Investment Rating - The report maintains an "Outperform" rating for the social services industry, expecting it to perform better than the market index over the next 6-12 months [1]. Core Insights - The social services sector saw a 3.96% increase in the first two trading weeks of 2026, ranking 15th among 31 industries in the Shenwan classification. This performance outpaced the CSI 300 index by 1.77 percentage points [1][12]. - The New Year's holiday travel data showed positive trends, with 142 million domestic trips taken, a year-on-year increase of 5.2%, and total spending reaching 84.789 billion yuan, up 6.3% year-on-year [1][4]. - The report highlights the expectation for continued high demand in the travel sector, particularly with the upcoming Spring Festival holiday [4]. Summary by Sections Market Review & Industry Dynamics - The social services sector's performance was strong, with notable increases in sub-sectors such as education (+7.45%), professional services (+6.37%), and tourism retail (+3.77%) [12][16]. - Domestic air travel saw a total of 104,558 flights during the holiday period, a 1.99% increase from the previous week and 108.86% of the 2019 level [1][4]. Investment Recommendations - The report suggests focusing on companies with strong growth potential in the travel chain and related industries, including Tongcheng Travel, Huangshan Tourism, and Lijiang Shares, among others [4]. - It also recommends hotel brands like Jinjiang Hotels and ShouLai Hotels, which are expected to benefit from the recovery in business travel and increased market share [4]. Company Dynamics & Announcements - The report notes significant growth in the Hainan duty-free shopping market, with sales exceeding 1.21 billion yuan during the first week of January, marking an 88% year-on-year increase [28]. - The report mentions that the domestic hotel market is expected to see a price drop of over 50% compared to the upcoming Spring Festival holiday, indicating a favorable environment for travelers [28]. Travel Data Tracking - The report indicates that the recovery of business travel is nearly complete, with ongoing policy relaxations for inbound and outbound travel, including the expansion of visa-free entry for several countries [34].

Core Viewpoint - The company announced the suspension of the "Xiaohong Card" business effective January 1, 2026, after a trial period that began in September 2023, citing insufficient preparation to meet user needs [1][6]. Summary by Sections Announcement Details - The "Xiaohong Card" business received significant support since its launch during the "Street Life Festival" in September 2023 [1][6]. - The company acknowledged feedback from users who discovered local shops and new lifestyles through the card, but also recognized that it failed to meet expectations for local living richness and convenience [2][7]. Operational Changes - All cardholders will continue to enjoy full benefits until December 31, 2025 [3][8]. - From January 1, 2026, all Xiaohong Cards will automatically become invalid, and users will not need to take any action as full refunds will be processed [3][8].

Core Viewpoint - The company announced the suspension of the "Xiao Hong Card" business starting January 1, 2026, to focus resources on enhancing local lifestyle content and improving local transaction products and tools [1][5]. Summary by Sections Business Operations - The "Xiao Hong Card" was launched in September 2025 during the third "Ma Lu Life Festival" as a local lifestyle membership card, offering users access to various benefits such as event participation and discounts at selected stores [1][6]. - The card was limited to use in select stores in Shanghai, Hangzhou, and Guangzhou, where the festival was held [1][6]. User Experience and Feedback - The company received positive feedback from users who discovered new local stores and experiences through the card, but also acknowledged that their preparations were insufficient to meet user demands for variety and convenience in local lifestyle offerings [3][7]. Refund and Transition Plan - All cardholders can continue to enjoy their benefits until December 31, 2025, after which the cards will automatically become invalid, and full refunds will be processed without requiring any action from users [4][8]. - The company emphasized that this suspension only affects the "Xiao Hong Card" and that other local lifestyle services and features will remain available to users and merchants [2][5].