H World Group Limited

Good day and thank you for standing by. Welcome to the H-World Q2 2026 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. To ask a question during this session, you will need to press star 1, 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1, 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ivy Luo. Please go ahead.

Thank you, Operator. Good evening and good morning, everyone. Thanks for joining us today. Welcome to H-World Group 2026 Second Quarter and First Half Earnings Conference Call. Joining us today is our founder and executive chairman, Mr. Qi Ji, our CEO, Mr. Jin Hui, our CFO, Mr. Arthur Yu. Following our 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 Security 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 filings with SEC. H-World Group does not undertake any obligation 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 earlier today. As a reminder, this conference call is being recorded. The webcast of this conference call, as well as supplementary slide presentation, is available at ir.hworld.com. With that, now I will hand over the call to our CEO, Mr. Jin Hui, to discuss our business performance in the second quarter of 2026. Mr. Jin, please. Dear investors and analysts, good day.

Thanks for joining us today. Welcome to HLO Group's second quarter 2026 earnings conference call. In the first half of the year of 2026, the demand for travel documents for domestic travel is rising. According to the Ministry of Culture and Tourism, in the first half of the year, the number of domestic residents traveling is up to 34.6 billion people, which is 5.4% earlier than before. As the multi-nation policy continues to fall, the number of tourists entering the country is rising, which brings a new increase in domestic accommodation. In terms of consumption structure, the total cost of domestic travel in the same period of time has slowed down. During the first half of 2026, domestic culture and tourism travel in China maintained steady growth. According to the Ministry of Culture and Tourism,