On the whole contract, First of all, we will continue to strengthen the layout of our core cities and core business circles in China to catch up with the basic standards of high-end commercial travel and city culture. On the other hand, we are also choosing to capture the part of leisure demand to increase red power, such as the key potential market of Qiangshan County, as well as some cities in the 5A-level scenic areas with stable traffic.

May 13, 2026 / receipt, needs a key / Wu Jianfeng, CFO | earnings call 2026-05-13 | transcript 3bf3f70a-6986-4a30-9c94-1f4660778679 | chars 33874-34319 | segment 35

Hotel operating costs for the second quarter of 2025 increased by 15.1% year-over-year and 21.3% quarter-over-quarter to RMB 893 million. These increases were primarily due to the increases in variable cost, such as the supply chain cost and hotel manager cost associated with our ongoing hotel network expansion.

Aug 26, 2025 / receipt, needs a key / Wu Jianfeng, CFO | earnings call 2025-08-26 | transcript e0fd5e0a-96d6-4724-b53c-d22089ef3ab7 | chars 20414-20727 | segment 20

The increases were mainly due to increased investment in technology systems and infrastructure to support our spending hotel network and retail business and improve customer experience.

Mar 25, 2025 / receipt, needs a key / CFO, CFO | earnings call 2025-03-25 | transcript 1e7decfb-5800-4269-8d2b-a91fb193f12a | chars 24157-24342 | segment 24

During the second quarter of 2024, domestic travel market demand remained steady.

Aug 29, 2024 / receipt, needs a key / Wang Haijun, CEO | earnings call 2024-08-29 | transcript 4f2be1c9-39d2-4448-ba24-544cb8651836 | chars 1941-2022 | segment 1

Technology and development expenses for the first quarter of 2024 were RMB 24 million, compared with RMB 17 million for the same period of 2023. The increase was mainly due to the increased investment in technology systems and infrastructure to support our expanding hotel network and retail business. as well as improve the customer experience.

May 23, 2024 / receipt, needs a key / Wu Jianfeng, co-CFO | earnings call 2024-05-23 | transcript cce2ecec-7330-4d42-9bbb-77b742b714ac | chars 21691-22036 | segment 22

In the first quarter of 2024, the demand for market travel has declined. Business travel has been affected by uncertainties and other factors, and has been recovering relatively slowly. Experience-based leisure travel has continued to perform well for two or three years on holidays and weekends.

May 23, 2024 / receipt, needs a key / Wang Haijun, CEO | earnings call 2024-05-23 | transcript cce2ecec-7330-4d42-9bbb-77b742b714ac | chars 1770-2066 | segment 1

During the first quarter of 2024, the travel market witnessed contrasting demand patterns. While the recovery of business travel was relatively subdued due to macro uncertainties, experience-driven leisure tourism during holidays and weekends maintained its growth momentum from 2023.

May 23, 2024 / receipt, needs a key / Wang Haijun, CEO | earnings call 2024-05-23 | transcript cce2ecec-7330-4d42-9bbb-77b742b714ac | chars 2067-2351 | segment 2

A Tour Life 3.0 is our mid-scale offering targeting young business travelers, and it has been quite popular with the franchisees since its launch in February last year, evidenced by more than 90 new signings in 2023.

Mar 28, 2024 / receipt, needs a key / Candice Tsang, other | earnings call 2024-03-28 | transcript 1118c1d0-e54f-4064-bbc2-51171a9072a7 | chars 38337-38553 | segment 39

And regarding your second question on the competition in the mid-scale market, we believe that the scale of this market has been verified already. Because with Touralight 3.0's design catering to the aesthetic view of the young people and the consistent service experience we offer, it can well match the young business travelers' need for high-quality accommodation experience, and it has been successfully recognized by the consumers. We just mentioned that the business performance of Qingju 3.0 is extremely competitive in the same business circle. The advantage of the return cycle of investment is very obvious. And as I previously said, the operation performance of a tour like 3.0 hotels are very competitive in their business districts. And the advantage in the cycle of return on investment is quite obvious. We believe that with its powerful competitiveness and the extensive market recognition, Atul Light is poised to become our second brand within Atul Group to hit the scale of 1,000 hotels.

Mar 28, 2024 / receipt, needs a key / Candice Tsang, other | earnings call 2024-03-28 | transcript 1118c1d0-e54f-4064-bbc2-51171a9072a7 | chars 39799-40805 | segment 41

These results underscore the resilience of our hotel business, which is primarily fueled by business travel demand.

Mar 28, 2024 / receipt, needs a key / Wang Haijun, CEO | earnings call 2024-03-28 | transcript 1118c1d0-e54f-4064-bbc2-51171a9072a7 | chars 6369-6484 | segment 6

As the first resort brand to choose for business travel, our CRS channel sales and business ratio has risen by 65.1% this quarter, Despite the softening of leisure travel demand during the fourth quarter, business travel activity remained solid. Ator, as the preferred brand for business travelers, experienced an increase in room nights sold through our CRS to 65.1% for the fourth quarter and 63.4% for the full year.

Mar 28, 2024 / receipt, needs a key / Haijun, CEO | earnings call 2024-03-28 | transcript 1118c1d0-e54f-4064-bbc2-51171a9072a7 | chars 12683-13102 | segment 12

Our location in Asia 4.0 is different from traditional commercial hotels. Well, thank you very much for your questions. Let me answer that. A tool 4.0 with nature distinguishes itself from our traditional business hotels, or of others. It incorporates many natural, native elements to create a sense of natural tranquility. And this provides a relaxation and leisurely ambience for our guests who are on the business trips or if they are constantly on the go.

Nov 16, 2023 / receipt, needs a key / Manager Cheng, other | earnings call 2023-11-16 | transcript e8dae93b-4e4d-4b2b-96d9-02e517e38571 | chars 29841-30300 | segment 30