Building a future Sharing a dream 2024 Annual Results 28 March 2025 1 Agenda | Opening Remarks | Vincent Lo | | --- | --- | | | Chairman | | Business Review and | Stephanie Lo | | Outlook & Strategy | Vice Chairman | | Key Financial Highlights | Douglas Sung | | | CFO & CIO, Shui On Land | | Property Sales & Development | Jessica Wang | | | CEO, Shui On Land | | Commercial Asset Management | Allan Zhang | | | CEO, Shui On Xintiandi | 2 Opening Remarks Vincent Lo Chairman 3 Opening Remarks _______ Times of M ...

Core Viewpoint - H World Group Limited reported its unaudited financial results for Q1 2025, showing a year-over-year revenue increase of 2.2% to RMB5.4 billion (US$744 million) and a significant net income growth of 35.7% to RMB894 million (US$123 million) [4][21][22]. Financial Performance - Total hotel turnover increased by 14.3% year-over-year to RMB22.5 billion in Q1 2025, with a 15.3% increase excluding Legacy-DH [4]. - Revenue from manachised and franchised hotels rose by 21.1% year-over-year to RMB2.5 billion (US$344 million) [12]. - Revenue from the Legacy-Huazhu segment was RMB4.5 billion, a 5.5% year-over-year increase, while the Legacy-DH segment saw a decline of 11.3% to RMB918 million [4][9]. Operational Highlights - As of March 31, 2025, H World operated 11,685 hotels with 1,142,158 rooms, including 11,564 hotels from Legacy-Huazhu and 121 from Legacy-DH [2][37]. - The company opened 694 hotels in Q1 2025, contributing to a total of 2,888 hotels in the pipeline [2][8]. - The average daily room rate (ADR) for Legacy-Huazhu hotels was RMB272, with an occupancy rate of 76.2% [5][6]. Cost and Expenses - Total operating costs and expenses in Q1 2025 were RMB4.4 billion, reflecting a slight increase of 0.5% year-over-year [14]. - Hotel operating costs were RMB3.6 billion, a 1.1% year-over-year increase, primarily due to a 4.2% increase in Legacy-Huazhu costs [14]. Cash Flow and Debt - Operating cash inflow for Q1 2025 was RMB580 million (US$80 million), while investing cash inflow was RMB757 million (US$103 million) [24]. - As of March 31, 2025, the company had total cash and cash equivalents of RMB8.2 billion (US$1.1 billion) and total debt of RMB5.3 billion (US$726 million) [25][24]. Future Guidance - For Q2 2025, H World expects revenue growth in the range of 1%-5%, or 3%-7% excluding Legacy-DH, with manachised and franchised revenue growth anticipated at 18%-22% [26].