First Quarter of 2023 Earnings Call ...

Financial Regulations and Compliance - A total of RMB904 million (US$131 million) was not distributable in the form of dividends to the company due to PRC regulations as of December 31, 2022[219]. - The share capital of the company's PRC subsidiaries amounted to RMB2,831 million (US$411 million) as of December 31, 2022, which is considered restricted[219]. - The company relies principally on dividends from its subsidiaries in China for cash requirements, including any debt incurred[219]. - If treated as a PRC resident enterprise, the company would be subject to a 25% PRC income tax on worldwide income[228]. - Non-PRC resident investors may be subject to a 10% PRC income tax on dividends if the company is classified as a PRC resident enterprise[229]. - The company must comply with PRC regulations regarding foreign exchange and capital contributions, which may affect its ability to fund and expand operations[223]. - As of December 31, 2022, the company faced potential limitations on its subsidiaries' ability to pay dividends due to statutory reserve requirements[219]. - The company’s ability to make loans or additional capital contributions to its PRC subsidiaries is subject to PRC regulations and approvals, which may delay or prevent such actions[221]. - The company has completed foreign exchange registration procedures according to Circular 7, but compliance with PRC regulations remains uncertain[224]. - The PCAOB's ability to inspect audit firms is contingent on PRC authorities not obstructing the process, which introduces uncertainty regarding future compliance with the HFCA Act[232]. - The SEC identified the company as a "Commission-Identified Issuer" under the HFCA Act on May 26, 2022, which may lead to trading prohibitions if audit reports are not inspected for two consecutive years[231]. Business Structure and Operations - The company operates primarily through subsidiaries in China and Europe, and investors do not hold equity interest in the operating entities in China but rather in a Cayman Islands holding company[233]. - The current industry entry clearance requirements for foreign investment in the PRC include the Encouraged Industry Catalogue and the Negative List, which restrict foreign stakes in certain sectors[237]. - The company relies on contractual arrangements with Consolidated Affiliated Entities to operate restricted businesses, which may not provide the same level of control as direct ownership[243]. - If the contractual arrangements are deemed illegal by PRC authorities, the company may lose control over the Consolidated Affiliated Entities, adversely affecting its business[239]. - The company may face substantial costs and limitations if it exercises the option to acquire equity ownership of the Consolidated Affiliated Entities due to potential tax implications[247]. - The company’s financial results may be materially affected if it cannot enforce contractual arrangements with the Consolidated Affiliated Entities due to legal uncertainties in China[246]. - The company’s ordinary shares and ADSs may decline in value if regulatory changes affect its ability to assert control over the assets of the Consolidated Affiliated Entities[242]. - The Foreign Investment Law of the PRC, effective from January 1, 2020, may impact the company's business structure and operations if the VIE structure is deemed a method of foreign investment[255]. Financial Performance - The company recorded net losses of RMB2,192 million, RMB465 million, and RMB1,821 million (US$264 million) for the years 2020, 2021, and 2022 respectively[269]. - As of December 31, 2022, the company's current liabilities exceeded current assets by US$576 million[269]. - The company repaid US$475 million in convertible senior notes due 2022 using a revolving facility of EUR70 million and cash equivalents[269]. - Total revenue for the company was RMB 10,196 million, RMB 12,785 million, and RMB 13,862 million (US$2,010 million) for the years 2020, 2021, and 2022, respectively[316]. - Adjusted EBITDA (non-GAAP) was negative RMB 244 million, RMB 1,571 million, and RMB 610 million (US$88 million) for the years 2020, 2021, and 2022, respectively[316]. - The company may require additional capital and could seek to sell additional equity or debt securities, which may dilute existing shareholders[267]. - The company has not entered into hedging transactions to mitigate dilution from the conversion of convertible senior notes due 2026[272]. Market and Stock Performance - The market price for the company's ADSs ranged from a low of US$21.84 to a high of US$45.70 on the NASDAQ in 2022[256]. - The ordinary shares on the Hong Kong Stock Exchange had a high of HK$36.5 and a low of HK$17.43 in 2022[256]. - The company has experienced significant volatility in its stock prices, influenced by market conditions and investor sentiment towards China-based companies[260]. - The trading market for the company's ordinary shares on the Hong Kong Stock Exchange may not be sustained, affecting liquidity and market price[262]. - The trading prices of the company's ordinary shares and ADSs may not align due to different market characteristics and trading hours between Hong Kong and the U.S.[297]. Shareholder Rights and Corporate Governance - The company relies on exemptions from certain NASDAQ corporate governance standards, which may afford less protection to shareholders[285]. - The company's amended articles of association contain anti-takeover provisions that could limit opportunities for shareholders to sell shares at a premium[286]. - The company faces challenges in protecting shareholder rights due to the legal frameworks in the Cayman Islands, China, and Germany, which may limit the ability to enforce judgments[291]. - The company’s shareholders may have more difficulty in protecting their interests compared to shareholders of corporations incorporated in the U.S. or Hong Kong[294]. Hotel Operations and Expansion - The hotel network expanded from 6,789 hotels as of December 31, 2020, to 8,543 hotels as of December 31, 2022, representing a CAGR of 12.2%[310]. - As of December 31, 2022, the company had 8,543 hotels in operation, including 704 leased and owned hotels and 7,839 manachised and franchised hotels, with a total of 809,478 hotel rooms[310]. - The company operates a multi-brand strategy with over 20 distinct hotel brands, targeting various market segments[311]. - As of December 31, 2022, the company operated 8,543 hotels across 882 cities in 31 provinces and municipalities in Greater China and 17 other countries, with an additional 2,580 hotels under development[349]. - The hotel network included 704 leased and owned hotels, 7,617 manachised hotels, and 222 franchised hotels as of December 31, 2022[351]. - The company had 164 Crystal Orange Hotels in operation and 57 under development, targeting the upper midscale segment[332]. - IntercityHotel had 56 hotels in operation and 25 under development, with a focus on business travelers[333]. - Manxin Hotel operated 112 hotels and had 59 under development, emphasizing unique design and localized features[334]. - Mercure Hotel had 137 hotels in operation and 62 under development, combining local community experiences with quality service[335]. - As of December 31, 2022, the company had 52 Madison Hotels in operation and 64 under development, targeting both business and leisure guests[337]. Technology and Innovation - The company aims to enhance profitability through advanced technology infrastructure, including big data analytics and AI[394]. - The company has developed a global central reservation system that has been fully implemented, achieving unified inventory and distribution management worldwide[395]. - The centralized revenue management system (RMS) is the first fully automated RMS in China's hotel industry, optimizing room rates based on real-time demand forecasts, thereby increasing hotel occupancy[399]. - The cloud-based property management system (Cloud-PMS) allows hotels to manage operations efficiently and cost-effectively, optimizing occupancy rates and revenues generated per available room (RevPAR)[401]. - The centralized procurement system (CPS) leverages IoT technology to manage operating costs and facilitate bulk purchases across the hotel network[400]. - Smart robots have been deployed across hotels to enhance operational efficiency and guest experience by automating deliveries and guest interactions[404]. - The intelligent AI assistant, the first of its kind in China's hotel industry, enhances guest experience by providing real-time assistance through voice recognition technology[405]. - The company has implemented a robust data security framework, complying with multiple regulations including the Cyber Security Law of China and GDPR[409]. Challenges and Risks - Economic conditions, including inflation and geopolitical issues, could adversely affect consumer spending and the company's financial performance[261]. - The company may need to respond to short seller reports, which could divert management's attention and resources[266]. - The company faces risks related to potential legal proceedings if conflicts of interest arise with nominee shareholders[251]. - The company has been negotiating with landlords to reduce or delay rental payments to mitigate the impact of COVID-19[363]. - The company may face difficulties in regulatory investigations or litigation due to legal obstacles in China[296]. - The exchange process between ordinary shares and ADSs may involve delays and costs, impacting liquidity and trading prices[300].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of April 2023 Commission File Number: 001-34656 H World Group Limited (Registrant’s name) No. 1299 Fenghua Road Jiading District Shanghai People’s Republic of China (86) 21 6195-2011 (Address of principal executi ve office) Indicate by check mark whether the registrant files or will file annual reports unde ...

H World Group Limited (NASDAQ:HTHT) Q4 2022 Earnings Conference Call March 27, 2023 9:00 PM ET Company Participants Jason Chen - Director, Investor Relations Qi Ji - Chairman Hui Jin - CEO Jihong He - CFO Ye Fei - President Conference Call Participants Ronald Leung - Bank of America Simon Cheung - Goldman Sachs Sijie Lin - CICC Operator Good day and thank you for standing by. Welcome to the H World Q4 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker' ...

Fourth Quarter and Full Year of 2022 Earnings Call H World Group Limited HT and HKEX: 1179) March 28, 2023 H World Group Limited AGENDA ○ 2022 Review and 2023 Focus 2022 Operational and Financial Review Q and A Appendix Our Achievements in 2022 - Legacy-Huazhu 2022年华住中国主要成就 | --- | --- | --- | |------------------------------|-------|-----------------------------------------------------------------------------------------------------------------------------------------| | Key priorities | | Achievements | | ...

Exhibit 99.1 H WORLD GROUP LIMITED INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2022 F-2 Unaudited Interim Condensed Consolidated Statements of Comprehensive Income for the Nine Months Ended September 30, 2021 and 2022 F-3 Unaudited Interim Condensed Consolidated Statements of Changes in Equity for the Nine Months Ended September 30, 2021 and 2022 F-4 Unaudited Interim Condensed Consol ...

H World Group Limited (NASDAQ:HTHT) Q3 2022 Earnings Conference Call November 28, 2022 8:00 PM ET Company Participants Jason Chen - Director, Investor Relations Qi Ji - Chairman Hui Jin - Chief Executive Officer Jihong He - Chief Executive Officer, International Business Ye Fei - Deputy Chief Financial Officer Conference Call Participants Dan Xu - Morgan Stanley Ronald Leung - Bank of America Simon Cheung - Goldman Sachs Operator Good day, and thank you for standing by. Welcome to the H World Third Quarter ...

H World Group Ltd (NASDAQ:HTHT) Q2 2022 Earnings Conference Call August 29, 2022 9:00 PM ET Company Participants Jason Chen - IR Director Ji Qi - Founder & Executive Chairman Jin Hui - CEO Ye Fei - Deputy CFO & VP, Strategic Investment and Capital Market Conference Call Participants Billy Ng - Bank of America Merrill Lynch Simon Cheung - Goldman Sachs Group Sijie Lin - CICC Operator Good day, and thank you for standing by. Welcome to the H World Group Conference Call. I would now like to hand the conference ...

Financial Performance - Hotel turnover decreased 10.3% year-over-year to RMB11.8 billion in Q2 2022, with a decrease of 18.9% excluding Legacy-DH[2]. - Revenue in Q2 2022 was RMB3.4 billion (US$504 million), a 5.7% year-over-year decrease, aligning with previous guidance of a 2% to 6% decrease[3]. - Net loss attributable to H World Group Limited was RMB350 million (US$52 million) in Q2 2022, compared to a net income of RMB378 million in Q2 2021[4]. - Adjusted EBITDA (non-GAAP) was RMB53 million (US$7 million) in Q2 2022, down from RMB1.0 billion in Q2 2021[6]. - Total revenue for the quarter ended June 30, 2022, was RMB 3,382 million, a decrease of 6% compared to RMB 3,587 million for the same quarter in 2021[84]. - Net income attributable to H World Group Limited for the quarter was a loss of RMB 350 million, compared to a profit of RMB 378 million in the same quarter of the previous year[84]. - Adjusted EBITDA for the quarter ended June 30, 2022, was RMB 53 million (approximately USD 7 million), a significant decrease from RMB 1,043 million in the same quarter of 2021[88]. - The company reported a loss from operations of RMB 700 million for the six months ended June 30, 2022, compared to a profit of RMB 54 million in the same period of 2021[92]. Operational Metrics - The average daily rate (ADR) for Legacy-Huazhu hotels was RMB218 in Q2 2022, down from RMB255 in Q2 2021[12]. - The occupancy rate for all Legacy-Huazhu hotels was 64.6% in Q2 2022, compared to 82.3% in Q2 2021[12]. - RevPAR in Q2 2022 recovered to 69% of the 2019 level, with April and May 2022 at 53% and 65% respectively, improving to 86% in June 2022 due to lifted lockdowns[60]. - In Q2 2022, DH experienced a RevPAR recovery, with March 2022 RevPAR at 35% lower than 2019 levels, while June 2022 RevPAR was only 1% lower than 2019 levels[62]. - The average daily room rate for leased and owned hotels decreased by 21.7% year-over-year to RMB 243 in Q2 2022[96]. - The occupancy rate for leased and owned hotels was 62.9% in Q2 2022, down 18.1 percentage points from the previous year[96]. - Same-hotel RevPAR for economy hotels decreased by 34.8% year-over-year, from RMB 172 in June 2021 to RMB 112 in June 2022[99]. Cost and Expenses - Hotel operating costs in Q2 2022 were RMB2.97 billion (US$443 million), an increase from RMB2.74 billion in Q2 2021 and RMB2.81 billion in Q1 2022, primarily due to hotel network expansion and business recovery[32]. - In H1 2022, hotel operating costs totaled RMB5.8 billion (US$864 million), up from RMB5.2 billion in H1 2021, with Legacy-Huazhu segment costs representing 93.4% of revenue compared to 76.2% in 2021[33]. - Selling and marketing expenses in Q2 2022 were RMB142 million (US$21 million), a decrease from RMB161 million in Q2 2021 and RMB122 million in Q1 2022, with Legacy-Huazhu segment expenses at 2.6% of revenue[34]. - General and administrative expenses in Q2 2022 were RMB368 million (US$55 million), down from RMB392 million in Q2 2021 and RMB462 million in Q1 2022, with Legacy-Huazhu segment expenses at 10.8% of revenue[36]. - The company experienced a significant increase in personnel costs, which rose to RMB 899 million for the quarter, compared to RMB 757 million in the same quarter of 2021[84]. Cash Flow and Liquidity - Operating cash inflow in Q2 2022 was RMB989 million (US$147 million), while operating cash inflow in H1 2022 was RMB68 million (US$11 million), down from RMB281 million in H1 2021[57][58]. - As of June 30, 2022, the company had cash and cash equivalents of RMB4.6 billion (US$693 million) and total debt of RMB10.4 billion (US$1.6 billion)[59]. - The company reported a net cash provided by operating activities of RMB 989 million (approximately USD 147 million) for the quarter ended June 30, 2022, compared to RMB 1,238 million in the same quarter of 2021[85]. - The company reported a net cash used in investing activities of RMB 201 million (approximately USD 10 million) for the quarter ended June 30, 2022, compared to RMB 582 million in the same quarter of 2021[85]. - The net cash provided by financing activities for the quarter ended June 30, 2022, was RMB 146 million (approximately USD 22 million), a decrease from RMB (185) million in the same quarter of 2021[85]. Future Outlook - H World expects revenue in Q3 2022 to increase by 13% to 17% compared to Q3 2021, or by 5% to 9% excluding Legacy-DH[9]. - The company will suspend providing annual revenue guidance due to the unpredictable business performance caused by COVID-19 in China[63]. - DH is focusing on cash flow improvement measures, including efficiency improvements and re-negotiation of lease contracts[62]. Hotel Portfolio - As of June 30, 2022, H World had a total of 2,236 unopened hotels in its pipeline, including 2,199 from Legacy-Huazhu[10]. - As of June 30, 2022, H World operated 8,176 hotels with 773,898 rooms across 17 countries[78]. - H World operates 14% of its hotel rooms under lease and ownership models, and 86% under manachise and franchise models[79]. - The number of leased and owned hotels as of June 30, 2022, was 646, with a net addition of 5 hotels in Q2 2022[93]. - The total number of operational hotels as of June 30, 2022, was 8,051, with a total of 748,942 rooms[93]. - The company has 985 unopened hotels in the pipeline as of June 30, 2022[104]. - Five new hotels were opened in Q2 2022, contributing to a total of 125 hotels as of June 30, 2022[101].