Good day, and thank you for standing by. Welcome to H World Quarter 3, 2025 Earnings Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to turn the call over to your first speaker today, Mr. Jason Chen. Thank you. Please go ahead. Thank you. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World Group 2025 Third Quarter Earnings Conference Call. Joining us today is our founder and chairman, Mr. Ji Qi, our CEO, Mr. Jin Hui, our CFO, Ms. Chen Hui, and our CSO, Ms. He Jihong. Following their prepared remarks, management will be available to answer your questions. Before we continue, please note that the discussion today will include forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. H World Group does not undertake any obligations to update any forward-looking statements except as required and applicable laws. On the call today, we will also mention adjusted financial measures during the discussion of our performance. Reconciliations of those measures to comparable GAAP information can be found in our earnings release that was distributed early today. As a reminder, this conference call is being recorded. The webcast of this conference call, as well as supplementary slides presentation, is available at ir.hworld.com. With that, now I will hand over the call to our CEO, Mr. Jin Hui, to discuss our business performance in the Third Quarter of 2025. Mr. Jin, please. [Foreign language] 谢谢。各位投资人分析师大家好。感谢大家参加华珠集团2025年第三季度业绩电话会。相信大家都关注到，两周前在华珠集团成立20周年之际，我们成功地举办了主题为"华珠20年再出发"的伙伴大会。因此，在回顾三季度业绩之前，我想用几分钟时间和大家再次分享一下我们对中国酒店行业以及华珠未来长期发展的一些展望。如果用一句话来总结，我们认为华珠深耕中国，大有可为。目前我们看到中国酒店市场的供给是相对充分的，但是高质量的供给是明显缺乏的。相较非常成熟的美国市场，中国酒店行业连锁化率、集中度都处于较低的水平。中国作为一个跟美国一样的统一大市场，并且拥有更大的人口基数，未来连锁率的提升、低质量供给的出清，将会必然成为一个长期的趋势。 I believe many of you have noticed that two weeks ago, on the occasion of H World's 20th anniversary, we successfully held a partner conference themed "20 Years Young: Forging Ahead." Therefore, before diving into our Third Quarter performance review, I'd like to take a few minutes to once again share some of our thoughts on the long-term outlook of China's hotel industry and us. In summary, we believe H World has great long-term growth potentials by deeply rooted in China market. Currently, we can observe that while the industry supply is relatively ample. High-quality supply is in noticeable shortage. Compared to the mature U.S. market, China still has low hotel chain penetration, and the industry remains fragmented. As a unified large singular market, similar to the U.S., but with an even larger population base, the increase in churn ratio and the phase-out of low-quality supply will inevitably become a long-term trend. [Foreign language] 更为重要的是，中国消费者对于出行、旅行的需求开始逐步从"过需"转变为"刚需"。我们看到中国拥有全世界最强大的基础建设，发达的高铁和高速公路网络大大提高了人们出行的便利性，也帮助住宿需求从城市走向县域市场。除此以外，中国消费者也逐步开始重新定义新的消费理念和东方审美。我们可以看到消费者对于月级需求的大幅提升，这也进一步推动了旅游、展演、体育赛事等一系列体验类消费的增长。 More importantly, the demand for travel is gradually shifting from discretionary demand to necessity for Chinese consumers nowadays. China has the best infrastructure worldwide. With extensive high-speed rail and highway networks coverage, this has made traveling much easier and more convenient, facilitating the penetration of accommodation needs from major cities to county-level markets. Additionally, Chinese consumers are beginning to redefine consumption concepts and oriental aesthetics. We can see a substantial increase in consumer design in seeking self-pleasure, which further drives the growth of experiential consumption such as tourism, exhibitions, concerts, and sports events. [Foreign language] 简而言之，中国酒店行业目前的供给质量无法充分满足消费者日益升级和多元化的需求。因此，供给侧改革将会是中国酒店行业未来发展的主旋律，而这必将给本土的平台连锁酒店带来巨大的成长机遇和空间。作为中国酒店行业的头部企业，华珠将深耕中国市场，坚持高质量发展，以品牌为引领，打造卓越服务，围绕品质与效率把中国酒店业重新做一遍。我们对中国酒店行业的发展充满信心。 Apparently, the current supply quality in China's hotel industry is unable to fully meet consumers' increasingly upgraded and diversified demands. Therefore, supply-side reform will be the main theme of the future industry development, and this will undoubtedly bring tremendous growth opportunities for domestic-branded hotels like us. As the leading players in China's hotel industry, we will continue deepening our roots in the China market, pursuing high-quality growth and delivering service excellence with a brand-led approach to reduce industry, with centering on high quality and efficiency. We are full of confidence in the future development of China's hotel industry. [Foreign language] 说完对未来长期发展的展望，回到三季度的业绩表现。我们很高兴地看到市场整体趋势逐渐向好。在需求方面，铁路、航空和旅游人次等数据表明国内的出行需求仍保持稳健增长。消费者日益增长的出行需求在国庆、中秋假期表现得尤为突出。在供给方面，第三方数据显示市场供给的环比增速已趋于稳定，同比增幅有所减缓。但这一趋势是否可以持续，我们仍将需观察一段时间。 After sharing our perspectives on the long-term outlook, now let's turn to our Third Quarter performance. We are pleased to see early signs of improvements in the overall market condition. On the demand side, data from railway, aviation, and the number of tourists indicate that the domestic travel demand continues to grow steadily, with the increasing demand for travel being particularly evident during the National Day and Mid-Autumn Festivals holiday period. On the supply side, third-party data shows that the sequential supply growth has stabilized, and the year-over-year growth rate has moderated. However, we still need more time to see if this trend is sustainable. [Foreign language] 从三季度集团经营变现来看，华珠在多项核心指标上取得了不错的表现。我们通过精细化的收益管理，包括旗舰店、新店与老店的协同定价、促销管控以及激励机制优化等多项举措，在维持OCC相对稳定的情况下，推动了ADR的同比正增长，实现了同比基本持平的RELPA。 We are glad to report that H World delivered good results across several key metrics in the quarter. In the Third Quarter, we achieved a year-over-year increase in ADR while maintaining a relatively stable occupancy rate, driven by refined revenue management initiatives, including optimizing pricing strategies across flagship hotel, newly opened hotel, and the matured hotel, as well as refining promotional strategies and enhancing incentive programs. As a result, our RevPAR stayed largely stable compared to the same period last year. [Foreign language] 同时，通过在各区域市场的突破与对低线城市的持续有效渗透，华珠实现了又一季度的高质量规模扩张。在带营房量同比增加17.3%的驱动下，集团酒店GMV同比增长17.5%至306亿元。随着我们网络布局的持续优化以及华珠会能力的进一步升级，华珠的会员规模及会员预定间业量也在持续增长。截至三季度末，华珠会会员数量突破了3亿，同比增加17.3%，全球第一。同时，会员预定间业同比上涨19.7%，超过6,600万间业，占比74%，也实现了全球的领先。 Through breaking through in new cities and the regions, and further penetrating in the lower-tier cities, we achieved another quarter of high-quality network expansion. Driven by a 17.3% year-over-year increase in the number of rooms in operation, our group hotel GMV grew by 17.5% year-over-year to RMB 30.6 billion. Meanwhile, along with our network expansion and the continuous enhancement of H World's membership program, our membership base exceeded 300 million by the end of Third Quarter, up 17.3% year-over-year, and ranking number one globally. In addition, room nights sold to the members rose 19.7% compared to the same period of last year, exceeding 66 million and accounting for 74% of the total room nights sold, which is also a leading position in worldwide. [Foreign language] 更为重要的是，我们未来发展的核心新资产的加盟业务，无论在规模、收入还是利润上，均实现了强劲的增长。三季度集团加盟收入同比提升27.2%至33亿元，经营毛利同比增长至28.6%至22亿元，贡献了超过七成的集团整体经营毛利。 More importantly, our monetized and franchised business delivered strong growth in its hotel network revenue as well as profit. Our Third Quarter growth M&F revenue rose 27.2% year-over-year to RMB 3.3 billion, and the group M&F gross operating profit increased by 28.6% year-over-year to RMB 2.2 billion, contributing over 70% of the group's total gross operating profit. [Foreign language] 在酒店网络的布局上，华珠坚定执行以经济型和中档酒店为核心、服务大众市场的战略。这一战略精准定位，契合当前消费者普遍追求高性价比的趋势，让华珠的竞争优势得以进一步体现。我们通过不断升级迭代核心产品，优化及以客户为中心的服务，来提升华珠整体酒店的网络质量，增强华珠产品的品牌力，以实现长期可持续的发展。华珠新版本的汉庭协同全季与集子在中档市场的持续发力，将共同助力我们在低线城市的布局，为我们千层万店2.0战略目标注入强劲的动力。 In terms of hotel network expansion, we remain steadfast in executing our strategic focus on the economy and the midscale segments to serve the mass market. This strategic positioning aligns precisely with the current consumer behavior of seeking value for money products and services, and can further demonstrate our competitive advantages. By continuously upgrading our core products and enhancing our excellent service with a customer-centric pricing pool, we are enhancing the quality of our hotel portfolio and strengthening our brand positioning to achieve long-term sustainable growth. The new version of HanTing, along with our midscale brands Ji Hotel and Orange Hotel, will serve as the key growth engines for our expansion in the lower-tier cities and provide a strong foundation for achieving our strategic goal of 20,000 hotels in 2,000 cities. [Foreign language] 与此同时，华珠在中高端赛道也实现了快速突破。截至三季度末，华珠在营及管道内的中高端门店数量已突破1,600家，同比增长25.3%。更为重要的是，为契合当代消费者对于品质生活、东方美学和独特体验追求，我们在20周年之际推出了全新的中高端品牌全季大关。全季大关的推出进一步完善了我们中高端品牌矩阵，实现了从东方到西方品牌，从精选服务到生活方式全品类覆盖，全季大关构建出含蓄内敛且富有雅韵的东方审美体系，实现从简单的住宿功能到生活方式体验的价值跃升。 At the same time, H World has also made rapid breakthrough in the upper-mid-scale segments. At the end of Third Quarter, our number of upper-mid-scale hotels in operation and in pipeline exceeded 1,600, up 25.3% year-over-year. More importantly, to meet the growing consumer demand for quality living, oriental aesthetics, and unique experiences, we recently launched a brand new upper-mid-scale brand, Ji Icons, during our 20th anniversary. The introduction of Ji Icons further enriched our upper-mid-scale brand portfolio and helped us to achieve comprehensive coverage from oriental to Western brands and from selected service to lifestyle hotel offerings. Ji Icons brand embodies a combination of subtle, understated, and elegant oriental aesthetic, enabling a value leap from accommodation functionality to holistic lifestyle experiences. [Foreign language] 全季酒店的成功印证了中国消费者对于东方审美和文化的喜爱。我们相信全季大关一定能站在全季的基础上，进一步深化东方审美及文化。同时，集团的供应链和模块化建设能力，以及华珠会全球领先的会员体系与直销能力，将为全季大关在营建成本、运营效率和质量提供保证。我们相信全季大关将有望成为继汉庭、全季、橘子之后，华珠旗下又一个具备全世界竞争力的品牌，为我们在中高端市场的持续发展提供强劲支撑。 The success of Ji Hotels has demonstrated Chinese consumers' affinity for oriental aesthetics and culture. We are confident that building upon Ji Hotels' foundation, Ji Icons will further deepen the expression of oriental aesthetics and the culture element. Moreover, our group's strong supply chain and modular construction capability, as well as our global leading membership and direct sales capability, will effectively support our Ji Icons to reach low construction cost, high operational efficiency, and high product quality. We believe Ji Icons will become one of the big driving forces to support our penetration in the upper-mid-scale segment and has the potential to become another world-class brand after Han Ting, Ji Hotel, and Orange brands. [Foreign language] 在营销方面，我们始终坚持以华珠会为核心，会员体系及直销能力是支持公司业务长期可持续发展的重要核心能力。随着华珠酒店网络覆盖更多的城市，我们的会员体量持续稳步增长。截至三季度末，华珠会员数量已突破3亿，三季度会员贡献的经验量同比增长19.7%，贡献占比同比提升。展望未来，我们将继续完善会员权益，拓展积分应用场景，并深化异业合作，以实现更强的会员粘性和直销能力。 We remain focusing on strengthening our direct sales capabilities through H World's membership program. Our membership program and direct sales capability are vital to our sustainable long-term business growth. Our membership base has been growing as we expand our hotel network and entering into more cities. By the end of Third Quarter, H World's membership exceeded 300 million, and room nights sold to the members grew 19.7% year-over-year, with an enlarging portion of contribution to the total room nights sold. Going forward, we will further enhance our membership benefits, expand loyalty points usage scenarios, and explore cross-industry partnerships to strengthen member engagement and enhance direct sales capability. [Foreign language] 以上就是华珠2025年三季度的业务情况更新。下面有请CFO陈慧为大家更新集团三季度的财务情况。有请陈慧。 This concludes the business updates for H World's Third Quarter 2025. Now I will hand over the floor to our CFO Ms. Chen Hui to present the group's financial performance for the quarter. Thank you, Jin Hui. Good evening and good morning, everyone. Let me walk you through our Third Quarter financial overview. During the quarter, our group revenue grew 8.1% year-over-year to RMB 7 billion, and next quarter revenue grew 10.8% year-over-year to RMB 5.7 billion. Both surpassed the high end of our previous guidance. It was mainly driven by better-than-expected revenue performance, as well as hotel network expansion. Group adjusted EBITDA rose by 18.9% year-over-year to RMB 2.5 billion, with margin improved by 3.3 percentage points year-over-year to 36.1%. The faster adjusted EBITDA growth and margin expansion were mainly contributed to further enlarged profit contribution from our asset-light business. Cost saving from Legacy-DH, partially on the absence of RMB 81 million restructuring cost incurred in the Third Quarter last year, as well as cost optimization efforts from Legacy H World. Looking into our asset-light monetized and franchised business in the Third Quarter, powered by our high-quality asset-light network expansion and better-than-expected revenue performance, our monetized and franchised business revenue recorded a robust 27.2% year-over-year growth to RMB 3.3 billion. More importantly, monetized and franchised business gross operating profit rose by 28.6% year-over-year to RMB 2.2 billion, with a margin of 68% in the Third Quarter. As a result, gross operating profit contribution from our monetized and franchised business further enlarged to 70% in the Third Quarter, up 11.1 percentage points year-over-year. Moving to our cash flow and liquidity position, in the Third Quarter, we generated RMB 1.7 billion operating cash flow. At the quarter end, the group had RMB 13.3 billion cash and cash equivalent, and RMB 6.6 billion net cash on the balance sheet. Lastly, on our guidance for the Fourth Quarter of 2025, we expect our group revenue to grow 2%-6% compared to the same quarter last year, and 3%-7% if excluding DH. The monetized and franchised revenue in the Fourth Quarter of 2025 is expected to grow in the range of 17%-21% compared to the Fourth Quarter last year. With that, we are ready to take your questions. Operator, please open the line for Q&A. Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 11 on your telephone and wait for your name to be announced. One moment for the first question. The first question comes from the line of Dan Qi of Morgan Stanley. Please go ahead. [Foreign language] 各位观众朋友们，晚上好。感谢这个提问的机会。那我是大摩的分析师 Dan。啊，我的问题是关于这个酒店行业 RevPAR 的趋势了，就是啊，公司我看到公司也这个 deliver 了一个非常好的三季度的这个 RevPAR。啊，所以想请问一下，首先是四季度就华住中国刚刚啊，陈会总提到的这个收入 3%-7% 的增长，是用一个怎么样的一个 RevPAR 去去判断的？然后我们刚才看到三季度整个 RevPAR 其实已经完全收稳了吧，这个下跌的幅度。那么公司啊，现在对明年有没有一个展望，特别是刚才金辉总提到的这个新兴的这个体验类的需求的增加，能不能啊，请展开讲一讲啊，就是包括这个三季度 RevPAR 修复，可以说是因为新兴的这个需求呢，还是商务需求同时也有提升？啊，那么我翻译一下。 good evening. My question is about RevPAR and demand trend. Firstly, on the company's Fourth Quarter China revenue guidance of 3%-4% Year-on-Year growth, what's the implied RevPAR assumption? Can the management share any 2026 outlook for us, especially after seeing Third Quarter RevPAR decline turns almost flat, especially on the new experiential demand Mr. Jin mentioned versus the original business demand weakness? Which one is driving the RevPAR stabilization? Thank you. [Foreign language] 好，我来回答这个问题。我是金辉啊，呃，的确我们三季度的 RevPAR 应该大家已经看到数据，我们已经在企稳。那么针对于未来的一个基本的判断，呃，基于几个方面啊，一方面的确在需求方面，我们看到10月份以来整体需求呢，尤其在休闲和旅游市场上依然保持一个呃，不错的稳健的增长。呃，原来我们担心的市场担心的在供给方面应该讲也得到了这个呃减缓，现在是不像过去这么呃快速的增长，也环比之前应该讲呃也是稳定。那么同时呢，华住呢更多的是在过去呃半年我们展开了比较强的自身的销售能力、收益能力的管理，所以呢，我们整个呃展现的目前的趋势也在企稳的过程当中。但是四季度因为也是往年的淡季，我们也在进一步的观察，当然也有一些宏观的不确定性啊，我们也在观察，所以我们目前对四季度的 RevPAR 的预估呢，是实现同比持平到微增的这样的一个状态。呃，关于呃商务市场还是旅游市场的这个问题啊，的确大家也很关心啊，目前我们看来由于中国宏观经济这个还是存在不确定性，所以整个商务需求呢，相对来讲还是处于一个呃不是那么强劲的一个状态。当然我们看到了由于我刚才发言提到旅行已经成为国民的这个消费的刚需，所以看到的更多的是旅游休闲市场的持续稳定增长，尤其在更多新的一些场景，演唱会、马拉松，包括老年的这个市场、入境的市场都展现了比较快的增长啊，这个确实也对我们的经营产生了很多积极的这个影响。呃，关于对于明年的整个预估，我们还在进一步观察中，因为的确呃市场还存在一些不确定性，我们希望在呃四季度以后我们再进一步的进行披露。 As many of you may notice, in the Third Quarter our RevPAR is a bit stabilized on a year-over-year basis. It's kind of, you know, flat. It's not further declining compared to the last two quarters, and of course we observe several trends during the quarter in terms of the demand. Obviously, the demand was mainly driven by the leisure traveling demand, especially from the tourism activities starting from, you know, summer holiday till September, and of course the beginning of the October National Day and the Mid-Autumn Festival as well. On the supply side, as I mentioned before, on the year-over-year basis from the third-party data, we saw the supply growth actually moderated, so it was not growing as fast as before. It's becoming, you know, a bit moderated, which brings some of the, you know, benefits to the RevPAR stabilization. More importantly, you know, for us, as for what has been putting a lot of efforts over the last six months, is in terms to further enhance our, for example, the revenue management, as I mentioned in my prepared remarks, in terms of, you know, setting a new pricing strategy among different tiers of, you know, hotels like flagship new hotels and mature hotels. Therefore, I think, but looking to the Fourth Quarter, because we are entering into the low season, there is still some of the uncertainties. As of now, you know, based on our revenue guidance, it implies our Fourth Quarter RevPAR, which is somewhere around flattish to slightly positive for the Fourth Quarter. In terms of business demand and the leisure demand, of course, you know, there are still some of the macro uncertainties. To be very frank, the business demand is not that strong yet, but on the other hand, for the leisure demand, it was continuously growing. As I mentioned previously, you know, for the Chinese consumers nowadays, the leisure traveling demand has gradually become a necessity instead of discretional demand, and especially for some emerging new demand such as concerts, marathons, sports events, and inbound traveler as well. The leisure remains very strong. In terms of the outlook for the next year, we think it's a bit too early. It still takes time to see whether, you know, the stabilization in terms of the RevPAR and the supply-demand equivalent is sustainable, so we will give more colors for our Fourth Quarter earnings. Thank you. Thank you for the questions. One moment for the next question. Our next question comes from the line of Sujie Lin of CICC. Please go ahead. [Foreign language] 啊谢谢管理层啊我想进一步问一下就是关于这个 RevPAR 的一个拆分啊如果我们拆分这个 ADR 和 OCC 的话可以看到最近可能是这个 ADR 表现的比较好啊所以就是想问问这背后的原因是什么以及咱们觉得这个持续性如何呃另外呢就是如果看这个整体 RevPAR 和同店 RevPAR 之间的 gap 呃还是有点维持了前两个季度的一个水平那么展望未来这个 gap 是否有机会缩窄呃需要的举措是什么啊那我来翻译成英文呃 thank you management my question is about RevPAR breakdown if we look at ADR and OCC we see that ADR performs better recently so trying to understand the reason behind this and the sustainability also if we look at the gap between blended RevPAR and same hotel RevPAR the gap remained at similar level with last few quarters so is there any chance that the gap narrows in the future and what measures need to be taken thank you [Foreign language] 这两问题啊我是金辉我来回答这两问题的确在 2025 年 Red Pod 的提升是管理层一直制定的很重要的关键的运营的指标呃最近的几个季度啊最近的半年吧两个季度应该讲华珠在营收定价啊整个综合收益管理上面采取了进一步的加强啊因而在一线我们通过激励通过收益管理的能力得到了很很好的业绩的表现但我想更强调的一点是华珠在过去持之以恒的在产品力的提升以及对围绕着呃差评率为导向的卓越服务的提升得到了更多客户的认可我觉得这非常重要啊我们的产品我们的服务等得到了更多客户的认可并且在某些市场华珠目前的产品力和服务的体验确实引领了市场具有一定的定价权所以结合多方面因素吧我们一方面加强销售加强我们收益管理啊同时我们持续的持之以恒的提升我们产品赢得更多的客户我认为我们很高兴的看到了 ADR 的这个恢复和生长这是关于呃 ADR 的问题关于同店的问题的确由于在中心区域出现了更多更好的产品对老店的挤压这个情况在过去半年比较明显啊通过我们对新店旗舰店啊标杆店的价格引领的策略啊实现了梯度的定价嗯我们也很高兴看到在过去的一个季度这个同比也在收窄啊同时呢我们在未来呢除了继续保持这样的一个梯度定价的策略我们也会进一步的推动老店的持续的产品升级和迭代以满足更好的这样更好的满足消费者的需求 okay so in terms of the ADR of course for 2025 the improvements of Red Pod has been a very key task for our top management team and if of course they they have been putting a lot of efforts on that so in terms of ADR as I mentioned earlier so we have doing a lot of you know works on you know further enhancing our revenue management capability especially on the pricing you know pricing for different layer of the the hotel and different products and of course on the front line we give a lot of you know various incentives to our salespeople to further motivate them to do a lot of you know sales activities and however apart from this things we have been doing over the six months is over the last six months is actually you know the ADR increasing the Third Quarter is results from our you know you know continuous efforts on you know the product upgrades the quality improvements as well as our service excellence because we have been doing this this things for many many years and the continuously doing so and we have more and more recommendations from our customers so that's why in in certain area or in certain regions our products and the service is definitely in a leading position which give us some of the pricing power which led us to achieve a better ADR for the Third Quarter and in terms of the you know like for like hotel or mature hotels the gap we are glad to see the year-over-year decline was narrowed significantly in the Third Quarter on one hand you know we we in terms of the the pricing we use a lot of you know different layer for pricing the different products you know over the last one and a half years we opened a lot of you know high quality hotels new hotels in some of tier one tier two cities which creating some of the cannibalizations to the existing hotels but through different pricing in different different pricing strategy for different products I think we are seeing some of the improvements for our mature hotels and the four and more importantly we keep doing a lot of you know existing hotels upgrades to further improve the hotel quality itself in order to you know rise the improve the Red Pod as a whole thank you. thank you Jing Zong thank you for the questions one moment for the next question the next questions will come from the line of Lydia Lin of Citi please go ahead [Foreign language] 嗯管理层好我是花旗的Lydia啊我有个问题是想关于那个品牌方面的请教一下管理层啊那主要也是刚才金总也提到的那个我们全新推出的啊中高端品牌全季大关啊我呃能否分享一下我们接下来对这个品牌的规划比如说可能计划啊开多少店然后以及包括单店模型啊比如说呃一家单店的一个开PAX和包括我们预测的一个回报周期那和目前市场上的一些领先的中高端啊品牌相比的话我们全季大关会有哪些的优势啊因为其实也是推出来啊两周呢目前我们收到的那个加盟商的一些反馈是怎么样子的啊我来翻译一下啊 Assets management Lydia from Citi so I have a question regarding the brand especially for the newly launched the upper miscale brand GI Tang so could you actually share some your plans for this brand and such as we are still opening plan and also the store economics like the capex and the payback period and how actually your advantage versus like the current other leading upper miscale brand in the market and how is the feedback from the franchisee so far thank you [Foreign language] 啊这个问题也是由我来回答这个第一个推出全季大关呃更显示了华珠在中高端市场发展的决心华珠的期望是通过若干品牌在中国的中高端成为行业的领导者这是我们非常坚定的战略的目标呃推出全季大关我们也顺应了一个时代的需求我认为在当今文化自信的背景下我们中国市场和华珠都需要一个非常能彰显东方文化东方服务的中高端品牌所以大关就孕育而生它这个展现了东方雅音的这样的一个生活方式对于商业模式我们我刚才提到的全季大关是作为华珠最核心主力的中高端品牌之一啊我们也只在呃成为这个中国消费者最热爱的最首选的品牌所以呃进一步的商业的这些细节我们希望待我们第一家店开业以后再进一步的和大家做更多的分享谢谢 okay so in terms of the GICONS brand so obviously you know the launch of the ICONS brand have showing a very strong determination for Edgeworth to further break through and developing the upper mid scale segment with you know multi-brand strategy this trend is very clear and secondly based on the current you know cultural confidence or Chinese cultural confidence and also the preference from the Chinese government the Chinese consumers on oriental culture oriental service as well as you know oriental lifestyle that also you know basically support the launch of the GICONS brand and as I said before GICON is going to definitely become one of the core brands in our upper mid scale segment and we hope this brand can be you know the best brand or the best hotel that Chinese customers will like the most so in terms of the you know the the UE in terms of the the capex you asked it we hope we can share more information after the first hotels opened thank you thank you for the questions our next questions comes from Simon Chen of Goldman Sachs please go ahead [Foreign language] 啊谢谢金总跟呃呃跟呃陈总刚才的分享啊我有呃一个小小的问题啊嗯看到你今年呃尤其是第三季度开店有700多个店然后所以呃总共头三个季度到超过2,000个店所以想想请教一下你们今年开店的呃节奏是怎么样因为啊我记得之前不是说全年大概2,300个吧然后同一个方向都是签约啊现在的呃那个呃节奏大概是怎么样啊然后同一个问题就是呃中高端这个问题因为啊刚才啊金总也分享跟我们说大概现在已经大概有1,500个店了我们比如说看到啊低低端的你有大概5,000个店在汉庭然后也看到啊全季大概4,000个店那长期来讲的话你觉得中高端啊如果你要做到可能2万以及3万以及5万的店那中高端这个占比可能占占占据到大概是多少呢谢谢嗯 the questions is relating related to the hotel opening in the Third Quarter they done very well in terms of hotel opening over 700 and I think in the first nine months they open more than 2,000 hotel that's on track or even exceeded the 2,300 hotel that they have targeted for the full year wondering whether there's any update for that and and in particular also on the new signing as well and then on the related questions given the focus and the strong momentum that they have seen in the upscale segments upper mid mid scale segments where they achieve 1,600 hotel secure and we have seen you know similarly hunting they done like 5,000 and that's you know G hotel done 4,000 wondering they whether they have any targets for the upper mid scale in the long run thank you [Foreign language] 好的我是金辉我来呃回答一下这个问题啊呃的确大家可以看到今年呃截止三季度我们开业速度还是比较快啊也有赖于在23年24年快速的这个疫情或快速的签约和而且我们很高兴的有赖于华资供应链提升我们的内部的转换率和一方面的签约质量一个转换率也提升了另外在今年我们在前方记录录得了不错的签约和开业啊然后整个签约节奏我们相对还是比较稳健的目前没有出现重大的波动当然我们会围绕着高质量的发展我们其实在过去几个季度一直在强调华资正在从规模的从这些规模增长转向兼顾啊质量尤其突出高质量发展这个核心的战略啊在这样的一个指引下我们在2025年整个完成开业比我们2,300个店应该是略多一些不略多一些具体的数字我想呃有赖于我们财务团队进一步的交流在中高端啊我们保持了一个非常好的签约和开业的节奏我前面也提到了在未来2030年或更远的这个目标希望能成为中国中高端的领导者当然华助是一直坚持在国民经济型和中大为主的发展策略另外在绝对占比上我我我们还是以中高端呃还是以国民和中大为主体的这样的一个呃发展的策略呃中高端的这个增长我们希望目标是成为行业的领导者 okay so benefiting from you know fast new signings in 2023 and 2024 post COVID as well as you know further improvements in terms of our supply chain capability which resulted improvements in conversion ratio from the pipeline to new openings so we achieve a quite good new openings for the first nine months which is slightly more than 2,000 so therefore therefore for the full year we could possibly you know open a bit more than 2,300 hotel as what we guided previously but again so we emphasized several times over the last several quarters earnings core in terms of the new signings open or and openings we will focus more on quality expansion instead only looking for a scale so that theme never changed so we're going to continuously implementing this strategy for high quality sustainable growth in terms of the upper mid segment as I said you know we have reached 1,600 in both pipeline and the operations which also achieved the pretty rapid growth but however if you look into a longer term for example 2030 we we're going to still you know focus on the mass market with the economy and the middle skill so in terms of the proportion you know economy and the middle skill going to still contribute to the majority but in terms of the growth rate we hope our upper mid segments could grow the fastest in the industry and become the leading players in China markets by 2030 thank you [Foreign language] 谢谢金总Jason谢谢你 Thank you for the questions our next questions comes from Ronald Learn of Bank of America please go ahead [Foreign language] 嘿啊各位管理层啊你好啊我是呃美银证券的啊王龙乐啊我有两个问题啊第一个问题是想啊请教关于这个margins啊还有成本控制方面啊公司在过往一两个季度的margins都有不错的提升啊管理层可以跟我们分享一下对成本的啊一个预期还有对margins的预期会是怎么样啊这个是第一个问题啊第二个问题是关于这个啊会员的啊呃现在的啊总体的会员都已经增长啊超过3个亿啊刚才啊管理层也说啊也会啊继续优化这个啊会员计划还有就是把这个啊市场营销方面也做得更好啊管理层可以再具体说一下啊比如有什么措施可以啊令到这方面可以做得更好的哈谢谢啊 let me translate the my questions into in English so I have two questions my first question is about cost and margins outlook the company has achieved very decent margins expansion in the past two quarters could management share with us the latest outlook on cost control and also margins my second question is about the memberships program so the overall memberships has grown decently to over 300 million by the end of three Q two five could management share an update on the strategy on how to further enhance memberships loyalty and also marketing strategies to improve the conversion rates thank you very much [Foreign language] 好我先来回答我是金辉我先回答会员的问题呃会员战略是华助一贯的核心战略我们也很高兴看到会员的无论是规模增长还是预定量都出都成为了这个历史的新高我们也很高兴呃但是我们觉得还做得不够的确有很多的工作为面向未来还能进一步提升呃首先呢我们在会员啊我们在过去的一个季度推出了贵记赔是旨在进一步强化会员权益这个确保会员在无论价格还是门店的服务上的权益的这个体验我们希望通过贵记赔这个项目来这个进一步加强会员权益的这样保障同时呢我们呃会员也在积极对接刚才我提到的这些更多样化多更多新场景的客户刚才提到马拉松也好演唱会也好老年也好入境也好我们希望华助会不仅仅是从过去的这样的一个单一的商务市场出发能更多的对接更更丰富的客源第三个就是我们进一步强化对企业商旅级企业级服务的这样的一个对接能力来进一步扩大我们的客户群的规模第四呢我想我们也在积极探索通过这个跟中国最头部垂类旅行企业的合作这样的异业合作来进一步完善会员的权益体验呃以增强会员的粘性进而持续加强华助会会员的吸引力 okay so in terms of our members so definitely you know direct sales and the membership is one of our core strategy we are glad to see in terms of the member base as well as the room night sold to members continuously to grow but we think that's still not enough so that's why we have been doing quite a lot of jobs over the past several months first of all we introduced a price guarantee program which is going to ensure our members to get the best price and the service as also the unique experiences at the hotel and secondly we also trying to fulfill more diversified demand from the leisure travelers and some of the emergent you know demands for example as I mentioned earlier like sports events like inbound travelers so basically the X rewards membership program is gradually shifting from only business travelers to fulfill more diversified demands and thirdly we are also enhancing our capability to you know receive more business clients and corporate clients to further enhance our exposures and lastly we have been experimenting a lot of you know cross industry you know cooperation with a lot of you know top tier you know vertical players trying to enhance you know members experiences and improve their engagement thank you thank you for the questions our last questions our last questions comes from Ziwei Liu from CPIC sorry please continue [Foreign language] 好我来回答Renno刚才的第一个问题啊就是关于我们的EBITDA的margin呃经调整的EBITDA的提升呢主要是得益于华助的轻资产战略以及我们对成本的持续管控和优化在运营成本方面我们是依托了强大的供应链能力此时的对建业成本进行了降本和增效和优化同时呢我们在能耗洗涤以及餐饮各方面都做了不少的精细化管理工作同时我们针对我们的直营店我们更积极地寻求各种减租的可能来实现存存量直营店的降低租金成本在销售管理费用方面我们针对中后台的管理费用不断进行了优化和严格的管控截止去年三季度的重组优化同样也带来了今年同期的管理费用的节省而在营销费用上我们会以ROI回报为前提对酒店的品牌市场营销会员获客等方面进行持续必要的投入另外就正如前面金辉讲到的我们在呃收益管理方面是进行了一些系统化的系统性的能力的建设取得了今天今天三季度的成绩我们在成本费用的管控方面也是通过系统化的能力来达成的所以我们的EBITDA的margin的提升还是可以预期的 okay let me do the translation so overall the address the EBITDA margin improvement was mainly because of our FN line strategy so obviously the MNF has higher margin compared to this and on but in terms of the cost control in terms of the hotel operating cost by leveraging our strong supply chain capability we continuously to reduce the cost per room night sold and for our lease and own hotels we continuously seeking for more rental reduction just trying to improve the profitability level of our lease and own hotel and on the SGNA perspectives we continuously optimizing our you know mid and back office and headquarter just trying to control the cost in terms of the sales and marketing we will based on our eye and to do some of necessarily investment on for example the hotel brands you know membership as well as the user new new new user acquisition so as as mentioned by by Jin hui so we have been you know systematically improve our capability to improve our revenue management so as in the cost control side so we are also doing a systematically capability improvement thank you thank you we have come to the end of the question and answer session that concludes the conference call for today thank you for your participation you may now disconnect your lines. Good day, and thank you for standing by. Welcome to H World Q3 2025 Earnings Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to turn the call over to your first speaker today, Mr. Jason Chen. Thank you. Please go ahead. Thank you. Good morning and good evening, everyone. Thanks for joining us today. Welcome to H World Group 2025 Third Quarter Earnings Conference Call. Joining us today is our founder and chairman, Mr. Ji Qi, our CEO, Mr. Jin Hui, our CFO, Ms. Chen Hui, and our CSO, Ms. He Jihong. Following their prepared remarks, management will be available to answer your questions. Before we continue, please note that the discussion today will include forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. H World Group does not undertake any obligations to update any forward-looking statements except as required and applicable laws. On the call today, we will also mention adjusted financial measures during the discussion of our performance. Reconciliations of those measures to comparable GAAP information can be found in our earnings release that was distributed early today. As a reminder, this conference call is being recorded. The webcast of this conference call, as well as supplementary slides presentation, is available at ir.hworld.com. With that, now I will hand over the call to our CEO, Mr. Jin Hui, to discuss our business performance in the Third Quarter of 2025. Mr. Jin Hui, please. [Foreign language] 谢谢，各位投资人分析师，大家好。感谢大家参加华族集团2025年第三季度业绩电话会。相信大家都关注到，两周前在华族集团成立20周年之际，我们成功地举办了主题为"华族20年再出发"的伙伴大会。因此，在回顾三季度业绩之前，我想用几分钟时间和大家再次分享一下我们对中国酒店行业以及华族未来长期发展的一些展望。如果用一句话来总结，我们认为华族深耕中国大有可为。目前我们看到，中国酒店市场的供给是相对充分的，但是高质量的供给是明显缺乏的。相较非常成熟的美国市场，中国酒店行业连锁化率集中度都处于较低的水平。中国作为一个跟美国一样的统一大市场，并且拥有更大的人口基数，未来连锁率的提升、低质量供给的出清，将会必然成为一个长期的趋势。 I believe many of you have noticed that two weeks ago, on the occasion of H World’s 20th anniversary, we successfully held a partner conference themed "20 Years Young: Forging Ahead." Therefore, before diving into our Third Quarter performance review, I’d like to take a few minutes to once again share some of our thoughts on the long-term outlook of China’s hotel industry and us. In summary, we believe H World has great long-term growth potentials by deeply rooted in the China market. Currently, we can observe that while the industry supply is relatively ample, high-quality supply is in noticeable shortage. Compared to the matured U.S. Market, China still has low hotel chain penetration, and the industry remains fragmented. As a unified large singular market, similar to the U.S. but with an even larger population base, the increase in churn ratio and the phase-out of low-quality supply will inevitably become a long-term trend. [Foreign language] 更为重要的是，中国消费者对于出行旅行的需求开始逐步从"过需"转变为"刚需"。我们看到，中国拥有全世界最强大的基础建设，发达的高铁和高速公路网络大大提高了人们出行的便利性，也帮助住宿需求从城市走向县域市场。除此以外，中国消费者也逐步开始重新定义新的消费理念和东方审美。我们可以看到消费者对于月级需求的大幅提升，这也进一步推动了旅游、展演、体育赛事等一系列体验类消费的增长。 More importantly, the demand for travel is gradually shifting from discretionary demand to necessity for Chinese consumers nowadays. China has the best infrastructure worldwide, with extensive high-speed rail and highway networks coverage. This has made traveling much easier and more convenient, facilitating the penetration of accommodation needs from major cities to country-level markets. Additionally, Chinese consumers are beginning to redefine consumption concepts and oriental aesthetics. We can see a substantial increase in consumer design in seeking self-pleasure, which further drives the growth of experiential consumption such as tourism, exhibitions, concerts, and sports events. [Foreign language] 简而言之，中国酒店行业目前的供给质量无法充分满足消费者日益升级和多元化的需求。因此，供给侧改革将会是中国酒店行业未来发展的主旋律，而这必将给本土的平台连锁酒店带来巨大的成长机遇和空间。作为中国酒店行业的头部企业，华族将深耕中国市场，坚持高质量发展，以品牌为引领，打造卓越服务，围绕品质与效率把中国酒店业重新做一遍。我们对中国酒店行业的发展充满信心。 Apparently, the current supply quality in China's hotel industry is unable to fully meet consumers' increasingly upgraded and diversified demands. Therefore, supply-side reform will be the main theme of the future industry development, and this will undoubtedly bring tremendous growth opportunities for domestic-branded hotels like us. As the leading players in China's hotel industry, we will continue deepening our roots in the China market, pursuing high-quality growth and delivering service excellence with a brand-led approach to reduce industry with centering on high quality and efficiency. We are full of confidence in the future development of China's hotel industry. [Foreign language] 说完对未来长期发展的展望，回到三季度的业绩表现，我们很高兴地看到市场整体趋势逐渐向好。在需求方面，铁路、航空和旅游人次等数据表明国内的出行需求仍保持稳健增长。消费者日益增长的出行需求在国庆、中秋假期表现得尤为突出。在供给方面，第三方数据显示市场供给的环比增速已趋于稳定，同比增幅有所减缓。但这一趋势是否可以持续，我们仍将需观察一段时间。 After sharing our perspectives on the long-term outlook, now let's turn to our Third Quarter performance. We are pleased to see early signs of improvements in the overall market condition. On the demand side, data from railway, aviation, and the number of tourists indicate that the domestic travel demand continues to grow steadily, with the increasing demand for travel being particularly evident during the National Day and Mid-Autumn Festivals holiday period. On the supply side, third-party data shows that the sequential supply growth has stabilized and the year-over-year growth rate has moderated. However, we still need more time to see if this trend is sustainable. [Foreign language] 从三季度集团经营变现来看，华族在多项核心指标上取得了不错的表现。我们通过精细化的收益管理，包括旗舰店、新店与老店的协同定价、促销管控以及激励机制优化等多项举措，在维持OCC相对稳定的情况下，推动了ADR的同比正增长，实现了同比基本持平的REL卡。 We are glad to report that H World delivered good results across several key metrics in the quarter. In the Third Quarter, we achieved a year-over-year increase in ADR while maintaining a relatively stable occupancy rate, driven by refined revenue management initiatives, including optimizing pricing strategies across flagship hotel, newly opened hotel, and the matured hotel, as well as refining promotional strategies and enhancing incentive programs. As a result, our repos stayed largely stable compared to the same period last year. [Foreign language] 同时，通过在各区域市场的突破与对低线城市的持续有效渗透，华族实现了又一季度的高质量规模扩张。在营房量同比增加17.3%的驱动下，集团酒店GMV同比增长17.5%至306亿元。随着我们网络布局的持续优化以及华族会能力的进一步升级，华族的会员规模及会员预定间业量也在持续增长。截至三季度末，华族会会员数量突破了3亿，同比增加17.3%，全球第一。同时，会员预定间业同比上涨19.7%，超过6,600万间业，占比74%，也实现了全球的领先。 Through breaking through in new cities and the regions, and further penetrating in the lower tier cities, we achieved another quarter of high-quality network expansion. Driven by a 17.3% year-over-year increase in the number of rooms in operation, our group hotel GMV grew by 17.5% year-over-year to RMB 30.6 billion. Meanwhile, along with our network expansion and the continuous enhancement of H World’s membership program, our membership base exceeded 300 million by the end of Third Quarter, up 17.3% year-over-year, and ranking number one globally. In addition, room nights sold to the members rose 19.7% compared to the same period of last year, exceeding 66 million and accounting for 74% of the total room nights sold, which is also a leading position worldwide. [Foreign language] 更为重要的是，我们未来发展的核心新资产的加盟业务，无论在规模、收入还是利润上，均实现了强劲的增长。三季度集团加盟收入同比提升27.2%至33亿元，经营毛利同比增长至28.6%至22亿元，贡献了超过七成的集团整体经营毛利。 More importantly, our monetized and franchised business delivered strong growth in its hotel network revenue as well as profit. Our Third Quarter group M&F revenue rose 27.2% year-over-year to RMB 3.3 billion, and the group M&F gross operating profit increased by 28.6% year-over-year to RMB 2.2 billion, contributing over 70% of the group's total gross operating profit. [Foreign language] 在酒店网络的布局上，华族坚定执行以经济型和中档酒店为核心服务大众市场的战略。这一战略精准定位，契合当前消费者普遍追求高性价比的趋势，让华族的竞争优势得以进一步的体现。我们通过不断升级迭代核心产品，优化及以客户为中心的服务，来提升华族整体酒店的网络质量，增强华族产品的品牌力，以实现长期可持续的发展。华族新版本的汉庭协同全技与极致在中档市场的持续发力，将共同助力我们在低线城市的布局，为我们千城万店2.0战略目标注入强劲的动力。 In terms of hotel network expansion, we remain steadfast in executing our strategic focus on the economy and the middle-skill segments to serve the mass market. This strategic positioning aligns precisely with the current consumer behavior of seeking value for money products and services, and can further demonstrate our competitive advantages. By continuously upgrading our core products and enhancing our excellent service with a customer-centric pricing pool, we are enhancing the quality of our hotel portfolio and strengthening our brand positioning to achieve long-term sustainable growth. The new version of HanTing, along with our midscale brands Ji Hotel and Orange Hotel, will serve as the key growth engines for our expansion in the lower-tier cities and provide a strong foundation for achieving our strategic goal of 20,000 hotels in 2,000 cities. [Foreign language] 与此同时，华族在中高端赛道也实现了快速突破。截至三季度末，华族在营及管道内的中高端门店数量已突破1,600家，同比增长25.3%。更为重要的是，为契合当代消费者对于品质生活、东方美学和独特体验追求，我们在20周年之际推出了全新的中高端品牌全季大关。全季大关的推出进一步完善了我们中高端品牌矩阵，实现了从东方到西方品牌，从精选服务到生活方式全品类覆盖，全季大关构建出含蓄内敛且富有雅韵的东方审美体系，实现从简单的住宿功能到生活方式体验的价值跃升。 At the same time, H World has also made rapid breakthrough in the upper-midscale segments. At the end of Third Quarter, our number of upper-midscale hotels in operation and in pipeline exceeded 1,600, up 25.3% year-over-year. More importantly, to meet the growing consumer demand for quality living, oriental aesthetics, and unique experiences, we recently launched a brand new upper-midscale brand, Ji Icons, during our 20th anniversary. The introduction of Ji Icons further enriched our upper-midscale brand portfolio and helped us to achieve comprehensive coverage from oriental to western brands and from selected service to lifestyle hotel offerings. G Icons brand embodies a combination of subtle, understated, and elegant oriental aesthetic, enabling a value leap from accommodation functionality to holistic lifestyle experiences. [Foreign language] 全季酒店的成功印证了中国消费者对于东方审美和文化的喜爱。我们相信全季大关一定能站在全季的基础上，进一步深化东方审美及文化。同时，集团的供应链和模块化建设能力，以及华族会全球领先的会员体系与直销能力，将为全季大关在营建成本、运营效率和质量提供保证。我们相信全季大关将有望成为继汉庭、全记、橘子之后，华族旗下又一个具备全世界竞争力的品牌，为我们在中高端市场的持续发展提供强劲支撑。 The success of G Hotels has demonstrated Chinese consumers' affinity for oriental aesthetics and culture. We are confident that building upon G Hotels' foundation, G Icons will further deepen the expression of oriental aesthetics and the culture element. Moreover, our group's strong supply chain and modular construction capability, as well as our global leading membership and direct sales capability, will effectively support our G Icons to reach low construction cost, high operational efficiency, and high product quality. We believe G Icons will become one of the big driving forces to support our penetration in the upper-mid-scale segment and has the potential to become another world-class brand after HanTing, G Hotel, and Orange brands. [Foreign language] 在营销方面，我们始终坚持以华族会为核心，会员体系及直销能力是支持公司业务长期可持续发展的重要核心能力。随着华族酒店网络覆盖更多的城市，我们的会员体量持续稳步增长。截至三季度末，华族会员数量已突破3亿，三季度会员贡献的经验量同比增长19.7%，贡献占比同比提升。展望未来，我们将继续完善会员权益，拓展积分应用场景，并深化异业合作，以实现更强的会员粘性和直销能力。 We remain focusing on strengthening our direct sales capabilities through H World’s membership program. Our membership program and direct sales capability are vital to our sustainable long-term business growth. Our membership base has been growing as we expand our hotel network and enter into more cities. By the end of Third Quarter, h World’s membership exceeded 300 million, and the room nights sold to the members grew 19.7% year-over-year, with an enlarging portion of contribution to the total room nights sold. Going forward, we will further enhance our membership benefits, expand loyalty points usage scenarios, and explore cross-industry partnerships to strengthen member engagement and enhance direct sales capability. [Foreign language] 以上就是华族2025年三季度的业务情况更新。下面有请CFO陈慧为大家更新集团三季度的财务情况。有请陈慧。 This concludes the business updates for H World’s Third Quarter 2025. Now I will hand over the floor to our CFO, Ms. Chen Hui, to present the group’s financial performance for the quarter. Thank you, Jin Hui. Good evening and good morning, everyone. Let me walk you through our Third Quarter financial overview. During the quarter, our group revenue grew 8.1% year-over-year to RMB 7 billion, and next quarter revenue grew 10.8% year-over-year to RMB 5.7 billion. Both surpassed the high end of our previous guidance. It was mainly driven by better than expected revenue performance, as well as hotel network expansion. Group adjusted EBITDA rose by 18.9% year-over-year to RMB 2.5 billion, with margin improved by 3.3 percentage points year-over-year to 36.1%. The faster adjusted EBITDA growth and margin expansion were mainly contributed to further enlarged profit contribution from our asset-light business. Cost saving from next DH, partially on the absence of RMB 81 million restructuring cost incurred in the Third Quarter last year, as well as cost of optimization efforts from next H World. Looking into our asset-light, monetized, and franchised business in the Third Quarter, powered by our high-quality asset-light network expansion and better than expected revenue performance, our monetized and franchised business revenue recorded a robust 27.2% year-over-year growth to RMB 3.3 billion. More importantly, monetized and franchised business gross operating profit rose by 28.6% year-over-year to RMB 2.2 billion, with a margin of 68% in the Third Quarter. As a result, gross operating profit contribution from our monetized and franchised business further enlarged to 70% in the Third Quarter, up 11.1 percentage points year-over-year. Moving to our cash flow and liquidity position, in the Third Quarter, we generated RMB 1.7 billion operating cash flow. At the quarter end, the group had RMB 13.3 billion cash and cash equivalent, and RMB 6.6 billion net cash on the balance sheet. Lastly, on our guidance for the Fourth Quarter of 2025, we expect our group revenue to grow 2%-6% compared to the same quarter last year, and 3%-7% if excluding DH. The monetized and franchised revenue in the Fourth Quarter of 2025 is expected to grow in the range of 17%-21% compared to the Fourth Quarter last year. With that, we are ready to take your questions. Operator, please open the line for Q&A. Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 11 on your telephone and wait for your name to be announced. One moment for the first question. The first question comes from the line of Dan Qi of Morgan Stanley. Please go ahead. [Foreign language] 各位管理层，晚上好。感谢这个提问的机会。那我是大摩的分析师 Dan。啊，我的问题是关于这个酒店行业 RevPAR 的趋势了，就是啊，公司我看到公司也这个 deliver 了一个非常好的三季度的这个 RevPAR。啊，所以想请问一下，首先是四季度就华住中国刚刚啊，陈会总提到的这个收入 3%-7% 的增长，是用一个怎么样的一个 RevPAR 去去判断的？然后我们刚才看到三季度整个 RevPAR 其实已经完全收稳了吧，这个下跌的幅度。那么公司啊，现在对明年有没有一个展望，特别是刚才金辉总提到的这个新兴的这个体验类的需求的增加，能不能啊，请展开讲一讲啊，就是包括这个三季度 RevPAR 修复，可以说是因为新兴的这个需求呢，还是商务需求同时也有提升。啊，那么我翻译一下。 good evening. My question is about RevPAR and demand trend. Firstly, on the company's Fourth Quarter China revenue guidance of 3-4% Year-on-Year growth, what's the implied RevPAR assumption? Can the management share any 2026 outlook for us, especially after seeing Third Quarter RevPAR decline turns almost flat, especially on the new experiential demand Mr. Jin mentioned versus the original business demand weakness? So which one is driving the RevPAR stabilization? Thank you. [Foreign language] 好，我来回答这个问题。我是金辉啊，呃，的确我们三季度的 RevPAR 应该大家已经看到数据，我们已经在企稳。那么针对于未来的一个基本的判断，呃，基于几个方面啊，一方面的确在需求方面，我们看到10月份以来整体需求呢，尤其在休闲和旅游市场上依然保持一个呃，不错的稳健的增长。呃，原来我们担心的市场担心的在供给方面应该讲也得到了这个呃减缓，现在是不像过去这么呃快速的增长，也环比之前应该讲呃也是稳定。那么同时呢，华住呢更多的是在过去呃半年我们展开了比较强的自身的销售能力、收益能力的管理，所以呢我们整个呃展现的目前的趋势也在企稳的过程当中。但是四季度因为也是往年的淡季，我们也在进一步的观察，当然也有一些宏观的不确定性啊，我们也在观察，所以我们目前对四季度的 RevPAR 的预估呢，是实现同比持平到微增的这样的一个状态。呃，关于呃商务市场还是旅游市场的这个问题啊，的确大家也很关心啊，目前我们看来由于中国宏观经济这个还是存在不确定性，所以整个商务需求呢相对来讲还是处于一个呃不是那么强劲的一个状态。当然我们看到了由于我刚才发言提到旅旅行已经成为国民是国民的这个消费的刚需，所以看到的更多的是旅游休闲市场的持续稳定的增长，尤其在更多新的一些场景，演唱会、马拉松，包括老年的这个市场、入境的市场都展现了比较快的增长啊，这个确实也对我们的经营产生了很多积极的这个影响。呃，关于对于明年的整个预估，我们还在进一步观察中，因为的确呃市场还存在一些不确定性，我们希望在呃四季度以后我们再进一步的进行披露。 So as as many of you may notice that in the Third Quarter you know our RevPAR is a bit stabilized on year-over-year basis. It's kind of you know flat it it's not further declining compared to last two quarters. Of course we observe several trends during the quarter in terms of the demand. Obviously the demand was mainly driven by the leisure traveling demand, especially from the tourism activities starting from, you know, summer holiday till September and of course the beginning of the October National Day and the Mid-Autumn Festival as well. On the supply side, as I mentioned before, on a year-over-year basis from the third-party data, we saw the supply growth actually moderated, so it was not growing as fast as before. It is becoming, you know, a bit moderated, which brings some of the, you know, benefits to the RevPAR stabilization. But more importantly, you know, for us as for what has been putting a lot of efforts over the last six months in terms to further enhance our, for example, the revenue management as I mentioned in my prepared remarks in terms of, you know, setting a new pricing strategy among different tiers of, you know, hotels like flagship new hotels and mature hotels. Therefore, I think, but looking to the Fourth Quarter, because we are entering into the low season, there is still some of the uncertainties. As of now, you know, based on our revenue guidance, it implies our Fourth Quarter RevPAR, which is somewhere around flattish to slightly positive for the Fourth Quarter. In terms of business demand and the leisure demand, of course you know there are still some of the macro uncertainties. To be very frank, the business demand is not that strong yet, but on the other hand, for the leisure demand, it was continuously growing. As I mentioned previously, you know for the Chinese consumers nowadays, the leisure traveling demand has gradually become a necessity instead of discretional demand, and especially for some emerging new demand such as concerts, marathons, sports events, and inbound traveler as well. The leisure remains very strong. In terms of the outlook for the next year, we think it's a bit too early. It still takes time to see whether, you know, the stabilization in terms of the RevPAR and the supply-demand equivalent is sustainable, so we will give more colors for our Fourth Quarter earnings. Thank you. [Foreign language] 谢谢 thank you thank you for the questions one moment for the next question our next question comes from the line of Sujie Lin of CICC please go ahead [Foreign language] 啊谢谢管理层啊我想进一步问一下就是关于这个 RevPAR 的一个拆分啊如果我们拆分这个 ADR 和 OCC 的话可以看到最近可能是这个 ADR 表现的比较好啊所以就是想问问这背后的原因是什么以及咱们觉得这个持续性如何呃另外呢就是如果看这个整体 RevPAR 和同店 RevPAR 之间的 gap 呃还是有点维持了前两个季度的一个水平那么展望未来这个 gap 是否有机会缩窄呃需要的举措是什么啊那我来翻译成英文呃 thank you management my question is about RevPAR breakdown if we look at ADR and OCC we see that ADR performs better recently so trying to understand the reason behind this and the sustainability also if we look at the gap between blended RevPAR and same-store RevPAR the gap remained at similar level with last few quarters so is there any chance that the gap narrows in the future and what measures need to be taken thank you [Foreign language] 这两问题啊我是金辉我来回答这两问题的确在2025年 RevPAR 的提升是管理层一直制定的很重要的关键的运营的指标呃最近的几个季度啊最近的半年吧两个季度应该讲华住在营收定价啊整个综合收益管理上面采取了进一步的加强啊因而在一线我们通过激励通过收益管理的能力得到了很很好的业绩的表现但我想更强调的一点是华住在过去持之以恒的在产品力的提升以及对围绕着呃差评率为导向的作业服务的提升得到了更多客户的认可我觉得这非常重要啊我们的产品我们的服务等得到了更多客户的认可并且在某些市场华住目前的产品力和服务的体验确实引领了市场具有一定的定价权所以结合多方面因素吧我们一方面加强销售加强我们收益管理啊同时我们持续的持之以恒提升我们产品赢得更多的客户我认为我们很高兴的看到了 ADR 的这个恢复和生长这是关于呃 ADR 的问题关于同店的问题的确由于在中心区域出现了更多更好的产品对老店的挤压这个情况在过去半年比较明显啊通过我们对新店旗舰店啊标杆店的价格引领的策略啊实现了梯度的定价那我们也很高兴看到在过去的一个季度这个同比也在收窄啊同时呢我们在未来呢除了继续保持这样的一个梯度定价的策略我们也会进一步的推动老店的持续的产品升级和迭代以满足更好的这样更好的满足消费者的需求 okay so in terms of the ADR of course for 2025 the improvements of RevPAR has been a very key task for our top management team and if of course they they have been putting a lot of efforts on that so in terms of ADR as I mentioned earlier so we have doing a lot of you know works on you know further enhancing our revenue management capability especially on the pricing you know pricing for different layer of the the hotel and different products and of course on the front line we give a lot of you know various incentives to our salespeople to further motivate them to do a lot of you know sales activities and however apart from this things we have been doing over the six months is over the last six months is actually you know the ADR increasing the Third Quarter is results from our you know you know continuous efforts on you know the product upgrades the quality improvements as well as our service excellence because we have been doing this this things for many many years and the continuously doing so and we have more and more recommendations from our customers so that's why in in certain area or in certain regions our products and the service is definitely in a leading position which give us some of the pricing power which led us to achieve a better ADR for the Third Quarter and in terms of the you know like for like hotel or mature hotels the gap we are glad to see the year over year decline was narrowed significantly in the Third Quarter on one hand you know we we in terms of the the pricing we use a lot of you know different layer for pricing the different products you know over the last one and a half years we opened a lot of you know high quality hotels new hotels in some of tier one tier two cities which creating some of the cannibalizations to the existing hotels but through different pricing in different different pricing strategy for different products I think we are seeing some of the improvements for our mature hotels and the four and more importantly we keep doing a lot of you know existing hotels upgrades to further improve the hotel quality itself in order to you know rise the improve the RevPAR as a whole thank you thank you Jing Zong thank you for the questions one moment for the next question the next questions will come from the line of Lydia Lin of Citi please go ahead [Foreign language] 嗯管理层好我是花旗的Lydia啊我有个问题是想关于那个品牌方面的请教一下管理层啊那主要也是刚才金总也提到的那个我们全新推出的啊中高端品牌全季大观啊我呃能否分享一下我们接下来对这个品牌的规划比如说可能计划啊开多少店然后以及包括单店模型啊比如说呃一家单店的一个开派和包括我们预测的一个回报周期那和目前市场上的一些领先的中高端啊品牌相比的话我们全季大观会有哪些的优势啊因为其实也是推出来啊两周呢目前我们收到的那个加盟商的一些反馈是怎么样子的啊我来翻译一下啊 thanks management Lydia from Citi so I have a question regarding the brand especially for the newly launched upper midscale brand Ji Icons so could you actually share some your plans for this brand and such as your store opening plan and also the store economics like the CapEx and the payback period and how actually your advantage versus like the current other leading upper midscale brand in the market and how is the feedback from the franchisee so far thank you [Foreign language] 啊这个问题也是由我来回答这个第一个推出全季大观呃更显示了华住在中高端市场发展的决心华住的期望是通过若干品牌在中国的中高端成为行业的领导者这是我们非常坚定的战略的目标呃推出全季大观我们也顺应了一个时代的需求我认为在当今文化自信的背景下我们中国市场和华住都需要一个非常能彰显东方文化东方服务的中高端品牌所以大观就孕育而生它这个展现了东方雅音的这样的一个生活方式对于商业模式我们我刚才提到的全季大观是作为华住最核心主力的中高端品牌之一啊我们也旨在呃成为这个中国消费者最热爱的最首选的品牌所以呃进一步的商业的这些细节我们希望在我们第一家店开业以后再进一步的和大家做更多的分享谢谢 okay so in terms of the Ji Icons brand so obviously you know the launch of Ji Icons brand has showing a very strong determination for H World to further break through and developing the upper midscale segment with you know multi-brand strategy this trend is very clear and secondly based on the current you know cultural confidence or Chinese cultural confidence and also the preference from the Chinese government the Chinese consumers on oriental culture oriental service as well as you know oriental lifestyle that also you know basically support the launch of the Ji Icons brand and as I said before Ji Icon is going to definitely become one of the core brands in our upper midscale segment and we hope this brand can be you know the best brand or the best hotel that Chinese customers will like the most so in terms of the you know the the UE in terms of the the CapEx you asked it we hope we can share more information after the first hotels opened thank you thank you for the questions our next questions comes from Simon Chen of Goldman Sachs please go ahead [Foreign language] 啊谢谢金总跟嗯呃呃跟呃陈总刚才的分享啊我有呃一个小小的问题啊嗯看到你今年呃尤其是第三季度开店有700多个店然后所以呃总共头三个季度到超过2,000个店所以想想请教一下你们今年开店的呃节奏是怎么样因为啊我记得之前不是说全年大概2,300个吧然后同一个方向都是签约啊现在的呃那个呃节奏大概是怎么样啊然后同一个问题就是呃中高端这个问题因为啊刚才啊金总也分享跟我们说大概现在已经大概有1,500个店了我们比如说看到啊低低端的你有大概5,000个店在汉庭然后也看到啊全季大概4,000个店那长期来讲的话你觉得中高端啊如果你要做到可能2万以及3万以及5万的店那中高端这个占比可能占占占据到大概是多少呢谢谢嗯 the questions is relating related to the hotel opening in the Third Quarter they done very well in terms of hotel opening over 700 and I think in the first nine months they opened more than 2,000 hotel that's on track or even exceeded the 2,300 hotel that they have targeted for the full year wondering whether there's any update for that and and in particular also on the new signing as well and then on the related questions given the focus and the strong momentum that they have seen in the upscale segments upper mid midscale segments where they achieve 1,600 hotel secure and we have seen you know similarly HanTing they done like 5,000 and that's you know Ji Hotel done 4,000 wondering they whether they have any targets for the upper midscale in the long run thank you [Foreign language] 好的我是金辉我来呃回答一下这个问题啊呃的确大家可以看到今年呃截止三季度我们开业速度还是比较快啊也有赖于在2023年2024年快速的这个疫情后快速的签约和而且我们很高兴的有赖于华住供应链提升我们的内部的转换率和一方面的签约质量一个转换率也提升了另外在今年我们在前三季度录得了不错的签约的开业啊然后整个签约节奏我们相对还是比较稳健的目前没有出现重大的波动当然我们会围绕着高质量的发展我们其实在过去几个季度一直在强调华住正在从规模的从这些规模增长转向兼顾啊质量尤其突出高质量发展这个核心的战略啊在这样的一个指引下我们在2025年整个完成开业比我们2,300个店应该是略多一些不略多一些具体的数字我想呃有赖于我们财务团队进一步的交流在中高端啊我们保持了一个非常好的签约和开业的节奏我前面也提到了在未来2030年或更远的这个目标我们希望能成为中国中高端的领导者当然华住是一直坚持在国民经济型和中档为主的发展策略另外在绝对占比上我我我们还是以中高端呃还是以国民和中档为主体的这样的一个呃发展的策略呃中高端的这个增长我们希望目标是成为行业的领导者 okay so benefiting from you know fast new signings in 2023 and 2024 post COVID as well as you know further improvements in terms of our supply chain capability which resulted improvements in conversion ratio from the pipeline to new openings so we achieve a quite good new openings for the first nine months which is slightly more than 2,000 so therefore therefore for the full year we could possibly you know open a bit more than 2,300 hotel as what we guided previously but again so we emphasized the several times over the last several quarters earnings call in terms of the new signings open or and openings we will focus more on quality expansion instead only looking for a scale so that theme never changed so we're going to continuously implementing this strategy for high quality sustainable growth in terms of the upper mid segment as I said you know we have reached 1,600 in both pipeline and the operations which also achieved the pretty rapid growth but however if you look into a longer term for example 2030 we we're going to still you know focus on the mass market with the economy and the middle scale so in terms of the proportion you know economy and the middle scale can still contribute to the majority but in terms of the growth rate we hope our upper mid segments could grow the fastest in the industry and become the leading players in China market by 2030 thank you [Foreign language] 谢谢金总 Jason 谢谢你 thank you for the questions our next questions comes from Ronald Lynn of Bank of America please go ahead [Foreign language] 嘿啊各位管理层啊你好啊我是啊美银证券的啊 Ronald Lynn 啊我有两个问题啊第一个问题是想啊请教关于这个 margins 啊还有成本控制方面啊公司在过往一两个季度的 margins 都有不错的提升啊管理层可以跟我们分享一下对成本的啊一个预期还有对 margins 的预期会是怎么样啊这个是第一个问题啊第二个问题是关于这个啊会员的啊啊现在的啊总体的会员都已经增长啊超过 3 个亿啊刚才啊管理层也说啊也会啊继续优化这个啊会员计划还有就是把这个啊市场营销方面也做得更好啊管理层可以再具体说一下啊比如有什么措施可以啊令到这方面可以做得更好的哈谢谢啊 let me translate the my questions into in English so I have two questions my first question is about cost and margins outlook the company has achieved very decent margins expansion in the past two quarters quick management share with us the latest outlook on cost control and also margins my second question is about the memberships program so the overall memberships has grown decently to over 300 million by the end of three Q two five quick management share an update on the strategy on how to further enhance memberships loyalty and also marketing strategies to improve the conversion rates thank you very much [Foreign language] 好我先来回答我是金辉我先回答会员的问题呃会员战略是华住一贯的核心战略我们也很高兴看到会员的无论是规模增长还是预定量都出都成为了这个历史的新高我们也很高兴呃但是我们觉得还做得不够的确有很多的工作为面向未来还能进一步提升呃首先呢我们在会员啊我们在过去的一个季度推出了贵记陪是旨在进一步强化会员权益这个确保会员在无论价格还是门店的服务上的权益的这个体验我们希望通过贵记陪这个项目来这个进一步加强会员权益的这样保障同时呢我们呃会员也在积极对接刚才我提到的这些更多样化多更多新场景的客户刚才提到马拉松也好演唱会也好老年也好入境也好我们希望华住会不仅仅是从过去的这样的一个单一的商务市场出发能更多的对接更更丰富的客源第三个就是我们进一步强化对企业商旅级企业级服务的这样的一个对接能力来进一步扩大我们的客户群的规模第四呢我想我们也在积极探索通过这个跟中国最头部垂类旅行企业的合作这样的异业合作来进一步完善会员的权益体验在以增强会员的粘性进而持续加强华住会会员的吸引力 okay so in terms of our members so definitely you know direct sales and the membership is one of our core strategy we are glad to see in terms of the member base as well as the room night sold to members continuously to grow but we think that's still not enough so that's why we have been doing quite a lot of jobs over the past several months first of all we introduced a price guarantee program which is going to ensure our members to get the best price and the service as also the unique experiences at the hotel and secondly we also trying to fulfill more diversified demand from the leisure travelers and some of the emergent you know demands for example as I mentioned earlier like sports events like inbound travelers so basically the X rewards membership program is gradually shifting from only business travelers to fulfill more diversified demands and thirdly we are also enhancing our capability to you know receive more business clients and corporate clients to further enhance our exposures and lastly we have been experimenting a lot of you know cross industry you know cooperation with a lot of you know top tier you know vertical players trying to enhance you know members experiences and improve their engagement thank you thank you for the questions our last questions our last questions comes from Ziwei Liu from CPIC sorry please go continue [Foreign language] 好我来回答Ronald刚才的第一个问题啊就是关于我们的EBITDA的margin呃经调整的EBITDA提升呢主要是得益于华住的轻资产战略以及我们对成本的持续管控和优化在运营成本方面我们是依托了强大的供应链能力此时的对间业成本进行了降本和增效和优化同时呢我们在能耗洗涤以及餐饮各方面都做了不少的精细化管理工作同时我们针对我们的直营店我们更积极地寻求各种减租的可能来实现存存量直营店的降低租金成本在销售管理费用方面我们针对中后台的管理费用不断进行了优化和严格的管控截止去年三季度的重组优化同样也带来了今年同期的管理费用的节省而在营销费用上我们会以ROI回报为前提对酒店的品牌市场营销会员获客等方面进行持续必要的投入另外就正如前面金辉讲到的我们在呃收益管理方面是进行了一些系统化的系统性的能力的建设取得了今天今天三季度的成绩我们在成本费用的管控方面也是通过系统化的能力来达成的所以我们的EBITDA的margin的提升还是可以预期的 okay let me do the translation so overall the address the EBITDA margin improvement was mainly because of our M&F line strategy so obviously the M&F has higher margin compared to this and on but in terms of the cost control in terms of the hotel operating cost by leveraging our strong supply chain capability we continuously to reduce the cost per room night sold and for our lease and own hotels we continuously seeking for more rental reduction just trying to improve the profitability level of our lease and own hotels and on the SG&A perspectives we continuously optimizing our you know mid and back office and headquarter just trying to control the cost in terms of the sales and marketing we will based on our ROI and to do some of necessarily investment on for example the hotel brands you know membership as well as the user new new new user acquisition as mentioned by Jin Hui so we have been you know systematically improve our capability to improve our revenue management so as in the cost control side so we are also doing a systematically capability improvement thank you. thank you we have come to the end of the question and answer session that concludes the conference call for today thank you for your participation you may now disconnect your line.