Atour Lifestyle Holdings Limited

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

Thank you, operator. Good morning and good evening, everyone. Welcome to our third quarter 2025 earnings conference call. Today, you will hear from our founder, chairman, and CEO, Mr. Wang Haijun, and our EVP, co-CEO, Mr. Wu Jianfeng. Before we continue, please be aware that this discussion will include forward-looking statements and 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 purpose. 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, He Chen. Thank you for participating in the third quarter of the Asia Group in 2025.

Thank you, Luke. Hello, everyone. Thank you for joining Atour's third quarter 2025 earnings call today.

At the moment, the market is fluctuating. Consumers tend to turn to rationality and pursuit of value. The new scene and the new industry promote innovative enterprises, which is a key force that drives consumer potential release. From the hotel industry, for the past three seasons, the overall market has shown a gentle return. At the same time as travel leisure needs continue to release It also shows the characteristics of hot spots, rapid movement, and regional supply and demand. In terms of retail market Consumption content is deliberately focused on the improvement of experience and quality of life Consumers' habits of change and technological progress jointly promote the continuous development of the segment area As the leading lifestyle brand group Ado Minrui insights users' needs for change Accurate control of consumption trends

Amid the ongoing volatility in the macro environment, consumers have shown a clear shift toward prioritizing value and making more rational purchasing decisions. Innovative experiences emerging from new scenarios and business models have become a key force driving the release of consumption potential. For the hotel sector, the overall market has shown a moderate recovery since the third quarter. While travel and leisure demand continues to be robust, the industry is also characterized by rapidly shifting hotspots and uneven recovery across regions. In the retail market, consumption is increasingly centered around experiential offerings and quality of life upgrades. Evolving consumer habits coupled with technological advancements are jointly fueling developments across various segments. As a leading lifestyle group, Atour keenly observes the evolution of user needs and captures consumption trends with position. Through continuous innovation and enhanced experience in both our hotel and retail businesses, We consistently respond to and lead contemporary consumers' pursuit of quality living. 下面我将展开介绍2025年第三季度各项业务的具体情况。 Now I would like to provide more details on our performance for the third quarter of 2025.

首先是住宿业务,请大家翻到我们的PPT第四页。 三季度集团大盘热化为371.3元。 Let's begin with our hotel business.

Please turn to slide four of our third quarter 25 results presentation. In the third quarter, our rev power was RMB 371.3. representing 97.8% of its level in the same period of 2024. Specifically, OCC nearly recovered to the prior year level at 99.9% of the same period in 2024, and ADR reached 98.1% of its level in the same period of 2024.

请大家翻到PPT的第五页。 三季度,在营超过18个月的成熟酒店Road Park, Please turn to slide five.

In the third quarter, Thrift Bar for our mature hotels in operation for more than 18 months was 95% of the level in the same period of 2024, while OCC and ADR stood at 98.5% and 96.6% of their levels in the same period of 2024 respectively.

请大家翻到第六页。 在品牌势能与产品力的共同驱动下, 集团酒店网络稳步拓展,优质项目相继落地。 三季度,新开业酒店152家,创历史新高。 截至三季度末,集团在营酒店数量已达1948家, 同比增长27.1%。 Please turn to slide six.

Driven by our brand power and product excellence, Atour's hotel network steadily expanded with the successful launch of various high-quality projects. In the third quarter, we opened 152 new hotels, a record high for a single quarter. By the end of the third quarter, we had a total of 1,948 hotels in operation, representing a 27.1% year-over-year increase. We have full confidence in achieving our strategic target of the 2,000 premier hotels by year-end, laying a solid foundation for the next phase of our journey.

截止三季度末,管道内项目数量为754家,保持稳健水平 As of the end of the third quarter, our pipeline of hotels under development remained steady at 754.

Amid our rapid expansion, we remain steadfast in our quality first principle. By applying rigorous project selection criteria and strict quality standards, we are driving healthy and sustainable high-quality growth. 下面我将介绍一下集团住宿品牌的最新进展。 Next, I would like to share the latest developments for our hotel brands.

请大家翻到第七页。 中高端的产品矩阵中,亚佐3.6作为三系产品的最新标杆制作,目前已开业19家酒店。 Please turn to slide 7.

Within our upper mid-scale product portfolio, Attour 3.6 represents a new benchmark for Attour Series 3 hotels. To date, we have opened 19 Attour 3.6 hotels, which continue to gain market recognition and acclaim. Through meticulous attention to detail and optimize the scenario design, Attour 3.6 seamlessly integrates functional amenities, premium service, and a humane ambience. It effectively addresses the core needs of guests for efficiency and comfort, offering a new, more refined choice for travel experiences.

请大家翻到第八页。 亚洲4系产品立足于对消费者更长远需求的思考之上, 积极的市场反响也印证了准确的产品定位。 三季度,亚洲4.0在营超过三个月的酒店, RORPA突破500元。 Please turn to slide 8.

Grounded in a forward-looking understanding of consumers' long-term needs, Attour Series 4 has received a strong market recognition, reaffirming its precise product positioning. In the third quarter, the rev power of Ator 4.0 hotels in operation for more than three months surpassed RMB 500. While delivering both functional utility and emotional value, Ator 4.0 hotels place greater emphasis on fostering a deep resonance with guests, creating a healing experience that promotes holistic well-being.

中高端市场是亚洲长期扎根的核心赛道。 The upper mid-scale segment has long been our core focus and a strategic foundation.

By leveraging the synergistic deployment of Attour Series 3 and Series 4, We effectively serve the diverse needs of different customer groups. As Ator products continue to penetrate core business districts across cities, we will further solidify our competitive modes and a leading position in the upper mid-scale market.

请大家问到第九页, 萨河酒店是我们在高端生活方式领域的重要突破。 三季度,两家赛营酒店经营表现十分强劲, 让人怕超过900元。 On November 18, the third Sa He Hotel opened its business in Guangzhou and received positive market feedback. With a different design style and excellent accommodation experience, Sa He Hotel continues to attract a large number of customers and show a wide range of development space.

Please turn to slide 9. Sa He Hotel represents a significant breakthrough for us in the upper-scale lifestyle segment. In the third quarter, the two operating hotels demonstrated robust performance, with Revpar exceeding RMB 900. On November 18, our third Sa He Hotel began its soft opening in Guangzhou and has already received positive market feedback. With its unique design style and exceptional accommodation experience, Sa He Hotel continues to attract a diverse clientele, demonstrating its substantial growth potential.

Fahe Hotel's mission is to create a combination of Eastern cultural infrastructure and modern aesthetics for high-end users. Currently, we are working with professional institutions to integrate the concept of scientific health into the number of points of entry for users, from customized health meals to carefully matched guest items, to build a comprehensive deep experience for guests, to show our thinking and practice of the concept of Chinese experience in the high-end field.

在布局策略上,我们仍将坚持精准全职,力求每一家大和酒店都能成为在地高端生活方式的体验典范。 大和Hotel is dedicated to creating rejuvenating journeys for the discerning clientele, masterfully fusing Eastern cultural heritage with modern aesthetics. We are now collaborating with a professional institution to integrate scientific wellness concepts across the guest experience, from customized healthy diet to carefully curated in-room amenities, building a comprehensive deep experience for guests and showcase our thoughts and practice of the Chinese experience concept in the upscale segment. For our expansion strategy, We will continue to adhere to precise site selection, striving to make every Sa He Hotel a model of local upscale lifestyle.

请大家翻到第十页。 中端品牌方面,我们通过持续打磨产品,提升运营效率,强化品牌建设等方式,不断巩固自身的差异化优势。 三季度,轻居延续了亮眼的经营表现。 Please turn to slide 10. For our mid-scale brand,

We consolidated our differentiated advantages by continuously refining our products, improving operational efficiency, and enhancing brand's beauty. Attour Lite continued its strong performance in the third quarter, with the rev par of Attour Lite Series 3 hotels in operation surpassing year-ago levels. As the latest upgraded version, Attour Lite 3.3 has seen its first batch of hotels successively open. Attua Lite 3.3 features a more mature model that incorporates targeted optimizations in practicality and spatial aesthetics, earning strong acclaim from both users and franchisees.

At this stage, Attua Lite 3.3 will continue to focus on high-end city layout, stable and robust, through the creation of high-quality standard projects, strengthening brand recognition, At the current stage, Ator Lite will continue to concentrate its presence in higher tier cities.

advancing steadily while building brand recognition through benchmark projects. Simultaneously, we are systematically enhancing our operational framework by refining service touchpoints, optimizing operational standards, and strengthening talent development. These efforts ensure premium experiences while consistently driving operational efficiency, solidifying our competitive edge in the mid-scale segment, and laying a solid foundation for long-term development of Attour Light brand.

Moving now to our retail business, please turn to slide 11.

In the last two years, the retail business has maintained a strong growth.

The Asian retail GMV has reached $9.94 billion, which is a 75.5% growth rate. Among them, the current channel ratio continues to exceed 90%. At the end of the Double 11 shopping festival, During the third quarter, our retail business sustained strong growth, with GMV reaching RMB 994 million.

representing a 75.5% year-over-year increase. Online channels continue to contribute over 90% of total GMB. During the recently concluded Double 11 Shopping Festival, a tour planet has not only delivered its excellent sales momentum, but has also further strengthened the Deep Sleep brand image in the minds of users. Meanwhile, across both the third quarter and the Double 11 period, Atura Planet also ranked among the top brands in the betting category on major third-party platforms.

Please turn to page 12. The bright performance of the space planet marks our ability to provide systematic solutions in the field of sleep, and continues to be verified by the market. In terms of core products, we continue to break through our core competitiveness by continuing to break through our core competitiveness by continuing to break through our core competitiveness by continuing to break through our core competitiveness. Please turn to slide 12.

The outstanding performance of Attura Planet keeps validating our ability to provide comprehensive sleep solutions in the market. In our core categories, we pursue breakthrough innovation through initiatives like collaborative R&D with academic institutions, consolidating our competitive advantages while gradually expanding market reach. Meanwhile, based on in-depth insights into user needs, We are also developing new categories such as deep sleep fitted sheet and deep sleep launch wear, refining and enriching the sleep ecosystem of AtorPlanet. Next, I will now walk you through the latest updates on AtorPlanet's core categories.

请大家翻到第十三页。 三季度,亚洲星球在主流第三方平台稳居枕头品类销售榜首。 The excellent support and comfort of the new product is also widely appreciated by users. After the launch, it showed a very good sales trend. Only 25 days of sales and a breakthrough of 1 yuan. It took 19 days for the previous generation of products. As of now, since the launch of the deep sleep pillow series, the total sales have exceeded 8 million. In addition, around the pillow taste, we have also launched Please turn to slide 13.

In the third quarter, Attura Planet continued to lead the market in the pillow category across major third-party platforms. DeepSleep Memory Foam Pillow Pro 3.0 has received glowing reviews for its excellent support and comfort. Since its launch, it has shown strong sales performance, exceeding RMB 100 million GMV in just 25 days, reducing 19 days compared to the previous generation. Up till now, the cumulative sales volume of the DeepSleep Pillow series has exceeded 8 million units since its release. In addition, we've expanded the pillow portfolio with products like Deep Sleep Travel Pillow and Deep Sleep Pillow for Children, gradually building a product portfolio that covers different scenarios and serves various user groups. This expansion demonstrates our execution capabilities in enhancing sleep experiences while reinforcing our category leadership position.

Please turn to the 14th page. In terms of quilt products, the Asian planet continues to repeat the market pattern with the bright performance of the deep-sleep air-conditioned quilt series. Following the change of seasons, we have launched two alternative products in 3D. Deep-sleep air-conditioned quilt Pro 2.0 4G version and winter version. Two new products have upgraded the double-layer air-conditioning system. By rotating the sleep environment, help users get a more stable sleep state. Please turn to slide 14.

Atura Planet is leading the transformation of the comforter category driven by the exceptional performance of our DeepSleep Thermal Regulating Comforter Series. As the seasons change, we launched two upgraded products in the third quarter, DeepSleep Thermal Regulating Comforter Pro 2.0 all season and winter season, both feature an upgraded dual-layer temperature control system that dynamically adjusts the sleep microenvironment for more stable rest. To date, the cumulative sales volume of the DeepSleep Thermal Regulating Comforter Series has exceeded 2 million units since its launch.

Please turn to page 15. Following the launch of the new product, based on the core sensory needs of the user during sleep, We officially issued the Asia Planet Deep Sleep standard, which covers the dynamic compression coefficient of pillow products and the dynamic temperature control coefficient of quilt products. In the future, this standard will be the core standard as a product, ensuring the high quality and consistency of the product. The establishment of this standard will promote our continued improvement of supply chain capabilities, further expand the competitive advantage and technical barriers in the field of sleep. We hope to drive the upgrade of industry standards with this, Please turn to slide 15.

With the launch of new products targeting users' core sensory needs during sleep, we officially released the Attour Planet Deep Sleep Standard, covering the dynamic pressure stabilization factor for the pillow category and the dynamic temperature management factor for the comforter category. In the future, This standard will serve as the core criteria for product iteration, ensuring high quality and consistency of products. The establishment of this standard has also driven us to continuously enhance our supply chain capabilities, further strengthening our competitive advantages and the technical barriers in the sleep field. Our goal with this is to elevate industry standards and make natural deep sleep and experience that every user can truly perceive and achieve.

In the current market environment, imitators and followers are constantly limited. Asia's planet has always insisted on its original intention, focusing on listening to the real needs of users, and deepening product details. Our deep insight and rapid response to the needs of users has also become a solid supporting core for long-term development of the brand. At the same time, we will continue to support In the current market where imitators and followers are emerging, Ator Planet remains committed to its founding aspiration

dedicated to listen to users' genuine needs and refining product details. Our deep understanding and agile responsiveness to user needs have become a solid moat supporting long-term brand development. In the meantime, we'll keep strengthening our foundational capabilities. We'll pursue excellence in product development, supply chain management, and quality control to solidify a strong foundation for healthy growth. Looking to the future, we are ready to work with our industry partners to move forward together and guide China's sleep industry to a new stage of higher quality development.

Please turn to slide 16.

Last but not least, I would like to share our progress across our membership business and channel development.

With the continuous improvement of brand influence and the continuous expansion of the member power system, our membership size has maintained a strong growth. By the end of the third quarter, the number of registered members has exceeded 108 million, which is more than 30% of the total growth. In terms of sales channels, our core free channel maintains stability. In the third quarter, the sales and industry ratio of CS channels is 62.4%, of which the sales and industry ratio of corporate agreements is 20%.

With our growing brand influence and continuous enrichment of our membership benefit system, our membership base maintained a robust growth. By the end of the third quarter, the number of registered individual members exceeded 108 million, representing a year-over-year growth of over 30%. In terms of channel development, our core CRS channel remained stable. accounting for 62.4% of the total room nights sold in the third quarter. The contribution of room nights sold to corporate members was 20% during the quarter.

Please turn to the 17th page. A-Card member system's iteration and upgrade is always based on the deep understanding of the real needs of members in Asia. We create multi-storey, all-line service experience through the integration of online and offline resources. Please turn to slide 17.

The evolution of the ACARD system and the upgrade of membership benefits stem from our deep understanding of members' January needs. By integrating online and offline resources, we've created multi-scenario, end-to-end service experiences that continuously explore innovative possibilities in quality living. Looking ahead, we will sharpen ACARD's brand positioning. With a focus on a complete customer lifecycle, we'll analyze consumption patterns across accommodation and retail scenarios among different user groups, expanding lifestyle experiences, and introducing compelling benefits and activities to deepen emotional connection with our members.

请大家翻到第十八页。 展望未来,我们将围绕回归用户、回归伙伴、回归基本功三个方面持续神话。 For the user, we always put the first concept of the user in all the details of hotel and retail business. Improving user experience strengthens our emotional connection with the user. For internal partners, we pay attention to their professional growth and experience. By diversifying the mechanism, we subvert the progress and development path of the traditional industry. Promote the continuous evolution of the organization. For the basic functions, we use digitalization to build and fine-tune the management. Please turn to slide 18.

Moving forward, we will continue to deepen our focus across three key areas of user, employee, and fundamental capabilities. As for our users, we will always adhere to the user first philosophy. embedding it across all touchpoints of our hotel and retail business. We'll continuously enhance users' experiences and deepen our emotional connection with them. For our employees, we pay close attention to their growth trajectories and accumulated experience. Through diversified mechanisms, we redefine traditional industry promotion and the development path, driving continuous organizational evolution. To strengthen our foundational capabilities, we have been leveraging digital solutions alongside granular operations management, thus driving a comprehensive upgrade in both efficiency and the customer experience, providing a solid foundation of the group's long-term sustainable high-quality growth. I will now turn the call over to our co-CFO, Mr. Wu Jianfeng. who will discuss our financial results.

Thank you, Haijun. I would like to present the company's financial performance for the third quarter of 2025. Please turn to slide 20 of the result presentation. Our net revenues for the third quarter of 2025 grew by 38.4% year over year and 6.5% quarter over quarter to RMB 2,628 million. Revenues from our monetized hotels for the third quarter of 2025 were IMD $1,560 million, up 32.3% year-over-year, and 20.1% quarter-over-quarter. The year-over-year increase was primarily fueled by the ongoing expansion of our hotel network. The total number of our memberized hotels increased from 1,504 as of September 13, to 1,924 as of September 30, 2025. The quarter-over-quarter increase was mainly due to the growth in Red Park and our supply chain business. Revenues contributed by our leased hotels for the third quarter of 2025 were RMB 164 million, representing a decrease of 13.4% year-over-year and an increase of 9.7% quarter-over-quarter. The year-over-year decline was primarily driven by a decrease in the number of these hotels as a result of our product mix optimization. The quarter-over-quarter increase was mainly due to an increase in rep power. Revenues from our retail business for the third quarter of 2025 were RMB 846 million, reflecting a 76.4% year-over-year increase, but a 12.3% quarter-over-quarter decline. The year-over-year growth was driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings. The quarter-over-quarter decline was primarily due to the seasonality of our retail business. Now let's move to cost and expenses. Please turn to slide 21. Hotel opening costs for the third quarter of 2025 increased by 23.5% year-over-year and 21.1% quarter over quarter to RMB 1,082 million. These increases were primarily due to higher variable cost such as supply chain cost and hotel manager cost associated with ongoing hotel network expansion. Growth margin of all hotel businesses expanded to 37.3% in the third quarter of 2025 from 36.0% during the same period of 2024. primarily due to a lower proportion of leased hotels as the result of our product mix optimization. Retail cost for the third quarter of 2025 went up by 36.3% year over year and down by 11.2% quarter over quarter to RMB 400 million. The year over year increase was associated with the rapid growth of our retail business Growth margin of our retail business remained stable compared to the same period of 2004. Now please turn to slide 22. Setting and marketing expenses for the third quarter of 2025 were RMB 355 million, compared with RMB 218 million for the same period of 2024. Setting and marketing expenses accounted for 13.5% of net revenues for the third quarter of 2025, compared with 11.5% 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 for the third quarter of 2025 were RMB 100 million, and included RMB 10 million in share-based compensation expenses compelled with RMB 82 million for the same period of 2024, which also included RMB 3 million in share-based compensation expenses. Journalist and administrative expenses, excluding share-based compensation expenses, accounted for 3.4% of net revenues for the third quarter of 2025, compelled with 4.2% for the same period of 2024, The decrease was primarily due to improved management efficiency and economics of scale. Technology and development expenses for the third quarter of 2025 were RMB 44 million, compared with RMB 30 million for the same period of 2024. Technology and development expenses accounted for 1.7% of net revenues for the third quarter of 2025, compared with 1.6% for the same period of 2024. Please turn to slide 23. Adjusted net income for the third quarter of 2025 was RMB 488 million, representing a 27.0% increase year over year. Adjusted net profit margin for the third quarter of 2025 was 18.6%. Adjusted EBITDA for the third quarter of 2025 was RMB 685 million, up by 28.7% year over year. Adjust EBITDA margin for the third quarter of 2025 was 26.1%. Now please turn to slide 24. We also maintained a healthy cash position as of September 13, 2025. Our cash and cash equivalent totaled RMB 2,670 million. with net cash of RMB 2,603 million. Please turn to slide 25. In line with our commitment to enhancing shareholder value and our annual dividend policy adopted in August 2024, today we declare our second cash dividend for 2025 totaling approximately US dollar 50 million. Through a comprehensive shareholder return initiative encompassing dividends and share repurchase, we are taking concrete actions to reward shareholders' trust and support, enabling all shareholders to share in the company's growth achievements. Based on slide 26, for full year 2025, Given ongoing network expansion and rapid growth of our retail business, we currently expect total net revenues to increase by 35% compared with full year 2024. That concludes our financial highlights for the third quarter of 2025. Now let's open for Q&A.

Thank you, Benjamin. We will now begin the questions and answer session. To ask a question, please press star 11 and wait for a name to be announced. For the benefit of all participants on today's call, if you raise your questions in Chinese, please immediately repeat your questions in English. Please limit your questions to one at a time. If you wish to have follow-up questions, please rejoin the queue. One moment for the first question. Our first question comes from the line of Dan Xi from Morgan Stanley.

Please go ahead. 谢谢,管理层,晚上好。 我是大摩的分析师,Dan Xi 请答。 Hello, management. Could the management share the REFPA trend since October? And also, if it's possible, can you provide your outlook for Red Power in the fourth quarter and also potentially next year? Thank you.

Okay, thank you, Dan. Let me answer your question. Over the past year, under the background of continuous recovery of the entire supply and demand relationship in the industry, we have also adhered to the idea of high-quality development, and the revenue management strategy of E2E has also shown a relatively strong business resilience. Thank you, Dan.

Let me address your question. Since the beginning of this year, with the continued recovery in industry supply and the demand dynamics, we sticked to a high-quality development and leveraged a refined strategy of revenue management, demonstrating strong operational resilience. Throughout the first three quarters of this year, our RevPAR has shown a trend of progressive improvement on a year-over-year basis.

During the holiday period of the National Day, leisure tourism needs to remain active, but the structural diversification characteristics of the market are relatively obvious. Under the guidance of the average house price, our RevPAR also achieved the same growth during the National Day. During the National Day holiday,

Leisure travel demand remained robust, but the market exhibited some significant structural divergence. Driven by stronger ADR, our RUBPAR achieves year-on-year growth. After the holiday, the market returned to a business-dominated environment. But benefiting from active exhibitions and business travel activities, the demand in core cities demonstrated strong resilience. Therefore, we expect the pressure from the year-on-year decline in REFAR to further ease in the fourth quarter.

In the future, we expect the market to continue to diversify. Challenges and uncertainties still exist. We will continue to deepen the needs of users, practice basic skills, and attract users with high-quality hotel products and diversified accommodation experiences. Looking ahead, the market will continue to show divergence with still some challenges and uncertainties remaining.

We will continue to deeply understand user needs, strengthen our foundational capabilities, attract the users with high-quality hotel products and the differentiated experiences. By forging deeper emotional ties with them, we will secure long-term advantages in a volatile market environment and demonstrate our resilience for development. Thank you. Thank you. Thank you, Dan. Next question, please.

Thank you for the question. Next question comes from Shijie Lin of CICC.

Please go ahead. Hello, Shijie. My question is about So, thank you, management. Could you please share more about the recent new hotel signing trends and whether there are any changes to the full year hotel opening and closure targets? Thank you.

好的,感谢思杰,我来回答这个问题。 In recent years, in the process of large-scale development, Yaduo has been insisting on our strategic power of good electricity. In expansion, we focus on core areas and strictly control the quality. At the same time, we have also launched a number of new hotel products in line with market needs. With the success of many high-quality projects, the company's brand power and differentiated competitiveness have also gained further market share. 我们并不认同单纯由数量驱动的增长策略。 我们坚信只有在扎实的质量基础上推进规模的增长才具备可持续发展的价值。 Thank you, Sijie.

Let me answer your question. In recent years, we found that during our scale expansion, Ator has consistently maintained our strategic focus on premier hotels. concentrating on core locations for expansion, and we strictly controlled quality. At the same time, we have launched several new hotel products that align with market needs. With the successful launch of many high-quality projects, our brand strength and the differentiated competitive advantages have been further solidified. So we do not endorse a growth strategy driven purely by scale. We firmly believe that only by advancing scale growth on the foundation of quality can we achieve sustainable value.

签约上,正如刚才提到的,我们保持严格的筛选机制,聚焦核心城市,核心商圈。 在高品质的基础之上,今年整体签约项目的数量与去年基本持平,保持了稳健的发展节奏。 同时呢,我们也在有序地

对管道内停滞的项目进行清理,推动我们的管道现场的发展。 Regarding signings, as we mentioned earlier, we maintain a strict selection mechanism, focusing on expansion in core business districts of key cities. With high quality being a prerequisite, the total number of new hotel signings this year is generally in line with last year, maintaining a steady development pace. At the same time, we are also clearing stock projects in the pipeline in an orderly fashion to promote the healthy development of our pipeline.

At the same time, we are also clearing stock projects in the pipeline in an orderly fashion to promote the healthy development of our pipeline. We highly appreciate the operating quality and user experience of Zanying Hotel. Also through strengthening standard execution and detailed management Ensure that each hotel can provide consistent high-quality service As a result, we also maintain a certain proportion of active exchange Let our overall hotel network quality level continue to improve 3G degree, we have 28 points in total

In terms of openings and closures, we opened 152 hotels in the third quarter. We have full confidence in achieving the four-year guidance of 500 new openings and reaching our strategic target of 2,000 premier hotels by the end of this year. Meanwhile, for the operating hotels of ours, We place great emphasis on operational quality and user experience. By strengthening standard implementation and refined management, we can ensure that every hotel can deliver consistently high-quality service. To this end, we maintain a certain proactive replacement rate to continuously enhance the quality of our overall hotel network. In the third quarter, we closed 28 hotels and expect approximately 80 closures entirely for this year. Thank you.

Thank you, Sijie. Next question, please.

Thank you for the question. Next question comes from Chen Xin of UBS. Please go ahead.

各位管理层,晚上好。 感谢给我这次提问的机会。 我是UBS的陈欣。 我的问题是关于零售的。 首先第一个是想请管理层分享一下 对于零售业务市场竞争的看法。 This is Chen Xin from UBS, and my question is about retail business. Could the management share your perspective on the competition in the retail business? In addition, given the consistency of performance of the retail business, would you consider any adjustments to your full-year retail revenue guidance? Thanks.

谢谢那位。 好的,感谢诚心。 我先来分享一下零售业务发展规划和竞争的一些情况。 亚洲星球入局睡眠行业以来, 我们的品牌力和产品力逐步获得市场的认可。 As time goes by, more and more imitators and industry participants are coming. Market competition is fierce. However, we always believe that real competition does not come from the same industry, but from the constant change in the needs of users.

Thank you, Chen Xing. Let me start by sharing the development strategy of ours and the competitive landscape of our retail business. Since Ator Planet entered the sleep industry, Our brand and product power have gradually gained market recognition. This has been followed by a rise in imitators and industry participants, leading to an increasingly fierce competition. However, we always believe that the real competition is not about the peers, but is about the ever-evolving user needs.

为此呢,我们并非简单的抄袭行业既有的路径。 and gradually build up a product and supply chain system that has our own characteristics. For example, we have recently officially introduced the depth standard of our Asia-Pacific planet. This standard is different from the traditional parameters of the industry, such as weight, fabric quality, and so on. It is based on the theory of scientific and human body natural sleep, focusing on the two core physical and mental indicators in the sleep process of the user. To address this, we did not simply follow the existing industry path.

Instead, we progressively built our products and supply chain system with our distinctive characteristics. For example, we officially launched the Attour Planet Deep Sleep Standard recently. This standard differs from traditional industry metrics like fabric weights or thread counts, but it is based on sensory science and the natural rhythms of human sleep. focusing on two core sensory indicators of sleeping users, the fluctuation of pressure and the change of temperature. This standard also places higher demands on our product development and production. We aim to continuously strengthen our product barriers through this forward-looking standard while collaborating with the upstream supplier partners to jointly lead the industry progresses.

As a new entrepreneur in the industry, we always use a more long-term mindset to set up. At the same time as rapid development, we also continue to carry out basic construction and methods. I think that our original intention in the retail business and the housing business is the same. That is, the quality will always be as good as the size. In the direction of future development, the Asian planet will continue to upgrade its productivity. As a relatively new player in the industry, we always plan our layout with a longer-term mindset.

While developing quite rapidly, we have been constantly building and consolidating our foundational capabilities. I believe our underlying philosophy is consistent between the retail and hotel businesses. which is to always prioritize quality over scale. Moving forward, a 12-planet will continue to strengthen our product power, remain user-centric, focus on the systematic development of our long-term capabilities, and practice a tourist group's long-term development path.

我来回答一下关于零售收入的问题。 双十一期间的话,我们亚洲星球的整体表现也还是非常出色的。 Well, let me address your question about our retail revenue.

During the 2011 period, Attour Planet delivered outstanding performance and continuously strengthened our brand presence in the minds of users. Based upon our strong performance in Q3 and 2011, we're now raising our full-year retail revenue growth outlook to at least 65% year-on-year, and accordingly adjust the group's full-year revenue guidance to a growth of 35% year-on-year. Thank you. Thank you.

Thank you. Thank you. Next question, please.

Certainly. Next question comes from Ronald Leung of Bank of America. Please go ahead.

Hello, everyone. I am Ronald Leung of Meiyin. Thank you for giving me the opportunity to ask a question. My question is about dividends. We saw that the company announced its second dividend plan this year. Let me translate my question into English. We noticed a tour has announced a second dividend distribution plan this year. Could management provide an update on the planning and progress regarding shareholder returns?

Thank you. Okay, thank you, Ronald. As for the dividend, As of today's announcement, the second share of our dividend this year is about RMB50 million, which accounts for 29% of the previous year's net profit. Therefore, the total share of dividend accumulated this year is 1.08 billion dollars, which accounts for 62% of the previous year's net profit. In fact, this figure exceeds the promise that the dividend will not be lower than the previous year's net profit of 50%. 那另外在回购方面的话,我们是在9月份正式启动了我们回购的操作,并将依据我们既定的三年回购的方案持续去推进执行。 Thank you, Ronald.

Regarding dividends, as we announced it today, our second dividend distribution this year amounts to approximately $50 million, representing about 29% of last year's net income. Consequently, the cumulative dividend total for this year reaches about $108 million, accounting for approximately 62% of the prior fiscal year's net income, exceeding our commitment of no less than 50% of that. Additionally, we formally commenced our share repurchase program in September and will continue to execute them in accordance with our established three-year plan.

In the future, we will continue to implement a plan to reduce the return on shares. The plan is to use the gap in profit as a standard in the previous year to achieve a 100% payment ratio. The specific implementation rhythm will combine the development of the company and the planning of the funds to make a dynamic arrangement. We hope to use real action to create long-term value for shareholders, to repay our shareholders' support and trust, and let everyone share the company's sales results.

Looking ahead, we will continue to implement our comprehensive shareholder return program, combining dividends and repurchases, targeting a payout ratio of 100% based upon the previous fiscal year's GAAP net income, with the specific implementation pace to be dynamically arranged in line with our business development and capital planning. Through these tangible actions, we are committed to creating long-term value and sharing the success of the company with our shareholders in appreciation of your ongoing support and trust.

Thank you, Ronald. Next question, please.

One moment for the next question. The next question comes from Lidia Ling of Citi. Please go ahead.

I'm Lydia from Citi. We noticed the strong operation performance to alight in the corridor. So could you share your plan for the actual light in the next step, and any plan for accelerating the store expansion. Thank you.

Okay, thank you, Lilia. Indeed, our three-season, QingJu's three-season, Zainin Hotel's wrap-up has exceeded the previous year's level. The performance is still very good. In fact, over the years, QingJu has achieved good results in terms of the construction, operating efficiency, and user experience of the entire brand. The business performance and scale growth are also in line with the company's expectations.

Thank you, Lydia. Well, yes, indeed. In the third quarter, the rest part of operating Attour Lite Series 3 hotels surpassed the level from the same period last year, performing pretty decently. And in fact, since the beginning of this year, Attour Lite has achieved notable results in brand building, operational efficiency, user experience, with both operational performance and scale growth meeting our expectations.

We always think that the core of a brand is the product. Then the products of Qingju Hotel accurately fit the needs and aesthetics of young users at the moment. We have also recently launched a version of our Qingju 3.3. With the continuous optimization of the investment model, it achieves a better balance between service experience and operating efficiency. Through the landing of the first batch of Qingju 3.3 projects, we are also continuing to collect feedback from all parties to continue to improve the details of our products. At that time, we had the competitive advantage of differentiating in the mid-end market.

We always believe that the core of a brand life and its products, the Attour Light Hotel product accurately aligns with the needs and aesthetic preferences of today's young users. The newly launched Attour Light 3.3 with its constantly optimized investment model achieved a better balance between service experience and operational efficiency. Through the implementation of the first batch of our AttourLight 3.3 project, we are constantly gathering feedback from various sites, refining product details and strengthening our differentiated competitive advantage in the mid-scale market. We expect the scale of AttourLight Series 3 hotels in operation will be reaching 170 to 180 by the end of this year.

We are also determined to look forward to the long-term development of QingJu. At the beginning of the brand development stage, we will focus more on the ability of the operating infrastructure and system. Next, we will also build a system-specific operating system for QingJu, from brand concept to service execution, to fully strengthen its differentiated positioning. We are firmly optimistic about the long-term development of Tourlite.

At this current early stage of the brand's development, we are particularly focused on solidifying the operational foundation and our systematic capabilities. As for our next step, we will systematically build a dedicated operational system for Attour Lite, strengthening its differentiated positioning in all aspects, including from brand concept to service delivery. This will not only distinguish it from our main Attour Hotel brand, but also highlight the unique value in the mid-scale hotel market. On this basis, we will steadily advance towards a longer-term development goal of hitting 1,000 hotels milestone for a tour-like brand. Thank you.

Thank you, Lidia. Next question, please.

That concludes today's questions and answer session. I would like to turn the conference back to Mr. Luke for any additional comments or closing comments.

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.

This concludes today's conference call. Thank you for participating.