Financial Data and Key Metrics Changes - In Q4 2024, total revenue decreased by 18.2% year-over-year [11] - Hotel revenues were RMB240.2 million, a decrease of 17.1% [12] - Net income was negative RMB72.8 million, primarily due to impairments [12] - Adjusted net income increased by 26.8% to RMB77.3 million, with a margin of 25.4% [12] - Core net income decreased by 22.3% to RMB57.8 million, with a margin of 19% [12] - Adjusted EBITDA was RMB71.5 million, a decrease of 38.3% [12] - Cash from operations increased to RMB74.2 million from negative RMB13.5 million a year ago [12][25] Business Line Data and Key Metrics Changes - Hotel RevPAR decreased by 9.6% to RMB116 compared to Q4 2023 [11] - Restaurant ADS decreased by 16.8% [11] - Total revenues from LO hotels were RMB91 million, a 27.5% year-over-year decrease [19] - Total revenues from FM hotels were RMB148.2 million, a 9% year-over-year decrease [19] - Restaurant revenues were RMB65.1 million, a 25.8% year-over-year decrease [22] Market Data and Key Metrics Changes - RevPAR for LO hotels decreased by 2.1% to RMB158 [13] - RevPAR for FM hotels decreased by 9.8% to RMB115 [13] - Occupancy at LO hotels decreased to 65.5% from 66.9% [14] - Occupancy at FM hotels decreased to 68.6% from 72.5% [14] - Individual memberships grew to 102 million, up from 91 million a year ago [14] Company Strategy and Development Direction - The company plans to open approximately 480 new hotels in 2025, an increase from 405 in 2024 [9] - Focus on upgrading existing hotels with a target completion by summer 2026 [9] - Strategic transformation of the restaurant business with a focus on franchised and managed stores, which accounted for almost 90% of all stores [10] - Continued phased closure of leased and managed hotels in lower-tier cities [9] Management's Comments on Operating Environment and Future Outlook - Management expects flat organic hotel revenue for 2025, with a gradual recovery in RevPAR [30] - Observations indicate a shift towards leisure travel over business travel [30] - The company is focusing on flagship hotels in Tier one cities and franchise management [39] - Confidence in achieving 60 new restaurant openings in 2025 [48] Other Important Information - Total cash and cash equivalents decreased to RMB1,839.1 million as of December 31, 2024 [25] - The company plans to close about 200 hotels for a net addition of 280 hotels in 2025 [26] Q&A Session Summary Question: What is the RevPAR assumption for the full year flat organic hotel revenue forecast? - Management expects RevPAR to be flat for 2025, with a 5% decrease in Q1 and gradual recovery in subsequent quarters [30] Question: Overview of the strategy for the hotel business in 2025? - Plans to open 480 new hotels and upgrade existing hotels, focusing on flagship locations [35][36] Question: Why are so many LO hotels being closed? - Closures are due to lease expirations and a focus on flagship hotels in better locations [39] Question: Will the trend of increasing street stores in the restaurant business continue? - Yes, the trend will continue as street stores provide stable consumer traffic and better control over operating hours [44] Question: What can be expected in 2025 regarding restaurant openings? - Management anticipates 60 new restaurant openings in 2025 [48] Question: Any progress on increasing trading liquidity in shares? - Plans for a reverse merger to increase liquidity, with a focus on profitable operations and strong cash flows [52]