Widespread residential price growth expected in 2025, as interest rate cuts prompt market rebound
RE/MAX Canada expects national average home price to rise by five per cent next year
- One-third of Canadians (36 per cent) are optimistic that conditions in the Canadian housing market will improve in 2025
- It’s anticipated that the 2025 housing market will favour sellers in 44 per cent of regions surveyed, while 33 per cent of the regions are likely to balance out, and 17 per cent will favour buyers
TORONTO, Nov. 26, 2024 /CNW/ — Canadians are looking ahead to 2025 with a positive outlook on the housing market, prompted by a series of interest rate cuts in the latter part of 2024. RE/MAX Canada and its network of brokers and agents are expecting a more active market next year, with the national average residential price likely to increase by five per cent, and sales anticipated to rise in 33/37 regions surveyed, with increases up to 25 per cent.
Download the 2025 Housing Market Outlook Report Data Table
This renewed confidence in the market is notably being felt by first-time homebuyers (seven per cent) according to a Leger surveyed commissioned by RE/MAX Canada as part of the 2025 Housing Market Outlook Report. RE/MAX brokers and agents in 81 per cent of regions surveyed noted that first-time homebuyers were the key demographic anticipated to drive market activity in 2025.
“While affordability challenges persist, the sequential interest rate cuts and changes to the mortgage stress test are a much-needed reprieve for those looking to get into the market,” says Christopher Alexander, President of RE/MAX Canada. “The current environment is more encouraging than it has been in the past few years, especially for first-time homebuyers. However, a boost in sales, coupled with limited inventory, almost always leads to rising prices, which is the trend we’re expecting to see materialize in virtually all Canadian housing markets.”
Canadian Consumer Insights
According to the Leger survey, three quarters of Canadians (73 per cent) believe home ownership is the best investment they can make. This sentiment is unchanged year-over-year. Sixty per cent of Canadians currently own a home. Meanwhile, nearly half of Canadians (49 per cent) are confident that home ownership is attainable; and 40 per cent are increasingly becoming more open to settling down in new neighbourhoods to mitigate and manage some of the hurdles surrounding affordability.
The survey outlined some key home-buying trends heading into 2025, including: 47 per cent of Canadians (up by 14 per cent from 2024) prioritize residential properties and areas that are less likely to be impacted by climate change. Results also highlight that more than half of Canadians (62 per cent; up five per cent when comparing results from 2024) are more confident that working with a professional realtor broker or agent will bring value to the overall buying or selling process. When looking for information about new neighbourhoods to move to, 36 per cent turn to a real estate agent, while 42 per cent rely on online search engines and 45 per cent ask friends and family.
Regional Market Insights
RE/MAX brokers and agents nationwide, were asked to share a year-over-year analysis of their local market between January 1 and October 31 and share their estimated outlook for 2025. Ahead of 2025, it’s anticipated that 44 per cent regions will shift to a sellers’ market (Victoria, BC, Greater Vancouver Area, BC, Edmonton, AB, Regina, SK, Sudbury, ON, North Bay, ON, Simcoe County, ON, York Region, ON, Windsor, ON, Thunder Bay, ON, Kenora, On, Fredericton, NB, Saint John, NB, Halifax, NS, Truro & Colchester, NS, and St. John’s Metro, N.L), while 33 per cent regions will shift to balance out (Vancouver Island, BC, Kelowna/Central Okanagan, BC, Winnipeg, MB, Kitchener-Waterloo, ON, Mississauga, ON, Brampton, ON, Durham, ON, Toronto, ON, Ottawa, ON, Sault Ste. Marie, ON, Kingston, ON, and Prince Edward Island), 17 per cent will shift to a buyers’ market (Hamilton, ON, Burlington, ON, Peterborough, ON, Kawartha Lakes, ON, Muskoka, ON, and Haliburton, ON), while six per cent will experience mixed market conditions (Calgary, AB and Niagara, ON).
Based on their insights, the majority of the regions surveyed noted that first time homebuyers are one audience group driving the market across the nation, and many are looking for townhomes and small residential properties such as bungalows, while move-up and move-over homebuyers are looking for larger properties with additional space. On the flip side, retirees are seeking to down-size in most regions, with the exception of Calgary who are seeking villas and larger condominiums. Similar, to last year, many homebuyers are still looking for detached homes, as well semi-detached homes with income potential to off-set rising cost of living. These trends are likely to continue heading into 2025, according to RE/MAX brokers across the country.
Western Canada
Heading into 2025, British Columbia and the Prairies are anticipating average residential prices to rise across the region by as much as three to10 per cent. Specifically, sale prices are anticipated to increase by three per cent in Kelowna/Central Okanagan, four per cent in Vancouver Island, seven per cent in the Greater Vancouver Area (GVA), five per cent in Calgary, Alberta, 10 per cent in Edmonton, Alberta, and five per cent in Winnipeg, Manitoba. Sale transactions in the region are also anticipated to increase by four to 20 per cent in Vancouver Island, GVA, and Kelowna/Central Okanagan, and two to five per cent in Edmonton and Calgary, as well as Winnipeg.
GVA and Victoria are anticipating seller’s markets for 2025, while Vancouver Island and Kelowna/Central Okanagan are balanced heading into the new year. In the Prairies, a mix of both balanced and seller’s markets are anticipated.
In Alberta, specifically Calgary and Edmonton, continue to see demand from out-of-province buyers from Ontario and British Columbia who are searching for affordability. Calgary, in particular, has seen a boost in popularity in the last few years, and as a result, affordable housing is in low supply. As a result, Edmonton has seen an influx of homebuyers from Calgary who have been “priced out” and looking to Edmonton for an affordable way to enter or invest in the housing market.
Ontario
As a result of economic conditions impacting markets across the country, Ontario is anticipating average residential sale price increases across the province. Due to low supply and lack of affordable housing, Toronto expects a slight price increase of 0.1 per cent. Prices are expected to increase by two per cent in Niagara; 2.3 per cent in Hamilton; 2.5 per cent in Ottawa, and Kenora: three per cent in Sault Ste. Marie, Thunder Bay, Muskoka, and Haliburton; four per cent in Kawartha Lakes; 4.5 per cent in London and Burlington; five per cent in Peterborough, Sudbury, North Bay, Durham, Kingston, and York Region; six per cent in Kitchener-Waterloo, Mississauga, and Brampton; and ten per cent in Simcoe County.
Like Western Canada, Ontario is expecting a mix of market types in 2025 as different regions adjust to lower interest rates. Majority of regions (36 per cent) are expected to be balanced markets including Kitchener-Waterloo, the City of Toronto, Brampton, Mississauga, Durham, Kingston, Ottawa, and Sault Ste. Marie. 31per cent are expected to be sellers’ markets including Sudbury, North Bay, Simcoe County, York Region, Windsor, Kenora, and Thunder Bay. Meanwhile Peterborough, Kawartha Lakes, Burlington, Hamilton, Muskoka, and Haliburton are expected to be buyers’ markets. Niagara is expected to experience both buyers’ and balanced conditions throughout 2025.
Despite ongoing affordability and inventory challenges across multiple markets, buyer confidence is returning as first-time homebuyers and sidelined buyers in Ontario feel the impact of lower mortgage rates and the new 30-year amortizations. As a result, majority of regions anticipate first-time homebuyers will drive market activity in 2025, with the exception of larger regions in Southern Ontario including Toronto, Windsor, York Region, and Simcoe County which predict move-up buyers will drive market activity due to the higher home prices for entry level properties.
Atlantic Canada
In 2025, the average residential sale price in Atlantic Canada is anticipated to increase in all markets while the number of sales in some markets are expected to remain the same. Residential sales prices are expected to increase by 1.5 in Charlottetown, Prince Edward Island, 3.5 per cent in Saint John, New Brunswick 5.5 per cent in Fredericton/Oromocto, New Brunswick, five per cent in Halifax, Nova Scotia, eight per cent in Truro & Colchester County, Nova Scotia and St. John’s, Newfoundland.
Number of sales are expected to increase by 1.5 in Charlottetown, five per cent in St John’s, six per cent in Halifax, 10 per cent in Truro & Colchester County. While Saint John and Fredericton/Oromocto are expected to remain flat. Across all markets, first-time homebuyers are expected to drive market activity and single-detached houses are expected to see the most sales activity in 2025.
About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,520 Canadians aged 18 years or older, was completed between October 25-27, 2024, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/-2.5 per cent, 19 times out of 20.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings RMAX with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
SOURCE RE/MAX Canada
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H World Group Limited Reports Third Quarter of 2024 Unaudited Financial Results
- A total of 10,845 hotels or 1,062,546 hotel rooms in operation as of September 30, 2024.
- Hotel turnover1 increased 10.7% year-over-year to RMB26.0 billion in the third quarter of 2024. Excluding Steigenberger Hotels GmbH and its subsidiaries (which are collectively referred to as Deutsche Hospitality, “DH“, or “Legacy-DH“), hotel turnover from the Legacy-Huazhu (“Huazhu“) segment increased 11.0% year-over-year in the third quarter of 2024; and hotel turnover from the Legacy-DH segment increased 7.8% year-over-year in the third quarter of 2024.
- Revenue increased 2.4% year-over-year to RMB6.4 billion (US$918 million)2 in the third quarter of 2024, within the previously announced 2% to 5% revenue increase guidance as compared to the third quarter of 2023. Revenue from the Legacy-Huazhu segment in the third quarter of 2024 increased 1.0% year-over-year, in line with the previously announced 1% to 4% guidance; and revenue from the Legacy-DH segment in the third quarter of 2024 increased 8.9% year-over-year.
- Net income attributable to H World Group Limited was RMB1.3 billion (US$181 million) in the third quarter of 2024, compared with RMB1.3 billion in the third quarter of 2023 and RMB1.1 billion in the previous quarter. Net income attributable to H World Group Limited from the Legacy-Huazhu segment was RMB1.4 billion in the third quarter of 2024, compared with RMB1.4 billion in the third quarter of 2023 and RMB1.0 billion in the previous quarter. Net loss attributable to H World Group Limited from the Legacy-DH segment was RMB83 million, which included RMB81 million of one-off restructuring costs, in the third quarter of 2024, compared with a net loss of RMB37 million in the third quarter of 2023 and a net income of RMB34 million in the previous quarter.
- EBITDA (non-GAAP) in the third quarter of 2024 was RMB2.0 billion (US$286 million), compared with RMB2.1 billion in the third quarter of 2023 and RMB1.9 billion in the previous quarter.
- Adjusted EBITDA (non-GAAP), which excluded share-based compensation expenses, gain (loss) from fair value changes of equity securities, net foreign exchange gain (loss), and gain (loss) on disposal of investments from EBITDA (non-GAAP), was RMB2.1 billion (US$300 million) in the third quarter of 2024, compared with RMB2.3 billion in the third quarter of 2023 and RMB2.0 billion in the previous quarter.
- Adjusted EBITDA by segment is our segment measure. Adjusted EBITDA from the Legacy-Huazhu segment was RMB2.1 billion in the third quarter of 2024, compared with RMB2.3 billion in the third quarter of 2023 and RMB1.9 billion in the previous quarter. Adjusted EBITDA from the Legacy-DH segment was RMB21 million in the third quarter of 2024, compared with RMB73 million in the third quarter of 2023 and RMB131 million in the previous quarter.
- For the fourth quarter of 2024, H World expects its revenue growth to be in the range of 1%-5% compared to the fourth quarter of 2023, and also in the range of 1%-5% excluding DH.
SINGAPORE and SHANGHAI, Nov. 26, 2024 (GLOBE NEWSWIRE) — H World Group Limited HTHT (“H World“, the “Company“, “we” or “our“), a key player in the global hotel industry, today announced its unaudited financial results for the third quarter ended September 30, 2024.
As of September 30, 2024, H World’s worldwide hotel network in operation totaled 10,845 hotels and 1,062,546 rooms, including 138 hotels and 27,687 rooms from DH. During the third quarter of 2024, our Legacy-Huazhu business opened 774 hotels, including 3 leased and owned hotels, and 771 manachised and franchised hotels, and closed a total of 217 hotels, including 25 leased and owned hotels and 192 manachised and franchised hotels. As of September 30, 2024, H World had a total of 2,925 unopened hotels in the pipeline, including 2,899 hotels from the Legacy-Huazhu business and 26 hotels from the Legacy-DH business.
Legacy-Huazhu – Third Quarter of 2024 Operational Highlights
As of September 30, 2024, Legacy-Huazhu had 10,707 hotels in operation, including 570 leased and owned hotels, and 10,137 manachised and franchised hotels. In addition, as of the same date, Legacy-Huazhu had 1,034,859 hotel rooms in operation, including 83,861 rooms under the lease and ownership model, and 950,998 rooms under the manachise and franchise models. Legacy-Huazhu also had 2,899 unopened hotels in its pipeline, including 6 leased and owned hotels, and 2,893 manachised and franchised hotels. The following discusses Legacy-Huazhu’s revenue per available room (“RevPAR“), average daily room rate (“ADR“) and occupancy rate for leased and owned Huazhu hotels, as well as manachised and franchised Huazhu hotels for the periods indicated.
- The ADR was RMB301 in the third quarter of 2024, compared with RMB324 in the third quarter of 2023 and RMB296 in the previous quarter.
- The occupancy rate for all the Legacy-Huazhu hotels in operation was 84.9% in the third quarter of 2024, compared with 85.9% in the third quarter of 2023 and 82.6% in the previous quarter.
- Blended RevPAR was RMB256 in the third quarter of 2024, compared with RMB278 in the third quarter of 2023 and RMB244 in the previous quarter.
- For all the Legacy-Huazhu hotels which had been in operation for at least 18 months, the same-hotel RevPAR was RMB258 in the third quarter of 2024, representing a 10.3% decline from RMB288 in the third quarter of 2023, with an 8.4% decrease in same-hotel ADR and a 1.8 percentage-point decrease in same-hotel occupancy rate.
Legacy-DH – Third Quarter of 2024 Operational Highlights
As of September 30, 2024, Legacy-DH had 138 hotels in operation, including 77 leased hotels, and 61 manachised and franchised hotels. In addition, as of the same date, Legacy-DH had 27,687 hotel rooms in operation, including 15,700 rooms under the lease model, and 11,987 rooms under the manachise and franchise models. Legacy-DH also had 26 unopened hotels in the pipeline, including 12 leased hotels and 14 manachised and franchised hotels. The following discusses Legacy-DH’s RevPAR, ADR and occupancy rate for leased as well as manachised and franchised DH hotels (excluding hotels temporarily closed) for the periods indicated.
- The ADR was EUR117 in the third quarter of 2024, compared with EUR114 in the third quarter of 2023 and EUR120 in the previous quarter.
- The occupancy rate for all Legacy-DH hotels in operation was 69.8% in the third quarter of 2024, compared with 69.0% in the third quarter of 2023 and 68.3% in the previous quarter.
- Blended RevPAR was EUR82 in the third quarter of 2024, compared with EUR79 in the third quarter of 2023 and EUR82 in the previous quarter.
Jin Hui, CEO of H World commented: “After reaching the milestone of 10,000 hotels in the second quarter, we continued our fast-paced, high-quality network growth and opened 774 new hotels in China in the third quarter of 2024. This quarter, Legacy-Huazhu’s blended RevPAR declined by 8% year-over-year primarily due to a high ADR base in the same period last year and unfavorable weather. Our occupancy rate remained solid at 85% despite our ongoing rapid hotel network expansion. Going forward, we will continue to emphasize the importance of sustainable high-quality growth. We aim to expand our presence across all regions and continue penetrating into lower-tier cities in China, thereby reaching more of China’s hotel market with our high-quality hotel products with excellent services.”
“Regarding our business outside China, our Legacy-DH business recorded a 3.7% year-over-year blended RevPAR increase in the third quarter of 2024. We continued focusing on cost reduction in our European business, while at the same time seeking growth opportunities in the Asia-Pacific (APAC) and in the Middle East areas.”
Third Quarter of 2024 Unaudited Financial Results
| (RMB in millions) | Q3 2023 | Q2 2024 | Q3 2024 |
| Revenue: | |||
| Leased and owned hotels | 3,878 | 3,681 | 3,690 |
| Manachised and franchised hotels | 2,268 | 2,334 | 2,602 |
| Others | 142 | 133 | 150 |
| Total revenue | 6,288 | 6,148 | 6,442 |
Revenue in the third quarter of 2024 was RMB6.4 billion (US$918 million), representing a 2.4% year-over-year increase and a 4.8% quarter-over-quarter increase. Revenue from the Legacy-Huazhu segment in the third quarter of 2024 was RMB5.2 billion, representing a 1.0% year-over-year increase and a 6.9% quarter-over-quarter increase. Our year-over-year revenue growth rate was negatively affected by our selected closures of several underperforming leased and owned hotels, as well as the decline in RevPAR. Revenue from the Legacy-DH segment in the third quarter of 2024 was RMB1.3 billion, representing an 8.9% year-over-year increase and a 3.0% quarter-over-quarter decrease. The year-over-year increase was attributable to both business recovery and our network expansion.
Revenue from leased and owned hotels in the third quarter of 2024 was RMB3.7 billion (US$526 million), representing a 4.8% year-over-year decrease and a 0.2% quarter-over-quarter increase. Revenue from leased and owned hotels from the Legacy-Huazhu segment in the third quarter of 2024 was RMB2.5 billion, representing a 10.4% year-over-year decrease, due mainly to our selected closures of several underperforming leased and owned hotels in operation. Revenue from leased hotels from the Legacy-DH segment in the third quarter of 2024 was RMB1.2 billion, representing an 8.8% year-over-year increase.
Revenue from manachised and franchised hotels in the third quarter of 2024 was RMB2.6 billion (US$371 million), representing a 14.7% year-over-year increase and an 11.5% quarter-over-quarter increase. Revenue from manachised and franchised hotels from the Legacy-Huazhu segment in the third quarter of 2024 was RMB2.6 billion, representing a 14.7% year-over-year increase, driven by our hotel network expansion. Revenue from manachised and franchised hotels from the Legacy-DH segment in the third quarter of 2024 was RMB34 million, representing a 13.3% year-over-year increase.
Other revenue represents revenue generated from businesses other than our hotel operations, which mainly includes revenue from the provision of IT products and services, as well as Huazhu Mall™ and other revenue from the Legacy-DH segment, totaling RMB150 million (US$21 million) in the third quarter of 2024, compared to RMB142 million in the third quarter of 2023 and RMB133 million in the previous quarter.
| (RMB in millions) | Q3 2023 | Q2 2024 | Q3 2024 | |||
| Operating costs and expenses: | ||||||
| Hotel operating costs | (3,613 | ) | (3,731 | ) | (3,799 | ) |
| Other operating costs | (7 | ) | (6 | ) | (11 | ) |
| Selling and marketing expenses | (289 | ) | (317 | ) | (303 | ) |
| General and administrative expenses | (539 | ) | (602 | ) | (672 | ) |
| Pre-opening expenses | (11 | ) | (19 | ) | (19 | ) |
| Total operating costs and expenses | (4,459 | ) | (4,675 | ) | (4,804 | ) |
Hotel operating costs in the third quarter of 2024 were RMB3.8 billion (US$541 million), compared to RMB3.6 billion in the third quarter of 2023 and RMB3.7 billion in the previous quarter. The year-over-year increase was mainly due to rising personnel costs as our hotel network continues to expand. Hotel operating costs from the Legacy-Huazhu segment in the third quarter of 2024 were RMB2.8 billion, which represented 54.3% of the quarter’s Huazhu revenue, compared to RMB2.7 billion or 52.0% of Huazhu revenue in the third quarter of 2023 and RMB2.7 billion or 56.7% in the previous quarter. Hotel operating costs from the Legacy-DH segment in the third quarter of 2024 were RMB996 million, which represented 77.8% of DH revenue, compared to RMB953 million or 81.1% of DH revenue in the third quarter of 2023, and RMB995 million or 75.4% in the previous quarter.
Selling and marketing expenses in the third quarter of 2024 were RMB303 million (US$43 million), compared to RMB289 million in the third quarter of 2023 and RMB317 million in the previous quarter. Selling and marketing expenses from the Legacy-Huazhu segment in the third quarter of 2024 were RMB186 million, which represented 3.6% of this quarter’s Huazhu revenue, compared to RMB177 million or 3.5% of Huazhu revenue in the third quarter of 2023, and RMB193 million or 4.0% for the previous quarter. Selling and marketing expenses from the Legacy-DH segment in the third quarter of 2024 were RMB117 million, which represented 9.1% of revenue, compared to RMB112 million or 9.5% of DH revenue in the third quarter of 2023, and RMB124 million or 9.4% for the previous quarter.
General and administrative expenses in the third quarter of 2024 were RMB672 million (US$96 million), compared to RMB539 million in the third quarter of 2023 and RMB602 million in the previous quarter. General and administrative expenses from the Legacy-Huazhu segment in the third quarter of 2024 were RMB457 million, which represented 8.9% of this quarter’s Huazhu revenue, compared to RMB417 million or 8.2% of Huazhu revenue in the third quarter of 2023 and RMB483 million or 10.0% of Huazhu revenue in the previous quarter. The year-over-year expense increase was mainly due to rising headcount as well as an increase in share-based compensation to attract and retain core employees who are key to our sustainable long-term business growth. General and administrative expenses from the Legacy-DH segment in the third quarter of 2024 were RMB215 million, which represented 16.8% of DH revenue, compared to RMB122 million or 10.4% of DH revenue in the third quarter of 2023 and RMB119 million or 9.0% in the previous quarter. The year-over-year and quarter-over-quarter DH expense increase was primarily due to one-off DH restructuring costs of RMB81 million.
Pre-opening expenses in the third quarter of 2024 were primarily related to the Legacy-Huazhu segment and totaled RMB19 million (US$3 million), compared to RMB11 million in the third quarter of 2023 and RMB19 million in the previous quarter.
Other operating income, net in the third quarter of 2024 was RMB85 million (US$12 million), compared to RMB80 million in the third quarter of 2023 and RMB99 million in the previous quarter.
Income from operations in the third quarter of 2024 was RMB1.7 billion (US$245 million), compared RMB1.9 billion in the third quarter of 2023 and RMB1.6 billion in the previous quarter. Income from operations from the Legacy-Huazhu segment in the third quarter of 2024 was RMB1.8 billion, compared to RMB1.9 billion in the third quarter of 2023 and RMB1.5 billion in the previous quarter. After the one-off restructuring costs of RMB81 million mentioned above, Legacy-DH segment had a loss from operations of RMB40 million in the third quarter of 2024, compared to income of RMB3 million in the third quarter of 2023 and RMB73 million in the previous quarter.
Operating margin, defined as income from operations as a percentage of revenue, was 26.7% in the third quarter of 2024, compared with 30.4% in the third quarter of 2023 and 25.6% for the previous quarter. Operating margin from the Legacy-Huazhu segment in the third quarter of 2024 was 34.2%, compared with 37.3% in the third quarter of 2023 and 31.0% in the previous quarter. The year-over-year margin contraction was mainly due to the decline in hotel RevPAR from a high base last year, and the increase in share-based compensation mentioned above. Operating margin from the Legacy-DH segment in the third quarter of 2024 was a negative 3.1%, compared with a positive 0.3% in the third quarter of 2023 and a positive 5.5% in the previous quarter. The margin contraction was due primarily to the one-off restructuring costs.
Other income, net in the third quarter of 2024 was RMB1 million, compared to RMB24 million in the third quarter of 2023 and RMB24 million in the previous quarter.
Losses from fair value changes of equity securities in the third quarter of 2024 were RMB34 million (US$5 million), compared to RMB9 million in the third quarter of 2023, and RMB51 million in the previous quarter. Losses from fair value changes of equity securities mainly represent the unrealized losses from our investments in equity securities with readily determinable fair values.
Income tax expense in the third quarter of 2024 was RMB382 million (US$54 million), compared to RMB421 million in the third quarter of 2023 and RMB423 million in the previous quarter.
Net income attributable to H World Group Limited in the third quarter of 2024 was RMB1.3 billion (US$181 million), compared with RMB1.3 billion in the third quarter of 2023 and RMB1.1 billion in the previous quarter. Net income attributable to H World Group Limited from the Legacy-Huazhu segment was RMB1.4 billion in the third quarter of 2024, compared with RMB1.4 billion in the third quarter of 2023 and RMB1.0 billion in the previous quarter. Net loss attributable to H World Group Limited from the Legacy-DH segment was RMB83 million, which included RMB81 million of one-off restructuring costs, in the third quarter of 2024, compared with a net loss of RMB37 million in the third quarter of 2023 and a net income of RMB34 million in the previous quarter.
EBITDA (non-GAAP) in the third quarter of 2024 was RMB2.0 billion (US$286 million), compared with RMB2.1 billion in the third quarter of 2023 and RMB1.9 billion in the previous quarter.
Adjusted EBITDA (non-GAAP), which excluded share-based compensation expenses, gain (loss) from fair value changes of equity securities, net foreign exchange gain (loss), and gain (loss) on disposal of investments from EBITDA (non-GAAP), was RMB2.1 billion (US$300 million) in the third quarter of 2024, compared with RMB2.3 billion in the third quarter of 2023 and RMB2.0 billion in the previous quarter. Adjusted EBITDA from the Legacy-Huazhu segment, which is a segment measure, was RMB2.1 billion in the third quarter of 2024, compared with RMB2.3 billion in the third quarter of 2023 and RMB1.9 billion in the previous quarter. Adjusted EBITDA from the Legacy-DH segment, which is a segment measure, was RMB21 million in the third quarter of 2024, compared with RMB73 million in the third quarter of 2023 and RMB131 million in the previous quarter.
To better reflect the profitability of our core business, we have redefined the non-GAAP measure of adjusted EBITDA, and therefore the above adjusted EBITDA for the third quarter of 2023 has been restated.
Cash flow. Operating cash inflow in the third quarter of 2024 was RMB1.7 billion (US$242 million). Investing cash inflow in the third quarter of 2024 was RMB166 million (US$23 million). Financing cash outflow in the third quarter of 2024 was RMB2.1 billion (US$300 million), including RMB1.4 billion of dividends paid.
Cash, cash equivalents and restricted cash. As of September 30, 2024, the Company had a total balance of cash and cash equivalents of RMB7.2 billion (US$1.0 billion) and restricted cash of RMB693 million (US$98 million).
Debt financing. As of September 30, 2024, the Company had a total debt and net cash balance of RMB5.4 billion (US$769 million) and RMB2.5 billion (US$362 million), respectively; the unutilized credit facility available to the Company was RMB3.6 billion.
Guidance
For the fourth quarter of 2024, H World expects its revenue growth to be in the range of 1%-5% compared to the fourth quarter of 2023, and also in the range of 1%-5% excluding DH.
The above forecast reflects the Company’s current and preliminary view, which is subject to change.
Conference Call
H World’s management will host a conference call at 8 p.m. U.S. Eastern time on Tuesday, November 26, 2024 (9 a.m. Hong Kong time on Wednesday, November 27, 2024) following the announcement.
To join by phone, all participants must pre-register this conference call using the Participant Registration link of https://register.vevent.com/register/BI7e6f2fa9b90d4da380448e7718662186. Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN.
A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/fk25qthx or the Company’s website at https://ir.hworld.com/news-and-events/events-calendar.
A replay of the conference call will be available for twelve months from the date of the conference at the Company’s website, https://ir.hworld.com/news-and-events/events-calendar.
Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP“), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission (“SEC“): adjusted net income (loss) attributable to H World Group Limited excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments; adjusted basic and diluted earnings (losses) per share/ADS excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments; EBITDA; adjusted EBITDA excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth at the end of this release. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding Company performance by excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments that may not be indicative of Company operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Company performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. A limitation of using non-GAAP financial measures excluding share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments is that share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments have been and may continue to be significant and recurring in the Company’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that comprise a significant portion of the Company’s cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA information provides investors with a useful tool for comparability between periods because it excludes depreciation and amortization expense attributable to capital expenditures. The Company also uses adjusted EBITDA to assess operating results of its hotels in operation. The Company believes that the exclusion of share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments helps facilitate year-over-year comparisons of the results of operations as the share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments may not be indicative of Company operating performance.
Therefore, the Company believes adjusted EBITDA more closely reflects the financial performance capability of our hotels. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company’s future results will be unaffected by other charges and gains considered to be outside the ordinary course of business.
The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets (including land use rights), income tax, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of depreciation and amortization, interest income, interest expense, income tax expense, share-based compensation expenses, gain (loss) from fair value changes of equity securities, foreign exchange gain (loss), net and gain (loss) on disposal of investments all in the reconciliations to the U.S. GAAP financial measures and in the consolidated financial statements, all of which should be considered when evaluating the performance of the Company.
The terms EBITDA and adjusted EBITDA are not defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing the operating and financial performance, investors should not consider these data in isolation or as a substitute for the Company’s net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company’s EBITDA or adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or adjusted EBITDA in the same manner as the Company does.
Reconciliations of the Company’s non-GAAP financial measures, including EBITDA and adjusted EBITDA, to the consolidated statement of operations information are included at the end of this press release.
About H World Group Limited
Originated in China, H World Group Limited is a key player in the global hotel industry. As of September 30, 2024, H World operated 10,845 hotels with 1,062,546 rooms in operation in 18 countries. H World’s brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels. In addition, H World also has the rights as master franchisee for Mercure, Ibis and Ibis Styles, and co-development rights for Grand Mercure and Novotel, in the pan-China region.
H World’s business includes leased and owned, manachised and franchised models. Under the lease and ownership model, H World directly operates hotels typically located on leased or owned properties. Under the manachise model, H World manages manachised hotels through the on-site hotel managers that H World appoints, and H World collects fees from franchisees. Under the franchise model, H World provides training, reservations and support services to the franchised hotels, and collects fees from franchisees but does not appoint on-site hotel managers. H World applies a consistent standard and platform across all of its hotels. As of September 30, 2024, H World operated 9 percent of its hotel rooms under the lease and ownership model, and 91 percent under the manachise and franchise model.
For more information, please visit H World’s website: https://ir.hworld.com.
Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; economic conditions; the regulatory environment; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.
H World undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
—Financial Tables and Operational Data—
| H World Group Limited | |||||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||||
| December 31, 2023 |
September 30, 2024 |
||||||||
| RMB | RMB |
US$3 |
|||||||
| (in millions) | |||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | 6,946 | 7,247 | 1,033 | ||||||
| Restricted cash | 764 | 693 | 98 | ||||||
| Short-term investments | 2,189 | 735 | 105 | ||||||
| Accounts receivable, net | 755 | 863 | 123 | ||||||
| Loan receivables, net | 184 | 149 | 21 | ||||||
| Amounts due from related parties, current | 210 | 276 | 39 | ||||||
| Inventories | 59 | 63 | 9 | ||||||
| Other current assets, net | 949 | 856 | 122 | ||||||
| Total current assets | 12,056 | 10,882 | 1,550 | ||||||
| Property and equipment, net | 6,097 | 5,971 | 851 | ||||||
| Intangible assets, net | 5,280 | 5,302 | 756 | ||||||
| Operating lease right-of-use assets | 25,658 | 25,691 | 3,661 | ||||||
| Finance lease right-of-use assets | 2,171 | 2,306 | 329 | ||||||
| Land use rights, net | 181 | 176 | 25 | ||||||
| Long-term investments | 2,564 | 2,427 | 346 | ||||||
| Goodwill | 5,318 | 5,309 | 756 | ||||||
| Amounts due from related parties, non-current | 25 | 26 | 4 | ||||||
| Loan receivables, net | 163 | 180 | 26 | ||||||
| Other assets, net | 663 | 689 | 97 | ||||||
| Deferred tax assets | 1,043 | 1,031 | 147 | ||||||
| Assets held for sale | 2,313 | 2,049 | 292 | ||||||
| Total assets | 63,532 | 62,039 | 8,840 | ||||||
| LIABILITIES AND EQUITY | |||||||||
| Current liabilities: | |||||||||
| Short-term debt | 4,049 | 892 | 128 | ||||||
| Accounts payable | 1,019 | 1,026 | 146 | ||||||
| Amounts due to related parties | 77 | 90 | 13 | ||||||
| Salary and welfare payables | 1,067 | 719 | 102 | ||||||
| Deferred revenue | 1,637 | 1,812 | 258 | ||||||
| Operating lease liabilities, current | 3,609 | 3,483 | 496 | ||||||
| Finance lease liabilities, current | 45 | 50 | 7 | ||||||
| Accrued expenses and other current liabilities | 3,261 | 3,394 | 484 | ||||||
| Dividends payable | 2,085 | 0 | 0 | ||||||
| Income tax payable | 562 | 942 | 134 | ||||||
| Total current liabilities | 17,411 | 12,408 | 1,768 | ||||||
| Long-term debt | 1,265 | 4,499 | 641 | ||||||
| Operating lease liabilities, non-current | 24,215 | 24,240 | 3,454 | ||||||
| Finance lease liabilities, non-current | 2,697 | 2,886 | 411 | ||||||
| Deferred revenue | 1,072 | 1,285 | 183 | ||||||
| Other long-term liabilities | 1,118 | 1,387 | 199 | ||||||
| Deferred tax liabilities | 845 | 817 | 116 | ||||||
| Retirement benefit obligations | 124 | 122 | 17 | ||||||
| Liabilities held for sale | 2,536 | 2,179 | 311 | ||||||
| Total liabilities | 51,283 | 49,823 | 7,100 | ||||||
| Equity: | |||||||||
| Ordinary shares | 0 | 0 | 0 | ||||||
| Treasury shares | (906 | ) | (2,787 | ) | (397 | ) | |||
| Additional paid-in capital | 11,861 | 12,060 | 1,718 | ||||||
| Retained earnings | 794 | 2,400 | 342 | ||||||
| Accumulated other comprehensive income | 386 | 459 | 65 | ||||||
| Total H World Group Limited shareholders’ equity | 12,135 | 12,132 | 1,728 | ||||||
| Noncontrolling interest | 114 | 84 | 12 | ||||||
| Total equity | 12,249 | 12,216 | 1,740 | ||||||
| Total liabilities and equity | 63,532 | 62,039 | 8,840 | ||||||
| H World Group Limited | |||||||||||
| Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||||||||
| Quarter Ended | |||||||||||
| September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
|||||||||
| RMB |
RMB |
RMB |
US$ |
||||||||
| (in millions, except shares, per share and per ADS data) | |||||||||||
| Revenue: | |||||||||||
| Leased and owned hotels | 3,878 | 3,681 | 3,690 | 526 | |||||||
| Manachised and franchised hotels | 2,268 | 2,334 | 2,602 | 371 | |||||||
| Others | 142 | 133 | 150 | 21 | |||||||
| Total revenue | 6,288 | 6,148 | 6,442 | 918 | |||||||
| Operating costs and expenses: | |||||||||||
| Hotel operating costs: | |||||||||||
| Rents | (1,118 | ) | (1,091 | ) | (1,088 | ) | (155 | ) | |||
| Utilities | (185 | ) | (149 | ) | (194 | ) | (28 | ) | |||
| Personnel costs | (1,186 | ) | (1,337 | ) | (1,371 | ) | (195 | ) | |||
| Depreciation and amortization | (330 | ) | (315 | ) | (315 | ) | (45 | ) | |||
| Consumables, food and beverage | (353 | ) | (327 | ) | (337 | ) | (48 | ) | |||
| Others | (441 | ) | (512 | ) | (494 | ) | (70 | ) | |||
| Total hotel operating costs | (3,613 | ) | (3,731 | ) | (3,799 | ) | (541 | ) | |||
| Other operating costs | (7 | ) | (6 | ) | (11 | ) | (2 | ) | |||
| Selling and marketing expenses | (289 | ) | (317 | ) | (303 | ) | (43 | ) | |||
| General and administrative expenses | (539 | ) | (602 | ) | (672 | ) | (96 | ) | |||
| Pre-opening expenses | (11 | ) | (19 | ) | (19 | ) | (3 | ) | |||
| Total operating costs and expenses | (4,459 | ) | (4,675 | ) | (4,804 | ) | (685 | ) | |||
| Other operating income (expense), net | 80 | 99 | 85 | 12 | |||||||
| Income (loss) from operations | 1,909 | 1,572 | 1,723 | 245 | |||||||
| Interest income | 62 | 56 | 50 | 7 | |||||||
| Interest expense | (85 | ) | (84 | ) | (77 | ) | (11 | ) | |||
| Other income (expense), net | 24 | 24 | 1 | 0 | |||||||
| Gains (losses) from fair value changes of equity securities | (9 | ) | (51 | ) | (34 | ) | (5 | ) | |||
| Foreign exchange gains (losses) | (148 | ) | (24 | ) | (1 | ) | (0 | ) | |||
| Income (loss) before income taxes | 1,753 | 1,493 | 1,662 | 236 | |||||||
| Income tax (expense) benefit | (421 | ) | (423 | ) | (382 | ) | (54 | ) | |||
| Income (Loss) from equity method investments | 20 | 12 | 12 | 2 | |||||||
| Net income (loss) | 1,352 | 1,082 | 1,292 | 184 | |||||||
| Net (income) loss attributable to noncontrolling interest | (15 | ) | (15 | ) | (19 | ) | (3 | ) | |||
| Net income (loss) attributable to H World Group Limited | 1,337 | 1,067 | 1,273 | 181 | |||||||
| Gains(losses) from fair value changes of debt securities, net of tax | – | (25 | ) | – | – | ||||||
| Foreign currency translation adjustments, net of tax | (24 | ) | 1 | 128 | 18 | ||||||
| Comprehensive income (loss) | 1,328 | 1,058 | 1,420 | 202 | |||||||
| Comprehensive (income) loss attributable to noncontrolling interest | (15 | ) | (15 | ) | (19 | ) | (3 | ) | |||
| Comprehensive income (loss) attributable to H World Group Limited | 1,313 | 1,043 | 1,401 | 199 | |||||||
| Earnings (Losses) per share: | |||||||||||
| Basic | 0.42 | 0.34 | 0.41 | 0.06 | |||||||
| Diluted | 0.41 | 0.33 | 0.40 | 0.06 | |||||||
| Earnings (Losses) per ADS: | |||||||||||
| Basic | 4.19 | 3.40 | 4.10 | 0.58 | |||||||
| Diluted | 4.07 | 3.32 | 3.99 | 0.57 | |||||||
| Weighted average number of shares used in computation: | |||||||||||
| Basic | 3,188,274,127 | 3,137,722,145 | 3,102,868,424 | 3,102,868,424 | |||||||
| Diluted | 3,355,586,429 | 3,303,934,814 | 3,257,589,866 | 3,257,589,866 | |||||||
| H World Group Limited | |||||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||
| Quarter Ended | |||||||||||
| September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
|||||||||
| RMB |
RMB |
RMB |
US$ | ||||||||
| (in millions) | |||||||||||
| Operating activities: | |||||||||||
| Net income (loss) | 1,352 | 1,082 | 1,292 | 184 | |||||||
| Share-based compensation | 44 | 112 | 79 | 11 | |||||||
| Depreciation and amortization, and other | 358 | 337 | 329 | 47 | |||||||
| Impairment loss | 5 | 36 | 32 | 5 | |||||||
| Loss (Income) from equity method investments, net of dividends | (18 | ) | 30 | (9 | ) | (1 | ) | ||||
| Investment (income) loss and foreign exchange (gain) loss | 167 | 41 | (15 | ) | (2 | ) | |||||
| Changes in operating assets and liabilities | (583 | ) | 750 | 43 | 6 | ||||||
| Other | (144 | ) | (153 | ) | (58 | ) | (8 | ) | |||
| Net cash provided by (used in) operating activities | 1,181 | 2,235 | 1,693 | 242 | |||||||
| Investing activities: | |||||||||||
| Capital expenditures | (196 | ) | (203 | ) | (209 | ) | (30 | ) | |||
| Purchase of investments | (1,846 | ) | (632 | ) | (32 | ) | (5 | ) | |||
| Proceeds from maturity/sale and return of investments | – | 1,139 | 406 | 58 | |||||||
| Loan advances | (48 | ) | (12 | ) | (75 | ) | (11 | ) | |||
| Loan collections | 39 | 53 | 65 | 9 | |||||||
| Other | 2 | 1 | 11 | 2 | |||||||
| Net cash provided by (used in) investing activities | (2,049 | ) | 346 | 166 | 23 | ||||||
| Financing activities: | |||||||||||
| Payment of share repurchase | – | (132 | ) | (496 | ) | (71 | ) | ||||
| Proceeds from debt | 71 | 53 | 29 | 4 | |||||||
| Repayment of debt | (666 | ) | (292 | ) | (135 | ) | (19 | ) | |||
| Dividend paid | – | – | (1,389 | ) | (198 | ) | |||||
| Purchase of prepaid put option | – | (710 | ) | 0 | 0 | ||||||
| Other | (18 | ) | (24 | ) | (113 | ) | (16 | ) | |||
| Net cash provided by (used in) financing activities | (613 | ) | (1,105 | ) | (2,104 | ) | (300 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (59 | ) | 10 | 16 | 2 | ||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (1,540 | ) | 1,486 | (229 | ) | (33 | ) | ||||
| Less: net increase (decrease) in cash and cash equivalents classified within assets held for sale | – | (15 | ) | (4 | ) | (1 | ) | ||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 7,836 | 6,664 | 8,165 | 1,163 | |||||||
| Cash, cash equivalents and restricted cash at the end of the period | 6,296 | 8,165 | 7,940 | 1,131 | |||||||
| H World Group Limited | |||||||||||
| Unaudited Reconciliation of GAAP and Non-GAAP Results | |||||||||||
| Quarter Ended | |||||||||||
| September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
|||||||||
| RMB |
RMB |
RMB |
US$ | ||||||||
| (in millions, except shares, per share and per ADS data) | |||||||||||
| Net income (loss) attributable to H World Group Limited (GAAP) | 1,337 | 1,067 | 1,273 | 181 | |||||||
| Share-based compensation expenses | 44 | 112 | 79 | 11 | |||||||
| (Gain) loss from fair value changes of equity securities | 9 | 51 | 34 | 5 | |||||||
| Foreign exchange (gain) loss, net | 148 | 24 | 1 | 0 | |||||||
| (Gain) loss on disposal of investments | – | – | (15 | ) | (2 | ) | |||||
| Adjusted net income attributable to H World Group Limited (non-GAAP) | 1,538 | 1,254 | 1,372 | 195 | |||||||
| Adjusted earnings (losses) per share (non-GAAP) | |||||||||||
| Basic | 0.48 | 0.40 | 0.44 | 0.06 | |||||||
| Diluted | 0.47 | 0.39 | 0.43 | 0.06 | |||||||
| Adjusted earnings (losses) per ADS (non-GAAP) | |||||||||||
| Basic | 4.82 | 3.99 | 4.42 | 0.63 | |||||||
| Diluted | 4.67 | 3.88 | 4.29 | 0.61 | |||||||
| Weighted average number of shares used in computation | |||||||||||
| Basic | 3,188,274,127 | 3,137,722,145 | 3,102,868,424 | 3,102,868,424 | |||||||
| Diluted | 3,355,586,429 | 3,303,934,814 | 3,257,589,866 | 3,257,589,866 | |||||||
| Quarter Ended | |||||||||||
| September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
|||||||||
| RMB | RMB | RMB | US$ | ||||||||
| (in millions, except per share and per ADS data) | |||||||||||
| Net income (loss) attributable to H World Group Limited (GAAP) | 1,337 | 1,067 | 1,273 | 181 | |||||||
| Interest income | (62 | ) | (56 | ) | (50 | ) | (7 | ) | |||
| Interest expense | 85 | 84 | 77 | 11 | |||||||
| Income tax expense | 421 | 423 | 382 | 54 | |||||||
| Depreciation and amortization | 352 | 335 | 332 | 47 | |||||||
| EBITDA (non-GAAP) | 2,133 | 1,853 | 2,014 | 286 | |||||||
| Share-based compensation | 44 | 112 | 79 | 11 | |||||||
| (Gain) loss from fair value changes of equity securities | 9 | 51 | 34 | 5 | |||||||
| Foreign exchange (gain) loss, net | 148 | 24 | 1 | 0 | |||||||
| (Gain) loss on disposal of investments | – | – | (15 | ) | (2 | ) | |||||
| Adjusted EBITDA (non-GAAP) | 2,334 | 2,040 | 2,113 | 300 | |||||||
| H World Group Limited | |||||||||||
| Segment Financial Summary | |||||||||||
| Quarter Ended September 30, 2023 |
Quarter Ended June 30, 2024 |
Quarter Ended September 30, 2024 |
|||||||||
| Legacy- Huazhu | Legacy- DH | Legacy- Huazhu | Legacy- DH | Legacy- Huazhu | Legacy- DH | ||||||
| RMB | RMB | RMB | RMB | RMB | RMB | ||||||
| (in millions) | (in millions) | (in millions) | |||||||||
| Leased and owned hotels | 2,748 | 1,130 | 2,395 | 1,286 | 2,461 | 1,229 | |||||
| Manachised and franchised hotels | 2,238 | 30 | 2,305 | 29 | 2,568 | 34 | |||||
| Others | 127 | 15 | 128 | 5 | 133 | 17 | |||||
| Revenue | 5,113 | 1,175 | 4,828 | 1,320 | 5,162 | 1,280 | |||||
| Depreciation and amortization | 286 | 66 | 279 | 56 | 271 | 61 | |||||
| Adjusted EBITDA | 2,261 | 73 | 1,909 | 131 | 2,092 | 21 | |||||
Operating Results: Legacy-Huazhu(1)
| Number of hotels | Number of rooms | |||||||
| Opened in Q3 2024 |
Closed (2) in Q3 2024 |
Net added in Q3 2024 |
As of September 30, 2024 |
As of September 30, 2024 |
||||
| Leased and owned hotels | 3 | (25 | ) | (22 | ) | 570 | 83,861 | |
| Manachised and franchised hotels | 771 | (192 | ) | 579 | 10,137 | 950,998 | ||
| Total | 774 | (217 | ) | 557 | 10,707 | 1,034,859 | ||
| (1) Legacy-Huazhu refers to H World and its subsidiaries, excluding DH. (2) The reasons for hotel closures mainly included non-compliance with our brand standards, operating losses, and property-related issues. In Q3 2024, we temporarily closed 12 hotels for brand upgrade or business model change purposes. |
||||||||
| As of September 30, 2024 | ||
| Number of hotels | Unopened hotels in pipeline | |
| Economy hotels | 5,442 | 1,082 |
| Leased and owned hotels | 292 | 0 |
| Manachised and franchised hotels | 5,150 | 1,082 |
| Midscale, upper-midscale hotels and others | 5,265 | 1,817 |
| Leased and owned hotels | 278 | 6 |
| Manachised and franchised hotels | 4,987 | 1,811 |
| Total | 10,707 | 2,899 |
| For the quarter ended | ||||||||
| September 30, | June 30, | September 30, | yoy | |||||
| 2023 | 2024 | 2024 | change | |||||
| Average daily room rate (in RMB) | ||||||||
| Leased and owned hotels | 406 | 375 | 381 | -6.0 | % | |||
| Manachised and franchised hotels | 314 | 288 | 294 | -6.4 | % | |||
| Blended | 324 | 296 | 301 | -7.0 | % | |||
| Occupancy rate (as a percentage) | ||||||||
| Leased and owned hotels | 87.8 | % | 85.6 | % | 87.4 | % | -0.3 p.p. | |
| Manachised and franchised hotels | 85.7 | % | 82.3 | % | 84.6 | % | -1.0 p.p. | |
| Blended | 85.9 | % | 82.6 | % | 84.9 | % | -1.0 p.p. | |
| RevPAR (in RMB) | ||||||||
| Leased and owned hotels | 356 | 321 | 333 | -6.4 | % | |||
| Manachised and franchised hotels | 269 | 237 | 249 | -7.6 | % | |||
| Blended | 278 | 244 | 256 | -8.1 | % | |||
| Same-hotel operational data by class | |||||||||||||||
| Mature hotels in operation for more than 18 months | |||||||||||||||
| Number of hotels | Same-hotel RevPAR | Same-hotel ADR | Same-hotel Occupancy | ||||||||||||
| As of September 30, |
For the quarter | yoy | For the quarter | yoy | For the quarter | yoy | |||||||||
| ended September 30, |
change | ended September 30, |
change | ended September 30, |
change | ||||||||||
| 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | (p.p.) | |||||||
| Economy hotels | 3,764 | 3,764 | 222 | 197 | -11.0 | % | 250 | 228 | -8.8 | % | 88.5 | % | 86.4 | % | -2.1 |
| Leased and owned hotels | 283 | 283 | 271 | 242 | -10.7 | % | 302 | 271 | -10.3 | % | 89.8 | % | 89.4 | % | -0.4 |
| Manachised and franchised hotels | 3,481 | 3,481 | 216 | 192 | -11.0 | % | 244 | 223 | -8.6 | % | 88.4 | % | 86.0 | % | -2.4 |
| Midscale, upper-midscale hotels and others | 3,271 | 3,271 | 344 | 310 | -9.9 | % | 398 | 365 | -8.3 | % | 86.4 | % | 84.9 | % | -1.5 |
| Leased and owned hotels | 257 | 257 | 440 | 402 | -8.6 | % | 506 | 465 | -8.0 | % | 87.0 | % | 86.4 | % | -0.6 |
| Manachised and franchised hotels | 3,014 | 3,014 | 331 | 298 | -10.1 | % | 384 | 351 | -8.4 | % | 86.4 | % | 84.7 | % | -1.6 |
| Total | 7,035 | 7,035 | 288 | 258 | -10.3 | % | 329 | 301 | -8.4 | % | 87.4 | % | 85.6 | % | -1.8 |
Operating Results: Legacy-DH(3)
| Number of hotels | Number of rooms | Unopened hotels in pipeline | ||||||||
| Opened in Q3 2024 |
Closed in Q3 2024 |
Net added in Q3 2024 |
As of September 30, 2024(4) |
As of September 30, 2024 |
As of September 30, 2024 |
|||||
| Leased hotels | – | (10 | ) | (10 | ) | 77 | 15,700 | 12 | ||
| Manachised and franchised hotels | 16 | (4 | ) | 12 | 61 | 11,987 | 14 | |||
| Total | 16 | (14 | ) | 2 | 138 | 27,687 | 26 | |||
| (3) Legacy-DH refers to DH. (4) As of September 30, 2024, a total of 2 hotels were temporarily closed due to repair work. |
||||||||||
| For the quarter ended | ||||||||
| September 30, | June 30, | September 30, | yoy | |||||
| 2023 | 2024 | 2024 | change | |||||
| Average daily room rate (in EUR) | ||||||||
| Leased hotels | 113 | 124 | 118 | 4.3 | % | |||
| Manachised and franchised hotels | 116 | 112 | 116 | -0.1 | % | |||
| Blended | 114 | 120 | 117 | 2.5 | % | |||
| Occupancy rate (as a percentage) | ||||||||
| Leased hotels | 71.4 | % | 71.2 | % | 72.2 | % | +0.8 p.p. | |
| Manachised and franchised hotels | 65.5 | % | 63.8 | % | 66.6 | % | +1.1 p.p. | |
| Blended | 69.0 | % | 68.3 | % | 69.8 | % | +0.8 p.p. | |
| RevPAR (in EUR) | ||||||||
| Leased hotels | 81 | 88 | 85 | 5.4 | % | |||
| Manachised and franchised hotels | 76 | 72 | 77 | 1.6 | % | |||
| Blended | 79 | 82 | 82 | 3.7 | % | |||
Hotel Portfolio by Brand
| As of September 30, 2024 | |||
| Hotels | Rooms | Unopened hotels | |
| in operation | in pipeline | ||
| Economy hotels | 5,461 | 449,937 | 1,091 |
| HanTing Hotel | 4,057 | 355,690 | 695 |
| Hi Inn | 551 | 28,987 | 237 |
| Ni Hao Hotel | 393 | 29,712 | 135 |
| Elan Hotel | 215 | 11,290 | – |
| Ibis Hotel | 226 | 22,013 | 15 |
| Zleep Hotels | 19 | 2,245 | 9 |
| Midscale hotels | 4,344 | 465,743 | 1,238 |
| Ibis Styles Hotel | 107 | 10,456 | 10 |
| Starway Hotel | 723 | 60,381 | 125 |
| JI Hotel | 2,708 | 309,659 | 827 |
| Orange Hotel | 806 | 85,247 | 276 |
| Upper midscale hotels | 866 | 119,356 | 493 |
| Crystal Orange Hotel | 224 | 28,288 | 152 |
| CitiGO Hotel | 34 | 5,283 | 5 |
| Manxin Hotel | 162 | 14,970 | 69 |
| Madison Hotel | 125 | 15,976 | 82 |
| Mercure Hotel | 190 | 30,093 | 61 |
| Novotel Hotel | 30 | 6,743 | 21 |
| IntercityHotel(5) | 91 | 16,389 | 97 |
| MAXX(6) | 10 | 1,614 | 6 |
| Upscale hotels | 147 | 21,693 | 95 |
| Jaz in the City | 3 | 587 | 1 |
| Joya Hotel | 7 | 1,234 | 1 |
| Blossom House | 73 | 3,455 | 80 |
| Grand Mercure Hotel | 9 | 1,796 | 1 |
| Steigenberger Hotels & Resorts(7) | 55 | 14,621 | 12 |
| Luxury hotels | 16 | 2,368 | 3 |
| Steigenberger Icon(8) | 9 | 1,847 | 2 |
| Song Hotels | 7 | 521 | 1 |
| Others | 11 | 3,449 | 5 |
| Other hotels(9) | 11 | 3,449 | 5 |
| Total | 10,845 | 1,062,546 | 2,925 |
| (5) As of September 30, 2024, 33 operational hotels and 92 pipeline hotels of IntercityHotel were in China. (6) As of September 30, 2024, 5 operational hotels and 5 pipeline hotels of MAXX were in China. (7) As of September 30, 2024, 12 operational hotels and 5 pipeline hotels of Steigenberger Hotels & Resorts were in China. (8) As of September 30, 2024, 3 operational hotels and 1 pipeline hotel of Steigenberger Icon were in China. (9) Other hotels include other partner hotels and other hotel brands in Yongle Huazhu Hotel & Resort Group (excluding Steigenberger Hotels & Resorts and Blossom House). |
|||
1 Hotel turnover refers to total transaction value of room and non-room revenue from H World hotels (i.e., leased and operated, manachised and franchised hotels).
2 The conversion of Renminbi (“RMB“) into United States dollars (“US$“) is based on the exchange rate of US$1.00=RMB7.0176 on September 30, 2024, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
3 The conversion of Renminbi (“RMB“) into United States dollars (“US$“) is based on the exchange rate of US$1.00=RMB7.0176 on September 30, 2024, as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
Contact Information
Investor Relations
Tel: +86 (21) 6195 9561
Email: ir@hworld.com
https://ir.hworld.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cheche Group Reports Third Quarter 2024 Unaudited Financial Results
BEIJING, Nov. 26, 2024 /PRNewswire/ — Cheche Group Inc. CCG (“Cheche”, the “Company” or “we”), China’s leading auto insurance technology platform, today announced its unaudited financial results for the third quarter ended September 30, 2024.
Financial and Operational Highlights
- Net Revenues for the quarter increased 3.3% year-over-year to RMB850.5 million (US$121.2 million), while net revenues for the first nine months of 2024 increased 2.3% over the comparable prior year period to RMB2.5 billion (US$354.8 million).
- Net Income for the quarter was RMB4.1 million (US$0.6 million), compared to a net loss of RMB55.4 million for the prior-year quarter, while net loss for the first nine months of 2024 decreased 60.2% to RMB50.8 million (US$7.2 million) over the prior-year period.
- Adjusted Net Income (1) for the quarter was RMB2.6 million (US$0.4 million), compared to an adjusted net loss of RMB0.6 million for the prior-year quarter, while adjusted net loss for the first nine months of 2024 decreased 23.0% to RMB21.8 million (US$3.1 million), compared to the prior-year period.
- Total written premiums placed for the quarter increased 4.0% to RMB5.9 billion (US$0.8 billion) compared to the prior-year period, while total written premiums placed for the first nine months of 2024 increased 4.1% over the comparable prior-year period to RMB16.9 billion (US$2.4 billion).
- Total number of policies issued for the quarter increased 5.0% to 4.2 million from 4.0 million for the prior-year quarter, while the total number of policies issued over the first nine months of 2024 increased 11.9% over the comparable prior-year period to 12.2 million.
- Partnerships with New Energy Vehicle (NEV) companies (2) numbered 14 in the quarter and led to 292,000 embedded policies with corresponding written premium of RMB884.2 million (US$126.0 million), representing an increase of 149.6% and 121.6 % compared to the prior-year quarter, respectively. Embedded policies and corresponding written premium for the first nine months of 2024 reached 636,000 and RMB1.9 billion (US$273.2 million), respectively, representing growth of 144.6 % for policies embedded and 104.2% for written premium compared to the prior-year period.
|
(1) Adjusted Net Loss/Income is a non-GAAP measure. For further information on the non-GAAP financial measures presented above, see the “Non-GAAP Financial Measures” section below. (2) The rapid growth of the NEV market has created new opportunities for auto insurance offerings and propelled revenue growth of auto insurance providers. Cheche started collaborating with NEV manufacturers in 2022, which yielded considerable results in 2023. Cheche believes that the further development of the NEV market and the introduction of innovative NEV auto insurance solutions will further fuel the revenue contribution of its partnership with NEV manufacturers. The management of Cheche utilizes the number of partnerships with NEV manufacturers, the number of insurance policies embedded in the new NEV deliveries, and the number of corresponding premiums generated from such embedded policies as the primary operating metrics to evaluate its business. It presents such operating metrics for investors to better understand and assess Cheche’s business. |
Management Comments
“We are proud to announce that Cheche reported net income profitability for the first time on both a GAAP and adjusted net income basis. This quarter’s milestone substantiates the merit of our business model and the growing conviction in our value proposition,” said Lei Zhang, Founder, CEO, and Chairman of Cheche Group. “We continue to work with both NEV manufacturers and insurers to leverage advanced data analysis, delivering tools that will reward responsible drivers, reduce fraud, and bring efficiencies to claims processing to support profitability, transparency, and affordability as the transition to automated mobility accelerates.
Mr. Zhang continued, “With China producing 48% more NEVs in September over the prior year, according to China Association of Automobile Manufacturers, and NEV sales again surpassing traditional fuel car sales in the same month, our innovative platform will continue to meet the evolving insurance needs of car owners, manufacturers, and insurers.”
Unaudited Third Quarter 2024 Financial Results
Net Revenues were RMB850.5 million (US$121.2 million), representing a 3.3% year-over-year increase from the prior-year quarter. The growth was driven by increased insurance transactions conducted through Cheche’s platform by referral and third-party platform partners.
Cost of Revenues increased 3.0% year-over-year to RMB808.1 million (US$115.2 million) from the prior-year quarter, consistent with the growth of business volume and net revenues.
Selling and Marketing Expenses decreased 53.6% to RMB18.1 million (US$2.6 million) from RMB39.0 million in the prior-year quarter, mainly due to the decrease in share-based compensation expenses and staff cost. Excluding share-based compensation expenses, selling and marketing expenses were RMB17.4 million (US$2.5 million), a decrease of 6.5% compared to the prior-year quarter.
General and Administrative Expenses decreased 41.3% to RMB20.4 million (US$2.9 million) from RMB34.8 million for the prior-year quarter, mainly due to the decrease in share-based compensation and professional service fees. Excluding share-based compensation and listing-related professional service fees, general and administrative expenses increased by RMB3.5 million from RMB15.0 million to RMB18.5 million (US$2.6 million), primarily due to the increase of post-listing professional service fees.
Research and Development Expenses decreased 24.5% to RMB10.2 million (US$1.4 million) from RMB13.5 million in the prior-year quarter. The change was mainly due to decreased share-based compensation expenses, partially offset by the increase of staff costs. Excluding share-based compensation expenses, research and development expenses decreased 8.8% to RMB9.8 million (US$1.4 million) from RMB10.8 million in the prior-year quarter.
Total Cost and Operating Expenses decreased by 1.8% to RMB856.8 million (US$122.1 million) from RMB872.0 million in the prior-year quarter, mainly due to the increased cost of revenues and the decrease in share-based compensation expenses. Excluding share-based compensation expenses, amortization of intangible assets related to the acquisition and listing-related professional service fees, total cost and operating expenses increased by 3.0% from the prior-year quarter.
Net Income for the quarter was RMB4.1 million (US$0.6 million), compared to a net loss of RMB55.4 million for the prior-year quarter. Excluding non-GAAP expenses, the Adjusted Net Income (1) for the quarter was RMB2.6 million (US$0.4 million), due to the improvement of operating results and the positive impact from foreign exchange rates, compared to an adjusted net loss of RMB0.6 million for the prior-year quarter.
Net Income attributable to Cheche’s shareholders was RMB4.1 million (US$0.6 million), compared to a net loss attributable to Cheche’s shareholders of RMB707.6 million for the prior-year quarter.
Adjusted Net Income attributable to Cheche’s shareholders was RMB2.6 million (US$0.4 million), compared to an adjusted net loss attributable to Cheche’s shareholders of RMB652.7 million for the prior-year quarter.
Net Income Per Share, basic and diluted, was RMB0.05 (US$0.01), compared to a net loss per share of RMB17.52, basic and diluted, for the prior-year quarter.
Adjusted Net Income Per Share, basic and diluted, was RMB0.03 (US$0.00), compared to an adjusted net loss per share of RMB16.16, basic and diluted, for the prior-year quarter.
3Q24 and Subsequent Business Highlights
- On September 3, 2024, Cheche announced a partnership with Shanghai Jidu Automobile Company Limited (“JI YUE“) to further diversify its partner network with leaders in the NEV industry. Cheche successfully launched a system for JI YUE, creating channels for online and offline purchasing of auto and non-auto insurance products. The system is integrated into Cheche’s core platform and is equipped with resources to grow and strengthen JI YUE’s sales channels and enhance account settlement capabilities, among other functionalities.
- On September 12, 2024, Cheche announced a partnership with Laoyou Insurance Brokerage Co., Ltd. (“Laoyou Insurance”), a wholly controlled subsidiary of Great Wall Motor Company Limited (“GWM”), a top ten Chinese auto manufacturer. Cheche’s insurance solutions and mature transaction system have been gradually rolled out with GWM’s newly established direct-sales network in more than 20 cities nationwide. Cheche plans to develop a comprehensive insurance solution tailored for traditional automakers within one to two years.
- On October 1, 2024, Cheche announced a strategic partnership with The Tokio Marine & Nichido Fire Insurance Company (China) Limited (“TMNCH”), as Cheche continues to broaden its collaborations with insurance companies in China. Leveraging each other’s strengths, the two companies are working to develop specialized insurance products, services, and sales strategies. Cheche’s agreement with TMNCH is two pronged. This collaboration will enhance Cheche’s insurance service capabilities while offering increased scale for traditional automotive companies and pave the way for future partnerships with Japanese automotive companies.
Balance Sheet
As of September 30, 2024, the Company had RMB194.6 million (US$27.7 million) in total cash, cash equivalents and short-term investments.
Business Outlook
Cheche is affirming its full-year 2024 outlook:
- Net Revenues are expected to range from RMB3.5 billion to RMB3.7 billion, representing an increase of 6.1% to 12.1%, compared to the full year of 2023.
- Total written premiums placed are expected to range from RMB24.5 billion to RMB26.5 billion, representing an increase of 8.4% to 17.3%, compared to the full year of 2023.
Conference Call
Cheche will host a webcast and conference call to discuss its third quarter 2024 results today at 8:00 a.m. EST. This earnings release and a related investor deck will be available prior to the event in the “Quarterly Results” section under “Financials,” while the live webcast will be available in the “Events” section under the “News & Events” header on the investor relations website at ir.chechegroup.com.
The dial-in numbers for the conference call will be as follows:
- Participant (toll-free): 1-888-346-8982
- Participant (international): 1-412-902-4272
- Hong Kong LT: 852-301-84992
- Hong Kong Toll Free: 800-905945
- China Toll-Free: 4001-201203
Please dial in 10 to 15 minutes before the scheduled start time and request Cheche’s third quarter earnings call.
A webcast replay will be available for one year following the call.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the reader’s convenience. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referenced could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.
About Cheche Group Inc.
Established in 2014 and headquartered in Beijing, China, Cheche is a leading auto insurance technology platform with a nationwide network of around 108 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China. Capitalizing on its leading position in auto insurance transaction services, Cheche has evolved into a comprehensive, data-driven technology platform that offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions in China. Learn more at https://www.chechegroup.com/en.
Cheche Group Inc.:
Crocker Coulson
crocker.coulson@aummedia.org
(646) 652-7185
Non-GAAP Financial Measures
Cheche has provided non-GAAP financial measures in this press release that have not been prepared in accordance with generally accepted accounting principles (GAAP) in the United States.
Cheche uses adjusted cost of revenues, adjusted selling and marketing expenses, adjusted general and administrative expenses, adjusted research and development expenses, adjusted total cost and operating expenses, adjusted net loss/income, and adjusted net loss/income per share, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes.
Cheche defines adjusted total cost and operating expenses as total cost and operating expenses adjusted for the impact of share-based compensation, amortization of intangible assets related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), listing-related professional service fees and dispute resolution expenses, representing expenses Cheche incurred in a dispute with a certain security holder. Cheche defines adjusted net loss/income as net loss/income adjusted for the impact of share-based compensation expenses, amortization of intangible assets, and changes in fair value of amounts due to a related party related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), change in fair value of warrants, listing related professional service fees and dispute resolution expenses. Adjusted net loss/income per share, basic and diluted, is calculated as adjusted net loss/income divided by weighted-average ordinary shares outstanding.
Cheche believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the impact of share-based compensation expenses, amortization of intangible assets related to acquisition, and change in fair value of amounts due to a related party associated with the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), change in fair value of warrants, and listing related professional service fees and dispute resolution expenses. Cheche believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects, and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP nor presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss /income or any other measure of performance or as an indicator of Cheche’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Cheche encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Cheche mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance.
Safe Harbor Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements also include, but are not limited to, statements regarding projections, estimations, and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, the Company’s advantages and expected growth, and its ability to source and retain talent, as applicable. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management and are not predictions of actual performance. These statements involve risks, uncertainties, and other factors that may cause the Company’s actual results, activity levels, performance, or achievements to materially differ from those expressed or implied by these forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. The forward-looking statements in this press release represent the views of the Company as of the date of this press release. Subsequent events and developments may cause those views to change. Except as may be required by law, the Company does not undertake any duty to update these forward-looking statements.
|
Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share |
|||||
|
December 31, |
September 30, |
September 30, |
|||
|
2023 |
2024 |
2024 |
|||
|
RMB |
RMB |
USD |
|||
|
ASSETS |
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
243,392 |
131,110 |
18,683 |
||
|
Short-term investments |
21,474 |
63,512 |
9,050 |
||
|
Accounts receivable, net |
466,066 |
746,873 |
106,429 |
||
|
Prepayments and other current assets |
49,321 |
41,829 |
5,961 |
||
|
Total current assets |
780,253 |
983,324 |
140,123 |
||
|
Non-current assets: |
|||||
|
Restricted Cash |
5,000 |
5,000 |
712 |
||
|
Property, equipment and leasehold improvement, net |
1,667 |
2,205 |
314 |
||
|
Intangible assets, net |
8,050 |
6,475 |
923 |
||
|
Right-of-use assets |
10,249 |
8,936 |
1,273 |
||
|
Goodwill |
84,609 |
84,609 |
12,057 |
||
|
Other non-current assets |
4,149 |
4,930 |
703 |
||
|
Total non-current assets |
113,724 |
112,155 |
15,982 |
||
|
Total assets |
893,977 |
1,095,479 |
156,105 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||
|
Current liabilities: |
|||||
|
Accounts payable |
316,868 |
565,806 |
80,627 |
||
|
Short-term borrowings |
20,000 |
15,000 |
2,137 |
||
|
Contract liabilities |
4,295 |
2,524 |
360 |
||
|
Salary and welfare benefits payable |
73,609 |
78,500 |
11,186 |
||
|
Tax payable |
950 |
4,547 |
648 |
||
|
Amounts due to related party |
55,251 |
– |
– |
||
|
Accrued expenses and other current liabilities |
25,759 |
17,905 |
2,552 |
||
|
Short-term lease liabilities |
3,951 |
4,270 |
608 |
||
|
Warrant |
850 |
1 |
– |
||
|
Total current liabilities |
501,533 |
688,553 |
98,118 |
||
|
Non-current liabilities: |
|||||
|
Amounts due to related party |
– |
44,420 |
6,330 |
||
|
Deferred tax liabilities |
2,013 |
1,619 |
231 |
||
|
Long-term lease liabilities |
5,398 |
3,960 |
564 |
||
|
Deferred revenue |
1,432 |
1,432 |
204 |
||
|
Warrant |
5,419 |
1,241 |
177 |
||
|
Total non-current liabilities |
14,262 |
52,672 |
7,506 |
||
|
Total liabilities |
515,795 |
741,225 |
105,624 |
||
|
Ordinary shares |
5 |
6 |
1 |
||
|
Treasury stock |
(1,025) |
(1,025) |
(146) |
||
|
Additional paid-in capital |
2,491,873 |
2,521,942 |
359,374 |
||
|
Accumulated deficit |
(2,113,821) |
(2,164,642) |
(308,459) |
||
|
Accumulated other comprehensive income/(loss) |
1,150 |
(2,027) |
(289) |
||
|
Total Cheche’s shareholders’ equity |
378,182 |
354,254 |
50,481 |
||
|
Total liabilities and shareholders’ equity |
893,977 |
1,095,479 |
156,105 |
||
|
Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income (All amounts in thousands, except for share and per share data) |
||||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||||
|
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|
|
2023 |
2024 |
2024 |
2023 |
2024 |
2024 |
|
|
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|
|
Net revenues |
823,269 |
850,517 |
121,198 |
2,433,640 |
2,489,503 |
354,751 |
|
Cost and Operating expenses: |
||||||
|
Cost of revenues |
(784,782) |
(808,079) |
(115,150) |
(2,336,761) |
(2,382,364) |
(339,484) |
|
Selling and marketing expenses |
(38,991) |
(18,110) |
(2,581) |
(86,747) |
(59,771) |
(8,517) |
|
General and administrative expenses |
(34,809) |
(20,422) |
(2,910) |
(84,503) |
(82,175) |
(11,710) |
|
Research and development expenses |
(13,465) |
(10,166) |
(1,449) |
(44,768) |
(28,691) |
(4,088) |
|
Total cost and operating expenses |
(872,047) |
(856,777) |
(122,090) |
(2,552,779) |
(2,553,001) |
(363,799) |
|
Other expenses: |
||||||
|
Interest income |
1,212 |
1,753 |
250 |
2,695 |
5,010 |
714 |
|
Interest expense |
(329) |
(176) |
(25) |
(871) |
(616) |
(88) |
|
Foreign exchange gains/(losses) |
1,069 |
3,502 |
499 |
(5,265) |
2,447 |
349 |
|
Government grants |
2,685 |
243 |
35 |
9,925 |
477 |
68 |
|
Changes in fair value of warrant |
(10,307) |
992 |
141 |
(10,434) |
4,368 |
622 |
|
Changes in fair value of amounts due |
(1,086) |
3,901 |
556 |
(4,922) |
615 |
88 |
|
Others, net |
(33) |
6 |
1 |
(2) |
186 |
27 |
|
(Loss)/income before income tax |
(55,567) |
3,961 |
565 |
(128,013) |
(51,011) |
(7,268) |
|
Income tax credit |
128 |
90 |
13 |
386 |
190 |
27 |
|
Net (loss)/income |
(55,439) |
4,051 |
578 |
(127,627) |
(50,821) |
(7,241) |
|
Accretions to preferred shares |
(652,178) |
– |
– |
(762,169) |
– |
– |
|
Net (loss)/income attributable to the |
(707,617) |
4,051 |
578 |
(889,796) |
(50,821) |
(7,241) |
|
Net (loss)/income |
(55,439) |
4,051 |
578 |
(127,627) |
(50,821) |
(7,241) |
|
Other comprehensive (loss)/income: |
||||||
|
Foreign currency translation |
(1,433) |
(5,408) |
(771) |
5,977 |
(3,393) |
(483) |
|
Fair value changes of amounts due to |
(104) |
470 |
67 |
(404) |
216 |
31 |
|
Total other comprehensive |
(1,537) |
(4,938) |
(704) |
5,573 |
(3,177) |
(452) |
|
Total comprehensive loss |
(56,976) |
(887) |
(126) |
(122,054) |
(53,998) |
(7,693) |
|
Net (loss)/income per ordinary |
||||||
|
Basic |
(17.52) |
0.05 |
0.01 |
(25.21) |
(0.66) |
(0.09) |
|
Diluted |
(17.52) |
0.05 |
0.01 |
(25.21) |
(0.66) |
(0.09) |
|
Weighted average number of |
||||||
|
Basic |
40,396,693 |
79,396,465 |
79,396,465 |
35,297,133 |
77,324,958 |
77,324,958 |
|
Diluted |
40,396,693 |
86,508,545 |
86,508,545 |
35,297,133 |
77,324,958 |
77,324,958 |
|
Reconciliation of GAAP Cost and Operating Expenses to Non-GAAP Cost and Operating (All amounts in thousands) |
|||||||
|
For the Three Months Ended |
For the Nine Months Ended |
||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
||
|
2023 |
2024 |
2024 |
2023 |
2024 |
2024 |
||
|
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||
|
Cost of revenues |
(784,782) |
(808,079) |
(115,150) |
(2,336,761) |
(2,382,364) |
(339,484) |
|
|
Add: Share-based compensation |
114 |
3 |
– |
187 |
9 |
1 |
|
|
Amortization of intangible assets related |
525 |
525 |
75 |
1,575 |
1,575 |
224 |
|
|
Adjusted Cost of revenues |
(784,143) |
(807,551) |
(115,075) |
(2,334,999) |
(2,380,780) |
(339,259) |
|
|
Selling and marketing expenses |
(38,991) |
(18,110) |
(2,581) |
(86,747) |
(59,771) |
(8,517) |
|
|
Add: Share-based compensation |
20,381 |
718 |
102 |
30,054 |
4,350 |
620 |
|
|
Adjusted Selling and marketing |
(18,610) |
(17,392) |
(2,479) |
(56,693) |
(55,421) |
(7,897) |
|
|
General and administrative expenses |
(34,809) |
(20,422) |
(2,910) |
(84,503) |
(82,175) |
(11,710) |
|
|
Add: Share-based compensation |
10,334 |
1,898 |
270 |
25,689 |
24,044 |
3,426 |
|
|
Listing related professional expenses |
9,435 |
– |
– |
14,972 |
– |
– |
|
|
Dispute resolution expenses (1) |
– |
– |
– |
– |
2,355 |
336 |
|
|
Adjusted General and administrative |
(15,040) |
(18,524) |
(2,640) |
(43,842) |
(55,776) |
(7,948) |
|
|
Research and development expenses |
(13,465) |
(10,166) |
(1,449) |
(44,768) |
(28,691) |
(4,088) |
|
|
Add: Share-based compensation |
2,688 |
334 |
48 |
11,462 |
1,667 |
238 |
|
|
Adjusted Research and development |
(10,777) |
(9,832) |
(1,401) |
(33,306) |
(27,024) |
(3,850) |
|
|
Total cost and operating expenses |
(872,047) |
(856,777) |
(122,090) |
(2,552,779) |
(2,553,001) |
(363,799) |
|
|
Adjusted total cost and operating |
(828,570) |
(853,299) |
(121,595) |
(2,468,840) |
(2,519,001) |
(358,954) |
|
|
(1) represents expenses incurred by Cheche in connection with settling a dispute with a certain security holder, |
|||||||
|
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (All amounts in thousands, except for share data and per share data) |
||||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||||
|
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|
|
2023 |
2024 |
2024 |
2023 |
2024 |
2024 |
|
|
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|
|
Net (loss)/income |
(55,439) |
4,051 |
578 |
(127,627) |
(50,821) |
(7,241) |
|
Add: Share-based compensation expenses |
33,517 |
2,953 |
420 |
67,392 |
30,070 |
4,285 |
|
Amortization of intangible assets related to acquisition |
525 |
525 |
75 |
1,575 |
1,575 |
224 |
|
Listing related professional expenses |
9,435 |
– |
– |
14,972 |
– |
– |
|
Changes in fair value of warrant |
10,307 |
(992) |
(141) |
10,434 |
(4,368) |
(622) |
|
Changes in fair value of amounts due to related party |
1,086 |
(3,901) |
(556) |
4,922 |
(615) |
(88) |
|
Dispute resolution expenses |
– |
– |
– |
– |
2,355 |
336 |
|
Adjusted net (loss)/income |
(569) |
2,636 |
376 |
(28,332) |
(21,804) |
(3,106) |
|
Accretions to preferred shares redemption value |
(652,178) |
– |
– |
(762,169) |
– |
– |
|
Adjusted net (loss)/income attributable to |
(652,747) |
2,636 |
376 |
(790,501) |
(21,804) |
(3,106) |
|
Weighted average number of ordinary shares used |
||||||
|
Basic |
40,396,693 |
79,396,465 |
79,396,465 |
35,297,133 |
77,324,958 |
77,324,958 |
|
Diluted |
40,396,693 |
86,508,545 |
86,508,545 |
35,297,133 |
77,324,958 |
77,324,958 |
|
Net (loss)/income per ordinary share |
||||||
|
Basic |
(17.52) |
0.05 |
0.01 |
(25.21) |
(0.66) |
(0.09) |
|
Diluted |
(17.52) |
0.05 |
0.01 |
(25.21) |
(0.66) |
(0.09) |
|
Non-GAAP adjustments to net (loss)/income per |
||||||
|
Basic |
1.36 |
(0.02) |
(0.01) |
2.81 |
0.38 |
0.05 |
|
Diluted |
1.36 |
(0.02) |
(0.01) |
2.81 |
0.38 |
0.05 |
|
Adjusted net (loss)/income per ordinary share |
||||||
|
Basic |
(16.16) |
0.03 |
0.00 |
(22.40) |
(0.28) |
(0.04) |
|
Diluted |
(16.16) |
0.03 |
0.00 |
(22.40) |
(0.28) |
(0.04) |
View original content:https://www.prnewswire.com/news-releases/cheche-group-reports-third-quarter-2024-unaudited-financial-results-302316388.html
SOURCE Cheche Group Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Top 3 Tech And Telecom Stocks Which Could Rescue Your Portfolio In November
The most oversold stocks in the communication services sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
Cumulus Media Inc CMLS
- On Nov. 1, Cumulus Media posted worse-than-expected third-quarter results. Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, “During the third quarter, we delivered revenue and EBITDA in-line with pacing commentary and analyst estimates. Given the market challenges, we maintained our focus on what we can control. Specifically, we continued investing to drive growth in our digital businesses, including in digital marketing services which increased revenue nearly 40% in the quarter; capitalizing on areas of improvement in national and political ad spending; maximizing operating cash flow; and improving operating leverage through ongoing expense reductions.” The company’s stock fell around 42% over the past month and has a 52-week low of $0.70.
- RSI Value: 25.88
- CMLS Price Action: Shares of Cumulus Media fell 3.3% to close at $0.70 on Monday.
- Benzinga Pro’s real-time newsfeed alerted to latest CMLS news.
Beasley Broadcast Group Inc BBGI
- On Nov. 5, Beasley Broadcast Group reported a quarterly loss of $2.33 per share. Caroline Beasley, Chief Executive Officer, said, “Beasley delivered third quarter net revenue of $58.2 million and same-station revenue growth of 0.5%, driven by strong political advertising revenue and a 11.7% increase in same-station digital revenue. The ongoing success of our digital transformation strategy continues to serve as an important offset to continued challenges in the audio advertising spot market.” The company’s stock fell around 31% over the past month and has a 52-week low of $7.66.
- RSI Value: 23.76
- BBGI Price Action: Shares of Beasley Broadcast jumped 11.7% to close at $9.25 on Monday.
- Benzinga Pro’s charting tool helped identify the trend in BBGI stock.
Asset Entities Inc ASST
- On Nov. 15, Asset Entities reported third-quarter revenues of $202,921, representing a year-over-year increase from $60,135. “We are thrilled to see the strong year-over-year growth in revenue, with our recent strategic acquisitions and partnerships,” stated CEO Arshia Sarkhani. “We are optimistic for what’s ahead, as we continue executing strategic acquisitions, growth initiatives, and further collaborations and partnerships.” The company’s stock fell around 37% over the past month and has a 52-week low of $0.51.
- RSI Value: 24.21
- ASST Price Action: Shares of Asset Entities fell 9.9% to close at $0.58 on Monday.
- Benzinga Pro’s signals feature notified of a potential breakout in ASST shares.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Commercial Bank Market is Poised to Grow at 11.2% CAGR, Surpassing US$ 8,920 Billion by 2034 | Fact.MR Report
Rockville, MD , Nov. 26, 2024 (GLOBE NEWSWIRE) — The global commercial bank market is estimated to generate revenue worth US$ 3,093.42 billion in 2024 and has been thoroughly analyzed to expand at a remarkable CAGR of 11.2% to touch a value of US$ 8,920.35 billion by the end of 2034.
Commercial banks are constantly extending their products in asset management, financial planning, retirement services, and other areas in response to the rising demand for wealth management and investment services. Banks are tapping into a profitable industry by meeting with individuals and businesses searching for tailored financial solutions. Another reason driving this trend is a higher interest in diverse assets and comprehensive financial planning, which is forcing banks to strengthen their digital advising tools and personalized services to better serve their changing customer.
The North American region is projected to hold significant market share and lead throughout the assessment period. North America is leading due to its stability and fierce competition between traditional banks and fintech companies. Large investments in technology are driving digital banking services, and banks are increasingly focusing on improving operational efficiency and customer experience.
For More Insights into the Market, Request a Sample of this Report: https://www.factmr.com/connectus/sample?flag=S&rep_id=10486
Key Takeaways from Commercial Bank Market Study:
- Revenue of the global market for commercial banks is forecasted to reach US$ 8,920.35 billion by 2034.
- North America is analyzed to generate a turnover of US$ 425.4 billion in 2024.
- The market in South Asia & Pacific is evaluated to increase at 13.9% CAGR between 2024 and 2034.
- The market in Japan is estimated to reach a value of US$ 467.06 billion by the end of 2034.
- China is approximated to register revenue of US$ 631.22 billion by 2034.
- The market in the United States is forecasted to expand at 12.4% CAGR from 2024 to 2034.
- Based on product and service, the Commercial & Industrial Mortgages segment is projected to reach a size of US$ 3,188.67 billion by 2034.
“Prominent commercial banks are investing in advanced digital technology to enhance the client experience and operational efficiency. Banks are emphasizing reducing costs while attracting tech-savvy customers, resulting in greater transaction volumes and service usage,” says a Fact.MR analyst
Commercial & Industrial Mortgages Segment Hold a Sizable Revenue Portion
Compared to other products and services, commercial and industrial mortgages are in high demand. To increase assets and profitability, several businesses are investing more in new machinery, infrastructure, real estate, and other items. This trend is particularly apparent in sectors, including manufacturing, logistics, technology, and others where space and resources are critical for growing operations. Moreover, low interest rates in several locations have made borrowing more alluring and encouraged businesses to seek out capital for real estate acquisitions. The demand for commercial and industrial mortgages is rising as businesses look to maximize their infrastructure and secure excellent locations.
Leading Players Driving Innovation in the Commercial Bank Market:
Bank of America; Wells Fargo; Citigroup; Goldman Sachs; Morgan Stanley; U.S. Bancorp; PNC Financial Services; JPMorgan Chase; HSBC; Deutsche Bank; BNP Paribas; Royal Bank of Canada; Santander; Barclays; Metropolitan Commercial Bank
Commercial Bank Industry News:
In September 2024, Metropolitan Commercial Bank, a full-service commercial bank headquartered in New York City, announced the introduction of its new and enhanced website, MCBankNY.com. By emphasizing user experience and accessibility, the new website strives to provide seamless and convenient banking to the bank’s loyal clients and partners.
Get Customization on this Report for Specific Research Solutions- https://www.factmr.com/connectus/sample?flag=S&rep_id=10486
More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the commercial bank market, presenting historical demand data (2019 to 2023) and forecast statistics for 2024 to 2034.
The study divulges essential insights into the market based on product & service (commercial & industrial mortgages, other business loans, residential mortgages, home equity & vehicle loans, other secured & unsecured consumer loans, government loans) and major market (consumers, other businesses, manufacturing companies, transportation, storage & postal service companies, wholesale & retail companies, utility companies, real estate companies, government clients), across seven major regions of the world (North America, Western Europe, Eastern Europe, East Asia, Latin America, South Asia & Pacific, and MEA).
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The global management consultant market is valued at US$ 936.85 billion worth in 2024. Further, advancing at a CAGR of 10.9%, the market is approximated to reach a valuation of US$ 2,655.14 billion by 2034.
The global management consulting services market is expected to be worth US$ 298.6 billion in fiscal year 2023, up from US$ 285.0 billion in fiscal year 2022. From 2023 to 2033, the market is expected to grow at a 4.8% CAGR, reaching a value of US$ 477.3 billion by the end of 2033.
The global management system certification market is expected to reach US$ 29 billion in 2024, as revealed in the updated research report by Fact.MR. Revenue from management system certification services is evaluated to increase at 4.8% CAGR and reach US$ 46.3 billion by 2034.
Integrated Talent Management Market based on functionality(Talent Acquisition ,Performance Management ,Learning Management ,Compensation ,Succession and Leadership Development ,Workforce Planning) – Global Review 2018 to 2028
Relational Database Management Systems Market By Deployment (On-premise, Cloud-Based), & By Region (North America, Latin America, Europe, CIS & Russia) – Global Market Insights 2023 to 2033
About Us:
Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning. With its unwavering dedication to providing reliable market intelligence, FACT.MR continues to assist companies in navigating dynamic market challenges with confidence and achieving long-term success. With a global presence and a team of experienced analysts, FACT.MR ensures its clients receive actionable insights to capitalize on emerging opportunities and stay ahead in the competitive landscape.
Contact:
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Short-Seller Andrew Left Slams MicroStrategy. Is Michael Saylor's Bitcoin Stock in Trouble?
MicroStrategy (NASDAQ: MSTR) has become one of the most valuable stocks on the Nasdaq by pursuing a simple strategy: buying Bitcoin (CRYPTO: BTC).
The stock has soared alongside Bitcoin’s gains this year, which have come with the broader bull market, the launch of spot Bitcoin exchange-traded funds (ETFs), and optimism that a new Trump administration will adopt crypto-friendly policies. As you can see from the chart below, both MicroStrategy and the cryptocurrency have surged this year.
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MicroStrategy is unique on the stock market because it essentially acts like a leveraged Bitcoin ETF. Chief Executive Officer Michael Saylor, one of the biggest evangelists for the digital coin, began buying it for his company in 2020, and it held 252,220 bitcoins as of the end of the third quarter.
However, one well-known short-seller is now saying MicroStrategy is overvalued and that its model is unsustainable. Andrew Left of Citron Research posted his thesis on X, saying that while his company was bullish on MicroStrategy in 2020 as a way to invest in Bitcoin, it had now reversed its position.
Citron said that MicroStrategy’s value has completely detached from the crypto’s performance. Citron noted that it was still bullish on Bitcoin but was hedging that bet with a short position in MicroStrategy.
The company’s stock plunged 16% last Thursday when Citron published its short report.
Left is correct that MicroStrategy’s fundamentals have become detached from Bitcoin’s value. It does have a small software business, but it’s basically negligible as far as its valuation is concerned — its market cap was $94.8 billion as of Nov. 22. It now identifies itself as a Bitcoin treasury company.
But its Bitcoin holdings don’t justify that valuation, either, because based on its market cap and those holdings, the company is valued at $375,864 per token, which is nearly four times the price of the cryptocurrency — $98,807 — at the time of writing. The value of the Bitcoin held on its balance sheet is now $22.4 billion.
Currently, MicroStrategy is sitting on a gain of $49,441 per Bitcoin, with an average purchase price of $39,266. In total, it has gained $12.5 billion from its Bitcoin purchases.
The company also has $4.2 billion in long-term debt as it continues to borrow money and sell stock to buy the crypto.
MicroStrategy trades like a leveraged Bitcoin ETF because the company is consistently increasing exposure to the crypto, which effectively makes it an outsized bet on Bitcoin going up. Holding Bitcoin directly or through an ETF doesn’t allow you to do that, as the exposure is steady.
Chromium Plated Surface Treatment Market is Expected to Grow 3.8% CAGR with US$ 410.6 Million by 2034 | Fact.MR Report
Rockville, MD, Nov. 26, 2024 (GLOBE NEWSWIRE) — The chromium plated surface treatment market is expected to grow from US$ 283.1 million in 2024 to US$ 410.6 million in 2034. Fact. MR’s extensive study shows that the market will expand at a growth rate of 3.8% from 2024 to 2034.
The rising world demand for chromium plated materials is closely associated with the market requirement for lightweight and durable materials in aerospace. This is due to the choice of materials like aluminium, titanium, and composites to reduce aircraft weight which in turn increases aircraft fuel efficiency and reduces carbon emission. But these benefits are compromised as these materials need stronger treatments to make them resistant to damage; they have to withstand wear and tear. Coincidentally, the use of technologies such as chromium plating in processes like ion vapor deposition (IVD) and high velocity oxygen fuel (HVOF) grinding has been advanced.
With an intense desire to make aviation systems more effective, and address the issue of fuel efficiency and preservation of the environment among others, there is a big investment in surface treatments. The importance of chromium plating technologies is seen in the enhancement of mechanical properties of the ultralight materials. These enhancement enables their application in high stress components such as the landing gear, fasteners, and the engine stators. In addition, the increase in the production of commercial aircraft and military aircraft, as well as the investment in new designs of aircraft, also enhances the need for coatings, hence increasing the market.
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Key Takeaways from Market Study:
- Global chromium plated surface treatment market will grow at a CAGR of 3.8%, reaching US$ 410.6 million by the end of 2034.
- North America will expand at a CAGR of 3.9% from 2024 to 2034, capturing 26.8% of the market share in 2024 and offering an absolute opportunity of US$ 35.5 million.
- East Asia will account for 18.8% of market share in 2024, generating an absolute dollar opportunity of US$ 24.0 million between 2024 and 2034.
- Between 2024 and 2034, by plating technology the electroplating are expected to produce an absolute dollar opportunity US$ 43.1 million.
- With a 37.0% market share, by end user, commercial aircraft manufacturers segment is estimated to be worth US$ 104.7 million in 2024.
“Increasing environmental regulations, shift toward sustainable technologies and growing demand in military aerospace applications have contributed to the growth of the chromium plated surface treatment market” says a Fact.MR analyst.
Leading Players Driving Innovation in the Chromium Plated Surface Treatment Market:
Atotech; Valence Surface Technologies; Electro-Coatings, Inc.; Pioneer Metal Finishing; Hard Chrome Specialists; Bales Metal Surface Solutions; KOCH Finishing Systems; Advance Plating Technologies; Multinal Group; CZL Tilburg; Embee Processing; John Cockerill Surface Treatment; Betz-Chrom; ASCO Engineering & Surface Technology; Hardide; New Method Plating Inc.; Precision Industries, Inc; Hayden Corp.; G.W.P. AG; DVS Enterprises; Other Prominent Players
Market Development:
Key companies involved in chromium plated surface treatment market are Atotech, Valence Surface Technologies, Electro-Coatings, Inc., Pioneer Metal Finishing, Hard Chrome Specialists, Bales Metal Surface Solutions, KOCH Finishing Systems, Advance Plating Technologies, Multinal Group, CZL Tilburg, Embee Processing, John Cockerill Surface Treatment, Betz-Chrom, ASCO Engineering & Surface Technology, Hardide, New Method Plating Inc., Precision Industries, Inc, Hayden Corp., G.W.P. AG, and DVS Enterprises.
These companies in the chromium plated surface treatment market focuses on innovation, sound environmental practices, strategic partnership building, and expanding their product lines to improve performance and meet growing demand in many industries.
As an instance-
- In August 2023, Sharretts Plating adopted the enhancements in chrome-plating technologies with a focus on environmental sustainability. The improvement seeks to reduce the use of hazardous chemicals while maintaining high-quality surface treatments.
- In July 2022, Pioneer Metal Finishing signed a partnership with Allied Metal Company on the development and expanding capabilities and service offerings in chromium plating and surface treatment.
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Chromium Plated Surface Treatment Industry News:
- In November 2023, BASF and Krebs & Riedel worked together to provide eco-friendly chromium plating solutions.
- Covalent Materials Corporation improved its supply chain for chromium plating chemicals and goods in January 2023 by entering into a supply arrangement with Vanderbilt Chemicals.
- Pioneer Metal Finishing and Allied Metal Company partnered in July 2022 with the goal of enhancing the company’s surface treatment and chromium plating capabilities and service offerings.
More Valuable Insights on Offer:
Fact.MR, in its new offering, presents an unbiased analysis of the global chromium plated surface treatment market, presenting historical data for 2019 to 2023 and forecast statistics for 2024 to 2034.
The study reveals essential insights based on plating technology (ion vapor deposition (IVD) plating, high velocity oxygen fuel (HVOF) plating, LHE (lithium-induced homogeneous electrolysis) Zn-Ni plating, electroplating, and other plating technologies); component type (aircraft landing gear, engine components, fasteners, exterior components, and interior components); material (aluminum, steel, titanium, and other materials); end-user (commercial aircraft manufacturers, business jet manufacturers, military aircraft manufacturers, and general aviation manufacturers); service type (new aircraft manufacturing and MRO) across major seven regions of the world (North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East & Africa).
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The global chromium carbide market size is valued at US$ 38.9 million in 2023 and is projected to expand steadily at a CAGR of 6.5% to reach a marker size of US$ 73 million by the end of 2033.
The global sales of the Trivalent Chromium Finishing Market in 2021 was held at US$ 316.9 Million. With 5.9%, projected growth during 2022 – 2032, the market is expected to reach a valuation of US$ 586.5 Million by the end of 2032.
The global chemical surface treatment market is US$ 16.2 billion in 2023. Global demand for chemical surface treatment is forecasted to surpass US$ 27.7 billion by the end of 2033, rising at a CAGR of 5.5% from 2023 to 2033.
Expanding at a CAGR of 5.4%, the global feedwater treatment chemical market is projected to increase from a valuation of US$ 1.08 billion in 2024 to US$ 1.82 billion by 2034, as mentioned in Fact.MR report.
The global terpene resin market is analyzed at US$ 1.13 billion in 2024 and has been forecasted to expand at 7.4% CAGR to reach a value of US$ 2.3 billion by 2034-end.
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2 High-Yield Dividend Stocks to Buy Now for a Lifetime of Passive Income
Investors looking for a way to pump up their passive income streams want to turn their attention toward the pharmaceutical industry. From the end of 2022 through Nov. 22, the benchmark S&P 500 index rose by a stunning 55.5%, but many of its drug-selling components haven’t participated in the rally.
Shares of Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) have underperformed over the past couple of years, but these dividend payers kept raising their payouts.
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With dividend payouts that have risen much faster than their stock prices, shares of these three drugmakers offer yields that are way above average. Read on to see why there’s a good chance they’ll keep raising your passive income stream throughout retirement.
Shares of Pfizer have lost about half their value since the end of 2022, but its dividend payout has been moving in the opposite direction. Last December, the pharmaceutical giant raised its quarterly payout for the 15th consecutive year.
At recent prices, Pfizer offers a huge 6.5% yield and investors can reasonably expect more dividend payout bumps in the years ahead. Sales of the company’s COVID-19 products probably won’t return to their former glory, but its oncology division is having a terrific year.
Third-quarter sales of cancer therapies shot 31% higher year over year thanks in part to soaring sales of its prostate cancer drug, Xtandi. Xtandi sales will likely continue expanding along with Talzenna. In October, the company announced a significant survival benefit for patients who received Talzenna in combination with Xtandi, versus Xtandi monotherapy, during the Talapro-2 study.
In 2022, Pfizer also used some of its COVID-19 cash to acquire Biohaven and its migraine drug, Nurtec. There have been several new migraine drugs launched over the past five years, but Nurtec is the only one approved for both acute treatment and prevention of migraine headaches.
Nurtec’s unique position is a big advantage for Pfizer. According to management, 85% of primary care clinicians who prescribe new migraine drugs are choosing Nurtec.
This year, Pfizer expects $2.85 per share in adjusted earnings this year at the midpoint of management’s guided range. That’s more than enough to support a dividend payout currently set at an annualized $1.68 per share. With Nurtec, Talzena, and Xtandi driving growth, the drugmaker’s payout could rise steadily for another 15 years.
Billionaire Israel Englander Sold 90% of His Palantir Stock and Is Buying an AI Stock Partnered With Amazon and Google
Billionaire Israel Englander is the founder and CEO of Millennium Management, the second-most profitable hedge fund in history as measured by net gains since inception, according to LCH Investments. That makes him a good case study for investors.
Englander sold 4.5 million shares of Palantir (NYSE: PLTR) during the third quarter, reducing his stake by 90%. Meanwhile, he also bought 2.5 million shares of Pinterest (NYSE: PINS), a company that has partnered with Amazon and Alphabet‘s Google to boost ad demand on its social platform. That increased Millennium’s stake in Pinterest by 310%.
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Englander’s trades align with Wall Street’s outlook. Specifically, Palantir has a median target price of $38 per share, which implies 41% downside from its current share price of $64. But Pinterest has a median target of $40 per share, which implies 33% upside from its current share price of $30.
Here’s what investors should know about Pinterest.
Pinterest is a social media company focused on inspiration rather than communication. Its platform leans on artificial intelligence (AI) to help users discover new ideas and products that range from recipes and tutorials to food and fashion. Pinterest generates revenue through advertising. And while its user base is much smaller than that of Meta Platforms, it still ranks among the 15 largest ad tech companies worldwide.
Pinterest earlier this year introduced new AI tools for advertisers. One such tool — Performance+ — leans on generative AI to enhance product images with backgrounds tailored to users’ tastes. Likewise, Performance+ leans on AI to streamline campaign creation and improve outcomes. CEO Bill Ready said, “Our AI investments are driving results by powering better personalized experiences and greater performance for advertisers.”
Pinterest reported solid financial results in Q3, beating estimates on the top and bottom lines. Monthly active users rose 11% to 537 million, and engagement improved across all three major geographic regions. In turn, revenue increased 18% to $898 million, and non-GAAP net income increased 43% to $0.40 per share.
However, Pinterest’s guidance disappointed Wall Street. Revenue is projected to increase 16% in Q4, while analysts had anticipated 17% revenue growth. But management attributed that sequential slow down to softness among food and beverage advertisers that are navigating macroeconomic headwinds, which are ultimately a temporary problem.
MicroStrategy, Coinbase, And Other Bitcoin-Linked Stocks Tumble As BTC's March To $100,000 Stalls
Bitcoin-related stocks saw a decline in Tuesday’s pre-market trading as Bitcoin’s price slipped from its recent highs. The cryptocurrency’s rally appears to be losing steam after nearing the significant $100,000 milestone.
What Happened: Bitcoin, often dubbed “King Crypto,” was trading at $93,590.38 at 5:00 AM Eastern Time. A prominent trader has warned that if Bitcoin fails to break through the $100,000 resistance level, it could experience a significant correction, potentially dropping to $85,600 in a worst-case scenario.
As Bitcoin’s momentum seems to be waning, stocks tied to the cryptocurrency also face declines. As per Benzinga Pro, MARA Holdings Inc MARA dropped by 3.63%, MicroStrategy Inc MSTR fell by 3.33%, and Coinbase Global Inc COIN decreased by 3.40% in pre-market trading on Tuesday.
Why It Matters: The recent dip in Bitcoin’s price comes amid a broader cooling of bullish sentiment in the cryptocurrency market. According to Santiment data, the enthusiasm that fueled a prolonged rally since September is waning, especially for major cryptocurrencies like Bitcoin and Ethereum.
Adding to the concerns, a crypto analyst known for accurately predicting the 2022 market crash has warned that Bitcoin may be approaching a local top. The analyst, known as Capo, has highlighted indicators such as overextended bullish sentiment and diminishing momentum as signs that a correction could be imminent.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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