Core Viewpoint - Shanghai Jinjiang International Hotel Co., Ltd. reported a relatively strong performance in its 2025 semi-annual report despite the challenging conditions in the hotel industry, indicating a potential recovery phase and strategic reforms undertaken by the company [2][3]. Financial Performance - In the first half of 2025, Jinjiang Hotel achieved operating revenue of 6.526 billion yuan, a year-on-year decrease of 5.31% [3]. - The net profit attributable to shareholders after deducting non-recurring items was 409 million yuan, reflecting a year-on-year increase of 5.17%, marking the best mid-year profit performance since the company went public [3]. - In Q2 2025, the net profit attributable to shareholders after deducting non-recurring items reached 382 million yuan, showing a year-on-year growth of 17.11% and a quarter-on-quarter increase of 1335.32% [3]. Strategic Adjustments - Jinjiang Hotel has implemented a series of reforms to prepare for the recovery of the industry, moving away from the traditional growth logic of "scale equals growth" to a new growth strategy [3][4]. - The company strategically exited several hotel properties, which impacted its revenue and net profit, but allowed for a focus on core operations [4][5]. Operational Efficiency - The management has initiated organizational reforms and digitalization efforts to enhance operational efficiency, including shortening decision-making processes and improving responsiveness to market changes [7][8]. - The management expense ratio decreased to 15.62%, down 2.66% year-on-year, indicating improved cost management [9]. Digital Transformation - Jinjiang Hotel has unified its hotel management systems across 10,000 locations, enhancing standardized management and operational efficiency [12][13]. - The company has increased its direct connection rate to 75% through the elimination of private connections with OTAs, aiming for 80% by the end of the year, which will help streamline pricing and inventory management [17].