GreenTree Hospitality Group Ltd (GHG) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for GreenTree's Second Half and Fiscal Year 2022 Earnings Conference Call.

女士們、先生們，大家好。感謝您出席格林豪泰下半年及 2022 財年收益電話會議。

(Operator Instructions)

（操作員說明）

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, Mr. Rene Vanguestaine of Christensen, GreenTree's Investor Relations firm. Please proceed, Rene.

提醒一下，今天的電話會議正在錄音。現在我想將會議轉交給今天電話會議的東道主，格林豪泰投資者關係公司 Christensen 的 Rene Vanguestaine 先生。請繼續，雷內。

Thank you, Andrea. Hello, everyone, and thank you for joining us. We have posted a PowerPoint presentation that accompanies our comments to our IR website at ir.998.com. On the call today from GreenTree are Mr. Alex Xu, Chairman and Chief Executive Officer; Ms. Selina Yang, Chief Financial Officer; and Ms. Megan Huang, Vice President of Sales and Marketing. Mr. Xu will present the company's performance overview of the second half and the full year of 2022, 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 that will follow.

謝謝你，安德里亞。大家好，感謝您加入我們。我們已將附有評論的 PowerPoint 演示文稿發佈到我們的 IR 網站 ir.998.com。今天，格林豪泰董事長兼首席執行官徐先生 (Alex Xu) 接聽了電話；楊女士，首席財務官；以及銷售和營銷副總裁 Megan Huang 女士。徐先生將介紹公司下半年和 2022 年全年的業績概覽，黃女士將討論業務運營，楊女士將討論財務和指導。他們將在隨後的問答環節回答您的問題。

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 Litigation 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 terminologies such as may, will, expects, anticipates, aims, future, intends, plans, believes, estimates, continue, target, is or are likely to, going forward, confident, outlook and similar statements. Any statements that are not historical facts, including statements about the company and its industry are forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議包含經修訂的 1934 年證券訴訟法第 21E 條含義以及 1995 年美國私人證券訴訟改革法中定義的前瞻性陳述。前瞻性陳述可以通過諸如可能、將、期望、預期、目標、未來、打算、計劃、相信、估計、繼續、目標、是或可能、前進、自信、展望和類似陳述等術語來識別。任何非歷史事實的陳述，包括有關公司及其行業的陳述，均為前瞻性陳述。

Such statements are based upon management's current expectation and current market and operating conditions and relate to events that involve known and unknown risk, 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.

此類陳述基於管理層當前的預期以及當前的市場和經營狀況，並涉及涉及已知和未知風險、不確定性和其他因素的事件，所有這些因素都難以預測，並且其中許多因素超出了公司的控制範圍，這可能會導致公司的實際業績、業績或成就與前瞻性陳述中的內容存在重大差異。您不應過度依賴這些前瞻性陳述。

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 currently -- are current as of today's date. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.

有關這些和其他風險、不確定性或因素的更多信息包含在該公司向美國證券交易委員會提交的文件中。提供的所有信息，包括本次電話會議期間所做的前瞻性陳述，均為截至今天的最新信息。除適用法律要求外，公司不承擔因新信息、未來事件或其他原因而更新任何前瞻性陳述的義務。

It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Alex Xu. Mr. Xu, please go ahead.

現在我很高興向大家介紹我們的董事長兼首席執行官徐先生。徐先生，請講。

Thanks, Rene. Hello, everyone, and thank you for joining us today. First, I do want to make apology to you because of the delays of the posting of the PPT, the meeting was delayed for the 15 minutes. We thank you for your understanding.

謝謝，雷內。大家好，感謝您今天加入我們。首先，我想向大家致歉，因為PPT的發布延遲，會議延遲了15分鐘。我們感謝您的理解。

So 2022 was a year of -- full of change and challenges. During the first half, COVID-19 outbreaks in many parts of the country resulted in lockdown in many cities especially in Shanghai. As we enter the third quarter, transportation restrictions were relaxed and RevPAR recovered. However, October and November brought a fresh wave of outbreaks, slowing down of our recovery once again. And to our relief, thanks to the lifting of the anti-pandemic measures early December, RevPAR recovered at the end of the year to more than 95% of its pre-pandemic levels.

因此，2022 年是充滿變化和挑戰的一年。上半年，新型冠狀病毒肺炎（COVID-19）在全國多地爆發，導致許多城市特別是上海封鎖。進入第三季度，交通限制放鬆，每間可用客房收入 (RevPAR) 回升。然而，10月和11月帶來了新一波疫情，我們的複蘇再次放緩。令我們欣慰的是，由於12月初抗疫措施的取消，RevPAR在年底恢復至疫情前水平的95%以上。

Regardless of these external environmental changes, we continued to execute our long-term strategic growth plan that strives to assist franchisees in maintaining quality operations, extending our hotel networks and delivering stable operating profitabilities and maintaining a healthy cash flow.

儘管外部環境發生變化，我們仍繼續執行長期戰略增長計劃，努力協助加盟商保持優質運營、擴展酒店網絡、提供穩定的運營盈利能力並保持健康的現金流。

Please turn to Slide 5. Compared with the second half of 2021, RevPAR decreased 4.2% to RMB 112. Total revenues decreased to 21.1% to RMB 487.8 million. The decrease was partially due to the deconsolidation of Argyle since June 2022 and the disposal of our interest in Urban on November 25, 2022. Excluding these impacts, organic revenues decreased 15.7% compared to 1 year ago.

請參閱幻燈片 5。與 2021 年下半年相比，每間客房收入下降 4.2% 至人民幣 112 元。總收入下降 21.1% 至人民幣 4.878 億元。下降的部分原因是自 2022 年 6 月以來 Argyle 的分拆以及我們於 2022 年 11 月 25 日出售 Urban 的權益。排除這些影響，有機收入與一年前相比下降了 15.7%。

Income from operations increased to RMB 20 million, a margin of 4.1%. Excluding this, income from purely operating activities decreased 17.6% to RMB 85 million, with a margin of 17.4%. And the net income was negative RMB 48.3 million with a margin of negative 9.9%.

營業收入增至人民幣2,000萬元，利潤率為4.1%。剔除此影響，純經營活動收入下降17.6%至人民幣0.85億元，利潤率為17.4%。淨利潤為負4830萬元，利潤率為負9.9%。

Adjusted EBITDA as non-GAAP decreased to 21.2% to RMB 118.3 million with a margin of 24.3%. Cash provided by operating activities were RMB 151 million. Slide 6 shows detailed numbers for total revenues, operating income, net income and adjusted EBITDA.

按非公認會計準則計算的調整後 EBITDA 下降至 21.2%，至人民幣 1.183 億元，利潤率為 24.3%。經營活動提供的現金為1.51億元。幻燈片 6 顯示了總收入、營業收入、淨利潤和調整後 EBITDA 的詳細數據。

On Slide 7, operating performances was continuously impacted by COVID outbreaks during the second half of 2022. RevPAR was at 80.3% and 80.7% of the 2019 levels in the third and the fourth quarter, respectively, exceeding the industry average.

從幻燈片 7 可以看出，2022 年下半年，運營業績持續受到新冠肺炎疫情的影響。第三季度和第四季度的 RevPAR 分別為 2019 年水平的 80.3% 和 80.7%，超過行業平均水平。

Slide 8 shows the weekly RevPAR performance in 2022 and the first quarter of 2023 compared with 2019. In the second half of 2022, due to the resurgence of COVID-19, RevPAR fluctuated in the third quarter and was slowing down once again in October and November. RevPAR gradually recovered to more than 95% of its pre-pandemic levels in the last week of 2022.

幻燈片 8 顯示了 2022 年和 2023 年第一季度與 2019 年相比的每週 RevPAR 表現。2022 年下半年，由於 COVID-19 捲土重來，RevPAR 在第三季度出現波動，並在 10 月份和 10 月份再次放緩。十一月。 2022 年最後一周，RevPAR 逐漸恢復至大流行前水平的 95% 以上。

RevPAR recovery slowed again during the first half of January due to the rapid involvement of pandemic after pandemic control were lifted in China. However, it recovered to around 90% of its pre-pandemic levels over the Chinese New Year, thanks to family reunions.

由於中國解除疫情管控後疫情迅速捲入，RevPAR 恢復速度在 1 月上半月再次放緩。然而，由於家庭團聚，農曆新年期間，該數字恢復到了大流行前水平的 90% 左右。

During this festival, according to the Ministry of Culture and Tourism, the number of tourists recovered to 88.6% and the domestic tours and revenues recovered to 73.1% of the levels in the same period of 2019. Such a recovery continued to increase in February, exceeding the levels of 2019. However, it pulled back a little bit in March due to outbreaks of Influenza A in certain cities.

據文化和旅遊部數據，本次節日期間，遊客數量恢復至2019年同期的88.6%，國內游人數和收入恢復至2019年同期水平的73.1%。這種複蘇在2月份繼續加大，超過2019年水平。但3月份，受部分城市甲型流感疫情影響，略有回落。

Now starting with Slide 10. Let's talk about the strategy and the execution with the further expansion in the mid-to-upscale segment under Tier 3 on the lower cities in South China as well as recent development in 2023 Q1 regarding the acquisition of Da Niang Dumplings and Bellagio, 2 leading restaurant chains in China from our controlling shareholder.

現在從幻燈片10開始。我們來談談華南低線城市三線中高檔市場的進一步擴張以及2023年第一季度收購大娘的近期進展的戰略和執行餃子館和寶麗宮是我們控股股東旗下的中國兩家領先的連鎖餐廳。

Let's take a look at Slide 11. We have been continuously growing our mid-to-upscale segment over the past few years. For a like-to-like comparison, we have excluded the Argyle and Urban hotels in the past few years. By the end of the second half of 2022, we had 426 hotels. That's 10.5% of our total hotel portfolio in this segment, up from only 50 in 2017. I will plan to open more in this year.

讓我們看一下幻燈片 11。在過去的幾年裡，我們一直在不斷發展中高檔細分市場。為了進行同類比較，我們排除了過去幾年的阿蓋爾酒店和城市酒店。截至 2022 年下半年末，我們擁有 426 家酒店。這占我們該細分市場酒店總數的 10.5%，而 2017 年只有 50 家。我計劃在今年開設更多酒店。

Please turn to Slide 12. Over the past 5 years, most of our newly -- new hotels have been in China's thriving Tier 3 in the lower cities. In addition, hotels in some lower-tier cities are performing well, and we continue to execute our strategic plan. 72.6% of the hotels in our current pipelines are in such locations and will further capitalize on the substantial opportunities in such locations.

請參閱幻燈片 12。在過去 5 年裡，我們大多數新開的酒店都位於中國蓬勃發展的三線城市。此外，一些低線城市的酒店表現良好，我們繼續執行我們的戰略計劃。我們目前籌建的酒店中有 72.6% 位於這些地區，並將進一步利用這些地區的大量機會。

As a testament to the soundness of this strategy, over the past 3 years, our business in such cities was much more resilient under the impact of the COVID panned other cities. However, in the first quarter of 2023 with the resumption of trade shows and the government investment promotion and commissions, the recovery in Tiers 1 and Tier 2 cities outpaced the recovery in the lower Tier 3 cities.

過去三年來，我們在這些城市的業務在新冠疫情席捲其他城市的影響下表現得更加有彈性，這證明了這一戰略的合理性。然而，2023年第一季度，隨著貿易展覽的恢復以及政府招商引資和佣金的恢復，一二線城市的複蘇速度超過了三線城市的複蘇速度。

Since Q4 of 2020, we have been building flagship on all hotels in strategic locations, especially in Central China and the Southeast and Southwest market. During the first quarter of 2023, we opened 4 LO hotels in east high-speed Railstation, Chongqing Jiangbei International Airport and Fuzhou high-speed Railstation. Our expansion footprint covers Chongqing as well as Hubei, Yanxi, Shanghai and other premises, all well located around transportation hubs, central business districts or government centers. By showcasing our brand and operating standards, we believe these hotels will also help us to attract more high-quality franchisees, further accelerating our growth in these areas.

自2020年第四季度以來，我們一直在戰略位置的所有酒店上打造旗艦店，特別是在華中以及東南和西南市場。 2023年第一季度，我們在高鐵東站、重慶江北國際機場和福州高鐵站開設了4家LO酒店。我們的擴張足跡覆蓋重慶以及湖北、延西、上海等地，均位於交通樞紐、中央商務區或政府中心周圍。通過展示我們的品牌和運營標準，我們相信這些酒店也將幫助我們吸引更多優質加盟商，進一步加速我們在這些領域的增長。

On Slide 13, let me now say a few words about the acquisition of affiliated food and restaurant business. We completed the acquisition of Da Niang Dumplings and Bellagio during the first quarter of 2023. Da Niang Dumplings is a quick service restaurant chain in China with restaurant covering 236 locations in 35 cities as of December 31, 2022. The chain had 99 operated -- self-operated restaurants and 137 franchised restaurants.

在幻燈片 13 上，我現在就收購附屬食品和餐廳業務說幾句話。我們於 2023 年第一季度完成了對大娘餃子和百樂宮的收購。大娘餃子是中國一家快餐連鎖店，截至 2022 年 12 月 31 日，其餐廳覆蓋 35 個城市的 236 家門店。該連鎖店擁有 99 家門店——自營餐廳和特許經營餐廳137家。

Bellagio is a casual dining restaurant chain with a restaurant covering 36 locations in more than 14 cities as of December 31, 2022, including in Mainland China, Macau and the Southeast Asia.

截至2022年12月31日，寶麗嘉是一家休閒連鎖餐廳，其餐廳覆蓋超過14個城市的36家門店，包括中國內地、澳門和東南亞。

At the end of the last year, the chain had 27 self-operated and 9 franchised restaurant. For the year of 2022, these 2 brands generated a combined unaudited revenue of about RMB 509 million.

截至去年底，該連鎖店擁有27家自營餐廳和9家特許經營餐廳。 2022年，這兩個品牌未經審計的總收入約為人民幣5.09億元。

Since demand for such healthy and affordable fast food and casual dining services should be more stable and less dependent on discretionary spending compared with our existing hotel services, we expect this acquisition business to provide a more stable revenue stream that may offset cyclical aspects of our hotel businesses. The restaurant and hotel businesses are also complementary in nature as we witnessed increasing demand for food-related services in the local communities, and we expect cross-selling opportunities from the 2 businesses.

由於與我們現有的酒店服務相比，對這種健康且實惠的快餐和休閒餐飲服務的需求應該更加穩定，並且更少依賴可自由支配的支出，我們預計這項收購業務將提供更穩定的收入來源，可能抵消我們酒店的周期性方面企業。餐廳和酒店業務本質上也是互補的，因為我們看到當地社區對食品相關服務的需求不斷增長，我們預計這兩家企業將帶來交叉銷售機會。

We also expect the integration to leverage upon synergies between our respective team within our company's unique ecosystem, sharing common resources, achieving economy of scales and improving company's overall operating performance as demonstrated by our stable profit margin and the cash flow.

我們還期望整合能夠利用我們公司獨特的生態系統中各自團隊之間的協同效應，共享共同資源，實現規模經濟並提高公司的整體經營業績，正如我們穩定的利潤率和現金流所證明的那樣。

With the recovery of the industry, we will focus on providing -- improving operating management efficiency, launching products with expedited recreation and higher cost, higher operating performance, widely and safely upgrade IT system and deploy robotic system and ultimately enhancing the profitability of our franchisees.

隨著行業的複蘇，我們將重點提供——提高運營管理效率，推出更快捷、成本更高的產品，更高的運營績效，廣泛安全地升級IT系統和部署機器人系統，最終提高加盟商的盈利能力。

The road to recovery is full of hope and also full of challenges. But with the support of our shareholders, franchisees and employees, we are confident we'll bring better products and services and create greater value for all.

復甦之路充滿希望，也充滿挑戰。但在股東、加盟商和員工的支持下，我們有信心為所有人帶來更好的產品和服務，創造更大的價值。

Now let me turn the phone call to Megan.

現在讓我把電話轉給梅根。

Thank you, Alex. Please turn to Slide 15, which highlights the growth in a number of hotels and the year-over-year rebound in our operating metrics from the impact of COVID-19. Blended ADR of the fourth quarter in 2022 decreased 2.9% to RMB 165. Occupancy rate decreased [6.2% to 63%], and the RevPAR decreased 11.6% to RMB 104.

謝謝你，亞歷克斯。請參閱幻燈片 15，其中重點介紹了許多酒店的增長以及我們的運營指標在 COVID-19 影響下的同比反彈。 2022 年第四季度混合 ADR 下降 2.9%，至 165 元人民幣。入住率下降[6.2%至 63%]，每間可用客房收入下降 11.6%，至 104 元人民幣。

Moving to Slide 16. For an apple-to-apple comparison, we have excluded the Argyle and Urban hotels and presented the number of the organic hotels only. At the end of the fourth quarter of 2022, we had 4,059 organic hotels in operation, 5.2% more than the year before. 61 of these hotels were leased and operated, or LO hotels and 3,998 were franchised and managed for FM hotels. While the mid-scale segment remains the core of our business with 72.8% of all our hotels, we continued our expansion into the higher-end segment. By the end of the fourth quarter, mid-to-upscale hotels accounted for 10.5% of our total portfolio, but the apartment segment remained stable at 15.8%.

轉向幻燈片 16。為了進行同類比較，我們排除了 Argyle 和 Urban 酒店，僅提供了有機酒店的數量。截至 2022 年第四季度末，我們有 4,059 家有機酒店在運營，比上年增加 5.2%。其中 61 家酒店是租賃和經營的，即 LO 酒店，3,998 家是特許經營和管理的 FM 酒店。雖然中檔酒店市場仍是我們業務的核心，占我們所有酒店的 72.8%，但我們繼續向高端市場擴張。截至第四季度末，中高檔酒店占我們總投資組合的10.5%，但公寓部分穩定在15.8%。

We solidified our already dominant position in Tier 3 and lower cities, where 68.2% of our hotels were located at the end of 2022.

我們鞏固了在三線及以下城市的主導地位，截至 2022 年底，我們的酒店有 68.2% 位於這些城市。

On Slide 17, you can see that we opened 136 organic hotels in China, less than planned due to COVID-19 compared to 265 in the second half of 2021. 15 were in the mid-to-upscale segment, 88 in the mid-scale segment and 32 in the apartment segment. 12.1% of these new hotels were in the mid-to-upscale segment of the market, 9 were in Tier 1 cities, 23 in Tier 2 cities and the remaining 104 in Tier 3 and lower cities. We closed 11 hotels, and we added a net 125 hotels to our portfolio.

在幻燈片 17 上，您可以看到我們在中國開設了 136 家有機酒店，由於新冠肺炎 (COVID-19) 的影響，數量少於計劃，而 2021 年下半年的數量為 265 家。15 家屬於中高檔酒店，88 家屬於中高檔酒店。規模細分市場有 32 家，公寓細分市場有 32 家。其中12.1%的新酒店位於中高檔市場，其中9家位於一線城市，23家位於二線城市，其餘104家位於三線及以下城市。我們關閉了 11 家酒店，並在投資組合中淨增了 125 家酒店。

Slide 18 shows the trend of our quarterly operating performance. In the fourth quarter of 2022, RevPAR for our LO hotels increased to RMB 130. RevPAR for our FM hotels decreased to RMB 103. ADR for our LO hotels decreased to RMB 208 and ADR for our FM hotels decreased to RMB 163.

幻燈片 18 顯示了我們季度經營業績的趨勢。 2022年第四季度，我們的LO酒店的每間客房收入增加至人民幣130元。我們的FM酒店的每間客房收入下降至人民幣103元。我們的LO酒店的平均房價下降至人民幣208元，我們的FM酒店的平均房價下降至人民幣163元。

Occupancy at our LO hotels decreased to 62.4% and occupancy at our FM hotels decreased to 63%. Entering the first quarter of 2023, RevPAR continued to recover for both LO hotels and FM hotels.

LO 酒店的入住率下降至 62.4%，FM 酒店的入住率下降至 63%。進入 2023 年第一季度，LO 酒店和 FM 酒店的 RevPAR 持續回升。

Slide 19 highlights the growth in our membership programs, which accounted for most of our direct sales in the first half of the year. Individual membership grew to 78 million, up from 69 million a year ago and corporate members grew to 1.94 million, up from 1.85 million a year ago. We have one of the highest percentage of room nights booked by corporate and individual members in the industry.

幻燈片 19 強調了我們會員計劃的增長，該計劃占我們上半年直接銷售額的大部分。個人會員從一年前的 6900 萬增加到 7800 萬，企業會員從一年前的 185 萬增加到 194 萬。我們是業內企業和個人會員預訂間夜比例最高的公司之一。

With that, I will pass the call over to our CFO, Selina.

這樣，我會將電話轉給我們的首席財務官 Selina。

Thank you, Megan. Please turn to Slide 20. In the second half of 2022, total revenues decreased 21.1% year-over-year to RMB 487.8 million. The decrease was primarily due to the consolidation of Argyle and the disposal of our interest in Urban, and the impact of COVID-19 which resulted in lower RevPAR at LO hotels and FM hotels.

謝謝你，梅根。請參閱幻燈片20。2022年下半年，總收入同比下降21.1%至人民幣4.878億元。下降的主要原因是 Argyle 的合併和 Urban 權益的出售，以及 COVID-19 的影響導致 LO 酒店和 FM 酒店的 RevPAR 下降。

Excluding the impact of Argyle and Urban, the total revenues decreased by 15.8% and total revenues from FM hotels were RMB 315.2 million, down 16.8% year-over-year. While total revenues from LO hotels decreased 23.6% to RMB 167.2 million. Also excluding the impact of Argyle and Urban, total revenues from FM hotels decreased to 16.3% and total revenues from LO hotels decreased to 13.6% year-over-year.

剔除Argyle和Urban的影響，總收入下降15.8%，FM酒店總收入為人民幣3.152億元，同比下降16.8%。而LO酒店的總收入則下降23.6%至人民幣1.672億元。同樣排除 Argyle 和 Urban 的影響，FM 酒店的總收入同比下降至 16.3%，LO 酒店的總收入同比下降至 13.6%。

On Slide 21, you can see that total costs and expenses decreased 3.5% year-over-year to RMB 66.8 million. Excluding the impact from our newly opened lease operated hotels and other general expenses, the costs and expenses from ordinary cost of our operating business decreased 9.1% year-over-year.

在幻燈片 21 中，您可以看到總成本和費用同比下降 3.5% 至人民幣 6680 萬元。剔除新開租賃經營酒店及其他一般費用的影響，我們經營業務的一般成本及費用同比下降9.1%。

Total costs and expenses are composed of hotel operating costs and expenses, selling and marketing expenses, general and administrative expenses. Hotel operating costs were RMB 286.3 million, down 21.5% year-over-year. The decrease was mainly due to the deconsolidation of Argyle and the disposal of our interest in Urban as well as disposal of lease operating hotels.

總成本和費用包括酒店運營成本和費用、銷售和營銷費用、一般和管理費用。酒店運營成本為人民幣2.863億元，同比下降21.5%。減少的主要原因是Argyle 的分拆以及我們在Urban 的權益的處置以及租賃經營酒店的處置。

Selling and marketing expenses were RMB 19.7 million, a year-over-year decrease of 27.4%. The decrease was mainly attributable to lower advertising expenses and staff-related expenses due to less business travel caused by pandemic and deconsolidation of Argyle and disposal of our interest in Urban.

銷售及營銷費用為人民幣1,970萬元，同比下降27.4%。減少的主要原因是由於流行病導致商務旅行減少以及Argyle的分拆以及我們在Urban的權益的出售，導致廣告費用和員工相關費用減少。

General and administrative expenses were RMB 111.2 million in the second half of 2022, down 13.9% compared with second half of last year. The decrease was mainly attributable to the reduction in consulting fees and the consolidation of Argyle and disposal of our interest in Urban.

2022年下半年一般及行政費用為人民幣111.2百萬元，較去年下半年下降13.9%。減少的主要原因是諮詢費的減少以及Argyle的合併以及我們在Urban的權益的出售。

Our general expenses were RMB 65 million in the second half of 2022, which included provisions for loan receivables related to franchisee loans and impairments for certain fixed assets.

2022年下半年，我們的一般費用為人民幣6500萬元，其中包括與加盟商貸款相關的應收貸款撥備和某些固定資產減值準備。

Turn to Slide 22. Income from operations was RMB 20 million with a margin of 4.1%. Excluding other general expenses mentioned above, income for operating activities were [RMB 65 million], with a margin of 17.4%. And net income was negative RMB 23.9 million with a margin of negative 2.5%. Adjusted EBITDA decreased 21.2% to RMB 118.3 million, and margin was same as last year.

請參閱幻燈片 22。營業收入為人民幣 2,000 萬元，利潤率為 4.1%。剔除上述其他一般費用，經營活動收入為【6500萬元】，利潤率為17.4%。淨利潤為負2390萬元，利潤率為負2.5%。調整後EBITDA下降21.2%至人民幣1.183億元，利潤率與去年持平。

Core net income was RMB 67.7 million with a margin of 39%. The decrease was primarily due to the impact of newly opened hotels. Excluding the impact of newly opened and pipeline hotels, adjusted EBITDA, non-GAAP for the second half of 2022 was RMB 146 million with a margin of 34.6%. And core net income non-GAAP was RMB 422 million with a margin of 30%.

核心淨利潤為人民幣6770萬元，利潤率為39%。下降主要是由於新開業酒店的影響。剔除新開業和籌建酒店的影響，2022年下半年調整後的非美國通用會計準則 EBITDA 為人民幣 1.46 億元，利潤率為 34.6%。非美國通用會計準則核心淨利潤為人民幣 4.22 億元，利潤率為 30%。

Please turn to Slide 23. Net income per ADS was negative RMB 0.48, negative USD 0.07. And core net income per ADS basic and diluted non-GAAP was RMB 1.17. That is USD 0.25.

請參閱幻燈片23。每股ADS淨利潤為負0.48元人民幣，負0.07美元。每 ADS 基本和稀釋非公認會計準則核心淨利潤為 1.17 元人民幣。即 0.25 美元。

Let's now take a look at Slide 24. As of December 31, 2022, the company had total cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and term deposits of RMB 1,055.5 million compared to RMB 1,079.5 million as of June 30, 2022. The decrease was primarily attributable to the repayment of bank loans offset by cash from operating activities.

現在讓我們看一下幻燈片 24。截至 2022 年 12 月 31 日，該公司的現金和現金等價物總額、限制性現金、短期投資、股本證券投資和定期存款為人民幣 10.555 億元，而 2022 年 12 月 31 日為人民幣 10.795 億元。截至2022年6月30日。減少主要是由於償還銀行貸款被經營活動現金抵消所致。

On Slide 26. Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect total revenues of total hotel business for the full year of 2023 to grow 30% to 35% over the 2022 levels and grow 5% to 9% over the year of 2019 levels.

幻燈片26。考慮到長期趨勢的複蘇和短期行業波動，我們預計2023年全年酒店業務總收入將較2022年增長30%至35%，增長5%較 2019 年水平增長 9%。

Furthermore, considering the merger of the restaurant business into the group and their revenue contribution from restaurant business, we expect total revenues of the whole company for the full year of 2023 to grow 90% to 95% over the 2022 levels. That is 50% to 55% over the 2019 levels.

此外，考慮到餐廳業務併入集團以及餐廳業務對收入的貢獻，我們預計2023年全年全公司總收入將較2022年增長90%至95%。這比 2019 年的水平增加了 50% 至 55%。

This concludes our prepared remarks. Operator, we are now ready to begin the Q&A session. Thank you.

我們準備好的發言到此結束。接線員，我們現在準備開始問答環節。謝謝。

(Operator Instructions)

（操作員說明）

Our first question will come from Jane Wang of UBS.

我們的第一個問題將來自瑞銀的 Jane Wang。

So my first -- I have 2 questions in total. The first is that we've seen the deconsolidation of Urban and in Argyle. So do we have further merchant acquisition plans in the future? And what would be the strategic difference?

我的第一個問題——我總共有兩個問題。首先，我們看到了城市和阿蓋爾的解體。那麼未來我們還有進一步的招商計劃嗎？戰略差異是什麼？

And the second question would be, we see that the current pipeline isn't quite high at the moment. And do we receive any pressures for new hotel expansions at the moment from hotel investors?

第二個問題是，我們發現當前的管道目前還不是很高。目前我們是否受到酒店投資者要求擴建新酒店的壓力？

Okay, Jane. Thank you so much for reaching the question. Great questions. I will pick up those questions. Selina, okay. So with regard to the deconsolidation of Argyle and the disposal of the interest in Urban, that has not changed our strategy. I think we'll continue to explore new opportunities of merger and acquisitions. And the reason is now, we also have many other smaller investments in the local strong operating teams and local companies. And we have gained valuable experience and lessons during the last 4 years of growth plan.

好吧，簡。非常感謝您提出這個問題。很好的問題。我會回答這些問題。賽琳娜，好吧。因此，關於Argyle的分拆和Urban權益的處置，這並沒有改變我們的策略。我認為我們會繼續探索新的併購機會。原因是現在，我們還對當地強大的運營團隊和當地公司進行了許多其他較小的投資。在過去4年的增長計劃中，我們獲得了寶貴的經驗和教訓。

And so with this kind of valuable experience, I think that will help us to identify more accurately, more suitable partners that will further help both companies to grow our business together and to create value for both of the shareholders. So that is our merger and acquisition plan to supplement our main growth of organic growth. And -- but we'll not lose our focus on the organic growth, which is still the main driver of our business. And we have accumulated a great amount of experience during the challenging time, how to maintain a healthy operation, healthy margin.

因此，通過這種寶貴的經驗，我認為這將有助於我們找到更準確、更合適的合作夥伴，從​​而進一步幫助兩家公司共同發展我們的業務，為雙方股東創造價值。這就是我們的併購計劃，以補充我們有機增長的主要增長。而且，我們不會失去對有機增長的關注，這仍然是我們業務的主要驅動力。我們在充滿挑戰的時期積累了大量的經驗，如何保持健康的運營、健康的利潤率。

Just to give you a perspective of the -- our audience, the last 3 years, especially 2022 was the toughest year for the tourism and hotel industry. Just giving a perspective. The total tourism revenue for the 2019, that's a benchmark year, was RMB 6 trillion. And by 2020, because the first half of 2020 is a lockdown, so the full year of 2020, the tourism revenue is roughly RMB 3 trillion. So that's like a 60% drop, okay? And then 2021 recovered back to RMB 2.8 trillion, and 2022 brought back to roughly just a little bit over RMB 2 trillion for the tourism industry.

只是為了向您介紹我們的觀眾，過去 3 年，尤其是 2022 年，是旅遊業和酒店業最艱難的一年。只是提供一個視角。 2019年作為基準年，旅遊總收入為6萬億元人民幣。而到了2020年，因為2020年上半年是封城，所以2020年全年，旅遊收入大概是3萬億元人民幣。那就相當於下降了 60%，好嗎？然後，2021 年旅遊業恢復至 2.8 萬億元人民幣，2022 年旅遊業恢復至 2 萬億元人民幣略多一點。

So -- and with that amount of the tourism numbers and tourism revenue drop, we have been able to maintain a healthy, stable cash flow and operations with the organic growth. So we're focusing on that, leveraging of the healthy and quick recovery of the industries. But meanwhile, we will not forget about M&A market because we still have capitals to be deployed in a more disciplined way to enhance our growth rate and enhance our returns to our shareholders, okay?

因此，隨著旅遊人數和旅遊收入的下降，我們能夠保持健康、穩定的現金流和運營以及有機增長。所以我們重點關注這一點，利用行業健康快速的複蘇。但與此同時，我們不會忘記併購市場，因為我們仍然有資本以更嚴格的方式部署，以提高我們的增長率並提高我們對股東的回報，好嗎？

So, however, and we'll be more disciplined and more careful and selecting the right team with a truly complementary resources compared with organic growth and helping us to penetrate into those our wide space and lower coverage area, and the team also have more financial discipline and have the experience in managing the business in the professional or in a systematic way. So that's our M&A plan considering the deconsolidation and the disposal of the interest of Urban.

然而，因此，我們會更加自律、更加謹慎，選擇與有機增長相比具有真正互補資源的正確團隊，幫助我們滲透到那些我們廣闊的空間和較低覆蓋範圍的領域，並且團隊也有更多的財務遵守紀律並具有以專業或系統的方式管理業務的經驗。這就是我們考慮拆分和處置Urban 權益的併購計劃。

With regard to the second question of the new pipeline and a growth rate for the new year. We have observed the 2023, the recovery in the first 3 months are very rapid, and we're really glad the industry resumed back to a very healthy level. But even with the quick recovery, we saw the culture and the tourism, ministry's forecast for this year, for the entire industry's revenues to be RMB 4.5 trillion. So that's about 75% of the 2019 levels, and the per capita expenditures is about RMB 900 per person compared with a little bit of close to RMB 1,000 per person in 2019 levels.

關於第二個問題，新管道和新一年的增長率。我們觀察到2023年，前3個月的複蘇非常迅速，我們很高興行業恢復到非常健康的水平。但即使恢復得很快，我們也看到了文化和旅遊，文化部預計今年整個行業的收入將達到4.5萬億元人民幣。所以這大約是2019年水平的75%，人均支出約為每人900元人民幣，而2019年的水平則接近每人1000元人民幣。

So the budget for individual and business and the government traveling are still under a very tight control. So this year, our growth is going to be focusing on penetrating to areas where we're still having a slower -- we have a lower coverage and also moving into the first second-tier city seems to be mid-to-upscale segments and that we did observe due to the last 3 years of pandemic. And there's a lack of adequate capitals for the franchisees.

因此，個人和企業以及政府旅行的預算仍然受到非常嚴格的控制。因此，今年，我們的增長將集中於滲透到我們仍然速度較慢的地區——我們的覆蓋率較低，並且進入第一個二線城市似乎是中高檔細分市場，由於過去三年的大流行，我們確實觀察到了這一點。而且加盟商缺乏足夠的資金。

And there are more -- a little bit more cautious than before the 2019 levels. So we will have to provide a demonstration of our business models, the resiliencies and the operating efficiency and our supporting capabilities to our franchisees to encourage them to open, to start upgrading their existing hotel portfolios.

還有更多——比 2019 年之前的水平更加謹慎。因此，我們必須向特許經營商展示我們的商業模式、彈性和運營效率以及我們的支持能力，以鼓勵他們開業，開始升級現有的酒店組合。

And we are confident, I think, this year, we'll resume back to close to levels 2019 and will be substantially higher than that of 2022. So thanks, Jane, for your questions.

我認為，我們有信心今年將恢復到接近 2019 年的水平，並將大幅高於 2022 年的水平。所以，謝謝 Jane 的提問。

The next question comes from Dan Xu of Morgan Stanley.

下一個問題來自摩根士丹利的徐丹。

I have 2 questions. The first question is regarding your guidance for full year 2023. May I get some more guidance on the RevPAR that you are assuming for the total revenue of hotel business of 30% to 35% year-on-year growth, your RevPAR assumption?

我有 2 個問題。第一個問題是關於您對 2023 年全年的指導。我能否獲得有關您假設的酒店業務總收入同比增長 30% 至 35% 的 RevPAR 的更多指導，即您的 RevPAR 假設？

And secondly, on the assumption of hotel opening because after the deconsolidation and also the disposal of Urban, I think our hotel number dropped to around 4,000 hotels. So what are our plans for 2023, our hotel number as well? That's my first question.

其次，假設酒店開業，因為在解散和處置 Urban 之後，我認為我們的酒店數量下降到了 4,000 家左右。那麼我們 2023 年的計劃以及我們的酒店數量是多少？這是我的第一個問題。

All right. Thanks, Dan. We discussed thoroughly internally our RevPAR recovery of 2023 and also comparing the first quarter increase. And we believe we estimated -- we forecast this year our RevPAR we hope will be the same as of 2019. So we're back to normal levels.

好的。謝謝，丹。我們在內部徹底討論了 2023 年 RevPAR 的恢復情況，並比​​較了第一季度的增長情況。我們相信我們預計今年的 RevPAR 將與 2019 年相同。所以我們回到了正常水平。

And for the several reasons, the total towards the industry's revenue as we just reported to you -- shared with you by the ministry is that 75% of the 2019 level. So in theory, the RevPAR should not be higher. They should be lower than that of 2019 level. However, I think the branded operator, especially the nationwide such as GreenTree have a much higher capital rate of the demand. And therefore, I think that our recovery has always been much better than that of the industry.

由於多種原因，正如我們剛剛向您報告的那樣，該部與您分享的行業收入總額是 2019 年水平的 75%。所以理論上來說，RevPAR不應該更高。它們應該低於2019年的水平。不過，我認為品牌運營商，特別是像格林豪泰這樣的全國性運營商，對資本率的需求要高得多。因此，我認為我們的複蘇一直比行業好得多。

So the first quarter, we observed the first or second-tier city, we recovered more than the pre-pandemic levels. We believe that's due to the many, many travel needs for -- accumulated for the past 3 years. For instance, family reunions, many people have not seen their family for 3 years. And then government have a great initiative for investment promotion, so many trade shows and the investment promotion programs are spread in the countries, especially going to Shanghai, Beijing, Guangzhou and Shenzhen area. And the recovery for the first, second-tier city is much quicker, and we believe that's the main driver. And that driver will gradually, I think, back to normal.

所以第一季度，我們觀察一二線城市，我們恢復得比疫情前的水平要多。我們相信這是由於過去三年積累的大量旅行需求所致。比如家庭團聚，很多人已經3年沒有見到家人了。然後政府在招商引資方面也有很大的主動性，所以很多貿易展會和招商引資項目在各國展開，特別是到上海、北京、廣州和深圳地區。一、二線城市的複蘇要快得多，我們認為這是主要驅動力。我認為那個司機會逐漸恢復正常。

And the third and fourth-tier cities because the evolvement of the pandemic was a slower -- was trailing to the first- and second-tier cities. So during the first quarter of 2023, we also see the impact by the third, fourth-tier city by the pandemic as well as the influenza and also the driving forces of the convention facilities in those third and fourth-tier city are not as many. So the third and fourth-tier cities recovery is not as quick as the first and second tier. But we believe that during the second quarter, third quarter, especially during the travel seasons, and many, many of those cities will recover much quicker.

而三四線城市，由於疫情發展較慢，落後於一二線城市。所以2023年第一季度我們也看到三四線城市受到疫情和流感的影響，而且三四線城市的會展設施的推動力也沒有那麼大。 。所以三四線城市的複蘇並不像一二線城市那麼快。但我們相信，在第二季度、第三季度，特別是旅遊旺季期間，很多很多這樣的城市會恢復得更快。

So overall, we do expect a stronger second, third quarter from accumulated demand from the past 3 years. So overall, the -- our projection of the recovery of the RevPAR is 100% at 2019 levels. And we hope the -- with this year's transition of the economy and the many, many businesses are starting to reposition themselves, so the 2024 would be a much stable for business travelers and for the leisure travelers.

因此，總體而言，我們預計過去三年的累積需求將推動第二、第三季度的強勁增長。總體而言，我們預計 RevPAR 在 2019 年的水平上將恢復 100%。我們希望，隨著今年經濟的轉型，許多企業開始重新定位自己，因此 2024 年對於商務旅客和休閒旅客來說將會更加穩定。

And with regard to the hotel openings, we have a conservative estimate depending on the second and the third and fourth quarters recovery. In the first quarter, the first one in January, February was still impacted by the rapid transition from the pre-COVID and from the -- sorry, from pandemic control period to the policy and the control policy being lifted during the third transition to be impacted a little bit. And our assigning speed right now is about 600 to 800 levels per year of the new hotel contracting speed.

至於酒店開業情況，我們根據第二、第三和第四季度的複蘇情況進行保守估計。第一季度，一月、二月的第一季度，仍然受到從疫情前到——對不起，從疫情管控期到政策和第三個過渡期取消管控政策的快速過渡的影響。有點影響。而我們現在的分配速度大約是每年新酒店簽約速度的600到800級。

So we are also adding teams for the development, and we are able to travel a lot more. And comparing with the last year, many, many cities are locked down and prevented our business developers traveling, helping our franchisees, and that we think that we'll have -- recover the new hotel contracts and opening speed to close to pre-pandemic levels.

因此，我們還增加了開發團隊，並且我們能夠出差更多。與去年相比，很多很多城市都被封鎖，阻止了我們的業務開發人員出差，幫助我們的特許經營商，我們認為我們將恢復新的酒店合同和開業速度，以接近大流行前的水平水平。

And meanwhile, we are also going to enhance our existing portfolio's renovations. We have slowed down quite a bit in the last 3 years. We initially had a renovation plan for the 2019 and 2020, and 2021, but the reality is those 3 years are much tougher for front floor, the franchisees to renovate hotels. And for lack of the adequate confidence and the picture are not clear in terms of when the pandemic will be lifted.

與此同時，我們還將加強現有產品組合的改造。在過去的三年裡，我們的速度已經放慢了很多。我們最初有2019年、2020年、2021年的裝修計劃，但現實是這3年對於前層、加盟商來說裝修酒店要困難得多。由於缺乏足夠的信心，疫情何時結束也不清楚。

Secondly, that the lack of the travels and the quarantine -- period of quarantine made it difficult for the hotel to be upgraded.

其次，由於缺乏旅行和隔離——隔離期間，酒店很難升級。

Thirdly, we also have many hotels periodically under the government demand for being used at quarantine hotels. So for those reasons, we really have not had very strict policies for our existing hotels to be upgraded, to be renovated. But with the lifting of the pandemic measures, we are right now aggressively, proactively working with our franchisees and of a wide spread, products, renovation and upgrade programs.

第三，我們也有很多酒店在政府的要求下定期用作隔離酒店。因此，出於這些原因，我們確實沒有對現有酒店進行升級、翻新制定非常嚴格的政策。但隨著疫情措施的解除，我們現在正在積極主動地與我們的加盟商合作，開展廣泛的產品、翻新和升級計劃。

With that in place, I think we will have many, many more new fresh hotels, both on the newly opened as well as the existing hotel upgrade. I think this and next year will give us a great boost in the growth and our planned revenue both from the new hotels and from the existing hotels. So thanks, Dan.

有了這些，我認為我們將會有更多、更多的新酒店，無論是新開業的酒店還是現有酒店的升級。我認為今年和明年將極大地推動我們的增長以及新酒店和現有酒店的計劃收入。所以謝謝，丹。

Just one last quick question for me. With the disposal of Urban and also the deconsolidation of Argyle, do we expect any disposal gain or loss or any impairment that might occur later in the future after the first half impairment already being impacted?

我只想問最後一個問題。隨著Urban的出售以及Argyle的取消合併，我們是否預計在上半年減值已經受到影響後，未來可能會出現任何出售收益或損失或任何減值？

I will elaborate a little bit, then Selina will add. The disposal of the interest in Urban, that is completely (inaudible), and there will be no more impairment on that end, but with Argyle because we're still the majority of the shareholders, so we have the numbers in the book. But because of the performance in 2022, we expected lower. So we had, I believe significant impairment in the second half of 2022 because of the Argyle portion and -- but I will leave that balance to Selina.

我會詳細說明一下，然後 Selina 補充。處置 Urban 的權益，這是完全（聽不清）的，並且不會再有任何減值，但對於 Argyle，因為我們仍然是大多數股東，所以我們賬上有數字。但由於 2022 年的表現，我們的預期較低。因此，我認為由於阿蓋爾部分，我們在 2022 年下半年會遭受重大損害，但我會將這個平衡留給 Selina。

I think you're -- yes, Alex, this is correct. For Urban, because Urban has purchased the interest back totally, so there is no further impairment in the future for Urban.

我認為你——是的，亞歷克斯，這是正確的。對於Urban來說，由於Urban已全部回購了利息，因此Urban未來不會進一步減值。

For Argyle, actually, we recorded in the long-term investment both in PL and balance sheet. So they're very, very little mature in the future.

實際上，對於Argyle，我們在損益表和資產負債表上都記錄了長期投資。所以他們的未來還非常非常不成熟。

From my understanding is the amount of the residual value in those long-term investments is insignificant.

據我了解，這些長期投資的剩餘價值微不足道。

And with that, I think we have -- we'll be able to completely really focused on our core and again growth. That give us resources and instead of focusing on some of the problem-solving products so give our team time and energy. I'm just talking about new core organic growth plan.

有了這個，我認為我們將能夠完全真正專注於我們的核心和再次增長。這為我們提供了資源，而不是專注於一些解決問題的產品，而是為我們的團隊提供了時間和精力。我只是在談論新的核心有機增長計劃。

The next question comes from (inaudible) of Crystal.

下一個問題來自（聽不清）Crystal。

I have one more question. What are the company's future plan for food and the beverage acquisitions?

我還有一個問題。公司未來的食品和飲料收購計劃是什麼？

Let me elaborate on that. As you just heard the numbers, our 2 distinguished brands in the restaurant side, many, many people sometimes think that legacy brand over 20-something years. But the history of the food and the restaurant services indicated that there are not too many brands in China that can survive and grow in the 20-year period. So this really demonstrated both brands' sustainability and their management capabilities.

讓我詳細說明一下。正如您剛剛聽到的數字，我們在餐廳方面的兩個傑出品牌，很多很多人有時會認為是超過 20 年的傳統品牌。但食品和餐飲服務的歷史表明，中國沒有太多品牌能夠在20年的時間裡生存和發展。所以這確實體現了兩個品牌的可持續性和管理能力。

So we have the locations in the past of those 2 restaurants in high-speed train stations and in supermarket centers and in shopping malls. Those are primary locations of these restaurants. You disclosed the numbers, so the traffic to those areas gets reduced dramatically because of the pandemic. Also some of them because of the online shifting consumption trend.

所以我們知道這兩家餐廳過去的位置在高鐵站、超市中心和購物中心。這些是這些餐館的主要地點。您披露了這些數字，因此這些地區的交通由於大流行而急劇減少。也有一些是因為線上消費趨勢的轉變。

So, in the future, with the resumption of the travels, so both the traffic to the high-speed train stations to the local supermarket centers and the shopping malls, we resume, especially the high-speed train stations, we think those hubs will recover the quickest and the fullest.

所以，未來隨著旅行的恢復，所以無論是到高鐵站到當地超市中心還是購物中心的交通，我們都會恢復，特別是高鐵站，我們認為這些樞紐會恢復。恢復得最快、最充分。

Supermarket centers and the local shopping malls still are under a lot of pressure because the more -- new -- many new malls opening and therefore, are cutting back on the traffic to the existing malls. And the supermarket centers, many demands are moving to online and the many alternative formats in the supermarket deliveries. So we -- as a result of that, I believe we still are managing to have a good and healthy operations for the past 3 years. And again, just showing to our people that the capabilities we have over there.

超市中心和當地購物中心仍然面臨很大的壓力，因為更多的新購物中心開業，從而減少了現有購物中心的客流量。在超市中心，許多需求正在轉移到網上以及超市送貨的許多替代形式。因此，我相信我們在過去三年中仍然能夠保持良好和健康的運營。再說一遍，只是向我們的員工展示我們在那裡擁有的能力。

So in light of that, so the new trend that our new focus of the growth plan is going to be focusing on opening more restaurants in the community centers, servicing the local communities and the retirement communities in a more efficient way.

因此，有鑑於此，我們新的增長計劃重點將集中在在社區中心開設更多餐廳，以更有效的方式為當地社區和退休社區提供服務。

And also on the product side, we want to develop called affordable luxury and great products and great service at affordable cost, and we also will enhance our delivery capabilities and to increase presented the delivery revenues.

在產品方面，我們希望以可承受的成本開發所謂的實惠奢侈品、優質產品和優質服務，我們還將增強我們的交付能力並增加交付收入。

And fourthly, we will also leveraging our hotel, facilities and hotel resources. One of the reasons, (inaudible), we have a healthy hotel operating margin is because we are able to managing all aspects of the hotel segments, service segment well, including breakfast restaurant services, room revenues. And as a result, and the companies of these and we have a healthier margin than most of our competitors or than the industry average.

第四，我們還將利用我們的酒店、設施和酒店資源。 （聽不清）我們擁有健康的酒店營業利潤率的原因之一是因為我們能夠很好地管理酒店部門、服務部門的各個方面，包括早餐餐廳服務、客房收入。因此，這些公司和我們的利潤率比大多數競爭對手或行業平均水平都要高。

And so we'll continue to leveraging that and to increase the food quality and services for both on the breakfast and in certain hotels, we started providing full day dining, we're talking about the mid-to-scale hotels, not mid- to high-end due to upscale. Upscale, most of the hotels, we have our plan to have the full dining service component because that's very much needed by the guests. So we believe we see that initiatives, and also we will continue to focus on franchised restaurants. And we have seen demand for our 2 brands by other restaurant operators and by our own hotel franchisees.

因此，我們將繼續利用這一點，提高早餐和某些酒店的食品質量和服務，我們開始提供全日制餐飲，我們談論的是中型酒店，而不是中型酒店因高檔而高端。對於大多數高檔酒店，我們計劃提供全套餐飲服務，因為客人非常需要這一點。因此，我們相信我們看到了這些舉措，並且我們將繼續關注特許經營餐廳。我們已經看到其他餐廳運營商和我們自己的酒店特許經營商對我們的兩個品牌的需求。

So with the recovery of the economy and the lift of the pandemic measures and the increased traffic to those regions, we do expect our food and restaurant business will be benefited greatly from those as well as our growth plan. Thanks.

因此，隨著經濟的複蘇、疫情措施的解除以及這些地區客流量的增加，我們確實預計我們的食品和餐飲業務將受益於這些以及我們的增長計劃。謝謝。

The next question comes from Peter Yang of Goldman Sachs.

下一個問題來自高盛的Peter Yang。

So I have 2 questions. The first is on the EBITDA margin. Could you give us the guidance of what kind of EBITDA margin you were expecting in this year and maybe next year after the topline is fully normalized?

所以我有兩個問題。第一個是 EBITDA 利潤率。您能否告訴我們，您預計今年或明年收入完全正常化後的 EBITDA 利潤率是多少？

And the second question is regarding the company's strategy -- strategic focus. So maybe the strategy the company is looking at in terms of expanding in mid-scale or in the upscale segments or after acquiring the restaurants. So what are the priorities for the company's strategies? And how are you going to focus or make progress on those areas?

第二個問題是關於公司的戰略——戰略重點。因此，該公司可能正在考慮在中型或高檔市場擴張或收購餐廳後的戰略。那麼公司戰略的重點是什麼？您將如何關注這些領域或取得進展？

Thanks, Peter. I will take the second question, just talk about the strategy, our focus and then Selina will talk to you about our projected 2023 or the margin discussion, okay, EBITDA margin, 2023 and 2024.

謝謝，彼得。我將回答第二個問題，只談談戰略、我們的重點，然後 Selina 會和你談談我們預計的 2023 年或利潤率討論，好吧，2023 年和 2024 年的 EBITDA 利潤率。

So as we mentioned earlier, Peter, running the gaming experience in the past 3 years made our team, I think, stronger in operating in the tough environment. We do believe the 2023, 2024 recovery period, there are still going to be a lot of challenges meanwhile, with a lot of opportunities and with the rapid recovery. And we are still not back to the 2019 levels in terms of the entire tourism industry. So with that, and we are clearly focusing our core and organic growth on the hotel side.

因此，正如我們之前提到的，Peter，我認為過去 3 年的遊戲運營經驗使我們的團隊在艱難的環境中運作更加堅強。我們確實相信2023年、2024年的複蘇期，仍然會面臨很多挑戰，同時也有很多機會和快速復蘇。就整個旅遊業而言，我們還沒有回到2019年的水平。因此，我們顯然將核心和有機增長重點放在酒店方面。

Each business unit has its existing management team, so our group's management focuses are going to be on the hotel core organic growth. So the organic growth consists of probably 3 parts. First is the existing hotel portfolios renovation and upgrade. That's our key area of focus because we have been behind for the last 3 years, and that we need to completely upgrade and renovate many, many hotel products, some of them being used as quarantine facilities, and the wear and tears are more than the other types of usage. So then the second focus is to develop and opening more new hotels with especially the mid-scale to upscale levels. And by showcasing these new hotels and we will further influence our lower [capital area].

每個業務部門都有其現有的管理團隊，因此我們集團的管理重點將放在酒店核心的有機增長上。因此，有機增長可能由三部分組成。首先是現有酒店組合的改造升級。這是我們重點關注的領域，因為過去3年我們一直落後，我們需要徹底升級改造很多很多酒店產品，其中一些被用作檢疫設施，磨損比原來的還要多。其他類型的使用。因此，第二個重點是開發和開設更多新酒店，尤其是中高檔酒店。通過展示這些新酒店，我們將進一步影響我們較低的[首都地區]。

And the third focus is to improve, continue to improve our overall operating efficiencies and part of the overall efficiencies and are many, again, subarea we focus on, for instance, community outreach and local sales and marketing program and enhance our service to our guests and deliver -- deploy robotic technology to lower our labor cost. Because of the labor shortage, the labor costs are a challenge for the next many years, I think, to come. And to improve our information technology and mining the data and to increase our system efficiencies. And due to further also deploy some of the AI newly used, for instance, what even our teams are starting to experiment some of the AI tools for customer service, for sales and marketing and for new media. And so those are the folks to improve the overall hotels operating margin and efficiencies. So those are our core focus.

第三個重點是改進，繼續提高我們的整體運營效率和部分整體效率，我們重點關注許多子領域，例如社區外展和本地銷售和營銷計劃，並加強我們為客人提供的服務並交付——部署機器人技術來降低我們的勞動力成本。由於勞動力短缺，我認為勞動力成本將是未來許多年的挑戰。並改進我們的信息技術和挖掘數據並提高我們的系統效率。由於還進一步部署了一些新使用的人工智能，例如，甚至我們的團隊也開始嘗試一些用於客戶服務、銷售和營銷以及新媒體的人工智能工具。這些人就是提高酒店整體運營利潤和效率的人。所以這些是我們的核心焦點。

And then on the other side, if there are local strong focused hotel management company's operators that we have a common -- share common value, common goal and financially disciplined. And then we may continue to explore this M&A.

另一方面，如果有當地實力雄厚的酒店管理公司的運營商，我們有一個共同點——擁有共同的價值觀、共同的目標和財務紀律。然後我們可能會繼續探索這個併購。

And then lastly, the food and restaurants. And for that, I just mentioned to you our management team in the food and services defined affordable luxury. In light of the new economy, and we want to use a lot more. If they want to use a lot more on local ingredients, create customer-preferred meals at affordable price and servicing the local communities and by diversifying from the supermarket centers and also shopping malls into the -- directly into local communities. And become part of the habitual and hardcore demand for the local communities, we believe that sector will grow very healthily and generating a healthy cash flow and return to our investors.

最後是食物和餐館。為此，我剛剛向您提到了我們在食品和服務方面的管理團隊定義了負擔得起的奢華。鑑於新經濟，我們希望使用更多。如果他們想更多地使用當地食材，以實惠的價格創造顧客喜歡的膳食並為當地社區提供服務，並通過多元化從超市中心和購物中心進入 - 直接進入當地社區。並且成為當地社區習慣性和核心需求的一部分，我們相信該行業將非常健康地增長，並為我們的投資者帶來健康的現金流和回報。

So with overall focused approach and with the recovery of the economy, we think 2023, we really plan to generate margin and close to that of pre-pandemic level.

因此，通過整體集中的方法和經濟的複蘇，我們認為到 2023 年，我們確實計劃產生利潤並接近大流行前的水平。

So with that, I'm passing the rest of the questions to Selina.

因此，我將剩下的問題轉交給塞琳娜。

Thank you, Alex. Also, before I answer the question, what's the EBITDA margin for the next 2 years? I would like to share what effects to actually impact our EBITDA margin. Actually before the COVID-19, our EBITDA margin was as high as about 50%. And for the past 3 years, our EBITDA margin ever reached the lowest point at about 25% for a series of quarters.

謝謝你，亞歷克斯。另外，在我回答問題之前，未來兩年的 EBITDA 利潤率是多少？我想分享一下哪些因素會實際影響我們的 EBITDA 利潤率。實際上在 COVID-19 之前，我們的 EBITDA 利潤率高達 50% 左右。在過去的三年裡，我們的 EBITDA 利潤率連續幾個季度達到了 25% 左右的最低點。

So there are 3 material factors that reduced the lower margin. The first one is the consolidation of the joint ventures. And the second reason is due to the COVID-19, the lower revenues and the higher cost, stable cost and especially the rent cost and our human resource costs.

因此，有 3 個重要因素降低了利潤率。第一個是合資企業的整合。第二個原因是由於COVID-19，收入減少，成本增加，成本穩定，特別是租金成本和我們的人力資源成本。

And the third reason is that we opened more leased operating hotels, especially in the mid -- of the middle term scale segment in the Tier 1 and the Tier 2 cities.

第三個原因是我們開設了更多的租賃經營酒店，特別是在一線和二線城市的中期規模細分市場。

For the first reason, the consolidation of joint ventures affected about 10% of our EBITDA margin. And for the leased, operated hotels newly opened in the past 2, 3 years, another 10% EBITDA margin was reduced, and the remaining delivery amount of the margin decrease was about due to the COVID-19. So we'll be looking forward through the year of 2023 and the next year. First, we have to consolidate our joint venture, and we return to normal business when the COVID-19 passed their way.

第一個原因是，合資企業的合併影響了我們約 10% 的 EBITDA 利潤率。而對於過去2、3年新開業的租賃、運營酒店，EBITDA利潤率又減少了10%，而利潤率減少的剩餘交付金額大約是由於COVID-19所致。因此，我們將展望 2023 年和明年。首先，我們必須鞏固我們的合資企業，當 COVID-19 過去後，我們才能恢復正常業務。

And also, for the newly opened hotels will be past the ramp-up period and gradually return back to the normal operation. So we expect the EBITDA margin to recover about 10% to 15% in the year of 2030. So that means from the 25% plus, another 10% to 15%.

此外，新開業的酒店也將度過磨合期，逐步恢復正常運營。因此，我們預計 EBITDA 利潤率將在 2030 年恢復約 10% 至 15%。這意味著在 25% 以上的基礎上，再恢復 10% 至 15%。

So for the year of 2024, it's a bit hard for us to go and to becoming the sector members right now. But we believe the operation and the industry will recover more -- better and better. So following this, we may gradually return to the normal level of EBITDA margin. That is above 50% in the next 2 or 3 years.

所以到了2024年，我們現在要成為行業成員有點困難。但我們相信，運營和行業將會復蘇得更多、更好。因此，在此之後，我們的EBITDA利潤率可能會逐漸恢復到正常水平。未來兩三年內這一比例將超過 50%。

The next question comes from [Don Law] of Oriental Value.

下一個問題來自東方價值的[Don Law]。

Just 2 quick questions. So the first question is that can you share about current profitability of the restaurant business and the second question is that what's the current business outlook for the upcoming years?

只是兩個簡單的問題。因此，第一個問題是您能否分享一下餐廳業務當前的盈利能力，第二個問題是未來幾年當前的業務前景如何？

We cannot hear you very clearly. Would you repeat your question again?

我們聽不清楚。你能再重複一遍你的問題嗎？

Is it better now?

現在好點了嗎？

Yes, it's better.

是的，這樣更好了。

It's better.

好多了。

Yes. So yes, sorry, I repeat my questions. So my first question is that can you share about the current profitability of your restaurant business? That's the first question.

是的。所以，是的，抱歉，我重複我的問題。所以我的第一個問題是，您能分享一下您的餐廳業務目前的盈利能力嗎？這是第一個問題。

And the second question is that what's the current dividend outlook for the upcoming years?

第二個問題是，目前未來幾年的股息前景如何？

So Don, we're trying to understand, your first question is that, what's the profitability level for the restaurants, am I correct?

所以唐，我們試圖了解，你的第一個問題是，餐廳的盈利水平是多少，我對嗎？

Yes.

是的。

Okay. What's the second question?

好的。第二個問題是什麼？

The second question is the dividend outlook of the company, the dividend.

第二個問題是公司的股息前景，即股息。

Got it. Thanks, Don. The -- we don't have the fully audited numbers of the restaurant for the 2022, but I do believe that we have maintained a healthy, I think, cash flow for the restaurants. So we will get to the -- we'll publish the number as soon as we have them, okay?

知道了。謝謝，唐。我們沒有 2022 年餐廳的全面審計數據，但我確實相信我們的餐廳保持了健康的現金流。所以我們會在得到這些數字後立即發布，好嗎？

So with regard to the dividend as soon as possible and our current focus is still growing the business and that with a little bit uncertain transition period that we are a little bit uncertain about impact. But as soon as I think the picture is clear and more stable that we'll plan to resume our previous dividend.

因此，關於盡快派發股息，我們目前的重點仍然是發展業務，由於過渡期有點不確定，我們對影響有點不確定。但一旦我認為情況變得清晰且更加穩定，我們就會計劃恢復之前的股息。

Okay. Understood. Yes. So for the restaurant margin, right, so I understand that the audited number for last year is not final last year. But then how about for this year for 2023, what's your projection?

好的。明白了。是的。因此，對於餐廳利潤率來說，對，所以我知道去年的審計數字並不是去年的最終數字。那麼今年到 2023 年，您的預測是什麼？

So we have a -- when we have -- when we made the acquisition, and we have full valuation by the, I think, most reputable valuation firm and that there is a number of assumptions and projections for the restaurant business. Do you have the numbers? With you on the -- and I think that we projected them the 2023, I think that 20% to 30% gross profit margin. And we've -- not with too high of the revenue because at that time, we were not very clear with where the pandemic is going to be. And so we will, Don, report you the numbers, I think, separate fund cost once I have those on hand.

因此，當我們進行收購時，我們得到了我認為最有信譽的估值公司的全面估值，並且對餐廳業務有許多假設和預測。你有數字嗎？我認為我們預計 2023 年毛利率將達到 20% 到 30%。我們的收入並沒有太高，因為當時我們不太清楚大流行將在哪裡發生。因此，唐，我想，一旦我手頭有這些數字，我們就會向您報告這些數字，單獨的資金成本。

The next question is a follow-up from Dan Xu of Morgan Stanley.

下一個問題是摩根士丹利的 Dan Xu 的後續提問。

Alex, regarding the F&B business, can I have one follow-up question? Can you elaborate a little bit more on the synergies between the F&B business and the hotel business? For example, are you -- because you -- I think you explained to us very clearly about organically, each business, how would they perform, grow organically? But is there any synergy between the business? For example, by having Da Niang Jiangsu and Bellagio, you can channel the customers to your hotel or by branding your Da Niang Jiangsu GreenTree brand. It will help to bring more clients to Da Niang Jiangsu -- or maybe you can have a Da Niang Jiangsu, a GreenTree hotel lobby, for example. So just trying to understand is there any synergy or maybe it's because of the membership sharing. For example, you can combine the members and you can have more target customers for your hotel or your SMB business. Just trying to understand if there's any, okay, Alex.

Alex，關於餐飲業務，我可以再問一個問題嗎？您能否詳細說明一下餐飲業務和酒店業務之間的協同效應？例如，您是否——因為您——我認為您非常清楚地向我們解釋了有機的每項業務，它們將如何表現、有機增長？但業務之間是否存在協同效應？例如，通過擁有江蘇大娘和寶麗嘉，您可以將客戶引導至您的酒店，或者通過打造您的江蘇大娘格林豪泰品牌。這將有助於為江蘇大娘帶來更多客戶，或者您可以擁有一個江蘇大娘，例如格林豪泰酒店大堂。所以只是想了解是否有任何協同作用，或者可能是因為會員共享。例如，您可以合併會員，這樣您的酒店或中小企業業務就可以擁有更多目標客戶。只是想了解是否有，好吧，亞歷克斯。

Okay. Dan, that's a great question. So let me share a little bit background at the original acquisition of these brands. The -- that's the intent of the original acquisition. The objective is to create synergies between the 2 segments of the businesses that in the past 3 or 4 years -- the past 3 years, I think each unit is really trying to do their best to weather the storm and to face the challenges, to counter the challenge. So the team have not synergized in a widespread way.

好的。丹，這是一個很好的問題。讓我分享一下最初收購這些品牌的背景。這就是最初收購的目的。目標是在過去 3 或 4 年中的兩個業務部門之間創造協同效應，在過去的 3 年裡，我認為每個部門都在盡最大努力來渡過難關並面對挑戰，應對挑戰。因此，團隊並沒有以廣泛的方式進行協同。

We did perform many, many experiments -- a few experiments, not many experiments that we find there are great synergies between Bellagio and hotels. For instance, we -- in one of our hotels, we have adopted a new concept of branded restaurant inside the hotels, and the restaurant revenue increased 500%. And so the breakfast and the meals revenues, the restaurant revenues, foodservice revenues became roughly 70% of the room revenues. So in other words, the room revenue is in the last year, it was 69%. And then the food and beverage side, close to RMB 3 million. So we did have -- we do have some great success stories in that end.

我們確實進行了很多很多的實驗——一些實驗，但我們發現貝拉吉奧和酒店之間存在巨大協同效應的實驗並不多。例如，我們在一家酒店，我們在酒店內部採用了品牌餐廳的新概念，餐廳收入增加了 500%。因此，早餐和正餐收入、餐廳收入、餐飲服務收入約佔客房收入的 70%。也就是說，去年的客房收入是69%。然後是餐飲方面，接近300萬元。所以我們確實有——我們確實有一些偉大的成功故事。

And that, however, I think the team needs to be trained and it's because the last 3 years, we have not added team members to drive that synergies. And now with the COVID measurement are lifted, and we have -- we are right now in the process of building a dedicated team to bridge the 2 resources together and to expand, to replicate the success in those hotels. And without substantial numbers, then the impact at this moment on the book is still not (inaudible), but we do think in the near future, there's substantial release synergies over there.

然而，我認為團隊需要接受培訓，這是因為在過去的三年裡，我們沒有增加團隊成員來推動這種協同效應。現在，隨著新冠肺炎疫情的衡量標準被取消，我們正在組建一個專門的團隊，將這兩種資源聯繫在一起，並進行擴展，以復制這些酒店的成功。如果沒有大量的數字，那麼目前對這本書的影響仍然不是（聽不清），但我們確實認為在不久的將來，那裡會有大量的發行協同效應。

But we do not -- the question sometimes in the last 3 we have not done many of them. When the management team of each group are dedicated focusing to improve their own operations to face the challenge, then sometimes we do not have a lot more resources to experiment those new concepts and to create new business units. And right now, we are building that to offer not only the food services. We're also trying to see whether we can have other services by combining the food and the rooms and some of the facilities in the hotels really to create a better customer service experience, meanwhile, increase our revenue in that end then we report to you as we make the progress. I think this year, we'll see many more.

但我們沒有——這個問題有時在過去的三年裡我們沒有做很多。當每個集團的管理團隊都專注於改善自己的運營以應對挑戰時，有時我們沒有更多的資源來嘗試這些新概念並創建新的業務部門。現在，我們正在建設它，不僅提供食品服務。我們也在嘗試看看是否可以通過將食物和房間以及酒店的一些設施結合起來來提供其他服務，真正創造更好的客戶服務體驗，同時增加我們的收入，然後我們向您報告當我們取得進展時。我想今年我們會看到更多。

As I said, we already have a few those prototypes. But this year, we'll have many more with the ability to travel, with ability to expand in some of the key locations. We hope to gain a lot more experience in that end and to further -- to help the 2 businesses to grow.

正如我所說，我們已經有了一些原型。但今年，我們將有更多的人能夠旅行，並能夠在一些關鍵地點進行擴張。我們希望在這方面獲得更多的經驗，並進一步幫助這兩家企業發展。

In terms of memberships, we just integrated our systems. I think that will be in deployment to use in the first, I'm sorry, in the second half, in the second quarter of this year.

在會員資格方面，我們只是集成了我們的系統。我認為這將在今年上半年、下半年、第二季度部署使用。

Thank you, Alex, we hope to see more prototypes and more synergies coming up in the future.

謝謝你，亞歷克斯，我們希望將來能看到更多的原型和更多的協同作用。

Yes. Great. We'd like to invite you to visit that place because we find it quite, I think, good for the guests and good for the restaurants and good for the local community. So basically, everybody benefited from that.

是的。偉大的。我們想邀請您參觀那個地方，因為我認為我們發現它對客人、餐廳和當地社區都有好處。所以基本上，每個人都從中受益。

This concludes our question-and-answer session. I would like to turn the conference back over to Selina Yang for any closing remarks.

我們的問答環節到此結束。我想將會議轉回楊塞琳娜 (Selina Yang) 進行閉幕致辭。

Thank you, operator. In closing, on behalf of the entire GreenTree management team, we thank you for your interest and participation in today's call. If you require any further information or have plans to read it to us, please feel free to contact us. Thank you all.

謝謝你，接線員。最後，我們代表整個格林豪泰管理團隊感謝您對今天電話會議的關注和參與。如果您需要任何進一步的信息或計劃將其讀給我們聽，請隨時與我們聯繫。謝謝你們。

Thank you.

謝謝。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演示，您現在可以斷開連接了。