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spk09: Ladies and gentlemen, thank you for standing by, and welcome to the EHO Lifestyle Holdings Third Quarter 2020 Free Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Alison Zhang, Director of Investor Relations. Please go ahead, ma'am.
spk07: Thank you, operator. Good morning and good evening, everyone. Welcome to our third quarter 2023 earnings call. Joining us today are our founder, chairman, and CEO, Mr. Wang Haijun, and our co-chief financial officers, Mr. Wang Shoudong and Mr. Wu Jianfeng. Before we continue, please be aware that today's discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties. and actual results may differ significantly from what is stated or implied in our comments today. The company is not obligated to update any forward-looking statements, except as required by applicable laws. Additionally, during this call, our management will discuss certain non-GAAP financial measures solely for comparison purposes. For a clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results, please refer to the earnings release issued earlier today. Furthermore, a webcast replay of this conference call will be available on our website at ir.yaduo.com. Now, I will turn the call over to Mr. Wang, our CEO.
spk06: Thank you, Sijia. Hello, everyone. Thank you for participating in the third quarter of the Yaduo Group's call conference in 2023. We are very happy to see that Yaduo continues to gain strong growth in the third quarter. Thank you, Allison. Hello, everyone, and thank you for joining Atul's third quarter 2023 earnings call today. We are delighted to report another robust quarter.
spk04: Our unremitting pursuit of growing to 2,000 premier hotels nationwide by 2025 while establishing the Chinese experience as the industry benchmark, along with the continuous expansion of our brand influence, enabled us to capture the growth opportunities arising from both business travel and the peak leisure travel season. As such, we achieved tremendous breakthroughs across each of our business lines.
spk06: 下面我将展开介绍各项业务的具体表现。 Now I would like to discuss our performance in detail. 首先是酒店业务。 三季度,出行及住宿需求快速增长, 尤其是暑期需求显度上升。 三季度,Roller Park达到424元人民币。 The recovery rate reached 118% in the same period of 2019. The recovery rate of July, August and September reached 122%, 116% and 115%. During the Mid-Autumn Festival and National Day, ADR and OCC maintained a strong growth. Let's begin with our hotel business. Travel and accommodation demand maintained solid growth momentum in the third quarter, highlighted by a notable uptick during the summer season.
spk04: Accordingly, our third quarter's RAVPAR increased to a record high of RMB 424, and recovery rate rose to 118% of 2019's level, with July, August and September reaching 122%, 116% and 115% respectively. Moreover, Our ADR and OCC maintained their robust growth momentum during the Mid-Autumn Festival and the National Day holiday period, increasing by 14.6% and 7.2%, respectively, compared with the same period in 2019. Together, they boosted our RevPars recovery rate for the period to 123% of 2019's level.
spk06: Meanwhile, our mature hotels in operation for more than 18 months sustained their excellent performance,
spk04: Their same hotel RAVPAR recovery rate reached 118% of 2019's level in the third quarter, in line with the overall performance of our hotel business, highlighting the market's recognition of Ator's brand, as well as outstanding efficiency across our business management and operations.
spk06: We will continue to speed up our opening process. Ator has opened 81 hotels in 3 seasons. As of the end of the third quarter, our hotel network has reached 1,112. At the same time, thanks to the continuous consolidation of products and brand strength, our third quarter continues to maintain a fast contract market. As of September 30th, the number of hotel developers in the corridor has reached 577, which is more than 60% of the total growth.
spk04: We continued to accelerate our hotel network expansion with 81 new openings in the third quarter, driving our hotel network to reach 1,112 hotels as of the end of September. Meanwhile, propelled by our mounting competitiveness across products and brand, our third quarter's new signings grew rapidly and our pipeline continued to flourish. As of the end of September, our pipeline had soared to 577 hotels, up by more than 60% year-over-year.
spk06: Our mid-range product, QingJu 3.0, has continued to gain customers' trust since its launch in February. This quarter, QingJu 3.0 has a total of 25 new projects, with a turnover of more than 15%. By the end of September, QingJu 3.0 has reached 13 awards in opening stores, mainly located in the core shopping malls in the upper two-tier cities. As a new product in the mid-range hotel market, QingJu 3.0 has successfully gained the recognition of consumers by meeting the aesthetic design of young people and the consistent service experience in Asia. The performance of the business is also extremely competitive in the shopping malls. Since opening, These stores quickly break through the key operating indicators in all directions. The OCC has an average of 78.8% in the fourth week of opening. The RPA is more than 340 yuan. We believe that QingJu 3.0 has well met the needs of young business customers for high-quality accommodation experiences. At the same time, we have captured the opportunity to upgrade the property in the core business circle.
spk04: A tour light 3.0, our mid-scale offering has continued to gain favor among franchisees since its launch in February. A total of 25 tour light 3.0 projects were signed over the quarter, constituting more than 15% of the quarter's total signings. By the end of September, we had opened 13 Atul Light 3.0 hotels, primarily located in core business districts in higher tier cities. As a new hotel offering in the mid-scale market, Atul 3.0 has won broad market recognition for its stylish design as well as Atul's premier experience, resulting in a strong initial showing. In fact, These hotels have performed exceptionally well across key operating metrics since their openings. In their fourth week of operation, average OCC reached 78.8%, while RAVPAR surpassed RMB 340. We believe Attour Light 3.0 is well-positioned to meet young business travelers' demands for high-quality accommodation experiences while capturing the opportunities arising from property upgrades in core business districts. Moving forward, we anticipate it will rapidly grow to scale.
spk06: Moreover, we remain dedicated to product innovation to better meet our customers' evolving demands. On November 11th, we officially launched our brand new upper-mid-scale flagship product,
spk04: a tour 4.0 with nature. Inspired by Yaduo Village, this product revolves around the idea of natural tranquility, providing customers with immersive experiences infused with contentment and relaxation.
spk06: The Yaduo 4.0 factory is a symbol of the origin of the Yaduo village's old tea tree, bringing nature and quiet back to the urban space. The open-air public area design and the new seating and meeting space well meet the needs of the guests outside the accommodation.
spk04: Elegantly outfitted with images of the brand's distinctive hallmark, Yaduo Village's tea tree, a 204.0's lobby is specially designed to reintroduce nature and serenity into urban settings. Its new chatting room offers a practical, functional open area to work and socialize beyond accommodations.
spk06: In addition, we have upgraded the operating standards and hardware facilities of Yaduo 4.0. In Yaduo 4.0, we have opened a nutrition breakfast area, and carefully selected rice and millet from the Northeast non-transplanted gene broad beans and yellow soil highlands. Fresh ingredients are made on the spot, provide nutrition, health, and peace to our customers. At the same time, we cooperate with two luxury brands to create a comfortable luxury experience through the sense of quality. At Hanchu Fitness, we are equipped with a global top brand sports equipment to provide users with a safer, smoother, and more efficient sports experience.
spk04: Additionally, we have fully upgraded Attour 4.0 service standards, amenities, and facilities. In our Attour 4.0 hotels, we added a special breakfast area providing more diverse options for an exceptionally nutritious and healthy breakfast with carefully selected high-quality ingredients such as non-GMO soybeans from Northeast China, millet from Meiji County on the lowest plateau, and many other fresh components. Furthermore, we will cooperate with two niche luxury bathing brands to create a comforting experience through their bath products' luxurious textures and scents. We also outfitted our gym with equipment from Precor, one of the world's top exercise facility brands to provide our customers a safer and more effective exercise experience in our well-appointed fitness facilities.
spk06: 除了全面升级的工区设计和运营服务标准外, 我们在4.0版本中特别推出了亚朵深睡楼层。 专属的楼层设计搭配独特的走廊灯光引导和SAR核的相分, Make the whole floor full of quiet and comfortable atmosphere Each deep sleep guest room uses an infinite lighting system Introduce a deep sleep smart light control and fully upgrade the sound insulation design At the same time, we use the most representative deep sleep series products on the planet in the guest room Perfectly balanced in terms of support, wrapping and temperature
spk04: beyond the enhanced public area design and service standards, we added an innovative exclusive deep sleep floor to our Attour 4.0 hotels. This debut concept features stylishly designed corridors lit with a special lighting guidance system, as well as our SAF-branded fragrance permeating the entire floor to create a serene atmosphere. Each room on the floor is equipped with a stepless dimming system, one-click-to-sleep smart light controls, and enhanced sound insulation, delivering the ultimate in serenity for optimal sleep. Meanwhile, we provide signature products from Attour Planet's Deep Sleep series in each room to create a perfect balance among support, envelopment, and pleasant temperature control, further ensuring users relaxing sleep experience.
spk06: In short,
spk04: The product innovation we have integrated throughout Atul 4.0 is a testament to our relentless pursuit of providing the ultimate accommodation experience. We are confident that Atul 4.0 will set a new industry benchmark for customer experience in the upper mid-scale market, propelling industry development and further solidifying Atul's market-leading competitiveness.
spk06: Next is our member business. Through the continuous upgrade of membership services and exclusive rights, our A-Card membership system is also continuously creating value for users. We have gradually integrated hotel accommodation, retail, catering, culture, art, sports, and other high-end rights to achieve organic expansion of membership ecological boundaries. The brand's popularity of A-Card continues to increase and quickly expand the membership scale.
spk04: Moving now to our Prime Memberships. Through our persistent efforts to upgrade our membership services and exclusive privileges, our ACARD membership program continues to provide outstanding value for our customers. We have progressively expanded our membership network to include hospitality, retail, dining, culture, art, sports, and various other premium benefits. Consequently, our ACARD membership has gained significant recognition and popularity, resulting in substantial growth of our member base. As of the end of September, the total number of individuals who have enrolled in our ACARD membership program exceeded 54 million.
spk06: We also continue to explore the opportunity of brand business cooperation to strengthen the value perception of A-card users. In October, as a partner of Beijing Marathon, Yaduo provided a series of competition exclusive rights to Yaduo members, including a special breakfast, energy supplement package and other special dishes and service. In the future, we will also use brand business cooperation
spk04: We are continuously exploring opportunities for cross-industry collaboration to enhance ACAR's value perception among our members. In October, as an official partner of the Beijing Marathon, Ator extended a series of proprietary rights and benefits to our members. including direct participant access to the Beijing Marathon and an array of value-added services such as special breakfasts and energy supply packs. Moving forward, we will continue to broaden our membership benefits and cover more diverse vertical interests through cross-industry exploration, developing more opportunities while building up our membership ecosystem.
spk06: In addition, we will continue to upgrade our A-plus products to better meet the individual needs of members' daily growth, and create a more unique accommodation experience for users. Our deep sleep experience is deep in the hearts of people. In the A-plus, we will get more users' attention with the deep sleep service products representing Wan'an Milk. As the product continues to be enriched and upgraded,
spk04: In addition, we also continued to advance our A-plus service offerings to better meet our A-card customers' ever-growing and diversifying demands and ensure a unique, memorable experience during their stays at a tour. Our signature deep sleep experience is top of mind for many ACard members and our service offerings for achieving deep sleep such as pillow selection and good night milk have witnessed high levels of demand. Our wide selection of high quality offerings effectively enhance the users recognition and stickiness, significantly boosting the overall usage rate of our A-plus services since the beginning of the year. At the same time, our direct sales channels remained effective and strong, even during the peak summer season for leisure travel. Room nights sold through our CRS remained stable, reaching 62.5% in the third quarter. Resilience in both individual and corporate membership channels continued to propel the sustainable growth of our occupancy rate.
spk06: Next is our long-term retail business This quarter, our retail business continues to break through The overall GMV re-creation new high Reached 30.2 billion yuan The same increase is 292% The sales growth of the online channels is very strong The proportion of the overall GMV has been further improved to 80% Double 11 shopping festival just ended The retail business in the scene is re-innovating. Ado Planet has acquired the top-of-the-line sales network of various e-commerce platforms. The GMV of the online third-party platform of Double 11 is more than 250 million. It has increased by more than 600% in the same period last year. It has also increased by more than 140% in this year's 618. It reflects the brand mentality that Ado Planet is constantly strengthening.
spk04: Now I'd like to move on to our scenario-based retail business. We achieved another strong quarter with total GMV reaching a record high of RMB 302 million, increasing significantly by 292% year-over-year. Online sales in particular soared, contributing approximately 80% of our total GMV. Our retail business also delivered a remarkable performance during the recently concluded Double 11 Shopping Festival, as we topped the Pillow sales chart across various third-party e-commerce platforms. Double 11's GMV across third-party online platforms exceeded RMB 250 million, an increase of over 600% compared with the same period last year. and an increase of more than 140% from this year's June 18th Shopping Festival. This impressive performance clearly reflects AtorPlanet's continuously strengthening brand awareness and robust growth potential.
spk06: We continue to explore the needs of our users through the real feedback of our users. We continue to promote product innovation in the market, At present, we have successfully established a set of efficient new product development mechanisms to help us achieve the development and landing of many high-end products. Yaduo Planet Deep Sleeper Pro has achieved great success since its launch in March this year. As of November 11, the total sales have exceeded 800,000 units. On this basis, the product with the main temperature control, comfortable packaging, and super-soft sound insulation,
spk04: We have been consistently promoting innovation across our scenario-based retail business by identifying and exploring our users' evolving demands through their real feedback. Recently, we successfully established an efficient product development mechanism which has enabled us to roll out numerous blockbuster products. Our Deep Sleep Pillow Pro has enjoyed great success since its launch in March this year, with total sales volume exceeding 800,000 units as of November 11th. Moreover, our Deep Sleep Temperature Control Quilt, which is designed to envelop users in a snug and tranquil environment with its advanced temperature-controlled features recorded an outstanding GMV of over RMB 10 million in September. This remarkable achievement serves as a compelling validation of our outstanding product development capabilities.
spk06: The development of the retail business is not only based on innovative products, Beyond our products themselves,
spk04: Exceptional customer experience is the cornerstone of Atour as a leading lifestyle brand. Our retail business development and success are not only driven by our innovative Deep Sleep series products, but also by the high-quality shopping experience we provide to our customers. Our Atour Planet flagship stores have garnered five-star ratings in terms of customer experience on both Douyin and Tmall, significantly outperforming our industry peers. From accommodation to our retail business, we have been proactively implementing our Chinese experience strategy to great effect, further solidifying our brand recognition and propelling our sustainable and quality growth.
spk06: Finally, we went back to Yunnan in October this year to visit Yaduo Village, and started the Yaduo's original journey. The spiritual power of Yaduo Village has always guided us, allowing people to have a warm connection with each other. In 2018, we assisted Yaduo Village to establish a tea and professional cooperative. Through the innovative welfare model of enterprises, cooperatives, and tea farmers, to provide stable source of income for the local villagers, and to help Yaduo Village achieve the village-wide poverty alleviation by the end of 2019. As of September 2023, we have planted nearly 10,000 old tea gardens in Lujiang Province. We hope that the tea garden planting of Yaduo Village can not only help the local village to achieve the rural farming, but also make a positive contribution to the ecological construction and environmental protection of Yunnan.
spk04: Last but not least, we embarked upon a journey to rediscover Atul's original aspirations in October and returned to Yunnan Province to revisit Yaduo Village. Yaduo Village's spirit has always been our guiding light, inspiring our commitment to creating an intimate ambience where people can warmly connect. In 2018, we helped the village to form a specialized tea cooperative adopting an innovative model to encourage full cooperation among enterprises, V cooperatives and tea farmers. This initiative has provided a stable income channel for local villagers ever since and empowered Yaduo Village to eradicate poverty village-wide as of the end of 2019. As of September this year, We have increased the planting area of our three tea farms in Nujian Prefecture to nearly 10,000 mu, a Chinese unit of areas. We believe the promotion of tea farms in Yaduo Village will not only help reclaim wasteland for agriculture, but can also contribute positively to Yunnan's ecological development and environmental conservation. Now I'll turn the call over to our co-CFO, Mr. Wu Jianfeng, to discuss our financial results. Thank you, Haijun.
spk06: Now I would like to present the company's financial performance for the third quarter of 2023. Our net revenues for the third quarter of 2023 grew by 93.1% year-over-year, and 18.4% quarter-over-quarter to RMB 1,294 million. The strong increase in the third quarter was driven by the robust growth in both our hotel and scenario-based retail businesses. Revenues from our monetized hotels for the third quarter of 2023 were RMB 781 million, up by 82.9% year-over-year and 24.7% quarter-over-quarter. These increases were primarily driven by the ongoing expansion of our hotel network and the increase in repar. The total number of monetized hotels increased to 1,080 as of September 30, 2023, up by 27.5% year-over-year and 7.9% quarter-over-quarter, while repar surpassed 2019's level and recovered to RMB 418, for the third quarter of 2023 from RMB370 for the same period of 2022. Revenues contributed by our leased hotels for the third quarter of 2023 were RMB238 million, representing an increase of 49.3% year-over-year and 8.5% quarter-over-quarter. These increases were primarily due to the growth of Repar. Red part of all these hotels surpassed 2019's level and recovered to RMB 571 for the third quarter of 2023 from RMB 384 for the same period of 2022. Revenues from retail and others for the third quarter of 2023 increased by 229.1% year-over-year and 11.4% quarter-over-quarter to RMB 275 million, with scenario-based retail revenues growing by 291.7% year-over-year and 11.1% quarter-over-quarter to RMB 235 million. These increases were attributable to our ongoing efforts to address involving customer needs as well as our efficient product development mechanism, which enabled us to consistently launch the products which are well received by customers. In addition, we continued to expand our customer base and enhance our brand recognition through a combination of various online and offline distribution channels. Now let's move to cost and expenses. Our hotel operating costs for the third quarter of 2023 increased by 58.4% year-over-year to RMB 617 million, mainly due to the increase in variable costs such as supply chain costs associated with the ongoing expansion of our hotel network. Hotel operating costs accounted for 60.5% of total hotel revenues for the third quarter of 2023, compared with 66.3% for the same period of 2022. The decrease was due to the robust growth of RepHub and the economics of scale brought by our rapid network expansion. Other operating costs for the third quarter of 2023 were RMB $131 million, representing an increase of 190.8% year over year, driven by increased costs associated with the rapid growth of our scenario-based retail business. Other operating costs accounted for 47.6% of retail revenues and others for the third quarter of 2023, compared with 53.8% for the same period of 2022. The decrease was attributable to improve the retail business profitability as a result of the increasing contribution from higher-margin online distribution channels. Selling and marketing expenses for the third quarter of 2023 increased by 269.3% year-over-year to RMB 112 million. setting and marketing expenses accounted for 8.7% of the net revenues for the third quarter of 2023, compared with 4.5% for the same period of 2022. The year-over-year increase was primarily attributable to the rapid growth of the scenario-based retail business, which was particularly driven by online channels. General and administrative expenses for the third quarter of 2023 were RMB 79 million. Excluding shell-based compensation expenses of RMB 9 million, adjusted general and administrative expenses increased by 53.3% year-over-year to RMB 17 million for the third quarter of 2023. Adjusted general and administrative expenses accounted for 5.4% of net revenues for the third quarter of 2023, compared with 6.8% for the same period of 2022. The decrease was due to the improvement of our management efficiency and operating leverage. Our technology and development expenses for the third quarter of 2023 were RMB 20 million, compared with RMB 16 million for the same period of 2022. Technology and development expenses accounted for 1.6% of net revenues for the third quarter of 2023, compared with 2.5% for the same period of 2022. We will continue to improve our technology and development capability and invest in comprehensive digital infrastructures to facilitate our long-term sustainable goals. Adjusted EBITDA for the third quarter of 2023 was RMB 380 million, up by 122.4% year-over-year. Adjusted EBITDA margin for the third quarter of 2023 was 29.4%, with an increase of 4 percentage points year-over-year. Adjusted net income for the third quarter increased by 144.7% year-over-year to RMB 272 million. Adjusted net profit margin for the third quarter of 2023 was 21.0%, with an increase of 4 percentage points year-over-year. The improved group's overall net margin was primarily driven by the increase in gross profit margin in both our hotel and scenario-based retail businesses, along with our improved operating leverage. Operating cash inflow for the third quarter of 2023 was RMB 543 million. Investing cash outflow and financing cash outflow for the third quarter of 2023 were RMB 779 million. and RMB 98 million respectively. Notably, we have maintained a healthy cash position with stable growth momentum. As of September 30, 2023, our cash and cash equivalents totaled RMB 2.2 billion. Together with bank-structured deposits, we have cash and short-term investments totaling RMB 3.0 billion. That concludes our financial highlights for the third quarter of 2023. With that, that's open for Q&A.
spk09: Thank you, sir. As a reminder, to ask a question, you'll need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Once again, please press star 1 and 1 on your telephone and wait for your name to be announced. For the benefit of all your participants on today's call, if you raise your question in Chinese, please immediately repeat your question in English. Please limit your questions to one at a time. If you wish to have any follow-up questions, please rejoin the queue. Thank you.
spk08: We are now going to proceed with our first question. The questions come from the line of Linda Ling from City. Please ask your question.
spk01: Thank you. Hi, management. I'm from the city. Thanks for taking my questions. First, congratulations. I'm very sorry. The results for the third quarter, including the hotel business and also the retail business. So we want to check with the management that based on the fourth quarter to date trend. So do you actually have any changes in your full year guidance in terms of the openings, like the red part, as well as for the top line and the bottom line guidance? And also as we are into the end of this year, also want to check with the company if you have any guidance for growth outlook for next year. Do you have any like the initial expectation to share with us? Thank you.
spk06: 好,谢谢Lilia. Thank you, Lydia. Let me take your question. As of September the 30th, we have opened 189 hotels cumulatively this year.
spk04: The trend shows a quarterly increase, and we are pretty confident that the new hotel openings will accelerate further in the fourth quarter. And that's why we would like to maintain the target of 280 new hotel openings for the full year.
spk06: 第二是關於RAPPA。 那RAPPA我們在上季度的業績會上跟大家溝通的是113到117的這個恢復度的區間。 目前從整體的進展,包括暑期、國慶假期的表現來看都符合我們之前的預期,整體表現比較穩健。 Then we will maintain the recovery rate of 113 to 117 Ravpar per year.
spk04: And secondly, in terms of the Ravpar, well, in our last earnings call, we had shared that our full-year Ravpar recovery rate was to be in the range of 113% to 117%. Well, now that seeing the overall progress till now, including the performance during the summer and the National Day holidays, all remained solid and was in line with our expectations. So we are maintaining the full-year guidance unchanged still within the range of 113% to 117%. Thirdly, it's about revenue.
spk06: Our retail business has been constantly breaking through and exceeding its period. So our revenue period for this year will be around 4.4 billion RMB, which is more than 90% of the total growth.
spk04: And thirdly, in terms of revenue, as we have achieved many breakthroughs in our retail business, the retail business revenue has continuously exceeded our expectations. Therefore, we will revise up our full-year revenue guidance to around $4.4 billion, with a year-on-year growth exceeding 90%. 最后关于明年的指引。
spk06: Regarding guidance for the next year,
spk04: New hotel openings will progress steadily in line with the pace to achieve our goal of opening 2,000 premier hotels by 2025. And the rough part target for next year is to be with some moderate growth based upon this year's fundamental value. And as we are in the middle of internal budgeting for next year, 2024, we would like to share more color on the next quarter earnings call. Thank you.
spk07: Thank you, Lydia. Operator, please invite next question.
spk09: Thank you. We are now going to take our next question. And the questions come from the line of from CICC. Please ask a question. The line is open.
spk02: My question is about ATOR 4.0, which we launched recently. I feel that there's really a big improvement in overall style and quality compared with previous versions. So how can we control the pay-packs at 145,000 per room while shipping this? Could you please share with us your expectation on its future RAPA and the unit economics, including payback period? Thanks.
spk06: Okay, thank you, Sijia. Let me answer this question. Our location in Asia 4.0 is different from traditional commercial hotels. Well, thank you very much for your questions. Let me answer that. A tool 4.0 with nature distinguishes itself from our traditional business
spk04: hotels, or of others. It incorporates many natural, native elements to create a sense of natural tranquility. And this provides a relaxation and leisurely ambience for our guests who are on the business trips or if they are constantly on the go.
spk06: We expect a mature 4.0 hotel like this. The goal of RoverPod is 400 yuan. 400 yuan RMB. In terms of our design style, breakthrough, soft hardware, and full upgrade, according to 140 standard defense amounts, the price per unit is 14.5 million yuan. As for the Aduo 4.0 product, we used a large proportion of model design. On the one hand, it better protects the quality of the project, and at the same time, it shortens the time and time.
spk04: For a mature Atul 4.0 hotel, we would anticipate a rev part target of 400 RMB. At the same time, with breakthroughs in design styles and the upgrades in both facilities and amenities, the capex per room would be around 145,000 RMB based upon a total number of 140 rooms. Atul 4.0 adopts a large-scale modular design, which not only can help to better ensure the project quality. It also helps us to reduce the material and construction period. In general, the investment return period for a 204.0, well, including the renovation period, is estimated to be three year and a half. That is shorter than our previous version, 3.5. We expect a 204.0 will continue to enhance our competitiveness in the upper mid-scale hotel market and also lead our long-term growth. Thank you.
spk07: Thank you, Sijie. Let's have our next question.
spk09: Thank you. We are now going to proceed with our next question. And the questions come from the line of Ronald Lang from Bank of America. Please ask your question.
spk03: Good evening, Manager Cheng. Thank you for giving me the opportunity to ask a question. Congratulations to Manager Cheng for achieving a very good performance this quarter. 我的问题是关于这个零售的业务的。 我们看见上季度的零售业务的表现持续超预期, 双11也再次处得突破。 请问公司对零售业务未来的规划和增长预期会是如何了? 让我翻译一下。 The performance of the retail business in the third quarter continues to exceed expectations, and there was also another breakthrough during 2011. Could you please provide insights into the company's future plans and growth expectations for the retail business? Thank you very much.
spk06: Well, thank you for your question. Our mid-term strategy for the retail business revolves around two key approaches. The first is to do a subtraction. We aim to focus on concentrating and deepening our presence
spk04: In a sleep market. And secondly, it is an addition. We are going to leverage our insights into customer behavior and the application of technology to continuously strengthen our product R&D, as well as expanding our deep sleep product categories.
spk06: Just like I just introduced, our retail product capabilities are constantly improving. In September, we sold more than 10 million deep sleep mattresses. Our high-performance product development system is constantly being verified. We will continue to launch our next generation of deep sleep series products, deep sleep mattresses, so that the products of our entire deep sleep family can continue to be expanded. Like we have previously introduced, our retail product capabilities are continually improving, ranging from the popular deep sleep pillow that gained widespread recognition to the deep sleep temperature control quilt which achieved
spk04: a monthly GMV exceeding tens of millions in September. Additionally, we have other products to be launched soon, demonstrating our effectiveness of our product R&Ds, especially the robust system for that. The new product in deep sleep series, including the deep sleep mattress, which will be officially launched soon. The deep sleep product line continues to expand gradually extending from hotel users to a broader consumer base. This expansion has significantly increased Atul Planet's brand influence within the sleep economy.
spk06: Atul Planet's sales in the third quarter reached 2.35 billion RMB, which is a 292% increase. At the end of the Double 11 shopping festival, Atul Planet's sales in all e-commerce platforms were ranked first. Our retail revenue was RMB 235 million.
spk04: in the third quarter, increasing significantly by approximately 292% year-over-year. During the recently concluded W11 shopping festival, we topped the pillow sales chart across various third-party e-commerce platforms. The W11's GME across all third-party e-commerce channels have exceeded RMB 250 million, an increase of over 600%. when compared with the same period last year, and an increase of more than 140% from this year's June 18th shopping festival. With all that, we expect retail revenue for this year to reach 900 million RMB, with a year-on-year growth exceeding 250%. Thank you.
spk07: Thank you. We can take our next question.
spk09: Thank you. We are now going to take our next question. And the questions come from the line of view. Will you from Citix please ask a question? Your line is opened.
spk08: Good evening.
spk05: I'm Liu Jiwen from Central Stock Exchange. I would like to ask two questions about Qingqu. On the one hand, after the release of Qingqu 3.0, we did see that the contract and opening speed of the 3.0 was very fast. Thanks, management. I'm Jiwei from Thetix. TourLight 3.0 version is making rapid progress on sign and opening. So could you tell us more about the store's current business situation? Besides, will it bring pressure to the group's plan to develop with the increase in the adoption of TourLight? Thanks.
spk06: Okay, thank you. I will answer this question. As of September 30, our new building has already signed 71 projects. Thank you, Jiwei, for your question. Let me answer this one. As of the end of September, Ator Light 3.0 has accumulated 71 signed projects,
spk04: Consistently gaining recognition from our franchisees, 13 hotels have been opened, primarily focusing on core business districts in higher tier cities. These stores aim to set a benchmark for quality in the mid-scale hotel segment.
spk06: 从目前已经开业的轻居3.0的本店来看, 新产品的爬坡期是明显的缩短。 ADR和RAWPA在同商圈
spk04: Looking at those 205 3.0 hotels that are currently open, they had significantly shortened the ramping up period as a new product. Both ADR and Revbar are highly competitive when compared to the other mid-scale hotels in the same business districts.
spk06: Even if we have fast power generation, high power generation ratio, and gradually increase the ratio of green houses, these will bring some structural changes. But we will improve the competitiveness of our products through the upgrade of products and the replacement of old and new electricity. And we will have a lot of new electricity ramp-up support policies, tests, and various methods that will continue to drive the health improvement of our RORPAD.
spk04: And regarding the growth of the overall RAVPAR next year, despite the structural changes and the pressures brought by the rapid expansion of new hotels and the increasing proportion of tour lights, we plan to enhance product competitiveness through product upgrades and rejuvenation of existing hotels. Additionally, the support for new hotels ramp up will continue, aiming for a sustained and healthy growth in REVPAR. The goal is to achieve moderate growth compared to this year's REVPAR as a baseline. Thank you.
spk09: Thank you. As a reminder, to ask a question, please press star 1 and 1 in your telephone and wait for your name to be announced. Once again, it's star one and one on your telephone. We are now going to wait for a few minutes before taking the next question. As a reminder, to ask a question, you will need to press star one and one on your telephone. That concludes the question and answer session. I would like to turn the conference back over to Alison Zhang for any additional or closing remarks. Thank you.
spk07: Thank you for joining us today. If you have any further questions, please feel free to contact our IR team. We look forward to speaking with you again next quarter. Thank you and goodbye.
spk09: Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect your lines. Thank you.
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