At its 1H 2026 online results briefing, Tongqinglou said current profit pressure
is temporary, driven by a concentrated opening of Fumao hotels that has raised
opening costs, depreciation and finance expenses, together with a temporary
softening in dining and banquet demand — a threefold transitional effect rather
than a deterioration in core operations. New Fumao properties typically need a
1-2 year ramp; operating data are improving and some sites have exited the ramp
and turned profitable. The company expects the Fumao segment to progressively
release earnings over the next 1-2 years, with existing projects largely
completing ramp and forming a stable profit model within 3-5 years to support
its long-term strategy.
