Core Viewpoint - Shanghai Jin Jiang International Hotel Co., Ltd. (hereinafter referred to as "Jin Jiang Hotel") has released its 2025 half-year performance forecast, indicating a significant decline in net profit compared to the previous year, primarily due to the absence of non-recurring gains that were present in the same period last year [1][4][5]. Financial Performance Summary - Jin Jiang Hotel expects to achieve a net profit attributable to shareholders of between 360 million to 400 million yuan for the first half of 2025, a decrease of 448 million to 488 million yuan compared to the same period last year, representing a year-on-year decline of 52.81% to 57.53% [1][4]. - The company anticipates a net profit attributable to shareholders after deducting non-recurring gains of between 390 million to 410 million yuan, which would show a slight increase of 1.48 million to 21.48 million yuan, or a year-on-year growth of 0.38% to 5.53% [1][4]. - In the first half of 2024, the company reported a total profit of 1.255 billion yuan and a net profit attributable to shareholders of 848 million yuan [4]. Reasons for Performance Change - The primary reason for the expected decrease in net profit is the lack of similar non-recurring gains in the first half of 2025, as the previous year included a tax-adjusted non-recurring gain of 459 million yuan from the sale of a subsidiary and strategic exits from several properties [4][5]. - In the first quarter of 2025, Jin Jiang Hotel's revenue was approximately 2.942 billion yuan, a year-on-year decrease of 8.25%, and the net profit attributable to shareholders was about 36.01 million yuan, down 81.03% year-on-year [5]. Strategic Focus and Future Outlook - Jin Jiang Hotel is focusing on divesting non-core assets to concentrate resources on hotel operations and brand development, which is expected to enhance long-term profitability [5]. - The company is committed to improving hotel operational efficiency, management efficiency, and upgrading its membership system to enhance service quality and expand into lower-tier markets [5]. - Jin Jiang Hotel has submitted an IPO application to the Hong Kong Stock Exchange, aiming to become the first hotel company listed in both A-share and H-share markets [5][7]. Use of IPO Proceeds - The funds raised from the IPO will be allocated to capital expenditures to strengthen overseas hotel operations, digital transformation, repayment of high-interest bank loans, and general corporate purposes [7]. - The company is integrating its global hotel internet platform, procurement platform, and shared services platform to enhance operational management and improve efficiency [7].

Core Viewpoint - Tongcheng Travel has acquired 100% equity of Wanda Hotel Management for approximately 2.49 billion yuan, marking a significant acquisition in the hotel industry, with the aim of enhancing its competitiveness in the high-end hotel sector [5][10]. Group 1: Acquisition Details - The acquisition involves 204 high-end hotels under Wanda Hotel Management, which includes brands like Wanda Ruihua and Wanda Wenhua, with a total of over 40,200 rooms and 376 hotels signed for future openings [5][7]. - The transaction price of 2.49 billion yuan corresponds to an estimated valuation multiple of about 9.5 times the adjusted EBITDA for 2023, which is competitive compared to other hotel groups [8][10]. - This acquisition is seen as a strategic move for Tongcheng Travel to strengthen its position in the high-end hotel management market, which is experiencing rapid growth [10][11]. Group 2: Market Context and Strategic Implications - The hotel management market in China is expected to grow, and Wanda Hotel Management has a well-established brand portfolio and experienced management team, which will enhance Tongcheng Travel's competitive edge [10][11]. - The acquisition allows Tongcheng Travel to move beyond being a mere OTA platform and extend its reach into the offline hotel business, thereby gaining better control over the supply chain [10][11]. - The high-end hotel segment is considered a critical area for competition, with significant potential for revenue growth, making this acquisition a timely and strategic decision [11][13]. Group 3: Future Integration and Synergies - Post-acquisition, the focus will be on how Tongcheng Travel can integrate Wanda Hotel Management's team and leverage its existing user base to enhance operational efficiency [14]. - The successful collaboration between the teams will be crucial for achieving synergies and maximizing the value of the acquisition [14].