SHANGHAI, May 12, 2015 /PRNewswire/ -- Homeinns Hotel Group, a leading economy hotel chain in China, today announced its unaudited financial results for the first quarter ended March 31, 2015.
First Quarter 2015 Financial and Operational Highlights
Total revenues were RMB 1.47 billion (US$237.2 million) for the first quarter of 2015, a decrease of 0.1% year over year, but within the recently provided guidance range.
Net loss attributable to ordinary shareholders was RMB 37.6 million (US$6.1 million) for the first quarter of 2015, compared with net income of RMB 74.9 million for the first quarter of 2014. Adjusted net income attributable to ordinary shareholders (non-GAAP) was RMB 2.0 million (US$0.3 million) for the first quarter of 2015, a decrease of 93.9% year over year.
EBITDA (non-GAAP) decreased 40.6% year over year to RMB 177.0 million (US$28.6 million) for the first quarter of 2015. Adjusted EBITDA (non-GAAP) decreased 15.1% year over year to RMB 216.5 million (US$34.9 million) for the first quarter of 2015.
Net operating cash inflow decreased 94.1% year over year to RMB 9.1 million (US$1.5 million) for the first quarter of 2015.
As of March 31, 2015, Homeinns Hotel Group operated 2,661 hotels across 338 cities in China, including a net addition of 52 hotels during the first quarter of 2015.
"We achieved revenue in line with our previously provided guidance, which reflected our expectations for a challenging start to the year in very difficult market conditions," said Mr. David Sun, the Company's chief executive officer. "While we continued to make meaningful progress in rolling out new business initiatives, controlling costs, and driving beneficial efficiencies in our business, the first quarter was one of the most difficult periods for our business since Homeinns was established in 2002. A deepened economic slowdown, the fact that the first quarter is normally our slowest period and the later timing of Chinese New Year versus last year together put rather significant pressure on our revenue per available room, which had a negative impact on our overall profitability for the period."
Mr. Sun continued, "Looking ahead to the remainder of 2015, we are not seeing immediate signs of a market rebound at the moment but remain confident about the long-term prospects of the overall travel and lodging market in China. While the macroeconomic environment can be cyclical, and is out of our control as well as beyond what we can accurately predict at present, we continue to focus on what we can do and have done well consistently, namely refining product offerings, improving customer service, and delivering operating and cost efficiencies, all to ensure we remain as competitive and resilient as possible in the current market. On top of this, we will further develop our mid-scale hotels and continue to drive various new initiatives that are focused on meeting the evolving needs of our customers. We believe that all of this will leave us well positioned to capture opportunities when China's economy improves and deliver long-term value for our shareholders."
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