Core Viewpoint - The signing of multiple agreements between Shiji (US) Inc. and Amadeus Hospitality signifies a strategic partnership aimed at enhancing product connectivity and market reach in the hospitality technology sector [1][10]. Group 1: Contract Signing Overview - On September 11, 2025, Shiji (US) Inc., a wholly-owned subsidiary of Beijing Shiji Information Technology Co., Ltd., signed three agreements with Amadeus Hospitality, including the Partner Connectivity Agreement, Mutual Resale Agreement, and Mutual Referral Agreement [1][2]. - The agreements were approved in the company's seventh presidential office meeting of 2025 and do not require further board or shareholder approval as there is no related party relationship [2][3]. Group 2: Agreement Details - The Partner Connectivity Agreement establishes API connections between Shiji's DAYLIGHT PMS and Amadeus Hospitality's Central Reservation System (CRS) and other products, effective from September 15, 2025, with an initial term of five years [2][5][7]. - The Mutual Resale Agreement allows Amadeus Hospitality to act as a non-exclusive marketing and sales agent for DAYLIGHT PMS, while Shiji (US) Inc. will promote Amadeus products, also effective from September 15, 2025, for five years [6][8]. - The Mutual Referral Agreement facilitates mutual recommendations of each other's products to potential clients, also effective from September 15, 2025, with a five-year initial term [9][10]. Group 3: Impact on the Company - The agreements represent recognition of Shiji's brand, products, and technology by a global travel technology company, enhancing competitive advantages and providing integrated support services in the hotel industry [10]. - The collaboration is expected to accelerate the global market penetration of Shiji's cloud-based hotel management system, particularly among hotels already using Amadeus products, thereby attracting more international brand clients [10]. - While the agreements are expected to positively influence the company's global business expansion, they are considered framework agreements and are not anticipated to have a significant impact on the company's financial performance in the current year [11].

Core Insights - Shiji Information (002153.SZ) announced that its wholly-owned subsidiary, Shiji (US) Inc., has signed multiple agreements with Amadeus Hospitality, including the Partner Connectivity Agreement, Mutual Resale Agreement, and Mutual Referral Agreement [1] Group 1: Agreements Overview - The Partner Connectivity Agreement outlines the API connections between Shiji's products, such as DAYLIGHT PMS, and Amadeus Hospitality's specific products, including the Central Reservation System (CRS) and Delphi sales banquet system [2] - The Mutual Resale Agreement authorizes Amadeus Hospitality to act as an agent for Shiji's specific products, while Shiji (US) Inc. is authorized to act as an agent for certain products of Amadeus Hospitality, with both parties agreeing not to represent competing third-party suppliers [2] - The Mutual Referral Agreement establishes a partnership for mutual referrals, where Amadeus Hospitality will recommend Shiji's DAYLIGHT PMS and INFRASYSPOS, and Shiji (US) Inc. will recommend specific products from Amadeus Hospitality [2]

Group 1 - The company recently hosted an investor meeting with HSBC Qianhai Securities to discuss various operational updates and future plans [1] - The integration of DAYLIGHT PMS with Marriott's new central reservation system ACRS is progressing according to the planned timeline [1] - SaaS business pricing is subscription-based, with cloud PMS products charged monthly based on the number of hotel rooms and the functionalities used [1] Group 2 - The decline in hotel business gross margin is attributed to increased amortization costs of intangible assets starting from the end of 2023 [1] - The company plans to maintain overall R&D investment levels to integrate more subsystems of the hotel information system with DAYLIGHT PMS [1] - The fourth quarter loss last year was mainly due to impairment of long-term equity investments in associates and increased bad debt provisions for long-aged receivables [1] Group 3 - The company has signed a contract with Marriott, which is expected to accelerate future signing processes and enhance the recognition of DAYLIGHT PMS in the industry [1] - INFRASYS POS, the cloud restaurant management system, has signed with all top five global hotel groups and is on a fast development track, with good rollout expected by the end of 2024 [1] - The company utilizes a direct connection system for OTA bookings to improve efficiency and reduce operational costs [1]

Group 1: Business Operations - The integration with Marriott's new generation central reservation system (ACRS) is currently in progress, following Marriott's planned timeline [1] - The SaaS business charges subscription fees based on monthly usage and the number of hotel rooms, with pricing varying for different service types [1] - The rollout of DAYLIGHT PMS in hotels outside of InterContinental's China region is still under evaluation [2] Group 2: Financial Performance - The gross margin for hotel business is expected to decline in 2023 and 2024 due to increased amortization costs of intangible assets starting from the end of 2023 [2] - The company experienced significant losses in Q4 of the previous year primarily due to impairment of long-term equity investments and increased bad debt provisions for aged receivables [4] - The risk of significant goodwill impairment this year is considered low, pending the results of year-end asset impairment testing [4] Group 3: Future Outlook - The company plans to maintain its overall R&D investment to integrate more subsystems with DAYLIGHT PMS and to support its diverse software products [3] - Recent agreements with Marriott, a leading global hotel group, are expected to accelerate future signing processes with other clients in the industry [4] Group 4: Product Development - INFRASYS POS, the cloud-based restaurant management system, has signed contracts with all top five global hotel groups, with a total of 4,333 clients expected to be online by the end of 2024 [4] - The system enhances booking efficiency and reduces costs by connecting customer information systems directly with various booking channels and payment institutions [5]

Group 1: Global Expansion and Client Acquisition - INFRASYS POS has signed all top five international hotel groups, with a total of 4,333 clients expected by the end of 2024 [1] - DAYLIGHT PMS has been implemented in 629 hotels across over 20 countries, aiming to leverage flagship clients for further international hotel group contracts [2] - New contracts signed in 2024 include notable clients such as MELCO, Kempinski, and Rosewood, with significant progress in Europe and Asia-Pacific regions [4] Group 2: Research and Development Costs - The company maintains a global strategy for R&D, sales, and service networks, despite high costs in overseas markets, particularly in Europe [3] - Ongoing investments in overseas projects are expected to continue as the company undergoes a critical phase of globalization [3] Group 3: Market Positioning and Product Offerings - DAYLIGHT PMS targets international chain hotels and luxury regional hotel groups, focusing on strong group control rather than just hotel tier [6] - Additional cloud PMS products are available for local star-rated hotels with international management features, such as Cambridge cloud hotel management system and XMS [6] Group 4: Shareholding and Management Stability - The company has reacquired shares in Sihon Software to maintain the founding shareholders' stake, which is beneficial for management stability and employee motivation [7]