H World Group Limited

Ladies and gentlemen, thank you for standing by, and welcome to What's Your Group Limited 2020 Fourth Quarter and Four-Year Earnings Conference Call. At this time, all participants are in the listen-only mode. There will be a presentation followed by a question-and-answer session, at which time, if you wish to ask a question, you will need to press star and 1 on your telephone. I must advise you that this conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Jason Chen. Thank you. Please go ahead.

Thank you, Rob. Good morning and good evening, everyone. Thanks for joining us today. Welcome to BaZhu Group 2020 Fourth Quarter and Full Year Earnings Conference Call. Joining us today is our founder and CEO, Mr. Ji Qi, our president, Mr. Jing Hui, our Chief Digital Officer, Ms. Liu Xingxin, and our CFO, Mr. Teo Ne Chuan. Following their prepared remarks, management will be available to answer your questions. Before we continue, please note that the discussion today will include forward-looking statements made under the safe harbor provisions of the United States Private Decree Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results might be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public findings with the SEC. Huatu Group does not undertake any obligations to update any forward-looking statements except as required under applicable laws. On the call today, we will also mention adjusted financial measures during the discussion of our performance. Reconciliation of those measures to comparable gap information can be found in our earnings release that was distributed yesterday night. As a reminder, this conference call is being recorded. The webcast of this conference call as well as supplementary slide presentation is available on BaZhou Group's website at ir.bazhou.com. With that, now I will turn the call over to Mr. Xi. Mr. Xi, please.

Good morning and good evening, everyone. Thanks for joining us today. 2020 was a challenging year. COVID-19 pandemic strongly affected both our China and the European business. However, we are very happy to see our China business recover strongly throughout the year, especially in the second half of 2020. Thanks to Chinese government effective prevention measures and cooperation from Chinese people. More importantly, our hotel networks and pipeline continued expanding in 2020. Thanks to our dedicated employees, our powerful brand portfolio and solid execution for our European business also is still being impacted by COVID-19 pandemic. They keep our digitalization plan progressing. Also, we took the opportunity to make some organizational change and prepare for future recovery. Moving to slide two, we believe the COVID-19 pandemic has not changed the long-term growth potential of China's lodging industry. Following China's new circulation, economic development, The Olympic model mentioned by President Xi, Huazhou has set three key strategies for our long-term growth. First, we continue to emphasize our China-focused strategy. We target to open 10,000 hotels in 1,000 cities of China by 2022. Our future expansion will not only focus on speed, but also on quality, just like we did before. Secondly, we continuously focus on innovation. We build our business around the three-in-one super compositor model, combining brand, traffic, and technology. We push for the full digitalization of hotel life circles to provide a better service for customers. to improve hotel efficiency and to make more profits for our franchisees. Last but not least, we think upgrading our organizational capability is key. Our hotel networks are keeping growing. We are penetrating into low-tier cities. Meantime, we are expanding in Europe. We are also speeding up the development of upscale hotels. All these strategic moves require organizational transformation and diversified talents. With that, I will turn the call to Jinghui to present our 2020 strategic review and 2021 strategic focus. Thank you, Jiqi. Before we were established in 2021,