Summary of Conference Call Notes Industry Overview - **Industry**: China/Hong Kong Consumer - **Event**: National Day Holiday 2025 Key Points General Demand Trends - Holiday retail sales growth was +2.7% year-over-year (yoy) during the Golden Week (Oct 1-7), which is a deceleration compared to the 3.4% yoy growth in August [2][12] - Per capita travel spending remained largely flat yoy despite an additional day of holiday, indicating a lack of imminent overall demand recovery [1][12] Domestic Travel Insights - The number of domestic travelers increased by +16.1% yoy during Golden Week, with tourism revenue up +15.4% yoy, translating to Rmb101 billion daily [3][14] - Daily spending per traveler was Rmb911, which is a slight decline of -0.6% yoy, but the gap compared to 2019 has narrowed [3][14] Hotel Industry Performance - Revenue per available room (RevPAR) in the hotel industry showed low-single-digit positive growth yoy, driven by an increase in average daily rate (ADR) [4][12] Outbound Travel - Daily average visitors for both outbound and inbound travel grew by +11.5% yoy [4][12] Hainan Duty-Free Market - Duty-free sales in Hainan reached Rmb944 million during the holiday, with a daily average of Rmb118 million, marking a +5% yoy increase [6][12] - Daily per capita spending was Rmb7.7K, up +8% yoy, although this level is still 44% lower than the peak in 2021 [6][12] Box Office Revenue - Box office revenue was reported at Rmb1.8 billion, with a daily revenue decline of -25% yoy [7][12] Consumption Shifts - Consumption patterns are shifting towards travel, impacting traditional gathering and gifting demand, particularly affecting liquor and liquid milk sales [11][12] Stock Implications - The company remains selective on consumer stocks due to mixed underlying momentum across categories, with preferences for growth stocks like Pop Mart and Giant Biogene, turnaround stocks like Shenzhou and Yili, and balanced return/value stocks like YUMC and ANTA [12][12] Additional Insights - The overall demand recovery appears to be sluggish, with travel intentions not translating into proportional spending, indicating potential risks for consumer stocks [1][12] - The performance of retail and restaurant sectors during the holiday was uneven, with tourist destination stores benefiting while residential and office area stores suffered [11][12]