JINJIANG HOTELS(SH:600754) Xin Lang Cai Jing·2025-07-16 07:59Core Viewpoint - Jin Jiang Hotels is accelerating its efforts to become the first hotel company listed in both A-share and H-share markets, despite facing significant challenges in its financial performance and market response [1][2]. Group 1: Company Overview - Jin Jiang Hotels has over 13,000 hotels and nearly 1.3 million rooms, leading the domestic chain hotel industry by a margin of 20.4% and 18.6% in hotel and room numbers compared to its closest competitor, Huazhu Group [1]. - The company is preparing to issue H-shares, with plans to raise funds primarily for expanding overseas operations, repaying bank loans, and supplementing working capital [1]. Group 2: Financial Performance - In 2024, Jin Jiang Hotels reported total revenue of 14.063 billion yuan, a decrease of nearly 600 million yuan compared to 2023, and a net profit of 911 million yuan, marking the first decline since the pandemic [2]. - The company's revenue and net profit are significantly lower than its peers, with Huazhu Group's revenue and net profit being 1.70 times and 3.35 times that of Jin Jiang Hotels, respectively [4]. - In Q1 2025, the company experienced an 8.2% decline in total revenue to 2.909 billion yuan, and a staggering 81% drop in net profit to 36.01 million yuan, resulting in a net profit margin of only 1.8% [6]. Group 3: Operational Challenges - The average daily rate (ADR) for Jin Jiang's limited-service hotels was approximately 240.67 yuan in 2024, a 4.4% decrease year-on-year, with an occupancy rate of 65.4%, which is lower than its competitors [4]. - In Q1 2025, the occupancy rate slightly improved to 60.9%, but the ADR fell to 225.83 yuan, indicating ongoing pricing pressures due to oversupply and weak consumer demand [6]. Group 4: International Operations and Risks - Jin Jiang Hotels has incurred over 300 million euros in losses from its overseas operations over the past five years, primarily due to aggressive acquisitions, including the full acquisition of the Louvre Hotels Group for 12.88 billion euros [7][8]. - The company has provided substantial guarantees for loans to its overseas subsidiaries, with 88.57 billion yuan in total guarantees, representing 57.5% of its net assets, which raises concerns about financial risk [9]. - As of Q1 2025, the company's goodwill reached 11.484 billion yuan, accounting for 73.2% of its net assets, posing a risk of significant impairment if overseas operations do not improve [11].