Shanghai Jin Jiang International Hotels Co., Ltd. (600754.SH) released its 2026 interim report on the evening of August 28. The financials show first-half revenue reaching RMB 6.801 billion, up 4.21% year-on-year. Net profit attributable to shareholders rose 47.05% to RMB 545 million, while non-GAAP net profit climbed 45.16% to RMB 593 million. The second quarter sustained the steady growth seen in the first quarter, with structural improvements in earnings quality. Operating cash flow expanded 57.95% year-on-year, and finance costs declined 16.36%, underscoring a continuously optimized financial structure and thicker internal cash-generation capacity.

Direct-operated store recovery combined with asset renewal programs has kept the core business momentum alive. During the reporting period, domestic limited-service hotels under Jin Jiang posted a 25.22% year-on-year increase in attributable net profit, with RevPAR up 0.46% and occupancy improving 0.76 percentage points. Despite industry-wide average daily rate pressure, the company achieved positive revenue per available room growth through occupancy recovery, validating its operational resilience. New signings for mid-scale and above brands rose to 75% of total contracts, further refining the signing structure. Domestic full-service hotels delivered a 27.70% year-on-year rise in attributable net profit, with several key brands, including Jin Jiang International Hotels, Radisson, and Radisson Individuals, continuing to gain traction and broaden niche market coverage.

To strengthen direct-operated stores, the company intensified its hands-on management of domestic limited-service hotels. By optimizing store mix and deepening cost controls, it pushed operational fundamentals higher, with RevPAR up 10.7% and occupancy up 7.2 percentage points year-on-year. For overseas limited-service hotels, direct-operated locations saw RevPAR rise 7.26% from a year earlier. The company also completed renovation of over 40 hotels overseas during the first half, upgrading quality across the portfolio. Notably, direct-operated stores renovated between 2023 and 2025 achieved a 9% RevPAR improvement and an RGI gain of 7 points to 105 versus pre-renovation levels, demonstrating that the strategic logic of driving growth through existing asset upgrades continues to pay off.

Platform capabilities are being strengthened, with membership and the Global Procurement Platform (GPP) delivering multi-dimensional support. The membership system remains the anchor for direct-sales channels. In the first half, central reservation penetration for domestic limited-service hotels reached 74.6%, up 11.8 percentage points from the 2025 level. Direct sales accounted for 36.7% of total bookings, a 33.9% year-on-year improvement. Member contribution rose to 75.57%, up 13 percentage points, while monthly active users on the membership platform grew 24% year-on-year. Business travel also maintained robust momentum, with GMV rising 31.5% year-on-year, and key accounts with annual spending above RMB 10 million saw GMV grow 26%. A highly sticky membership base, alongside expanding corporate travel volumes, continues to strengthen central booking capabilities and cultivate a stable, efficient customer acquisition structure.

The GPP global procurement platform is accelerating the transformation of the overseas supply chain from "Made in China" to "China Supply Chain". GPP services currently reach 75 countries. During the first half, domestic GPP GMV hit RMB 5.51 billion, up 11% year-on-year, and the platform helped domestic franchisees save nearly RMB 100 million in procurement costs. The company is also advancing its ESG governance through systematic initiatives. In July, its Wind ESG rating was upgraded from A to AA, a historical high, and the composite score ranked among the top three in the industry, reflecting market recognition of its governance capabilities and long-term value. Analysts from GF Securities, Guojin Securities, and others note that Jin Jiang Hotels, as a leading domestic hotel chain, is deepening structural reforms with solid internal growth drivers. With continued optimization of both domestic and overseas operations and a steadily improving capital structure, the earnings release trend is expected to persist.