Financial Data and Key Metrics Changes - In 2025, the group revenue grew 5.9% year-over-year to CNY 25.3 billion, with Legacy-Huazhu's revenue rising by 7.9% to CNY 20.5 billion [23][24] - Group adjusted EBITDA increased 24.2% year-over-year to CNY 8.5 billion, with a margin improvement of 4.9 percentage points to 33.5% [23][24] - Adjusted net income rose by 32.9% year-over-year to CNY 4.9 billion [24] Business Line Data and Key Metrics Changes - The managed and franchised revenue increased by 23.1% year-over-year to CNY 11.7 billion, with gross operating profit rising by 20.8% to CNY 7.6 billion [24] - The number of rooms in operation grew by 16.2% year-over-year, contributing to a group hotel GMV increase of 16.4% to CNY 108.1 billion [9][24] - Room nights sold to members rose 21.5% year-over-year, exceeding 245 million in 2025 [9] Market Data and Key Metrics Changes - Demand for travel in China is shifting from discretionary to necessity, with increasing trips and consumer spending [4] - The hotel industry faces oversupply of low-quality products, while high-quality supply remains insufficient, indicating a need for supply-side reform [5] Company Strategy and Development Direction - The company focuses on economy and mid-scale segments, aiming to provide value-for-money products and expand into lower-tier cities [5][6] - A brand-led approach is emphasized for high-quality growth, with ongoing upgrades to products and services [8][16] - The company aims to achieve a strategic goal of 2,000 cities and 20,000 hotels by 2030 [16] Management's Comments on Operating Environment and Future Outlook - Management is cautiously optimistic about RevPAR performance in 2026, expecting a flat to slight year-over-year increase [38] - The company plans to continue enhancing customer experience and operational efficiency while leveraging technology [16][21] Other Important Information - The company declared a $400 million cash dividend for the second half of 2025, contributing to a total shareholder return of approximately $760 million for the year [25] - A new CFO, Arthur Yu, has been appointed, with a focus on building a world-class finance function and maintaining transparent communications [29] Q&A Session Summary Question: Direction of the new CFO's role and expected changes - Management expressed confidence in the new CFO's ability to lead the company towards becoming a global leader, emphasizing the need for world-class management talent [31][34] Question: 2026 revenue guidance and demand-supply outlook - Management noted a recovering hotel industry in China, with growing leisure travel demand and a cautious optimism for RevPAR performance in 2026 [36][38] Question: Hotel opening pace and new brand targets - The company plans to open 2,200-2,300 new hotels in 2026, focusing on high-quality growth rather than just quantity [40][41] Question: Asset-light transformation strategy for Legacy-DH - Management highlighted ongoing efforts in cost control and portfolio restructuring, with plans to expand the hotel network internationally [47][48] Question: Future shareholder return plans - The company is committed to returning value to shareholders through dividends and share repurchases, supported by strong cash flow [50][52] Question: Plans for the upper mid-scale hotel segment - The company aims to become a leading brand in the upper mid-scale sector by 2030, focusing on a multi-brand strategy [54][56]