Atour Lifestyle Holdings Limited

Ladies and gentlemen, thank you for standing by and welcome to the Ator Lifestyle Holdings first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Today's conference is being recorded. I would now like to turn the call over to Mr. Luke Hu, Senior IR Manager. Please go ahead, sir.

Thank you, operator. Good morning and good evening, everyone. Welcome to our first quarter 2025 earnings conference call. Today, you will hear from our founder, chairman, and CEO, Mr. Wang Haijun, and our EVP co-CFO, Mr. Wu Jianfeng. Before we continue, please be aware that this discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties, and the 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 accessible on our website at ir.yaduo.com, where a copy of the results presentation is also available. Now, I will turn the call over to Mr. Wang, our CEO.

Thank you, Luke. Hello, everyone, and thank you for joining Atul's first quarter 2025 earnings call today. But based on the challenge and existence, as the leading lifestyle brand group, Yaduo has always maintained the concept of managing the crowd, and is willing to respond to new market changes to accurately meet the needs of consumers at the moment for high-quality, individualized, and experiential consumption. At the same time, we continue to firmly promote the strategic approach of China Experience's 2000 good stores, and at the same time, we continue to promote and upgrade the value system of the industry.

In the first quarter of 2025, China's domestic travel market experienced fluctuations amid a complex and volatile macro environment, with numerous uncertainties presenting both challenges and opportunities. As a leading lifestyle group, we have always adhered to our business philosophy of serving people and are confidently navigating these evolving market dynamics. We continue to respond proactively to shifting consumer preferences for superior quality, personalized service, and experience-driven consumption. Meanwhile, we remain firmly committed to advancing the strategic initiative of Chinese Experience 2000 Premier Hotels, which not only strengthens our brand awareness and product offerings, but also drives the transformation and elevation of the industry's value chain. Next, I would like to provide more details on our business performance for the first quarter of 2025.

首先是住宿业务,请大家翻到我们的PPT第四页。 一季度,集团大盘RAWRPA为304.4元,为24年同期的92.8%。 Let's begin with our hotel business.

Please turn to slide four of our 1Q25 results presentation. Our RevPar reached the RMB 304.4 in the first quarter of 2025, representing 92.8% of its level in the same period of 2024. Specifically, OCC reached 95.8% and ADR stood at 97.2%, both compared to the same period in 2024. Please turn to the fifth page of the PPT.

In the first quarter, more than 18 months of matured RORPA was won, which is 92.8% in the same period of 24 years. It is consistent with the overall performance of the group. Among them, OCC and ADR are 95.6% and 97.4% in the same period of 24 years.

Please turn to slide 5. RevPAR for our mature hotels in operation for more than 18 months in the first quarter of 2025 was 92.8% of the level for the same period in 2024. In line with the group's overall performance, while OCC and ADR for these mature hotels reached the 95.6% and the 97.4% of 2024's levels for the same period respectively.

Please turn to page 6. Thanks to the continuous improvement of brand power and strong organizational efficiency, our hotel network continues to expand, further highlighting the group's growing resilience. In the first quarter, a total of 121 new hotels were opened, with a 24.7% increase. Please turn to slide six.

Benefiting from our strengthening brand influence and a robust organizational efficiency, our hotel network continued to expand, demonstrating the resilience of our business. In the first quarter, we opened 121 new hotels, representing a 24.7% year-over-year increase. By the end of the first quarter, we had a total of 1,727 hotels in operation, representing a 32.6% year-over-year increase.

本季度,加盟商对品牌发展持续看好, 管道项目不断扩充。 截止一季度末,管道项目总数达到755家。 This quarter, franchisees remain positive about our brand development.

This has led to a continuous expansion of our pipeline projects. By the end of the first quarter, the number of hotels under development reached 755. While pursuing scale expansion, we always adhere to the quality standards. We carefully screen and evaluate both new hotel signings and openings to ensure sustainable high-quality growth. Next, I would like to share the latest developments for Atul's hotel brands. In the first quarter, guided by our long-term growth philosophy and deep insights into current business travel trends, we implemented upgrades to our mid-scale and upper mid-scale hotel products.

In the first quarter, we implemented upgrades to our mid-scale and upper mid-scale hotel products. Please turn to slide seven.

In the upper mid-scale segment, we launched Ator 3.6 in the first quarter. This product embodies an in-harmony-with-nature design philosophy, seamlessly integrating business functionality and a relaxed ambience. Furthermore, Ator 3.6 prioritizes enhanced convenience and comfort through optimized space utilization and upgraded functional design. This innovation enables us to deliver a comprehensive, full-scenario, ultimate business travel experience, setting a new benchmark for premium business travel in the upper-mid-scale market.

Since its launch, Yaduo 3.6, with its powerful product activity, comprehensively upgraded experience facilities, and efficient investment returns, has received widespread attention from the market and positive feedback from partners.

Since its launch, Atuo 3.6 has received widespread market recognition and positive feedback from franchisees through its strong product vitality, holistically upgraded our customer experience features and efficient investment returns. We believe this product will further solidify our core competitiveness in the upper mid-scale segment.

Please turn to page 8. In the future, the three-segment and four-segment products of Yaduo will form the new generation of Yaduo's mid- and high-end products. The parallel development is complementary. The three-segment products aim to consolidate our core brand position in the current mainstream business travel scene. The four-segment products have a longer life cycle. Please turn to slide eight.

Looking ahead, The Atour Series 3 and Series 4 product lines will jointly shape our next-generation upper mid-scale hotel portfolio, operating in parallel to complement each other. Atour Series 3 strengthens our leading brand position in core business travel scenarios. Meanwhile, Atour Series 4 offers an extended lifecycle and shapes the future of the upper mid-scale market. Together, Series 3 and Series 4 product lines address diverse customer aesthetic preferences and accommodation needs, while also providing franchisees with a broader range of investment options. In addition, for existing hotels with renovation needs, we have introduced the Attour 3.5 SE renovation program to help them maintain market competitiveness.

Please turn to page 9. In terms of mid-range brands, we insist on the diverse needs of young users to carry out product innovation and experience upgrades. In 2023, we launched Qingju 3.0. With its young and fashionable design style and innovative features, it is effective in dealing with the problems of the current mid-range market, residential products, aesthetic outdatedness, lack of service experience, and so on. It has won the wide praise of homemakers and consumers. Please turn to slide 9.

In the mid-scale segment, we remain committed to product innovation and experiential upgrades that cater to the diverse needs of younger consumers. In 2023, we introduced Attor Lite 3.0, which effectively addressed the critical market challenges such as outdated aesthetics and inadequate service experiences by incorporating youthful, fashionable design and innovative service touchpoints. This product has received widespread acclaim from both franchisees and consumers. Meanwhile, during the operation, we have gained valuable insights into the preferences of younger consumers.

On this basis, in the first quarter, we launched a 3.3-inch product. Le Naya blue night as an inspiration through immersive sense of atmosphere design for users to create a relaxing rest experience. QingJu 3.3 has been fully upgraded in visual design, spatial perception, and hardware design. At the same time, it has optimized the space function for commercial needs and office needs. All-round promotion of the entry experience of QingJu Hotel. We believe Building on this foundation, we launched a Tourlite 3.3 in the first quarter, inspired by the Blue Knights of Genoa

A tour light 3.3 provides customers with a relaxing and restorative resting experience through immersive atmospheric design. A tour light 3.3 features comprehensive upgrades in visual design, spatial perception, and facilities, while offering tailored functionality for business meetings and work-related needs. These enhancements further elevate the overall customer experience. With its improved quality, expanded versatility, and adhered to our Attour Signature experience standards, we believe Attourlite 3.3 will serve as a key driver in achieving our goal of 1,000 Attourlite hotels and will establish itself as a flagship product in the mid-scale segment.

Under the intense background of market competition, we insist on creating long-life products. In an increasingly competitive market, we remain focused on creating products with extended life cycles.

By continuously enhancing our product competitiveness with reinforced experience differentiations, We effectively meet the diverse needs of broader demographics, further solidifying our leadership across market segments. 接下来是我们的零售业务,请大家翻到第十页。 Now moving to our retail business, please turn to slide 10.

零售业务的发展是亚多健行生活方式品牌集团的定位和经营人群里面的自然成果。 The growth of our retail business is a natural extension of our positioning as a lifestyle group and our business philosophy of serving people.

In the first quarter, our retail business maintained strong growth momentum, with GMV reaching RMB 845 million, up 70.9% year-over-year, driven by rising brand strength and growing customer loyalty. Online channels continued to contribute over 90% of total GMV.

Please turn to page 11. Since the establishment of Asia Planet, Please turn to slide 11. Since its inception,

Attour Planet has remained committed to studying and integrating customers' sleep needs across both hotel and home environments. This anchors the deep sleep experience firmly in the minds of customers. Across different scenarios, Attour Planet's products not only fulfill customers' functional needs, but also deeply resonate with their emotional needs.

In terms of pillow products, the EG-DOOP Deep Sleep Pro series products In the pillow category, our Deep Sleep Memory Foam Pillow Pro series maintained robust sales performance in the first quarter.

Consistently ranking as the top seller in its category on major third-party e-commerce platforms, since its launch, the accumulated sales of the Deep Sleep Memory Foam Pillow Pro series have exceeded 6 million units, further solidifying Attour Planet's leading position in the Pillow category.

Please turn to page 12. Based on our analysis and analysis of the user's needs and feedback, The Asian planet has formed a standardized product chain model driven by the needs of users. In March, we followed the changes in the season and launched the deep sleep cooling back summer Pro 2.0 as the new version of the deep sleep cooling back last year. The new product has further optimized the ventilation and coldness system, focusing on providing users with a natural, comfortable, refreshing experience and not an extreme cold sensation. Please turn to slide 12.

Based on our capture and exploration of user needs, as well as the refinement and analysis of user feedback, Atour Planet has developed a standardized user-driven product iteration model. In March, in line with seasonal changes, we launched the DeepSleep Thermal Regulating Comforter Pro 2.0 summer season. Serving as the upgraded version of the DeepSleep Lightweight Comforter introduced last year, this new product further optimizes the breathable cooling system, aiming to provide the customers with a natural and cozy coolness instead of an ultimate cold touch. Upon launch, the product received widespread consumer praise, ranking first in sales in its category on Tmall and Douyin in its first month. Within just 48 days, the product exceeded RMB 100 million GMV, making it another blockbuster product in the Deep Sleep series.

In addition, in the competitive market environment, we are also continuing to consolidate the core barriers of Asia Star. On the one hand, we continue to innovate product materials and engineering technology. On the other hand, through the perfect production and engineering standards, we have achieved quality control throughout the production process, ensuring the stability and consistency of the product quality. In addition, Asia Star continues to start from the user demand, In addition, amidst an increasingly competitive market environment, we have been steadily reinforcing Atul Planet's core strengths.

On one hand, we continue to drive innovation in product materials and manufacturing technologies. On the other hand, by establishing a comprehensive set of production standards, we have achieved end-to-end quality control and ensured consistent and reliable product quality. Moreover, Attour Planet remains focused on refining product details based on customer needs, aiming to enhance the overall usage experience. With the continuous improvement of both product performance and quality, Ator Planet is well positioned to meet consumers' growing expectations for high-quality living, redefining new standards for both product quality and customer experience. Please turn to slide 13, moving to our membership business and channel development progress.

It benefits from the continuous maturity of the member system and the continuous abundance of member rights. As of the end of the first quarter, the number of Ado registered members has surpassed 96 million people, with a growth of 35.4%. Our core free channel continues to maintain a stable level. In the first quarter, the sales and industry ratio of the CIS channel is 65.1%, of which the sales and industry ratio of the enterprise agreement is 19.8%.

Thanks to the continued enhancement of our membership ecosystem and an expanding range of membership benefits, our registered individual members surpassed 96 million by the end of the first quarter, representing a 35.4% year-over-year increase. Our core CRS channel continued to maintain stable performance, accounting for 65.1% of total room nights sold during the first quarter, The contribution of Room 9 sold to corporate members was 19.8% during the first quarter.

Please turn to page 14. We continue to improve the A-card member system by investigating and researching the behavior of different industry users, promoting the integration of accommodation business and retail business, and further promoting cross-consumption. In the first quarter, at the same time as retail new products are released, Please turn to slide 14.

We continue to enhance our A-card membership ecosystem by gaining deeper insights into user behavior and preferences across different business formats. This enables us to further integrate hotel and retail businesses. thereby driving cross-consumption between them. In the first quarter, alongside the launch of new retail products, we introduced cross-promotional campaigns that allow retail customers to access our hotel membership benefits. These initiatives have attracted more retail customers to our hotels, driving further conversions across our business segments.

In terms of membership, we actively grasp the needs of leisure travel and commercial travel, and continue to create high-sensitivity experiences and rights. During the Spring Festival, in order to help young people escape the crowd and explore the needs of small and medium-sized destinations, we launched anti-travel travel, dismantling surprise hotel blind spots, and providing local play for users through the form of destination recommendation officer.

In terms of member engagement, we actively leverage emerging trends in leisure and business travel to continuously deliver experiences and benefits that highly resonate with customers. For example, during the Spring Festival, We launched our counter-trend travel blind hotel booking campaign, catering to the younger travelers' growing preference for exploring niche, crowd-free destinations. We also introduced the destination ambassadors to share local travel inspiration. Additionally, we partnered with a vertical travel platform to establish integrated memberships, further embedding our value proposition throughout customers' journey and enhancing member loyalty.

Finally, I would like to happily announce that we have recently released the ESG report for ADOA in 2024. Please turn to page 15. In 2024, we will continue to improve the ESG management level and fully integrate sustainable ideas into accommodation and retail businesses. At the same time, we will actively carry out social responsibility, through industrial support and warm help, Finally, I am pleased to announce the recent release of our 2024 ESG report.

Please turn to slide 15. Throughout 2024, we continued to strengthen our ESG governance by embedding sustainability principles across both hotel and retail businesses. At the same time, we are actively fulfilling our social responsibilities through industrial support and social assistance programs in Yaduo Village. And by leveraging our brand influence, we also build bridges for biodiversity conservation.

Looking forward to the future, we will continue to implement a product philosophy that is human, warm, and interesting, and promote the expansion and quality improvement of accommodation and retail businesses, and use the long-term concept as a guide

Looking ahead, we remain committed to upholding our product philosophy of being humane, warm, and inspiring, scaling the expansion and driving quality enhancements to both our hotel and retail businesses. Guided by our long-term growth principle, we remain committed to making tangible contributions to sustainable development and the betterment of society. I will now turn the call over to our co-CFO, Mr. Wu Jianfeng, who will discuss our financial results.

Thank you, Haijun. Now I would like to present the company's financial performance for the first quarter of 2025. Based on slide 17 of the result presentation, Our net revenues for the first quarter of 2025 grew by 29.8% year-over-year and fell by 8.6% quarter-over-quarter to RMB 1,906 million. Revenues from our monetized hotels for the first quarter of 2025 were RMB 1,032 million, up by 23.5% year-over-year and down 6.7% quarter-over-quarter. The year-over-year increase was primarily due to our ongoing hotel network expansion. Revenues contributed by our leased hotels for the first quarter of 2025 were RMB 129 million, a decrease of 23.5% year-over-year and 21.6% quarter-over-quarter. The declines were primarily due to a decrease in the number of leased hotels as a result of our product mix Revenues from our retail business for the first quarter of 2025 were RMB $694 million, up by 66.5% year-over-year and down 9.3% quarter-over-quarter. The year-over-year increase was driven by growing recognition of our retail brands and effective product innovation and development as we successfully broadened our range of product offerings. Now let's move to cost and expenses. Please turn to slide 18. Hotel operating costs for the first quarter of 2025 increased by 11.2% year-over-year and decreased by 7.3% quarter-over-quarter to RMB $736 million. The year-over-year increase was primarily due to the increases in variable costs, such as hotel manager costs associated with our ongoing hotel network expansion. Growth margin of our hotel business expanded to 36.6% in the first quarter of 2025 from 34.1% during the same period of 2024. Retail costs for the first quarter of 2025 rose by 63.7% year-over-year and decreased by 12.5% quarter-over-quarter to RMB 337 million. The year-over-year increase was associated with the rapid growth of our retail business. Growth margin of our retail business expanded to 51.4% in the first quarter of 2025 from 50.5% during the same period of 2024, primarily attributable to the increase in contribution from higher margin products. Now, please turn to slide 19. Setting and marketing expenses accounted for 14.8% of net revenues for the first quarter of 2025. compared with 11.9% for the same period of 2024. The increase was mainly due to investment in brand recognition and the effective development of online channels, in line with the growth of our retail business. General and administrative expenses, excluding share-based compensation expenses, accounted for 4.1% of net revenue for the first quarter of 2025. compelled with 5.0% for the same period of 2024. The decrease was primarily due to improve the management efficiency and economics of scale. Technology and development expenses accounted for 2.1% of net revenues for the first quarter of 2025, compelled with 1.6% for the same period of 2024. The increase was mainly due to The increase was mainly due to increased investment in technology systems and infrastructure to support our expanding hotel network and retail business and improve the customer experience. Now please turn to slide 20. Adjusted net income for the first quarter of 2025 was RMB 345 million, representing a 32.3% increase year-over-year. Adjusted EBITDA for the first quarter of 2025 was RMB 474 million, up by 33.8% year-over-year. Adjusted net profit margin for the first quarter of 2025 was 18.1%, representing an increase of 0.3 percentage points year-over-year. Adjusted EBITDA margin for the first quarter of 2025 was 24.9%, an increase of 0.8 percentage points year-over-year. Please turn to slide 21. We also maintained a healthy cash position. As of March 31, 2025, our cash and cash equivalents totaled RMB 3,146 million, with net cash of RMB 3,074 million. Based on slide 22, as part of our commitment to enhancing shareholder value, in accordance with the annual dividend policy adopted in August 2024, today we declared our first cash dividend in 2025 of 0.14 US dollars per ordinary share or 0.42 US dollars per ADF. for an aggregate amount of approximately US dollars 58 million. Concurrently, we announced a three-year share repurchase program under which we may repurchase an aggregate value of up to 400 million US dollars. Through a comprehensive shareholder return initiative encompassing dividends and share repurchase, we are taking concrete action to reward shareholders' trust and support, enabling all shareholders to share in the company's growth achievement. Now please turn to slide 23. For full year 2025, we currently expect total net revenue to increase by 25% to 30% compared with full year 2024. That concludes our financial highlights for the first quarter of 2025. Now let's open for Q&A.

Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, if you raise your question in Chinese, please immediately repeat your question in English. Please submit your question to one at a time. If you wish to have more questions, please rejoin the queue. Stand by while we compile the Q&A roster. Just a moment for our first question. Our first question comes from CG Lin from CICC. Your line is now open.

Thank you, management. Could you please share the performance of RevPath in Q2 and provide outlook on RevPath for the full year? Thank you.

Thank you, Sujie. Thank you, Sujie. The overall market is fluctuating in the first quarter. In Q1, the overall market experienced some volatility.

There were multiple factors to be considered, including weather conditions, macroeconomic impacts, they all affecting travel demand. Our REF PAR decreased by 7.2% year-over-year, and also OCC and ADR were showing varying degrees of decline year-over-year as well.

As we move to the second quarter, we see that the market demand continues to diversify. The resumption of business travel is still uncertain, but leisurely travel needs still show a relatively strong resilience. Entering Q2, we observed the continued divergence in market demand.

While there were the recovery of business travel, but it remained quite uncertain to some extent. leisure travel demand has demonstrated some notable resilience. During the Labor Day holiday, both pricing and occupancy performed quite strongly, exceeding prior year levels. So overall, we anticipate there might be some easing of RAVPAR pressure in Q2 when compared to Q1.

For the performance of RAVPAR throughout the year, our current view is consistent with that of the beginning of the year. In the case of market fluctuation, We feel that the uncertainty of this year's Rapport is still relatively large. But in terms of business, we will not compete with other hotel companies in the market. We will insist on the experiential advantage of our Asia-Pacific, to grasp some of our core revenue opportunities. We will adopt a more balanced and refined revenue management strategy with ADR and OCC to continue to build our long-term brand value. Thank you.

And as for our view on the full-year REVPAR performance, it is still remaining consistent with the beginning of the year. And REVPAR still faces considerable uncertainty given the ongoing market volatility. However, in terms of our operations, we will not just blindly engage in price competitions with the homogenized products in the market. What we will do is to continue to adhere to ATOR's differentiated experience advantages to seize the core revenue opportunities, and we are going to adopt a more balanced and refined revenue management strategy in terms of both ADR and OCC so that we can continuously build the long-term brand value of ATOR.

Thank you, Sijie. Next question, please.

Thank you. Just a moment for our next question. Next, we have Roland Leung from Bank of America. Your line is now open.

Thank you. Let me translate my question into English. Good evening, management. Could you please share your view on the new signings momentum and also new hotel openings for the full year of 2025? Thank you.

谢谢,我来回答这个问题。 一季度呢,我们整体的签约是延续了比较积极的趋势。 在行业普遍面临供给同志化的压力的背景下, Thank you, Rona.

Let me answer your question. In the first quarter, we remained positive, finding momentum. Amid industry-wide pressure from homogeneous supply, a tour We solidified our unique market positioning through our differentiated brand strategy and the distinctive experiential strength. This has continuously drawn the attention of high-quality franchisees.

In addition, under the uncertain background of Hongguan, we are increasingly seeing that the cash flow return of the hotel industry compared to other investment methods is relatively stable. The business model is also relatively stable. Although there is a certain fluctuation in the role part, the rental cost of high-quality property is still in a relatively low range, and the profitability is also greatly improved. In this way, the comprehensive income has long-term attraction. It is precisely because of this that our mature hotel partners are still confident and willing to seize the opportunity to seize the potential of long-term development in the future market of high-quality brands.

In addition, against the backdrop of persistent macroeconomic uncertainty, we have clearly observed along the way that compared to other investment channels, the hotel industry offers still a relatively stable cash flow returns and a more robust business model. So despite some rev power volatility, the premium property rental costs still is remaining in a relatively low range with improved availability, and that makes the overall returns attractive in the long term. As a result to that, mature hotel franchisees are still remaining confident and are willing to seize opportunities to capture that long-term growth potential of premium brands in the future market.

As for new openings,

In the first quarter of this year, we opened 121 hotels, continuing that high-quality expansion trend since we had last year. Based upon that, we maintain our four-year opening guidance of 500 new openings and have full confidence in achieving this goal, steadily advancing toward our strategic objective of reaching 2,000 premier hotels by the year end.

Also, based on our strategic goal of 2,000 premier hotels, we will impose stricter requirements on quality from multiple dimensions

including signings, openings, and operation to ensure that our hotel numbers grow with quality so that every hotel can provide users with a consistently high-quality experience. Thank you.

Thank you, Ronald. Next question, please.

Thank you. Just a moment. Next, we have Dan Chi from Morgan Stanley. Your line is now open.

Thank you, Manager Chen. My question is about the business of long-term sales. We can see that the sales performance of the company in the first quarter is very bright. The sales income has increased by 67% in the same ratio. In the last performance, we mentioned a year-round guidance that the growth rate is not lower than 35%. I would like to ask Manager Chen if he has any new ideas about the sales income guidance for the year-round. Please allow me to translate my question. My question is related to the company's retail business. We saw retail business revenue growth in first quarter was outstanding at 67% year-on-year. Previously, the company guided full-year retail revenue of no less than 35% growth. I would like to ask the management about any update to the full-year revenue guidance on this business and any strategic plan for retail in the coming period. Thank you.

好,谢谢Dan. Thank you, Dan. 一季度是我们凭借我们对春节的营销节点的精准的把握, 还有我们深税系列产品的持续的畅销, 我们零售业务的GNV是实现了一个同比增长, 超过70%一个非常好的成绩。 同时我们在3月份推出的新品, 就我们的深税空温贝夏季Pro 2.0, Thank you, Dan.

In the first quarter, we seized the key marketing opportunities of the Spring Festival. Also, we gained advantage from that continuous popularity of the Deep Sleep series products. Our retail business achieved a year-on-year growth of over 70% in GMB. Meanwhile, we can see that the sales trend of the new products we launched in March Namely, the DeepSleep Thermal Regulating Comforter Pro 2.0 Summer Season is also very strong.

Although the market competition is fierce throughout the year, we are confident in the performance of its subsequent new products and large-scale activities as we continue to improve the product and brand power of our Asia-Pacific planet. Based on this, we will increase the value of retail sales of the whole year to 50%.

Looking at the full year, though the market competition is still remaining intense, however, because of our continuous enhancement of our Tour Planet product offerings as well as the brand awareness, We are quite confident in the performance of our upcoming product launches, also the major promotional campaigns we have in our plans. Based upon this outlook, we are now raising our full-year retail revenue growth forecast to 50% year-over-year. Meanwhile, despite there are still some rev part uncertainties, the strong performance of our retail business led us to increase our group's full-year revenue growth guidance to the range of in between 25% to 30% year over year. In the future, Atour Planet will continue to focus on the deep sleep domain, enhance product R&D, improve our product quality, also consolidate our moat and supply chain to achieve higher quality and sustainable development of both the products and our brand. Thank you.

Thank you, Dan. Next question, please.

Thank you. Our next question comes from Junwei Lu from Citix. Your line is now open.

管理层好,我们也是看到公司刚刚公布了分红跟回购的这个计划, 能否请管理层再展开介绍一下对于现在整体股东回报的这样的一个整体考虑啊? We noticed that you had just announced dividend and share buyback program. Could you share some thoughts of the overall considerations behind these initiatives? Thanks, management.

Thank you, Jiwei.

Thank you, Jiwei.

Just like what we talked about before, we always strive to create long-term value by taking real action to return the trust and support of our shareholders. 所以这次除了分红以外呢,我们也是正式的公告了我们三年的股票回购计划。 那么预计未来三年每季的回购金额不超过四亿美元。 Thank you, Jiwei.

Well, like we said before, we remain committed to creating long-term value and rewarding our shareholders' trust and support through concrete actions. So in addition to the dividend, we have also officially announced today a three-year share repurchase program with a total amount not exceeding 400 million U.S. dollars.

In terms of dividend, we will continue to complete our three-year dividend plan. Our previous plan was that the dividend amount per year was not lower than 50% of the previous year's net profit.

Regarding the dividend, we will continue implementing the three-year dividend plan established last year, under which the annual cumulative dividend payout will be no less than 50% of the net income in the previous fiscal year. That's why this year, as we announced, our first dividend distribution totals approximately 58 million U.S. dollars, representing about one-third, 33% of the prior fiscal year's net income.

未来我们还会持续通过分红加回购这样一揽子的股东回报方案。 在确保公司资金正常稳定运转的前提之下,结合我们业务的实际情况,我们积极考虑多种股东的回报方式,提高我们股东的收益率,跟广大的股东共享我们公司发展的成果。 And moving forward into the future, we will implement a comprehensive shareholder return program by combining dividend payout and share buyback together.

While ensuring the company's stable and normal capital operations, we will actively consider various shareholder return methods in line with actual business conditions to enhance shareholder yield and enable all shareholders to share in the company's growth achievements.

Thank you, Jiwei. Thank you, Jiwei. Next question, please.

Thank you. Our next question comes from Lydia Ling from Citi. Your line is now open.

管理層好,我想請問一下公司的這個品牌的戰略, 能否分享一下咱們那個高端品牌的一個最新進展? 另外剛才也看到就是在presentation當中, 管理層也提到了一些在中高端和中端品牌的一些推出來的一些新的產品, 能否請管理層來介紹一下這些新的產品的一些策略? Hi, management. Could you provide an update on the progression of your upscale brands? And also, we noticed the launch of some new products across both the upper mid-scale and also mid-scale brands. So, could you elaborate more on the strategies for them? Thank you.

Okay. Thank you, Lydia. In terms of high-end brands, we should say that our new brand, Sa He Hotel, will always maintain the principle of low quality. The goal is to create a batch of standard projects in the best location in the core city. So this time, I am also very happy to announce that our Sahe flagship store located in Binhe, Shenzhen, will officially open on May 28 this month. So this is how our two Sahe hotels are now open. Thank you, Lydia.

In terms of our upscale brands, I'd like to talk about our new brand, Sa He Hotel. We consistently adhere to a quality first principle, and our goal is to develop a batch of flagship projects. We are pleased to take this opportunity to announce that within this month, our Sa He flagship hotel at Bing He of Shenzhen will officially commence operations on the 28th of May. So since the trial operations of two Sa He hotel which started this year, their product positioning design, aesthetics, and service experiences have received widespread acclaim from the consumers. And we have the confidence that Sa He Hotel's core concept of Chinese experience and its brand ethos of Oriental serenity will establish new benchmarks in the upper-scale hotel market in China.

In our high-tech field, we have just mentioned that we will combine our Asian 3rd and 4th generations And in the upper mid-scale hotel segment, as I mentioned earlier, our Attour 3 and Attour 4 series will co-exist,

and they will jointly shape our next generation upper mid-scale hotel portfolio so that it not only reaches the choices of franchisees but also meet the diverse accommodation needs of consumers. Also to further expand the market coverage so as to consolidating a tour's leading position in the upper mid-scale market.

In terms of our mid-end hotels, we will upgrade our 3.0 to the 3.3 version. In the 3.3 version, we are also experiencing a comprehensive upgrade of the product's quality and commercial functions, and through more modular applications, it can adapt more diversified property, and it will also further expand our room area. The launch of such a product will also continue to be able to create our high-end, cost-effective investment model,

And as for the mid-scale hotel segment, as we announced earlier, we're going to upgrade our Attour Lite 3.0 to the Attour Lite 3.3 version. And that has undergone comprehensive upgrades in multiple dimensions, including experience, product texture, and business functions. and we are adopting more modular design applications in order to adapt to more diverse properties as well as enlarging the room areas. We are going to continue to be committed to creating a higher premium and cost-controllable investment model by offering those lasting profitability and excellent returns so that we can provide the franchisees with more investment options.

Thank you.

Thank you, Lydia.

Thank you. This concludes today's question and answer session. I'd like to turn the conference back over to Mr. Luke for any additional or closing remarks.

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 next quarter, and thank you and goodbye.

And that concludes the question and answer session. And thank you very much for joining our call today. You may now disconnect.