Financial Data and Key Metrics Changes - The company generated over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all showing year-over-year increases [6][19] - Adjusted EBITDA grew 2% year-over-year, translating to a 4% adjusted EBITDA growth for the first half of the year [19] - The average FICO score of new originations is 746, reflecting a more than 20-point increase since the company updated its credit quality standards [10] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw revenue grow 6% to $853 million, driven by a 3% increase in tours and a VPG of $3,251, which is up 7% from last year [20] - The Travel and Membership segment's revenue was $166 million for the quarter, down 6% year-over-year, with adjusted EBITDA declining 11% to $55 million [22] Market Data and Key Metrics Changes - Demand remains strong across the core timeshare business, with tour growth improving sequentially from the first quarter and 3% compared to 2024 [7] - The company serves more than 800,000 owner families with an average tenure of 17 years, indicating a stable customer base [9] Company Strategy and Development Direction - The company is focused on growing its core vacation ownership business while leveraging data and technology to enhance customer experience [13] - New brand expansions include a new sales location in Nashville and the launch of the Accor Vacation Club in Asia, indicating a strategy of geographic expansion [14][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of leisure travel and the health of consumers, with spending on leisure travel expected to grow mid-single digits per year over the next five years [7] - The company anticipates continued strength in the vacation ownership business, which is expected to cover any weakness in the travel and membership segment [26] Other Important Information - The company returned $107 million of adjusted free cash flow to shareholders during the quarter, with $37 million through dividends and $70 million in share repurchases [23] - The liquidity position remains strong, ending the quarter with over $800 million, including $212 million in cash and cash equivalents [25] Q&A Session Summary Question: Visibility in the Travel and Membership segment - Management acknowledged challenges in the travel membership segment due to industry consolidation and unanticipated impacts from M&A activity, but emphasized proactive measures to address these issues [31][32] Question: Average transaction size and financing - Management noted that the increase in average transaction size is due to measured price increases and greater owner engagement, with no significant change in the propensity to finance [35][38] Question: Delinquency trends and provisions - Delinquencies moderated through the second quarter and into July, with a full-year provision of 21% expected, and management is confident in the portfolio's strength [46][47] Question: Consumer health and income stratification - Management indicated that higher household incomes correlate with better performance and lower delinquencies, while new owner performance remains strong despite economic uncertainties [56][58] Question: International opportunities with Accor - Management expressed optimism about the international market potential but emphasized that the U.S. market remains the primary focus, with expectations for similar profitability margins internationally [74][78] Question: New projects and brand launches - Management highlighted the strategic importance of new brands like Margaritaville and Sports Illustrated, which are expected to contribute significantly to sales growth [90][91]

Group 1 - The first quarter revenue met expectations, with profits exceeding market expectations by 9%. The company anticipates a 14% revenue increase in the second quarter, with adjusted operating profit remaining flat year-on-year [1] - The first quarter performance for 2025 showed revenue of 13.8 billion RMB, a 16% year-on-year increase, aligning with market expectations. Key segments included accommodation (+23%), transportation (+8%), vacation (+7%), and business travel (+12%) [1] - The number of hotel nights in mainland China increased by over 15% year-on-year, with average daily rates (ADR) showing a slight decline, which is better than the industry average [1] Group 2 - Trip.com reported a nearly 60% year-on-year revenue increase, accounting for approximately 13% of total revenue. Adjusted net profit rose 3% to 4.2 billion RMB, exceeding market expectations by 10% and 9% due to lower-than-expected marketing expenses [2] - The company expects a 14% revenue increase in the second quarter, with hotel and transportation segments projected to grow by 17% and 9%, respectively. Hotel night volumes in mainland China and outbound markets are expected to increase by 10-15% and 15-20% [2] - The competitive landscape in the industry is expected to alleviate some monetization pressure, although profit margins are projected to decline due to ongoing investments in overseas branding [2]

Core Viewpoint - The tourism market in China is experiencing strong growth, with domestic travel and spending increasing significantly during the May Day holiday, indicating a robust recovery and structural highlights in long-distance travel, county tourism, and outbound travel [1][2][12]. Overview - During the May Day holiday, 314 million domestic trips were made, representing a 6.4% year-on-year increase, while total spending reached 180.27 billion yuan, up 8.0% year-on-year. Per capita spending improved by 1.5%, recovering to approximately 90% of 2019 levels [2][12]. - The total cross-regional movement of people was estimated at 1.467 billion, a growth of 8.0% year-on-year, exceeding previous expectations [2]. Structure - **Long-distance Travel**: Destinations like Qinghai, Xinjiang, and Ningxia saw ticket sales surge by 100-200%. The number of travelers combining annual leave with the holiday increased by 30% [3]. - **County Tourism**: Bookings for rural tourism rose nearly 20%, with hotel reservations in county-level cities increasing by 30% [3]. - **Outbound Travel**: Orders for outbound travel increased by 20%, with popular destinations including Japan, South Korea, and Thailand. Inbound travel orders surged by 130% [4][3]. Scenic Spots and Destinations - Scenic spots experienced strong visitor numbers, with many achieving record attendance. For instance, Huangshan received 147,000 visitors, a 13.7% increase year-on-year [5][6]. - Other notable performances included Jiuhua Mountain and various cultural performances, which also saw significant increases in attendance [6][5]. Hotel Performance - Hotel occupancy rates averaged 67.5%, up 4.9% year-on-year, with average daily rates (ADR) at 283.8 yuan, a 6.8% increase. Revenue per available room (RevPAR) rose by 12.0% [8][9]. - The demand for higher-quality accommodations is evident, with economic hotels seeing the largest price increases [8]. Macau Gaming - Macau saw a significant increase in visitor numbers, with a 42.3% year-on-year rise during the holiday period. However, expectations for gaming revenue growth remain cautious due to previous market performance [10]. - The average daily gross gaming revenue (GGR) is expected to exceed last year's figures, reflecting a recovery in the tourism sector [10]. Investment Strategy - The outlook for the tourism sector remains positive, with expectations for continued demand recovery and improved supply conditions. Recommended sectors include high-elasticity consumer stocks, hotels, human resources, and quality stocks in scenic spots and gaming [12].

Core Viewpoint - The company experienced a decline in revenue and net profit in 2024, with a slight recovery in Q1 2025, indicating challenges in the external environment affecting various business lines [1][2][3]. Financial Performance - In 2024, the company achieved operating revenue of 536 million, a year-on-year decrease of 14.87%, and a net profit of 101 million, down 27.77% [1]. - For Q1 2025, the company reported operating revenue of 105 million, a decrease of 1.6%, but net profit increased by 34.46% to 13 million [1][3]. - The overall gross margin in 2024 decreased by 1.92 percentage points to 52.42%, while the net margin fell by 4.17 percentage points to 22.55% [2]. Business Segment Analysis - Revenue from various business lines declined due to external environmental factors, with the water park segment experiencing the most significant drop of 41.28% [2]. - The revenue changes for 2024 by business line were as follows: scenic area business down 13.03%, water world down 41.28%, hot spring business down 10.4%, hotel business down 23.1%, and travel agency business down 4.54% [2]. Profitability and Cost Management - In Q1 2025, the gross margin improved by 3.27 percentage points to 41.44%, while the expense ratio increased by 1.49 percentage points to 21.24% [3]. - The company’s strategic focus includes seeking quality acquisition opportunities and upgrading existing projects, such as the Yushui Hot Spring and Longxing Island projects [3]. Strategic Outlook - The company is positioned as a leading player in the scenic area sector, with plans for future growth through new projects and geographical expansion [4]. - Projected net profits for 2025-2027 are estimated at 126 million, 144 million, and 161 million, with corresponding price-to-earnings ratios of 26X, 23X, and 20X [4].