2025-11-17 13:00Financial Data and Key Metrics Changes - The group revenue grew 8.1% year-over-year to RMB 7 billion in Q3 2025, surpassing previous guidance [42] - Adjusted EBITDA rose by 18.9% year-over-year to RMB 2.5 billion, with a margin improvement of 3.3 percentage points to 36.1% [42][43] - Operating cash flow generated in Q3 was RMB 1.7 billion, with cash and cash equivalents at RMB 13.3 billion [43] Business Line Data and Key Metrics Changes - The monetized and franchised business revenue increased by 27.2% year-over-year to RMB 3.3 billion, contributing over 70% of the group's total gross operating profit [37][43] - The number of rooms in operation grew by 17.3% year-over-year, with group hotel GMV rising 17.5% to RMB 30.6 billion [36] - Membership base exceeded 300 million, up 17.3% year-over-year, with room nights sold to members increasing by 19.7% [36][41] Market Data and Key Metrics Changes - Domestic travel demand continues to grow steadily, particularly during the National Day and Mid-Autumn Festivals [35] - Supply growth has stabilized, with year-over-year growth rates moderating [35] Company Strategy and Development Direction - The company aims to deepen its roots in the China market, focusing on high-quality growth and service excellence [34] - Strategic focus remains on the economy and midscale segments to serve the mass market, with plans to achieve 20,000 hotels in 2,000 cities [38][39] - The launch of the new upper-midscale brand, Ji Icons, aims to meet growing consumer demand for quality living and unique experiences [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of China's hotel industry, driven by a shift in consumer demand from discretionary to necessity [34][35] - The outlook for Q4 2025 anticipates revenue growth of 2%-6%, with monetized and franchised revenue expected to grow by 17%-21% [44] Other Important Information - The company has made significant improvements in revenue management and pricing strategies, contributing to better performance metrics [48] - The membership program is a core strategy for sustainable growth, with plans to enhance member benefits and engagement [41] Q&A Session Summary Question: What is the implied RevPAR assumption for the fourth quarter guidance? - Management indicated that RevPAR is stabilizing, driven by leisure travel demand, with expectations for flattish to slightly positive RevPAR in Q4 [46][48] Question: What are the reasons behind the recent ADR performance? - The increase in ADR is attributed to enhanced revenue management, product upgrades, and service excellence, leading to improved pricing power [50] Question: What are the plans for the newly launched Ji Icons brand? - The Ji Icons brand aims to become a core player in the upper-midscale segment, with further details to be shared after the first hotels open [27] Question: What is the outlook on cost control and margins? - Management highlighted ongoing efforts in cost control and margin improvement through supply chain optimization and strategic investments [27]