Core Viewpoint - Pudding Hotel is facing potential delisting due to negative net assets over the last three fiscal years, highlighting significant financial distress and operational challenges in the economy hotel sector [2][3][5]. Company Summary - Pudding Hotel, established in 2006, operates a range of economy and mid-range hotel brands, including Pudding, Pudding Select, and Zhishang [3]. - The company was listed on the New Third Board in 2016 as the "first internet hotel brand stock" but has since faced financial difficulties, leading to a change in its stock name to "ST Pudding" due to negative net assets in 2022 [3][5]. - Financial data shows that Pudding Hotel's revenue fluctuated from 185 million yuan in 2022 to 239 million yuan in 2024, with net profits of -81.31 million yuan in 2022 and -15.14 million yuan in 2024 [4][5]. - As of the end of 2024, the company reported total assets of 388 million yuan and total liabilities of 404 million yuan, resulting in a debt ratio of 104.01%, indicating insolvency [6]. Industry Summary - The economy hotel market in China is undergoing significant changes, with the segment still representing about 80% of the total hotel count but declining in proportion from 61% in 2019 to 55% in 2023 [8][9]. - Major players in the economy hotel sector include Jinjiang, Huazhu, and Shoulv Rujia, which together hold nearly 38% market share, intensifying competition for smaller brands like Pudding Hotel [9]. - The industry is experiencing a shift towards mid-range offerings, and Pudding Hotel is attempting to adapt by promoting its mid-range "Zhishang" brand and enhancing product offerings [9].