Texas Vanguard Oil (NYSE:SVN)

GUANGZHOU, China, July 5, 2013 /PRNewswire/ -- 7 Days Group Holdings Limited (NYSE: SVN; "7 Days Group" or the "Company"), a leading economy hotel chain based in China, today announced the completion of the merger contemplated by the previously announced agreement and plan of merger dated February 28, 2013 (the "Merger Agreement"), by and among the Company, Keystone Lodging Company Limited ("Parent"), Keystone Lodging Acquisition Limited ("Merger Sub"), and Keystone Lodging Holdings Limited ("Holdco"). As a result of the merger, the Company became a wholly owned subsidiary of Parent.

Under the terms of the Merger Agreement, which was approved by the Company's shareholders at an extraordinary general meeting held on June 26, 2013, all of the Company's ordinary shares (including ordinary shares represented by American depositary shares ("ADSs"), each representing three ordinary shares issued) issued and outstanding immediately prior to the effective time of the merger have been cancelled in exchange for the right to receive US$4.60 per ordinary share (a "Share") or US$13.80 per ADS, in each case, in cash, without interest and net of any applicable withholding taxes, except for (a) certain Shares held by each of Mr. Boquan He, Mr. Nanyan Zheng, Happy Travel Limited, Mr. Chien Lee, Ms. Qiong Zhang and Mr. Minjian Shi (collectively, the "Rollover Shareholders") as set forth in a support agreement, dated as of February 28, 2013, entered into by the Rollover Shareholders, Holdco and Parent; (b) Shares (including Shares represented by ADS) beneficially owned by Parent, the Company or any of their respective subsidiaries; and (c) Shares reserved for issuance and allocation pursuant to the Company's share incentive plan, all of which Shares (including ADSs corresponding to such Shares) under (a), (b) and (c) have been cancelled for no consideration.

Registered shareholders and holders of ADSs entitled to the merger consideration will receive a letter of transmittal and instructions on how to surrender their share certificates or the certificates evidencing their ADSs respectively in exchange for the merger consideration and should wait to receive the letter of transmittal before surrendering their certificates. Payment of the merger consideration will be made to surrendering ADS holders as soon as practicable after Citibank, N.A., the Company's ADS depositary, receives the merger consideration.

The Company also announced today that it requested that trading of its ADSs on the New York Stock Exchange (the "NYSE") to be suspended beginning on July 8, 2013. The Company requested that the NYSE file a Form 25 with the Securities and Exchange Commission (the "SEC") notifying the SEC of the delisting of its ADSs on the NYSE and the deregistration of the Company's registered securities. The Company intends to terminate its reporting obligations under the Securities Exchange Act of 1934, as amended, by promptly filing a Form 15 with the SEC. The Company's obligation to file with the SEC certain reports and forms, including Form 20-F and Form 6-K, will be suspended immediately as of the filing date of the Form 15 and will cease once the deregistration becomes effective.

GUANGZHOU, China, June 26, 2013 /PRNewswire/ -- 7 Days Group Holdings Limited (NYSE: SVN; "7 Days Group" or the "Company"), a leading economy hotel chain based in China, announced today that, at an extraordinary general meeting held today, the Company's shareholders voted in favor of the proposal to approve the previously announced agreement and plan of merger datedFebruary 28, 2013 (the "Merger Agreement"), by and among the Company, Keystone Lodging Company Limited ("Parent"), Keystone Lodging Acquisition Limited ("Merger Sub") and Keystone Lodging Holdings Limited ("Holdco"), pursuant to which Merger Sub will merge with and into the Company with the Company surviving the merger as a wholly owned subsidiary of Parent (the "Merger"). Approximately 88.3% of the Company's ordinary shares entitled to vote at the extraordinary general meeting were voted in person or by proxy with respect to the proposal to approve and authorize the Merger Agreement and the Cayman Islands plan of merger and the transactions contemplated by the Merger Agreement, including the Merger, of which approximately 86.0% voted in favor of such proposal.

Completion of the Merger is subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement. The Company will work with the various other parties to the Merger Agreement to satisfy all other conditions precedent to the Merger set forth in the Merger Agreement and complete the Merger as quickly as possible. If and when completed, the Merger would result in the Company becoming a privately held company and its American depositary shares, each representing three ordinary shares of the Company, would no longer be listed on the New York Stock Exchange.

GUANGZHOU, China, May 31, 2013 /PRNewswire/ -- 7 Days Group Holdings Limited (NYSE: SVN) ("7 Days Group" or the "Company"), a leading economy hotel chain based in China, today announced that it has called an extraordinary general meeting of shareholders (the "EGM"), to be held on June 26, 2013 at 10:00 a.m. (Hong Kong time), at 31st Floor, AIA Central, 1 Connaught Road Central, Hong Kong, to consider and vote on, among others, the proposal to authorize and approve the previously announced agreement and plan of merger, dated February 28, 2013 (the "Merger Agreement"), among the Company, Keystone Lodging Holdings Limited (which is the party to the Merger Agreement solely for the limited purposes of Sections 2.02(c) and 2.02(e) thereof), Keystone Lodging Company Limited, and Keystone Lodging Acquisition Limited ("Merger Sub") and the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands, substantially in the form attached as Annex A to the Merger Agreement (the "Plan of Merger") and the transactions contemplated thereby, including the Merger (as defined below).

Pursuant to the Merger Agreement and the Plan of Merger, Merger Sub will be merged with and into the Company (the "Merger") with the Company continuing as the surviving corporation. If completed, the proposed Merger would result in (i) the unaffiliated shareholders receiving US$4.60 per ordinary share and the unaffiliated holders of American depositary shares of the Company (the "ADSs"), each representing three ordinary shares,  receiving US$13.80 per ADS, in each case, in cash, without interest and net of any applicable withholding taxes, (ii) the Company becoming a privately-held company, and (iii) the ADSs no longer being listed on the New York Stock Exchange. The Company's board of directors, acting upon the unanimous recommendation of a special committee of the Company's board of directors composed entirely of independent directors who are unaffiliated with the buyer group and any of the management members of the Company, recommends that the shareholders and ADS holders vote FOR, among others, the proposal to approve the Merger Agreement, the Plan of Merger and the transactions completed thereby, including the Merger.

Shareholders of record at the close of business in the Cayman Islands on June 10, 2013 will be entitled to attend and vote at the EGM and any adjournment thereof. The record date for ADS holders entitled to instruct Citibank, N.A., the ADS depositary, to vote the shares represented by the ADSs is the close of business in New York City on June 3, 2013. Additional information regarding the EGM and the Merger Agreement can be found in the transaction statement on Schedule 13E-3 and the proxy statement attached as Exhibit (a)-(1) thereto, as amended, filed with the U.S. Securities and Exchange Commission (the "SEC"), which can be obtained, along with other filings containing information about the Company, the proposed Merger and related matters, without charge, from the SEC's website (www.sec.gov). Requests for additional copies of the definitive proxy statement should be directed to Innisfree M&A Incorporated, the Company's proxy solicitor, at 1-888-750-5834 (toll-free from the US and Canada) or 1-412-232-3565 (from other countries). SHAREHOLDERS AND ADS HOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE MATERIALS AND OTHER MATERIALS FILED WITH OR FURNISHED TO THE SEC WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE PROPOSED MERGER AND RELATED MATTERS.

The Company and certain of its directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be "participants" in the solicitation of proxies from our shareholders with respect to the proposed Merger. Information regarding the persons who may be considered "participants" in the solicitation of proxies is set forth in the definitive proxy statement and Schedule 13E-3 transaction statement relating to the proposed Merger. Further information regarding persons who may be deemed participants, including any direct or indirect interests they may have, is also set forth in the definitive proxy statement.

This announcement is neither a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or other filings that have been or will be made with the SEC.

GUANGZHOU, China, October 8, 2012 /PRNewswire-FirstCall/ -- 7 Days Group Holdings Limited (NYSE: SVN; "7 Days Group" or the "Company"), a leading economy hotel chain based in China, announced today that it has established a special committee of its board of directors (the "Special Committee") to consider the proposal letter, dated September 26, 2012, from a consortium of investors comprised of the Company's co-founders and co-chairmen of its board of directors, Mr. Boquan He and Mr. Nanyan Zheng, and their respective affiliates, Sequoia Capital China and affiliates of the Carlyle Group (collectively, the "Consortium Members"), to acquire all of the outstanding shares of the Company not currently owned by the Consortium Members in a going private transaction.

The Special Committee is composed of the following independent directors of the Company: Mr. Tan Wee Seng and Mr. Bin Dai. The Special Committee will retain a financial advisor and legal counsel to assist it in its work. The Board of Directors cautions the Company's shareholders that no decisions have been made by the Special Committee with respect to the Company's response to the proposal and there can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated

GUANGZHOU, China, September 27, 2012 /PRNewswire-FirstCall/ -- 7 Days Group Holdings Limited (NYSE: SVN; "7 Days Group" or the "Company"), a leading economy hotel chain based in China, announced today that its board of directors has received a proposal letter dated September 26, 2012 from certain existing shareholders of the Company, including Mr. Boquan He, Mr. Nanyan Zheng and their respective affiliates, and joint sponsors, including the Carlyle Group and Sequoia Capital China and their respective affiliates (collectively, the "Consortium Members"), to acquire all of the outstanding shares of the Company not currently owned by the existing shareholders in a going private transaction (the "Transaction") for US$4.2333 per ordinary share of the Company and US$12.70 per American Depositary share ("ADS", each ADS representing 3 ordinary shares of the Company), as the case may be, in cash, subject to certain conditions.

According to the proposal letter, the Consortium Members intend to form an acquisition vehicle for the purpose of implementing the Transaction, and the Transaction is intended to be financed with a combination of equity capital funded by the Consortium Members and third-party debt. A copy of the proposal letter is attached hereto as Exhibit A.

The Company expects that its board of directors will form a special committee consisting of independent directors (the "Independent Committee") to consider this proposal. The Company also expects that the Independent Committee will retain a financial advisor and legal counsel to assist it in its work. The Company cautions its shareholders and others considering trading in its securities that the board just received the non-binding proposal and no decisions have been made with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

Second Quarter 2012 Financial Highlights

• Total net revenues for the second quarter 2012 increased by 27.3% year-over-year to RMB632.7 million (US$99.6 million).
• Income from operations for the second quarter 2012 was RMB76.2 million (US$12.0 million), a 36.3% year-over-year increase compared to RMB55.9 million in the second quarter 2011. Non-GAAP income from operations for the quarter was RMB82.1 million (US$12.9 million), compared to RMB67.0 million for the same period in 2011.
• EBITDA for the second quarter 2012 was RMB158.9 million (US$25.0 million), an increase of 35.6% year-over-year from RMB117.2 million for the same period in 2011. Adjusted EBITDA for the quarter was RMB164.8 million (US$25.9 million), an increase of 28.4% year-over-year. EBITDA margin was 25.1% compared to 23.6% in the same period in 2011. Adjusted EBITDA margin was 26.0%, compared to 25.8% in the prior year period.
• Net income attributable to the Company's ordinary shareholders was RMB55.6 million (US$8.7 million), a 23.3% year-over-year increase compared to RMB45.1 million for the same period in 2011. Non-GAAP net income attributable to the Company's ordinary shareholders was RMB61.4 million (US$9.7 million), representing a year-over-year increase of 9.5%.
• Basic and diluted earnings per ADS were RMB1.11 (US$0.18) and RMB1.11 (US$0.17), respectively. Non-GAAP basic and diluted earnings per ADS were RMB1.23 (US$0.19) and RMB1.22 (US$0.19), respectively.
• Net operating cash inflow was RMB189.5 million (US$29.8 million), compared to RMB132.8 million in the same period in 2011.

Mr. Yuezhou Lin, 7 Days Group's Chief Executive Officer and Director, commented, "As announced during the second quarter 2012, we have begun to implement the strategy to increase emphasis towards our managed hotel portfolio to maximize our growth opportunities in China's expanding economy hotel industry. By adopting a more asset-light growth strategy, we are leveraging our leading hotel operating platform, best-in-class proprietary e-Commerce system and industry leading loyalty program to take advantage of the lower risk, less capital intensive and more profitable nature of the managed hotel business model. We believe that this approach will allow us to deliver increasing profitability and stronger free cash flow over time. With a robust pipeline of managed hotels contracted but not yet opened, and continuing strong demand from prospective managed hotel partners, we remain confident in our ability to deliver sustainable earnings growth in the coming quarters and beyond."

Guidance

The Company expects to generate total net revenues in the range of RMB670 million to RMB685 million in the third quarter 2012. These forecasts reflect the Company's current and preliminary view, which is subject to change.

GUANGZHOU, China, June 12, 2012 /PRNewswire-Asia-FirstCall/ -- 7 Days Group Holdings Limited ("7 Days Group" or the "Company") (NYSE: SVN), a leading economy hotel chain based in China, today announces an update on its business strategy and share repurchase program.

Share Repurchase Program:

In light of the Company's performance to date, its current market valuation and confidence in the long-term growth opportunities of the economy hotel industry in China, the Board of Directors has approved a share repurchase plan. Under the plan, the Company is authorized to repurchase up to US$25M million worth of outstanding American Depositary Shares, or ADSs, over the next 12 months, from time to time, in open-market purchases on the NYSE Euronext at prevailing market prices, in trades pursuant to a Rule 10b5-1 and 10b-18 repurchase plan, or privately negotiated transactions in accordance with applicable federal securities laws. The timing and extent of any purchases will be determined by the Company's management, in its discretion, and will depend upon market conditions, the trading price of 7 Days Group's ADSs and other factors, including customary restrictions on share repurchases. 7 Days Group expects to implement this share repurchase program in a manner consistent with market conditions and the interest of the shareholders. The Company will finance the repurchase with the Company's cash on hand and cash generated from operations.

Mr. Alex Nanyan Zheng, 7 Days Group Co-Chairman of the Board of Directors and Chief Executive Officer, commented, "The shift in our new hotel opening schedule for 2012 reflects the strong demand from managed hotel partners who are drawn to 7 Days Group due to the power of our brand and the strength of our operating platform. While we have expanded at a rapid pace in recent years, we have not sacrificed our commitment to providing guests with a high quality overnight experience. This is evidenced by the fact that 7 Days Inn was recently named as the most influential brand in the economy hotel industry in China by the China Brand Power Index, an affiliate of the Ministry of Industry and Information Technology.

First Quarter 2012 Financial Highlights

• Total net revenues for the first quarter 2012 increased by 29.6% year-over-year to RMB545.0 million(US$86.5 million)[1].
  
• Income from operations for the first quarter 2012 was RMB23.3 million (US$3.7 million), compared toRMB7.4 million in the first quarter 2011. Non-GAAP income from operations for the quarter was RMB32.2 million (US$5.1 million), compared to RMB18.2 million for the same period in 2011.
  
• EBITDA for the first quarter 2012 was RMB105.8 million (US$16.8 million), an increase of 69.1% year-over-year from RMB62.5 million for the same period in 2011. Adjusted EBITDA for the quarter was RMB114.6 million (US$18.2 million), an increase of 56.4% year-over-year. EBITDA margin was 19.4% compared to 14.9% in the same period in 2011. Adjusted EBITDA margin was 21.0%, compared to 17.4% in the prior year period.
  
• Net income attributable to the Company's ordinary shareholders was RMB19.0 million (US$3.0 million), compared to RMB4.3 million for the same period in 2011. Non-GAAP net income attributable to the Company's ordinary shareholders was RMB27.8 million (US$4.4 million), representing a year-over-year increase of 84.3%.
  
• Basic and diluted earnings per ADS[2] were RMB0.38 (US$0.06). Non-GAAP basic and diluted earnings per ADS were RMB0.56 (US$0.09) and RMB0.55 (US$0.09), respectively.
  
• Net operating cash inflow was RMB93.8 million (US$14.9 million), compared to RMB97.5 million in the same period in 2011.

Mr. Alex Nanyan Zheng, 7 Days Group's Co-Chairman of the Board of Directors and Chief Executive Officer, commented, "We are pleased to report solid results for the first quarter of 2012. Our financial performance was in line with our expectations and was mainly driven by the performance of our existing hotels as well as new hotel openings. Our outlook for the remainder of 2012 is favorable, as we believe the rapid expansion of our hotel portfolio will help to drive continued growth in revenue and profitability, which we believe will ultimately create greater value for our shareholders."

Guidance

The Company expects to generate total net revenues in the range of RMB630 million to

RMB640 million in the second quarter 2012. These forecasts reflect the Company's current and preliminary view, which is subject to change.

Fourth Quarter 2011 Financial Highlights

• Total net revenues for the fourth quarter 2011 increased by 24.3% year-over-year to RMB545.6 million(US$86.7 million)(1).
• Income from operations for the fourth quarter 2011 was RMB34.9 million (US$5.5 million), compared toRMB32.1 million in the fourth quarter 2010. Non-GAAP income from operations for the quarter was RMB44.5 million (US$7.1 million), compared to RMB41.1 million for the same period in 2010.
• EBITDA for the fourth quarter was RMB108.4 million (US$17.2 million), an increase of 27.9% year-over-year from RMB84.7 million for the same period in 2010. Adjusted EBITDA for the quarter was RMB118.0 million(US$18.7 million), an increase of 25.9% year-over-year. EBITDA margin was 19.9% compared to 19.3% in the same period in 2010. Adjusted EBITDA margin was 21.6%, compared to 21.3% in the prior year period.
• Net income attributable to the Company's ordinary shareholders for the quarter was RMB35.2 million(US$5.6 million), compared to RMB22.0 million for the same period in 2010. Non-GAAP net income attributable to the Company's ordinary shareholders for the quarter was RMB44.8 million (US$7.1 million), representing a year-over-year increase of 44.6%.
• Basic and diluted earnings per ADS(2) were RMB0.70 (US$0.11) and RMB0.70 (US$0.11) respectively. Non-GAAP basic and diluted earnings per ADS were RMB0.90 (US$0.14) and RMB0.89 (US$0.14), respectively.
• Net operating cash inflow was RMB106.1 million (US$16.9 million), compared to RMB97.8 million in the same period in 2010.

Mr. Alex Nanyan Zheng, 7 Days Group's Chief Executive Officer commented, "We are pleased to report a strong fourth quarter with financial results exceeding our guidance, concluding a solid year of steady strategic and operational progress. With our healthy pipeline and increasing economies of scale, we expect to keep our fast expansion pace in 2012, which we believe will further solidify our position as the market leader in the economy hotel industry."

Third Quarter 2011 Results

• Gross revenues for the third quarter of 2011 were RMB574.0 million (US$90.0 million), representing a year-over-year increase of 33.9% from RMB428.5 million in the third quarter of 2010 and an increase of 8.7% from RMB528.1 million in the second quarter of 2011.
• Non-GAAP basic and diluted earnings per ADS were RMB1.13 (US$0.18) and RMB1.12 (US$0.18), respectively, for the third quarter of 2011, compared to non-GAAP basic and diluted earnings per ADS of RMB1.24 and RMB1.23, respectively, in the same period of 2010 and basic and diluted earnings per ADS of RMB1.12 and RMB1.11, respectively, in the second quarter of 2011.

Second Quarter 2011 Financial Highlights

• Total net revenues increased by 41.2% to RMB497.1 million (US$76.9 million)(1), compared to RMB352.2 million for the same period in the fiscal year 2010.
  
• Income from operations was RMB55.9 million (US$8.7 million), compared to RMB43.8 million in the second quarter of 2010. Non-GAAP income from operations increased by 46.6% to RMB67.0 million (US$10.4 million) from RMB45.7 million for the same period in the fiscal year 2010.
  
• EBITDA was RMB117.2 million (US$18.1 million), compared to RMB84.6 million for the same period in 2010. Adjusted EBITDA increased by 48.2% year-over-year to RMB128.3 million (US$19.8 million). EBITDA margin was 23.6% compared to 24.0% in the same period in the fiscal year 2010. Adjusted EBITDA margin was 25.8% compared to 24.6% in the same period in the fiscal year 2010.
  
• Net income attributable to the Company's ordinary shareholders increased by 49.4% to RMB45.1 million (US$7.0 million) from RMB30.2 million for the same period in the fiscal year 2010. Non-GAAP net income increased by 74.8% to RMB56.1 million (US$8.7 million) from RMB32.1 million for the same period in the fiscal year 2010.
  
• Basic and diluted earnings per ADS(2) were RMB0.90 (US$0.14) and RMB0.89 (US$0.14) respectively.

• Non-GAAP basic and diluted earnings per ADS were RMB1.12 (US$0.17) and RMB1.11 (US$0.17) respectively.

• Net operating cash inflow was RMB132.8 million (US$20.5 million), an increase of 44.9% compared to RMB91.6 million in the same period in the fiscal year 2010.

Mr. Alex Nanyan Zheng, 7 Days Group's Chief Executive Officer and Director, commented, "We are pleased to report solid results for the second quarter of 2011, which exceeded our expectations. Our strong financial and operating performance was supported by the continued expansion of our hotel portfolio. As we continue to execute our expansion strategy, we are well-positioned to deliver further growth and development, while remaining committed to providing our guests with a high quality and comfortable experience at a competitive price."

Mr. Eric Haibing Wu, 7 Days Group's Chief Financial Officer, added, "In the second quarter of 2011, we delivered a strong set of financial results with both top- and bottom-line growth on a year-over-year basis. We will continue to leverage our growing economies of scale and competitive advantages as we expand our hotel chain."

Guidance

The Company expects to generate total net revenues in the range of RMB525 million to RMB535 million in the third quarter of 2011, representing year-over-year growth of 30% to 32%. The Company reiterates its full year revenue guidance and expects full-year 2011 total net revenues from organic growth to increase 32% to 36% over the full-year 2010. The forecasts reflect the Company's current and preliminary view, which is subject to change.

Historically, we had incurred operating losses each quarter and only started to achieve income from operations in the second quarter of 2009. Our principal sources of liquidity have been our issuance of ordinary shares, preferred shares, and senior notes and warrants through private placements, issuance of our ADSs in our IPO, as well as borrowings from related party and third-party lenders. As of December 31, 2010, we had cash of RMB388.8 million (US$58.9 million).

We intend to fund our capital expenditures with cash generated from our operating activities, existing cash balances and additional domestic bank financing activities.

We expect to need additional capital to implement our growth strategy, remain competitive or expand our hotel network. Our ability to obtain additional capital on acceptable terms is subject to a variety of uncertainties.

First Quarter Results:

• Total net revenues increased by 39.2% to RMB420.7 million (US$64.2 million)(1), compared to RMB302.2 million for the same period in the fiscal year 2010.
• Income from operations was RMB7.4 million (US$1.1 million), compared to RMB12.8 million in the first quarter of 2010. Non-GAAP income from operations increased by 16.4% to RMB18.2 million (US$2.8 million) from RMB15.6 million for the same period in the fiscal year 2010.
• EBITDA was RMB62.5 million (US$9.5 million), compared to RMB52.9 million for the same period in 2010. Adjusted EBITDA increased by 31.6% year-over-year to RMB73.3 million (US$11.2 million). EBITDA margin was 14.9% as compared to 17.5% in the same period in the fiscal year 2010. Adjusted EBITDA margin was 17.4% compared to 18.4% in the same period in the fiscal year 2010.
• Net income attributable to the Company's ordinary shareholders was RMB4.3 million (US$0.7 million), compared to RMB5.7 million for the same period in the fiscal year 2010. Non-GAAP net income was RMB15.1 million (US$2.3 million), compared to RMB8.5 million for the same period in the fiscal year 2010.
• Basic and diluted earnings per ADS(2) were RMB0.09 (US$0.01). Non-GAAP basic and diluted earnings per ADS were RMB0.30 (US$0.05

Mr. Alex Nanyan Zheng, 7 Days Group's Chief Executive Officer and Director, commented, "I am pleased to report another solid quarter of growth in the first quarter of 2011, which demonstrates the Company's rapid expansion and leadership in China's economy hotel industry. During the quarter, we continued to capitalize on favorable industry trends and ongoing growth in China's travel and lodging sector in order to expand our hotel chain, enhance customer loyalty and grow our customer base. Looking forward, we will make continuous efforts to enhance our customers' experience across our hotel chain."

The Company expects to generate total net revenues in the range of RMB475 million to RMB485 million in the second quarter of 2011, representing year-over-year growth of 35% to 38%. The forecasts reflect the Company's current and preliminary view, which is subject to change.

Fourth Quarter Results:

• Total net revenues increased by 41.4% to RMB439.1 million (US$66.5 million) (1), compared to RMB310.5 million for the same period in the fiscal year 2009.
• Income from operations was RMB32.1 million (US$4.9 million), compared to RMB26.8 million in the fourth quarter of 2009. Non-GAAP income from operations increased by 38.9% to RMB41.1million (US$6.2 million) from RMB29.6 million for the same period in the fiscal year 2009.
• EBITDA was RMB84.7 million (US$12.8 million), compared to a loss of RMB30.1 million for the same period in 2009.
• Adjusted EBITDA increased by 35.6% year-over-year to RMB93.7 million (US$14.2 million).
• Net income attributable to the Company's shareholders was RMB22.0million (US$3.3 million), compared to a net loss of RMB93.4 million for the same period in the fiscal year 2009. Non-GAAP net income was RMB31.0million (US$4.7 million), compared to RMB5.8 million for the same period in the fiscal year 2009.
• Basic and diluted earnings per ADS(2) were RMB0.45 (US$0.07). Non-GAAP basic and diluted earnings per ADS were RMB0.61 (US$0. 09).and RMB0.60 (US$ 0.09), respectively

"The impressive growth we achieved in 2010 has further strengthened the 7 Days Inn brand, and we are now the second largest economy hotel chain in China in terms of both number of hotels and rooms. Our success is attributable in large part to a deep understanding of our customer base and a consistent focus on catering to their core needs."

"We continue to see significant growth opportunities in the economy hotel segment in China and we aim to accelerate our business development efforts in 2011, particularly within our managed hotel portfolio. We have made significant and rapid progress in developing our managed hotels, and thus far we are encouraged by the performance of our newly opened managed hotels. For 2011, in light of the favorable market conditions and our successful expansion efforts to date, we are revising our initial goal of opening 240 hotels and now target to open 290 new properties, including 80 leased-and-operated hotels and 210 managed hotels."

The Company expects to generate total net revenues in the range of $61.6 million to $62.4 million in the first quarter 2011. 7 Days Group expects full-year 2011 total net revenues to grow 32% to 36% over the full-year 2010. The forecasts reflect the Company's current and preliminary view, which is subject to change.

Third Quarter 2010 Financial Highlights

• Total net revenues increased by 30.9% to RMB405.5 million (US$60.6 million), compared to RMB309.7 million for the same quarter in 2009.

• Net income attributable to the Company's shareholders wasRMB59.8 million (US$8.9 million), compared to RMB3.4 millionfor the third quarter 2009.  

• Non-GAAP net income was RMB61.7 million (US$9.2 million), compared to RMB9.6 million for the third quarter 2009.

• Basic and diluted earnings per ADS were RMB1.20(US$0.18) and RMB1.19(US$0.18), respectively. Non-GAAP basic and diluted earnings per ADS were RMB1.24(US$0.19) and RMB1.23(US$0.18), respectively.

The Company expects to generate total net revenues in the range of RMB430 million to RMB440 million in the fourth quarter 2010. The forecasts reflect the Company's current and preliminary view, which is subject to change.