Ladies and gentlemen, thank you for standing by, and welcome to a Tour Lifestyle Holdings fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Today's conference is being recorded. I would now like to turn the conference over to Mr. Luke Hu, Senior IR Manager. Please go ahead, sir.

Thank you, operator. Good morning and good evening, everyone. Welcome to our first quarter and the full year 2025 earnings conference call. Today, you will hear from our founder, chairman, and CEO, Mr. Wang Haijun, and our EVP co-CFO, Mr. Wu Jianfeng. Before we continue, please be aware that today's discussion will include overlooking statements under federal securities laws. These statements are subject to various risks and uncertainties, and the actual results may differ significantly from what it did or implied in our comments today. The company is not obligated to update any forward-looking statements except as required by applicable laws. Additionally, during this call, our management will discuss certain non-GAAP financial measures solely for comparison purpose. For a clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results, please refer to the earnings release issued earlier today. Furthermore, a webcast replay of this conference call will be accessible on our website at ir.yadu.com, where a copy of the results presentation is also available. Now, I will turn the call over to Mr. Wang, our CEO.

Thank you, Luke. Hello, everyone. Thank you for joining a tour's fourth quarter. and a full year 2025 earnings call today. please turn to our results presentation looking back at 2025 sustained global competition structural shifts in consumption and accelerating technological transformation collectively shaped the overarching theme of the year amid a volatile recovery china's travel and consumer markets have become increasingly mature rational and resilient in this environment we are more convinced than ever that only by staying true to our user first philosophy relentlessly enhancing user experience and building enduring brand value can we navigate industry cycles in an increasingly competitive maturing market. 亚朵星球逐渐巩固了在中国睡眠市场的领先地位 成为用户睡眠产品的首选品牌 我们看到住宿与零售两大业务板块的协同发展 正不断丰富着中国体验的价值内涵 2025 marked the successful completion of our Chinese Experience 2000 Premier Hotels Strategic Initiative In terms of the hotel business, we achieved our scale target of 2,000 premier hotels and further strengthened our brand through differentiated product positioning and customer experiences that resonate. Meanwhile, our retail business sustained strong growth momentum, accounting for nearly 40% of the group's total revenue. A tour planet further reinforced its leading position in China's sleep market, establishing itself as the preferred choice for consumers. We continue to see growing synergy between our hotel and retail businesses, with each strengthening the other to further enrich the value proposition of our Chinese experience.

At the same time, we will maintain a long-term strategy strategy, with high-quality products and services, and continue to create a high-quality experience. In this case, the company also released a new three-year strategy called the China-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder-louder.

As we enter 2026, we continue to see considerable market uncertainty. However, our strategic direction has never been clearer. We will embrace change while maintaining a long-term focus. We consistently create value-added experiences with a personal touch through high-quality products and services. Building on this foundation, we have officially launched a new three-year strategic plan, Chinese Experience, Brand-led excellence. Experience remains the cornerstone of our development and a core driver of growth. We will further reinforce our differentiated experience mode, amplify our strengths, pioneer new frontiers, and strengthening our leadership within the industry. Brand serves as the anchor of our long-term development and the guiding force behind our strategy. We will firmly follow the course of a lifestyle group, actively exploring and expanding growth path. By using scenarios as a bridge, we will deepen the synergy between our hotel and retail businesses, leveraging our brand to connect across scenarios and deepening our emotional connection and resonance with users.

I will show you the situation in the fourth季度 of the 2025 year of the year of the year of the year of the year of the year of the year of the year of the year of the year of the year of the year of the year.

Now, I would like to provide more details on our hotel and retail performance for the fourth quarter and the full year of 2025. Let's begin with our hotel business. In the fourth quarter, our REVPAR was RMB 335.7, representing 99.6% of the level in the same period of 2024, with the recovery showing sequential improvement trend. Specifically, OCC reached 98.8%, and ADR stood at 101.5% of their levels in the same period of 2024. In the fourth quarter, RASPAR for our mature hotels in operation for more than 18 months was 96% of the level in the same period of 2024, while OCC and ADR stood at 97% and 99.6% of 2024 levels for the same period, respectively. In 2025, we opened 488 new hotels. By the end of the fourth quarter, the number of hotels in operation reached 2015, representing a 24.5% year-over-year increase. As of the same date, our pipeline of hotels under development stood at 779, providing a solid foundation for the continued expansion of our hotel network on the hotel channel front our core CRS channel remained stable accounting for 62.9% of total room nights sold in the fourth quarter. The contribution of room nights sold to corporate members was 20.8% during the quarter. Next, I would like to share the latest developments across our hotel brands. The upper mid-scale segment has long been our core focus where we have built a deep presence for the longer-term view at a beginning of this year we officially upgraded a tour 4.0 to an independent brand the tour origin while retaining efficient business travel functionality a tour origin introduces an immersive vacation ambience creating a serene urban retreat where customers can find peace of body and mind. Its differentiated brand positioning has been validated by the market. For full year 2025, refpar for Atour Origin hotels in operation exceeded RMB 430.

To date, 55 Atour Origin hotels are in operation, with over 50 projects in the pipeline. 更贴合主流商旅场景 为用户提供兼具功能与情感的可靠选择 最新产品亚朵3.6 从硬件配置到服务细节持续收获市场认可 四季度在营酒店RAWPA超过380元 亚朵件也则以独特的氛围塑造 延伸用户的体验边界与精神空间 两个品牌协同发展 为加盟商创造了更灵活的投资选择

与体验层面的差异化优势 持续巩固我们在中高端市场的 绝对领先地位

Together, Atura Hotel and Atura Origin form a more competitive brand portfolio in the upper mid-scale market Atura Hotel's style is tailored to mainstream business travel offering customers dependable options that balance functionality with emotional appeal. The latest product, Atoor 3.6, continues to gain market recognition for its meticulous hardware configuration and outstanding service details. In the fourth quarter, the rev par of Atoor 3.6 hotels in operation surpassed R&B 380. A tour origin expands customers' experience and enriches their sense of well-being through its unique atmosphere. The synergistic development of the two brands has created more flexible investment opportunities for our franchisees while better addressing the diverse needs of our customers across various travel scenarios. The advantages have further strengthened our competitive edge through innovative scenario designs and enhanced customer experiences, helping us maintain our absolute leading position in the upper-mid-scale market.

也更加精准地满足了用户 在不同出行场景下的多元需求 进一步放大了我们在场景

As a result of the high-end market market, currently, SAH已完成 in Shanghai, 深圳, and Guangzhou 3X3店. Through a unique unique concept, building and physical experience, SAH正逐步成为 the city of the city's culture, and again designate the high-end酒店's value. In four季度, SAH再營酒店's performance was very亮眼, Roller Park is 950 yen.

Xahe Hotel marks a substantial breakthrough in advancing our brand portfolio in the upscale market. Leveraging an efficient investment model, innovative experience design, and profound cultural expression, Xahe Hotel has forged a distinct path within the existing market framework and become a game changer in the upscale segment. Currently, Xahe has established its presence with three hotels in Shanghai, Shenzhen, and Guangzhou. With its unique aesthetic system, carefully crafted ambience, and exceptional experiences, SAHE is gradually becoming a cultural gateway in each city it enters, redefining the value of upscale hotels. In the fourth quarter, SAHE delivered exceptional operating results, with RevPAR exceeding RMB 950.

We hope that we can become the world's world and the world's world and the world's world.

In 2026, we will further develop our Eastern wellness experience and build a holistic SAHE healing experience system. Through more refined operations and a more comprehensive framework, we will drive further brand upgrades and breakthroughs. Based on a longer-term vision, SAHE partnered with EHL Hospitality Business School in the fourth quarter to jointly develop an upscale accommodation service system that combines global expression with Eastern values, supporting the brand's long-term development.

We aim to establish SAHE as a showcase of global vision and eastern stories, translate its core experiential philosophy into new value benchmark for the global upscale hotel industry and bring Chinese experiences to the world stage. 长期可持续性的运营模型 从而形成独特的差异化的竞争优势 截至2025年末 轻居三系在营酒店数量已超过160家 我们聚焦高线城市拓展 持续打磨产品 深化品牌建设 提升运营效率 品牌资产质量稳步提升 轻居也展现了出色的经营韧性 四季度 轻居三系在营酒店ROPA恢复度

The mid-scale hotel market has significant potential, yet product and service homogenization has long been a major pain point for the industry. We believe the key to breaking through is to develop an operating model that balances experience and efficiency while also incorporates sustainability, thereby creating a unique and differentiated competitive advantage by the end of 2025 over 160 a tour light series 3 hotels were in operation we have focused on higher tier cities continuously refined our products deepened brand building and improved operational efficiency thereby steadily elevating brand asset quality a tour light has also demonstrated strong operational resilience. In the fourth quarter, the REVPAR of the Etualite Series 3 hotels in operation recovered by more than 110% year-over-year, and the full-year REVPAR recovered by over 100% year-on-year. In 2026, we will fully roll out a Toralite's refined cost model, deepen its distinctive operations and management, and systematically improve operational efficiency and product competitiveness. At the same time, we will continue to focus on core customer needs, enhance brand recognition and influence, and build unique Auteur Light mindshare. At the organizational level, we are working to establish a TourLite's distinctive talent development system to comprehensively enhance the team's overall capabilities. A TourLite's goal has always been clear. Driven by product and brand strength, we will reshape the mid-scale market landscape and establish a new benchmark among mid-scale hotel brands. Moving on to our retail business. Over the past few years, the traditional consumer market has been mired in homogeneous competition and sluggish growth. Only brands that truly define new demand and to create new value have a chance to break through the industry's structural constraints and chart a differentiated growth path. This is precisely the path a tour planet has taken. Rather than engaging in involution with brands taking a traditional path, we have proactively chosen and firmly committed to an entirely new trajectory. Guided by user needs, we have forged this path of differentiated growth through deep insights into users sleep pain points and a continuous product innovation this has not only reshaped the market landscape but also helped to drive progress and upgrade across the industry

2025年零售业务延续了强劲的增长态势全年收入达到了36.7亿元 同比增长67%在主流第三方平台床上用品品类排名中亚洲星球 以稳居头部行列 这一年我们持续推进产品创新 与品类扩充 深税生态日益成熟 深税标准的发布 为产品的高品质与一致性 确立了基准 在扎实的产品力之上 亚朵星球的品牌影响力稳步提升 为零售业务的长期发展 奠定坚实的基础 In 2025 Our retail business sustained strong growth momentum with full-year revenue reaching RMB $3.67 billion, representing 67% year-over-year growth.

Atura Planet has also consistently ranked among the top brands in the betting category on major third-party platforms. Throughout the year, we continued to drive product innovation and expand categories, and our deep sleep ecosystem grew increasingly mature. the release of the Atura Planet Deep Sleep Standard Set, a benchmark for the high quality and consistency of our products. Building on our solid product performance, Atura Planet's brand influence continued to strengthen, laying a solid foundation for the long-term development of our retail business. In 2025, our Pillow Caligari further strengthened its leadership, consistently topping category rankings on major third-party platforms and gaining product mindshare among users. Cumulative sales volume of the Deep Sleep Memory Phone Pillow Pro Series has exceeded 10 million units since launch, marking a significant sales milestone. Our Comforter Cavalry also delivered robust growth momentum, with full-year GMV increasing by over 90% year over year, and the market share continuing to rise. Our new categories, fitted cheats and launchware, received positive market feedback in 2025, collectively driving the continuous evolution of our deep sleep ecosystem. Thank you. 用户洞察与产品创建 Looking ahead, the industry is entering a new cycle driven market. by innovation, with competition increasingly centered on product value and user experience. In 2026, we will systematically enhance our core capabilities on product excellence. We will further expand our differentiated experience advantage, making a tour planet's deep sleep experience a competitive moat that is difficult to replicate. On the supply chain front, we will deepen rigorous management at every stage to ensure product consistency and a reliable delivery at the brand level we remain committed to creating long-term value building deeper emotional connections with our users built on deep user insights and product innovation we are positioned to consolidate and strengthen our competitive lead we will open a new chapter for our development while collaborating with industry partners to elevate quality and innovation across the sector. We have always upheld our core value of serving people, continuously deepening our experiential value. This is also clearly reflected in our membership operation. Unlike the membership systems prevalent in the industry, which offer from homogenized benefits and low brand recognition, we continue to explore new scenarios to deliver truly tangible, differentiated experiences for our users. In early 2026, we partnered with Starbucks China to launch a joint membership program. Beyond linking membership systems and offering reciprocal benefits, this collaboration aims to build a multi-scenario lifestyle ecosystem, spanning travel, dining, and leisure, creating a bridge to extend value across different scenarios. By the end of 2025, our registered individual members reached 112 million, representing a year-over-year growth of over 25%. Moving forward, we will continue to deepen our membership operations with a brand building mindset, focusing on a full user life cycle to create a membership ecosystem that stays closely connected with the users. building on our hotel and a retail business we will continue to introduce new benefits tailored to the deep sleep scenario at the same time we will actively explore more diverse scenarios and expand our reach to a wider audience further deepening emotional connections with users in addition we will further enhance our digital capabilities and build a more granular operational framework for user segmentation, providing strong support for the long-term development of our membership business. Last but not least, as we embark on our mission, our new three-year strategy, we are more resolute than ever. Guided by the belief that everyone deserves kindness, we will remain user-centric and ensure that every user feels our sincerely and care. Guided by our long-term vision of a timeless auteur warmth along every journey, we will uphold our quality standards while striving to break through the ceiling of experience. At the same time, we will further strengthen our organizational capabilities and refine our digital framework, laying a solid foundation to support the group's long-term development. We are committed to accompanying our users on this long-term journey, moving forward together every step of the way. dedicated to providing lasting companionship we aim to curate experiences where body and mind return to inner peace through every genuine connection fulfilling our warm and steadfast commitment to every user i will now turn the call over to our co-cfo mr wu jianfeng who will discuss our financial results.

Thank you, Hai-Jun. Now I would like to present the company's financial performance for the first quarter and full year of 2025. Revenues from our monetized hotels for the first quarter and full year of 2025 grew by 28.1% and 28.0% year-over-year to RMB 1.4 billion and RMB 5.3 billion, respectively. The increases were primarily fueled by the ongoing expansion of our hotel network. Revenues contributed by our leased hotels for the first quarter and full year of 2025 decreased by 9.8% and 15.9% year-over-year to RMB 148 million and RMB 590 million, respectively. The declines were primarily due to a decrease in the number of leased hotels as a result of our product mix optimization. Revenues from our retail businesses for the first quarter and full year of 2025 increased by 52.4% and 67.0% year-over-year to R&B $1.2 billion and R&B $3.7 billion respectively. The increases were driven by growing brand recognition, successful product innovation, and have broadened the range of product offerings. The gross margin of our hotel business was 35.8% for the fourth quarter and 37.0% for the full year of 2025. The gross margin of our retail business improved year-over-year to 52.6% for both the first quarter and the full year of 2025, reflecting the growing contribution from higher margin products. Setting and marketing expenses accounted for 16.5% and 15.2% of revenue for the fourth quarter and full year of 2025, respectively. The year-over-year increase for the full year was mainly due to investment in brand recognition and the effective development of online channels, in line with the growth of our retail business. General and administrative expenses, excluding share-based compensation expenses, accounted for 5.5% and 4.2% of net revenues for the first quarter and full year of 2025, respectively. The year-over-year decrease for the full year was primarily driven by improved management efficiency and economics of scale. Adjusted net profit margin for the first quarter and full year of 2025 was 17.7% and 17.9%, representing an increase of 1.7 percentage points and a decrease of 0.1 percentage points year-over-year. Adjusted EBITDA margin for the first quarter and the full year of 2025 was 25.5% and 25.3% respectively, up 4.3% and 0.9% year-over-year. We maintained a healthy cash position. As of December 31st, 2025, cash and cash equivalents totaled RMB 3.3 billion with net cash of RMB 3.1 billion. In line with our commitment to enhancing shareholders' value, we declared aggregate cash dividends of approximately US$108 million for the full year of 2025. And as of December 31st, 2025, we had made on-market repurchase of US$46 million since the implementation began in the third quarter. Through this Comprehensive Shareholder Return Initiative, we are taking concrete actions to reward shareholders' trust and support, ensuring that all shareholders benefit from the company's growth. For the full year of 2026, we currently expect total net revenue to increase by 20% to 24% compared with the full year of 2025. That concludes our financial highlights for the first quarter and full year of Turn 25. Now let's open the floor for Q&A.

Thank you. We will now begin the question and answer session. To ask a question, please press star 11 on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, If you raise your questions in Chinese, please immediately repeat your questions in English. Please limit your questions to one at a time. If you wish to have follow-up questions, please rejoin the queue. A moment for our first question. We will now take our first question from the line of Sijie Lin from CICC. Please ask your question, Sijie. Your line is open.

Thank you, management. So we've noticed that the overall industry supply growth has slowed slightly. Therefore, we'd like to ask about the recent sentiment among franchisees regarding new signings, and additionally, could you please also provide some guidance on new openings in 2026? Thank you.

Okay, let me answer your question. Thank you, Sijie. We have also observed fluctuations in the overall industry supply growth rate.

However, if we look deeper, what's behind this is that after years of rapid expansion, the industry is now undergoing a profound structural upgrade and gradually moving towards a new stage of high quality development. 对于加盟商而言 我们也观察到他们正变得更加的理性和审慎 但是我认为 这种理性的转变 对整个行业的长期健康发展是正向的 当加盟商对租金物业的位置 以及酒店品牌的选择都更加沉重时 本质上我们认为 是在完成一次优胜劣汰的市场筛选 As for franchisees, we have also observed that they are now becoming more rational and

discerning. However, I believe this shift towards rationality for them is actually positive for the long-term healthy development of our industry. Because when franchisees exercise greater caution in negotiating rents, choosing locations, and selecting hotel brands, they are essentially facilitating a market screening process of survival of the fittest. The mutual selection between mature brands and quality franchisees will lead to a more solid foundation for cooperation. As regards to a tour's own strategic pace, high-quality supply in the market remains scarce. We have never advocated for purely scale-driven growth. However, high-quality, distinctive growth is actually the direction of our long-term pursuit. We remain positive and optimistic about the signing momentum for 2026, and we will ensure that every newly signed project is more competitive in the market. In terms of new openings, well, thanks to the continued implementation of our premier hotel strategy, New hotels opened in 2025 have shown significant improvement in both of their location selection and property quality. In 2026, we will continue to uphold strict quality requirements, focusing on the core cities and the key commercial areas. On the basis of ensuring higher quality, we aim to achieve a similar scale of openings as last year. Thank you.

Thank you, Sujie. Next question, please.

Thank you. Our next question comes from a line of Simon Chung from Goldman Sachs. Please ask your question, Simon.

Your line is now open. and also perhaps comment about the first quarter wrap up performance uh so far quarter to date as well as uh your view uh on the wrap our trend for the rest of the year. Thank you.

Thank you, Simon, and let me take your question. In 2025, the hotel industry experienced a moderate recovery with a continued restoration of supply and demand dynamics. The 2025 full-year rev part recovery showed a trend of sequential improvement throughout the whole year. In 2026, the overall industry supply growth may slow down furthermore. Leisure demand remains strong. For example, during the spring festival holiday this year, both the ADR and occupancy performed well, exceeding levels from the same period of last year. Based upon this, we expect the REVPAR in Q1 to continue the trend of improvement with a positive momentum. We will not provide specific guidance for RevPAR in 2026, but for the full year, the market environment is still changing relatively quickly. However, favorable policies and the continued recovery of business travel also provide positive factors. Our goal, however, still remains clear. That is, to adhere to our strategic focus amid market volatility. Therefore, we will persist with and deepen the differentiated experience advantages of Ator, maintaining our more balanced and refined revenue management strategy for both ADR and OCC to consolidate and enhance the performance of REF part recovery and solidify our long-term value of the brand.

Thank you, Donald. Next question, please.

Thank you. We will now take our next question from Lydia Ling from Citi. Please ask your question, Lydia.

Your line is open. 管理层好,我是Lidia,那感谢给我提问的机会。 business which actually had very strong growth last year so could you share your plans for the retail business for this year and also any new product plans and also new category launch what will be your retail revenue target for 2026 Thank you Thank you.

Okay, thank you, Lydia. Let me first share the overall direction and product plans for our retail business. Over the past few years, it is fair to say that a tour planet has adhered to the development philosophy of innovation-driven and product-driven. We not only released the industry's first deep sleep standard, but also propelled the leapfrog growth in the retail business, truly leading the progress and upgrade of China's sleep industry. Moving forward, a full planet will enter a face of deepening core capabilities, consolidating our competitive advantages from all dimensions.

We aim to avoid homogenized competition with those emulators and followers and forge a unique development path for a tour planet. 然后这些品类我们预计它应该会实现比枕头更快的增长,进一步提升市场增长。 那么其次呢,我们的床粒和睡衣这些新品类也会加速的突破,我们会通过爆品的叠单,举品类矩阵延伸的方式实现规模化的增长。

In terms of category planning, a tour planet will continue our focus on the deep sleep track. Firstly, we will continue to strengthen our core categories, and that will be the pillow category, to name one of them. our goal for the pillow category is to maintain our absolute leading position establishing a decisive advantage while we expect the comfort of category to achieve an even faster growth than pillows further increasing market share secondly new categories such as fitted sheets and launch where will accelerate breakthroughs achieving scale growth through blockbuster product iterations, and category matrix expansion. Besides, mattresses and other sleep accessories will also be as extended categories, collectively completing our deep sleep ecosystem layout of Atoora Planet. Next, I would like to share our outlook for the retail revenue. In 2025, both scale and brand reputation of our retail business reached the new heights. Looking at 2026, we expect retail revenue to grow by 25% to 30% year-on-year. While maintaining the healthy scale growth, we are more focused on the continued consolidation of our core competitiveness. By continuously enhancing product strength and brand power, we aim to achieve a longer-term sustainable development for retail business.

Thank you, Lydia. Next question, please.

Thank you. Our next question comes from Ronald Lo of Bank of America. Please ask your question, Ronald. Your line is open.

Let me ask my question in English. So I have a financial question. So we noticed that the company's actual net profit margin in 2025 was better than initially expected at the beginning of the year. Could you talk about your expected trend for the net profit margin in 2026? Thank you.

Thank you, Ronald. 确实我们2025年 我们公司全年调整后的 经济率约为17.9% 年初的时候 我们也预估 收入结构的变化和有效税率的提升 会对利润率产生一定的拖拽 但是通过我们 经济化的运营管理 我们各个业务板块的利润率水平 都持续的改善 跟提升 同时也叠加政府的补贴 在Q4的时间性

Thank you, Ronald. Well, indeed, for the full year of 2025, our group's adjusted net profit margin was approximately 17.9%. At the beginning of the year, we had estimated that there's going to be changes in revenue structure and a higher effective tax rate, and they would exert some drag on our profit margin. However, through refined operational management, our profit margins of all business units continued to improve and coupled with the policy subsidies being embodied intensively during Quarter 4, eventually our 2025 net profit margin roughly leveled with that of 2024.

Thank you very much.

Looking ahead to 2026, as our business continues to evolve, the revenue mix of our monetized business, supply chain business, and retail business will continue to change. At the same time, based on the new three-year strategy of Chinese experience, brand-led excellence, we will allocate resources with a longer-term perspective. For instance, to strengthen key positions through workforce expansion and to enhance digital operational capabilities to support the group's long-term development. Therefore, we anticipate that both our G&A and R&D expense ratios will increase this year. Therefore, at this starting point of the year, we preliminarily expect the group's net profit margin for 2026 to decline slightly year on year. Thank you.

Thank you, Romo. Next question, please.

Thank you. We will now take our next question from Dan Chief of Morgan Stanley. Please ask your question.

Dan, your line is now open. 开店是跟二五年持平的一个目标 那我们对于二六年的全年的关店的计划 是一个什么样的规划呢?谢谢 Please allow me to translate my question My question is relating to the hotel closures We saw that company closed 92 hotels in 2025 full year Including seven lease and operated hotels This was slightly higher than the initial estimate At the beginning of last year Could you share the company's plan on hotel closure for the full year of 2026, providing that growth opening in 2026 flat year and year? Thank you.

Thank you, Dan. Regarding closures, just like what we have been consistently communicating with the market, our core consideration for closure decisions is the consistency of experience. The goal is to continuously strengthen the operational quality and experience standards of our hotels in operation. In 2025, we rigorously maintained quality control over our operating hotels, and thereby closing a total of 92 hotels. In 2026, to ensure the quality level of our overall hotel network, we will still maintain a certain proactive elimination rate, terminating cooperation with hotels that fail to meet a tour's experiential standards in order to continuously consolidate our brand value in the long term. Nonetheless, based on the optimization and adjustments already made in 2025, now the foundation of our existing hotel portfolio is more solid. Therefore, we expect the number of closures in 2026 to decrease. Our current planned target is to close around 80 hotels within the year.

Thank you. That concludes today's question and answer session. I'd like to now turn the conference back to Mr. Liu Ku for any additional or closing comments.

Thank you for joining us today. If you have any further questions, please feel free to contact our IR team. We look forward to speaking with you again next quarter. Thank you, and goodbye.

This concludes today's conference call. Thank you for participating. you may now disconnect.