H World Group Limited

Ladies and gentlemen, thank you for standing by. And welcome to the HUAZOO Group 2021 Q4 and Full Year Earnings Conference Call. Please be advised that today's conference is being recorded. At this time, all participants are in a listen-only mode. It is now my pleasure to introduce IR Director Jason Chen.

Jason Chen Thank you, Andrew. Good morning and good evening, everyone. Thanks for joining us today. Welcome to Huazhou Group's 2021 Fourth Quarter and Full Year Earnings Conference Call. Joining us today is our Founder and Chairman, Mr. Ju Qi, our CEO, Mr. Jin Hui, our President, Ms. Liu Xingxin, our CFO, Ms. Chen Hui, our Deputy CFO, Ms. Ye Fei, and our CEO of International Business, Ms. He Ji Hong. 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 provision of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public findings with the SEC. Huazhou Group does not undertake any obligations to update any forward-looking statements except as required and applicable laws. On the court today, we will also mention adjusted financial measures during the discussion of our performance. Reconciliation of those measures to comparable GAAP information can be found in our earnings release that was distributed yesterday. As a reminder, this conference call is being recorded. The webcast of this conference call as well as supplementary slides presentation is available on Huazhou Group's website at ir.huazhou.com. With that, now I will turn the call over to Mr. Ji Ji. Mr. Ji, please.

Good morning and good evening, everyone. 2021. With another challenging year, constant variation and a resurgence of COVID-19 had brought many uncertainties to the lodging industry. At the same time, global macro conditions are also becoming increasingly complex. Since China's economic development strategy is changing from high-speed growth to high-quality development, We also adjusted our strategy from previous mega-scale growth to sustainable quality growth, focusing on high-quality hotel development. With the new strategy, we should be able to achieve sustainable and quality growth, create greater value to our customers, employees, and franchisees, and make the industry bigger. by leveraging on our unique 3-in-1 business model, which includes brand, traffic, and technology. Under the Sustainable Quality Growth Strategy, growth is still the main theme. However, the growth relies on two critical conditions. One is called precision or accuracy. By leveraging on Huazhou's strong technology, and innovative capability, as well as a people-oriented organization with strong executive ability, we can seek for more precise and accurate operations that achieve high efficiency and quality. Moreover, the precision also requires us to benchmark world-class companies on talent cultivation and reservation. in order to maximize the staff efficiency within the company. In addition, both products and service should also be changed from good enough to enough good, and more precisely for simplicity, concentration, perfection, and focus on core strategy. Success or failure is often determined by time details hotel business. Hence, precision becomes more and more important. Another condition is called value or benefit. It means value creation, long-term focus, and social benefit. Also, we are continuously focused on creating greater values to our stakeholders along the value chain of lodging. Also, we would insist on doing difficult but right things and being long-term focused. Last but not least, we would also focus on ESG development, environmental protection, carbon emission reduction, social welfare, and corporate social responsibility to bring long-term benefits to our customers, employees, franchisees, partners, shareholders, communities, and countries. With that, I will turn the call to Jinghui to discuss our business development and the space focus.