Huatian Hotel Group Co., Ltd. (SZ: 000428, last closing price: CNY 3.39, market cap: CNY 3.45 billion) announced on the evening of November 26 that its Board Secretary position has remained vacant for three months following the resignation of former Secretary Shen Zhiming. During this period, the CFO temporarily assumed the role, and now Chairman Yang Hongwei will take over the responsibilities.
Notably, the company has reported 11 consecutive years of net losses (2014–2024) on a non-GAAP basis, with further declines in performance for the first three quarters of 2025. Net operating cash flow plummeted by 61.57% year-over-year. The prolonged absence of a Board Secretary and persistent financial losses highlight the urgent need for Huatian Hotel to address its operational and governance challenges.
As a veteran hotel group listed in 1996, Huatian Hotel has struggled to keep pace with industry transformations. Its core business remains hotel services, supplemented by trading and lifestyle services. While the company stated it would expedite the appointment of a new Board Secretary, the three-month vacancy exposes governance weaknesses. The Board Secretary serves as a critical liaison between the company, investors, and regulators, and its absence may hinder timely and accurate disclosures, potentially eroding market confidence.
Financially, the 11-year loss streak and sharp declines in Q1–Q3 2025 underscore Huatian Hotel’s struggles in a fiercely competitive market. The hospitality industry demands rapid adaptation to shifting demand, requiring investments in brand upgrades, service quality, and digital transformation. Additionally, cost optimization and operational efficiency improvements are essential to reversing its performance.
Whether Huatian Hotel can navigate these dual challenges—leadership gaps and financial pressure—depends on its next steps. The company must accelerate the Board Secretary appointment, strengthen governance, and implement measures to enhance competitiveness and sustainable growth. Otherwise, prolonged losses and governance shortcomings may further undermine market trust, deepening its crisis.
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