 1,572 | 1,787 | **+13.7%** | | Legacy-Huazhu | | | **+11.7%** | | Legacy-DH | | | **+52.7%** | - Operating profit margin (defined as operating profit as a percentage of revenue) for Q2 2025 was **27.8%**, an improvement from **25.6%** in Q2 2024[20](index=20&type=chunk) - Operating profit for H1 2025 was **RMB 2.9 billion (US$400 million)**, with an operating profit margin of **24.3%**, compared to **22.5%** in H1 2024[19](index=19&type=chunk)[21](index=21&type=chunk) [Net Income and EBITDA](index=9&type=section&id=Net%20Income%20and%20EBITDA) Huazhu Group's net income attributable to the company and EBITDA (Non-GAAP) both achieved substantial growth in Q2 2025, reflecting a significant improvement in the company's profitability Net Income and EBITDA Overview (RMB in millions) | Metric | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Huazhu Group Limited | 1,067 | 894 | 1,544 | 1,726 | 2,438 | | EBITDA (Non-GAAP) | 1,853 | 1,615 | 2,465 | 3,162 | 4,080 | | Adjusted EBITDA (Non-GAAP) | 2,040 | 1,496 | 2,270 | 3,461 | 3,766 | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense increased year-over-year in Q2 2025, primarily due to higher profit and increased withholding tax on dividend distribution Income Tax Expense (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 423 | 565 | **+33.6%** | | H1 2025 | 702 | 942 | **+34.2%** | [Net Income Attributable to Huazhu Group Limited](index=9&type=section&id=Net%20Income%20Attributable%20to%20Huazhu%20Group%20Limited) Net income attributable to Huazhu Group Limited surged by **44.7%** year-over-year in Q2 2025, primarily driven by net income growth from Legacy-Huazhu Net Income Attributable to Huazhu Group Limited (RMB in millions) | Period | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Net Income | 1,067 | 1,544 | **+44.7%** | | Legacy-Huazhu Net Income | | | **+40.9%** | - Net income attributable to Huazhu Group Limited for H1 2025 was **RMB 2.4 billion (US$340 million)**, compared to **RMB 1.7 billion** in H1 2024[22](index=22&type=chunk) [EBITDA (Non-GAAP)](index=9&type=section&id=EBITDA%20(Non-GAAP)) EBITDA (Non-GAAP) reached **RMB 2.5 billion** in Q2 2025, showing significant year-over-year growth and reflecting the strong profitability of the company's core business EBITDA (Non-GAAP) (RMB in millions) | Period | Q2 2024 | Q1 2025 | Q2 2025 | | :--- | :--- | :--- | :--- | | EBITDA | 1,853 | 1,615 | 2,465 | - EBITDA (Non-GAAP) for H1 2025 was **RMB 4.1 billion (US$569 million)**, compared to **RMB 3.2 billion** in H1 2024[22](index=22&type=chunk) [Adjusted EBITDA (Non-GAAP)](index=9&type=section&id=Adjusted%20EBITDA%20(Non-GAAP)) Adjusted EBITDA (Non-GAAP) for Q2 2025 was **RMB 2.3 billion**, with both Legacy-Huazhu and Legacy-DH segments achieving growth, indicating strong performance across all business units Adjusted EBITDA (Non-GAAP) (RMB in millions) | Metric | Q2 2024 | Q1 2025 | Q2 2025 | | :--- | :--- | :--- | :--- | | Total Adjusted EBITDA | 2,040 | 1,496 | 2,270 | | Legacy-Huazhu | 1,907 | 1,573 | 2,090 | | Legacy-DH | 133 | (77) | 180 | - Adjusted EBITDA (Non-GAAP) for H1 2025 was **RMB 3.8 billion (US$525 million)**, compared to **RMB 3.5 billion** in H1 2024[24](index=24&type=chunk) [Financial Position and Cash Flow](index=9&type=section&id=Financial%20Position%20and%20Cash%20Flow) [Balance Sheet Overview](index=10&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, Huazhu Group's total assets and liabilities both increased, with ample cash and cash equivalents and a healthy net cash balance Balance Sheet Key Data (as of June 30, 2025) | Metric | Amount (RMB in millions) | | :--- | :--- | | Total Assets | 64,779 | | Total Liabilities | 52,486 | | Total Shareholders' Equity Attributable to Huazhu Group Limited | 12,153 | | Cash and Cash Equivalents | 10,145 | | Restricted Cash | 370 | | Total Debt | 7,410 (Short-term Debt 6,633 + Long-term Debt 777) | | Net Cash Balance | 3,100 (Cash and Cash Equivalents 10,145 + Restricted Cash 370 - Total Debt 7,410) | [Cash Flow](index=9&type=section&id=Cash%20Flow) In Q2 2025, Huazhu Group reported strong cash inflow from operating activities, positive cash inflow from investing activities, and cash outflow from financing activities primarily due to dividend payments and debt repayments Cash Flow Overview (RMB in millions) | Cash Flow Type | Q2 2024 | Q1 2025 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,235 | 580 | 2,659 | 3,121 | 3,239 | | Net Cash from Investing Activities | 346 | 757 | 239 | 694 | 996 | | Net Cash from Financing Activities | (1,105) | (628) | (709) | (3,363) | (1,337) | - Operating cash inflow for Q2 2025 was **RMB 2.7 billion (US$371 million)**, investing cash inflow was **RMB 239 million (US$34 million)**, and financing cash outflow was **RMB 709 million (US$100 million)**[24](index=24&type=chunk) - Operating cash inflow for H1 2025 was **RMB 3.2 billion (US$452 million)**, investing cash inflow was **RMB 996 million (US$139 million)**, and financing cash outflow was **RMB 1.3 billion (US$187 million)**[24](index=24&type=chunk) [Company Information and Accounting Principles](index=10&type=section&id=Company%20Information%20and%20Accounting%20Principles) [Conference Call Information](index=10&type=section&id=Conference%20Call%20Information) Huazhu Group will host a conference call on August 20, 2025, to discuss its results, with webcast and replay services available - The conference call will commence at **8:00 AM U.S. Eastern Time (8:00 PM Hong Kong Time)** on **August 20, 2025**[29](index=29&type=chunk) - All participants are required to pre-register before the call, and a webcast and replay will be available on the company's website for twelve months[29](index=29&type=chunk) [Use and Limitations of Non-GAAP Financial Measures](index=11&type=section&id=Use%20and%20Limitations%20of%20Non-GAAP%20Financial%20Measures) Huazhu Group utilizes non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide a more comparable assessment of operating performance, while acknowledging their limitations and emphasizing the need for comprehensive evaluation alongside GAAP data - Non-GAAP measures (such as EBITDA and Adjusted EBITDA) provide meaningful supplemental information by excluding share-based compensation expenses, fair value changes, net foreign exchange gains/losses, and gains/losses from disposal of investments[30](index=30&type=chunk) - The Company believes EBITDA is a useful financial metric for evaluating operating and financial performance before reflecting investment and financing transactions and income tax impacts, and is widely used by other companies in the hospitality industry[31](index=31&type=chunk) - Limitations of non-GAAP measures include their failure to reflect important items such as depreciation and amortization, income tax, and interest expense, and they may not be fully comparable to those of other companies[32](index=32&type=chunk)[33](index=33&type=chunk) [About Huazhu Group Limited](index=12&type=section&id=About%20Huazhu%20Group%20Limited) Huazhu Group is a major player in the global hospitality industry, boasting a diversified brand portfolio and an asset-light business model, committed to expanding its hotel network worldwide - As of June 30, 2025, Huazhu operated **12,137** hotels with **1,184,915** rooms in operation across **19** countries[34](index=34&type=chunk) - Huazhu's brands include Hanting Hotel, Ji Hotel, Orange Hotel, Steigenberger, and it holds master franchise rights for Mercure, Ibis, and Ibis Styles in Greater China[34](index=34&type=chunk) - Huazhu's business model includes leased and owned (**8%** of hotel rooms) and manachised and franchised (**92%** of hotel rooms), with uniform standards and platforms applied across all hotels[35](index=35&type=chunk) [Reconciliation of US GAAP to IFRS](index=27&type=section&id=Reconciliation%20of%20US%20GAAP%20to%20IFRS) This report provides a reconciliation between financial statements prepared under US GAAP and IFRS, detailing significant impacts arising from accounting treatment differences such as convertible preferred notes, share-based compensation, leases, investment classification, and asset impairment - The reconciliation has been reviewed by Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) issued by the Hong Kong Institute of Certified Public Accountants[60](index=60&type=chunk) - Key differences include the classification of convertible preferred notes (liability under US GAAP vs. financial liability at fair value through profit or loss under IFRS), recognition methods for share-based compensation expenses (straight-line vs. accelerated method), and lease accounting treatment (changes in index or rate, right-of-use asset amortization, intermediate lessor classification)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - Measurement of investments in debt and equity securities (at cost less impairment under US GAAP vs. at fair value through profit or loss under IFRS) and long-lived asset impairment test methods (two-step vs. one-step approach) are also significant factors contributing to the differences[70](index=70&type=chunk)[74](index=74&type=chunk)

Core Insights - H World Group Limited is celebrating its 20th anniversary in 2025, having evolved from a single hotel brand to a multi-brand hospitality group with over 12,000 hotels across 19 countries [1] - The company will host its inaugural H World Capital Markets Day on October 30, 2025, in Shanghai, China, to outline its future strategic direction [1] Company Overview - As of March 31, 2025, H World operated 11,685 hotels with a total of 1,142,158 hotel rooms in 19 countries [3] - The company's brands include HanTing Hotel, JI Hotel, Orange Hotel, Crystal Orange Hotel, IntercityHotel, Hi Inn, Ni Hao Hotel, Elan Hotel, Zleep Hotels, Starway Hotel, CitiGo, Manxin Hotel, Madison Hotel, MAXX, Blossom House, Joya Hotel, Steigenberger Hotels & Resorts, Jaz in the City, Steigenberger Icon, and Song Hotels [3] - H World holds master franchise rights for Mercure, Ibis, and Ibis Styles, and co-development rights for Grand Mercure and Novotel in the pan-China region [3] Business Model - H World operates under leased and owned, manachised, and franchised models [4] - As of March 31, 2025, 8% of hotel rooms were operated under the lease and ownership model, while 92% were under the manachise and franchise model [4] - The company applies a consistent standard and platform across all its hotels [4]

過去二十載，華住從一家漢庭酒店成長到如今遍佈19個國家經營超過12,000家酒 店的多品牌酒店集團。為慶祝此重要里程碑時刻，並勾劃我們未來的戰略方向， 華住集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司將於2025年 10月30日（星期四）在中國上海舉辦首屆華住集團資本市場日（「該活動」）。 自願公告 華住集團資本市場日 （英文前稱Huazhu Group Limited） （於開曼群島註冊成立的有限公司） （股份代號：1179） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不會就本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 H World Group Limited 華住集團有限公司 如對該活動感興趣者，請於 2025 年 8 月 2 9 日（ 星 期 五 ）之 前 通 過 https://htone.feishu.cn/share/base/form/shrcnMImNPPvb8FNF2YoYkicCbh鏈接填寫 註冊表格。成功註冊的參與者將於2025年9月底前收到該活動的邀請函 ...