Core Insights - Q3 revenue exceeded guidance with 7 billion yuan, a year-on-year increase of 8.1%, surpassing the upper limit of the guidance by 2% to 6% [1] - Net profit attributable to shareholders reached 1.47 billion yuan, up 15.4%, driven by asset-light strategies that improved gross margin by 0.6 percentage points, along with reduced one-time expenses and increased foreign exchange gains [1] - The company anticipates Q4 revenue growth of 2% to 6%, with RevPAR expected to stabilize or slightly increase [2] Financial Performance - Q3 adjusted EBITDA was 2.5 billion yuan, a year-on-year increase of 18.9%, with the DH segment contributing 70 million yuan, up 179% [1] - Management franchise and licensing revenue was 3.3 billion yuan, a year-on-year increase of 27.2%, exceeding the guidance growth rate of 20% to 24% [1] - Revenue from mainland operations was 5.7 billion yuan, up 10.8%, while DH segment revenue was 1.2 billion yuan, down 3.0% [1] Business Expansion - As of Q3 2025, the number of stores in mainland China reached 12,580, a year-on-year increase of 17.5%, with franchise stores accounting for 95.8% [1] - A total of 749 new stores were opened in Q3, a decrease of 3.2%, with a net increase of 452 stores, up 6.0% [2] - The company aims to open 2,300 new stores and achieve a net increase of 1,700 stores for the full year [2] Market Outlook - The company expects RevPAR in Q4 to turn positive, with Q3 mainland RevPAR at 256 yuan, a slight year-on-year decrease of 0.1% [2] - Occupancy rate (OCC) decreased by 0.8 percentage points to 84.1%, while average daily rate (ADR) increased by 0.9% to 304 yuan [2] - The company has revised its profit forecast for 2025-2027, with net profits projected at 4.62 billion, 4.90 billion, and 5.40 billion yuan respectively, corresponding to PE ratios of 21, 20, and 18 times [2]