Core Viewpoint - Despite expanding its hotel network by 380 new openings in the first half of 2025, Jinjiang Hotels (600754), the largest hotel group in China, has faced a decline in both revenue and net profit, indicating a challenging operational environment [1][2]. Financial Performance - In the first half of 2025, Jinjiang Hotels reported operating revenue of 6.526 billion yuan, a year-on-year decrease of 5.31%, and a net profit attributable to shareholders of 371 million yuan, down 56.27% [1][2]. - The company's hotel business generated approximately 6.423 billion yuan in revenue, a decline of 5.14%, with a net profit of about 240 million yuan, down 66.16% [2][4]. Key Operational Metrics - The average revenue per available room (RevPAR) for full-service hotels decreased by 10% to 216.67 yuan, while mid-range and economy hotels also saw declines of 7% and 4% respectively [2][3]. - The average room rate for full-service hotels fell from 511 yuan to 461 yuan, and for limited-service hotels from 246 yuan to 231 yuan, indicating a price reduction strategy that has not compensated for revenue losses [4][5]. Expansion Strategy - Jinjiang Hotels continues to pursue an expansion strategy primarily through a franchise model, with over 96% of its 12,650 domestic hotels being franchise operations [5][6]. - The company faces challenges in maintaining brand standards and managing increased operational complexity due to rapid expansion [5]. International Operations - Jinjiang Hotels' international operations, particularly through the Louvre Group, have been a significant drag on overall performance, with continuous losses reported over the past five years [6][7]. - In the first half of 2025, the overseas limited-service hotel segment reported a net loss of 4.515 million euros, exacerbating the financial strain on the company [6][7]. IPO Plans - The company is seeking to initiate an IPO in Hong Kong to address its financial challenges, particularly the ongoing losses from its overseas operations [6][8]. - The funds raised from the IPO are intended for capital expenditures in overseas hotels, digital transformation, and debt repayment, aiming to alleviate financial pressure and improve capital structure [7][8].