A：The key factors contributing to the solid momentum in China's domestic travel include the overall rise in railway and aviation cross-regional traffic, an increase in the number of trips, and a growth in tour spending. Additionally, spring breaks timed with major holidays like Chile Festival and May Day helped balance passenger flows, while the implementation of visa policies has fueled the continuous growth of inbound tourism.

A：Hfour is addressing the structural issue of a mismatch between hotel supply and consumer demand in China by pushing forward supply-side reform and hotel network optimization. This strategy aligns with the government's 15-year plan guidelines on deepening supply-side structural reform. Hfour aims to further expand its market share, deliver sustainable and high-quality growth, and fulfill its mission of revitalizing China's hotel industry.

A：In the first quarter of 2026, Hfour's hotel operations achieved a 14.1% year-over-year increase in the number of rooms operated, driving a strong network expansion. The group's hotel GMV grew 17.4% year over year, and asset-light and franchise business saw another quarter of solid growth in hotel network revenue and profit. The performance was supported by a 5% year-over-year increase in ADR, a script script over-year growth in RevPar, and a focus on network expansion into new cities and regions, as well as deepening penetration in lower-tier cities.

A：Hfour's approach to strengthening its mass market brand and hotel network coverage involves continuous upgrades of core brands such as Han Qing Ji Hotel and the launch of new brands like Haning Ying. The company is enhancing geographic coverage and expanding into lower-tier cities while also optimizing the hotel portfolio in Tier I and II cities, particularly in core business districts. The company is confident that its premium product quality and strong brand power will enable it to recapture opportunities in mature markets.

A：Hfour has made steady progress in the upscale and mid-scale segments of the hotel industry by adopting a multi-brand strategy with clear brand positioning and value propositions. The company is expanding its upper-mid-scale hotel portfolio with brands like Intra-city Grandi, Crystal, and Mercure. At the end of the first quarter, the number of upper-mid-scale hotels in operation and in the pipeline grew by 14.4%.

A：Hfour's group membership program plays a vital role in its sustainable long-term development by strengthening direct sales capabilities. As the hotel network expands to more cities, the membership base and room-night growth by members contribute to robust growth. Going forward, the company plans to further enhance brand building, diversify customer acquisition scenarios, and improve member benefits and stickiness.

A：The operational highlights of HWI business in the third quarter of 2026 include a 5.0% year-over-year increase in VPARP driven by a script increase in ADR and an improvement in occupancy rate. The company also achieved initial progress in the Asia Pacific market, expanding its footprint into key Southeast Asian markets such as Thailand, Laos, and Cambodia. HWI opened hotels across Southeast Asia and continued to build its presence in the economy, mid-scale, and upper mid-scale segments to cater to diverse guest travel needs.

A：The company aims to build a solid brand influence in the Asia Pacific region and accumulate local operational expertise in the Southeast Asian market, leveraging their standardized branded hotel product, systematic and digitalized operation capabilities, and supply chain advantages.

A：The company renamed their operating segments to HWC and HWI, replacing the previous legacy names, and made a minor estimate realignment between HWC and HWI effective 2026. Prior period figures were restated to align with the current segment presentation for consistency and comparability.

A：Revenue grew 11.1% year over year to RMB 6.0 billion. Adjusted EBITDA was up 24.2% year over year to RMB 1.9 billion, with a margin expanding 3.3 percentage points year over year to 31.0%. Adjusted net income grew 38.6% year over year to RMB 1.1 billion, with the adjusted net income margin improving 3.5 percentage points to 17.9%. The strong EBITDA growth and margin improvement were mainly attributable to a growing profit contribution from the upscale business.

A：The company generated RMB 233 million in operating cash flow during the first quarter and held RMB 15.8 billion in cash and cash equivalents, with a cash position of RMB 9.6 billion on the balance sheet.

A：The company is focusing on building core competencies such as hotel brand, operational management capability, and membership. They maintain a cautious optimistic outlook on occupancy rate due to a slowdown in industry supply increase and a rational pricing environment.

A：The company opened 537 hotels in the first quarter, which is a high level compared to historical performance. Full year hotel openings are impacted by the timing and cycle of the real estate market. The company's hotel opening strategy focuses on high-quality growth and has maintained a healthy level of new signings. They continue to implement a dual strategy of penetrating lower-tier cities and returning to core and premium locations in tier 1 and 2 cities based on Henzihu reports.

A：The comparison of Revpar performance between the company's scale, economy, and mid-scale is not directly provided in the transcript. However, the company's intention to focus on the upscale segment is mentioned, specifically targeting intercity and green aspects in the coming period. The company is confident in delivering high-quality growth in both lower-tier cities and tier 1 and 2 cities, though detailed expansion targets and operational focuses for the upscale segment are pending further context.

A：The optimistic skill segment is a core strategic part of the company's overall export strategy, showing better Revpar recovery in the upper mid-scale segment than the economy. This indicates growing brand power and product quality in the upmarket segment.

A：The company has adopted a margin brand strategy in the optimal growth segment, focusing mainly on intercity and franchisee Ma and Crystal. The total network growth in the upper scale is solid, but some brands still need further improvement in overall brand coverage.

A：The strategy for the upper mid-scale segment involves returning to and refocusing on tier 1 and tier 2 cities, with the opening of flagship stores in core districts.

A：The company acknowledges the limited impact of the Middle East crisis on its international business, with manageable and non-material effects on profits. It is taking efforts to control costs and manage the increase in energy costs. The company is closely monitoring the overall development and the impact of the crisis.

A：The company is confident that the adjusted EBITDA model for its age world hotel business will continue to improve steadily. It is also focusing on improving performance in the overall lease and own business through revenue management and cost control. The company is pushing forward cost reduction initiatives and making necessary investments in key areas such as digitalization, technology, and AI development. Full-year cost control will ensure investments for long-term sustainable growth.

A：The company has a strong and solid balance sheet and stable cash flow. Going forward, it plans to maintain its shareholder return plan as it continues with the asset light strategy and cost reduction initiatives. Any updates will be communicated to the market in a timely manner, but the overall direction is to use cash flow to return value to shareholders.