Group 1: Inventory and Sales Performance - The company measures inventory impairment based on the lower of cost and net realizable value, recognizing impairment losses when the net realizable value is below cost [3] - In the first four months of 2025, the company achieved a cumulative contracted sales area of 396,000 square meters, an increase of 11% year-on-year, with a contracted sales amount of 6.14 billion yuan, up 2% year-on-year [3] Group 2: Debt Management and Financing - The company aims to maintain a stable yet decreasing overall debt scale, with a comprehensive financing cost of 3.62% as of the end of 2024, down by 29 basis points from the beginning of the year [4] - The company has an approved loan quota of 40 billion yuan from the parent group each year, with borrowing rates not exceeding those from financial institutions [4] Group 3: Tourism and IP Utilization - The company is innovating its tourism business by updating existing projects and enhancing visitor experiences through themed events and IP integration [5] - The company is developing new products like "Water Park+" and "Family Entertainment Centers" to expand market reach and enhance profitability [5] Group 4: Real Estate Development Strategy - The company focuses on acquiring land in first-tier and strong second-tier cities, leveraging market conditions to optimize resource allocation [6] - The company emphasizes high-quality housing development, integrating new technologies and materials to enhance product standards [7] Group 5: Shareholder Engagement and Market Value Management - The parent company has completed a round of share buybacks, acquiring 64,877,064 shares to support market stability and investor confidence [7] - The company plans to continue enhancing market value management through communication with major shareholders and potential share repurchase initiatives [7]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $339.9 million, a modest increase of 0.7% compared to $337.7 million in the previous year [16] - Adjusted EBITDA decreased to $117.3 million from $122.8 million, with same store sales declining by 5.6% [16][19] - Same store sales acted as a $19 million headwind to the bottom line, despite improvements in payroll and cost reductions [16][17] Business Line Data and Key Metrics Changes - Retail business remained steady, league operations experienced low single-digit growth, while the events business faced high single-digit decline [16] - Comparable food sales rose by 1%, with total food sales up 8% year over year, indicating a positive consumer response to food initiatives [13][60] - The league business is described as sticky, high frequency, and loyal, continuing a multi-year growth trajectory [8][12] Market Data and Key Metrics Changes - California, accounting for 21% of total sales, contributed nearly 50% of the same store sales decline, primarily due to softness in the Los Angeles market and declines in corporate events [17][18] - Early sales of summer season passes were up over 200% year over year, indicating a shift in consumer preference towards local entertainment [10][48] Company Strategy and Development Direction - The company is focused on adjusting its cost structure to increase operating leverage while investing in growth through acquisitions and new builds [12][18] - A recent acquisition of Shipwreck Island for $30 million is expected to enhance the company's portfolio and long-term potential [18] - The company is committed to a disciplined approach to capital investments, prioritizing high-return remodels and rebranding initiatives [56][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in corporate events and overall business performance as macroeconomic conditions improve [9][24] - The sentiment among management is positive, with expectations for improved performance starting in the summer as they cycle past tougher comparisons [18][49] - Management highlighted the importance of proactive sales strategies and returning sales personnel to the office to enhance corporate engagement [45][75] Other Important Information - The company has maintained a strong liquidity position with $391 million in total liquidity and no borrowings on its revolver [19] - Capital expenditures year to date are down $40 million compared to last year, reflecting a focus on cost efficiency [19][90] Q&A Session Summary Question: Could you elaborate on walk-in versus corporate trends? - Management noted that corporate events have been significantly impacted by macroeconomic conditions, while other business segments have shown surprising strength [22][26] Question: What caused the negative same store sales? - The corporate business deteriorated in February and March, primarily due to external factors such as the California fires and broader economic uncertainty [39][40] Question: Why was guidance removed? - Management indicated that it was challenging to provide meaningful guidance due to the short-cycle nature of the business and external uncertainties [44][49] Question: How is the rebranding initiative performing? - The rebranding has led to increased foot traffic and consumer excitement, with plans to continue rebranding efforts [56][58] Question: What are the expectations for SG&A costs? - SG&A costs are expected to decrease, with a focus on maintaining flat or reduced costs while growing revenue [96][97]