|
Price US$
|
| |
PER ADS
|
|
| | |
Per ADS
|
| |
Total
|
| ||||||
Initial price to public
|
| | | US$ | | | | | | US$ | | | |
Underwriting discount(1)
|
| | | US$ | | | | | | US$ | | | |
Proceeds, before expenses, to us
|
| | | US$ | | | | | | US$ | | | |
| Goldman Sachs | | |
UBS Investment Bank
|
|
| | | | | S-iii | | | |
| | | | | S-v | | | |
| | | | | S-1 | | | |
| | | | | S-11 | | | |
| | | | | S-13 | | | |
| | | | | S-17 | | | |
| | | | | S-33 | | | |
| | | | | S-34 | | | |
| | | | | S-35 | | | |
| | | | | S-37 | | | |
| | | | | S-39 | | | |
| | | | | S-52 | | | |
| | | | | S-55 | | | |
| | | | | S-63 | | | |
| | | | | S-64 | | | |
| | | | | S-65 | | | |
| | | | | S-66 | | |
| | | | | 1 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 19 | | | |
| | | | | 25 | | | |
| | | | | 26 | | | |
| | | | | 34 | | | |
| | | | | 44 | | | |
| | | | | 46 | | | |
| | | | | 47 | | | |
| | | | | 48 | | | |
| | | | | 51 | | | |
| | | | | 52 | | | |
| | | | | 53 | | | |
| | | | | 54 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
(RMB)
|
| |
(RMB)
|
| |
(RMB)
|
| |
(US$)
|
| ||||||||||||||||||||||||
| | |
(In millions)
|
| |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||||||||
Total revenues
|
| | | | 11,212 | | | | | | 10,196 | | | | | | 12,785 | | | | | | 9,437 | | | | | | 10,156 | | | | | | 1,428 | | |
Total operating costs and
expenses(1) |
| | | | 9,236 | | | | | | 11,925 | | | | | | 13,607 | | | | | | 9,742 | | | | | | 10,631 | | | | | | 1,496 | | |
Income (loss) from operations
|
| | | | 2,108 | | | | | | (1,686) | | | | | | 164 | | | | | | 126 | | | | | | (200) | | | | | | (29) | | |
Unrealized gain (loss) from fair value
changes of equity securities |
| | | | 316 | | | | | | (265) | | | | | | (96) | | | | | | 120 | | | | | | (499) | | | | | | (70) | | |
Foreign exchange (loss) gain
|
| | | | (35) | | | | | | 175 | | | | | | (317) | | | | | | (204) | | | | | | (822) | | | | | | (116) | | |
Income (loss) before income taxes
|
| | | | 2,565 | | | | | | (2,279) | | | | | | (408) | | | | | | (2) | | | | | | (1,679) | | | | | | (238) | | |
Net income (loss)
|
| | | | 1,761 | | | | | | (2,204) | | | | | | (480) | | | | | | (17) | | | | | | (1,722) | | | | | | (244) | | |
Net income (loss) attributable to H World Group Limited
|
| | | | 1,769 | | | | | | (2,192) | | | | | | (465) | | | | | | (7) | | | | | | (1,697) | | | | | | (240) | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
(RMB)
|
| |
(RMB)
|
| |
(RMB)
|
| |
(US$)
|
| ||||||||||||||||||||||||
| | |
(In millions)
|
| |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||||||||
Share-based compensation expenses
|
| | | | 110 | | | | | | 122 | | | | | | 109 | | | | | | 94 | | | | | | 77 | | | | | | 11 | | |
| | |
As of December 31,
|
| | | | | | | | | | | | | |||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
As of September 30, 2022
|
| ||||||||||||||||||
| | |
(RMB)
|
| |
(RMB)
|
| |
(US$)
|
| |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||
Cash and cash equivalents
|
| | | | 3,234 | | | | | | 7,026 | | | | | | 5,116 | | | | | | 5,177 | | | | | | 728 | | |
Restricted cash
|
| | | | 10,765 | | | | | | 64 | | | | | | 25 | | | | | | 40 | | | | | | 6 | | |
Property and equipment, net
|
| | | | 5,854 | | | | | | 6,682 | | | | | | 7,056 | | | | | | 6,804 | | | | | | 957 | | |
Intangible assets, net
|
| | | | 1,662 | | | | | | 5,945 | | | | | | 5,385 | | | | | | 5,240 | | | | | | 737 | | |
Operating lease right-of-use assets
|
| | | | 20,875 | | | | | | 28,980 | | | | | | 29,942 | | | | | | 28,610 | | | | | | 4,022 | | |
Long-term investments
|
| | | | 1,929 | | | | | | 1,923 | | | | | | 1,965 | | | | | | 1,865 | | | | | | 262 | | |
Goodwill
|
| | | | 2,657 | | | | | | 4,988 | | | | | | 5,132 | | | | | | 5,069 | | | | | | 713 | | |
Total assets
|
| | | | 52,983 | | | | | | 65,155 | | | | | | 63,269 | | | | | | 61,387 | | | | | | 8,631 | | |
Short-term debt
|
| | | | 8,499 | | | | | | 1,142 | | | | | | 6,232 | | | | | | 5,144 | | | | | | 723 | | |
Accounts payable
|
| | | | 1,176 | | | | | | 1,241 | | | | | | 968 | | | | | | 810 | | | | | | 114 | | |
Operating lease liabilities, current
|
| | | | 3,082 | | | | | | 3,406 | | | | | | 3,628 | | | | | | 3,732 | | | | | | 525 | | |
Long-term debt
|
| | | | 8,084 | | | | | | 10,856 | | | | | | 3,565 | | | | | | 6,091 | | | | | | 856 | | |
Operating lease liabilities, non-current
|
| | | | 18,496 | | | | | | 27,048 | | | | | | 28,012 | | | | | | 27,216 | | | | | | 3,826 | | |
Deferred revenue
|
| | | | 1,738 | | | | | | 1,934 | | | | | | 2,151 | | | | | | 2,102 | | | | | | 296 | | |
Total liabilities
|
| | | | 45,483 | | | | | | 53,723 | | | | | | 52,225 | | | | | | 52,624 | | | | | | 7,398 | | |
Total equity
|
| | | | 7,500 | | | | | | 11,432 | | | | | | 11,044 | | | | | | 8,763 | | | | | | 1,233 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
(RMB)
|
| |
(RMB)
|
| |
(RMB)
|
| |
(US$)
|
| ||||||||||||||||||||||||
| | |
(In millions)
|
| |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(Unaudited)
|
| |||||||||||||||
Net cash provided by operating activities
|
| | | | 3,293 | | | | | | 609 | | | | | | 1,342 | | | | | | 473 | | | | | | 520 | | | | | | 72 | | |
Net cash used in investing
activities |
| | | | (285) | | | | | | (8,101) | | | | | | (1,402) | | | | | | (899) | | | | | | (670) | | | | | | (94) | | |
Net cash provided by (used in) financing activities
|
| | | | 6,045 | | | | | | 883 | | | | | | (1,801) | | | | | | (1,202) | | | | | | 6 | | | | | | 2 | | |
| | |
Year Ended December 31,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
(RMB)
|
| |
(RMB)
|
| |
(RMB)
|
| |
(RMB)
|
| |
(RMB)
|
| |
(US$)
|
| ||||||||||||||||||
| | |
(In millions)
|
| |||||||||||||||||||||||||||||||||
Net income (loss) attributable to H World Group Limited
|
| | | | 1,769 | | | | | | (2,192) | | | | | | (465) | | | | | | (7) | | | | | | (1,697) | | | | | | (240) | | |
Interest income
|
| | | | (160) | | | | | | (119) | | | | | | (89) | | | | | | (64) | | | | | | (60) | | | | | | (8) | | |
Interest expense
|
| | | | 315 | | | | | | 533 | | | | | | 405 | | | | | | 313 | | | | | | 292 | | | | | | 41 | | |
Income tax expense (benefit)
|
| | | | 640 | | | | | | (215) | | | | | | 12 | | | | | | (3) | | | | | | 4 | | | | | | 1 | | |
Depreciation and amortization
|
| | | | 991 | | | | | | 1,362 | | | | | | 1,503 | | | | | | 1,082 | | | | | | 1,096 | | | | | | 154 | | |
EBITDA (Non-GAAP)
|
| | | | 3,555 | | | | | | (631) | | | | | | 1,366 | | | | | | 1,321 | | | | | | (365) | | | | | | (52) | | |
Share-based compensation expenses
|
| | | | 110 | | | | | | 122 | | | | | | 109 | | | | | | 94 | | | | | | 77 | | | | | | 11 | | |
Unrealized (gains) losses from fair value changes of equity securities
|
| | | | (316) | | | | | | 265 | | | | | | 96 | | | | | | (120) | | | | | | 499 | | | | | | 70 | | |
Adjusted EBITDA (Non-GAAP)
|
| | | | 3,349 | | | | | | (244) | | | | | | 1,571 | | | | | | 1,295 | | | | | | 211 | | | | | | 29 | | |
| | |
As of
December 31, 2019 |
| |
As of
December 31, 2020 |
| |
As of
December 31, 2021 |
| |
As of
September 30, 2022 |
| ||||||||||||||||||||||||||||||
| | |
Legacy
Huazhu(1) |
| |
Legacy
DH(2) |
| |
Legacy
Huazhu(1) |
| |
Legacy
DH(2) |
| |
Legacy
Huazhu(1) |
| |
Legacy
DH(2) |
| ||||||||||||||||||||||||
Total hotels in operation
|
| | | | 5,618 | | | | | | 6,669 | | | | | | 120 | | | | | | 7,706 | | | | | | 124 | | | | | | 8,276 | | | | | | 126 | | |
Leased and owned hotels
|
| | | | 688 | | | | | | 681 | | | | | | 72 | | | | | | 662 | | | | | | 76 | | | | | | 631 | | | | | | 79 | | |
Manachised hotels
|
| | | | 4,519 | | | | | | 5,718 | | | | | | 28 | | | | | | 6,797 | | | | | | 27 | | | | | | 7,433 | | | | | | 26 | | |
Franchised hotels
|
| | | | 411 | | | | | | 270 | | | | | | 20 | | | | | | 247 | | | | | | 21 | | | | | | 212 | | | | | | 21 | | |
Total hotel rooms in operation
|
| | | | 536,876 | | | | | | 628,135 | | | | | | 24,027 | | | | | | 728,143 | | | | | | 25,073 | | | | | | 772,227 | | | | | | 25,262 | | |
Leased and owned hotels
|
| | | | 87,465 | | | | | | 90,942 | | | | | | 13,371 | | | | | | 91,284 | | | | | | 14,264 | | | | | | 90,034 | | | | | | 14,939 | | |
Manachised hotels
|
| | | | 418,700 | | | | | | 515,338 | | | | | | 5,630 | | | | | | 617,340 | | | | | | 5,390 | | | | | | 666,197 | | | | | | 5,196 | | |
Franchised hotels
|
| | | | 30,711 | | | | | | 21,855 | | | | | | 5,026 | | | | | | 19,519 | | | | | | 5,419 | | | | | | 15,996 | | | | | | 5,127 | | |
Total hotel room-nights available
for sale(3) |
| | | | 171,660,048 | | | | | | 193,819,296 | | | | | | 6,488,185 | | | | | | 234,841,153 | | | | | | 8,203,832 | | | | | | 173,268,776 | | | | | | 6,530,470 | | |
Leased and owned hotels
|
| | | | 32,018,639 | | | | | | 31,286,112 | | | | | | 3,998,572 | | | | | | 32,818,789 | | | | | | 4,933,508 | | | | | | 21,539,520 | | | | | | 3,941,387 | | |
Manachised hotels
|
| | | | 130,860,614 | | | | | | 154,743,646 | | | | | | 1,439,155 | | | | | | 195,076,643 | | | | | | 1,681,517 | | | | | | 147,927,085 | | | | | | 1,280,393 | | |
Franchised hotels
|
| | | | 8,780,795 | | | | | | 7,789,583 | | | | | | 1,050,458 | | | | | | 6,945,721 | | | | | | 1,588,807 | | | | | | 3,802,171 | | | | | | 1,308,690 | | |
| | |
As of September 30, 2022
|
| |||||||||||||||||||||
| | |
Actual
|
| |
As Adjusted(1)
|
| ||||||||||||||||||
| | |
RMB
|
| |
US$
|
| |
RMB
|
| |
US$
|
| ||||||||||||
| | |
(In millions, except for share and per share data)
|
| |||||||||||||||||||||
Long-term debt (non-current)
|
| | | | 6,091 | | | | | | 856 | | | | | | 6,091 | | | | | | 856 | | |
Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary shares
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Treasury stock
|
| | | | (441) | | | | | | (62) | | | | | | (441) | | | | | | (62) | | |
Additional paid-in capital
|
| | | | 10,127 | | | | | | 1,424 | | | | | | 11,930 | | | | | | 1,677 | | |
Retained deficit
|
| | | | (1,076) | | | | | | (151) | | | | | | (1,076) | | | | | | (151) | | |
Accumulated other comprehensive income
|
| | | | 70 | | | | | | 10 | | | | | | 70 | | | | | | 10 | | |
Total H World Group Limited shareholders’ equity
|
| | | | 8,680 | | | | | | 1,221 | | | | | | 10,483 | | | | | | 1,474 | | |
Non-controlling interests
|
| | | | 83 | | | | | | 12 | | | | | | 83 | | | | | | 12 | | |
Total equity
|
| | | | 8,763 | | | | | | 1,233 | | | | | | 10,566 | | | | | | 1,486 | | |
Total capitalization(2)
|
| | | | 14,854 | | | | | | 2,089 | | | | | | 16,657 | | | | | | 2,342 | | |
| | |
Per ordinary share
|
| |
Per ADS
|
| ||||||
Assumed public offering price
|
| | | US$ | 4.38 | | | | | US$ | 43.80 | | |
Net tangible book value per share as of September 30, 2022
|
| | | US$ | (0.07) | | | | | US$ | (0.74) | | |
Increase in net tangible book value per share after this offering
|
| | | US$ | 0.08 | | | | | US$ | 0.82 | | |
As adjusted net tangible book value per share after this offering
|
| | | US$ | 0.01 | | | | | US$ | 0.08 | | |
Amount of dilution in net tangible book value to new investors in this offering
|
| | | US$ | 4.37 | | | | | US$ | 43.72 | | |
| | |
ADSs purchased
|
| |
Total consideration
|
| |
Average
price per ADS |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
(In millions) |
| |
Percent
|
| ||||||||||||||||||
Existing shareholders
|
| | | | 310,926,586 | | | | | | 98.1% | | | | | US$ | 1,423 | | | | | | 84.6% | | | | | US$ | 4.58 | | |
New investors
|
| | | | 5,936,073 | | | | | | 1.9% | | | | | US$ | 260 | | | | | | 15.4% | | | | | US$ | 43.80 | | |
Total | | | | | 316,862,659 | | | | | | 100.0% | | | | | US$ | 1,683 | | | | | | 100.0% | | | | | | | | |
Underwriters
|
| |
Number of ADSs
|
| |||
Goldman Sachs (Asia) L.L.C.
|
| | | | | | |
UBS Securities LLC
|
| | | | | | |
Total
|
| | | | | |
Paid by Us
|
| |
No Exercise
|
| |
Full Exercise
|
|
Per ADS(1)
|
| |
US$
|
| |
US$
|
|
Total
|
| |
US$
|
| |
US$
|
|
| | | | | 1 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 19 | | | |
| | | | | 25 | | | |
| | | | | 26 | | | |
| | | | | 34 | | | |
| | | | | 44 | | | |
| | | | | 46 | | | |
| | | | | 47 | | | |
| | | | | 48 | | | |
| | | | | 51 | | | |
| | | | | 52 | | | |
| | | | | 53 | | | |
| | | | | 54 | | |
| | |
For the years ended December 31,
|
| |
For the nine
months ended September 30, 2022 |
| ||||||||||||||||||
Cash flows between subsidiaries and VIEs
|
| |
2019
|
| |
2020
|
| |
2021
|
| |||||||||||||||
Loans from subsidiaries to the VIEs under the contractual arrangements
|
| | | | 5 | | | | | | 5 | | | | | | — | | | | | | 1 | | |
Cash received by the VIEs from subsidiaries for
services |
| | | | 34 | | | | | | 29 | | | | | | 34 | | | | | | 20 | | |
Loans to subsidiaries by the VIEs
|
| | | | (8) | | | | | | (14) | | | | | | (21) | | | | | | (2) | | |
Repayment of loans by subsidiaries
|
| | | | — | | | | | | 3 | | | | | | 7 | | | | | | 5 | | |
Cash flows between holding company and subsidiaries(1)
|
| | | | 2019 | | | | | | 2020 | | | | | | 2021 | | | | | | 2022 | | |
Loans to subsidiaries
|
| | | | (1,039) | | | | | | (6,267) | | | | | | (1,050) | | | | | | (34) | | |
Repayment of loans by subsidiaries
|
| | | | 9 | | | | | | — | | | | | | — | | | | | | 1,099 | | |
| | |
Taxation
Scenario(1) Statutory Tax and Standard Rates |
| |||
Hypothetical pre-tax earnings in the PRC subsidiaries/VIEs
|
| | | | 100% | | |
Tax on earnings at statutory rate of 25% at WFOE(2) level
|
| | | | (25)% | | |
Amount to be distributed as dividend from WFOE(2) to Hong Kong or Singapore entities
|
| | | | 75% | | |
Withholding tax at standard rate of 10%(3)
|
| | | | (7.5)% | | |
Amount to be distributed as dividend at Hong Kong entities level/Singapore entities
level and net distribution to H World Group Limited(4) |
| | | | 67.5% | | |
|
Service
|
| |
Fees
|
|
| Issuance of ADSs | | | Up to US$0.05 per ADS issued | |
| Cancelation of ADSs | | | Up to US$0.05 per ADS canceled | |
| Distribution of cash dividends or other cash distributions (e.g., sale of rights and other entitlements) | | | Up to US$0.05 per ADS held | |
| Distribution of ADSs pursuant to stock dividends, other free stock distributions or exercise of rights to purchase additional ADSs | | | Up to US$0.05 per ADS held | |
| Distribution of securities other than ADSs or rights to purchase additional ADSs | | | Up to US$0.05 per ADS held | |
| Depositary services | | |
Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary
|
|