2025-11-17 13:02Financial Data and Key Metrics Changes - The group revenue grew 8.1% year-over-year to RMB 7 billion in Q3 2025, surpassing previous guidance [19][60] - 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% [19][60] - The monetized and franchised business revenue increased by 27.2% year-over-year to RMB 3.3 billion, contributing over 70% to the total gross operating profit [12][20] Business Line Data and Key Metrics Changes - The number of rooms in operation increased by 17.3% year-over-year, with group hotel GMV growing by 17.5% to RMB 30.6 billion [11][51] - Membership base exceeded 300 million, up 17.3% year-over-year, with room nights sold to members rising 19.7% [11][58] - The gross operating profit from the monetized and franchised business rose by 28.6% year-over-year to RMB 2.2 billion [12][20] Market Data and Key Metrics Changes - Domestic travel demand continues to grow steadily, particularly during the National Day and Mid-Autumn Festivals [8][47] - Supply growth has stabilized, with year-over-year growth rates moderating [8][48] - The demand for leisure travel is shifting from discretionary to necessity, supported by improved infrastructure [6][45] Company Strategy and Development Direction - The company aims to deepen its roots in the Chinese market, focusing on high-quality growth and service excellence [7][46] - 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 [13][54] - The launch of the new upper-midscale brand, Ji Icons, aims to meet growing consumer demand for quality living and unique experiences [14][56] 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 supply-side reform and increasing consumer demand [4][46] - The outlook for Q4 2025 anticipates revenue growth of 2%-6%, with monetized and franchised revenue expected to grow by 17%-21% [21][63] - Management noted that while leisure demand is strong, business demand remains uncertain [25][69] Other Important Information - The company generated RMB 1.7 billion in operating cash flow, with RMB 13.3 billion in cash and cash equivalents at the end of the quarter [20][62] - The company is enhancing its membership program to improve engagement and direct sales capabilities [17][37] Q&A Session Summary Question: What is the implied RevPAR assumption for Q4 and the outlook for 2026? - Management indicated that RevPAR stabilized in Q3, driven by leisure travel demand, and expects flattish to slightly positive RevPAR for Q4 [25][68] Question: What are the reasons behind the recent ADR performance? - Management attributed the ADR increase to enhanced revenue management, product upgrades, and service excellence [27][72] Question: What are the plans for the newly launched Ji Icons brand? - Management expressed strong determination to develop the Ji Icons brand, focusing on store openings and leveraging cultural preferences [31][74] 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 revenue management [35][38]