Huatian Hotel Group Co Ltd

Huatian Hotel released its 2026 interim report. In the first half, net loss attributable to the parent company was 113 million yuan, widening from a loss of 107 million yuan in the same period last year. The company achieved operating revenue of 241 million yuan, down 4.9 percent year on year. Net loss attributable to the parent after deducting non-recurring items was 119 million yuan, and net operating cash flow was 8.62 million yuan, down 15.3 percent year on year. In the second quarter, net loss attributable to the parent was 50.68 million yuan, and net loss after deducting non-recurring items was 51.81 million yuan. The company said the domestic hotel industry has entered a stage of stock competition, and fluctuations in the consumer market caused the main business budget progress to fall short of expectations, while the replication and promotion of new business formats was relatively slow. During the reporting period, four senior executives, including vice chairman and vice president Deng Yongping, left the company. The company has been loss-making since 2022, and net profit after deducting non-recurring items has been negative for 12 consecutive years from 2014 to 2025, with cumulative losses of about 3.8 billion yuan.

Huatian Hotel disclosed its earnings forecast, expecting a net loss attributable to shareholders of 100 million to 125 million yuan in the first half of 2026, compared with a loss of 107 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 105 million to 130 million yuan, compared with a loss of 113 million yuan a year earlier. The company said the main reasons for the loss are operational pressure caused by fluctuations in the consumer market and intensified competition in the hotel industry, while fixed operating costs such as property rent, labor costs, and interest expenses remain relatively rigid. Huatian Hotel is mainly engaged in hotel commerce and lifestyle services.