A：The demand for travel in China is shifting from discretionary to a necessity, supported by the country's extensive high-speed rail and highway network coverage which has made traveling easier and more convenient, leading to the penetration of accommodation needs from major cities to county-level markets.

A：The current supply quality in China's hotel industry is unable to fully meet the increasingly upgraded and diversified consumer demand. As a result, supply-side reform is anticipated to be the main theme of future industry development, presenting growth opportunities for domestic branded hotels like Edgeworth Group's. The company plans to deepen its roots in the China market, pursue high-quality growth, and deliver service excellence.

A：Recent positive developments include the continuous and steady growth of domestic travel demand, particularly evident during national holidays. On the supply side, sequential supply growth has stabilized and the year-over-year growth rate has moderated. Edgeworth Group's performance improved across several key metrics in the third quarter, including a year-over-year increase in ADR and maintained a stable occupancy rate, a 17.3% year-over-year increase in the number of rooms, and an 17.5% year-over-year growth in group hotel GMB to RMB 30.6 billion. The company's membership base also grew to over 300 million globally.

A：Edgeworth Group is focusing on expanding its hotel network, particularly in lower-tier cities, by upgrading core products and enhancing services with a customer-centric approach. The new version of Hanting, along with G Hotel and Orange Hotel, will serve as key growth engines for the company's expansion in lower-tier cities. Additionally, the company is advancing in the upper-scale segment, with more than 1600 operational and pipeline upscale hotels. The introduction of the 'Icon' brand represents a move towards lifestyle hotel offerings, complementing the group's portfolio and providing a combination of subtle, understated, and elegant oriental aesthetics with value-led accommodation.

A：The success of G Hotels, the strong supply chain, modular construction capability, and global leading membership and direct sales capability are expected to support G icons in achieving low construction costs, high operational efficiency, and high product quality. This is expected to drive the penetration in the upper scale segment and potentially establish G icons as a world-class brand.

A：The company plans to strengthen its direct sales capabilities through an actual reward membership program, which has seen growing membership and an increased portion of room sales to members. Future strategies include enhancing membership benefits, expanding loyalty points usage scenarios, and exploring cross industry partnerships to improve member engagement and direct sales.

A：During the third quarter, the group revenue grew year-over-year to RMB 7 billion and revenue grew 10.8% to RMB 5.7 billion. The Adjusted EBITDA rose by 18.9% over year to RMB 2.5 billion, with a margin improvement by 3.3 percentage points year over year to 36.1%.

A：The franchise business revenue grew robustly by 27.2% year-over-year to RMB 3.3 billion in the third quarter. The gross operating profit grew by 28.6% year-over-year to RMB 2.2 billion with a margin of 68%. As a result, the gross operating profit contribution from the franchise and franchise business further enlarged to 70% in the third quarter, up 11.1 percentage points year over year.

A：The company's outlook for the fourth quarter is a revenue growth of 1% to 5% year over year. For the business and leisure demand, the outlook is flat to slightly positive. The stabilization in Revpar is attributed to the stabilization in demand due to中秋 and National Day holidays, moderation in supply growth, and enhanced revenue management efforts. The leisure demand is continuously growing, while business demand is not yet strong. The company is cautious about the sustainability of the Revpar stabilization and will provide more insight during the fourth quarter earnings call.

A：The recent ADR performance is trying to understand the reasons behind its recent trends and the sustainability of these results. However, the transcript does not provide a specific explanation or conclusion regarding the reasons or sustainability of the ADR performance.

A：The gap between blended RESPA and Sim Hotel RESPA has remained at a similar level with the last few quarters. The transcript does not provide any indication of future plans to narrow this gap or the measures that may be taken to do so.

A：The company has been focusing on enhancing revenue management capabilities, particularly in pricing strategies for different hotel products. Sales people have been given various incentives to boost sales activities. Additionally, product upgrades, quality improvements, and service excellence have been ongoing efforts, which have led to recommendations from customers and a stronger pricing power.

A：The company plans to develop the G by Icons brand as one of the core brands in the up-scale segment, aiming to become the best hotel brand favored by Chinese consumers. While specific details on store openings, CapEx, payback period, and competitive advantages over other leading brands were not provided, the company hopes to share more information after the first hotel opening.

A：The company has benefited from fast new signings post-Covid and improvements in supply chain capability, resulting in a strong pipeline to hotel openings. The company achieved over 2000 hotel openings in the first nine months, and it could possibly open more than 2300 hotels for the full year, exceeding the previous guidance. However, the focus remains on quality expansion rather than just scale.

A：The company has been working on enhancing the member base and diversifying demands to improve the loyalty program. It introduced a price guarantee program, and is seeking to fulfill diverse demands such as sports events and inbound travelers. Cross-industry cooperation has been done to enhance member experiences and engagement. As for cost control, the company is reducing costs per room and negotiating for better rental reductions to improve the profitability level of lease and owned hotels. Systematic capability improvements in revenue management and cost control are also being pursued.