Hello, ladies and gentlemen, and thank you for standing by for GreenTree's first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, to Mr. Rene Vanguestaine of Christensen, GreenTree's investor relations firm. Please proceed, Rene. Thank you, Melanie. Hello, everyone, and thank you for joining us. GreenTree's earnings release was distributed earlier today and is available on our IR website at ir.998.com, as well as on PR Newswire Services. As a reminder, we also posted a PowerPoint presentation that accompanies our comments to the same IR website. On the call from GreenTree are Mr. Alex Xu, Chairman and Chief Executive Officer, Ms. Selina Yang, Chief Financial Officer, Ms. Megan Huang, the Vice President of Sales and Marketing, and Mr. Nicky Zheng, IR Manager. Mr. Xu will present the company's 1st quarter 2021 performance overview, followed by Ms. Huang, who will discuss business operations, and Ms. Yang will then discuss financials and guidance. They will be available to answer your questions during the Q&A session, which will follow. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as may, will, expect, anticipate, aims, future, intends, plans, believes, estimates, continue, target, is or are likely to, going forward, confident, outlook, and similar statements. Any statement that are not historical facts, including statements about the company and its industry, are forward-looking statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known and unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made during this conference call, are current as of today's date. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under applicable law. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Alex Xu. Mr. Xu, please go ahead. Thanks, Rene, and thanks everyone for joining our 2021 first quarter earnings call today. In this report, we will highlight our Q1 hotel developments and the performance. We will go into the details of our operations and financial performance. Because of the impact of COVID-19 on our operations in 2020, particularly in the first quarter, we will also occasionally provide Q1 2019 numbers for a more meaningful comparison. Please turn to slide five. We are glad to see our outstanding performance continue in the first quarter. Compared with Q1 2020, RevPAR increased 35.1% to RMB 95.5. Total revenues increased 53.3% to RMB 241.2 million. Income from operations increased 64.9% to RMB 61.4 million, with a margin of 25.4%. Net income turned positive to RMB 66 million with a margin of 27.4%. Non-GAAP adjusted EBITDA increased 74.3% to RMB 64 million with a margin of 26.5%. Core net income, non-GAAP, increased 58.3% to RMB 43.9 million with a margin of 18.2%. Earnings per share increased to RMB 0.68. The total revenues exceeded Q1 2019. Income from operations and adjusted EBITDA were half of Q1 2019 with the reasons outlined later. On slide six, shows considerable progress we have made since the pandemic began in January 2020. Total revenues, income from operations, adjusted EBITDA, and non-GAAP core net income all increased markedly compared with Q1 2020. Total revenues were up over Q1 2020 because of new hotel openings. This was partially offset by lower RevPAR from existing hotels. The lower income from operations and adjusted EBITDA compared with Q1 2019 resulted from costs related to newly opened LO hotels and increasing consulting fees. While RevPAR recovery was slowed down by the resurgence of COVID-19 in most part of China and recovered to only 75% of Q1 2019. Let's now turn to slide seven. The first quarter saw a robust recovery in occupancy rate and RevPAR compared with Q1 2020. We outperformed the industry by leveraging our strategic advantages, including continued deployment of hotel management systems and technologies, an expansive footprint in tier 3 and the lower cities, and our industry-leading loyalty program, as well as the hard work of our franchisees and staff. Slide eight shows our monthly RevPAR recovery as a percentage of 2019. We remain very encouraged by the strong recovery in China. While our occupancy rate declined in January and February 2021 due to the implementation of travel restrictions and the government's stay local policy during the Spring Festival, it rebounded quickly after this, as with more people get vaccinated and the more pent-up demand in China as travel restrictions are lifted. We saw a substantial month-over-month sequential increase in RevPAR in March, April, and May, especially during the Tomb-Sweeping Holiday and Golden Week. As we expected, these holidays really ushered in a resurgence in travel with 230 million domestic tourists traveling during the Golden Week. According to the report from the Ministry of Culture and Tourism, this represent 103.2% of the numbers of domestic tourists in the same period in 2019 and a year-over-year growth of 119.7%. Please turn to slide 10 to begin the discussion of our strategic focus and to share with everyone what we have done in the 1st quarter in new hotel developments. Besides technology-related research and development and member development, our current growth strategy focuses on three key parts. First, we are adding LO hotels in strategic locations. Second, we are further expanding in tier 3 and lower cities. Third, we are further penetrating the mid to upscale segment. Let's take a look at slide 11. During the quarter, we accelerated our expansion into the mid to high-end market in Central China, Southeast China, and Southwest China. We opened three LO hotels and have 20 LO hotels in our pipeline, all well-located around transportation hubs, central business districts, and the government centers. Please turn to slide 12. Over the past four years, the vast majority of our new hotel openings have been China's thriving tier 3 and the lower cities. 68.5% for all new hotels in our current pipelines are located in these cities. As a testament to the soundness of this strategy during the pandemic, the pace of recovery at our hotels in such cities was consistently faster than in other cities until the end of 2020, when business recovery in tier 2 cities accelerated. This combination of our existing footprint and our strong performance in these cities give us a real competitive advantage to capture future opportunities in China's booming hospitality industry. Now please turn to slide 13. We have been continuously growing our high-end segment over the past few years, and by the end of the first quarter of this year, hotels in this segment increased to 9.2% of our total portfolio, compared to only 2.2% in 2017. This year, we plan to open more hotels in the mid to upscales and the luxury segments. Slide 14 shows the impressive growth in both our individual and corporate membership programs, which accounted for most of the 92.2% of all direct sales in the first quarter. Individual memberships grow to 59 million from 46 million, and corporate memberships grow to 1.7 million from 1.5 million year-over-year. In closing, I would like to thank our team, franchisees, and shareholders for their tremendous efforts and support throughout the quarter. We achieved steady growth and opened more hotels in new strategic locations, despite some resurgence of COVID-19 in China. We are optimistic that travel will continue to recover as vaccine rollouts accelerate. This would help us deliver even better results next quarter. I will now pass the call over to Megan Huang, who will summarize our business operations for the first quarter. Megan, please go ahead. Thank you, Alex. Please turn to slide 16, which highlights the rebound in our operating metrics year-over-year from the impact of COVID-19. Blended ADR increased 0.8% to RMB 151. Occupancy rate increased 16.1% to 63.4%. The RevPAR increased 35.1% to RMB 96. We accelerated the expansion of our market presence across China, opening 201 new hotels in the first quarter. Moving to slide 17. At the end of the first quarter, we had 4,464 hotels in operation, 11.7% more than the year before. 43 of these hotels are leased and operated, or LO hotels, and 4,421 were franchise and managed, or FM hotels. While the mid-scale segment remains the core of our business with 64.2% of all our hotels. Last year, we continued our expansion into both the higher end and economy segment. This expansion accelerated in the first quarter as the number of mid to upscale and luxury hotels now account for 9.2% of our total portfolio, while the economy segment remains stable at 26.6%. As Alex mentioned, we also solidified our already dominant position in tier 3 and lower cities. At the end of the first quarter, 67.3% of our hotels were in these cities. This strategic advantage enhanced our cross marketing efforts. On slide 18, you can see that in the first quarter, we opened 201 hotels compared to 62 in the first quarter 2020. Three hotels were in the luxury segment, 33 in the mid to upscale segment, 136 in the mid-scale segment, and 30 in the economy segment. Nine were in tier 1 cities, 65 in tier 2 cities, and the remaining 127 in tier 3 and lower cities in China. 17.4% of newly opened hotels in the first quarter were in the mid to upscale and luxury segments of the market. We closed 77 hotels, six due to brand upgrade, 30 due to non-compliance with our brand and operating standards, and 41 due to property related issues. Net-net, we added 124 hotels to our portfolio during the quarter. Slide 19 shows the growth in our pipeline of new hotels. Despite COVID-19, our pipeline increased from 1,186 on December 31, 2020, to 1,265 on March 31, 2021. Around 41% of these new hotels are in the mid-scale segment, about 32% in the economy sector, and around 27% in the mid to upscale and the luxury segment. Slide 20 shows our quarterly operating performance trend. In the first quarter, RevPAR for our LO hotels increased to RMB 95. RevPAR for our FM hotels increased to RMB 96. ADR for our LO hotels increased to RMB 184, and ADR for our FM hotels increased to RMB 150. Occupancy at our LO hotels increased to 51.7%, and occupancy rate at our FM hotels increased to 63.7%. As mentioned earlier, performance in the first quarter was negatively impacted by the implementation of travel restrictions and the government's stay local policies during the Chinese Spring Festival. With that, I'll pass the call over to our CFO, Selina Yang. Thank you, Megan. Please turn to slide 21. Total revenues increased 53.3% year-over-year to RMB 241.2 million. Total revenue for FM hotels increased to 51.2% to RMB 177.9 million, while total revenue from LO hotels increased to 66% to RMB 56.1 million. On slide 22, total hotel operating costs were RMB 197.7 million, a 43.8% year-over-year increase, and a 51.6% increase compared with the first quarter 2019. Which are mainly attributable to higher rents and the increases in other costs due to the expansion of our FM and L&O hotels. In the first quarter, hotel operating costs were RMB 122.2 million. That's up 52.8% compared with the first quarter 2019. The increase was related to higher rents due to more LO hotels, both newly opened and in our pipeline. Besides, hotel operating costs in the first quarter 2021 included costs from Argyle and Urban that were not consolidated in the first quarter 2019 numbers. Excluding these factors, hotel operating costs increased by 3.5% compared with the first quarter 2019, which is mainly attributable to the increasing number of our staff. Selling and marketing expenses were RMB 18.1 million, a year-over-year increase of 1.6%, a decrease of 26.6% compared with the first quarter 2019. General administrative expenses were RMB 56 million, up 117.5% compared with the first quarter 2019. The increase was mainly attributable to increased consulting fees and the fact that in the first quarter of 2019, G&A expenses from Argyle and Urban were not consolidated in our performance. Excluding these factors, G&A compared with first quarter 2019 increased by 5.3%, mainly attributable to the increasing investment to research and development and newly added staff. Turning to slide 23. Income from operations defined as revenues minus to the operating costs and expenses totaled to RMB 61.4 million, representing a year-over-year increase of 64.9%. The increase was mainly due to the sustained recovery in RevPAR, the higher number of hotels, and better control of costs and expenses during this quarter. Operating margin was 25.4% compared to 23.6% a year ago. Compared with the first quarter 2019, income from operations decreased by 45.1% and margin decreased from 47.5%-25.4%, mainly attributable to costs related to newly open LO hotels and the impact from travel restrictions in January and February during the Spring Festival. On the same slide, net income increased to RMB 66 million, and net income margin increased to 27.4%. Adjusted EBITDA increased 74.3% to RMB 64 million, and the Adjusted EBITDA margin increased to 26.5% year-over-year. Core net income increased 58.3% to RMB 43.9 million, and core net margin was 18.2%. Compared with the first quarter of 2019, Adjusted EBITDA decreased by 43.2% and the margin decreased by 21.3%. The core net income decreased 52.4%, and the margin decreased by 21%, which are mainly attributable to lower RevPAR across the board and LO hotels newly opened and in the pipeline. Please turn to slide 24. Net income per ADS was RMB 0.68, that's $0.10, up from the loss of RMB 0.11 one year ago, and down from RMB 1.33 at first quarter 2019. Core net income per ADS, that's basic diluted non-GAAP, was RMB 0.43, that's $0.07, up from RMB 0.27 in the year of 2020 and down from RMB 0.91 at first quarter 2019. Let's take a look at slide 25. As of March 31st, 2021, the company had total cash and cash equivalents, restricted cash, short-term investments in equity securities, and time deposits of RMB 1.7 billion compared to RMB 1.9 billion as of December 31st, 2020. The decrease from the fourth quarter was primarily attributable to loans to franchisees, higher amount of prepaid rents and deposits, and acquisition costs of our L&O hotels, offset by the drawing down of bank facilities. The cash and cash equivalents provide us with enough capital as we continue to execute our growth strategy. Including potential acquisitions and support our franchisees. On slide 26, you can see the significant impact with COVID-19 has had on our business. Assuming the pandemic remains under control in China, we expect total revenues for the full year of 2021 to grow 48%-53% over 2020 levels, and 25%-30% over the year of 2019. This concludes our prepared remarks. Operator, we are now ready to begin the Q&A session. Thank you. We will now begin the question and answer session, to ask a question you may press star then one on your touch-tone phone. If you are using a speaker phone, please pick up the handset before pressing the keys. To withdraw your questions please press star then two. At this time we will pause momentarily to assemble our roster. Your first question comes from Praveen Choudhary with Morgan Stanley. Please go ahead. Hi. Thanks very much for taking my call. Hi, Alex. How are you? I have a couple of questions. The first one is, I understand this is first quarter result, would you tell us anything about the current outlook in terms of how the RevPAR is trending as well as the opening since the first quarter ended? Also, if you can talk about any particular reason for the first quarter results to be a little bit later than usual? Thank you so much. Okay. Thanks, Praveen. You can see from the paragraph in slide eight, the first quarter RevPAR was only about 75% of the pre-COVID level. After the April, pretty much RevPAR increased to 100% level and sometimes even higher, in a couple of cases, more than 108% or 6% higher. The same of the level of the pre-COVID. As the COVID resurgence is controlled, the RevPAR recovery is very rapid. We're pretty confident the recovery will continue. The slide eight, you can refer to that all the way, I think, to the end of June. The second issue is, we have hired consultant. We have assessing the situation, because in the past, many investors ask us what we should do with more Chinese companies are seeking alternative listings. We hired a consultant assessing the situation, and I think as a result of that, the numbers of the 1st quarter get delayed. That's basically the only reason. Thanks, Praveen. Thanks, Alex. That's helpful. Can I ask you one more question about lower tier cities, where you have been normally more dominant compared to your peers. Lately we are hearing and seeing that many other of your peers are also trying to grow in lower tier cities. First, do you think the competition is heating up in lower tier cities? How are you going to manage that competition? Second is, do you think there are any competitive advantage that you have developed over time in lower tier cities, which will help you more than your peers? Thank you. China has a lot more lower tier cities than the 1st and 2nd tier cities. As the economy grow and the Chinese lifting the economy across the board, we feel, again, the growth opportunities are going to be more in the 3rd tier and other tier cities. We have been adding resources to those tier 3 and the lower tier city for many years. That to manage across the wide range of wide area of networks requires a lot of resources. Some companies in the past have tried to quickly expand it into the lower and other tier cities. As you can see, the results are not that easy. I think we have some advantages in getting and accumulating the experience, the resource and the system in managing effectively in those areas. I think that gave us a real advantage over the many months ahead. However, I think a lot of other people realize also there are opportunities in those cities. The competition are heating up everywhere, not only the 3rd tier city, but also in the 1st and 2nd tier. As the urban development reached to a peak, the development has started spreading into the lower tiers and other tier cities. We still are confident, Praveen, that we will have a real competitive advantages in these areas. As I said, managing a wider networks requires accumulated resources, skill, and system. Thank you, Alex, and all the best. Thank you, Praveen. Again, if you have a question, please press star then one. Your next question comes from Billy Ng with Bank of America. Please go ahead. Hi, good morning. Hi, good morning, Alex. Good morning, Selina. I have two questions. First question is, can you provide a little bit more information about our lease and operator hotel? In the presentation, we noticed that there were three major ones open during the first quarter. Would you mind to share about their operating matrix in terms of RevPAR and roughly about their profitability? After ramp up, I think they've been in operation for four, five months now. What kind of margin and profitability should we expect? Secondly, also, we are seeing about 20 more lease and operator hotel in the pipeline. What kind of P&L impact should we expect for this year and in terms of pre-opening costs and in terms of CapEx, and how should we budget that for the rest of the year? Finally, one more question on that is, we see about 1,200 hotels in the pipeline. Should we assume most of them will be able to open in the next 6- 12 months? Billy, thank you. The first question I will give you is our reasons to make those decisions of adding LO hotels. The operating matrix, I'll leave that to Selina, to you to answer. We have been continuously trying to expand into Southeast, Southwest area. In the past, our stronghold is in China central region, and especially the Shanghai, Bohai area. We have been trying to accelerate our growth into our weak area, our white space, through franchise and manage. Last year and this year, there is new opportunities emerged where we are able to find some, and especially the existing hotels, that impacted by the COVID, which we were able to acquire or invest with much lower costs than we alternately were able to just secure a new site and start building those hotels. Most of those are conversion from existing hotels. Most of them are in the city we feel, even during the current timeframe, they may be impacted by the COVID-19 and more probably heavily than in China central area. Eventually, with COVID-19 crisis gone, those hotels will further benefit from the opening of the borders. For instance, in Nanning, which is a site next to the Southeast Asia. That's the rationale behind it. We're selecting those strategic locations in the strategic cities which can help us to penetrate quickly into the weak and white space of GreenTree in the past. The performance of our hotels varies. For instance, in Wuhan, performance are really good. In Nanning, because the door to the South Asian countries are still closed. Nanning is more heavily impacted, Guangxi, is more, I think than the other cities. We think, with time passed that those hotels will perform really well. Okay, Selina. Yes. Thank you, Alex. I can share more information in terms of all our LO hotels. Here, the first quarter, we have 43 LO hotels. The RevPAR, if we compare with the first quarter of 2019, the RevPAR decreased by 20%. For the total portfolio, our RevPAR decreased by 24.5%. That means the LO hotels outperformed our total portfolio. For the second quarter, we will have more than 10 LO hotels added into our portfolio. Now we can see that the RevPAR of our LO hotels for the second quarter increased by more than 5% if we compare with the year of 2019. That also outperformed the total portfolio. Thank you. Thanks a lot. Yeah. Billy, let me add. When we turn a big hotel into GreenTree, I think there will be some impact of occupancy during the conversion period. I think that you can see the numbers. The first quarter, all hotels occupancy is lower than the FM hotels. On the other side, we have all the costs included, the hotel opening cost, in our numbers. We have traditionally not separating the opening cost, new opening cost, from the reporting numbers. We will not see, I don't think that we should be able to see a lot of a major impact from hotel opening cost to drag down the net operating income. I see. In terms of the opening pipeline, what should we expect the opening pace for the next 6-12 months? I forgot to answer that question. Most of the 1,200 hotels will open in the next, I think 6-18 months. Why we use 18 months, because there are some hotels are newly built, it takes much longer time than before the conversion hotels. We should expect the majority of them should be opened from the 6-12 months. Some will extend it further. We'll continue to see. I think the second quarter openings is a little less than the first quarter, but still substantially higher than the same period last year or the year before. I think what is the exact number? Selina has a better understanding. Yes. The opening for the second quarter will be more than 117. Thanks a lot. Thank you. Your next question comes from Ingrid Zhang with UBS. Please go ahead. Hi. Many thanks, Alex, Selina, and Megan, for taking my question. I have two questions about the recent trends. The first is, could you please comment a little bit about the impact from the Henan flood and the recent resurgence of COVID-19 cases? The second is, if possible, can you please share with us when do we expect our RevPAR to return to the 2019 level? Many thanks. Okay. Thank you so much for the question. I didn't get quite the first question. You said the impact from Nanjing? Oh, sorry. Yeah, the impact from, first, the Henan flood and, importantly, the recent resurgence of COVID cases. Yeah, the COVID outbreak starting from Nanjing? Okay. Thank you. The COVID cases, COVID management, I think in the past, we have indicated that we've been prepared for the occasionally, that a certain city resurgence of this COVID. We have checked from both out of the flood crisis in Henan. We quickly, as soon as we saw the newscast, our company's policies immediately alert, not only the Henan but every potential affected hotels to be prepared for the flood control and to prepare ourselves. For our hotels in the region, we have not been affected other than the hotels are hosting some of our local residents. I think for the next couple of weeks, and the business as well, we hope will resume back to normal. With the Nanjing COVID, the same thing. Some of our hotels will be, or are in the process of being taken by the government as the COVID-19 hotel. That's, I think in terms of revenue and in terms of the income impact is going to be probably offset by that. The good thing is that none of our guests and/or our employees get impacted by the resurgence. There is still, relatively speaking, compared with the broad numbers, there's a very small number of people get impacted in Nanjing. We think the government is taking a very strong measure to prevent the crisis from spreading. We are very confident that crisis will be controlled in two-three weeks, and typically, that's the time period. Just like Guangzhou, a couple of months ago, the business will go back to normal. I think that China has a very strong and very effective COVID-19 control and mitigation policy. As soon as a potential impacted person gets identified, they will be having a stay quarantine, stay home policy, people are getting checked very often. We do not think this will have a major impact on our company's performance. Please allow me to answer your second question. Actually, we observed that since the April, our RevPAR began to turn to the level of the year of 2019, especially in May, our RevPAR increased by 3% if we compare with the 2019 levels. In June, our RevPAR still keeps positive if we compare with 2019. Even in the third quarter, from the very beginning of July till now, our RevPAR performed almost the same level of the 2019. Many thanks, Selina and Alex. Your next question comes from Simon Cheung with Goldman Sachs. Please go ahead. Hi, everyone. Thanks for taking my question and also the presentations. I think I have three questions here. One, just on earlier on, you mentioned about second quarter, you're adding the what, 170 hotels or so. Can you give us a sense about the full year numbers? If you can perhaps give us a sense about the breakdown between LO and franchisee, that would be very helpful. The second question, just wanted to get a sense about your EBITDA margins between the LO and the franchisees, because as you add more LO, I suppose that's going to be dilutive to the margins, particularly as Alex, as you mentioned that it would take some time for the LO project to ramp up. Thirdly, you mentioned about hiring a consultant to consider listing elsewhere. Just wondering whether you can share anything with us, what are the conclusion or, if you were to list it elsewhere, what are some of the key considerations here? Thank you. Okay. For the first question, please allow me to share with more detailed information. For the full year, in our plan, the number of new hotels will be more than 700, and we are likely to open almost 800 hotels this year. Between them, still, most of them are franchised and managed hotels. Only we have opportunity to open and lease operating hotels in the strategic position, and only that way we will catch the opportunity to add more L&O hotels. For the second question, till the second quarter, we can observe the EBITDA margin was approaching 40%. That means they recovered better than the first quarter. Normally our EBITDA margin is above 50%, so that's my target for this year. The third question, Simon, that our consultant are working really hard, and that we will report to you as progress being made. That's to the extent I'm able to report to you. Understood. Okay. Thanks a lot, everyone. Thanks. This concludes our question and answer session. I would now like to turn the conference back to Selina for any closing remarks. Thank you, Operator. Pardon me. Do we have me. Do we have another question? Your next question comes from Don Lau with China Renaissance. Please go ahead. Hi, management, can you hear me? Yes. Hi. Thanks for taking my question. I just have two questions. The first is for the LO hotels we're doing, what's the return we are looking for? That's the first one. Basically, what's our return threshold for us to do an L&O investment? That's the first question. For the second question, I feel that for the growth target we have on the top line, it's like 25%-30% for this year. Can I assume that 20% of it is coming from the growth of hotel numbers and the other 5% is coming from RevPAR improvement? Thank you. Okay. Thanks. Don, right? Yeah. Our leased and operated hotels investment criteria is still roughly about. We prefer to be three payback period. At this moment, due to the higher rent, higher improvement cost, and higher cost across the board, we're really targeting less than four years payback period. That's our threshold by making investment in all hotels. That's one criteria. The second criteria is really we have to make those investments in those areas that with high impact. That is attracting more sales and marketing, helping sales marketing team, and by building the hotels, for instance, in TOD area, transportation hub, helping us to gain more brand awareness and attracting more members. Those are the key factors. In terms of the 25%-30% of the revenue growth target over 2019 pre-COVID, and about 50% over 2020, you can see the numbers are primarily growing from FM hotels by more than close to 700-800. I think we mentioned here, we have about 20 all hotels in the pipeline, which will also contribute to that number. The FM and hotel contribution will be a little bit lower because we've been already impacted by the first quarter's 25% loss of the revenue from FM hotels because its RevPAR only recovered 75% to pre-COVID level. That's the math over there, Don. Thank you. Selina, do you have any? Maybe I can share more detailed information. In our forecast, 25%-30% revenue increase, if we compare with the year of 2019. Among them, about 10% contribution from our new added LO hotels and remaining coming from our existing LO hotels and also all our FM hotels. In our previous and current forecast for the full year, our RevPAR, if everything going smooth, I mean, nothing special due to the resurgence of the COVID-19, maybe the RevPAR will be recovered to the same level of the 2019 or even a little bit higher than 2019. Otherwise, in the range of -2% to +2% in terms of the RevPAR increase. The remaining contribution coming from the number of hotels increase. Thank you. Okay. Very clear. Thank you, management. Your next question comes from Jerry Hein with WGI. Please go ahead. Hi. I had two quick questions. One is the gross debt of the company increased very modestly, especially relative to the past. Can you talk about what the need of this short-term debt is? The second question is, the share price of the company has recently hit an all-time low, and yet you have over $200 million of net cash on your balance sheet. Any consideration to increase shareholder returns, either through dividends or share buyback, especially just given where shares are now? Okay. Let me take these questions. Jerry, thank you for the good questions. The debt, the drawdown. Selina mentioned that the bank facilities, those are mainly for maintaining our banking relationships. Because we may experience the next year or the future continued accelerated growth. We want to make sure we have good banking relationships by occasionally using those facilities. That's primarily the reason for occasionally drawing down the bank facility, even though we have cash on the balance sheet. In terms of second, share price. We understand the market have different sentiment occasionally, the fundamental of the company remain to be very sound and solid, we believe. We are very much confident that the share price will eventually reflect the company's fundamental, what we've been doing. In terms of whether the shareholder returns and those various programs, we will have a meeting with our Board Director to discuss about the situation, and we'll report to you if the Board of Directors decide to take any action. Thank you very much. Again if you wish to ask a question please press star then one. This concludes our question and answer session. I would now like to turn the conference back over to Selina for any closing remarks. Thank you, operator. In closing, on behalf of the entire GreenTree management team, we thank you all for your interest and participation in today's call. If you require any further information or have plans to read to us, please contact us. Thank you all. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.