"Good Special Sale responds to new franchises being halted: Closing stores is a normal business choice for franchisees or directly operated stores. The annual closure rate does not exceed 5%."

Recently, it was exposed that HoteMai has been gradually closing its stores in core cities, including popular business districts in Guangzhou, Changsha, Hangzhou, Beijing, and others. The news stated that the number of new stores opened by the company this year has significantly decreased to only a few dozen, and some cities are no longer accepting new franchisees. In response, HoteMai officials stated that the closure of stores is a normal business decision made by franchisees or directly operated stores, and the overall closure rate for the year does not exceed 5%. Branches operated by high-quality franchisees, as well as high-quality new franchisees and directly operated stores, are still continuing to expand, with continuous growth in new franchise applications. Regarding the claim of "some cities stopping new franchise applications", HoteMai stated that the pace of franchise expansion has indeed slowed down voluntarily, but it is not a complete halt to new franchise applications. HoteMai's investment personnel disclosed that the initial capital required to open a HoteMai store is typically 400,000 to 500,000 RMB, with an overall gross profit margin of around 30% and an average payback period of approximately 18 months. In some cities, the number of stores has already reached a high level, so the company is becoming more strict and cautious in selecting store locations and cooperation with new franchisees, but they are still accepting new franchise applications.